Innovation Project Management: Methods, Case Studies, and Tools for Managing Innovation Projects

Preface xv 1 Introduction to Innovation Project Management 1 Introduction 1 Definitions for Innovation 2 The Business Need 4 Innovation Literature 7 Project Management Literature 8 Innovation Benchmarking 9 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 17 2 Types of Innovation 19 Introduction 19 Incremental versus Radical Innovation 20 Understanding Innovation Differences 21 Product Development Innovation Categories 21 Closed and Open Innovation 23 Crowdsourcing 26 Co-Creation Innovation 27 Open Innovation in Action: Airbus and Co-creation Partnerships 33 Value (or Value-Driven) Innovation 35 Agile Innovation 36 Agile Innovation in Action: Deloitte 37 Agile Innovation in Action: Star Alliance 46 Government Innovation 48 Humanitarian/Social Innovation 51 Social Innovation in Action: Hitachi 52 Nontechnical Innovation in Action 54 Other Categories of Innovation 56 Role of the Board of Directors 59 Finding an Innovation Project Sponsor 60 Implications and Issues for Project Managers and Innovation Personnel 60 3 Innovation and Strategic Planning 63 Introduction 63 Role of the Innovation Project Manager in Strategic Planning 64 Role of the Portfolio PMO 64 Types of Strategies 65 Role of Innovation in Strategic Planning 66 Role of Marketing in Strategic Innovation Planning 67 Product Portfolio Analysis 68 Identifying Core Competencies Using SWOT Analysis 74 Innovation Project Management Competency Models in Action: Eli Lilly 77 Marketing's Involvement with Innovation Project Managers 88 Product Life Cycles 91 Classification of R&D Projects 91 Research versus Development 92 The Research and Development Ratio 93 Offensive versus Defensive Innovation 95 Modeling the R&D Planning Function 96 Priority Setting 99 Contract R&D 101 Nondisclosure Agreements, Secrecy Agreements, and Confidentiality Agreements 103 Government Influence 103 Sources for Innovation Technology 104 Sources of Ideas 105 Project Selection Issues 107 Economic Evaluation of Projects 108 Project Readjustments 111 Project Termination 112 Implications and Issues for Project Managers and Innovation Personnel 113 4 Innovation Tools and Processes 115 Introduction 115 New Product Development 116 The Fuzzy Front End 117 Line of Sight 119 Risk Management 119 The Innovation Culture 123 Innovative Cultures and Corporate Leadership 126 Idea Generation 127 Spinoff Innovations 128 Understanding Reward Systems 129 Innovation Leadership in Action: Medtronic 130 IPM Skills Needed 133 Design Thinking 135 Brainstorming 138 Prototypes 141 Creativity and Innovation Fears 143 Innovation Governance 144 Transformational Governance 145 Balanced Scorecard 146 Strategy Maps 147 Innovation Portfolio Management 148 Innovation Sponsorship 151 The Innovation Team 151 Virtual versus Co-located Innovation Teams 152 The Need for PM 2.0 and PM 3.0 153 Implications and Issues for Project Managers and Innovation Personnel 156 5 From Traditional to Innovation Project Management Thinking 159 Introduction 159 Information Warehouses 160 Innovation Planning Overview 163 Innovation Assumptions 167 Validating the Objectives 169 Life-Cycle Phases 171 Work Breakdown Structure 175 Budgeting 175 Scheduling 176 Scope Change Control 176 Communication 178 Communication Innovation in Action: Arcadis 179 Innovation in Action: NTT Data 187 Solution Innovation in Action: Philips Business Group Monitoring and Analytics and Therapeutic Care Services 190 Innovation in Action: Dubai Customs and the Accelerated Exploratory Lab 202 Innovation in Action: Merck 207 Innovation in Action: Repsol 210 Staffing Innovation Projects 213 Implications and Issues for Project Managers and Innovation Personnel 217 6 Innovation Management Software 219 Introduction 219 Origin and Benefits of Innovation Software 220 Software Innovation in Action: Ideascale 222 Software Innovation in Action: Qmarkets 225 Software Innovation in Action: Hype Innovation 230 Software and Open Innovation 241 Implications and Issues for Project Managers and Innovation Personnel 241 7 Value-Based Innovation Project Management Metrics 243 Introduction 243 Value over the Years 245 Value and Leadership 246 Combining Benefits and Value 248 Recognizing the Need for Value Metrics 249 The Need for