 All
projects should have a strong business case that
shows the likelihood of a reasonable return on
investment to the firm. For routine projects and
incremental enhancements in stable markets, this
is usually easy: market research and classic VOC
provide hard data to compute a clear ROI.
However, truly
innovative projects (and even routine projects
in an uncertain economy) rarely have the hard
numbers to support traditional ROI metrics.
While believable market research projections may
be lacking, there still has to be some logic,
otherwise investments in 'blue sky projects' can
lead to 'black holes.'
So how do you justify
investment when so much is uncertain?
By
asking the same questions of all projects, but
shifting the focus of the analysis for the more
uncertain ones, and using judgment and 'soft'
data (e.g., trend information that indicates a
high probability that someone will need a new
product or service) in place of formulas and
hard data.
In this session
Dr. Paap will share a process that grew out of
his work in the 90's with a group of nine major
corporations on how to be more innovative (IBM,
ATT, Dow, DuPont, Xerox, Motorola, and others).
He will discuss the importance of shifting gate
reviews from focusing on the plan for
traditional projects to focusing on the
opportunity for the more innovative. He will
also walk you through six questions (NOMMAR)
used to develop the business case and guide gate
reviews for both types of projects:
N:
Is there a customer
need? (someone will want it)
O: Are their technology
options? (someone can meet
needs)
M: Is there a potential
market? (someone will pay)
M: Is there a business
model? (someone could do it)
A: Do we have a realistic
approach? (we could do it)
R: Is it relevant? (we
should do it)
The same
questions are asked at every gate for all
projects -- with a different expected 'quality'
of the answer (from good story to good numbers)
and focus (plan versus opportunity), as the
projects move from certain to uncertain markets.
These answers will guide your business case as
well as your process.
Dr. Paap will
tell you how to apply these principles to
opportunity evaluation in today's unpredictable
climate. Following an overview of the basic
process he will answer your specific questions
on the approach how and it can be adapted to
your setting.
* Participants
will receive a copy of his article,
"Anticipating Disruptive Innovation," which
won IRI's annual Maurice Holland award for best
article published in Research Technology
Management
in 2004.
Dr. Paap also leads one of
Management Roundtable's highest-rated workshops,
Technology Scouting to Accelerate Innovation,
next offered
April 2010 in Boston, MA. Don't miss this
chance to spend extended discussion time with
one of the foremost authorities on innovation
and external technology sourcing. Seating
is limited.
About Jay Paap
Jay Paap is
President of Paap Associates, serves on the
faculties of the Industrial Relations Center at
Cal Tech and the Executive Program at The Sloan
School (MIT), is a Fellow of The Society of
Competitive Intelligence Professionals, and a
PDMA Certified New Product Development
Professional. He received his Ph.D. from MIT's
Sloan School of Management with concentrations
in technology management and organization
design. Dr. Paap has been active in the
management of technology for 35 years, and has
consulted with industrial and governmental
organizations for over 30 years. Prior to
founding Paap Associates, Jay was Partner at
Data and Strategies Group, Principal at
Ampersand Ventures, Director of Corporate
Consulting at Venture Economics, and Associate
Director of the Technology Management Group at
Pugh-Roberts Associates. |
