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    • 1. Everyone’s Business: From Innovation to Project Management Aaron J. Shenhar Stevens Institute of Technology [email_address] 201-323-3246 Rutgers University – April 9, 2008
    • 2.  
    • 3. Operations Projects 1800s Agricultural society 1900s Industrial society 2000s Information society Time Industries, Companies, Society The Increasing Share of Projects
    • 4.  
    • 5. Outline
      • Introduction
      • What is Innovation
      • Connecting Innovation to Projects
      • The Adaptive and Flexible Approach
      • The Strategic Approach
      • Summary
    • 6. What is Innovation?
      • Is it an Idea?
      • Is it Something New?
      • It is a Commercialization of an Idea
    • 7. Innovation
      • Basic distinction between
        • Discovery, Invention, Innovation
      • Types of Innovation :
        • Incremental, Radical, System
        • In Market, In Technology
        • Product, Process, Service
        • Customer Adoption Cycle, Innovator’s Dilemma
      • Sources of Innovation:
        • Market pull, Technology push
        • Jointly driven
    • 8.  
    • 9. Managing the Innovation Process Idea Commercialization
    • 10. Innovation as a Screening Process # 100 1 3 6 20 80 Screening Development Production Introduction Success Time
    • 11.  
    • 12. Innovation A Series of Connections
      • The process of innovation involves a series of connections between problems and solutions.
      • Ignited and energized by technology, but driven by needs and opportunities.
      • In its natural state, the connections are random.
      • The process can be “managed” by increasing the number of connections and selectively reinforcing those of most value.
    • 13. The Innovation Process Idea Generation Idea Testing Preparing Proposal Approval Project Management Formality Market Technology Championing
    • 14. Basic Question
      • How do you manage different types of innovation?
      • It’s all in the Project
    • 15. Examples
      • Denver Airport
      • Segway
      • Airbus A380, Boeing 787
    • 16. Project Management - The Two + One Processes When are you shooting? Technical Process Product Definition Process Managerial Process
    • 17. Definition Planning Execution Termination Revise Definition Revise Plans Classical Project Phases
    • 18. The Project Diamond
    • 19. Four Dimensions for Distinction Among Project Types
      • Novelty – How new is the product to customers and users
        • Derivative, Platform, Breakthrough
      • Technology – How much new technology is used
        • Low-tech, Medium-tech, High-tech, Super High-tech
      • Complexity – How complex is the system and its subsystems
        • Assembly, System, Array
      • Pace – How Critical is the Time frame
        • Regular, Fast/Competitive, Time-Critical, Blitz
      Each Type Has a Unique Impact on Project Management
    • 20. Project Type Impact on Project Management Novelty Complexity Technology Pace Design and development. Later design freeze Formality Autonomy Less market data. Later requirement freeze System engineering. System integration
    • 21. Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz Denver International Airport Project Automatic Bag –Handling System Airport Construction Project
    • 22. Figure 4-2 The Segway Project Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz Dr = (Br, HT, Sy, -) Da = (Pl, HT, Sy, -) Required style Actual style
    • 23. Stevens Replaces Traditional Project Management with An Adaptive and Strategic Approach Novelty Traditional PM Adaptive Approach Strategic Approach Budget Time Performance Strategy Tools Processes Spirit Organization Complexity Technology Pace Company Strategy 1 2 3
    • 24.
      • Project Requirements
        • - System requirements - Operational, Functional, Specifications
      • Commitments
        • - Contract, Milestones, SOW, Payments, Ts &Cs
      • Resources
        • - Budget, Personnel, Equipment
      • Strategy
      • Spirit
      • Organization
      • Processes
      • Tools
      The Project Manager’s Assets
    • 25. Project Strategy The Missing Link Project Strategy Implementation Project Plan Business Strategy The Missing Link Project Strategy: What to do and How to do it - to achieve the highest Competitive Advantage and the best Value from the project Strategy is the way chosen to win with the project. Copyright Aaron J. Shenhar 2005 Strategy Is not the Plan - It is what drives the plan.
