SUMMARY PART 2: MANAGING AND EVALUATING INDIVIDUAL INNOVATION IDEAS THROUGH THE PIPELINE
Part 2 discusses best practices for taking innovation initiatives from ideation to commercialization. It recommends using a project management approach involving defining the project, dividing it into tasks, sequencing tasks, and creating a budget. It also outlines 8 tests to evaluate the potential of ideas, including whether they offer valuable benefits, have marketing and scaling potential, a qualified leadership team, intellectual property control, financial return on investment, social responsibility, and fit with organizational strategy.
This document contains sample exam questions for a PROJ 595 project management course. It includes multiple choice and short answer questions covering topics like risk identification, analysis, response planning, monitoring and control. Sample questions assess understanding of risk management processes and tools from the Project Management Body of Knowledge (PMBOK) like qualitative risk analysis, risk response strategies, decision trees, and sensitivity analysis. The document provides three sets of exam questions and material for a course project involving creating a risk management plan for a hypothetical project.
This document contains a practice exam for a project management course. It includes multiple choice questions covering topics like risk identification, analysis, response planning, and monitoring and control. It also includes questions asking students to describe processes like qualitative risk analysis, decision tree analysis, sensitivity analysis using tornado diagrams, and using contracts like FPEPA. The exam is divided into several sets and covers the full range of project risk management from planning to execution.
PROJ 595 RANK Lessons in Excellence-- proj595rank.com RoelofMerwe131
This document contains a set of practice exam questions for a project management course. The questions cover topics related to risk management, including risk identification, qualitative and quantitative risk analysis, risk response planning, risk monitoring and control, and stakeholder management. Sample questions assess understanding of risk management tools and techniques like the risk register, stakeholder analysis, scenario testing, sensitivity analysis, and fault tree analysis.
This document contains sample exam questions for a PROJ 595 project management course. It includes multiple choice and short answer questions covering topics like risk identification, analysis, response planning, monitoring and control. Sample questions assess understanding of risk management processes and tools from the Project Management Body of Knowledge (PMBOK) like qualitative risk analysis, risk response strategies, decision trees, and sensitivity analysis. The document provides three sets of exam questions and material for a course project involving creating a risk management plan for a hypothetical project.
This document contains a practice exam for a project management course. It includes multiple choice questions covering topics like risk identification, analysis, response planning, and monitoring and control. It also includes questions asking students to describe processes like qualitative risk analysis, decision tree analysis, sensitivity analysis using tornado diagrams, and using contracts like FPEPA. The exam is divided into several sets and covers the full range of project risk management from planning to execution.
PROJ 595 RANK Lessons in Excellence-- proj595rank.com RoelofMerwe131
This document contains a set of practice exam questions for a project management course. The questions cover topics related to risk management, including risk identification, qualitative and quantitative risk analysis, risk response planning, risk monitoring and control, and stakeholder management. Sample questions assess understanding of risk management tools and techniques like the risk register, stakeholder analysis, scenario testing, sensitivity analysis, and fault tree analysis.
PROJ 595 RANK Education for Service-- proj595rank.comKeatonJennings29
This document contains sample exam questions for a PROJ 595 final exam. It includes three sets of exam questions covering a range of topics, including risk identification, analysis, response planning, monitoring and control. The questions assess understanding of risk management processes and tools. Sample questions test knowledge of contracting types, stakeholder identification, the PMBOK risk management process, decision tree analysis, tornado diagrams and other quantitative risk analysis techniques.
This document contains sample exam questions for a PROJ 595 final exam. It includes multiple choice and short answer questions covering a range of topics, including risk identification, analysis, response planning, monitoring and control. Sample questions assess understanding of concepts like stakeholder analysis, the risk management process, qualitative and quantitative risk analysis techniques, risk response strategies, and tools like decision trees, tornado diagrams and reserve analysis. The exam questions would test students' knowledge of applying key project risk management principles and processes to case examples from industries like healthcare, technology and construction.
This document outlines steps to establish a hybrid parametric model for project selection and decision making in an organization. The model combines known methods with a weighted scoring approach. Key steps include: collecting project information; defining selection criteria and weights; constructing quantitative indicators; developing decision logic; implementing the model; evaluating results and providing feedback; and ongoing model controlling and improvement. The goal is to reduce biases while capturing important factors for value-maximizing project choices.
Combining qualitative and quantitative software process evaluation sylvie t...IWSM Mensura
The document discusses combining qualitative and quantitative software process evaluation approaches. It proposes an approach that measures software functional size and process efficiency during qualitative interviews and documentation reviews. A field trial of the approach was conducted at a financial trading organization with 100 staff developing trading software. Both qualitative and quantitative data were collected from 6 selected projects ranging from small to large. The results provided insights into the software process and identified requirements defects and variances in process efficiency across projects.
Srae2014 - Construction Projects Risks from the Perspective of Project Manage...Safak EBESEK
Construction Projects Risks from the Perspective of Project Management
Özlem Tüz, PhD & Safak EBESEK, PhD.C
The 23rd SRA-Europe conference 16-18 June 2014 in Istanbul, Turkey
Hosted by Istanbul Technical University
This summary provides an overview of the key details from the document in 3 sentences:
The document discusses project management plans for the Girls in Tech Design-a-Thon event, including the scope, work breakdown structure, cost estimates, schedule, network diagram and critical path. It analyzes these project management elements and provides recommendations to improve the management of the event. The event aims to promote women in technology through design challenges over 3 days with support from sponsor AT&T.
Best Practices for STEM Capstone_07_07_15Arthur GOORAY
This document provides an overview of best practices for selecting and executing STEM capstone projects as a guide for advisors and mentors. It discusses the importance of developing a well-defined front end, including a market attack plan, technology platform plan, and product platform plan to focus the project. It also emphasizes the need to assess technology readiness and maturity to ensure the technology can be successfully transferred and commercialized. Developing partnerships is key to facilitating an integrated solution and commercializing the technology through an extended enterprise model.
SPE London 'Geomechanics: Quo Vadis?' Event Talk - 27Oct15 Glen Burridge
This document summarizes the results of interviews and questionnaires with 28 contributors from various disciplines within the oil and gas industry regarding the current and future state of geomechanics. Key findings include:
1) Geomechanics is not fully integrated into exploration, planning, and assurance workflows.
2) Barriers to adoption include lack of standards, siloed teams, and perceptions of geomechanics as reactive rather than proactive.
