TECHNOLOGICAL CENTER FOR PRODUCTION TECHNOLOGIES WORKSHOP: INNOVATION MANAGEMENT, TECHNOLOGY WATCHING AND PROJECT PORTFOLIO MANAGEMENT 10TH MAY 2011, ZAGREB.

TECHNOLOGICAL CENTER FOR PRODUCTION TECHNOLOGIES

WORKSHOP: INNOVATION MANAGEMENT,

TECHNOLOGY WATCHING AND PROJECT PORTFOLIO MANAGEMENT

10TH MAY 2011, ZAGREBMIQUEL ANGEL PEREZ

Deliver Research and Innovation services to enterprises

Adapting to changes in the whole market

Lasting high technological value creation

Purpose, mission and vision

Preliminar presentation

Objectives

• Introduce the Project Portfolio Management discipline into the technological innovation process• Definitions and tools• Example

• Introduce the Technology Watching process • How to build a TW system• Benefits of performing TW• Examples

• TW and PPM in the open innovation paradigm and conclusions

Innovation and Project

Portfolio Management

Program

A

B

C

D

E

F

Program

Portfolio in t1 Portfolio in t2

A, B y D C, D y E

Portfolio

I.e. Apolo Program: “Send the mankind to the moon”

I.e. Portfolio of the NASA in 1977

Set of projects and programs in a given time for one organization

Group of project with relationship, managed coordinately in order to reach the objectives and strategic benefits for the organization

Project

Set of activities with relations during a period that deliver a unique resultI.e. TPOT: “Unlock the Croatian Textile Research Potential”

Funnel model for innovation

The innovation process delivers successful business results from ideas and new knowledge by means of projects.

The more ideas, the more possibilities to deliver an innovative result

wide narrow

Project Portfolio Management (PPM)

It consists on: • Selecting projects• Controlling and monitoring portfolio

projects• Asign / unassing resources dynamically

… in order to get business objectives

“do the right things and do them right”

Purpose of the project selection

• Balance the different project typologies in the global portfolio

• Maximize project portfolio value, optimizing resources

• Assessment of strategic alingment of project porfolio

• We can’t implement all ideas• Not all ideas are good• Limited budget (even the big

ones)• Limited time

innovation project low competition high competition substitution

first sale

break even

reduce margins

discountinuation

product in stores

project kick-off

Time to MarketThe effect to arrive later to a market or the rule “The one that strikes first, it strikes twice!”

low ROI

high ROI

project risk

2

0

2

4

6

8

10

20 40 60 80 100Performing costs

Impo

rtan

ce

Organizational Product Process Sales

Knowledge or Technology based

Strategic importance

High Low

Example of a project porfolio previos selectionAll of them seem to be aligned into importance and cost, so what will be selected?

Assessment of different points of view in an organization

Organization

Marketing

R&DManufacturing

Finance

Consensus

Idea and project selection

Define what ideas and projects will be planned, allocating specific resources, in order to execute only the projects that fit the organization strategy

• External decision (i.e. expert committee)• Influential figure (i.e. CEO)• Intuition• Multivote• Prototypes and testing• Decision matrix or balanced scoreboard

Decision techniques

Decision matrix

Stablish selection criteria

Cultural and strategic

• Culture and vision

• Business and corporate strategy

• Technological strategy

• Value proposal

Marketing

• Market approach

• Commercial Success probabilities : market size and growth

• Competitive position

• Sale system (channels)

• Result lifecycle• Other product

impact

Research and Innovation

• Resources and capacities

• Benefit ownership

• Tech Succes: gap, complexity

• Sum to Science and technology

• Sum to corporate knowledge and habilities

• Other project synergies

• Cost and time

Manufacturing

• Resources and unallocated capacity

• Industrial Scalability

• Change management probabilities

• Sum to habilities

• Other process or procuerement synergies

Finances

• Finance indicators (NPV, ROI)

• Ratios (Cost/benefit…)

• Funding and tax benefits

• Cash flow.• Other project

financing

Define the value of the criteria. When a criteria set is not high, we could make 1 to 1 comparisons and the sum the results

Factor C1 C2 C3 C4 Total Value

C1 x 2 3 1 6

C2 1/2 x 4 1/5 4,7

C3 1/3 1/4 x 1 2,58

C4 1 5 1/2 x 6,5

Decision matrix

Criteria C1 C2 C3 C4 Total Value

C1 x 2 3 1 6 x3

C2 1/2 x 4 1/5 4,7 x2

C3 1/3 1/4 x 1 2,58 x1

C4 1 5 1/2 x 6,5 x3

Define the value of the criteria. When a criteria set is not high, we could make 1 to 1 comparisons and the sum the results

