Zemen Post Graduate Collage Prepared by Azanaw Tsegaw ID=ZPGC/049/2012 Dessie Amhara EthiopiaAssignment Answer Pasa hee ee) The Seven-step fremework for innovation project management 1. Gap Identification Phase ‘The gap identification process compares where the organization is to where it wants to be, as well 2s where the firm's competitors The gap can be process oriented or product oriented, however, once a gap is identified, the firm needs to address it or face the risk of being at a competitive disadvantage The environmental and internal systems analysis should help the organization identify several potential gaps. However, in managing innovation projects, it is important to ‘remember that there are always more gaps and ideas m 2 firm than there are time and resources to eddress them. ‘Therefore, itis important to separate the gaps into several categories: + Those that must be addressed + Those that should be addressed + Those that it would be nice to address + Those that do not need to be addressed 2. Concept Phase: The second phase in the innovation project framework is the definition of relevant concepts, ‘To prepare the conceptualization of the innovation project, manager: need to: A. State dearly the gap the project is going to address. This statement should include what ‘the problem consists of, the need to find 2 solution, and what the intention of the firm is. B. Gather information about the nature of the innovation to be undertaken and its place in the gap analysis resultsC. Identify comstraints, There are constraints iu the exvironment and in the fim, The gap analysis should help idewtify some ofthe resource and time constraints. However, customer input as well asthe input of other stakeholders should be sought. 1D. Develop alternatives to address the issues idemtfied by the gap analysis. By developing alternatives, manazers can develop a clearer understanding of how to solve the gap. In addition, the process of developing alternatives may give themanagemext other insights into ways to solve the ap, E. Record the project objectives that emerge. If the previous four steps have been done correctly. the objectives fr the project should be clear. The objectives follow logically from the analysis and ley dhe groundwork for defining the project parameter, 3. Definition Phase: The what. when, and who of the definition phase set forth the ask. timing. and team makeup Jor the immovation project. For @ process innovation, the task would be to plan the couversion, the timing would be a time objective with an endpoint wath multiple ‘chackpoints, and the tzam would inclode a project manager and team members te coordimzta the changeover to the new process. The targets ofthe innovation project should emerge from the conceptualization ofthe project Tes also during this sage thatthe organization is moving bbeyard looking at what needs to be dane and identifying what will be done. Therefore, the relevant gap analysis, the renults that have spured the development of a project team to undertake an innovative activity, and the list of potential alternatives should be brought together to begin the projact records. 4, Desig Phave: During the design phase, the fiem begins to decide what it azeds to meet the strategic goals, who wll be responsible for the project, and how the process of innovation wil take place The definition phase has established the targets and standards forthe project. The ‘rst question inthe design phase concerns feasibiliry- Camthe project be dome? Ifso, the dasizn phase can begin In design, itis impartant to bagin with 2 concept of the whole and then dasien ‘components to ft imto the whole The definition phase should give the inmovation teem the ‘concept ofthe whole, andthe desizn phase show Sl inthe parts, The individual or maividaals in the design phase need to possess three talents: A. The ability to recognize furure trends while comtibuting to the designs for their firm B, The ability to recognize the potential commercial significance of “sha” moments in ‘het onm RAD settings 2s ell as im other interactions in their IfeC, The ability to imegrate the commercial and technical worlds. This requires knowledge of whats possible and what is wanted. The how of dasigm is usually carried out on two levels. The first evel is technical and involves the engineers and operations personnel ‘This level involves the actual design of the product or process innovation. The second how is at the project management level and is concemed with the budgeting and scheduling Budgets are developed and details desbed out at the dasizn ofthe product or process emarzes 5. Development Phase: The development phase begins the actual effom to implement the imnovation. Until now, laying the groundwork has beem the focus The abstract phase is ‘completed, and now the innovation team needs to enact the frst trial run of the product or process. The mare planning and thought that go into destam, the fewer problems should arise during this phase ‘The steps in development are: A. Define a method for building the product or implementing the process. A prototype should be built and tested against the design requirements, 8 Evaluate the firm s resources for best