Effective Measurement Techniques 252 Customer/Stakeholder Impact on Value Metrics 257 Customer Value Management Programs 258 The Relationship between Project Management and Value 261 Selecting the Right Metrics 264 The Failure of Traditional Metrics and KPIs 266 The Need for Value Metrics 266 Creating Value Metrics 267 Industry Examples of Innovation Value Metrics 273 Alignment to Strategic Business Objectives 275 Metrics for Innovation Governance 277 Innovation Metrics in Action: Innovationlabs 278 The Dark Side of Innovation Metrics 288 Establishing a Metrics Management Program 290 Implications and Issues for Project Managers and Innovation Personnel 292 8 Business Models 295 Introduction 295 From Project Manager to Designer 297 Business Models and Value 298 Business Model Characteristics 299 Strategic Partnerships 300 Business Intelligence 300 Skills for the Business Model Innovator 301 Business Model Enhancements 303 Types of Business Models 305 Business Models and Strategic Alliances 308 Identifying Business Model Threats 308 Business Model Failure 310 Business Models and Lawsuits 310 Implications and Issues for Project Managers and Innovation Personnel 313 9 Disruptive Innovation 315 Introduction 315 Early Understanding of Disruption 316 Innovation and the Business Model Disruption 317 Categories of Disruptive Innovations 319 The Dark Side of Disruptive Innovation 321 Using Integrated Product/Project Teams 321 Disruptive Innovation in Action 324 Implications and Issues for Project Managers and Innovation Personnel 326 10 Innovation Roadblocks 329 Introduction 329 The Failure of Success 329 One Size Fits All 330 Insufficient Line of Sight 330 Failing to Search for Ideas 331 Sense of Urgency 331 Working with Prima Donnas 332 Lack of Collaboration 332 Politics 332 Project Workloads 332 Intellectual Property Rights 333 Not Understanding the Relationship between Creativity and Innovation 334 Too Many Assumptions 334 Innovation Funding 335 Cash Flow and Financial Uncertainty 335 Control, Control, and Control 335 Analysis-Paralysis 336 Innovation in Action: Naviair 336 Innovation in Action: Overcoming the Roadblocks 349 11 Defining Innovation Success and Failure 353 Introduction 353 The Business Side of Traditional Project Success 354 Defining Project Success: The Early Years 355 Redefining Project Success: Approaching the Twenty-First Century 357 Degrees of Success and Failure 358 Defining Success at the Beginning of the Project 359 The Role of Marketing in Defining Innovation Success 360 The Business Side of Innovation Success 363 Prioritization of the Success Factors 365 Innovation Project Success and Core Competencies 366 Innovation Project Success and Business Models 368 Causes of Innovation Project Failure 368 Identifying the Success and Failure Criteria 371 Implications and Issues for Project Managers and Innovation Personnel 373 12 Innovation in Action 375 Introduction 375 Innovation in Action: Apple 375 Innovation in Action: Facebook 377 Innovation in Action: IBM 378 Innovation in Action: Texas Instruments 382 Innovation in Action: 3M 384 Innovation in Action: Motorola 385 Innovation in Action: Zurich North America 386 Innovation in Action: UNICEF USA 388 Innovation in Action: Samsung 392 Agile Innovation in Action: Integrated Computer Solutions, Inc. 392 Innovation in Action: COMAU 400 Innovation in Action: Tokio Marine and Nichido Systems 408 Innovation in Action: GEA 410 Innovation in Action: Airbus Space and Defence 418 Innovation in Action: thyssenkrupp 421 Innovation in Action: Wärtsilä Energy Solutions 424 Working Together: ABC Training Software Development Project Revival 427 Critical Issues 430 13 Case Studies 431 Disney (A): Innovation Project Management Skills at Disney 431 Disney (B): Creating Innovation: Disney's Haunted Mansion 441 Disney (C): Impact of Culture on Global Innovation Opportunities 456 Disney (D): The Partnership Side of Global Business Model Innovation 476 Case Study: Boeing 787 Dreamliner: Managing Innovation Risks with a New Business Model 489 Case Study: The Sydney Australia Opera House 496 Case Study: Ampore Faucet Company: Managing Different Views on Innovation 503 Case Study: The Innovation Sponsors 506 Case Study: The Rise, Fall, and Resurrection of Iridium: When an Innovation Business Model Fails 508 Index 539