3) Widespread knowledge sharing of case studies and establishing geomechanics strategies within companies is needed for it to realize its full potential in areas like drillability and reservoir performance.
This document provides an overview of key concepts in software project management including project evaluation, planning, categorization of projects, setting objectives, management principles, and stepwise project planning. It discusses the importance of software project management and compares software projects to other types of projects. Various methodologies, activities, life cycles, stakeholders, objectives, and management concepts are defined.
Project Management - To determine the cost of particular element in advance o...Suma Kamadod
This document contains 75 multiple choice questions related to project management. It provides contact information for obtaining an answer sheet to the questions, including an email address and phone number. The questions cover a range of project management topics, processes, tools and techniques.
Project Management - Pmi’s opm3 is an example of a __________________ model...Suma Kamadod
This document contains 75 multiple choice questions related to project management. It provides contact information for someone who can provide the answer sheet. The questions cover a range of project management topics including the definition of a project, the triple constraint, project lifecycles, scheduling, cost management, quality management, and human resource management. Answers to the questions are not provided in the document.
Modified Stage-Gate: A Product Development Process by Dr. Nader Ale EbrahimNader Ale Ebrahim
In today’s dynamic marketplace, manufacturing companies are under strong pressure to introduce new products for long-term survival with their competitors. Increased competition and reduced product life cycles put force upon companies to develop new products faster. In response to these pressing needs, there should be some new approach compatible in flexible circumstances. This presentation presents a solution based on the popular Stage-Gate system, which is closely linked with virtual team approach. Virtual teams can provide a platform to advance the knowledge-base in a company and thus to reduce time-to-market. The presentation describes all the major aspects of new product development (NPD), NPD process and its relationship with virtual teams, Stage-Gate system finally presents a modified Stage-Gate system to cope up with the changing needs.
This document discusses the concepts of projects and project management. It begins with definitions of a project as a temporary endeavor undertaken to create a unique product or service. Key aspects of projects mentioned include them being limited in time, goal-centric, and impacting existing organizations. Examples of projects like building a house or developing a new product are provided. The document then discusses what constitutes a project team and management. It provides insights into evaluating different project models and highlights factors like control, discipline, and organization type that determine the best model. The rest of the document offers perspectives on project failures, principles of high reliability organizations, and practical tools for project planning like the work breakdown structure, Gantt chart, PERT planning and managing scope.
This document discusses different models for managing innovation processes, including stage-gate models, project portfolios, and agile systems. It begins by explaining stage-gate models, which provide a structured process for moving ideas through to launch, including stages to develop ideas and gates for review and decision-making. Radical innovations may require more formal controls through this process. The Renault Kwid is presented as an example of disruptive innovation through its very low price point, though it did not feature new technologies. Development phases need feedback loops to maintain alignment with the original innovative vision to avoid potential "valleys of death".
The document describes the product design process, which includes key steps like product planning, concept development, embodiment design, and detail design. It discusses product planning in depth, including why it is important to determine the right mix of projects and provide each project with a focused mission statement. The document also covers gathering customer needs, generating concepts, and evaluating concepts to arrive at the best design.
This document summarizes key aspects of the new product development process as described in Chapter 2 of the textbook. It provides an overview of Procter & Gamble's use of a strategic process to successfully transform its cosmetics business unit. It then outlines the typical phases of the new product process - opportunity identification, concept generation, concept evaluation, development, and launch. For each phase, it lists the main activities and goals. The document also discusses techniques for accelerating new products to market and managing breakthrough innovations.
This document discusses the pros and cons of conducting product roadshows in the early development stage. It provides an example of a company called HQMS that conducted early-stage demonstrations of their borehole measurement system. Early demonstrations can provide valuable feedback to help focus product development, identify desired features, detect risks, and reduce costs. However, products in the early stage may be unfinished and lead to overspecification from users. The document emphasizes managing expectations and having a clear value proposition when conducting early demonstrations.
CH-2.1 Conceptualizing and Initializing the IT Project.pptamanuel236786
The document discusses the phases and methodology of IT project management. It describes the five phases of an IT project as conceptualization and initialization, developing the project charter and plan, execution and control, closeout, and evaluation. It also explains how to develop a business case for a project, including defining its measurable organizational value (MOV) and analyzing costs, benefits, risks and alternatives. The business case and MOV help support project selection and alignment with organizational goals and strategies.
PROJ 595 RANK Education for Service-- proj595rank.comKeatonJennings29
This document contains sample exam questions for a PROJ 595 final exam. It includes three sets of exam questions covering a range of topics, including risk identification, analysis, response planning, monitoring and control. The questions assess understanding of risk management processes and tools. Sample questions test knowledge of contracting types, stakeholder identification, the PMBOK risk management process, decision tree analysis, tornado diagrams and other quantitative risk analysis techniques.
This document contains sample exam questions for a PROJ 595 final exam. It includes multiple choice and short answer questions covering a range of topics, including risk identification, analysis, response planning, monitoring and control. Sample questions assess understanding of concepts like stakeholder analysis, the risk management process, qualitative and quantitative risk analysis techniques, risk response strategies, and tools like decision trees, tornado diagrams and reserve analysis. The exam questions would test students' knowledge of applying key project risk management principles and processes to case examples from industries like healthcare, technology and construction.
This document outlines steps to establish a hybrid parametric model for project selection and decision making in an organization. The model combines known methods with a weighted scoring approach. Key steps include: collecting project information; defining selection criteria and weights; constructing quantitative indicators; developing decision logic; implementing the model; evaluating results and providing feedback; and ongoing model controlling and improvement. The goal is to reduce biases while capturing important factors for value-maximizing project choices.
Combining qualitative and quantitative software process evaluation sylvie t...IWSM Mensura
The document discusses combining qualitative and quantitative software process evaluation approaches. It proposes an approach that measures software functional size and process efficiency during qualitative interviews and documentation reviews. A field trial of the approach was conducted at a financial trading organization with 100 staff developing trading software. Both qualitative and quantitative data were collected from 6 selected projects ranging from small to large. The results provided insights into the software process and identified requirements defects and variances in process efficiency across projects.
Srae2014 - Construction Projects Risks from the Perspective of Project Manage...Safak EBESEK
Construction Projects Risks from the Perspective of Project Management
Özlem Tüz, PhD & Safak EBESEK, PhD.C
The 23rd SRA-Europe conference 16-18 June 2014 in Istanbul, Turkey
Hosted by Istanbul Technical University
This summary provides an overview of the key details from the document in 3 sentences:
The document discusses project management plans for the Girls in Tech Design-a-Thon event, including the scope, work breakdown structure, cost estimates, schedule, network diagram and critical path. It analyzes these project management elements and provides recommendations to improve the management of the event. The event aims to promote women in technology through design challenges over 3 days with support from sponsor AT&T.