practice capabilities, This requives continuous evaluation and iteretion ofthe dasien The goal is to muasimive the firma s ability to produce a desirable deliverable (product or process) C. Develop a list of materisks needed and a design for routing those materials to determine fhe actual cost, Until a protorype is built, tated, redesigned, and rebuilt that meets acceptable criteria, the cost: are estimated, Only witen there is a clear set of inputs should the wendor-supply chain be determined, and final casts calculated 0. Determine the ability of the firm to introduce the innovation slong with gl).pf the other products and processes in the firm, Arethere synergies with other products and processes? ‘Will the innovation take away resources neaded in other parts of the frm? Ifthe capacity to ‘nmplament the innovation is insufficient, than capital resources need to be commited or the product mix neads to be changed, Newnass in one area of the firm can affect aauuber of ober areas, 6. Application Phase: The application phase concerns the installing/releasing the new process ‘or products for the whole organization. This isthe da of the innovation project process. [fit isa process inmovation, then the istallotion of the process should be rendy fr all pats of the ‘rgnization that will be making the change. If the innovation isa new product then the prodct (and the associated actvitios) is ready for full production 7. Mastering Project Innovation . Focus en what marers: Invest in innovation that delivers transformation: Bild and enable your ecosystem: Build and enable your ecosystem Develop your people and capallit ‘Think like an extreprenesr ee strucnre tome creativiny: . People build culture and deliver innovation Bring imovative concepts to life quickly: 8. Leading innovation model or generation answer Innovation Process Models 1 Linear Model - a Technolozy Push Miadel , Masket Pull Model 11 Flexible Innovation Process Model Linear Innovation Process Mads]. Me eo ee Linear Model- Uhr this model, product or service concept is dozen ot early stage 39 28 12 minimize rick In this model, innovation process in enterprises involves sees of sequential phases saps arranged in sock muammer that the preceding pase must be cleared before moins o nest succeeding phase ‘Ths project must throuzh passa gate with the pennission of a zatehesper before maving to next succesding phase Criteria fr passing through each gate and the persom at each gate (gate leper) are defined beforehand. The gataheeper examines whether stated objectives forthe preceding phase have been properly met or uot de whether desired development has taken place atthe praceding phase or not?Linear Innovation Process Models Linear model Linear Innovation Process Madels Linear model warks well enly when Time required to innovate is shorter than rate of change in environment © Quality, reliability & safety requirements are critical + Sufe and suitable for a fint-time beginmer This model is generally fellowed for incremental Innovation Ht i linear im the sense that here immovstion process is tightly controlled and. directed ffom the beginning itself towards set targets / goals and inputs are controlled to attain desired targets ! goals. Linear Innovation Process Models Wealmess / Limitations of the limear model are + Low gatekeeper knowledge may lead to poor judgements, delayed evaluation orrejactian of good Projects: + Slow é& serial process as itis step by step approach, thus time consuming + Concept fruzen too early, however customer needs / market requirements may undergo change subsequentty at Iter stage + Focused on control through gotes, uot on customer + Long review preperation time + Narrew criteria for evaluation which may be rigid ‘More focus om attaining target / maturity, less focus on leamingLinear Tumovation Process Models Common types of linear model are a. Technology push model + Market pull model 4, Technology Push model ‘his the first-generation linear model under this model, technology is reganded as key dhiver of ‘innovation Whenever a new / improved techeology emerges, it leads to imovations of new products, services or procestes. Technology Push innovation involves series of sequential steps ie. Fundamental research (Basic science), Application Reseach, Design, Enginesring, ‘Marufactaring, Marketing & Sales. User ! Comsumar is treated as passive recipient of output ie itis presumed that if anew improved product or service, based on newrtechnology, is developed ‘without geting feedback ’ consulting consumer user and itis offered to comsumsr / user, he will ‘accept the wew product or service, Tims the model ignores the consumer needs and marker requirements b, Market Pull linear model ‘This is the second-generation linear model. Itinchodes and intezrates user nesds in the imsavation process, Here consumer needs | market requirements are regarded as the key driver of insavation process, Market Pull innovation involves series of sequential steps jg; Assessing consumer needs market requirements, Concept ‘idea generation, refining idea to at lest meet consumer needs, ‘Design, Engineering, Manufacturing, Test marketing & Seles. Some examples are : Market Pull Timovations