Consortium for Corporate Entrepreneurship
    
   
                       
Organizational FEI
 
Wesley J. Howe School of Technology
 
 
  Stevens Institute of Technology
 
  

What is Front End of Innovation ?

Activities that come before the "formal and well structured" New Product Development (NPD) Portion.

We do not use term "Fuzzy Front End" since it implies that the FEI is mysterious, uncontrollable and cannot be managed.

Why Focus on Front End?

 

FEI

NPD

Work

Experimental

Disciplined

Commercializ. date

Unpredictable

Highly certain

Funding

Depends

Budgeted

Revenue Expectation

Great Deal of Speculation

Believable

Activity

Individual or Team

Multi-function 

Measure of Progress

Strengthened Concept

Milestone Achievement

 



Front End of Innovation



New Concept Development


Provides a common language and terminology necessary to optimize the "Front End of Innovation".


1. IDEA GENERATION AND ENRICHMENT

Idea: The most embryonic form of a new product or service. It often consists of a high level view of the envisioned solution needed to solve the problem identified by the opportunity.

What is it?

  • Birth, development and maturation of the opportunity into new ideas
  • Translates the opportunity into specific ideas
  • An evolutionary process where ideas are built upon, torn down, combined, reshaped, modified and upgraded
  • May be formal (i.e. idea banks, brainstorming, etc.) or informal (i.e. an experiment goes awry, unusual request from customer, etc.)
    Most Effective Processes

    Most Effective Processes for Idea Generation and Enrichment

    Methods for Identifying Unarticulated Customer Needs
    Ethnography approaches
    Lead User Methodology
    Early involvement of customer champion
    Discovering the Archetype of your customer


    Business-Technology Interspersing

    Identifying new Technology Solutions
    Increasing linkages both internal and external (Technology Flow)
    Partnering

    An organizational culture that encourages employees to spend "free time" testing and validating theirs own and others' ideas

    A variety of incentives to stimulate ideas

    A web-enabled idea bank with easy access to product or service improvements, including linkages to customers and suppliers

    A formal role for someone to coordinate ideas from generation through assessment

    A mechanism to handle ideas outside (or across) the scope of established business units

    A limited number of simple, measurable goals (or metrics) to track idea generation and enrichment

    Frequent job rotation to encourage knowledge sharing and extensive networking

    Mechanisms for communicating core competencies, core compatibilities and shared technologies broadly throughout the corporation


    Inclusion of people with different cognitive styles on the idea enrichment team



    2. IDEA SELECTION

    What is it?

  • Selection of ideas for allocation of resources
  • Selection by individual from self-generated
    options or a formalized portfolio methodology

    Most Effective Processes for IDEA SELECTION

    -Portfolio methodologies based on multiple factors (not just financial justification) of:


    Technical Success Probability
    Commercial Success Probability
    Reward
    Strategic Fit
    Strategic Leverage
    Use of Anchored Scales


    -Screening methodologies are not used on “breakthrough” projects
    Holy Grail”
    Obvious


    -Formal Idea Selection Process with prompt feedback to the idea submitters
    Enhance methodology by using electronic performance support systems
    Web enable the process


    -Use of “Options Theory” to evaluate projects

     

3. CONCEPT DEFINITION

Concept:
Has a well defined form including both a written and visual description, which includes its primary features and customer benefits combined with a broad understanding of the technology needed.

What is it?

  • Development of a Business Case
  • Assessment of Technology and Market Risks.
  • Determination of Detailed Product Specifications
    (may only apply to incremental products)
  • Possibility of an Overlap with the NPD Process
  • Technology Stage Gate (TSG)
  • Utilized for Managing Technical Uncertainty
  • Depending on Company's Methodology and the
    Level of Technical Complexity, TSG May be
    Entirely within the NCD, Overlapping the NPD,
    or the Link Between the Two.

 







New Concept Development


3. CONCEPT DEFINITION (continued)

  • Most Effective Processes for Concept Definition

    Goal Deliberation Approaches

    Careful Defining of the Project Goals and Outcomes

    Criteria for the Corporation which Describes what an “Attractive” (financials, market growth,
    market size, etc) Should Look Like

    Rapid Evaluation of High Potential Innovations

    RIGOROUS Use of the TSG for High Risk Projects

    Early Involvement of the Customer in Real Product Tests

    Even Before Product is “Completed”, Staff-up High Potential Projects while Still in Front End of Innovation

    Technology Flow Tools Speeds-up Development

    Partnering Outside the areas of Core Competence

    Focusing (in contrast to spreading too thin)

    Alternative Approaches

    Product Champions are needed to move Products Across Valley of Death if
    Adequate Bootlegged Funds are Available

    Product Champions Often Champion the Wrong Project

    Business Executive Champion is Needed for Almost all Projects

    4. OPPORTUNITY IDENTIFICATION

    Opportunity: A business or technology need that a company or individual realizes by
    design or default that they might want to purse to capture competitive advantage,
    respond to a threat, solve a problem or ameliorate a difficulty.

