Innovation Benefits Realization for Industrial Research (Part-5)

Technology Innovation Management
Framework for Industrial Research
Part-5
Dr. Iain Sanders

January 2005

WHAT RESOURCES CAN HELP:
PRODUCTS DELIVERING THESE FEATURES
Platform 1:
(Stages II, Part 5)

Integrating Technology Innovation with Business Function – Part I: Laying the Foundation

PLATFORM 1: II (5 - Example)

Introduction to Goldfire Innovator

6

Goldfire Innovator Across The Enterprise

 Intellectual Property (IP) and Technology
Strategy Planning
 Product Engineering and R&D
 Process Engineering & Production Control

GOLDFIRE INNOVATOR™

Strategic
Product & Research Production &
Engineering
Technology & Design Manufacturing
Planning

PRODUCT LIFECYCLE MANAGEMENT PROCESS

7

Technology Planning and Strategic IP

Strategic
Engineering
Planning

• Understand Corporate IP assets & competencies
Innovation • Understand competitive IP assets & activities
Landscape
• Build strategy with awareness of where technology
has been and where it will likely go;
Technology Evolution Analysis
Capture
& Share • Find new ideas leading to fresh markets
Innovation
• Identify strategy to gain freedom to operate;
Market Barrier Design Work-around
Strategic IP
• Devise defensive IP strategies;
Management
Vulnerability Assessment

8

Product R&D and Engineering

Strategic
Engineering
Planning

• Strategic innovation roadmap planning
Problem Research Solution
Definition Validation
• Increase quantity & quality of idea generation
• Focus R&D investment for maximum ROI
Strategic Options Strategic Concepts
Solution • Drive break-through new-market innovations
Generation
• Drive break-away product renovations
• Find solutions faster with Solution Manager

$
TRIZ • Validate conceptual designs upstream
Value Semantic
Engineering Knowledge • Capture valuable corporate IP
Bases
• Provide CAD Engineers design reference

9

Product Engineering and Production Control

Strategic
Engineering
Planning

• Complete closed loop innovation cycle
Digital linking production process back
Manufacturing to product design
• Understand process in multi-dimensional way
ERP • Production process planning
System • Identify and correct process inefficiencies
• Production process optimization
• Design new streamlined processes

10

Introduction to Goldfire Innovator

 Goldfire Innovator:

 Integrates rigorous innovation methodologies,
problem analysis, knowledge sharing, and
research capabilities into a single package

 Increases the efficiency and productivity of
every engineer and innovation specialist

11


 Goldfire Innovator:

 Enables companies to systematically analyze,
conceive, research and validate more cost-
effective, higher-quality products and processes

 Provides access to worldwide patent databases
and the largest library of cross-disciplinary
scientific content
 Semantically-indexed for precise knowledge retrieval

12


 Core components of Goldfire Innovator:

 Optimizer
 Researcher
 Innovation Trend Analysis

 Each of these components leverage IMC’s Innovation
Intelligence, as well corporate and personal knowledge,
providing tightly-integrated analysis and problem solving
capabilities

13


 Optimizer:

 Structures and brings consistency to the
Innovation process through workflows, which
combine specific tasks
 Workflows are specifically designed to guide the
optimization of technical systems

 Enables the definition of custom workflows,
tailored to meet specific innovation process
needs

14


 Researcher:

 Provides unparalleled capabilities in precision
research and analysis by leveraging:
 IMC’s semantic analysis technology, specifically designed
to extract innovation concepts
 IMC’s Innovation Intelligence, which includes:
 Global Patent Collections
 Proprietary database of cross-disciplinary Scientific Effects
 Corporate KBs, Personal KBs, & ―Deep Web‖

15


 Innovation Trend Analysis:

 Provides valuable insights into competitive landscapes
by facilitating analysis of innovation and technology
trends by using industry patents

 Delivers insights critical to position companies for:
 Successful entry into new markets
 Setting new innovation trends
 Driving incremental product / process improvements

16


 Goldfire Innovator tasks include:

 Device Analysis
 Process Analysis
 Root-Cause Analysis

 Goldfire Innovator Solution Manager:
 Framework for managing problems and solutions
throughout the product life-cycle as a persistent document

