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1
WinOvations, Inc. Copyright 2000 [email protected]
Tel: 1-517-832-0075, FAX 1-530-831-5650
Beyond “Stage-Gate:”Beyond “Stage-Gate:”Faster and More Profitable Faster and More Profitable
New Business DevelopmentNew Business Development
ECMRA New Contenders, New Approaches
Greg Stevens, President, WinOvationsSM, Inc.October 9-11, 2000 London
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WinOvations, Inc. Copyright 2000 [email protected]
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OutlineOutlineA. State of the Art: “Stage-Gate” Processes
B. Killer Myths Inhibiting the Fuzzy Front End (F.F.E.) of New Business Development (NBD)
C. Debunking Myths & Achieving Six Sigma Improvements in New Business Development In Speed & Profitability
D. Specific Applications
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A. Stage-Gate® Systems Are “State of A. Stage-Gate® Systems Are “State of the Art” for New Business Developmentthe Art” for New Business Development
Today’s NBD Processes First Published Broadly in 1957-58* SC Johnson, Booz-Allen Little New Today
Widely Adopted in Last 20 Years By 60% of Firms
Per PDMA “Best Practices” Study “Stage Gate ®”: Trademark of Robert G. Cooper
*Booz-Allen & Hamilton Inc., Jones, Ralph W. 1958. Management of newproducts. The Journal of Industrial Engineering. IX (5). October. 429-435.*Johnson, S. C. and Conrad Jones. 1957. How to organize for new products. HarvardBusiness Review. # 57305. May-June. 49-62.
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Many Grains of Truth In Current NBD Paradigm
And Much Confusion “Get the Assumptions Wrong, and Everything that Flows from Them Is Wrong.”
Peter F. Drucker, “Management’s New Paradigms” Forbes, Oct. 5, 1998, pp. 152-177
B. Several Myths Inhibiting New B. Several Myths Inhibiting New Business Development (NBD) Business Development (NBD)
TodayToday
5
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Problem: “NBD” (& Other) Experts Problem: “NBD” (& Other) Experts Are Are OftenOften Wrong Wrong
WSJ Survey of Expert Economists Forecasting 30-Year Treasury Interest Rates (WSJ: 1/4/99):
Got the Direction of the Changes Right Only 28% of the time 9 of 32 Forecasts: 1982-1999
When Experts Said Rates Would Rise, 72% of the Time They Fell
30 Technology Companies Highly Recommended in 1968 Lost an Average of 98.3% Value in 3 Years*
Same Happening Today for “Dot Com’s:” Bankrupt:
Boo.com; SurfBuzz.com; Red Rocket; Epidemic Marketing.com
*Devoe, Raymond F., The Devoe Report, “More Bugs on the Windshield of Financial Life (Past Visits To the Elephant’s Graveyard), Vol. 21, #2, Jan 15, 1999.
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Myth #1: Stage-Gate Processes Myth #1: Stage-Gate Processes Work (Better than Nothing)! Work (Better than Nothing)!
Reality: No Correlation Between Companies with Stage-Gate or other NPD Processes and Commercial Success*
Per Latest IRI/CIMS R&D Database Study: *Research•Technology Management, Roger L. Whiteley, Alden S. Bean
and M. Jean Russo. July-August, 1998, 15-16. & Even Per R.G. Cooper’s Own Research**
Stage-Gate®: Trademark of Robert G. Cooper • **J. Prod. Innov. Manag. 1999; 16: 115-133
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Doing ActivitiesDoing Activities WellWell in the F.F.E. of NBD in the F.F.E. of NBD Correlates with Success, But Correlates with Success, But Having a Having a
Stage-Gate Process Stage-Gate Process Does NotDoes Not Stage-Gate Process “Success Factor Studies” Are Like Saying: If You
Score a Lot of Points, This Correlates with Winning. But Installing a Stage-Gate System Does Not Ensure that the F.F.E.-NBD
Activities Are Done Any Better than Before: Most of the Stage-Gate Activities Were Already Being Done Before, Just Less
Formally Even After Installation, Most Firms Do Not Rigorously Use the Process (So In
Reality there Is Little Change) & The People Doing & Managing the Activities Are All the Same
Yet the Players Make an Enormous Difference, both in Sports and NBD
Little Change Brings Little Benefit
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Reality: Stage-Gate Processes Little Reality: Stage-Gate Processes Little Changed Since 1950’s in Either Changed Since 1950’s in Either
ProcessesProcesses or or ResultsResults Reality: No Measurable Improvements in 40 Years!
In Spite of All the “Changes” & “Best Thinking” Indicating Few Substantive Changes
& Same Globally: Americas, Europe, Asia 60% Success from Launch*
Same Globally: Americas, Europe, Asia Per Robert Cooper (3/99 JPIM), & Many Other Studies
11% Success from Early Development Stage One in Nine Success Rates
*Cooper et al, J. Prod. Innov. Manag. 1999; 16: 115-133
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Like the Fable ofLike the Fable of The Emperor’s ClothesThe Emperor’s Clothes
No Better Off With, or Without Them
Also Like Medicine in the 1800’s: When Patients Staying Home Got Well Just as Often as Those
Visiting a Doctor
And Witch Doctors
“If a Factory Produced Such Low Quality, it Would be Shut Down.”
