CASE STUDIES:
Integration of
Intangibles Into Product Development
John F. Ryder
Process Leader
Dow Chemical
New Product Development processes have improved the ability
of corporations to document, communicate and complete the requirements for product
development in a consistent manner. Yet, in spite of this, companies are still challenged
to improve the utilization of all their assets (including intangibles) into their product
development efforts. Intangibles, such as intellectual assets, employees know-how
and Research & Development are important to new product development, yet often
challenging to access and leverage. This presentation will focus on how Dow has addressed
this challenge and how integration of intangibles into their product development efforts
has resulted in improved offerings and new product development successes.
IBM's Innovation Maturity
Management System
David S. Coughlin
Executive Consultant
IBM
&
J. Thomas Luin
Business Transformation Achitect
IBM
A technique for assessing the execution maturity of an
innovation management system within the IBM corporation will be presented. The framework
for the assessment is based on industry best practices and how they apply in managing
emerging business opportunity investments, along with the awareness for change toward
optimal execution. The assessment model has been created out of the need to
establish and measure execution consistency across a number of emerging business
opportunity investment areas and to establish a model for jump starting new executive
teams looking at new business opportunities. The best practices used will be
discussed, along with the tool design used for assessment.
Dave Coughlin is an Executive Consultant in the IBM
Corporate Integrated Product Development (IPD) team. He has a broad range of experience
and has held a variety of management and technical support positions in his 25 years with
IBM. Mr. Coughlin helped IBM re-engineer the product development processes. He
facilitated the development and refinement of the primary product development processes
and several key enabling processes. New team based roles and responsibilities were also
developed to complement this new process. This development process was then tailored to
support the development of emerging business opportunities. Mr. Coughlin also developed a
change management technique to gauge business transformation progress. He has published an
article entitled "A Tool for Managing Business Transformation". This change
management approach has been adapted to manage the cultural change necessary to support
new business development. Mr. Coughlin joined IBM after seven years in the Army as a
military intelligence officer. He earned a bachelor of science degree from the United
States Military Academy at West Point and a masters of administrative science from the
University of Alabama in Huntsville.
Tom Luin is currently a business transformation
architect in the IBM Corporate Integrated Product Development (IPD) team. His
primary work efforts are focused on architecting and deploying the Emerging Business
Development (EBD) process in support of project investments for Emerging Business
Opportunities (EBO). His secondary focus is coaching executive investment boards in
execution of the EBD and IPD processes for EBOs. Tom has worked for the last six
years as a Group Advisor for Systems Group and Microelectronics, along with participating
in numerous business unit IPD and project assessments. Tom's additional experience
is comprised of leading marketing teams and new product development teams in IBM, R&D
and new product/process development teams in microelectronics for telecommunications in
Nortel, co-leading a new start up microelectronics operation for seismic recording in
Litton Industries, and he started his engineering career in microelectronics packaging for
pacemakers in Medtronics. Tom has held positions in the International Microelectronics and
Packaging Society as National Technical Committee Chair, Symposium Technical Chair,
Symposium Awards Chair, National Education Committee Chair, and Chapter President.
Tom received his marketing education by attending IBM's inaugural Marketing University
program and attended Arizona
State University, majoring in Business Administration.
Using the Right
Metrics to Align Product Investments and Return
Guy Merritt
Director of Program
Management
Tellabs
Many of us in the high tech industry, particularly in
telecom, have been weathering a downturn unlike anything we have experienced before. This
downturn has forced us to take a hard look at how we do business: externally and
internally. In today's business climate, all operations are scrutinized for efficiencies
which typically translates into cost reductions. When cost reductions must be made, all
too often companies believe that process and metrics programs should be shelved to their
own detriment. Instead, companies should re-examine if they were investing in
the right processes and metrics to effectively run the business.
This presentation will focus on how to define a set of
metrics to help maintain a view of where your money is being invested, where your
customers are spending their money and the expected return on
your investment.
Guy is the Director of Program Management for all
North American product development efforts. He has an extensive background in project
management and process development with a special focus on risk management. Guy is the
co-author of the book, Proactive Risk Management: Controlling Uncertainty in Product
Development which was named by Soundview's Executive Book Summaries as one of the 30 best
business books of 2002.
