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Sources of Ideas
Global Multi Products Chile Key Accounts
Best BuyDiscovery
Phase
Global Multi Products Chile
Integrated Solutions
Harvard University
Wyss Institute
Innovation CommunitiesP&G’s InnovationNet
IBM’s AlphaWorksGoogle Labs
Controlled versus Open Learning
Organizations choose between make, co-create or buy strategies of innovation.
What are the pros and cons of creating innovations in-house versus through an open peer development system?
Innovation Communities: Connecting your company with people outside the organization “whose passions match your problems” (Gary Hamel).
Larry Huston, former VP for Innovation and Knowledge at P&G
“You can’t possess all the science and brilliant minds … In our R&D organization we have 7,500 people in 150 science areas, but there are 1.5 million high-quality people outside P&G. It doesn’t take a genius to figure out that if you can engage the brains of your 7,500, plus the key ones from that 1.5 million, you can build better products.”
The Lone Wizard or the MassesWhat is the contribution of Open Source?
On May 22, 1997, a little-known software programmer from Pennsylvania named Eric Raymond presented a paper at a technology conference in Würzburg, Germany. Titled “The Cathedral and the Bazaar.”
Traditionally, sophisticated programs had always been “built like cathedrals, carefully crafted by individual wizards or small bands of mages working in splendid isolation.”
An open source project, in contrast, was the product of a large and informal community
of volunteers who in aggregate “seemed to resemble a great
babbling bazaar of differing agendas and approaches.”
Raymond coins Linus’s Law, after Linus Torvalds, Linux’s founder and presiding genius.
“Given enough eyeballs, all bugs are shallow.”
The Ignorance of Crowds by Nicholas G. Carr 05/31/07, enews Strategy+Business.
Effective use of peer development systems
EXPERT TEAM
Torvalds’ hierarchy of talented software programmers to help manage the contributions.
IDEA GENERATION
Linus Torvald, founder and presiding genius of Linux
PEER DEVELOPMENT
Public contributions to the refinement of Linux
Sources of Ideas
Global Multi Products Chile Key Accounts
Best BuyDiscovery
Phase
Global Multi Products Chile
Integrated Solutions
Harvard University
Wyss Institute
Innovation CommunitiesP&G’s InnovationNet
IBM’s AlphaWorksGoogle Labs
IDEO
DESIGN INNOVATION
How to design breakthrough inventions: IDEO’s David Kelley
What is the design process?
“Long Tail” of innovation
L. Fleming (2007) “Breakthroughs and the “Long Tail” of Innovation. MIT Sloan Management Review.
Making the tough choices:
“On May 1, HP’s new labs director, Prith Banerjee, plans to unveil a list of 20 to 30 major projects HP Labs will pursue, a dramatic cut from the 150 or so currently on its docket.
Ideas with little hope of payoff will be cut – others will be consolidated.
BW April 28, 2008
Product Life CycleId
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PremarketPhase
MarketPhase
Sales
Profits
IdeaMortalityRate
NegativeProfits(Investment)
Time
Dollars
Ideas
100
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R & D
Projects and Portfolios Project Management
Managing an individual project Managing project resources Achieving project goals
Portfolio Management Managing a group of projects Managing organisational resources Achieving organisational goals
Types of Projects
New CoreProcess
Next GenerationProcess
SingleDept.Upgrade
Tuning& IncrementalUpgrades
NoChange
New CoreProduct
Next GenerationProduct
Addition toFamily
Add-ons andEnhancements
ComponentChanges
No Change
PROCESS
PRODUCT
Next GenerationDevelopmentProjects
Radical
Incremental
(Source: Wheelwright and Clark, 1992)
How many innovation projects does Michelin engage in?
Project Planning A project can represent a large
investment of time, money, and resources
Planning a project effectively can: Maximize contribution to goals Fundamental to the financial
considerations Crucial to scheduling of resources and
the control of progress and costs
Project Scheduling
A schedule is the conversion of a project action plan into an operating timetable
Scheduling of people, equipment, information and their interrelationship
Fundamental basis for Understanding project complexity Monitoring and controlling project activity
and budget Tool for the management of projects.
Project Control
Once operational, control of the project is necessary to: Measure progress Identify deviations Take corrective action (when needed)
Continuous cycles of planning, implementation, and reviewing take place throughout the project lifecycle
Payback
Capital Recurrent Costs Recurrent Revenues
Additional Revenues Cost Avoidance Cost Savings
Payback=(Capital-Costs)/Revenues
Qualitative techniques Fit with organizational goals and objectives Fit with competitive necessity for
sustainability Fit with existing product or service range Fit with available resources Fit with existing competencies Fit with desired future competencies Fit relative to competitor direction Fit relative to risk quotient Fit with other innovation projects, ongoing
or planned
Commercializing New Products Compliance with industry standards Compatibility with existing products Production costs Distribution capability After-sales service Production Plan Market Launch Plan
Feasibility Studies
Marketing Screen Operations Screen Finance Screen Competitor Analysis Price-performance Screening Financial Analysis
Innovation at Procter & Gamble
Jun 23, 2008 An interview with A.G. Lafley,
Chairman and CEO, Procter & Gamble. Innovation is at the core of P&G's business strategy. See how P&G makes innovation an everyday practice in their organization.
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