Best Practices for STEM Capstone_07_07_15Arthur GOORAY
This document provides an overview of best practices for selecting and executing STEM capstone projects as a guide for advisors and mentors. It discusses the importance of developing a well-defined front end, including a market attack plan, technology platform plan, and product platform plan to focus the project. It also emphasizes the need to assess technology readiness and maturity to ensure the technology can be successfully transferred and commercialized. Developing partnerships is key to facilitating an integrated solution and commercializing the technology through an extended enterprise model.
SPE London 'Geomechanics: Quo Vadis?' Event Talk - 27Oct15 Glen Burridge
This document summarizes the results of interviews and questionnaires with 28 contributors from various disciplines within the oil and gas industry regarding the current and future state of geomechanics. Key findings include:
1) Geomechanics is not fully integrated into exploration, planning, and assurance workflows.
2) Barriers to adoption include lack of standards, siloed teams, and perceptions of geomechanics as reactive rather than proactive.
3) Widespread knowledge sharing of case studies and establishing geomechanics strategies within companies is needed for it to realize its full potential in areas like drillability and reservoir performance.
This document provides an overview of key concepts in software project management including project evaluation, planning, categorization of projects, setting objectives, management principles, and stepwise project planning. It discusses the importance of software project management and compares software projects to other types of projects. Various methodologies, activities, life cycles, stakeholders, objectives, and management concepts are defined.
Project Management - To determine the cost of particular element in advance o...Suma Kamadod
This document contains 75 multiple choice questions related to project management. It provides contact information for obtaining an answer sheet to the questions, including an email address and phone number. The questions cover a range of project management topics, processes, tools and techniques.
Project Management - Pmi’s opm3 is an example of a __________________ model...Suma Kamadod
This document contains 75 multiple choice questions related to project management. It provides contact information for someone who can provide the answer sheet. The questions cover a range of project management topics including the definition of a project, the triple constraint, project lifecycles, scheduling, cost management, quality management, and human resource management. Answers to the questions are not provided in the document.
Modified Stage-Gate: A Product Development Process by Dr. Nader Ale EbrahimNader Ale Ebrahim
In today’s dynamic marketplace, manufacturing companies are under strong pressure to introduce new products for long-term survival with their competitors. Increased competition and reduced product life cycles put force upon companies to develop new products faster. In response to these pressing needs, there should be some new approach compatible in flexible circumstances. This presentation presents a solution based on the popular Stage-Gate system, which is closely linked with virtual team approach. Virtual teams can provide a platform to advance the knowledge-base in a company and thus to reduce time-to-market. The presentation describes all the major aspects of new product development (NPD), NPD process and its relationship with virtual teams, Stage-Gate system finally presents a modified Stage-Gate system to cope up with the changing needs.
This document discusses the concepts of projects and project management. It begins with definitions of a project as a temporary endeavor undertaken to create a unique product or service. Key aspects of projects mentioned include them being limited in time, goal-centric, and impacting existing organizations. Examples of projects like building a house or developing a new product are provided. The document then discusses what constitutes a project team and management. It provides insights into evaluating different project models and highlights factors like control, discipline, and organization type that determine the best model. The rest of the document offers perspectives on project failures, principles of high reliability organizations, and practical tools for project planning like the work breakdown structure, Gantt chart, PERT planning and managing scope.
This document discusses different models for managing innovation processes, including stage-gate models, project portfolios, and agile systems. It begins by explaining stage-gate models, which provide a structured process for moving ideas through to launch, including stages to develop ideas and gates for review and decision-making. Radical innovations may require more formal controls through this process. The Renault Kwid is presented as an example of disruptive innovation through its very low price point, though it did not feature new technologies. Development phases need feedback loops to maintain alignment with the original innovative vision to avoid potential "valleys of death".
The document describes the product design process, which includes key steps like product planning, concept development, embodiment design, and detail design. It discusses product planning in depth, including why it is important to determine the right mix of projects and provide each project with a focused mission statement. The document also covers gathering customer needs, generating concepts, and evaluating concepts to arrive at the best design.
This document summarizes key aspects of the new product development process as described in Chapter 2 of the textbook. It provides an overview of Procter & Gamble's use of a strategic process to successfully transform its cosmetics business unit. It then outlines the typical phases of the new product process - opportunity identification, concept generation, concept evaluation, development, and launch. For each phase, it lists the main activities and goals. The document also discusses techniques for accelerating new products to market and managing breakthrough innovations.
This document discusses the pros and cons of conducting product roadshows in the early development stage. It provides an example of a company called HQMS that conducted early-stage demonstrations of their borehole measurement system. Early demonstrations can provide valuable feedback to help focus product development, identify desired features, detect risks, and reduce costs. However, products in the early stage may be unfinished and lead to overspecification from users. The document emphasizes managing expectations and having a clear value proposition when conducting early demonstrations.
CH-2.1 Conceptualizing and Initializing the IT Project.pptamanuel236786
The document discusses the phases and methodology of IT project management. It describes the five phases of an IT project as conceptualization and initialization, developing the project charter and plan, execution and control, closeout, and evaluation. It also explains how to develop a business case for a project, including defining its measurable organizational value (MOV) and analyzing costs, benefits, risks and alternatives. The business case and MOV help support project selection and alignment with organizational goals and strategies.
This document provides an overview of a presentation on delivering competitive exports when exchange rates are equal between currencies. It discusses idea generation and product development processes. It emphasizes strategic alignment of business priorities with opportunities through identifying customer needs and formulating strategies. A product-market matrix outlines different strategies like market penetration, development, product development, and diversification. Effective project management is key to avoiding downward spirals from issues like poor prioritization. A phase-gate product development process and portfolio management are presented as tools to manage projects and resources effectively.
VALUE ENGINEERING IN RESIDENTIAL HOUSE CONSTRUCTIONIAEME Publication
This document discusses the application of value engineering techniques to residential house construction projects. It begins with an introduction to value engineering and its goals of achieving the required functions at the lowest overall cost. It then describes the typical job plan process for a value engineering study, including information gathering, idea generation, evaluation, development of alternatives, and recommendations. The document presents a case study where value engineering was applied to an individual housing project. Problems with the original design were identified and alternative ideas were generated and evaluated. The study concluded that a thorough information gathering phase is important for identifying problems and generating effective solutions through value engineering.
