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How to Manage an Innovation Project | | |
Three Skills to Become More Effective
There is often confusion between the jobs of a product manager and a project  manager. Yet at the root of it, any New Product Development (NPD) effort is a project. Projects are defined by these characteristics:
- A distinct starting and ending point,
- Temporary in nature (yet may be long in duration),
- Creates a unique product or service, and
- Involves a cross-functional team.
Certainly, the development of a new product meets this definition. So,
In this paper, we'll discuss three important skills for a project manager.
- Balance the triple constraint,
- Kill bad ideas, and
- Conduct post-launch reviews.
GNPS Premier Members can access this dynamic thought leadership paper in pdf format. All GNPS Premier members SAVE on NPDP Certification courses.
For those of you that haven't yet taken advantage of the great benefits of GNPS Premier membership, you can dowonload a pdf copy of How to Manage an Innovation Project for just $3.95 (sales tax included).
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Greetings!
As we move into the last carefree days of summer, it's time to refocus our energy on innovation. One of the greatest challenges facing a new product development professional is how to value a long-te rm, risky project.
This month's selected feature is a thought leadership paper on "Real Options for NPD" You might also enjoy a recent, popular innovation analysis on Product vs. Project Management: What's the Difference?
This month's recommended reading gives you the background in financial calculations for valuing R&D programs. You will refer to "The Valuation of Technology" by F. Peter Boer often.
And, speaking of creativity, our Innovation Fun Fact this month takes you on a roller coaster ride. Enjoy!
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Real Options in NPD | | |
Intuitively, many NPD practitioners and R&D managers recognize that higher risk projects have the greatest potential for reward. On the other hand, many financial methods favor shorter-term, less risky investments, often referred to as incremental improvements.
 Real options can provide a link between the intuition of NPD practitioners with formalized financial assessments. Options are common throughout the financial industry, yet have only recently been integrated into project evaluations. Real options are frequently used in conjunction with decision trees, a more commonly understood process for NPD evaluation.
GNPS Premier Members can access this dynamic thought leadership paper in pdf format. All GNPS Premier members SAVE on NPDP Certification courses.
For those of you that haven't yet taken advantage of the great benefits of GNPS Premier membership, you can download a pdf copy of Real Options for NPD for just $6.95 (sales tax included).
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Innovation Fun Fact | |
Rollercoasters
In honor of the dog days of summer, August brings a quick look at roller coasters. The first known rollercoaster was launched in January 1885, all made of wood. That first  roller coaster was on Coney Island and was built off the idea of scenic rides on mining trains. Today's coasters are made of steel and go faster and higher than ever!
Click on the image of a roller coaster at the left for a short video to learn about roller coasters. (A 3.5-minute video.) |
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Recommended Reading | | |
The Valuation of Technology by F. Peter Boer
In this classic text, Peter Boer mixes the financial insights of the business world with R&D. You will learn how to evaluate financial statements and how to value R&D programs from different perspectives.
Later chapters add the framework for decision trees and real options. A recommended book for innovation managers! |
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