Decision matrix

Individual score for each project and reorder regarding its score. It’s important to define a scale that don’t create huge differences (i.e. 1 to 5)

Criteria C1 x3 C2 x2 C3 x1 C4 x3 Total Ranking

P1 2 3 5 1

P2 2 2 3 2

P3 3 4 4 3

P4 2 3 2 1

Decision matrix

Criteria C1 x3 C2 x2 C3 x1 C4 x3 Total Ranking

P1 2 3 5 1 20 #2

P2 2 2 3 2 19 #3

P3 3 4 4 3 30 #1

P4 2 3 2 1 17 #4

Individual score for each project and reorder regarding its score. It’s important to define a scale that don’t create huge differences (i.e. 1 to 5)

Decision matrix

Adjustment to project portfolio regarding a resources filter (finance, people…)

Priority Cost Score

P3 100.000 30

P1 150.000 20

P2 80.000 19

P4 20.000 17

Budget for Research and Innovation = 200.000 €

Decision matrix

Adjustment to project portfolio regarding a resources filter (finance, people…)

Priority Cost Score

P3 100.000 30

P1 150.000 20

P2 80.000 19

P4 20.000 17

Budget for Research and Innovation = 200.000 €

Decision matrix

PP control and monitoring

• Visual organization of projects• Hierarchy (programs, core

developments…)• Term (short, mid, long)• KPI

• Dinamically manage the PP• Accelerate project• Pause a project• Kill a project

• what are the right projects (strategy)

• what is doing a project right (success indicators)

• Who is responsible for a project and program and circuits to collect project high level data

• Authorize the responsible for the portfolio management

• Choose a good ICT application to make the PP management be humanly possible (but first process and then tool)

Recommendations for a project portfolio management

Technology Watching

– Systematic process to alert organizations about new knowledge that could become an opportunity or threat and increase its competitiveness• Capture• Analyze• Disseminate• Explote (act)

– In private sector (tech innovation):• Look at the Science and

Technology environments in order to find something that pushes an innovation for our organization

Definition

Let’s look an example of “watching”: the prison surveillance model

Our focus or strategy: We are the best prison, so we don’t leave prisoners to escape from (objective)

Identify the information we need:number of prisoners in each pavillion, cell full or empty at night, no one in the courtyard by night… (kind of information)

Configure the information sources:Cameras, movement sensors, , surveillors… (information sources configuration)

Collect data (who) and analyze (how):Control center, surveillance experts (configuration)

Intelligence to act in consequence:If there’s a movement, then look at the camera, if it persists, then send people and ask them, if it doesn’t answer, then increase emergency level and notify the warden… (protocol or process)

And assume some risks… (not controlled data)

Planning

• Needs• Information

sources and evaluation

• Access ways

Search

• Formal and informal sources

• Internal and external sources

Treatment

• Filtering, qualifying

• Complement

Validation and distribution

• Information volume

• Receptor - match

Value proposal

• Planned top-down

• Not planned bottom-up

TW process activities

TW resources

Observer

Analist

Decisor

Resource (time, people)

Normal Recommended

Data adquisition 40% 20%

Analysis 30% 20%

Dissemination 20% 50%

Other 10% 10%

Information flow

ReportShareDisseminate!

• TW is a patent analysis• TW is only for big companies, not

accessible for SME• TW is a software• TW requires a specialized technician

and full-time• TW requires so much money and

time• TW is for technical people

Myths about TW

TW activities at a glance

• Visit sectorial fairs and make salespeople to report R&D

• Technical reviews: underline and disseminate (intranet)

• Study competition products: don’t do the same• Study other sector leaders: what you can

takeaway to your organization• Technological platforms: where will be the

funding, align to your R&D agenda• University chats and seminars: identify the

experts• Internet search (blogs, free tools), trending topics

• Scientific publications: do “for dummies versions” or “summaries”

• Private database mining (thomson)• Patent search (WIPO)• Social network research• Text and Data mining

Basic (for companies, SME) Advanced (for R&D)

The most important is to deploy the process and then apply continuous improvement

Research lines (technologies and product that they are working in, researching, publishing, IP protecting…)

Emergent technologies Technological roadmaps from main

competition R & D centers, people and teams that are

leading new technology production Interesting patents with no license owner

(diversification opportunities) Sale + Purchase technology (technology

brokers)