IN Phones, UPS, lovertars ‘1 Flexible Imnovation Process Model Initially, Imevation was deemed to be linear | dixectad / planned activity. Now imovation is regandedalso 25 non-linear and ideas / improvements can emerge from amy source and af any staze ‘of imavation process. The combination of linear & nonlinearity approaches has led to emerzence ‘of third Generation models which reflect complexity of real innovation process, Thes= models snchude Technology Push + Market Pull combination, BARD ~ Marketing, Cytlital Model etc ‘The models anempt to explain the radical innovation process in rapidly chonging business cauvirorment. In these models, phases are overlapped, development in mare than one phase cancontinue atthe same point of ime. No design is locked down szriar than absolune necessary #0 28 not to mass a newiy emerging technology or new oppornmity. Flexible Innovation Process Models Flexible Trnovation Process Model According to Cycling Modal, innovatiom is cyclical in the sense thar itis driven by the product ingprovensent cycle. This cycle often begins with customer mesds.; which keep on chmging, Also, an enterprise may be working for new product development simultaneously. Thus, there are cycles of innovation The process of technological innovation inwolves complex relationships amongst set of key variables lke — Investions, Imovations, Diffusion Paths and Investmant Activity. The complex relations between these variables form 2 momlinear system with its underly ramifications which can lead to unexpected 4& possible chaotic results. Thus, proper interaction & integration between R&D, Manufacturing, Marketing & Other Corporate Functions helps in proper management of Innovation process. Flexible Innovation Process Models a Advantages * Continuous interaction wath market User need oriented + More chances of acceptance of product ete, + Lose risk of failure &: resultant after-effects b. Dizadvantages "Chaotic in manure May become directionlessIt is also categorized based on magnitude of described below 1, Islands of Innovation model: In the Islands of Inovation model, the imovation & ‘implemented ony in a small part of the organization and in for a homogeneous group with. similar traits. In many cases this is done in the fonm of 2 pilot project or a specially selected. group, such 2s 2 paicplay agg group, 2 curricular topic, schools in a certain community, er a articular instruction method. Examples of such pilot projects might be the inmoduction of laptops into school or exzenining the effectiveness of leeming with video clips in a certain class, In many instances, the choice of the Islands of Innovation model originates ‘tom 2 conservative approach that prefers a gradual intreduction of innovation that won't "shake" the rganizatiowal culure ‘The assumption common among many proponents of the islands of imovation model is tht the surcess of the islands will serve az 2 role model, slowly dissipate to the rest of the organization and finally lead to a comprehensive innovation 2. Open Innovation Model: Open innovation is the use of “purposeful inflows and outflow: of Inoniedge 19 accelerme imovation intemally while also expanding the market for the sstemal use of innovesion.” This model involves statezic, managed exchanges of information ‘with actors outside of the boundaries of an organization, aimed ot integrating their resources, and knowledge into the orgmizaton’s own innovative process. Irseeks to wilize intereal and. extemal ideas in an optinal manner, to be more effective at managing cost and risk and to accelerate technology development Sunamary of the author Generation Time snd author leading generation modelig. Fit generat insovatioa me HSS ‘Fig 2. Secon generation imsovation mel ‘What is a management team? A management team is 2 collection of top managers who set the strategy and mm the ‘operations of an organization together with its top leader The management team can mast ‘amymbere between weekly to monthly or quarterly depending an the type of business and the ‘team setup. It is normally structured around the direct reports of the top leader.‘The mansgement team is the highest senior tam of managers and Jeaders in an organizational ‘including the top leader. [tis mot just a collection of top mimazers, but also a tam whose results are leveraged by increased cooperation and teamwork encompassing all the different functions af the organization. ‘What is the purpose of a management team? ‘The purpose of the management team is to successfully operate the organization its heading with all that that entails a5 well as develop and execute a proper strategy for the future of the ‘organization. The output of the team should also be move than the suum of the output of each of the individuals. I the management team can create this leverage, the organization will be stronger than each of its functioms combined. This is the old “one plus one equals three" concept. The different members are offen heading of different functions and the epistence of the management team should also ensure that the different parts of the organization pullin the same direction. Depending on the type of organization, ‘The following might also be included