Innovation Project Management: Methods, Case Studies, and Tools for Managing Innovation Projects

566 Pages·2019·8.398 MB·English

by  Harold Kerzner

INNOVATION PROJECT
MANAGEMENT
I N N OVAT I O N
P RO J E C T
M A N AG E M E N T
Methods, Case Studies, and Tools
for Managing Innovation Projects
HAROLD KERZNER
Cover design: Wiley
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Library of Congress cataloging-in-publication data is available upon request
ISBN: 978-1-119-58729-3
ISBN: 978-1-119-58733-0 (ebk.)
ISBN: 978-1-119-58746-0 (ebk.)
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
To
my wife, Jo Ellyn,
for her patience,
understanding and encouragement
in authoring books
Contents
 Preface xv
1 INTRODUCTION TO INNOVATION PROJECT MANAGEMENT 1
Introduction 1
Definitions for Innovation 2
The Business Need 4
Innovation Literature 7
Project Management Literature 8
Innovation Benchmarking 9
Value: The Missing Link 10
Innovation Targeting 12
Timeline for Innovation Targeting 13
Innovation in Small Companies 14
Seven Critical Dimensions for Scaling Project Management Innovation 14
Implications and Issues for Project Managers and Innovation Personnel 17
2 TYPES OF INNOVATION 19
Introduction 19
Incremental versus Radical Innovation 20
Understanding Innovation Differences 21
Product Development Innovation Categories 21
Closed and Open Innovation 23
Crowdsourcing 26
Co-Creation Innovation 27
Open Innovation in Action: Airbus and Co-creation Partnerships 33
Value (or Value-Driven) Innovation 35
Agile Innovation 36
vii
viii CONTeNTS
Agile Innovation in Action: Deloitte 37
Agile Innovation in Action: Star Alliance 46
Government Innovation 48
Humanitarian/Social Innovation 51
Social Innovation in Action: Hitachi 52
Nontechnical Innovation in Action 54
Other Categories of Innovation 56
Role of the Board of Directors 59
Finding an Innovation Project Sponsor 60
Implications and Issues for Project Managers
and Innovation Personnel 60
3 INNOVATION AND STRATEGIC PLANNING 63
Introduction 63
Role of the Innovation Project Manager in Strategic Planning 64
Role of the Portfolio PMO 64
Types of Strategies 65
Role of Innovation in Strategic Planning 66
Role of Marketing in Strategic Innovation Planning 67
Product Portfolio Analysis 68
Identifying Core Competencies Using SWOT Analysis 74
Innovation Project Management Competency Models
in Action: eli Lilly 77
Marketing’s Involvement with Innovation Project Managers 88
Product Life Cycles 91
Classification of R&D Projects 91
Research versus Development 92
The Research and Development Ratio 93
Offensive versus Defensive Innovation 95
Modeling the R&D Planning Function 96
Priority Setting 99
Contract R&D 101
Nondisclosure Agreements, Secrecy Agreements, and
Confidentiality Agreements 103
Government Influence 103
Sources for Innovation Technology 104
Sources of Ideas 105
Project Selection Issues 107
economic evaluation of Projects 108
Project Readjustments 111
Project Termination 112
Implications and Issues for Project Managers
and Innovation Personnel 113
Contents ix
4 INNOVATION TOOLS AND PROCESSES 115
Introduction 115
New Product Development 116
The Fuzzy Front end 117
Line of Sight 119
Risk Management 119
The Innovation Culture 123
Innovative Cultures and Corporate Leadership 126
Idea Generation 127
Spinoff Innovations 128
Understanding Reward Systems 129
Innovation Leadership in Action: Medtronic 130
IPM Skills Needed 133
Design Thinking 135
Brainstorming 138
Prototypes 141
Creativity and Innovation Fears 143
Innovation Governance 144
Transformational Governance 145
Balanced Scorecard 146
Strategy Maps 147
Innovation Portfolio Management 148
Innovation Sponsorship 151
The Innovation Team 151
Virtual versus Co-located Innovation Teams 152
The Need for PM 2.0 and PM 3.0 153
Implications and Issues for Project Managers and Innovation Personnel 156
5 FROM TRADITIONAL TO INNOVATION PROJECT MANAGEMENT
THINKING 159
Introduction 159
Information Warehouses 160
Innovation Planning Overview 163
Innovation Assumptions 167
Validating the Objectives 169
Life-Cycle Phases 171
Work Breakdown Structure 175
Budgeting 175
Scheduling 176
Scope Change Control 176
Communication 178
Communication Innovation in Action: Arcadis 179
x CONTeNTS
Innovation in Action: NTT Data 187
Solution Innovation in Action: Philips Business Group
Monitoring and Analytics and Therapeutic Care Services 190
Innovation in Action: Dubai Customs and the Accelerated
exploratory Lab 202
Innovation in Action: Merck 207
Innovation in Action: Repsol 210
Staffing Innovation Projects 213
Implications and Issues for Project Managers and Innovation Personnel 217
6 INNOVATION MANAGEMENT SOFTWARE 219
Introduction 219
Origin and Benefits of Innovation Software 220
Software Innovation in Action: Ideascale 222
Software Innovation in Action: Qmarkets 225
Software Innovation in Action: Hype Innovation 230
Software and Open Innovation 241
Implications and Issues for Project Managers
and Innovation Personnel 241
7 VALUE-BASED INNOVATION PROJECT MANAGEMENT METRICS 243
Introduction 243
Value over the Years 245
Value and Leadership 246
Combining Benefits and Value 248
Recognizing the Need for Value Metrics 249
The Need for effective Measurement Techniques 252
Customer/Stakeholder Impact on Value Metrics 257
Customer Value Management Programs 258
The Relationship between Project Management and Value 261
Selecting the Right Metrics 264
The Failure of Traditional Metrics and KPIs 266
The Need for Value Metrics 266
Creating Value Metrics 267
Industry examples of Innovation Value Metrics 273
Alignment to Strategic Business Objectives 275
Metrics for Innovation Governance 277
Innovation Metrics in Action: Innovationlabs 278
The Dark Side of Innovation Metrics 288
establishing a Metrics Management Program 290
Implications and Issues for Project Managers and Innovation Personnel 292
Contents xi
8 BUSINESS MODELS 295
Introduction 295
From Project Manager to Designer 297
Business Models and Value 298
Business Model Characteristics 299
Strategic Partnerships 300
Business Intelligence 300
Skills for the Business Model Innovator 301
Business Model enhancements 303
Types of Business Models 305
Business Models and Strategic Alliances 308
Identifying Business Model Threats 308
Business Model Failure 310
Business Models and Lawsuits 310
Implications and Issues for Project Managers and Innovation Personnel 313
9 DISRUPTIVE INNOVATION 315
Introduction 315
early Understanding of Disruption 316
Innovation and the Business Model Disruption 317
Categories of Disruptive Innovations 319
The Dark Side of Disruptive Innovation 321
Using Integrated Product/Project Teams 321
Disruptive Innovation in Action 324
Implications and Issues for Project Managers and Innovation Personnel 326
10 INNOVATION ROADBLOCKS 329
Introduction 329
The Failure of Success 329
One Size Fits All 330
Insufficient Line of Sight 330
Failing to Search for Ideas 331
Sense of Urgency 331
Working with Prima Donnas 332
Lack of Collaboration 332
Politics 332
Project Workloads 332
Intellectual Property Rights 333
Not Understanding the Relationship between Creativity and Innovation 334
Too Many Assumptions 334