Key Metrics for
Monitoring Innovation and Pipeline Performance
Anthony V. Lemus
Director, Advanced R&D
Advanced Sterilization Products
(a Johnson & Johnson Company)
Tony will review the importance of portfolio management and
provide case studies of pipeline overflow. He will also examine New Product Development
(NPD) metrics to link the NPD pipeline to business results and will provide examples of
scorecard utilization, the selection process for R&D projects, pipeline health
indicators for new products, and risk management. In addition, Tonys presentation
will include numerous illustrations of Six Sigma integration into the NPD process, such as
SIPOC process maps, design scorecards, QFD (Quality Function Deployment), and metrics
deployment.
Tony will also explain the link between innovation and
portfolio management, covering tropics such as idea filtering, idea funneling, and idea
parking lots. Additionally, Tony will elucidate the use of portfolio management metrics to
monitor the maturing of ideas as they go through the NPD pipeline.
Anthony is the Director of Advanced Research and
Development at Advanced Sterilization Products, a Johnson & Johnson company. He has 16
years experience in new product development, specializing in the product concept
creation process and in product commercialization. Anthony is a control systems engineer
with a Bachelors of Science in Engineering Physics from Santa Clara University in
California, and a Masters of Science in Physics from the University of California, Irvine.
In addition to his current employment at Johnson & Johnson, Anthony has also worked
for Allergan, Inc. and Pfizer, Inc., where he was responsible for medical product
development in the areas of cataract surgery, electro-surgery, and surgical ultrasonics.
Anthony is a certified Six Sigma Black Belt and is utilizing process excellence techniques
to assist with portfolio management and to measure NPD pipeline health. Some examples of
Anthonys process implementation in the NPD funnel include a rapid concept evaluation
process, innovation business metrics, incorporation of design excellence into project
deliverables, and the incorporation of IDweb into the NPD tracking system.
Project Metrics
Dashboard: Balancing Scope, Schedule and Resources
Russ Strobel
Director of Project Management
Commercial, Government and Industrial Sector
Motorola, Inc.
The primary role of a project manager is communications
with all project stakeholders, including team members and project sponsors. Motorola has
developed a project metrics dashboard as part of their M-Gate system and product
development process. This standardized dashboard is used at Division, Group and Sector
project reviews. It depicts schedule variance, scope control, resource variance and
milestone or earned value tracking. The dashboard serves as a standardized project
management tool to effectively communicate project health and schedule, scope and resource
adherence to plan, as well as imposing our standard project development methodology.
Key learnings from this session will be understanding the
value of a common product development system in your operation, and how you can develop
and use standard project metrics to ensure your projects are in control and will complete
on time, with specified scope using the resources assigned at the start of the project.
Improving NPD
Execution - Resource Capacity vs. Demand
C. Emery Powell
NPD Manager
Texas Instruments
A primary cause of time to market delays for new product
development (NPD) is inadequate management of resource capacity versus the
demand, particularly with respect to critical path tasks on a project's schedule.
Marketing and sales are driven by the desire to capture
every new product opportunity they find. Management is driven by the desire to
increase NPD throughput, release as many new products as possible, and capture the
revenue. The typical response to these needs is to rapidly feed new product opportunities
into the pipeline. The expectation is: More IN = More OUT. Yet, exceeding throughput
capacity all too often leads to a clogged pipeline. So how can we manage NPD
capacity 3, 6, or 12 months in the future? How can we know what the critical path demand
is for a particular type of resource or for a single resource, months in advance when
NPD is inherently a highly variable environment? How can we measure and assess
the impact of the resource demand and our capacity constraints on execution
success?
Enterprise and portfolio level tools that can provide this
management capability are now available for new product development. This presentation
will present the results of a recent pilot deployment of one of these tools in a
TI business and discuss the gains achieved.
Emery is currently the New Product Development
Manager for one of Texas Instrument's billion dollar businesses. Previous experiences
related to this presentation have included the merger and integration of the NPD
capability of multiple large businesses, and large scale cycle time, six sigma, project
management, and enterprise performance management improvement initiatives. He has managed
many R&D and NPD Projects over his career for multiple companies, and he has been a
principle in launching two new companies.
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