Innovation comes with inherent uncertainty and complexity, has usually an above standard risk of failure, frequently operates at the edge of technology and methodology and impedes retrospective detection of mistakes or errors. Business processes as capricious as innovation should receive a sufficient amount of quality investments, sufficient to prevent at least those errors that can be prevented.

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Innovation Quality – Part 1
The Innovation Quality Paradox

2. Executive Summary
Innovation receives less quality support than manufacturing
• even though process risks are higher, technologies are less
established and mistakes and errors are harder to identify
Investment in Innovation Quality
• saves resources when smartly done
• significantly improves innovation performance
• significantly increases company success
Innovation Quality makes or breaks Management success.
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3. Inno-
vation
Quality Imbalance
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Manu-
facturing
Testing
Techno-
logy
Rules
Missing Rules
and Guidances
No
Retrospective
Quality Testing
Unknown
Technology
Performance
Quality
Investment
Process
Risk

4. Innovation vs. Manufacturing I
• Manufacturing process
• delivers well defined products
• specified by measurable parameters
• process results can be tested retrospectively
• Innovation process
• delivers data or values
• interpreted in the context of a hypothesis
• process results cannot be tested retrospectively
• Missing option for retrospective quality testing is a strong
argument for built-in Innovation Quality.
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5. Innovation vs. Manufacturing II
• Manufacturing process
• is usually well established
• is running within defined limits
• is known to deliver products within specifications
• Innovation process
• uses new and untested technologies
• uses established technologies in a new context
• uses methods with unknown performance
• Unclear technology performance is a strong argument for
built-in Innovation Quality.
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6. Innovation Quality Paradox I
• Manufacturing processes are
• frequently regulated by authorities
• always regulated by company specific rules
• supported by significant quality resources
• Innovation processes are
• never regulated by authorities
• rarely regulated by company specific rules
• supported by limited quality resources
• Paradox 1: Established Manufacturing receives far more
quality support than harder to control Innovation.
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7. Innovation Quality Paradox II
• Manufacturing Quality has a strong external impact
• safety of the customer
• Innovation Quality has a strong internal impact
• improved innovation performance
• leading to competitive advantages
• leading to company success
• leading to management success
• Paradox 2: External quality impact triggers significant
investments. Internal quality impact triggers – not a lot.
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8. Impact I – False Negatives
• Innovation results NOT MATCHING expectations
• maybe “true” negatives – correct and reliable
• justifiably killing hypothesis and innovation
• maybe “false” negatives – incorrect and unreliable
• killing hypothesis and innovation without need
• Innovation Quality prevents false negatives
• thus avoiding costly repetitions and project death
• Avoiding repetitions. Avoiding death of projects.
Innovation Quality saves money.
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9. Impact II – False Positives
• Innovation results MATCHING expectations
• maybe “true” positives – correct and reliable
• justifying further investments in the hypothesis
• maybe “false” positives – incorrect and unreliable
• wrongly triggering further investments
• Innovation Quality prevents false positives
• thus avoiding wrong investments
• Avoiding wrong investments.
Innovation Quality saves money.
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10. Innovation Quality Paradox
• Innovation should receive sufficient quality support
• since process related risks are high
• since mistakes and errors are hard to identify
• since technology performance is unclear
• since investments in quality save resources
• since Innovation performance has significant impact on
company and management success
• Low level of Innovation Quality Investment is a Paradox.
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Innovation Quality is not a Top Management Topic. An attitude coming with personal risk to management. More later on.

11. Innovation Productivity
HENRICH Life Science R&D Consulting
Innovation Productivity Expert
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