Innovation Project Management: Methods, Case Studies, and Tools for Managing Innovation Projects (Hardcover, 2)

Preface xv

1 Introduction to Innovation Project Management 1

Introduction 1

Definitions for Innovation 2

The Business Need 4

Innovation Literature 6

Project Management Literature 7

Innovation Benchmarking 8

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 16

2 Types of Innovation 19

Introduction 19

Continuous Versus Discontinuous Innovation 20

Incremental Versus Radical Innovation 21

Understanding Innovation Differences 22

Incremental Innovation Versus New Product Development 23

Product Development Innovation Categories 23

Closed and Open Innovation 25

Crowdsourcing 27

Co-Creation Innovation 29

Open Innovation in Action: Airbus and Co-creation Partnerships 35

Value (Or Value-Driven) Innovation 37

Agile Innovation 38

Agile Innovation in Action: Deloitte 40

Government Innovation 47

Financial Innovation 50

Healthcare Innovation 51

Brand Innovation 53

Sustainable Innovation 53

Humanitarian/Social Innovation 54

Social Innovation in Action: Hitachi 55

educational Innovation 57

Manufacturing Innovation 58

A Case Study 60

Nontechnical Innovation in Action 60

Other Categories of Innovation 62

Role of the Board of Directors 66

Finding an Innovation Project Sponsor 66

Implications and Issues for Project Managers and Innovation Personnel 67

3 Innovation and Strategic Planning 69

Introduction 69

Role of the Innovation Project Manager in Strategic Planning 70

Role of the Portfolio PMO 70

Business Impact Analysis 71

Innovation Maturity Models 71

Types of Strategies 73

Role of Innovation in Strategic Planning 74

Role of Marketing in Strategic Innovation Planning 75

Product Portfolio Analysis 76

Identifying Core Competencies Using SWOT Analysis 82

Innovation Project Management Competency Models in Action: eli Lilly 84

Marketing’s Involvement with Innovation Project Managers 95

Product Life Cycles 97

Classification of R&D Projects 97

Research Versus Development 98

The Research and Development Ratio 99

Offensive Versus Defensive Innovation 100

Modeling the R&D Planning Function 101

Priority Setting 105

Contract R&D 107

Nondisclosure Agreements, Secrecy Agreements, and Confidentiality Agreements 108

Government Influence 108

Sources for Innovation Technology 109

Sources of Ideas 110

The Project Manager’s Role in Developing Innovation Skills and Ideas in People 112

establishing a Project Selection Criteria 114

Project Selection Issues 115

economic evaluation of Projects 116

Role of the Project Manager in Project Selection 119

Project Selection and Politics 124

Project Readjustments 126

Project Termination 127

Implications and Issues for Project Managers and Innovation Personnel 127

4 Innovation Tools and Processes 129

Introduction 129

New Product Development 130

The Fuzzy Front end 131

Prioritizing Product Features 133

Line of Sight 134

Misalignment Issues 135

Risk Management 137

The Innovation Culture 140

Innovation Functional Units 145

Innovative Cultures and Corporate Leadership 145

Idea Generation 146

Spinoff Innovations 147

Understanding Reward Systems 148

Innovation Leadership in Action: Medtronic 149

IPM Skills Needed 152

Design Thinking 155

Brainstorming 157

Whiteboarding 163

Mind Maps 163

Active Listening 165

Pitching the Innovation 167

Cognitive Biases 167

Prototypes 168

Creativity and Innovation Fears 170

Innovation Governance 170

Corporate Innovation Governance Risks 171

Transformational Governance 174

Balanced Scorecard 175

Strategy Maps 176

Innovation Portfolio Management 177

Innovation Sponsorship 179

The Innovation Team 180

Virtual Versus Co-Located Innovation Teams 181

Artificial Intelligence and IPM 182

The Need for PM 2.0 and PM 3.0 184

Implications and Issues for Project Managers and Innovation Personnel 187

5 From Traditional to Innovation Project Management Thinking 191

Introduction 191

Information Warehouses 193

Innovation Planning Overview 197

Innovation Methodologies 200

Methodology Gates 202

Innovation Assumptions 202

Validating the Objectives 204

Differing Views of the Project 206

Life-Cycle Phases 206

Life-Cycle Costing 210

Work Breakdown Structure 211

Budgeting 212

Scheduling 212

Scope Change Control 213

Technology Readiness Levels 214

Lean Project Management: Kanban 216

Communication 217

enabling Innovation Success in Solution Design and Delivery in Healthcare Business 218

