ACTIONABLE TOOLS, PROCESSES, AND METRICS FOR SUCCESSFULLY MANAGING INNOVATION PROJECTS, WITH EXCLUSIVE INSIGHTS FROM WORLD-CLASS ORGANIZATIONS AROUND THE WORLD
The newly revised Second Edition of Innovation Project Management offers students and practicing professionals the tools, processes, and metrics needed to successfully manage innovation projects, providing value-based innovation project management metrics as well as guidance for how to establish a metrics management program.
The highly qualified author analyzes innovation from all sides; through this approach, Innovation Project Management breaks down traditional project management methods and explains why and how innovation projects should be managed differently.
The Second Edition includes exclusive insights from world-class organizations such as IBM, Hitachi, Repsol, Philips, Deloitte, IdeaScale, KAUST, and more. It includes six all new case studies, featuring a dive into brand management innovation from Lego. Each case study contains questions for discussion, and instructors have access to an Instructor’s Manual via the book’s companion website.
Specific ideas discussed in Innovation Project Management include: - Continuous versus discontinuous innovation, incremental versus radical innovation, understanding innovation differences, and incremental innovation versus new product development - Identifying core competencies using SWOT analysis and nondisclosure agreements, secrecy agreements, and confidentiality agreements - Implications and issues for project managers and innovation personnel, active listening, pitching the innovation, and cognitive biases - Measuring intangible assets, customer/stakeholder impact on value metrics, customer value management programs, and the relationship between project management and value
With its highly detailed and comprehensive coverage of the field, and with case studies from leading companies to show how concepts are applied in real-world situations, Innovation Project Management is a must-have title for practicing project managers, as well as students in project management, innovation, and entrepreneurship programs.
Table of Contents
Preface xv
1 Introduction to Innovation Project Management 1
Introduction 1
Definitions for Innovation 2
The Business Need 4
Innovation Literature 6
Project Management Literature 7
Innovation Benchmarking 8
Value: The Missing Link 10
Innovation Targeting 12
Timeline for Innovation Targeting 13
Innovation in Small Companies 14
Seven Critical Dimensions for Scaling Project Management Innovation 14
Implications and Issues for Project Managers and Innovation Personnel 16
2 Types of Innovation 19
Introduction 19
Continuous Versus Discontinuous Innovation 20
Incremental Versus Radical Innovation 21
Understanding Innovation Differences 22
Incremental Innovation Versus New Product Development 23
Product Development Innovation Categories 23
Closed and Open Innovation 25
Crowdsourcing 27
Co-Creation Innovation 29
Open Innovation in Action: Airbus and Co-creation Partnerships 35
Value (Or Value-Driven) Innovation 37
Agile Innovation 38
Agile Innovation in Action: Deloitte 40
Government Innovation 47
Financial Innovation 50
Healthcare Innovation 51
Brand Innovation 53
Sustainable Innovation 53
Humanitarian/Social Innovation 54
Social Innovation in Action: Hitachi 55
educational Innovation 57
Manufacturing Innovation 58
A Case Study 60
Nontechnical Innovation in Action 60
Other Categories of Innovation 62
Role of the Board of Directors 66
Finding an Innovation Project Sponsor 66
Implications and Issues for Project Managers and Innovation Personnel 67
3 Innovation and Strategic Planning 69
Introduction 69
Role of the Innovation Project Manager in Strategic Planning 70
Role of the Portfolio PMO 70
Business Impact Analysis 71
Innovation Maturity Models 71
Types of Strategies 73
Role of Innovation in Strategic Planning 74
Role of Marketing in Strategic Innovation Planning 75
Product Portfolio Analysis 76
Identifying Core Competencies Using SWOT Analysis 82
Innovation Project Management Competency Models in Action: eli Lilly 84
