GLOBAL

INNOVATION
MANAGEMENT

RECAP - THE INNOVATION

MANAGEMENT PROCESS
Evolving

models of the innovation process

6th generation based on knowledge intangible assets

Managing

innovation thru Organizational

Routines or Capabilities
Specify the different phases of the innovation
process

Search -> Select -> Implement

Scan -> Focus -> Resource -> Implement
Learning underpins both processes

AGENDA

STRUCTURING THE NEW PRODUCT DEVELOPMENT

PROCESSES
EVALUATION OF THE NEW PRODUCT DEVELOPMENT AND
R&D PROJECTS
HOW TO SELECT THE PORTFOLIO
OF NEW PRODUCT DEVELOPMENT PROJECTS
BUILDING THE INNOVATIVE ORGANIZATION

Learning organizations

STRUCTURING THE NEW PRODUCT

DEVELOPMENT PROCESSES

STAGE-GATE PROCESS
R. Cooper, 1960s
phases with inputs and outputs specified
beforehand
gates, in which the gatekeepers decide about the
continuation of the process
Activities standardized and the indicators of the
process performance significantly improved.

 2009 John Wiley & Sons Ltd.

www.wileyeurope.com/college/tidd

2-ND GENERATION SG PROCESS

EVALUATION CRITERIA

Operational, realistic, differentiating

Must meet: to kill not well proceeding
projects as soon as possible

Should meet: prioritization, support of

portfolio management

Strategic buckets: resources allocated to

various strategic goals

INTERDISCIPLINARY VIEW

FUZZY FRONT END (FFE, FEI)

quality of pre-development phases

significantly influence the product success
early phases to a large extent influence,
which projects will be realized, why, what
will be final costs, time, and in the end
the final success in the market
highly dynamic, not strictly documented,
creativity competes with systemization.

NEW CONCEPT DEVELOPMENT MODEL

in the early phases it is not suitable to use the

same approaches as in the later, more
structured process phases

DIFFERENCE BETWEEN FFE AND NPD

Fuzzy Front End (FFE)

New Product Development (NPD)

Nature of Work

Experimental, often chaotic.

Eureka moments. Can schedule
workbut not invention.

Disciplined and goal-oriented with a project

plan.

Commercializatio
n Date

Unpredictable or uncertain.

High degree of certainty.

Funding

Variable

Budgeted.

Revenue
Expectations

Often uncertain, with a great deal of

speculation.

Predictable, with increasing certainty,

analysis, and documentation as the
product release date gets closer.

Activity

minimize risk and optimize potential

Multifunction product and/or process

development team

Measures of
Progress

Strengthened concepts.

Milestone achievement.

TRADITIONAL AND TECHNOLOGY

STAGE-GATE PROCESSES

HOW TO SELECT THE PORTFOLIO

OF NEW PRODUCT DEVELOPMENT
PROJECTS

Portfolio management

Goal 1: Maximizing the portfolio value

Goal 2: Balance
Goal 3: Strategic alignment

PORTFOLIO MANAGEMENT
Resources are always limited, it is neither possible nor effective to
invest in every idea without due consideration.

It is important to select from many possibilities those with the highest

potential; todays innovation projects decide about the future profile of
the company, its customers and market share.

Goal: to create such portfolio of products that is rooted in the company

strategy and optimizes the company performance.

Portfolio management: dynamic decision-making process of evaluation,

selection and prioritization of new projects; active project can be
fostered, put on hold or even killed; their priorities and allocation of
resources can change.

The process is characterised by uncertainty, changing information,

dynamics of opportunities and threats, links between projects. The whole
process must be based on the long-term company strategy and must
support it

GLOBAL R&D NETWORKS: NOVARTIS