Cooper et al, J. Prod. Innov. Manag. 1999; 16: 115-133
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“Insanity Is Doing the Same Thing Over and Over and Expecting Different Results.”
Benjamin Franklin
(40 Years with No Improvement Would Probably Qualify for the “Over and Over” Part)
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Myth #2: “Most NBD Efforts Myth #2: “Most NBD Efforts Do Do Succeed!”Succeed!”
Title of Article, by Robert G. Cooper*Title of Article, by Robert G. Cooper*
Reality: Most NBD Efforts Fail 89% Fail from Early Development Stage
Many Examples Iridium Satellite Phones
• Poor F.F.E. NBD Activity• Now Bankrupt
F.F.E. of NBD Is the Most Difficult of All Business Activities**
*R.G. Cooper et al, Research Management, Vol. 26: 20-25, Nov.-Dec. 1983**G. Stevens et al, “Creativity + Business Discipline = Higher Profits Faster from NPD,” J. Prod. Innov. Management, Vol 16: 455-468, 9/99
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60% Success Rate from Launch
Unchanged in 40 Yrs. In Spite of All the “Improvements”* **
60% Success Rate from Launch
Unchanged in 40 Yrs. In Spite of All the “Improvements”* **
Universal Industrial Success CurveUniversal Industrial Success Curve Shows Shows Most NBD Efforts Unsuccessful*Most NBD Efforts Unsuccessful*
1
10
100
1000
10,000
Nu
mb
er o
f Id
eas
1 2 3 4 5 6 7
Stage of NBD Process
3000 Raw Ideas (Unwritten)
300 Ideas Submitted
125 Small Projects
9 Early Stage Devel.
4 Major Devel.
1.7 Launches1 Success
** Hultink, Erik Jan; Susan Hart, Henry S.J. Robben and Abbie Griffin. Launching new products in consumer and industrial markets: a multi-country empirical international comparison. Product Development and Management Association Research Conference Proceedings, October, 1997, 93-126
*Reference: G. Stevens and J. Burley, “3000 Raw Ideas = 1 Commercial Success!”
Research•Technology Management, 40(3): 16-27, May-June, 1997. Runner-Up, IRI
“Best Paper of the Year.”
13
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Myth #3: Failures Are Good!Myth #3: Failures Are Good! Myth: “If You Are Not Failing Enough, You
Aren’t Trying Hard Enough” Like Saying “Bad Quality is Good!”
Reality: “There Is a Quality Crisis in Product Innovation”
R.G. Cooper: *J. Prod. Innov. Manag. 1999; 16: 115-133 Because Most New Business Efforts Do Fail Today, We
Desperately Search for Excuses! What We Really Need:
More Successful Systems; Higher Quality Results, & Profits
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Profiting From Failures Can Happen (the Grain Profiting From Failures Can Happen (the Grain
of Truth), of Truth), But But MostlyMostly Failures Are Failures Are Routine & Routine & Devastatingly WastefulDevastatingly Wasteful
Average Life of Fortune 500 Co’s is 40 Years One Major Chemical Co.:
‘82-’92: Spent $13 Billion “With No Contribution to Bottom Line” per CEO
‘60’s-’70’s: Spent $16 Billion on R&D, “Technological Black Hole” per Wall St. Journal
While Doing “Everything Right” per Today’s Standard Practices Frightening
Massive Layoffs: Over 30%
15
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Myth #4: Myth #4: NBD Processes Work NBD Processes Work LinearlyLinearly
Mythic Linear View of Traditional “Stage-Gate®” NBD Processes:
Idea >> Stages >> Launch
Myth #5: “Our Stage-Gate Is Unique” Reality: 5-7 Stages in Most Stage-Gate Processes Reality: Most Companies Just Reinventing Cooper’s (or 1958 S.C. Johnson) Linear
“Stage Gate” Models, & Spending Millions Doing It.
7654321
*Trade Name of R.G. Cooper & Associates
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Reality: NBD Is Reality: NBD Is Non-LinearNon-Linear in Early Stages. in Early Stages.Requires Requires Leaps of Creativity, Leaps of Creativity,
“Morphing,” “Morphing,” To Identify WinnersTo Identify Winners
Stages & Gates Still Exist but Real View of NBD Process Is Non-Linear, Especially in Fuzzy Front End (F.F.E.)Stages & Gates Still Exist but Real View of NBD Process Is Non-Linear, Especially in Fuzzy Front End (F.F.E.)
7654321
432
432
Non-Linear F.F.E. Linear
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Myth #6:Myth #6:
Everyone Is Creative!Everyone Is Creative! Or Can Be Or Can Be TaughtTaught to Be Creative to Be Creative
Fa La!Fa La!