Marketing’s Involvement with Innovation Project Managers 95
Product Life Cycles 97
Classification of R&D Projects 97
Research Versus Development 98
The Research and Development Ratio 99
Offensive Versus Defensive Innovation 100
Modeling the R&D Planning Function 101
Priority Setting 105
Contract R&D 107
Nondisclosure Agreements, Secrecy Agreements, and Confidentiality Agreements 108
Government Influence 108
Sources for Innovation Technology 109
Sources of Ideas 110
The Project Manager’s Role in Developing Innovation Skills and Ideas in People 112
establishing a Project Selection Criteria 114
Project Selection Issues 115
economic evaluation of Projects 116
Role of the Project Manager in Project Selection 119
Project Selection and Politics 124
Project Readjustments 126
Project Termination 127
Implications and Issues for Project Managers and Innovation Personnel 127
4 Innovation Tools and Processes 129
Introduction 129
New Product Development 130
The Fuzzy Front end 131
Prioritizing Product Features 133
Line of Sight 134
Misalignment Issues 135
Risk Management 137
The Innovation Culture 140
Innovation Functional Units 145
Innovative Cultures and Corporate Leadership 145
Idea Generation 146
Spinoff Innovations 147
Understanding Reward Systems 148
Innovation Leadership in Action: Medtronic 149
IPM Skills Needed 152
Design Thinking 155
Brainstorming 157
Whiteboarding 163
Mind Maps 163
Active Listening 165
Pitching the Innovation 167
Cognitive Biases 167
Prototypes 168
Creativity and Innovation Fears 170
Innovation Governance 170
Corporate Innovation Governance Risks 171
Transformational Governance 174
Balanced Scorecard 175
Strategy Maps 176
Innovation Portfolio Management 177
Innovation Sponsorship 179
The Innovation Team 180
Virtual Versus Co-Located Innovation Teams 181
Artificial Intelligence and IPM 182
The Need for PM 2.0 and PM 3.0 184
Implications and Issues for Project Managers and Innovation Personnel 187
5 From Traditional to Innovation Project Management Thinking 191
Introduction 191
Information Warehouses 193
Innovation Planning Overview 197
Innovation Methodologies 200
Methodology Gates 202
Innovation Assumptions 202
Validating the Objectives 204
Differing Views of the Project 206
Life-Cycle Phases 206
Life-Cycle Costing 210
Work Breakdown Structure 211
Budgeting 212
Scheduling 212
Scope Change Control 213
Technology Readiness Levels 214
Lean Project Management: Kanban 216
Communication 217
enabling Innovation Success in Solution Design and Delivery in Healthcare Business 218
Innovation in Action: Dubai Customs and the Accelerated exploratory Lab 229
Innovation in Action: Merck KGaA, Darmstadt, Germany 234
Innovation in Action: Repsol 237
Staffing Innovation Projects 241
Implications and Issues for Project Managers and Innovation Personnel 243
6 Innovation Management Software 245
Introduction 245
Origin and Benefits of Innovation Software 246
Software Innovation in Action: IdeaScale 248
Software Innovation in Action: Hype Innovation 251
Software and Open Innovation 260
Implications and Issues for Project Managers and Innovation Personnel 261
7 Value-based Innovation Project Management Metrics 263
Introduction 263
Value Over the Years 265
Value and Leadership 266
Combining Benefits and Value 268
Recognizing the Need for Value Metrics 269
The Need for effective Measurement Techniques 271
Measuring Intangible Assets 276
Customer / Stakeholder Impact on Value Metrics 278
Customer Value Management Programs 279
The Relationship between Project Management and Value 282
Creating an Innovation Project Management Baseline 284
Selecting the Right Metrics 286
The Failure of Traditional Metrics and KPIs 288
The Need for Value Metrics 288
Creating Value Metrics 289
Industry examples of Innovation Value Metrics 295
Alignment to Strategic Business Objectives 296
Metrics for Innovation Governance 298
Innovation Metrics in Action: InnovationLabs 299
The Dark Side of Innovation Metrics 309
establishing a Metrics Management Program 310
Implications and Issues for Project Managers and Innovation Personnel 312