17


Introduction to Semantic
Technology

18

Goldfire Innovator Semantic Technologies

 Goldfire Innovator enables R&D professionals to:

 Accomplish precise knowledge retrieval
 Capture knowledge from internal and external resources
 Analyze company, inventor, and technology profiles

Let’s examine some common “semantics” terms…

19

―Natural language‖

 An overused, poorly understood term with 2 common meanings
 Natural Language Interface:
A search interface that accepts normal questions and statements.
Practically: Does not require Boolean operators (AND, OR, NOT)

 Natural Language Processing:
Analysis of text using linguistic rules and patterns

Without Natural Language Processing technology,
Natural Language Interfaces are ineffective—primarily
marketing hype

20

―Semantics‖

 Ironically, an ambiguous and frequently misused term
 Definition: The meaning of words, phrases, or sentences
 Semantic analysis is one level higher than syntactic analysis

Semantic claims The reality
Most NL Only extract noun phrases. Relationships between noun and
companies modifiers contain little valuable information.
Uses co-occurrences to find probabilities that words are somehow
Statistical search
related. Do not understand ―meaning‖ — how the words are related.
Simply expand search queries with keyword synonyms. Performs
Synonym search
no statistical or structural text analysis and sacrifices precision.
True semantic analysis: Interprets the semantic roles of phrases
Goldfire
(Subject, Action, Object etc.) and understands how they are related:
Innovator
―Meaning Finger Prints‖.

21

―Conceptual‖ Search

Conceptual search means different things to different companies
Conceptual
The reality
Search claims
Classic dilemma: precision and recall are zero sum. One
Keyword search word returns thousands of results, but numerous words
miss many relevant documents.
Most NL
Only search noun phrases.
companies

Statistical Search is based on probability that a collection of words
search are related to a query.

Goldfire Finds sentences with a specific semantic relationship
Innovator between phrases, parts of speech, etc.

22

Precise Knowledge Retrieval Requires
Semantic Preprocessing of Documents

 Goldfire Innovator Semantic
Technology:

• Why is semantic indexing necessary for
precise knowledge retrieval?
• What information is stored in a semantic
Knowledge Base?
• How do Natural Language queries select
relevant results from semantically-processed
documents?

23

Keywords cannot deliver precise knowledge

Google finds
over a million
results!

24

Innovator’s Semantic Processing Stages

 5 step process for turning unstructured text into searchable semantic
index
 Analysis decomposes sentences into numerous deep semantic
structures including Subject, Action, and Object, and recognizes their
relationships
 Deep semantic structure represents the essential meaning of
sentences

Goldfire Innovator’s
Unique Strengths

25

Step 4: Syntactic Analysis

Innovator models the syntactic structure of entire sentences
“The pump first moves water to a storage tank.”

Most natural language
companies only extract
noun phrases…
View IMC White Paper
for more information

26

Step 5: Semantic Analysis

Innovator extracts deep semantic relationships
Semantic Processing Keyword Processing

Extracts underlying meaning Without full syntactic and semantic
analysis, traditional keyword processing
creates a simple bag of noun phrases -
you never know the relationships
pump moves water
between phrases or parts of speech.
Subject Action Object
? water

to a storage tank pump ?
Prep. Phrase (Indirect Object) storage tank
?
27

Key Concept: ―Noun Phrase‖

 Definition
 Examples: tower; conceptual development; faulty hydraulic fuel pump
 Noun phrase = noun head + modifiers
 ―faulty hydraulic fuel pump‖

 Noun phrase extraction
―Coiled electric wires have been developed for use in electromagnets that
operate at high temperatures.‖

coiled electric wires electromagnets high temperatures

28

Semantic processing captures the ―meaning
fingerprints‖ of sentences and phrases
“Today the user can download 10,000 documents from the Web
by typing the word screen.”

Noun Phrases Topics
today today
user user
Web Web
word screen screen
10,000 documents document
Subject-Action-Object
user - type - word screen
user - download - 10,000 documents

29

Example: What Natural Language queries will find
this sentence in a semantic Knowledge Base?


