Presentation on theme: "FROM INSPIRATION TO PERSPIRATION Steve Rogers, Sopheon."— Presentation transcript:
FROM INSPIRATION TO PERSPIRATION Steve Rogers, Sopheon
Post-War NPD Du Pont pamphlet ‘cellophane’
Aiming for successful new products Competition Markets Technology Speed, efficiency, and quality Pace of change Global competition
A blend of approaches for effective NPD Product –led innovation – New Technologies – Accidental inventions Market-led innovation – Market research and demand – Regulatory change – Competitive challenges Asset-led innovation – Brand strength – Domain expertise – Factory capacity
How fuzzy is Innovation? Gate 0Gate 1Gate 2Gate 4Gate 5 DevelopmentScoping Testing & Validation Gate 3 Build Business Case DiscoveryLaunch Concept Development Concept-to-Launch Idea Development
How Fuzzy is Innovation?
What is the ‘Front End’ Idea Bank Market Driven Technology Driven Applied Research White Space Finding Fundamental Research Focus Groups VOC or Insights Idea Campaigns Strategic Business and Product Planning New Product DevelopmentTechnology Development Concept Knowledge Discovery IP Disclosure Concept Development Procurement LicensingAdditional research
EMPIRICAL NPD Measuring Innovation
Empirical NPD: Measuring Innovation
Identifying critical success factors Research by academics and consultancies to find out differences between ‘winners’ and ‘losers’ – Booz-Allen – Cooper & Edgett – Clark & Wheelwright – McGrath
Success stories What has gone on...What some have achieved... Over 50% of executives are dissatisfied with the return on innovation spending Boston Consulting Group; Innovation 2005 Parker Hannifin: Increase in organic growth of approximately $500M Corning: 15% increase in revenue from key product line Over 36% of top managers (Senior VP and above) say their companies govern innovation in an ad hoc manner. September 2007 McKinsey Quarterly Survey of Business Executives Aberdeen Study: 75% of best-in-class tool’s clients see adoption rates of 75-90%, far ahead of industry averages Percent R&D spent on new products ranges from 3% (worst performers) to 50% (top performers) David Drickmamer, Industry Week, Jan 2004 Glatfelter: Saw 10-15% more ideas evaluated 500% increase in highly innovative new products >70% of projects take longer than expected Elite Consulting Top performers time to market less than ¼ of worst performers David Drickmamer, Industry Week, Jan 2004 Fortune 50 Bank: Reduced time-to-market by 10% and reduced standard deviation of target launch dates by 50%
KPI Examples Key Performance IndicatorsBottom 25%MedianTop 25% Percentage of sales from products launched the previous year 10%15%25% Time to market 258 days150 days60 days Products launched on budget 50%75%90% Products launched on time 30%60%86% Percent R&D spent on new products 3%25%50%
4 Measures Better value for each new product, improvement in product mix: New to the World : Line-extension Better success rate for the new products launched – more achieve the predicted revenue/margin Greater throughput of products – more launches with proportionally less resource Shorter time to market for each new product - each extra week available for sale = more revenue
MOVING FORWARD Taming the tiger, turning creativity into a process at the fuzzy front end
Bringing Structure Cooper & Edgett’s work on Stage-Gate™ gave substance to the Development Process Through research of successful products, they defined – factors that indicate product success, – decision points to assess those factors – deliverables that measure those factors – and a process to hang it together
Bringing Process into the Front End Idea Bank Market Driven Technology Driven Applied Research White Space Finding Fundamental Research Focus Groups VOC or Insights Idea Campaigns Strategic Business and Product Planning Concept Knowledge Discovery Concept Development New Product Development Procurement LicensingAdditional research Technology Development IP Disclosure
Idea Campaign Process
Idea Development Process
Process to Develop Ideas
Completing the Campaign
Connecting Processes Here’s an idea from this campaign that has been taken through to ‘Concept Development’ Trace the idea in to concept development
FRONT-END PORTFOLIO MANAGEMENT Corporate criteria to find great ideas?
Assess, Monitor & Review
MANAGING FUZZY CONTENT AT THE FRONT OF NPD The last bastion of fuzzy?
Success factors at the front end Process Process – Effective assessment and screening – connectivity – doesn’t drop into a black hole Portfolio Portfolio, measurement and continuous improvement Culture of innovation Culture of innovation, engagement of people, blend of disciplines (process adoption) organisational knowledge The capture and application of organisational knowledge – Even this isn’t as ‘fuzzy’ as we tend to think Structure in unstructured content Tools for the job
Organisational Knowledge Know what you know – Have we done this before – Example: State funded research agency Proportion of research being repeated? – Example: Chemicals industry IP Disclosure failures?
Shared drives Monitor for Knowledge Discovery news Internal sources Tech specs Best Practices Document Mgmt Standards Industry Journals Regulations Idea Bank Projects Related Documents Products External sources Patents Knowledge Discovery
Whitespace Deliverable 3: Free Space Matrix – for each Composite Data has been randomised for reasons of confidentiality
Whitespace Deliverable 4: Impact for research portfolio Some current initiatives are not ‘Free to Operate’ Opportunity for new initiatives and partnerships Data has been randomised for reasons of confidentiality