8 Business Models 315
Introduction 315
From Project Manager to Designer 317
Business Models and Value 318
Business Model Characteristics 318
Strategic Partnerships 319
Business Intelligence 319
Skills for the Business Model Innovator 320
Business Model enhancements 322
Types of Business Models 324
Business Models and Strategic Alliances 326
Identifying Business Model Threats 327
Business Model Failure 328
Business Models and Lawsuits 328
Implications and Issues for Project Managers and Innovation Personnel 330
9 Disruptive Innovation 333
Introduction 333
early Understanding of Disruption 334
Innovation and the Business Model Disruption 335
Categories of Disruptive Innovations 337
The Dark Side of Disruptive Innovation 338
Using Integrated Product/Project Teams 339
Disruptive Innovation in Action 341
Implications and Issues for Project Managers and Innovation Personnel 342
10 Innovation Roadblocks 345
Introduction 345
The Failure of Success 346
One Size Fits All 346
Insufficient Line of Sight 346
Failing to Search for Ideas 347
Sense of Urgency 347
Working with Prima Donnas 347
Lack of Collaboration 348
Politics 348
Project Workloads 348
Intellectual Property Rights 348
Not Understanding the Relationship between Creativity and Innovation 349
Too Many Assumptions 350
Innovation Funding 350
Cash Flow and Financial Uncertainty 350
Control, Control, and Control 350
Analysis-Paralysis 351
Innovation in Action: Naviair 351
Innovation in Action: Overcoming the Roadblocks 363
11 Defining Innovation Success and Failure 367
Introduction 367
The Business Side of Traditional Project Success 368
Defining Project Success: The early Years 370
Redefining Project Success: Approaching the Twenty-First Century 371
Degrees of Success and Failure 372
Defining Success at the Beginning of the Project 374
The Role of Marketing in Defining Innovation Success 374
The Business Side of Innovation Success 377
Prioritization of the Success Factors 379
Innovation Project Success and Core Competencies 380
Innovation Project Success and Business Models 381
Causes of Innovation Project Failure 381
Identifying the Success and Failure Criteria 384
Post-Failure Success Analysis 385
Sensemaking 386
The Need for New Metrics 387
Learning from Failure 387
The Failure of Success 388
Conclusion 390
Implications and Issues for Project Managers and Innovation Personnel 390
12 Innovation in Action 393
Introduction 393
Innovation in Action: Apple 393
Innovation in Action: Facebook 395
Innovation in Action: IBM 396
Innovation in Action: Texas Instruments 399
Innovation in Action: 3M 401
Innovation in Action: Motorola 403
Innovation Project Management: The Case of KAUST Smart 404
Key Characteristic of KAUST Smart Projects (What makes KAUST Smart Projects Unique) 405
Recent and Ongoing Project examples 408
Innovation in Action: Samsung 410
Agile Innovation in Action: Integrated Computer Solutions, Inc 411
Innovation in Action: COMAU 418
Innovation in Action: Tokio Marine and Nichido Systems 425
Innovation in Action: GeA 427
Innovation Management at GeA - The Strategic Parts 432
Innovation in Action: Wärtsilä energy Solutions 435
Critical Issues 437
13 Case Studies 439
Disney (A): Innovation Project Management Skills at Disney 439
Disney (B): Creating Innovation: Disney’s Haunted Mansion 449
Disney (C): Impact Of Culture On Global Innovation Opportunities 464
Disney (D): The Partnership Side Of Global Business Model Innovation 482
Case Study: Boeing 787 Dreamliner: Managing Innovation Risks with a New Business Model 494
Case Study: The Sydney Australia Opera House 501
Case Study: Ampore Faucet Company: Managing Different Views on Innovation 508
Case Study: The Innovation Sponsors 510
Case Study: The Rise, Fall, and Resurrection of Iridium: When an Innovation Business Model Fails 512
Case Study: Zane Corporation: Selecting an Innovation Framework 540
Case Study: Redstone Inc.: Understanding Innovation Cultures 544
Case Study: The Government Think Tank: The Failure of Crowdsourcing 546
Case Study: Lego: Brand Management Innovation 548
Index 565