“Sucrose reduces the viscosity of soap by about
20% up to about 99%.”


sucrose reduce viscosity of soap

30

A range of queries can match the semantic
fingerprint of the example sentence

User query… ―sucrose‖ ―reduce‖ ―viscosity
of soap‖
1) What reduces the viscosity of
? Yes Yes
soap?
2) For what can sucrose be used? Yes ? ?
3) What affects the viscosity of
? ? Yes
soap?
4) What can sucrose reduce? Yes Yes ?
5) Is it known that sucrose reduces
Yes Yes Yes
the viscosity of soap?

31

Innovator matches the fingerprint of your query
to the fingerprints in Knowledge Bases
Process…
NL
(fingerprint)

?
Process… Semantic
Knowledge Base
DOC (fingerprints)
RTF
HTM(L)
PDF
TXT

32

Goldfire Innovator Leverages External,
Internal, and IMC Semantic Fingerprints
Invention Machine Content

Scientific Patent
Effects Collections
Goldfire Innovator
Integrates
Your Prospect’s Content Knowledge for You

Includes
Deep Web

Internet Corporate Personal

33

Goldfire Innovator Semantic Analysis:
Architecture and functionality
Direct answers to questions
PLATFORM 1: II (5 - Example) Insight into your assets
Innovative ideas
New business opportunities

Solutions
Innovation trend analysis applications

Company Competitive Technology Patent
Profile Analysis Analysis Citation

Natural Language Search
Knowledge Bases:
Knowledge Semantically indexed
Concept relationships

Semantic
Indexing

Unstructured
information Personal files,
E-mail, intranet
Patents Scientific
Effects
Deep Web
access
Internet

34

Goldfire Innovator Semantic
Technology Benefits
 Precise search results to deliver solutions
 Convenient Natural language interface
 Applications that make (re-)search more
effective:
Concept extraction, dynamic Topics categorization, synonym generation,
direct link to source, concept highlighting, document summarization
 Flexible tools that do not require tweaking
 Ability to integrate content from diverse
sources
 Robust analysis applications to identify trends
and provide insights
 Unique pre-indexed content to expedite results

35

PLATFORM 1: STAGE III
DESIGN A TECHNOLOGY & INNOVATION
PORTFOLIO

PLATFORM 1: III

III Design a Technology &
Innovation Portfolio
 Aligned to each strategic role should be an identification
of the core technologies or technical expertise areas that
you anticipate will be necessary for developing new
products.
 The first step is to inventory the current technologies that
are still in a research exploration phase. Identify a core
technology as a launching pad for a variety of potential
new products.
 Once core technologies & new technical skill areas have
been identified for innovation efforts, adequate
investments & appropriate technical talent must be
secured.
 The challenge is to accurately identify the technologies
that can best be exploited & provide competitive strength
to the new products under development.
37

OVERVIEW:
ALIGNMENT OF NEEDS WITH CAPABILITIES
Platform 1:
(Stage III)


PLATFORM 1: III

III Rapid Intelligence Processing

BUSINESS TARGET
VALUE TO IRL
INTELLIGENCE PRIORITIES

TECHNOLOGY MANAGEMENT
Finding Ideas from the PLATFORM BUY-IN
Marketplace (Business): OBJECTIVE?

1. Unexpected Successes ASSIGN EXPERTS
2. Unexpected Failures TO ADDRESS NEEDS
3. Unexpected External FRST OUTCOME?
Events
UTILIZE PROBLEM-
4. Process Weaknesses
SOLVING TOOLS
5. Industry / Market
Structure Changes DOES IRL HAVE
6. High-Growth Areas THE EXPERTISE? SET OUTCOMES,
7. Converging Technologies DEADLINES, KPIs
8. Demographic Changes
9. Perception Changes COMMERCIAL
10. New Knowledge PROJECT PLANNING
OPPORTUNITY? AND IMPLEMENTATION

39

PLATFORM 1: III

III Three Dominant Interactions

Intelligence Gathering
& Processing

Rewards & Incentives,
Problem-Solving
Time Allocated &
& Concept Formulation
Managed, to Identify &
Resources
Pursue Opportunities

40

(ACTUAL) TECHNOLOGY PLATFORMS

Platform 1:
(Stage III, Part 1)


PLATFORM 1: III(1)

The Rocket

PLATFORM 1: III(1)

