Brioneja discovery driven planning 05210

DISCOVERY DRIVEN PLANNING AND HIGH UNCERTAINTY PROJECTS #INNOCHAT MAY 27, 2010 Jose A. Briones, Ph.D. Twitter: @Brioneja

DISCOVERY DRIVEN PLANNING BACKGROUND
Process for management of innovation and development projects with high levels of uncertainty such as disruptive innovations, new product/new market projects or game changers
1995: First Publication by Rita Gunther McGrath and Ian C. MacMillan (1)
2000: Popularity increases with publication of book “The Entrepreneurial Mindset” (2)
2008: Endorsed by Clayton M. Christensen as an alternative to Stage Gate for high uncertainty projects (3)
2009: Publication of book Discovery Driven Growth (4)

DESCRIPTION
Discovery Driven Planning turns the basic project map on its head
Discovery Driven Planning is a plan to learn, not to show that you had all the answers when you wrote the plan
“ Learn as you go”
Instead of estimating the market demand and calculating the potential revenue/profit, DDP starts by defining the desired financial target that will meet the company’s targets and strategy
The method then defines the set of assumptions, technical and commercial that MUST be proven true in order for the project to succeed
A plan is put in place with specific milestones to test and verify the assumptions.

Method provides discipline and framework to the discovery process but at the same time provides the flexibility necessary for the project to change direction or iterate as needed
DDP uses four basic documents (5)
‘ Reverse Income Statement’ models the business economics.
‘ Pro-Forma Operations Specs’ defines operations needed to run the business.
‘ Key Assumptions Checklist’ identifies the business hurdles and assumptions for the initiative.
‘ Milestone Planning Chart’ specifies when the assumption needs to be tested.

DDP has been successfully used by oil and pharmaceutical companies to tackle high uncertainty projects
More companies are adapting the method, but there is still strong resistance to leave Stage Gate behind.
Stage Gate can be used after the results of DDP have defined the project and reduced the level of uncertainty

INNOCHAT QUESTIONS
How does your company manage innovation projects with high levels of uncertainty?
Do you believe that there is a need for a different process for incremental vs. disruptive innovations?
Have you or do you know someone who has had success implementing Discovery Driven Planning?
Do you know of alternative innovation management processes for high uncertainty projects?

REFERENCES
Discovery Driven Planning, 1995, http://hbr.org/1995/07/discovery-driven-planning/ar/1
The Entrepreneurial Mindset, 2000, http://www.amazon.com/Entrepreneurial-Mindset-Continuously-Opportunity-Uncertainty/dp/0875848346/ref=sr_1_1?ie=UTF8&s=books&qid=1274888243&sr=1-1
Innovation Killers, 2008, http://hbr.org/product/innovation-killers-how-financial-tools-destroy-you/an/R0801F-PDF-ENG?Ntt=innoation%2520killers
Discovery-Driven Growth, 2009, http://www.amazon.com/Discovery-Driven-Growth-Breakthrough-Process-Opportunity/dp/1591396859/ref=sr_1_3?ie=UTF8&s=books&qid=1274887263&sr=8-3
Discovery Driven Planning http://faculty.msb.edu/homak/homahelpsite/webhelp/Discovery_Driven_Planning.htm

http://www.slideshare.net	66
http://creativesage.tumblr.com	1
http://facebook.slideshare.com	1

Brioneja discovery driven planning 05210

by Jose Briones on May 26, 2010

Accessibility

Categories

Upload Details

Usage Rights

3 Embeds 68

Statistics

Brioneja discovery driven planning 05210 — Presentation Transcript