Before starting the actual product elaboration (taking the concept and turning it into a market-ready product), innovators need to have some form of project management methodology in place for the new project. It is widely acknowledged that there is a high percentage of failure of innovation projects, in addition to exceeding budget and overrunning timescales. Mindful of this, establishing and utilising project planning processes and techniques aim to improve innovation success by ensuring that a strategically aligned portfolio of innovation projects in terms of risks, timescales and efficient use of resources is maintained. After an appropriate project management methodology has been chosen, it should be adapted to the requirements of the organization that will be using it. The adopted project methodology need not to be specific for the PaCS domain, and can be a methodology which is reused across the organization.

The steps taken in the management and planning of a project depend on the methodology chosen, however the following generic phases in project management can be identified:

  • Scoping the project and define objectives
  • Obtaining formal approval to start the project
  • Execute the work packages

o Gather requirements

o Design the solution

o Implement the solution

o Test the solution

o Refine the solution

  • Monitor the project progress and performance
  • Close the project

It is important to see that these steps are project management steps, rather than project execution steps. Known project management methodologies such as PRINCE2 and PMBOK describe project management steps, unlike other, more executional-aimed methods such as Scrum, which place the focus on project execution steps (i.e. the execute the work packages step from the list above). Any innovation process should outline both project management steps as well as project execution steps. Management steps such as scoping, obtaining formal approval, monitoring and closing activities are mostly independent of the project subject, but the execution steps could be tailored further to the PaCS domain.
In the next section the focus will therefore mainly be put on the execution steps, rather than on the project management steps. It is to be noted, however, that general project management steps are crucial to have in place as well. Therefore, two best-practice project management methodologies (PRINCE2 and PMBOK) focusing on project management steps are briefly introduced in the remainder of this section, preparatory to describing the execution steps in more detail in the next section.


PRINCE2
Prince2, or Projects in Controlled Environments 2 is a non-proprietary generic project management method. Used extensively by the UK Government, PRINCE2 is also widely recognized and used in the private sector, both in the UK and internationally. The PRINCE2 method is in the public domain, and offers non-proprietorial best practice guidance on project management. It originated in 1996 (based on older project management methods) and is now used worldwide by many thousands of organizations. (What is Prince2, 2014)
The core of the PRINCE2 methodology is structured in seven processes (PRINCE2):
Directing a project runs from the start-up of the project until its closure. It is aimed at the project board, which manages and monitors via reports and controls through a number of decision points. It is important to see that this process does not cover the day-to-day activities of the project manager.
Starting up a project & initiating a project are two related processes of PRINCE2. Whereas the start-up process can be considered a pre-project process designed to ensure that the pre-requisites for initiating the project are in place (based on the project mandate), the project initiation process is primarily aimed at obtaining formal agreement in order to proceed with the first stage of the project.
Then, the managing stage boundaries process provides the project board with key decision points on whether to continue with the project or not.
Next, in the controlling a stage process, monitoring and control activities of the project manager are described. A project manager needs to ensure that a stage stays on course and must be able to react to unexpected events. This process forms the core of the project manager’s effort, being the process which handles day-to-day management of the project. Activities such as reporting, reviewing, authorising work to be done, etc. are part of this process.
Sixth, it should be ensured that planned products are created and delivered. Continuous feedback to the work packages descriptions as well as continuous follow-up can help the project manager in achieving this objective. This is described in the managing product delivery process.
Finally, the closing process is started. Many projects are closed in a non-official way: they come to a natural end, or project members slowly start paying less attention the project. However, a controlled project closure can prove very valuable to an organisation: a formal approval of the customer is obtained, lessons learned are documented, etc.

PMBOK
The Project Management Body Of Knowledge is a comprehensive set of standards and guidelines (originated in the US vs the UK origins of Prince2) for managing projects. (PMI, 2014).
PMBOK defines 5 processes, largely comparable to the ones defined in PRINCE2 (Lowe):
The initiating process group process is performed when defining a new project or a new phase by obtaining formal approval to start the project or phase. Next, the planning process group process is required to establish the scope of the project, refine objectives, and to define the course of action supporting the original objectives of the project. The executing process group is responsible for the actual execution of the work defined in the project management plan. Next, the monitoring & controlling process group track and review the progress and performance of the on-going project. Adequate actions might be taken to identify areas that are susceptible for improvement. Finally, the closing process group finalizes the project, similar to the closing process in PRINCE2. Each process is described in terms of inputs, tools and techniques, and outputs to be produced (Haughey, 2014).
It is pertinent to note that management-focused methodologies (such as PMBOK or PRINCE2) can perfectly be used in combination with execution-focused methodologies (such as Scrum). These execution-focused methodologies are described in more detail in the elaboration subtheme.

Complementary Innovation Management Techniques
Innovation Management Tools (IMTs) consist of a range of tools, techniques and methodologies that help companies to adapt to circumstances and meet challenges across the innovation lifecycle in a systematic way, and can be integrated within general project planning frameworks. The deployment of IMT supports the capability of innovators to manage, assess and implement innovation in products, services, processes and organizations. Reflecting the diverse nature of innovation management components, (D'Alvano & Hidalgo, 2012) developed a taxonomy of IMT typologies and their associated methodologies and tools, which is illustrated in the Table.