Strategies set out …

 Path to Value Creation
 Underpinning World Class Science
 Credible Financial Stability
 People and Resource Requirements

PLATFORM 1: III(1)

Locating Technology Platforms

Technology
Platform 1

Technology
Platform 2

Technology
Platform 3

Technology
Platform 4

Technology
Platform 5

PLATFORM 1: III(1)

Locating Technology Platforms
 Bioprocessing
 Carbo Chemistry IBT
 Electrotechnology Carbohydrate Chemistry
 Materials Technology Photonics
 Engineering Dynamics Hydrogen and Distributed Energy
 Materials Innovation High Temp Superconductivity
 Applied Maths Smart Materials & Structures
 Comms / Sensors Nanotechnology
 Imaging and Sensing Imaging & Detecting
 MSL Measurement for Industry
 Workshop Assistive Devices
 Optoelectronics
 Automation Systems

PLATFORM 1: III(1)

State of the Platforms - 2004

Carbo
MfI
IBT HTS
Focussed
World
Class I&D
Science
Nano
SMS

HDE
Photonics
AD

Readiness for Value Creation

PLATFORM 1: III(1)

Strategic Emphasis – ―Biotech / Organic
Chemicals‖ Platforms

Carbo

IBT
Focussed
World
Class
Science

Photonics


PLATFORM 1: III(1)

Strategic Emphasis – ―Energy
/ Infrastructure‖ Platforms

Focussed HTS
World
Class
Science
SMS

HDE


PLATFORM 1: III(1)

Strategic Emphasis – the rest

MfI
Focussed
World
Class I&D
Science
Nano

AD


PLATFORM 1: III(1)

Potential Platform Clusters

 Biotech / Organic Chemicals
 Carbo, IBT, Photonics
 GSF, Biopharm
 Energy / Infrastructure
 HTS, Hydrogen & Dist. Energy, (SMS)
 Precision Sensing / Modelling
 Imaging & Detecting, Nano, MfI, (Photonics)
 MfI to play a greater linking role

Technology Product Business Niche Market Driving Force
Funnel Platform Opportunity
Identifying & characterising New drugs PHARMNZ
World Class Science bioactive compounds (molecule ownership) Cancer/specific ailment
IRL will invest in: Cures
Carbohydrate Chemistry Pharmacuetical chemical Niche Manufacturing BIOPHARM/ Health & Ageing
Natural Products Chemistry production of Specialist APIs GLYCOSYN Population
Microbe Fermentation Diagnostic Systems SENSE-MAN Medical Measurement
Catalysts Internal characteristic for humans & Sensing Devices
Toxins detection
Automation & Control Wood Systems SENSE-WOOD Wood Systems Productivity
Algorithm Creation
Microwaves Integrated (perimeter?) PERI-SAFE Perimeter Systems
Computer Vision Omniscient systems Surveillance System (?? - maybe other) Security
PLATFORM 1: III(3)

Acoustic Sensing
Statistics & Math Modeling Integrated (factory?) FACTORY-SAFE Factories
Measurement Surveillance System (?? - maybe other)
Digital Signal Processing
Acoustic Physics Wireless delivery of content Location triggered TOUR INFO Tourism Information
Network Design through integrated systems communication Systems & Advertising
Magnet Design Acoustics for Public SONIC BOOM
HTS Wire Properties Signal Processing Projection Active Acoustic Leisure &
Advanced Composites Systems Entertainment
Stress Analysis Acoustics for Personal SONIC BAM
Inorganic Chemistry Projection
Sol-Gel Chemistry Smart materials Devices/Materials BOUYS INC Custom Made
Metallurgy & boat loadings (specifics tbd) Leisure Marine
Materials Performance Design & custom To order SUPER COIL HTS Coils & Magnets
Electro Chemistry manufacture of HTS coils HTS Coiling
Opto Electronics Customised SUPER POWDER HTS Powder
Ceramics HTS Powder
Polymers
HTS Materials Science HTS Wire SUPER WIRE HTS Wire Environment
Need to partner: & Energy
Disease Physiology
Screening/Testing HTS Coated SUPER GEN2 HTS Coated
Conductors Conductors
Physiology
Fuel Cell
Software Development
Integration Hydrogen DG FRENERGY The Hydrogen
Communication Content Systems & Devices Economy
Electrical Engineering Hydrogen
Hull Loadings Storage Systems
Hydrodynamics
Material Manufacture Materials Plant Life Evaluations METEVAL Asset Management
Motor Design Performance & Software
Hydrogen Generation Synthesis & integration of Molecules, Prototypes ELECTROMATS Electronic Materials Electronic
Device Testing targeted materials & Components Interaction