Value engineering in residential house constructionIAEME Publication
This document discusses the application of value engineering techniques in residential house construction projects. It begins with defining value engineering as systematically identifying the functions of a product or service and delivering those functions reliably at the lowest overall cost. The document then outlines the benefits of value engineering, including cost reduction, time savings, and quality improvement. It describes the typical job plan process for a value engineering study, which involves information gathering, creative idea generation, idea evaluation, development of alternatives, and recommendations. Finally, it states that value engineering is an effective approach that should be understood and accepted at all levels of project management in order to achieve whole-life value for construction projects.
Chapter 2
The New Products Process
*
The Procter & Gamble Cosmetics SagaStarting point: senior management commitment to new products.P&G’s Cosmetics business unit had no clear product strategy, unfocused product initiatives, and too many customer segments being targeted – in short, a lack of focus.P&G Cosmetics skillfully used all three strategic elements and made the weak business unit profitable.
*
P&G Cosmetics and the PICSituation Assessment:Underserved consumer market that wanted quality facial product such as cleansers, eye products, etc.Supply chain was uncoordinated as production and shipments were not tied to demand; market forecasts were not driving shipping schedules.PIC recommended a strategic focus on products for the face – other opportunities would not be pursued.
*
P&G Cosmetics and the New Products ProcessP&G Cosmetics used a phased process like that of Chapter 1.Project teams established early in process.Consumer research done early and used in the process (the voice of the customer).Tough evaluation steps were carefully implemented as new products were compared to best practices and benchmarks.
*
P&G Cosmetics and the New Product PortfolioP&G Cosmetics systematically added new products such that maximum buzz and excitement was created in the marketplace.If already several eye makeup products on the market, they would not immediately launch another. Management called this an “initiative rhythm” for product launch.
*
P&G Cosmetics and the Role of Effective Team ManagementSenior Cosmetics executives were committed to success as was corporate level management.Initiative Success Managers were hired to lead strategy development, manage evaluation meetings, train employees, etc.The best team leaders were sought and rewarded based on performance.
*
The Phases of the New Products Process
Phase 1: Opportunity Identification/Selection
Phase 2: Concept Generation
Phase 3: Concept/Project Evaluation
Phase 4: Development
Phase 5: Launch
Figure 2.1
The Evaluation Tasks in the New Products Process
Figure 2.2
Opportunity Identification/
Selection
Concept Generation
Concept/Project Evaluation
Development
Launch
Direction;
Where should we look?
Initial Review:
Is the idea worth screening?
Full Screen:
Should we try to develop it?
Progress Reports:
Have we developed it?
Market Testing:
Should we market it?
*
Phase 1: Opportunity Identification/Selection
Active and passive generation of new product opportunities as spinouts of the ongoing business operation. New product suggestions, changes in marketing plan, resource changes, and new needs/wants in the marketplace. Research, evaluate, validate, and rank them (as opportunities, not specific product concepts). Give major ones a preliminary strategic statement to guide further work on it.
*
Activities that Feed Strategic Planning for New ProductsOngoing marketing planning (e.g., need to meet new aggressive competitor)Ongoing corporate plan ...
This document discusses product design and development. It outlines the key phases of the design process including concept development, system-level design, detail design, testing and refinement, and production ramp-up. The design process aims to satisfy customers by developing high quality, cost effective products through a cross-functional team approach. Key measures of an effective design process include product quality, cost, development time, and capability. Effective communication throughout the process is also emphasized.
The document discusses key concepts in engineering design including:
1) What design is and the iterative process of defining requirements, generating concepts, and refining solutions.
2) Factors that influence design such as perception, analysis vs synthesis, and challenges in the design environment.
3) The engineering design process which follows scientific and iterative methods to understand problems, research solutions, develop prototypes, and test designs.
4) Considerations for good design including achieving performance requirements, addressing lifecycle issues, and meeting social and regulatory standards.
This document discusses various aspects of product design and development. It covers the product development process and typical phases from planning to production ramp-up. It also discusses designing for customers through techniques like quality function deployment and the house of quality. Additionally, it discusses designing for manufacturability and measuring product development performance through various metrics. The goal is to develop products that meet customer needs while being efficient and cost-effective to manufacture and bring to market.
Introduction to product design and development (module 1)subhashFTVET
The document discusses product design and development, noting that it is a cross-functional problem involving marketing, design, and manufacturing functions working together. It provides an overview of the product development process from identifying market opportunities to production and delivery. Key aspects of product design covered include conceptual design, engineering design process, types of design, and who is typically involved in product design and development.
This document outlines the agenda and content for a workshop on technology commercialization. It introduces the Innovation SPACETM technology commercialization model, which consists of 6 phases from concept to domination. Phase 1, the concept phase, includes discovering if a new technology or product is unique, technically feasible, and has market needs. Step 1 of this phase is a technology analysis to determine these attributes. The document then discusses key questions for the technology analysis, common innovator delusions, an example value proposition canvas, and frameworks for mapping innovations and prioritizing projects based on attractiveness vs. effort required.
Design review is a process that companies can use to improve product quality, reduce time to market, and lower development costs. It involves project designers meeting with unbiased external reviewers to analyze a design before production and identify potential problems. Design review should occur at several stages, including reviewing requirements and architecture, manufacturing and reliability, and expected performance. It allows companies to address issues early and reduce costly errors later in the design process.
Design review is a process that companies can use to improve product quality, reduce time to market, and lower development costs. It involves project designers meeting with unbiased external reviewers to analyze a design before production and identify potential problems. Design review should occur at several stages, including reviewing requirements and architecture, manufacturing and reliability, and expected performance. It allows companies to address issues early and reduce costly errors later in the design process.
"What to Do before Project Starts?" or Problem Definition for InnovationAndrey Schukin
Selection of slides from presentation "What to do before Project Starts?".
Describes the importance and the process of running the very first stage of the new product development project - Problem Definition.
Similar to MANAGING THE INNOVATION PORTFOLIO AND PROJECTS SL DECK v5 SLIDESHARE VERSION (20)
2. INTRODUCTION
PART 1: INITIATING NEW-STREAM INNOVATION
PROJECTS
PART 2: MANAGING & EVALUATING INDIVIDUAL
INNOVATION IDEAS THROUGH THE PIPELINE P.107
PART 3: THE PORTFOLIO OF INNOVATION
STRATEGIES 2
3. PART 1: INITIATING NEW-STREAM INNOVATION
PROJECTS
New Product Development (henceforth “NPD”) -3 parts p.98
• Do the right project: The funneling process p. 99
• Do the project right: Methodology flowchart p. 100
• Detailed description of the methodology for simulation
of the fuzzy front end stage p.101
3
4. PART 2: MANAGING AND EVALUATING INDIVIDUAL
INNOVATION IDEAS THROUGH THE PIPELINE P.107
Part 2A: Use Project Management Philosophy, Tools,
And Techniques p. 108
Part 2B: 8 Tests To Identify “High Potential” Ideas For
Innovation Investment p109
4
5. PART 3: THE PORTFOLIO OF INNOVATION
STRATEGIES
Criteria and tools for selecting projects for company’s
innovation portfolio.
Sometimes choose lesser projects per “8 tests” because
they best fill gaps in the firm’s innovation portfolio
5
8. New Product Development (NPD) – The “Fuzzy
Front End” – 3 Parts p.98
1. Do the right project: The funneling process (selection) p.
99
2. Do the project right: Methodology flowchart (execution -
flowchart) p.100
3. Detailed description of methodology for simulation of the
fuzzy front end stage (execution – steps detailed) p. 101
8
9. Part 1, Section 1. Do the right project: The funneling process
(“fuzzy front end”) p. 99
Source: Katz, 2011,available at http://www.innovationexcellence.com/blog/2011/11/29/
rethinking-the-product-development-funnel
9
10. 1a. Evaluate choice sets by using computer
based modeling p. 100
Computer simulations of the NPD process help reduce
the uncertainty or “fuzz”
For each alternative design (and implied performance
levels, time and resources needed), it can model, (show
us) estimates of various metrics like….
10
11. 1b. For example, shows resource information, like
need vs. availability, for a given “mode” or way of
doing a given step in production process
11
12. 1b. (cont’d): Has resource management information,
ability to add/subtract resources, and see effects of
those changes
12
13. 1c. For example, shows duration of activities,
dependencies – which must happen in sequence
or can occur in parallel
13
14. 1d. Simulation shows cost/benefit tradeoffs
for different “modes”, or for different features
For example:
• Mode choice: “re-use existing parts components”
versus “new development of components”
• Feature choice: heavier car door offers the customer
a feeling of greater higher quality and safety, but at
the expense of fuel economy and price.
14
15. 1e. Computer simulation/modeling improves odds
of success on the fuzzy (uncertain) front end
• Interactively experience effects of any given change or option.
• Thus greatly reduces uncertainty by providing a formal method of
understanding the trade-offs and identifying the “best” solution
• “Best”? For whom?
15
16. Part 1, Section 2. Do the project right: Methodology flowchart p. 100
16
17. Part 1 Section 2a. Do the project right:
Methodology funnel flowchart introduction p. 100
• The fuzzy front end: where we do market research, get validation of
value propositions and product-market fit.
• Well-defined projects take less time and money, operate better.
• We use a well-planned and structured process.
• The above illustration summarizes it. Let’s elaborate on each step.
17
18. Part 1, Section 3: Detailed description of
methodology for simulation of fuzzy front end
stage p.101
• Stage 1: Discover
• Stage 2: Definition
• Stage 3: Design p. 102
• Stage 4: Development
• Stage 5: Delivery
• Example: p.103
Now let’s look at each of these.
18
19. Stage 1: Discover
Develop a program plan:
1. Identify stakeholders’ needs, expectations
2. Define design alternatives that fit the above constraints
3. Allocate project budget
4. Define time-to-market
19
20. Stage 2: Definition
Select the design based on “life-cycle cost/benefit
and risk analysis” i.e. likely to be most profitable
vs. estimated risk.
•The rest are “no go.”
•Assign core team to lead implementation of the
chosen project.
20
21. Stage 3: Design p.102
• Analyze technological and operational modes (options) that best meet
project constraints.
• Core team prepares the project basic data set. Comprised of…
• This design stage yields a more detailed project data set. still very
incomplete, enough details to:
• Evaluate its estimated costs, benefits and risks
• Make an informed Go/No go decision
21
22. Stage 4: Development: Use project data set
from Design Stage to: p.102
• Build alternative project plans that fit project
constraints of the data set.
• Select the “best” one. Define “best.”
• This decision process often involves getting the core
team and key stakeholders together to agree on
details (such as…?)
22
23. Stage 5: Delivery p.102
Project launch
• This structured approach minimizes, but does not
eliminate, the complexity, uncertainties, and risk of
the NPD selection process.
• Maximizes odds of success – of choosing the highest
potential ROI relative to risk.
23
24. Illustration: Defense sector example of parameters
considered in front-end project management p.103
5 projects considered, each evaluated in terms of following
parameters (at top of each column in the following table):
• Cost
• Scope
• Complexity
• Product type
• Number of disciplines needed
• Duration of project
• Risk or Total Risk Level (TRL)
24
25. Sample table of projects evaluated in fuzzy front end process
25
26. Sample table of projects evaluated in fuzzy front end process (cont’d 1)
26
27. Sample table of projects evaluated in fuzzy front end process (cont’d)
27
28. SUMMARY PART 1: INITIATING NEW-STREAM
INNOVATION PROJECTS
New Product Development (NPD) – The Fuzzy Front End p98
1. Do the right project: The funneling process p. 99
2. Do the project right: Methodology flowchart p.100
3. Detailed description of the methodology for simulation
of the fuzzy front end stage p.101
28
29. PART 2: MANAGING AND EVALUATING INDIVIDUAL
INNOVATION IDEAS THROUGH THE PIPELINE p.107
29
30. PART 2: MANAGING AND EVALUATING
INDIVIDUAL INNOVATION IDEAS THROUGH
THE PIPELINE p.107
•Introduction p.p. 107
•2A: Use Project Management Philosophy, Tools, And
Techniques p.108
•2B: 8 Tests To Identify “High Potential” Ideas For
Innovation Investment p.109
30
31. Part 2. Introduction p.p.107-8
Best practices for taking innovation initiatives
from ideation to commercialization.
•2A: Use Project Management Approach p.108
•2B: 8 Tests To Identify “High Potential” Ideas
p.109
31
32. Part 2A. Use Project Management (PM)
Approach: Philosophy, Tools, & Techniques p.p.
108-9
4 key steps to applying PM to innovation:
1. Definition: Define the project
2. Division: Divide project into tasks
3. Sequencing: Plan task sequence
4. Budgeting: Create budget and resource plan
32
33. Step 1: Defining the project p. 108
•Define scope and objectives.
•Identify the consumer and other relevant
stakeholders.
•Clarify resources needed.
33
34. Step 2: Divide or break down project into
tasks p. 108
•Each a manageable task or work package via
formal “work breakdown structure.”
•Each task small enough to handle for those
assigned to it
•Size of parties responsible for task vary with size
of task, project, and organization.
34
35. Step 3: Sequencing - plan task sequence p.p.
108 -9
• Some can be done in parallel others need to be in sequence.
• Choose sequence that best meets time, cost, and quality
constraints. Usually tradeoffs between speed, cost, and
quality or performance.
• Need to find tradeoff that best fits firm’s needs and
priorities, as defined in step 1.
35
36. Step 4 Budgeting: Create budget and resource
plan
• Once tasks defined & scheduled, estimate resources needed
& include them in project budget.
• If purchases from vendors, it’s a straight (price per unit or
hours) x (units or hours needed) calculation.
• If use internal resources like staff or machine time,
calculate cost based on time and internal cost per hour
estimates.
36
38. Part 2B: Identifying “High Potential” ideas for innovation
investment – innovate or die p. 109
• Innovators: For example can innovate via:
• New products, new markets (Apple)
• New work processes s (Dell, Walmart, Amazon,)
• New insights into demand (Formula 1 for budget hotels in Europe)
• “Stagnators”
• Eastman Kodak (photography)
• Sylvania (light bulbs)
• Xerox (copiers and….what else?)
38
40. Part 2B: 8 Tests To Identify “High Potential” Ideas p109
Test 1: Valuable benefits?: Why buy it? p.110
Test 2: Marketing?: Got channel & demand?
Test 3: Scalability?: Mass produce efficiently? Quality? 112
Test 4: Leadership team: Qualified? p. 113
Test 5: Intellectual property control? Rights? p.114
Test 6: Financial return on investment: Good ROI?
Test 7: Corporate social responsibility?
Test 8: Fit with organizational strategy? p. 115
40
41. Test 1: Valuable benefits test: why buy THIS?
THE main test of commercial viability.
How is it superior to competing or substitute solutions?
What is added value vs. the competition?
Value proposition compelling & clear enough to be profitable?
What problem solved, or delight provided, better, cheaper, or more
conveniently, than the competition?
Test: can you articulate the value proposition clearly and succinctly?
41
42. Example 1: Clear, short value proposition template
For the target customer
Who specific needs, requirements, demands, buying criteria
We provide solution name/description
That gives specific business benefits/value to clients
Unlike the competition
Who provide solution, features, functions, benefits
Our company more/better approach, solution, functions, benefits
That offers a better customer experience
42
43. Exercise: Write a clear, short value proposition
using this template
Can you fit your value proposition into this template?
“For ______________ who _______________,
we provide ________________________________
that ________________________________. Unlike other [your
industry, for example, IT services] firms, who
________________________, our company
______________________________
that _______________________________.”
43
44. Test 2: Marketing: channel & demand? p. 111
1. Channels: Can we establish effective supply
chain & distribution channels?
2. Enough demand at profitable price point?
44
45. Test 3: Scalability? Mass produce efficiently? Quality? p.112
Once we move to mass production and distribution:
•Unit costs stay within budget?
•Maintain quality, reliability, customer support?
•Will it function ‘in the field’ under all anticipated
conditions?
45
46. Test 4: Leadership team: qualified? p. 113
1. Individual members have the skills, personality traits,
experience to do their jobs?
2. Does the team as a whole:
a) Have the full set of complementary skills & experience to
lead whole project?
b) Function together as cohesive unit under stress typical to
new product development & launch?
46
48. Test 5: Intellectual property (IP): Control? Rights? p.114
Have control or rights to all relevant IP via one or more
of the following:
1. For IP we created: protect & control rights + access
via :
a) Blocking strategies to prevent others from legally.
b) “Run fast”: simply plan on innovating faster and
staying ahead of competition. (cont’d next slide)
48
49. Test 5: Intellectual property (IP) p.114 (cont’d)
1. For IP we created: protect & control rights + access via
(cont’d):
c) Clear, documented efforts to hide the IP as a “trade
secret.”
d) Form joint ventures (JVs) with other entities to share IP.
2. For IP we don’t control, license or purchase relevant IP
rights for relevant jurisdictions (where will sell it)
49
50. Test 5: IP(cont’d) – consequences of failure
can be DIRE!
Long, expensive legal battles, like Apple vs
Samsung. Each has billion dollar annual IP
budget.
An IP dispute can kill a small company by
draining needed resources (time, money) or
scaring off potential investors.
50
53. Test 6: Good ROI?
Minimum ROI required?: For-profit enterprises
usually require a minimum return on investment
(ROI) for a given level of risk.
Consider Risk Premium: The higher the risk, the
higher the expected ROI to justify the investment.
53
55. Test 7: Social responsibility: environmental, social
& community outcomes OK? p. 115
1. Environmental: impact is neutral or positive.
2. Social & community: If material threat of vocal
resistance from groups hurt by the project, consider
steps to minimize/eliminate threat.
3. Related issues: legal compliance, reputation, “5 P’s”
people planet, public probity, and profit outcomes.
55
56. Test 8: Fit with organizational strategy – Introduction
p. 115
“In-house” commercialization of valuable IP isn’t always the best option.
Reasons to sell, license, or share technology (via JV) include:
1. Lack internal resources/capabilities: Lack funds, channels, expertise.
2. Lack strategic fit: if invention is unrelated to the core business, in-house
commercialization risks diluting or losing focus on existing mainstream
business lines.
56
57. Test 8: Fit with organizational strategy - Bank Example (1) p. 115
A large bank produced a certain software innovation that service and had
potential well beyond that bank’s applications and industry.
Two basic options:
1. retain the IP and:
a.Keep exclusive use as a trade secret, to create a competitive advantage
b.commercialize it internally, sell as a product/service, as a separate profit
center
2. Sell or license it to a third party for development and distribution
57
58. Test 8: Fit with organizational strategy - Bank
Example (2): Cost/benefit vs. strategic
considerations p. 115
Cost/benefit per 8 tests: A first consideration - how can we best
create revenue and profit from it? How ensure it passes these 8
tests?
Overall business strategy concerns: However, there are multiple
strategic issues that are likely to be at least as important.
Strategic questions include….