 

Table IMT Typologies

Description Associated Tools
Scan Techniques

Bibliometrics

Trend Studies

Formulation and Scenario Analysis

Specialized Internet Search Engines

Technology Observatory

Regulatory Changes Reports

Delphi Method

Patens, brans, industrial models and copyright analysis

Idea Generation Techniques

Brainstorming

Suggestion Box

SCAMPER

TRIZ

Ideas Concourse

Lateral Thinking

Heuristic Rule

Idea Selection Techniques

JTBD (Jobs to be Done)

Innovation Project Portfolio

BCG Matrix

Strategic Alignment Test

Value Analysis

Expert Meetings

Client Meetings

Select Criteria Importance Research

Suppliers Meetings

House of Quality

Project Innovation Planning Techniques

Gantt Charts

WBS

Project Management Programs

Work Flow

Concurrent Engineering

Critical Path Method (PERT/CPM)

Automated mode of contracting

Business Plans

Product/service Innovation Techniques

Prototyping

CAD

Operation Simulation Systems

Practical Improvements

Certifications

Process Innovation Techniques

Process Documentation

Pareto Diagrams

Operations Research

Brainstorming

Cause-Effect Analysis

Process Reengineering

Functionality Tests

Value Analysis

Market Innovation Techniques

Focus Groups

In-depth Interview

House of Quality

Concept Test

Brainstorming

Segmentation Studies

Market Trend Studies

Brand Positioning Studies

Quantitative Research – mass surveys

Learning Organization Techniques

Gap Analysis

Reengineering

Documentation

Cause-Effect Analysis

Business Case

 

Source: (D'Alvano & Hidalgo, 2012)

 

Derived from a synthesis of studies (Adams, et al., 2006) identifies seven categories of innovation management categories (illustrated in Table 2) which pose relevance to project management with reference to innovation: inputs, knowledge management, strategy, organization and culture, portfolio and commercialization.

 

Table  Innovation Measurement Categories

Category Measurement Areas Measurement Methods

Inputs

R&D metrics R&D intensity -  Ratios between expenditure or numbers employed in R&D roles and some expression of output
Expenditure Quantitative -  total expenditure, expenditure expressed as a proportion of sales or revenues, and expenditure by item (organizational department, patent, innovation or scientist

People

Number of people committed to the innovation task - Subdivided into skillsets/demographics/ units
Propensity to innovate - Kirton (1976) ‘adaptor–innovator’ continuum; Bruce (1994) innovative behaviour measure; Patterson (2003) Innovation Potential Indicator
Facilities/ Physical resources Physical resources/facilities, equipment  can be counted or measured in dollar terms
Use of systems and tools Creativity tools;  Quality/management tools

Knowledge Management

Idea Generation

Count the number of ideas generated

in a period; the range of tools and techniques

Imported tangible knowledge Patents
Tacit knowledge

Causal mapping,  story-telling and the use of metaphor

Intangible knowledge assets

Difference between market value and net

book value

Information flows into and within the firm

Linkage measures with external organizations and sources; measures of internal information gathering processes; measures of customer

information contacts

Information gathering Project reviews and the use of technical reports
Innovation Strategy Strategic management Quantitative interpretations of new product and market activity
Strategic orientation Whether the organization has an innovation strategy; commitment to differentiated funding
Management and leadership

Qualitative questions, signs of commitment

in annual reports

Organizational Culture and Structure

Innovation Management Functional differentiation, specialization and integration metrics
Situational and psychological factors Enabling factors, flexibility measures, The Team Climate Inventory (TCI); the KEYS instrument for assessing the work environment for creativity
Autonomy Degree of personnel freedom, decision making
Morale and motivation Reward, trust and job satisfaction
Vision Kirton’s adopter–innovator inventory; team climate inventory
Risk Failure tolerance, learning, gambling,
Portfolio Management Selecting innovation projects Return on investment, Scoring models; Economic and benefit models

Project Management

Project efficiency, tools, Comparisons between budget and actual (project costs, project duration, revenue fore- casting); stage-gate process, Phased Development, Product and Cycle-time Excellence and Total Design
Communications and collaboration Committees, numbers of meetings and contacts, percentage of projects in co-operation with third parties
Commercialisation Innovations to market Marketing, sales, distribution and joint ventures, measures of launch proficiency (salesforce, distributional and promotional support)

 

Source: developed from (Adams, et al., 2006)


AVAILABLE TEMPLATES

 

BIBLIOGRAPHY
Adams, R., Bessant, J. & Phelps, R., 2006. Innovation Management Measurement: A Review.. International Journal of Management Reviews, 8(1), pp. 21-47.
D'Alvano , L. & Hidalgo, A., 2012. Innovation management techniques and development degree of innovation process in service organizations. R&D Management, 42(1), pp. 60-70.
Haughey, D. (2014). The project management body of knowledge (PMBOK). Opgehaald van http://cdn.projectsmart.co.uk/pdf/pmbok.pdf
Lowe, D. (sd). PRINCE2 and PMBOK core processes. Opgeroepen op 2014, van http://www.donlowe.org/project-management/seven-core-processes/prince2-and-pmbok-core-processes/
PMI. (2014). PMBOK Guide And Standards. Opgeroepen op 10 21, 2014, van PMI: http://www.pmi.org/PMBOK-Guide-and-Standards.aspx
PRINCE2. (sd). PRINCE2 processes. Opgeroepen op 2014, van http://www.prince2.com/prince2-processes
What is Prince2. (2014). Opgeroepen op 10 21, 2014, van Prince2: http://www.prince2.com/what-is-prince2

 

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