51

COMMERCIAL OPPORTUNITIES IMPACTING
SEVERAL TECHNOLOGIES, OUTCOMES,
CAPABILITIES ETC.
Platform 1:
(Stage III, Parts 1-3)


PLATFORM 1: III(1-3)

Benefits of Sustainable Design
 Sustainable Design offers businesses opportunity to enhance
environmental performance, while simultaneously improving their
bottom line. Companies that apply Sustainable Design find that it:
 Reduces environmental impact of products/processes.
 Optimizes raw material consumption and energy use.
 Improves waste management/pollution prevention systems.
 Encourages good design and drives innovation.
 Cuts costs.
 Meets user needs/wants by exceeding current expectations for price, performance
and quality.
 Increases product marketability.
 Sustainable Design can also provide a means for establishing a long-
term strategic vision of a company's future products and operations. In
general, Sustainable Design is an enabling force to shape more
sustainable patterns of production and consumption.

53


Increased Innovation

 By incorporating Sustainability into product
design/development, companies gain a fresh
perspective on established practices, resulting in
new ideas and solutions. For example:

 New product/service concepts.
 Alternate production techniques.
 Increased employee participation.
 Greater creativity.

54


Greater ability to compete, add
value, and attract customers
 There is a growing global demand for
environmental quality in products and services.
Incorporating Sustainability into product design
can help companies:

 Meet emerging market demands.
 Differentiate their products in the marketplace.
 Improve their image and win customer attention.
 Attract investment.

55


Become more cost-effective

 Become more cost-effective. Sustainability targets
opportunities for cost-reduction at all stages of a
product’s life and ensures the greatest reduction
in environmental effects/releases per dollar
invested. The results are:

 Reduced production costs.
 Increased product quality.
 Elimination of compliance costs.
 Increased return on environmental investments.

56


Reduce environmental impacts &
liability
 By decreasing a product’s impact on the
environment, Sustainability helps companies:

 Ensure compliance with environmental regulations.
 Reduce uncertainty with respect to future environmental
requirements.
 Improve access to insurance and financing.
 Achieve better community relations.
 Contribute to a better local, regional and global environment.

57


Gain a systems perspective

 Sustainability, which focuses on a product’s life
cycle, helps companies create corporate links
between product design, supply chain
management and sales/marketing, thereby
providing:

 An overall, systemic view of company operations.
 A mechanism for cross-functional teams to continuously
improve products.

58


Internal & External Sustainability
Drivers
 Motivation to implement Sustainability can come
from two different directions.

 Within the company itself—internal drivers.
 From the immediate surroundings—external drivers.

59

Internal Sustainability Drivers
 Need for increased product quality.
 A high level of environmental quality will raise product quality in
terms of functionality, reliability in operation, durability & repairability.
 Image improvement.
 Communicating a product’s environmental quality to users through an environmental ―seal
of quality,‖ such as the Environmental Choice Label or a good report in consumer tests, can
improve a company's image significantly.
 Need to reduce costs.
 Companies can combine Sustainability strategies with financial benefits by:
 Purchasing fewer materials for each of its products
 Using energy and auxiliary materials more efficiently during production.
 Generating less waste and lowering disposal costs.
 Disposing of hazardous waste.
 Need to stimulate innovation.
 Sustainability can lead to radical changes at the product system level—the combination of
product, market and technology. Such innovations can provide entry into new markets.
 Employee motivation.
 Personnel morale generally increases when employees are empowered to help reduce the
environmental impact of the company's products and processes. Sustainability can also
boost employee motivation by improving occupational health and safety.
 A sense of responsibility.
 A growing awareness among all levels of staff that business must play an important role in
working towards sustainable development can provide a strong incentive for implementing
Sustainability.
60


External Sustainability
Drivers

 Government Policies.
 Market demand/competition.
 Trade/industrial organizations.
 Waste charges.
 Environmental requirements for design awards.

