Who am I?Who am I?

Assistant Professor at the Faculdade Economia, Assistant Professor at the Faculdade Economia, Universidade Nova de LisboaUniversidade Nova de Lisboa

BSc in Management/Finance, University of PortoBSc in Management/Finance, University of Porto PhD in Management, Operations Mgt, Boston PhD in Management, Operations Mgt, Boston

UniversityUniversity Research focus: Design organizational processes and Research focus: Design organizational processes and

manage technology to generate growthmanage technology to generate growth Work in: Equipment manufacturers, Medical Devices, Work in: Equipment manufacturers, Medical Devices,

Software, IT Software, IT

Paulo Gomespgomes@fe.unl.pt

Management of InnovationManagement of Innovation

RoadshowRoadshowJanuary, 2005January, 2005

Professor Paulo JP Gomes

Universidade Nova de Lisboa Phone: 213-801-600, Email: pgomes@fe.unl.pt,

http://docentes.fe.unl.pt/~pgomes

Top Innovations of last 25 yearsTop Innovations of last 25 years

Internet

Cell phone PC

Fiber optics

E-mail

GPS Laptops CDs/DVDs Camera ID tags

the Innovation Myth….the Innovation Myth….

““There is no more delicate matter to take in hand,There is no more delicate matter to take in hand,

nor more dangerous to conduct, nor more doubtful in nor more dangerous to conduct, nor more doubtful in its success,than to be a leader in the introduction of its success,than to be a leader in the introduction of change.change.

For he who innovates will have for enemies all those For he who innovates will have for enemies all those who are well off under the old order of things,who are well off under the old order of things,

and only lukewarm supporters in those who might be and only lukewarm supporters in those who might be better off under the new.”better off under the new.”

In Niccolò MachiavelliIn Niccolò Machiavelli, “Il Principe”, “Il Principe”

Why is it so difficult?Why is it so difficult?The nature of technical work changesThe nature of technical work changes

Performance

Time

Will it work? Exploration, fun, creativity key

Can we make100,000?And service them?

We need to be responsive & flexiblebut controlled

Will it work? Exploration, fun, creativity key

Managing the innovation process:Managing the innovation process:

How will we Create value?

How will weCapture value?

How will weDeliver value?

Discontinuities are hard! Discontinuities are hard!

Requires answers to the key strategic questions:Requires answers to the key strategic questions:

Course Contents:Course Contents:

1. The Evolution of Technologies and Markets1. The Evolution of Technologies and Markets– Strategic Context: The Impetus to InnovateStrategic Context: The Impetus to Innovate

– Technology ForecastingTechnology Forecasting

– Sources of InnovationSources of Innovation

Diffusion PatternsDiffusion Patterns

Federal Reserve Bank of Dallas, 1997

– Innovation StrategyInnovation Strategy

– Profiting from Innovation: Alliances, Profiting from Innovation: Alliances, Patents, Intellectual PropertyPatents, Intellectual Property

– Leveraging Organizational Structure and Leveraging Organizational Structure and CultureCulture

– Innovation in Small FirmsInnovation in Small Firms

2. Building Organizational Capabilities 2. Building Organizational Capabilities to Innovateto Innovate

Step 5:Step 5: Develop the technology strategy – use the Develop the technology strategy – use the technology strategic map as a guidelinetechnology strategic map as a guideline

NurtureNurtureNurtureNurture

BuildBuildBuildBuild

RepairRepairRepairRepair

????

Developing Technology StrategyDeveloping Technology Strategy

Competitive PositionTechnology

Significance Dominant Strong Favourable Tenable Weak

Base

Key

Pacing

Emerging

Profiting from Innovation Profiting from Innovation great ideas = pots of money?great ideas = pots of money?