58
59. Test 8: Fit with organizational strategy – Bank Example (3) List
of strategic considerations (p. 116)
1. Impact on long-term competitive advantage in existing banking markets?
2. Dilution risk & how manage it? Commercialize in house vs. sell/lease/JV?
3. How will existing customers react to our decision?
4. How will it impact our reputation?
5. What are the strategic risks and returns?
6. If 3rd party commercializes it, can we control distribution to deny access to our
direct competitors?
59
60. Test 8: Fit with organizational strategy - Bank
Example (4) Their decision (p. 117)
Avoided dilution risk: spun off the software to a 3rd party IT business
capable of marketing it, under its own brand and license.
Accepted risk of losing potential long term new revenue stream and
competitive advantage. Denying access to competitors impossible.
The bank negotiated a three-year lead time before buyer could sell the
software to competitors.
60
61. Test 8: Fit with organizational strategy - Nokia case (p. 117)
Strategic principles, such as retaining focus, don’t always apply.
Nokia developed new mobile phone technology while main business was
timber / forestry.
Mobile phones & timber not good strategic fit. But Nokia’s shareholders gained
a decade of great wealth creation.
Only in retrospect is it clear Nokia decided correctly. Mobile phone opportunity
was vast, & Nokia’s internal capabilities proved capable. Thus the opportunity
justified the dilution risk.
61
62. Using these 8 tests p. 117
These 8 tests are filters for selecting projects with best cost/benefit
relative to risk of underperformance or failure.
Apply them throughout the NPD process, not just at the earlier stages
of the fuzzy front end. Indeed, as project advances, have more
information and evidence, so can apply the tests more accurately.
They apply to organizations of all sizes: albeit in different ways. For
example, test complexity typically grows with size of the company.
62
63. PART 3: THE PORTFOLIO OF INNOVATION
STRATEGIES
63
64. PART 3: THE PORTFOLIO OF INNOVATION
STRATEGIES Introduction - 1 p.p. 119-20
Evaluate projects not only by their individual merits per the 8
tests, but also by how well they fit with the firm’s portfolio of
ongoing innovation projects.
If the IP portfolio is weak in filling certain company needs,
then projects that DO meet those needs become more
desirable, and might be chosen over others with higher overall
scores in the “8 tests.”
64
65. PART 3: THE PORTFOLIO OF INNOVATION
STRATEGIES Introduction - 2 p. 120
Just like a football team needs 11 players with different skills at
different positions, so too the IP portfolio needs projects that fill
different company needs.
Thus at times, a team might choose a lesser player over a better one, if
that player best fills a certain skill gap on the field.
Similarly, an organization’s “Go/No go” decision might depend more on
what gaps it needs to fill than on which project ranks highest in overall
individual merit per the “8 tests.”
65
66. Example: The need for steady earnings
Organizations have many goals, like long-term survival & competitiveness, and
meeting various compliance and performance measures.
For example, companies prefer steady earnings, ideally steadily rising earnings.
Why?
Investors hate risk. They interpret steady performance to imply lower risk.
They’ll pay more for shares in these lower risk businesses, and pay their
managers better.
Thus (all else being equal) firms prefer steady over volatile earnings and other
measures of financial performance.
66
67. Example (cont’d): How the need for steady
earnings influences “Go/No Go” decisions
One way firms try to keep earnings steady is by timing new
products and services launches, and their implied earnings
streams.
Thus a lower ROI project might be approved over higher
yielders if it is the one most likely to produce a given earnings
stream when needed.
67
68. Example 1: A typical new product NPV
probability distribution
68
69. Example 1: Re-evaluating a project’s estimated NPV
throughout the NPD process
Throughout the NPD process, we repeatedly apply the 8 tests to re-evaluate
project viability and its probable net present value (NPV).
During the development phase of each project, its NPV probability distribution
would shift based on new information. For example:
• solving a technical problem might increase estimated NPV, thus shifting the
NPV probability distribution to the right
• doing some market research would likely move the distribution to the
left or right, depending on whether the research indicated a higher or
lower chance of success
69
70. Example 1: Re-evaluating a project’s estimated
NPV throughout the NPD process (cont’d)
So for each new innovation initiative we can formulate a dynamic
approach to probabilistic value creation on a project-by-project basis.
The next illustration adds timing estimates of that revenue stream, and for
an entire portfolio of innovations.
Thus it illustrates how firms would be identify projects most likely to
produce a given earnings stream when needed to keep revenues steady,
and ideally, steadily rising.
70
71. Example 2: NPV probability and timing estimates
for each project in an entire innovation portfolio
71
72. Example 2: Estimating probable value AND its
timing for each project in an innovation portfolio
Here’s another approach to measuring and managing the portfolio of
innovations: showing both estimated project value AND its timing.
Expected value of success = (a single probability of success estimate) x
(estimated value created upon success)
Value = revenue, or profit estimates (or both).
This approach allows firms to identify and select projects that will
contribute value when needed to keep earnings steady and/or rising.
72
73. Example 2: Explanation & comments
Outer circle size shows project profitability, the inner circle showing
probability weighted against expected profit
Horizontal axis shows timing of first revenue expectation (launch date).
Vertical axis shows the divisional split of these products or another
categorization.
Illustration 2 communicates a picture of both:
• Potential and likely value of each project
• timing of that value – allowing selection based on value timing needs
73
74. Summary Part 3: Portfolio of Innovation Strategies
Evaluate projects not just on their individual merits, but also on how well
they fit with the firm’s overall goals.
For example, a firm might select a project ahead of others that score higher
on the 8 tests because it:
• Delivers a given value stream when needed to keep certain financial
metrics steady or steadily rising
• Provides diversification into a certain product category or emerging
technology in which the firm wants a presence
74
76. PART 1: INITIATING NEW-STREAM
INNOVATION PROJECTS p.98
New Product Development p.98
• Do the right project: The funneling process p. 99
• Do the project right: Methodology flowchart p.100
• Detailed description of the methodology for simulation of the fuzzy front end
stage p.101
• Stage 1: Discover
• Stage 2: Definition
• Stage 3: Design p.102
• Stage 4: Development
• Stage 5: Delivery
76
77. PART 2: MANAGING AND EVALUATING INDIVIDUAL
INNOVATION IDEAS THROUGH THE PIPELINE p.107
2A: Use Project Management Philosophy, Tools, And
Techniques p. 108
4 key steps to applying project management to innovation
•Definition: Define the project
•Division: Divide or break down project into steps
•Sequencing: Plan sequence of tasks
•Budgeting: Create budget and resource plan
77
78. PART 2: MANAGING AND EVALUATING INDIVIDUAL
INNOVATION IDEAS THROUGH THE PIPELINE p.107 (cont’d)
2B: 8 Tests To Identify “High Potential” Ideas For Innovation
Investment p109
• Test 1: Valuable benefits test / valuable benefits? p. 110
• Test 2: Marketing test: Got channel and demand? p. 111
• Test 3: Scale up/ Scalable? p. 112
• Test 4: Leadership team p. 113
• Test 5: Intellectual property p. 114
• Test 6: Financial return on investment / ROI
• Test 7: Corporate social responsibility
• Test 8: Fit with organizational strategy p. 115
78
79. PART 3: THE PORTFOLIO OF INNOVATION
STRATEGIES
Evaluate projects not just on their individual merits, but also
on how well they fit with the firm’s overall goals.
