Case Study: Developing a comprehensive

Transcription

1 Case Study: Developing a comprehensive Product Innovation Process Amalia Suzianti The 2nd SEPneT Workshop Buenos Aires, September 28th, 2005

2 Contents Introduction and Overview Innovative Organization Culture and Structure Product Innovation Process : Stage-Gate Process Implementation of Stage-Gate Process at medium sized IT Company Conclusion

3 Introduction and Overview (1) Innovation one of the keys to bolster profit margins and fuel future earnings streams Innovation supports the achievement of market leader position and ensures this position There is a need of a guide line to perform the right tasks in achieving innovative products and processes : Innovation Management System

4 Introduction and Overview (2) Clarity AG, was founded in December 2000, and currently is counting among the pioneers of voice portal providers The Mission is to transform the spoken word into a universal and ever-present interface for digital service. V/3 Platform is the Clarity core product. It serves as the basis for both individual industry-and function- specific applications as well as for individual solutions. Source: Clarity s White Paper, Internal Document.

5 Innovative Culture in an Organization Challenge (the Pull) Customer Focus (the Push) Creativity (the Brain) Communication (the Lifeblood) Collaboration (the Heart) Completion (the Muscle) Contemplation (the Ladder) Source:

6 Innovative Organizational Structure CEO Board of Directors Christoph Pfeiffer Advisory Board CFO (Power Promoter) Christoph Pfeiffer CSO Christoph Pfeiffer CTO Marcus Munk Corporate Communication Mgr. (Process / Know How Promoter) Gregor Honsel Bad Homburg, Hamburg, Stuttgart, Wien, Zurich Clarity Services GmbH Bonn Clarity Solutions GmbH Bad Homburg Clarity Ukraine Enterprises Kiev Proveo GmbH Crailsheim best Sella AG Cologne Source: Clarity s White Paper, Internal Document, modified.

7 Product Innovation Process: Stage-Gate Process Source: Stage-Gate is a widely employed product development process that divides the effort into distinct time-sequenced stages separated by management decision gates. It is a blue print for managing the new product generation process

8 IT Customized Stage Gate Process Discovery Gate 1 Stage 1 Gate 2 Stage 2 Gate 3 Stage 3 Gate 4 Stage 4 Gate 5 Stage 5 Discovery Stage First Idea Screen Preliminary Investigation Second Second Idea Screen Decision Detailed to Investigation Develop Development Decision to Test Testing and Validation Decision to Launch Launching Post Launching Review Voice of Customer Mind Mapping Group Brainstorming Creativity Award Idea Database Define market and technical characteristics Internet competitive analysis Portfolio Management Competitor s Product roadmap E-advertising Direct marketing Target costing Customer feedback Shortening development time Field trials Ecommerce test market Implementing Marketing Plan Financial Analysis

9 Proposed Tasks in Stage-Gate Process Stage Possible Tasks Proposed Tasks Discovery Preliminary Investigation Detailed Investigation Development Testing and Validation Launching Post Launching review Brainstorming, Method 6-3-5, Mind mapping, Value Innovation, TRIZ, Check lists Set up idea database Market and technical analysis Competitive analysis Portfolio Management, Scoring Models, Economic Models Customer feedback, shortening development time Field trials, e-commerce test market Implementing Marketing Launch Plan (Marketing Mix) Profitability Analysis Voice of Customer Mind Mapping combined with Group Brainstorming Collecting Ideas into database Define market and technical characteristics, General competitive analysis such as number and size of competitors through the internet Portfolio Management, Constructing competitor s products roadmap Trade show visit Define marketing planning for selected product: e- advertising, direct marketing (cooperate with partners), target costing strategy. Partnering and outsourcing Customer feedback, shortening development time Field trials, e-commerce test market Implementing Marketing Launch Plan Profitability Analysis

10 Idea Generation. Simple. Convenient. Killer Application Mobile Entertaining Orga nizer Mind Mapping Brainstorming Voice of Customer Idea Database

11 Preliminary Investigation Collecting Ideas into database Define market characteristics: Market size and ports, user benefits, competitor info Define technical characteristics: Number of dialog states, Perplexity of the grammar, customisation Internet competitive analysis General info and characteristics such as number and size of competitors

12 Overview of IT Ideas Database

13 Detailed Investigation Portfolio Management Constructing competitor s products roadmap Trade show visit Define marketing planning for selected product: e-advertising direct marketing (cooperate with partners), target costing strategy. Early follower strategy Partnering and outsourcing

14 Application Components Portfolio 1 Low Probability of Success (Market attractiveness, Technical Feasibility) High Low Value (Selling Potential, Competitive Advantage) High

15 Application Components Portfolio 2 High Technology Effort Low Low Value to the Company (Market, Benefits) High

16 Detailed Investigation Portfolio Management Constructing competitor s products roadmap Trade show visit Define marketing planning for selected product: e-advertising direct marketing (cooperate with partners), target costing strategy. Early follower strategy Partnering and outsourcing

17 Decision to Develop: Creating Project Plan

18 Development, Launching, Post Launch Review Customer feedback, shortening development time Field trials, e-commerce test market Implementing Marketing Launch Plan: Direct Marketing E-Advertising Target Costing Early Follower Profitability Analysis

19 Conclusion Successful Innovation Management System requires : clearly defined objectives innovative culture and structure a high commitment from all of company s components, especially management good communication flow a structured guide line which is represented by Stage-Gate Process Documentation

20 References Brockhoff, K. (1996): Technology Management in the Company of the Future, Technology Analysis and Strategic Management, Vol. 8, p Brown, David (1997): Innovation Management Tools : A review of selected methodologies, European Communities, Luxembourg. Burgelman, Robert A., Maidique, Modesto A., Wheelwright, Steven C. (2001): Strategic Management of Technology, Third Edition, McGraw-Hill, New York. Cooper, Robert G. (2001a): Winning at New Products - Accelerating the Process from Idea to Launch, Third Edition, Perseus Publishing, Cambridge, Massachusetts. Cooper, Robert G., Edgett, Scott J., Kleinschmidt, Elko J. (2001b): Portfolio Management for New Products, 2nd Edition, Perseus Publishing, Cambridge, Massachusetts. Dodgson, Mark (2000): The Management of Technological Innovation - An International and Strategic Approach, Oxford University Press, Oxford. Ehrlenspiel, Klaus (1995): Integrierte Produktentwicklung - Methoden für Prozessorganisation, Produkterstellung und Konstruktion, Carl Hanser Verlag, München. Ettlie, John, E. (2000): Managing Technological Innovation, John Wiley and Sons, Inc., New York. Evans, James R., Lindsay, William M. (1999): The Management and Control of Quality, Fourth Edition, South-Western College Publishing, Cincinnati, Ohio. Hauschildt, Jürgen (1997): Innovationsmanagement, 2 Auflage, Verlag Vahlen, München. Lembke, Hans H. (2004): Project Management, Project Management Lecture, 2004, p Lowe, Dr.A.J (2004): Quality Function Deployment, URL: Meyer, Joern-Axel (2001): Innovationsmanagement in kleinen und mittleren Unternehmen, Vahlen Verlag, München. Odagiri, Hiroyuki (1992): Growth through competition - Strategic Management and The Economy in Japan, Oxford University Press, New York. Patterson, Marvin L. (1993): Accelerating Innovation - Improving the Process of Product Development, New York. Pavitt, Keith (1999): Technology, Management and System of Innovation, Edward Elgar Publishing Limited, UK. o.v (2004): Innovation DNA Framework of Principles, URL: