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E I G H T H  A N N U A L  C O N F E R E N C E
Product Development and R&D Metrics
Quantifying Innovation, Portfolio Value and Resource Capacity
November 3-6, 2003 / Chicago, IL

CASE STUDIES:


Integration of Intangibles Into Product Development

John F. Ryder
Process Leader

Dow Chemical

New Product Development processes have improved the ability of corporations to document, communicate and complete the requirements for product development in a consistent manner. Yet, in spite of this, companies are still challenged to improve the utilization of all their assets (including intangibles) into their product development efforts. Intangibles, such as intellectual assets, employees’ know-how and Research & Development are important to new product development, yet often challenging to access and leverage. This presentation will focus on how Dow has addressed this challenge and how integration of intangibles into their product development efforts has resulted in improved offerings and new product development successes.


IBM's Innovation Maturity Management System

David S. Coughlin
Executive Consultant
IBM
&
J. Thomas Luin
Business Transformation Achitect

IBM

A technique for assessing the execution maturity of an innovation management system within the IBM corporation will be presented. The framework for the assessment is based on industry best practices and how they apply in managing emerging business opportunity investments, along with the awareness for change toward optimal execution.  The assessment model has been created out of the need to establish and measure execution consistency across a number of emerging business opportunity investment areas and to establish a model for jump starting new executive teams looking at new business opportunities.  The best practices used will be discussed, along with the tool design used for assessment.

Dave Coughlin is an Executive Consultant in the IBM Corporate Integrated Product Development (IPD) team. He has a broad range of experience and has held a variety of management and technical support positions in his 25 years with IBM.  Mr. Coughlin helped IBM re-engineer the product development processes. He facilitated the development and refinement of the primary product development processes and several key enabling processes. New team based roles and responsibilities were also developed to complement this new process. This development process was then tailored to support the development of emerging business opportunities. Mr. Coughlin also developed a change management technique to gauge business transformation progress. He has published an article entitled "A Tool for Managing Business Transformation". This change management approach has been adapted to manage the cultural change necessary to support new business development. Mr. Coughlin joined IBM after seven years in the Army as a military intelligence officer. He earned a bachelor of science degree from the United States Military Academy at West Point and a masters of administrative science from the University of Alabama in Huntsville.

Tom Luin is currently a business transformation architect in the IBM Corporate Integrated Product Development (IPD) team.  His primary work efforts are focused on architecting and deploying the Emerging Business Development (EBD) process in support of project investments for Emerging Business Opportunities (EBO).  His secondary focus is coaching executive investment boards in execution of the EBD and IPD processes for EBOs.  Tom has worked for the last six years as a Group Advisor for Systems Group and Microelectronics, along with participating in numerous business unit IPD and project assessments.  Tom's additional experience is comprised of leading marketing teams and new product development teams in IBM, R&D and new product/process development teams in microelectronics for telecommunications in Nortel, co-leading a new start up microelectronics operation for seismic recording in Litton Industries, and he started his engineering career in microelectronics packaging for pacemakers in Medtronics. Tom has held positions in the International Microelectronics and Packaging Society as  National Technical Committee Chair, Symposium Technical Chair, Symposium Awards Chair, National Education Committee Chair, and Chapter President.   Tom received his marketing education by attending IBM's inaugural Marketing University program and attended Arizona
State University, majoring in Business Administration.


Using the Right Metrics to Align Product Investments and Return

Guy MerrittGuy Merritt
Director of Program

Management
Tellabs

Many of us in the high tech industry, particularly in telecom, have been weathering a downturn unlike anything we have experienced before. This downturn has forced us to take a hard look at how we do business: externally and internally. In today's business climate, all operations are scrutinized for efficiencies which typically translates into cost reductions. When cost reductions must be made, all too often companies believe that process and metrics programs should be shelved to their own detriment. Instead, companies should re-examine if they were investing in the right processes and metrics to effectively run the business.

This presentation will focus on how to define a set of metrics to help maintain a view of where your money is being invested, where your customers are spending their money and the expected return on your investment.

Guy is the Director of Program Management for all North American product development efforts. He has an extensive background in project management and process development with a special focus on risk management. Guy is the co-author of the book, Proactive Risk Management: Controlling Uncertainty in Product Development which was named by Soundview's Executive Book Summaries as one of the 30 best business books of 2002.


Key Metrics for Monitoring Innovation and Pipeline Performance

Tony LemusAnthony V. Lemus
Director, Advanced R&D

Advanced Sterilization Products
(a Johnson & Johnson Company)

Tony will review the importance of portfolio management and provide case studies of pipeline overflow. He will also examine New Product Development (NPD) metrics to link the NPD pipeline to business results and will provide examples of scorecard utilization, the selection process for R&D projects, pipeline health indicators for new products, and risk management. In addition, Tony’s presentation will include numerous illustrations of Six Sigma integration into the NPD process, such as SIPOC process maps, design scorecards, QFD (Quality Function Deployment), and metrics deployment.

Tony will also explain the link between innovation and portfolio management, covering tropics such as idea filtering, idea funneling, and idea parking lots. Additionally, Tony will elucidate the use of portfolio management metrics to monitor the maturing of ideas as they go through the NPD pipeline.

Anthony is the Director of Advanced Research and Development at Advanced Sterilization Products, a Johnson & Johnson company. He has 16 years’ experience in new product development, specializing in the product concept creation process and in product commercialization. Anthony is a control systems engineer with a Bachelors of Science in Engineering Physics from Santa Clara University in California, and a Masters of Science in Physics from the University of California, Irvine. In addition to his current employment at Johnson & Johnson, Anthony has also worked for Allergan, Inc. and Pfizer, Inc., where he was responsible for medical product development in the areas of cataract surgery, electro-surgery, and surgical ultrasonics. Anthony is a certified Six Sigma Black Belt and is utilizing process excellence techniques to assist with portfolio management and to measure NPD pipeline health. Some examples of Anthony’s process implementation in the NPD funnel include a rapid concept evaluation process, innovation business metrics, incorporation of design excellence into project deliverables, and the incorporation of IDweb into the NPD tracking system.


Project Metrics Dashboard: Balancing Scope, Schedule and Resources

Russ Strobel
Director of Project Management

Commercial, Government and Industrial Sector
Motorola, Inc.

The primary role of a project manager is communications with all project stakeholders, including team members and project sponsors. Motorola has developed a project metrics dashboard as part of their M-Gate system and product development process. This standardized dashboard is used at Division, Group and Sector project reviews. It depicts schedule variance, scope control, resource variance and milestone or earned value tracking. The dashboard serves as a standardized project management tool to effectively communicate project health and schedule, scope and resource adherence to plan, as well as imposing our standard project development methodology.

Key learnings from this session will be understanding the value of a common product development system in your operation, and how you can develop and use standard project metrics to ensure your projects are in control and will complete on time, with specified scope using the resources assigned at the start of the project.


Improving NPD Execution - Resource Capacity vs. Demand

Emery PowellC. Emery Powell
NPD Manager

Texas Instruments

A primary cause of time to market delays for new product development (NPD) is inadequate management of resource capacity versus the demand, particularly with respect to critical path tasks on a project's schedule.

Marketing and sales are driven by the desire to capture every new product opportunity they find. Management is driven by the desire to increase NPD throughput, release as many new products as possible, and capture the revenue. The typical response to these needs is to rapidly feed new product opportunities into the pipeline. The expectation is: More IN = More OUT. Yet, exceeding throughput capacity all too often leads to a clogged pipeline.  So how can we manage NPD capacity 3, 6, or 12 months in the future? How can we know what the critical path demand is for a particular type of resource or for a single resource, months in advance when NPD is inherently a highly variable environment? How can we measure and assess the impact of the resource demand and our capacity constraints on execution success? 

Enterprise and portfolio level tools that can provide this management capability are now available for new product development. This presentation will present the results of a recent pilot deployment of one of these tools in a TI business and discuss the gains achieved.

Emery is currently the New Product Development Manager for one of Texas Instrument's billion dollar businesses. Previous experiences related to this presentation have included the merger and integration of the NPD capability of multiple large businesses, and large scale cycle time, six sigma, project management, and enterprise performance management improvement initiatives. He has managed many R&D and NPD Projects over his career for multiple companies, and he has been a principle in launching two new companies.