Projects that might have lower overall scores on the 8 tests in
Part 2 might still merit selection if they fill a gap or weakness
in the innovation portfolio’s ability to meet those goals.
79
82. Case Study: Innovation the Lego way p. 105
Lego goes from near bankruptcy to financial health, robust growth.
How? By building capability for systematic innovation that produces wide
range of successful new products &product lines.
“Executive Governance Group” means innovation culture from the top down,
lead by senior management
Lego divided operations into 8 areas, seeks to drive innovation in all, thus
fuel continued growth.
82
83. TOTAL INNOVATION p. 106 (Nagil & Tuff, 2012)
For every project portfolio, allocate a certain proportion of projects &
resources to these types of products and innovation levels:
• Core: incremental changes to existing offerings (Mercedes Benz
“AMG” or VW “GTI,” sportier versions of existing models)
• Adjacent: expanding into related products, such as moving along the
value chain (e.g. from Apple products to Apple stores).
• Transformational: innovating to create new products for new markets
(Sony Walkman, or Tesla’s high-performance pure electric vehicle)
83
84. POSITIONS IN MARKETS AND PORTFOLIOS: TACTICS TO
POSITION INNOVATIONS p. 107 Schmidt and Rhee (2014)
• A low-end approach: if performance is weak, lower price point to draw price-
conscious consumer (Formula 1 hotels, Air Asia).
• A high-end approach: if proven high performance, high price (Porsche Cayenne)
• A niche-features approach: if has specialized benefits highly valued by small market
segment, high price if they’re affluent (memorabilia)
• Other examples: new-attributes high-end, radical innovation, etc.
• Choose one, or a portfolio of approaches that mixes positioning and price points.
84
85. VALUE CREATION THROUGH INNOVATION p. 110
Kim & Mauborgne, 2004
For some firms, their innovations themselves are their unique value
added that differentiates them from competitors. For example:
• Formula 1 hotels’ innovation: Eliminate or minimize what customers
don’t value, excel in the real value drivers (bed quality, room
quietness, hygiene), cut cost significantly.
• Other examples: Ikea (beautiful cheap furniture, good service &
cheap delivery), Air Asia, etc.
85
86. CASE STUDY: NEW ZEALAND NATURAL: MARKET-DRIVEN
ICE-CREAM INNOVATION p. 111
Struggling ice cream chain becomes successful via innovation.
Key insight & innovation: taste preferences vary across regions ,
depending on culture, diet, so match flavors to local tastes.
• Chinese eat few dairy products, so they prefer less sweet flavors, like
green tea flavor, which masks a strong dairy presence
• In contrast, US consumers eat more dairy products and sweets, like
‘cookies and cream’ flavor.
86
87. WORLD’S BEST INNOVATION PRACTICES? P&G –
“AGILE GIANT” p. 113 Brown & Anthony, 2011
• Focus on what consumers want: make it simpler, more convenient, cheaper.
• Strategic portfolio mindset: disciplined active measuring & managing projects, ‘by
the numbers’ & strategically (contribution to overall P&G needs/priorities).
• Trial & error
• Big bets based only after successful small bets provide validation
• Invests in resources needed to succeed + education, interdisciplinary idea exchange
87
88. RADICAL AND INCREMENTAL INNOVATION p. 117
Treacy, 2004
Innovation portfolios need to strike a balance between the proportion of radical
and incremental innovations.
Incremental innovations help maintain revenues, market share, and customer
satisfaction while the next disruptive innovation remains under development.
Failing to invest in higher risk radical innovations carries its own dangers: risk of
missing the next technology that could threaten your core business, or of missing
the next chance for outsized value creation and growth.
88
89. MATCH THE APPROACH TO THE MARKET DEVELOPMENT
p. 118 Moore, 2004
Overview:
Moore categorizes innovations into 7 distinct types or stages
He asserts that:
Specific types of innovations tend to work best in at certain stages of a
market’s development or maturity
Therefore your innovation strategy should be to first understand what
stage of development your market has reached, then focus resources
on the kinds of innovation that best suit that kind of market.
Now look at details:….
89
90. MATCH THE APPROACH TO THE MARKET DEVELOPMENT
(cont’d 1): 7 Types Innovation p. 118 Moore, 2004
1. Disruptive: where new markets are created, can grow fast and furiously (social media &
Facebook)
2. Application innovation: existing models or technology applied to new industries (sharing
business models such as Uber& Airbnb use existing technology applied to taxi and lodgings)
3. Product innovation: incremental innovation to existing products (most Apple products)
4. Process innovation: innovations in supply chain, distribution channels (Dell, Walmart).
5. Incremental refinements to existing offerings: (software upgrades)
6. Marketing innovation: (Amazon customized emailing, EBay online auctions
7. Business model innovation: (Amazon’s shaping cloud computing or Apple’s shift into online
music supply and retail bricks-and-mortar Apple stores.
90
91. MATCH THE APPROACH TO THE MARKET DEVELOPMENT
(cont’d 2): Market Maturity Stages p. 118 Moore, 2004
1. Early stage: new market, rapid growth as demand spreads to general
population (the bottom and rapidly rising middle of the “S” curve
2. Middle Stage: achieve mainstream penetration, upper half of steep part of
“S” curve. Demand growing but so is competition.
3. Mature stage: hitting upper, flattening part of “S” curve
91
92. MATCH THE APPROACH TO THE MARKET
DEVELOPMENT (cont’d 3): p. 118 Moore, 2004
• Innovation types 1-2 most effective in early stage
markets
• Types 3-4 best fit for middle stage markets
• Types 5-7 for late stage
92