The document discusses managing the fuzzy front end of new product development projects. It describes the fuzzy front end as the early ideation and concept development stage with high uncertainty. It highlights the importance of the project manager in bringing structure and process to the fuzzy front end to effectively evaluate ideas and make investment commitments. The presentation provides strategies for project managers to create an innovative climate, align ideas with business objectives, and iterate concepts through assessment and stakeholder presentations.

1. Project Management Institute Central Virginia Chapter
Wednesday July 16th, 2003
Ideation to Project Creation
Taming the “Fuzzy Front End”
of
New Product Development
Greg Evans
SheepShank LLC
© 2003 SheepShank LLC

2. NO FUZZY FRONT ENDS
NO NEW PROJECTS
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3. What is the
Fuzzy Front-End ?
How can the Project
Manager be effective ?
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4. Product Life Cycle
Fuzzy Product Revenue
Front-End Development Generation
Idea Program Product Manufacturing
Commitment Availability Discontinue
Technology
Market
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5. Key Words:
Ideation
Invention
Innovation
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6. Ideation
The capacity for
or the act of forming
or entertaining ideas
- Webster’
s
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7. Invention
• New
• Useful
• Not obvious to
someone skilled in
the art
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8. Innovation
“A novel combination of art,
science, or craft employed
to create the goods or
services used by society.”
Innovation Explosion
- James Brian Quinn
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9. US Patent 5,996,127
Issued 1999
“Wearable device
for feeding and
observing birds
and
other flying animals”
www.uspto.gov
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10. Innovation
Invention
with
Positive ($$$)
Economic Impact
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11. Effort / $ Invention Innovation
Ideation
Fuzzy Product Revenue
Front-End Development Generation
Program Product Manufacturing
Idea Discontinue
Commitment Availability
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12. Program Commitment
Deliverables
• Product Specification
• Product Development Plan
• Business Plan
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13. Product Life Cycle
Fuzzy Product Revenue
Front-End Development Generation
Product Manufacturing
Idea Program Discontinue
Availability
Commitment
Decision Criteria ?
• Return on Investment
• Risk
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14. Risk ROI
100%
The Fuzzy Curve
- Kim and Wilemon
Decision
to
Gamble
Return
$0
Investment
0%
Fuzzy Product Revenue
Front-End Development Generation
Idea Program Product Manufacturing
Availability Discontinue
Commitment
© 2003 SheepShank LLC

15. Fuzzy Front End Nightmares
• Making a Bad Investment !
• Rejecting a Good Investment !
• Never Analyzing a Good Idea !
• Never Thinking of a Good Idea !
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16. Typical
Fuzzy Front-End
Business
Project
Ideas
Management
Technology Program
Commitment
Chaos Order
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17. More Effective
Fuzzy Front End
Chaos
s
es
sin
Bu Order
PM
Ideas ROI & Risk
Te
ch
no Program
log Commitment
y
Innovation
© 2003 SheepShank LLC

18. Innovation Drivers
• Business
• Technology
• Ideology
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19. 3 Market Positions
• First Mover
• Fast Follower
• Late Entrant
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20. Technology Innovation Classes
Level 1) Simple Solutions
Level 2) System Solutions Products
Level 3) Inventive Solutions R&D
Level 4) Radical Inventions Research
Level 5) Totally New Phenomena
- James Brian Quinn
© 2003 SheepShank LLC

21. Company Ideology
Strategy
Vision Mission Strategy
Strategy
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22. Business, Technology, & Ideology
Vision Product Strategy
Discontinuous Continuous
First Mover Fast Follower Late Entrant
Level 5
Level 4 RIS
K
Level 3
Level 2
Level 1
Continuous
Product Strategy
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23. ROI = Function { x(1)… x(6) }
x(1) = Market Demand
x(2) = Product Price
x(3) = Product Availability
x(4) = Product Cost
x(5) = Non-Recurring Costs
x(6) = Program Commitment
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24. Typical Negotiation Path
$$$ ROI $$$ Revenue
Product Price Market Demand
Product Availability Product Cost
Non-Recurring Costs Program Commitment
R&D Budget
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25. Better Negotiation Path
$$$ ROI $$$ Revenue
Product Price Market Demand
Product Availability Product Cost
Non-Recurring Costs Program Commitment
R&D Budget
© 2003 SheepShank LLC

26. Innovation & Process
”Insanity is always doing the
same things in the same way
and expecting different results
each time.”
- Woody Allen
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27. Iteration
equals
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28. Iterations
• Ideation
• Assessment
• Presentation
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29. Fuzzy Front End
Success
• Creative Climate
• Vision, Mission, Strategies
• Executive Participation
- PDMA toolbook for NPD
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30. The Effective Fuzzy Front End
Creative
Climate
Chaos Vision
Mission
Strategies
s
es Executive
sin Participation
Bu As Order
se
ss
me
Ideation
nt
PM
Ideas ROI & Risk
on
ntati
se
Te Pre
ch
no Program
log Commitment
y
Innovation
© 2003 SheepShank LLC

31. What Makes a Good Project Manager ?
• Clear vision
• Strong team building skills
• Structure and alignment
• Strong interpersonal skills
• Discipline
• Communication skills
- Deborah Bigelow, PMP
PM Network April 2000
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32. Authority
”Power is nothing
unless you can turn it into
influence.”
- Condoleeza Rice
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33. www.SheepShankLLC.com
info@SheepShankLLC.com
© 2003 SheepShank LLC