Information to reach

Other directions to watch

Market regulation &

laws

Consumer trends

Competition Technology

product trends, salaries, demographic changes, new preferences, word of mouth…

environmetal, R+D incentives, job regulation, international agreements

Information technologies, manufacturing, management knowledge, patent opportunitiesProducts, customers,

markets, providers, fairs, people

twitter, facebook, delicious

Private databases, corporate websites

public websites, standardization groups, journals

• Innovation Relay Center – http://www.innovationrelay.net/

• Science Direct www.sciencedirect.com • Patents:

– Worldwide www.wipo.int– Patentscope (WIPO):

http://www.wipo.int/pctdb/en/ – European Patent Office www.epo.org – INCENTIV – Intellectual Property

Information Centre of the State Intellectual Property Office of the Republic of Croatia http://www.dziv.hr

Some information sources

• Technological providers– www.ideal-ist.net– Technological platforms

www.textile-platform.eu

• Projects– www.cordis.lu

• Anticipation• Opportunity exploitation• Risk reduction• Improvement lines• Required progress• Innovation• Cooperation• Interest environment creation

• Changes and change expectatives in analyzed environments

• Exploit identified advantages• Reduce threats, overcome barriers• Overcome biases and minimize weakness• New ideas and research projects• Potential collaborator identification• Interesting technological or markets environments

Derived actions

TW results must become in action that have support from the management staff.La VT/PT debe realizarse en base a unos objetivos estratégicos, que conduzca a unos resultados previstos

Results from TW

• Starting a product development project (for a private company)– How to approach to the problem? Explore technologies that can solve our concept– Will be the results protectable by IP laws? – Will we have freedom to operate in a market? Patent search– What is doing my competition? PCT application.– Is there any knowledge stock in that university that I could use? Reduce costs and time by

outsourcing to specialized researchers (in universities)

At the project start

Korean company is looking for hemp technologies for #textile applications http://bit.ly/mPpbN8 #opportunity

Konoplja

• Starting a technological development project (R&D unit)– Is there any kind of knowledge previously developed?

• Yes: Have we access to that knowledge? If not, could we use that knowledge to make a patent workaround?• No: Who is the best in that field? What new science publications could inspire our development

– How to approach to the problem? Explore substitutive technologies– Will be the results protectable by IP laws? Define what “open” dissemination to do.

Disseminate could mean no patent strategy– Will we have freedom to operate in a market? Patent search

At the project start

Konoplja

To improve the fineness and cleanness of the fibres to be hackled in the processing of flax or hemp, the invention provides a continuous hackling process wherein the bast (1) is continuously forwarded by means of conveyor belts (7, 18, 19) and, starting at the tip and extending to the clamped region, is progressively exposed to the action of rotating hackle comb groups (8, 9, 10). The hackle comb groups (8), which are equipped with coarse needles (12, 13) and which are intended for processing the basts in the tip region, have a significantly lower

• Monitoring the state-of-the-art and foresee result exploitation– Has anyone developed and patented my technology or anything similar?– Solving special issues? Experts, solutions in other markets…– Searching an industrial market for technology: license owners, IPC codes for a similar patent

During the project

• Provider selection– Methodology (fits with you?)– Technical solvency (UNE 166.006,

UNE 166.002) and experience– Environment and access to non

formal information• Needs (Request for Proposal)

– Purpose, approach, scope, special information

• Evaluation of service proposal• Formal agreement

– Professiona ethics (piracy)– Confidential (Non disclosure agreement)– Property of the results

Main issues of TW outsourcing

IMPORTANT: You can’t outsource our competitiveness.

That activity is outsource but is unreal no to make parallel TW activities to complement

Having the TW in hands of an expert doesn’t mean that we’ll achive all information

Your ORGANIZATION

EXTERNAL

INCREASING THE KNOWLEDGE FIELD OF A PROJECT

Your PROJECT

Technology Watching and PPMgmt in a

Open Innovation

Paradigm

OPEN INNOVATION “a paradigm that assumes that firms can and should use external ideas, and internal and external paths to market, as the firms look to advance their technology”. Henry W. Chesbrough, HaaS School of Business, KIMbcn advisor

Technology Watching

• Insource external technology• License internal technologies• Compare maturity of technologies• Identify new markets for our technologies• Locate other firm market licensors• Leverage from other base technologies

Project Portfolio Management

• Organize projects properly• Balance internal core technology from

external (be competitive and add value)• Define investments in core technologies

and synergies for diverse markets• Align technologies and markets• Make all profitable and investment

returns visible

Puno hvala. Vidimo se uskoro!Miquel Angel Pé[email protected]

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