61


Government Policies
 Product-oriented environmental policy is growing rapidly in northern
Europe, the United States and Japan. Some examples and trends:
 Legislation on ―extended producer responsibility‖ or ―take-back obligation.‖
Germany has introduced a take-back obligation for goods such as television sets,
computers and cars. The U.S. Environmental Protection Agency requires
discharge disclosures for certain types of generators.
 Introduction of eco-labelling programs for labelling products or product groups.
 Requirement to provide environmental information on products and processes,
requiring business to pursue more pro-active environmental communication
policies.
 Development of industrial subsidy programmes to stimulate Sustainability activities
and encourage companies to carry out research into potential environmental
improvements.
 Termination of subsides on energy-intensive production methods and energy/raw
material consumption.

62


Market demand/competition
 The needs/wants of suppliers, distributors and end-users are powerful
drivers for environmental improvement. Some examples and trends:
 Requirements by some companies—generally large corporations—for
environmental-safeguarding declarations from suppliers. Some companies are
systematically looking at their entire supply chain and imposing the new
environmental standards or other measures of environmental performance.
 Boycotts or other actions by consumer organizations/environmental groups. For
example, Greenpeace successfully pressured industry to develop GreenFreeze,
an ecologically efficient refrigerant made of propane and butane that can replace
environmentally harmful chlorofluorocarbons (CFCs).
 Environmental requirements incorporated into consumer product testing. If a
product fails to get a high score on these requirements, it will no longer qualify for
the title of ―best buy‖ or ―good choice,‖ no matter what other excellent features it
may possess. Good environmental ratings can increase market share.
 Increased implementation of ―responsible care programs‖ in many industries,
resulting in more companies with experience in cleaner production. In cases
where intense competition exists for a particular product, companies with a good
environmental profile can have an ―edge.‖
63


Trade/industrial organizations

 These organizations often encourage member
companies to take action on environmental
improvement and/or my impose penalties on
companies that do not take required action.
 As well, standardization organizations are expanding all
existing norms and standards to include environmental issues.
The ISO 14 000 series will become the international standard
for certifying environmental management systems. It is
expected that product-related aspects, such as the obligation
to collect and publish environmental data, will be incorporated
in this standard.

64


Waste charges

 Waste-processing charges such as land-fill and
incineration costs are likely to increase, based on
the principle of ―polluter pays.‖ The prevention of
waste and emissions, re-use and recycling will
consequently become more economic.

65


Environmental requirements for
design awards
 Several respected design competitions have now stipulated
that contestants must provide specific environmental
information on their products.
 One example is the German Industry Forum (IF) Design
Award, affiliated with the Hannover Messe, which has a five-
year plan to obtain environmental information on aspects
such as packaging, materials used, re-usability and
warranties. Other international design competitions now
pro-active with regard to the environment are:
 IDEA award in the United States.
 G-Mark award in Japan.
 Form Finlandia award by Nestle.
 Excellent Swedish Form by the Swedish Design Council.
 Brown Competition in Germany.
 ION award in the Netherlands.
66


Sustainability & Product Lifecycle
 With the global market is undergoing continuous and rapid
change, you company’s ability to innovate and be flexible will be
crucial to its profitability.

 The Sustainability Strategies can play a significant role in
product innovation by:

 Providing new criteria for evaluating design such as choices for materials,
production techniques, finishing technologies, and packaging methods.
The new criteria can often lead to innovative product or service solutions.

 Considering the entire product life cycle—a process which can stimulate
partnerships with suppliers/distributors/recyclers, open up new market
areas, and increase product quality.

67


Sustainability & Product Lifecycle
 Products impact the environment at all stages of the product life cycle.
Key environmental factors include:
 energy supply.
 raw materials acquisition.
 component/product manufacturing.
 transportation and distribution.
 product use.
 end-of-life product disposal.
 Sustainability allows you to systematically evaluate a product and set
continuous improvement goals for the entire product life cycle. This life
cycle generally has five phases:
 design.
 production.
 distribution.
 product use.
 end-of-life.
68


Sustainable Design & Sustainable
Development
 Sustainability is designed to help companies
adopt environmental practices that will lead to a
more sustainable and healthier society. Therefore,
Sustainable Design both supports, and works
within, the context of other environmental
initiatives.

