Innovation Project Management

HAROLD KERZNER, PhD is Senior Executive Director for Project Management at the International Institute for Learning (IIL), a global learning solutions company offering professional training and consulting services worldwide. Dr. Kerzner's profound effect on the project management industry inspired IIL to establish the Kerzner International Project Manager of the Year Award, which is presented to a distinguished PMP (R) credential holder or global equivalent each year. He is author of several respected books on project management, including Project Management: A Systems Approach to Planning, Scheduling, and Controlling and Project Management Best Practices: Achieving Global Excellence.

Preface xv 1 Introduction to Innovation Project Management 1 Introduction 1 Definitions for Innovation 2 The Business Need 4 Innovation Literature 7 Project Management Literature 8 Innovation Benchmarking 9 Value: The Missing Link 10 Innovation Targeting 12 Timeline for Innovation Targeting 13 Innovation in Small Companies 14 Seven Critical Dimensions for Scaling Project Management Innovation 14 Implications and Issues for Project Managers and Innovation Personnel 17 2 Types of Innovation 19 Introduction 19 Incremental versus Radical Innovation 20 Understanding Innovation Differences 21 Product Development Innovation Categories 21 Closed and Open Innovation 23 Crowdsourcing 26 Co-Creation Innovation 27 Open Innovation in Action: Airbus and Co-creation Partnerships 33 Value (or Value-Driven) Innovation 35 Agile Innovation 36 Agile Innovation in Action: Deloitte 37 Agile Innovation in Action: Star Alliance 46 Government Innovation 48 Humanitarian/Social Innovation 51 Social Innovation in Action: Hitachi 52 Nontechnical Innovation in Action 54 Other Categories of Innovation 56 Role of the Board of Directors 59 Finding an Innovation Project Sponsor 60 Implications and Issues for Project Managers and Innovation Personnel 60 3 Innovation and Strategic Planning 63 Introduction 63 Role of the Innovation Project Manager in Strategic Planning 64 Role of the Portfolio PMO 64 Types of Strategies 65 Role of Innovation in Strategic Planning 66 Role of Marketing in Strategic Innovation Planning 67 Product Portfolio Analysis 68 Identifying Core Competencies Using SWOT Analysis 74 Innovation Project Management Competency Models in Action: Eli Lilly 77 Marketing's Involvement with Innovation Project Managers 88 Product Life Cycles 91 Classification of R&D Projects 91 Research versus Development 92 The Research and Development Ratio 93 Offensive versus Defensive Innovation 95 Modeling the R&D Planning Function 96 Priority Setting 99 Contract R&D 101 Nondisclosure Agreements, Secrecy Agreements, and Confidentiality Agreements 103 Government Influence 103 Sources for Innovation Technology 104 Sources of Ideas 105 Project Selection Issues 107 Economic Evaluation of Projects 108 Project Readjustments 111 Project Termination 112 Implications and Issues for Project Managers and Innovation Personnel 113 4 Innovation Tools and Processes 115 Introduction 115 New Product Development 116 The Fuzzy Front End 117 Line of Sight 119 Risk Management 119 The Innovation Culture 123 Innovative Cultures and Corporate Leadership 126 Idea Generation 127 Spinoff Innovations 128 Understanding Reward Systems 129 Innovation Leadership in Action: Medtronic 130 IPM Skills Needed 133 Design Thinking 135 Brainstorming 138 Prototypes 141 Creativity and Innovation Fears 143 Innovation Governance 144 Transformational Governance 145 Balanced Scorecard 146 Strategy Maps 147 Innovation Portfolio Management 148 Innovation Sponsorship 151 The Innovation Team 151 Virtual versus Co-located Innovation Teams 152 The Need for PM 2.0 and PM 3.0 153 Implications and Issues for Project Managers and Innovation Personnel 156 5 From Traditional to Innovation Project Management Thinking 159 Introduction 159 Information Warehouses 160 Innovation Planning Overview 163 Innovation Assumptions 167 Validating the Objectives 169 Life-Cycle Phases 171 Work Breakdown Structure 175 Budgeting 175 Scheduling 176 Scope Change Control 176 Communication 178 Communication Innovation in Action: Arcadis 179 Innovation in Action: NTT Data 187 Solution Innovation in Action: Philips Business Group Monitoring and Analytics and Therapeutic Care Services 190 Innovation in Action: Dubai Customs and the Accelerated Exploratory Lab 202 Innovation in Action: Merck 207 Innovation in Action: Repsol 210