Www.QinetiQ.com © Copyright QinetiQ limited 2007 Open innovation – A paradigm shift in defence...

www.QinetiQ.com© Copyright QinetiQ limited 2007

Open innovation –A paradigm shift in defence project management?

Ryan Hood

QinetiQ Technology Leader

03 October 2007

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2© Copyright QinetiQ limited 2007

Overview

01 Project management and system development

02 Open innovation

03 Cisco and Lucent (and Bell Labs)

04 Analogy with Defence?

05 Innovation and projects

06 Agile project management, agile development

07 Boehm’s spiral model

08 DSDM

09 Summary

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01 Project management and system development

significant shared execution of life cycle processes between disciplines

Enterprise Processes

Project Processes

SystemDevelopment

Processes

Technology Processes

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02 Open innovation

In the commercial world there is a significant shift in how businesses deliver and evolve.

‘Open’ business models are triumphing over closed ones.

• Markets needs are changing faster than ever before

• Most innovation goes on external to the firm

• Rapid ‘clock speed’ of innovation

• Cost of technology development is increasing

• And, innovation is hard to control.

In such circumstances organisations are becoming more agile, they are including the user in the development process and are adopting external innovations.

Examples include: Proctor & Gamble, IBM and Cisco

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03 Cisco and Lucent Technologies (and Bell Labs)

Using an agile and open approach Cisco surpassed perhaps the finest industrial R&D establishment in the World, without doing much fundamental research of its own.

In the fast moving network and communications market

Cisco competed with Lucent Technologies (and Bells Labs)

• By using modular design

• Investing or partnering with external companies and start-ups

• Working closely with users

• Going early to market, gaining feedback

• And rapidly iterating to fit users needs.

Cisco market value $200Bn

Lucent Technologies $20Bn (bought by Alcatel)

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04 Analogy with Defence?

The ‘business models’ of terrorists and insurgents are very much an agile and open approach. They do not have thick internal R&D establishments, and are willing to take knowledge and technologies from anywhere to achieve their goals.

Insurgents continue to compete using

• Cells of ‘users’ and ‘technicians’

• Lessons from previous conflicts e.g. Israel

• Networks, state information, media, internet

• Weapons and commercial technology

• Rapid development through application.

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05 The link with projects

Business models, projects, risk and innovation are intertwined. Projects deliver solutions, generally innovative solutions.

Thus, successful innovation depends on the project management approach.

Much as we did during the Cold War we need to:

• Get inside the mind of the opponent.

• Focus more on the adversary rather than “our system”.

• Match and better our project management approach.

But the adversaries approach is

• Agile

• And open to external innovation

We need agile approaches.

Motivation

A requirement, timeline and reward

Ability

Resources, processes, knowledge and skills

hot-bed for

innovation

Source: The Innovators Dilemma

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06 Agile project management, agile development

Agile development has a number of specific techniques.

Examples are:

• Boehm’s spiral model

• DSDM

They value user-innovator interaction and prototyping over heavy and formal documentation.

Other key characteristics are early delivery, iteration and adaptable design.

Traditional

Agile

Light Heavy

People and prototypefocus

Processfocus

Source: adapted from ‘Standards, Agility and Engineering’, IEEE

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Spiral development is a ‘risk-driven’ approach. At a basic level it is an OODA* loop. Meets user needs and reduces technical risk through an iterative approach:• Inclusion of user in development process

• Identify risks

• Develop prototypes to reduce technical risks

• Modular design to facilitate change

• Integrate external innovations.

Requires:

• Dedicated user involvement in project team, proving facilities and CONDO**

• Rapid integration of external technologies.

Source: Cross-talk.

*OODA = Observe Orientate Do Analyse **CONDO = Contractors on Deployed Operations

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Spiral development is a ‘risk-driven’ approach. At a basic level it is an OODA* loop. Meets user needs and reduces technical risk through an iterative approach:• Inclusion of user in development process

• Identify risks

• Develop prototypes to reduce technical risks

• Modular design to facilitate change

• Integrate external innovations.

Requires:

• Dedicated user involvement in project team, proving facilities and CONDO**

• Rapid integration of external technologies.

Source: Cross-talk.

*OODA = Observe Orientate Do Analyse

Observe Orientate

DoAnalyse

**CONDO = Contractors on Deployed Operations

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07 Spiral model – an example

[1] Requirements, development plan, other plans

[2] Identify and prioritise risks P,T,C (technical, financial etc.)

[3] Develop architecture, develop prototype, other risk reduction, “spin in”

[4] Test with select group of users, “spin-out”

[5] Incorporate feedback, review requirements and plans

[6] Identify and prioritise risks

[7] Develop prototype, other risk reduction, “spin in”

[8] Test with users, “spin out”

…

Source: Cross-talk.

OODA = Observe Orientate Do Analyse CONDO = Contractors on Deployed Operations

Observe Orientate

Analyse Do

1 2

34

5 6

78

9 10

1112

13

“Spin out” “Spin in”

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08 Dynamic Systems Development Methodology (DSDM)

Source: “DSDM in a nutshell”, Keith Richards

Like the spiral model, DSDM focuses on reducing risk through strong use-innovator interaction, early deliver and rapid iteration. Real functionality is valued over heavy and formal documentation.

Key principles are:

• Time-boxing and Pareto 80/20 rule

• MoSCoW rules

• Modular adaptable design

Just a time-boxed OODA loop?

• Identify requirements and risk

• Prototype

• Test

• Feedback and iterate

Key principles:

• Time-boxing

• MoSCoW rules

• Pareto 80/20 rule

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08 DSDM – key principles

Prioritised requirements MoSCoW rules:

• Must have

• Should have

• Could have

• Won’t have (but Would like in future)

As well as user-innovator interaction and prototyping, key principles are time-boxing, the 80-20 rule and MoSCoW rule.

Timeboxing:

• Decompose into bit-size chunks, easier to manage

• Fixed deadline, fixed cost

• Minimum box includes ‘Must have’ requirements

• Each box must deliver usable functionality

80/20 rule:

• 80% functionality delivered in 20% of the time

• (Likewise, the other 20% of functionality is delivered in 80% of the time)

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08 DSDM – an example

Joint Data Network Backbone project, a TADL IPT initiative and DACP A3 pilot.

Approach

• Users embedded in the development team

• Focus is delivering functionality rather than documentation

• Time and cost ‘boxed’ – hard deadline

• Prioritised requirement, MoSCoW rules

• Competitive, parallel time-boxes

• Modular design

• Test with user in real operational scenario

• Feedback

• Iterate …

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09 Summary

In the commercial world and in defence, agile and ‘open’ models are triumphing over closed ones.

To manage risk in changing scenarios, projects must :

• Value user-innovator interaction and prototyping over heavy and formal documentation

• Utilise modular design and integrate external technologies

• Deliver early prototypes, feedback and iterate.

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