2013 - Plenum - Aaron Shenhar - Diamond of innovation

Copyright© 2013, Aaron J. Shenhar

The Diamond of Innovation

Planning Projects for Innovation and Success

Aaron Shenhar

Professor of Project and Technology Management www.splwin.com

E-mail: [email protected]

1-201-323-3246

mailto:[email protected]



Part of Strategic Project Leadership® (SPL)

Based on Research on 600+ Projects

Goal of SPL:

» Better Business Results

» Better On-time Delivery


Strategic Project Leadership® The New Science of PM

Business Focus

Inspiring Leadership

Dynamic Innovation

Traditional PM


What is Innovation?

Commercialization of an Idea


What is Innovation?

Commercialization of an Idea


Managing Innovation

Idea Commercialization

Innovation is Change, and Change is Difficult


Innovation

Project

There is no Innovation without a Project

And Every Project is Actually an Innovation


Classical Concepts of

Innovation

Types of Innovation:

» Incremental, Radical, System

» Market, Technology

Most Innovations and most Projects

Don’t Make it


Project Management: What’s Missing?

Traditional Project Management Does Not Deal with Innovation

Assumes that

“One Size Fits All Projects”


The Story of Two Modern Projects

Boeing 787 Airbus A380


Uncertainty


Time

Look at Your Project Uncertainty

Level of Uncertainty


Novelty Complexity

Technology

Pace




Array Assembly

Novelty

Market Innovation

Derivative New to Market

Super-High Tech

High-Tech

Medium-Tech

Low-Tech

Regular

Fast/ Competitive

Time-Critical

Blitz

Platform New to World

System Component

Technology

Technological Innovation

Complexity

System Innovation

Pace

Urgency of Innovation


Initiation Planning Execution Termination

Revise Requirements

Revise Plans

Revise Design

Classical Project Phases


Project Management The Three Major Processes

When do you stop them?

Design Process

Product Requirement Process

Managerial Process


Novelty Types

Innovation in the Market

Complexity

Novelty

Technology

Pace

Derivative Platform New to Market New to World

Less market research

Later requirement freeze

More requirement cycles


Technology Types

Innovation in Technology

Complexity Novelty

Pace

Super-High

Tech

High-Tech

Medium-Tech

Low-Tech

Technology Later design freeze

More design cycles

Stronger Functions

Highly Technical PM


Pace

Novelty

Technology

Complexity

Later Design Freeze

More Design Cycles

Strong Functions

Experienced Technical PM

Complex Organization

Focus on Integration

Formality

Organizational PM Skills

Big Picture Leader Autonomy

Time Control

Pure Project Organization

Strong, Focused Leader

Less Market Research

Later Requirement Freeze

More Requirement Cycles

The Impact of the Diamond Dimensions on

Project Management




Array Assembly

Novelty

Market Innovation

Derivative New to Market

Super-High Tech

High-Tech

Medium-Tech

Low-Tech

Regular

Fast/ Competitive

Time-Critical

Blitz

Platform New to World

System Component

Technology

Technological Innovation

Complexity

System Innovation

Pace

Urgency of Innovation


Segway

Denver Airport


Array System Assembly Com

Complexity

Novelty

Technology

Pace

Derivative Platform NTM NTW

Super-High

Tech

High-Tech

Medium-Tech

Low-Tech

Regular

Fast/

Competitive

Time-Critical

Blitz

Denver International Airport Project

Automatic Bag –

Handling System

Airport

Construction

Project


The Segway Project

Array System Assembly Com

Complexity

Novelty

Technology

Pace

Derivative Platform NTM NTW

Super-High

Tech

High-Tech

Medium-Tech

Low-Tech

Regular

Fast/

Competitive

Time-Critical

Blitz

Dr = (NTW, HT, Sy, F/C)

Da = (Pl, HT, Sy, F/C)

Required style

Actual style


Exercise

Assess the Following Projects: » Walkman

» Boeing 787

» iPod, iTunes Store

» Y2K

» Tata Nano

» Iridium

Define The Diamond Levels

» Novelty, Technology, Complexity, Pace


Walkman


777

787 Boeing 787


IPod

iTunes Store

iPod

iPod, iTunes Store

http://www.amazon.com/gp/product/images/B000COVZD0/ref=dp_image_0/002-5338812-8259216?ie=UTF8&n=1065836&s=audio-video


Y2K


Tata Nano

Technology

Novelty

Pace

Complexity

Regular

Fast/competitive

Time-critical

Blitz

Super-high-tech

High-tech

Medium-tech

Low-tech

Array System Assembly Component Derivative Platform NTM NTW


Iridium 1987-1999 - $7B Loss

Technology

Novelty

Pace

Complexity

Regular

Fast/competitive

Time-critical

Blitz

Super-high-tech

High-tech

Medium-tech

Low-tech

Array System Assembly Component Derivative Platform NTM NTW


The Diamond of Innovation Can Be Used for

»Assessing Markets and Products

»Selecting PM Style and Process

»Communication Language

»Putting a Project Back on Track

»Innovation Based Resources and Slacks


CS Tips on Adaptation and the Diamond

Identify the highest level on each dimension

If in doubt between two levels, select the higher one

Specific levels are typically subjective – company dependent

The bigger the Diamond, the bigger the challenge, the risk, and the opportunity

Higher Diamonds require increased contingency funding

Build your own company’s dimensions



»Easy to Apply and Use

»Will Help Planning Realistically and Better On-Time Delivery

»Obtain the Needed Resources and Necessary Reserves



Strategic Project Leadership®

Aaron Shenhar

Professors of Project Management www.splwin.com

E-mail: [email protected]

201-323-3246, 050-766-9533

Contact Information for

mailto:[email protected]

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2013 - Plenum - Aaron Shenhar - Diamond of innovation

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