Valuecaptured

Value created(through “raw” invention)

ProzacProzac

AppleApple

Coca ColaCoca Cola

DellDell

RC ColaRC Cola

Control & Coordination

Organizational Structure:Organizational Structure:

EntrepreneurialDrive,Freedom from the “old ways”

Successful innovation unites entrepreneurial insight with

effective coordination

StartupsStartups

Business as Usual

Business as Usual

3. Managing Product Development3. Managing Product Development

– The Technology-Product RelationshipThe Technology-Product Relationship

– The Product Development ProcessThe Product Development Process

– Development StrategyDevelopment Strategy

Product Development ProcessProduct Development Process

Perform Economic Analysis

Benchmark Competitive Products

Build and Test Models and Prototypes

IdentifyCustomer

Needs

EstablishTarget

Specifications

GenerateProduct

Concepts

SelectProduct

Concept(s)

Set Final

Specifications

PlanDownstreamDevelopment

MissionStatement Test

ProductConcept(s)

DevelopmentPlan

Course RequirementsCourse Requirements

Classroom participation:Classroom participation: 2 reports on cases and readings 2 reports on cases and readings Group Project Group Project

- Technology audit of a company, - Technology audit of a company, OROR

analysis of product development analysis of product development processprocess OR assessment of OR assessment of technology potentialtechnology potential

Project ManagementProject Management

RoadshowRoadshowJanuary, 2005January, 2005

Professor Paulo JP Gomes

Universidade Nova de Lisboa Phone: 213-801-600, Email: pgomes@fe.unl.pt,

http://docentes.fe.unl.pt/~pgomes

What is a Project?What is a Project?

A project is a temporary endeavour undertaken to create a A project is a temporary endeavour undertaken to create a unique product or service, consisting of a set of co-unique product or service, consisting of a set of co-ordinated activities pursuing a specific goal with ordinated activities pursuing a specific goal with constraints on time, cost and resources constraints on time, cost and resources

CharacteristicsCharacteristics– unique: not routine operationsunique: not routine operations

– specific start and finish, temporary endeavour: temporary specific start and finish, temporary endeavour: temporary organisationorganisation

– co-ordinated activities: complex, large, multi-disciplinaryco-ordinated activities: complex, large, multi-disciplinary

– specific goal: product, service, eventspecific goal: product, service, event

– constraints: time, cost, resourcesconstraints: time, cost, resources

Construction & InfrastructureConstruction & Infrastructure

Product DevelopmentProduct Development

Event OrganisationEvent Organisation

Typology of ProjectsTypology of Projects

Complexity

Uncertainty

Low High

Low

High

Individual Group Organization Multi-organization National International

Book

Wedding Audit

ViagraR&D

Expedition

EuroTunnel

Space Program

Oil, gas exploration

Car

Airport

Motorway

Car plant

A3XX

Conference

Olympics

Construction

Merger

Market Study

e-technology

X.com

Elections

Meet project objectives, comprising:Meet project objectives, comprising:– scope (performance, quality, customer satisfaction)scope (performance, quality, customer satisfaction)

– time (deadline)time (deadline)

– cost (budget)cost (budget)

Cost

Scope

Time

Project ManagementProject Management

Manage trade-offs by planning, coordinating, Manage trade-offs by planning, coordinating, scheduling and controlling of activitiesscheduling and controlling of activities

Course ObjectivesCourse Objectives

Overall objectiveOverall objective– How to manage and plan projects, taking advantage How to manage and plan projects, taking advantage

of modern information technologyof modern information technology Specific objectivesSpecific objectives

– UnderstandingUnderstanding• why projects succeed or failwhy projects succeed or fail• the importance of project managementthe importance of project management• the concepts, methods, techniques & tools of modern the concepts, methods, techniques & tools of modern

project managementproject management• the critical success factors in different project environmentsthe critical success factors in different project environments• three dimensions of projects: time / resources / customer three dimensions of projects: time / resources / customer

satisfactionsatisfaction

Projects and Project Projects and Project PlanningPlanning

Project Organization and Project Organization and StaffingStaffing

Session 1Session 1

Project Budgeting and Project Budgeting and CostingCosting

Project Scheduling and Project Scheduling and Resource AllocationResource Allocation

Session 2Session 2

From: Three Perceptions of Project From: Three Perceptions of Project Cost (Figure 3)Cost (Figure 3)

Sequencing: Gantt ChartSequencing: Gantt Chart

Project Monitoring and Project Monitoring and ControlControl

Project Portfolio SelectionProject Portfolio Selection

Session 3Session 3

MonitoringMonitoring

Project Management GameProject Management Game

Project Termination and Project Termination and ReviewReview

Session 4Session 4

Course RequirementsCourse Requirements

Case memoCase memo Project Management Exercise,Project Management Exercise, Topic write-up or Final ExamTopic write-up or Final Exam