    • 26. Outline
      • Introduction
      • What is Innovation
      • Connecting Innovation to Projects
      • The Adaptive and Flexible Approach
      • The Strategic Approach
      • Summary
    • 27. Reinventing Project Management: The Diamond Approach to Successful Growth and Innovation Aaron J. Shenhar and Dov Dvir Harvard Business School Press August 2007 New Book
    • 28. Revise Requirements Revise Plans Entire Adaptive Iterative Approach Revise Design Freeze Requirements Freeze Design Adaptive Approach Traditional PM Requirements Planning Complete Specs Design & Build Test
    • 29. What Impacts Project Type? Environment Product Task Project   UCP NTCP Novelty Pace Complexity Technology
    • 30. “ New to the World” Products
      • Markets that don’t exist cannot be analyzed
      • Business plans are typically wrong
        • Define a range of outcomes and keep updating
      • Flexible product development
        • Fast prototyping, obtain market feedback ASAP
        • Accept many changes, Freeze requirements late
      • Strive for market share, not financial goals
      • Invest aggressively in marketing
      • If no market share after 4-6 years, pull out
    • 31. Technology A Type - Low-Tech - No new technology – Construction, Roadwork, “Build to Print” B Type - Medium Tech - Some new technology – Automobiles, Appliances C Type - High-Tech - All new, but existing technologies – Computers, Telecommunication, Defense D Type - Super High Tech - Non-existing technologies – Moon landing, SDI Complexity Assembly - A subsystem, a stand-alone product performing a simple function – Power Supply, CD player System - A collection of elements and subsystems performing a complex set of functions – Automobile, Aircraft, Building Array - A widely dispersed collection of systems with a common mission – Air Traffic Control, City, Internet Definitions and Examples Air fleet Aircraft Wing Monitor Novelty Pace Complexity Technology
    • 32. The Pace Dimension: Available Timeframe Pace Regular Fast/Competitive Pace Regular - A clear timeframe, delays not critical (Public, Govt., Internal) Fast/Competitive Time to market is a competitive advantage Time-Critical Completion time is critical to success (Window of opportunity – Y2K, Space) Blitz Crisis project (War, natural disaster, Industrial crisis) Time- Critical Blitz Novelty Pace Complexity Technology
    • 33. The Impact of Technology on Risk and Design A: 1 B: 1-2 C: 2-3 D: N+3 D C B A Project Scheduled Completion Project Initiation Resources Time Planned Resources Possible time Ranges for design freeze Risk Areas Possible time ranges for design freeze, number of design cycles, and risk areas for project outcomes Legend: A- Low-Tech B- Medium-Tech C- High-Tech D- Super High-Tech B: 1-2 – Number of Design Cycles N – No. of cycles required to choose the final technologies
    • 34. The Space Shuttle Program Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz Required style Actual style Dr = (Br, SHT, Sy, Re) Da = (Pl, HT, Sy, FC)
    • 35. Innovation Categories and Project Types Incremental Market Innovation Incremental Technological Innovation Radical Technological Innovation Modular Innovation Architectural Innovation Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz Radical Market Innovation
    • 36. Time Product Performance Low-end demand High-end demand Sustaining progress Disruptive progress Manage by Platform Projects Manage by Breakthrough Projects The Innovator’s Dilemma and Project Management Adopted from Clayton M. Christensen, the Innovator’s Dilemma, 1997 and modified by the authors
    • 37. The Customer Adoption Cycle and Project Management Novelty Breakthrough Platform Derivative Derivative Platform Technology Medium to Medium- Medium- Medium to Super-High-Tech Tech Tech Low-Tech Goal Strategic Strategic Operational Operational
    • 38. A Framework for Strategic Project Leadership ® Spirit Vision Culture Values Fun Strategy Competitive Advantage Business Success Goals Strategic Focus Organization Structure Teams People Processes Planning Monitoring Controlling Tools Schedule Budget Documentation
    • 39. Strategy Components Objective Strategic Focus Project Definition Success and Failure Criteria Product Definition Competitive Advantage/Value Why would the customer buy? Business Perspective Copyright Aaron J. Shenhar 2005 Why? What? How? Project Product
    • 40.
      • Project Charter
        • By Business to Project Team – Jointly Written
        • Need, Product, Project, Business Perspective
        • Responsibility, Authority
      • Project Initiation Document
        • By Project Team to Business – Jointly Written
        • Strategy, Spirit, Organization, Processes, Tools
        • SPL Hierarchical Plan – SPL Matrix
      • Project Traditional Plans
        • Scope, WBS, Authority, Schedule, Budget, Risk, etc.
      Project Charter Project Initiation Document Project Plans SPL Project Integrated Planning
    • 41. The Seven Parts of Project Strategy Why? Project Strategy Elements Question Details Business Perspective Why do we do it? Customer/User, Need How to address the need? Business opportunity Objective What do we want to achieve? What is the Business Objective? Product What is produced? Product definition Functional requirements Technical specifications Competitive Advantage/Value How good is it? Why is it better? Why will they buy it? Advantage over: competitors, previous products, alternatives. Product cost/effectiveness How would we benefit? Success and Failure Criteria What to expect? How to assess success? Success dimensions Business plan Project Definition How do we do it? What is the project? Project scope, Deliverables Project type Resources – time, $, PM, Team Strategic Focus How to behave for the best CA/V Relentless pursuit of CA/V Guidelines for behavior Policy on leveraging: Competencies, expertise, synergy, alliances