    What is it?

  • Activities and methods that a company uses to identify opportunities to pursue
  • Can be a breakthrough opportunity,a problem or a customer need
  • Will lead to a new offering, new process,new service, new product platform,
    new market thrust or new product
  • Facilitated or unfascilitated pathways

    Most Effective Processes for Opportunity Identification

    Projects typically get started with a trigger (High innovative rents?)
    New Competitor Movement
    Fire in Plant

    CEO initiatives (ex: innovation initiative, fire in plant, lower revenue,
    holy grails, strategic intent, proposal requests)
    Issue: How to create more opportunities for triggers.

    Envisioning the future
    Customer Trend Analysis
    Competitive Intelligence Analysis
    Market Research
    Scenario Planning
    Road maps enable this process


    5. OPPORTUNITY ANALYSIS

    What is it?

  • Accessing the opportunity to confirm that it is worth pursuing
  • Understanding unmet customer needs
  • Competitive intelligence and trend analysis would be used
    extensively
  • Business capability and competency would be assessed
  • Business and scientific sponsorship would be evaluated
  • Despite effort, significant technology and market uncertainty
    will often remain

    Most Effective Processes for Opportunity Analysis

    Envisioning the future
    Customer Trend Analysis
  • Competitive Intelligence Analysis
    Market Research
    Scenario Planning
    Use of same tools in Opportunity Identification but effort is expanded in considerable more detail
    Assignment of a full time specific multi-function team of 3-5 people for large “breakthrough" projects
    Create a charter for the team which “points” them in the right direction

Knowledge Creation

The main goals of Knowledge Creations are:

  • Create new knowlege within the community
  • Connect, aquire, exchange and build new knowlege
  • New science occurs through the process of building upon internal and external knowledge communities.

1. Technology Based COMMUNITIES OF PRACTICES

Goal: Create a real and virtual environment for continuous learning by and for key inventors to provide them with a broad repertoire of both technical and business management techniques for achieving breakthrough Products and Services

Papers on Communities of Practice

  • Knowing in Community: 10 Critical Success Factors in Building Communities of Practice
    by Richard McDermott
  • Knowing is a Human Act: How Information Technology Inspired but cannot Deliver Knowledge Management by Richard McDermott
  • Communities of Practice: The organizational Frontier
    by Etienne C. Wegner and William T. Snyder Birth, development and maturation of the opportunity into new ideas

    2. KNOWLEDGE MAPPING


    Technology maps which define the core capabilities, competencies and gaps of the organization

    Technology Knowledge Strategy should be based on Core Competencies and Capabilities of the Organization
    Core Competencies and capabilities are more enduring than product and market knowledge

    3. Shared FUTURE VISION


    Where will the new products of the future come from?

  • “ Nothing happens until there is a vision”
  • “Genuine energy, enthusiasm and preference occurs, even in the face of setbacks,
    when people understand the vision of the future”
  • “It is a process of continually focusing and refocusing on what one truly wants”


    4. Project Snapshot

    "Collaborative" Project Snapshots

    -LiveLink
    -NetMeeting
    -WebEx
    -E-room

    • Captures the current and past learning of the projects
    • Approaches, insights and outcomes are captured from experiences of:
      -What is working?
      -Has worked?
      -What hasn't?

 

 




Knowledge Creation



5. IT TOOLS - Better Enable Knowledge Creation

Intellectual Property
Aurigin
MapIt
Delphion

Technology Search Engines
Semantic search engines allow one to more quickly
search technology literature
Co-Brain
Ex-Caliber

Co-citation Literature Searching
Method for analyzing vast amounts of literature and
identifying promising new scientific areas based on
relatedness and age of primary citations used.
Vx Insight

Visualization Tools
ClearForest
SpotFire

Inventing Tools
Methods of Problem Solving using IT tools to support the methodology

TRIZ (the Russian acronym for Theory of Inventive Problem Solving)
Tech Optimizer
Ideation International

Mind Mapping
Tech Optimizer
Mind Manger

Intellectual Property Patent Factory
Methods and software for increasing the quality and quantity of patent “real-estate” using existing companies intellectual property and competitors and building higher patent fences

 


Exxon Mobil

Honeywell

Kraft

Ethicon

Becton Dickinson

 

Copyright 2004 Consortium for Corporate Entrepreneurship, Stevens Institute of Tech. All Rights Reserved.

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