Innovation in Action: Dubai Customs and the Accelerated exploratory Lab 229

Innovation in Action: Merck KGaA, Darmstadt, Germany 234

Innovation in Action: Repsol 237

Staffing Innovation Projects 241

Implications and Issues for Project Managers and Innovation Personnel 243

6 Innovation Management Software 245

Introduction 245

Origin and Benefits of Innovation Software 246

Software Innovation in Action: IdeaScale 248

Software Innovation in Action: Hype Innovation 251

Software and Open Innovation 260

Implications and Issues for Project Managers and Innovation Personnel 261

7 Value-based Innovation Project Management Metrics 263

Introduction 263

Value Over the Years 265

Value and Leadership 266

Combining Benefits and Value 268

Recognizing the Need for Value Metrics 269

The Need for effective Measurement Techniques 271

Measuring Intangible Assets 276

Customer / Stakeholder Impact on Value Metrics 278

Customer Value Management Programs 279

The Relationship between Project Management and Value 282

Creating an Innovation Project Management Baseline 284

Selecting the Right Metrics 286

The Failure of Traditional Metrics and KPIs 288

The Need for Value Metrics 288

Creating Value Metrics 289

Industry examples of Innovation Value Metrics 295

Alignment to Strategic Business Objectives 296

Metrics for Innovation Governance 298

Innovation Metrics in Action: InnovationLabs 299

The Dark Side of Innovation Metrics 309

establishing a Metrics Management Program 310

Implications and Issues for Project Managers and Innovation Personnel 312

8 Business Models 315

Introduction 315

From Project Manager to Designer 317

Business Models and Value 318

Business Model Characteristics 318

Strategic Partnerships 319

Business Intelligence 319

Skills for the Business Model Innovator 320

Business Model enhancements 322

Types of Business Models 324

Business Models and Strategic Alliances 326

Identifying Business Model Threats 327

Business Model Failure 328

Business Models and Lawsuits 328

Implications and Issues for Project Managers and Innovation Personnel 330

9 Disruptive Innovation 333

Introduction 333

early Understanding of Disruption 334

Innovation and the Business Model Disruption 335

Categories of Disruptive Innovations 337

The Dark Side of Disruptive Innovation 338

Using Integrated Product/Project Teams 339

Disruptive Innovation in Action 341

Implications and Issues for Project Managers and Innovation Personnel 342

10 Innovation Roadblocks 345

Introduction 345

The Failure of Success 346

One Size Fits All 346

Insufficient Line of Sight 346

Failing to Search for Ideas 347

Sense of Urgency 347

Working with Prima Donnas 347

Lack of Collaboration 348

Politics 348

Project Workloads 348

Intellectual Property Rights 348

Not Understanding the Relationship between Creativity and Innovation 349

Too Many Assumptions 350

Innovation Funding 350

Cash Flow and Financial Uncertainty 350

Control, Control, and Control 350

Analysis–Paralysis 351

Innovation in Action: Naviair 351

Innovation in Action: Overcoming the Roadblocks 363

11 Defining Innovation Success and Failure 367

Introduction 367

The Business Side of Traditional Project Success 368

Defining Project Success: The early Years 370

Redefining Project Success: Approaching the Twenty-First Century 371

Degrees of Success and Failure 372

Defining Success at the Beginning of the Project 374

The Role of Marketing in Defining Innovation Success 374

The Business Side of Innovation Success 377

Prioritization of the Success Factors 379

Innovation Project Success and Core Competencies 380

Innovation Project Success and Business Models 381

Causes of Innovation Project Failure 381

Identifying the Success and Failure Criteria 384

Post-Failure Success Analysis 385

Sensemaking 386

The Need for New Metrics 387

Learning from Failure 387

The Failure of Success 388

Conclusion 390

Implications and Issues for Project Managers and Innovation Personnel 390

12 Innovation in Action 393

Introduction 393

Innovation in Action: Apple 393

Innovation in Action: Facebook 395

Innovation in Action: IBM 396

Innovation in Action: Texas Instruments 399

Innovation in Action: 3M 401

Innovation in Action: Motorola 403

Innovation Project Management: The Case of KAUST Smart 404

Key Characteristic of KAUST Smart Projects (What makes KAUST Smart Projects Unique) 405

Recent and Ongoing Project examples 408

Innovation in Action: Samsung 410

Agile Innovation in Action: Integrated Computer Solutions, Inc 411

Innovation in Action: COMAU 418

Innovation in Action: Tokio Marine and Nichido Systems 425

Innovation in Action: GeA 427

Innovation Management at GeA – The Strategic Parts 432

Innovation in Action: Wärtsilä energy Solutions 435

Critical Issues 437

13 Case Studies 439

Disney (A): Innovation Project Management Skills at Disney 439

Disney (B): Creating Innovation: Disney’s Haunted Mansion 449

Disney (C): Impact Of Culture On Global Innovation Opportunities 464

Disney (D): The Partnership Side Of Global Business Model Innovation 482

Case Study: Boeing 787 Dreamliner: Managing Innovation Risks with a New Business Model 494

Case Study: The Sydney Australia Opera House 501

Case Study: Ampore Faucet Company: Managing Different Views on Innovation 508

Case Study: The Innovation Sponsors 510

Case Study: The Rise, Fall, and Resurrection of Iridium: When an Innovation Business Model Fails 512

Case Study: Zane Corporation: Selecting an Innovation Framework 540

Case Study: Redstone Inc.: Understanding Innovation Cultures 544

Case Study: The Government Think Tank: The Failure of Crowdsourcing 546

Case Study: Lego: Brand Management Innovation 548

Index 565