WORKSHOP:
INNOVATION MANAGEMENT,
TECHNOLOGY WATCHING AND PROJECT
PORTFOLIO MANAGEMENT
10TH MAY 2011, ZAGREB
MIQUEL ANGEL PEREZ
TECHNOLOGICAL CENTER FOR PRODUCTION TECHNOLOGIES
Purpose, mission and vision
Deliver Research and Innovation
services to enterprises
Adapting to changes in the whole
market
Lasting high technological value
creation
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
Project
Set of activities with relations during a
period that deliver a unique result
I.e. TPOT: “Unlock the Croatian Textile
Research Potential”
Program
Program
A
B
Group of project with relationship,
managed coordinately in order to reach
the objectives and strategic benefits for
the organization
I.e. Apolo Program:
“Send the mankind to the moon”
C
D
E
Portfolio
F
Set of projects and programs in a given
time for one organization
I.e. Portfolio of the NASA in 1977
Portfolio in t1
Portfolio in t2
A, B y D
C, D y E
Funnel model for innovation
wide
narrow
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
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
Time to Market
The effect to arrive later to a market or the rule “The one that strikes first, it strikes twice!”
discountinuation
high ROI
reduce margins
low
competition
innovation project
high competition
substitution
low ROI
break even
project kick-off
project risk
first sale
product in stores
Importance
Example of a project porfolio previos selection
All of them seem to be aligned into importance and cost, so what will be selected?
10
8
2
6
4
2
0
20
40
60
Low
Organizational
100
Performing costs
Strategic importance
High
80
Product
Process
Knowledge or Technology based
Sales
Assessment of different points of view in an organization
Organization
Finance
Marketing
Consensus
Manufacturing
R&D
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
Decision techniques
•
•
•
•
•
•
External decision (i.e. expert committee)
Influential figure (i.e. CEO)
Intuition
Multivote
Prototypes and testing
Decision matrix or balanced scoreboard
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
Decision matrix
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
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
Value
Decision matrix
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
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
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
P1
2
3
5
1
P2
2
2
3
2
P3
3
4
4
3
P4
2
3
2
1
Total
Ranking
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
20
#2
P2
2
2
3
2
19
#3
P3
3
4
4
3
30
#1
P4
2
3
2
1
17
#4
Decision matrix
Adjustment to project portfolio regarding a resources filter (finance, people…)
Budget for Research and Innovation = 200.000 €
Priority
Cost
Score
P3
100.000
30
P1
150.000
20
P2
80.000
19
P4
20.000
17
Decision matrix
Adjustment to project portfolio regarding a resources filter (finance, people…)
Budget for Research and Innovation = 200.000 €
Priority
Cost
Score
P3
100.000
30
P1
150.000
20
P2
80.000
19
P4
20.000
17
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
Recommendations for a project portfolio
management
• 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)
Technology
Watching
Definition
– 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
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)
TW process activities
Planning
• Needs
• Information
sources and
evaluation
• Access ways
Search
• Formal and
informal
sources
• Internal and
external
sources
Treatment
• Filtering,
qualifying
• Complement
Validation and
distribution
Value proposal
• Information
volume
• Receptor match
• Planned topdown
• Not planned
bottom-up
TW resources
Information
flow
Resource (time,
people)
Normal
Recommended
Data adquisition
40%
20%
Analysis
30%
20%
Dissemination
20%
50%
Other
10%
10%
!
Report
Share
Disseminate
Myths about TW
• 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
TW activities at a glance
Basic (for companies, SME)
Advanced (for R&D)
•
•
•
•
•
•
•
•
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
The most important is to deploy the
process and then apply continuous
improvement
Information to reach






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)
Other directions to watch
product trends,
salaries, demographic
changes, new
preferences, word of
mouth…
environmetal, R+D incentives,
job regulation, international
agreements
public websites,
standardization
groups, journals
Products, customers,
markets, providers, fairs,
people
Private databases,
corporate websites
Market
regulation &
laws
Competition
Consumer
trends
Technology
twitter, facebook,
delicious
Information technologies,
manufacturing,
management knowledge,
patent opportunities
Some information sources
•
Technological providers
– www.ideal-ist.net
– Technological platforms
www.textile-platform.eu
•
Projects
– www.cordis.lu
•
•
•
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
Results from TW
•
•
•
•
•
•
•
•
Anticipation
Opportunity exploitation
Risk reduction
Improvement lines
Required progress
Innovation
Cooperation
Interest environment creation
Derived actions
•
•
•
•
•
•
•
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
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
Konoplja
Korean company is looking for hemp
technologies for #textile applications
http://bit.ly/mPpbN8 #opportunity
At the project start
• 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)
Konoplja
At the project start
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
• 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
During the project
• 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
Main issues of TW outsourcing
INCREASING THE KNOWLEDGE FIELD OF A 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
Your PROJECT
Your ORGANIZATION
EXTERNAL
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
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
Keep connected on innovation
Puno hvala. Vidimo se uskoro!
Miquel Angel Pérez
maperez@leitat.org