in the purpose of the management team: » Cresting and communicating a vision fitting to the stratezy Combining the efforts and plans of all the critical functions into execution of the organizations overarching plan and starezy » Ennuring proper governance models and structures of the orgmization Risk analysis, risk assesement and risk mitigation activities © Monitoring extemal factors and reacting to those ina proper way in order to safemuard the organization forthe furure ‘Hovis 4 management team structured? Who are the members of x maazement team? ‘The mamcber setup of a mmagemet team normally reflects the way the organization looks to a ‘cornin extemt. They are offen top mmazes of different functions, divisions or business area, depending on the level of the management team and the type of organization they work in. The tenm is headed by the top leader ofthe organization, ie, a Presides, aCEO, 2 Monaging Director cor sinailarly if itis im the world of business.Ina manufacturing business, you miizht have the senior leaders of sales, operations, logistics, HR. 2nd dinance in the mummagement team In 2 software atemup it might be the leaders of sales, marketing, sofware development, IT infrasrucure, HR and finance for instance, The member setup normally reflects the way the organization looks to a certain extent. They are offen top managers of different functions, divisions or business areas, depending on the level of a management team, ‘ote that not all people reporting to the top leader must be in the management team. Sometimes staff functions are not needed inthe top decision forum but rather have an operational and advisary role on the side for instance Hare are two examples of organizations and how the manazement team could be srocured. ‘Management and organization structure example #1 In this case the CBO have an Executive Assistant, a Business Development Director, a Chief Financial Officer and a Chief Technical Oficer shown ar staff functions while the Chief of Operations, the head of Services and three reziomal sales heads are listed more as operational units Exauaple management team structure with staif mecabers and lenders of larger functions. The ‘organization chart equals the manazement team setup. ‘Management and organization structure example #2 ‘Thedellowing exemple shows Division organizational structure example. The Division President heads bis tem consisting of the following staff fimctions: Executive Assistant, a Business Development Directar, SVP: far Finance and HR, as well as legal and ficilties managers. Chief of Operaticas, Chief Technology Officer and three Seniar Vice Presidents are listed a: more operational Sinctional areas, The reminder would form the management team that need to nun the company and set the strategy exseutally ‘There are toms of examples on how 2 management team could be structured. I will wite a separate post on that sometime and drill deeper into that topic. How often does « management team meet and for how loag?The meeting frequency and length is up tothe requirements and resrictions for each specific team Thnve been in severe national ns wel 2s international manazerners teams and I would sey tht the following isa pretty common setup: weekly monthly and quarterly update dome How cam a management team be effective? A mmazemant tam should be empowered to lad the orgnnizaion. The top lender mht have a veto rate or a stronger say, bot it is crucial thet the management team: is empowered to run the organization, This level of empowerment creates a stonger sense of responsibilty and accountability - two concepts that can genuinely improve the perfomance of the team Furthermore, ifthe mamagement team can serve this purpose, the organization is less dependant cn the fop lender. This increases efficiency and reduce the risk in case the top leader lenves for sone reason, A leaderlos organization with a stroug empowered management team can continue to operate relatively smoothly fon quite some time During my career, [ have seen many different versions of management teams. Some of them have been unsuccessful md hostile, and some of them have been affective and highly successful, leveraging the organization to 2 whole new level. Those topics can be expanded on alot, so Twill save it for future blog posts and will link to them om here once they are done Tn conclusion, a management teams" purpore is to run the operational side of an organization 2: well asset and execute a proper strateay. [tis nommally structured around the direct repons of the top lender and meets weekly, monthly or quartely, A management team can be more effective if itis empowered to muly lead the organization withthe top lender as one of the members rather than the ultimate conductor of everythingReference| 1. Gobel. R (0994), Towards the fifth-generation imovetion process. derusetianal _Maréeting Review, 1i(1), 7-21. 1. Sixth generation innovation model: description of a success yggel/as¢, Carlos Barbieri Antonio Carlos Teinsira alyauesGutulia Fargas Fownllnion—FGT, Sie Paula, SP, Brasil & April 2015, 3. Innovation Process by Dr. Wijay Kr Khurana 4. PBT prepared by Dr. Buse Zeazye: Manazement of Technolgy and Innovation AZANAW