 Sustainable Development
 Industrial Ecology
 Pollution Prevention (PP)
 Environmental Management Systems (EMS)
 Occupational Health and Safety (OH&S)

69

DEFINING THE DEVELOPMENT PROCESS

Platform 2:
(Stages IV-V)


PLATFORM 2: STAGE IV
STAGED DEVELOPMENT PROCESS

PLATFORM 2: IV

IV Design a Staged
Development Process
 Purpose
1. Provide a logical approach for systematically creating something
new
2. Enable decision & approval points to be integrated into the process
after each stage
3. Offer a way to manage this process by tracking the number of new
concepts under development at any one time in each stage
 Questions
1. What might we offer?
2. Can we make it work?
3. What results can we expect?
4. Are we on track & ready to go?
5. How are we doing & what have we learned?
 9 Stages
72

PLATFORM 2: IV (1-3)

The 9 Stages of the Development
Process
1. CONSUMER PROBLEMS & NEEDS EXPLORATION
 Conduct qualitative research with consumers to explore & identify their gripes,
complaints, hassles, & problems that they experience in a given product category,
activity, behaviour, or function. These problem areas provide a focus for idea
generation
2. PROBLEM SOLVING & IDEA GENERATION
 Generate new solutions & creative approaches that address the identified consumer
problems. An idea is a description of a product that details what a product does &
lists the key benefits that will be provided to consumers
<1ST FILTER: IDEA SCREENS> Selecting High-Potential Ideas
3. CONCEPT DEVELOPMENT
 Take screened ideas & develop them into "three-dimensional" descriptions of a
product. A concept should describe the product features & attributes, its intended
use, & its primary benefits to be perceived by consumers. It outlines the core
technologies that will be used & states general technical feasibility. It addresses how
the product might be positioned against competition & defines who the primary
purchaser will be
73


Process
4. BUSINESS ANALYSIS
 Formulate a market & competitive assessment that projects the potential revenue size
& attractiveness of the new product concept. Develop a rough, three-year pro forma
that estimates future financial performance
<2ND FILTER: CONCEPT SCREENS> Selecting High-Impact Concepts
5. PROTOTYPE DEVELOPMENT
 Complete development of the product & run product-performance & consumer-
acceptance tests
6. PLANT SCALE-UP
 Determine roll-out equipment needs & manufacture the product in large enough
quantities to identify "bugs" & problems. Run additional product-performance &
quality tests
7. MARKET TESTING
 Launch the product into select test markets to gauge potential performance & educate
target buyers

74


Process
<3RD FILTER: TESTED PRODUCT SCREENS> Optimizing the New
Product Offering
8. COMMERCIALIZATION
 Introduce the product & sell it to the trade. Initiate awareness building & trial
stimulation programs to reach the targeted consumer base
9. POST-LAUNCH CHECK-UP
 Monitor performance of the new product at six & twelve months after launch & evaluate
potential changes or improvements to be made

75

PLATFORM 2: IV

1st, 2nd & 3rd Filter Screen
Components
 Strategic Screens
 Fit with Strategic Objectives
 Exploits Internal Strengths
 Source of Competitive Advantage
 Consumer Screens
 Need intensity
 Uniqueness / Differentiation
 Financial Screens
 Size of Opportunity
 Impact on Existing Business
 Return Potential
76

PLATFORM 2: STAGE V
INNOVATION PROJECT MANAGEMENT

DEVELOP BUSINESS PLAN

Platform 2:
(Stages V, Part 1)


Innovation Benefits Realization for Industrial Research (Part-5)

Recommended

Recommended

More Related Content

What's hot

What's hot (6)

Viewers also liked

Viewers also liked (18)

Similar to Innovation Benefits Realization for Industrial Research (Part-5)

Similar to Innovation Benefits Realization for Industrial Research (Part-5) (20)

More from Iain Sanders

More from Iain Sanders (20)

Recently uploaded

Recently uploaded (20)

Innovation Benefits Realization for Industrial Research (Part-5)