Therefore Everyone Can Create New Products in the “Fuzzy Front End” of NBD
Just Read the Manual, Follow the Steps
18
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Myth #6 Restated: Myth #6 Restated:
“The Environment (Nurture) “The Environment (Nurture) Largely Largely Determines Determines Personality”Personality”
67% of Americans Believe Can Readily Change Personalities* Popular belief, & “Politically Correct”
Standard Psychology Texts of 1970’s & ’80’s: Taught Individual Personality Was Determined Largely by Environment, or Nurture:
Said: “If Identical Twins Raised Apart Could Be Studied, Their Personalities Would Be “Enormously Different**’’
*Roper Reports, 1993, 93-8 (November), Roper Starch Worldwide Inc., NY, NY**Introduction to Personality, Walter Mischel, Holt Reinhart and Winston, 1976, 2rd Ed., p. 290-291
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Reality: ~80% of Core Unchanging Reality: ~80% of Core Unchanging Adult Personality & Creativity Adult Personality & Creativity
Determined by GeneticsDetermined by GeneticsStable Core Adult
PersoNality
Overall Personality
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Data for New Genetic Paradigm of Creativity:Data for New Genetic Paradigm of Creativity:2 Key Experiments Addressing Effects2 Key Experiments Addressing Effects of of
Nature and Nurture on Personality:Nature and Nurture on Personality:
1. Study of Personality of Identical Twins Raised Apart Same Genetics, Different Environments
Separated at 3 Months Key Review Article: 1990 Science:*
2. Study of Adoptees Different Genetics, Similar Environments
The “Reverse Experiment” of Twins Raised Apart
*Thomas J. Bouchard, Jr., David T. Lykken, Matthew McGue, Nancy L. Segal, Auke Tellegen.. Sources of Human Psychological Differences: The Minnesota Study of Twins Reared Apart. Science. 1990. 12 October. 250. 223-228.
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Reality: Identical Twins, Raised Apart Reality: Identical Twins, Raised Apart Have Have Very Similar PersonalitiesVery Similar Personalities
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Reality: Identical Twins Reality: Identical Twins Raised Raised ApartApart Are Are As Alike As Those As Alike As Those
Raised TogetherRaised Together Both Fire ChiefsBoth Fire Chiefs Both BachelorsBoth Bachelors Both FlirtsBoth Flirts Both RaucousBoth Raucous
““We kept making the same We kept making the same remarks at the same time, and remarks at the same time, and using the same gestures. using the same gestures. It was spooky.”It was spooky.”
Suggests Zero Suggests Zero Contribution from Contribution from Childhood EnvironmentChildhood Environment
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EEG Brainwaves of Identical Twins Raised Apart Show EEG Brainwaves of Identical Twins Raised Apart Show 95% Correlations95% Correlations * *
Similarity Due toSimilarity Due to Genetics, AsGenetics, As Share Share No Common NurtureNo Common Nurture After Separation After Separation
Identical Twins Raised Apart Non-Identical Twins Raised Together
*“How Individual Are Human Brainwave Patterns?” by H.H. Stassen, Psychiatric University Hospital Research Department,
Zurich, Switzerland, 1992 p. 75 & 83.
95% Correlation95% Correlation
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Correlations Between Correlations Between AnyAny Environmental Factors During Environmental Factors During
Upbringing, and Adult Personalities Upbringing, and Adult Personalities Are Totally Lacking: Are Totally Lacking: ZeroZero
True For Adopted Identical Twins Raised Apart & For Adoptees in Same Household Environment
“Reverse Experiment” of Identical Twins Raised Apart: No Genetic Similarity, But Same Environment During Childhood.
*Thomas J. Bouchard, Jr., David T. Lykken, Matthew McGue, Nancy L. Segal, Auke Tellegen.. Sources of Human Psychological Differences: The Minnesota Study of Twins Reared Apart. Science. 1990. 12 October. 250. 223-228.
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New Data Is Remarkably
Consistent Supporting Strong Genetic Basis
for Personality & Creativity
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Re-emerging “New” Paradigm: Re-emerging “New” Paradigm:
“Genetics Is the Most Powerful Determinant “Genetics Is the Most Powerful Determinant of Most Psychological Traits*”of Most Psychological Traits*”
“New” Since Plato, Christ, Buddha, Schumpeter, Maslow...
“This Sudden Switch...From a Belief in Nurture, in the Form of Social Conditioning, to Nature, in the Form of Genetics and Brain Physiology Is the Great Intellectual Event ... of the Late 20th Century.”
“The Fix Is in! We’re All Hard Wired.” Tom Wolfe, Author, Forbes ASAP, December 2, 1996, p. 218
*Bouchard, Jr. Thomas J., “Twins and Type,”Presentation at the Association for Psychological Type, 10th Biennial International Conference, July 6-11, 1993, Long Beach, CA
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Myth #7: That Personality & Myth #7: That Personality & Creativity Can Be Creativity Can Be LastinglyLastingly Taught Taught
Reality: It Is More Productive to Teach Business Discipline to Creative Types Than to “Teach” Creativity (Largely Genetic)
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We Are All “Tall...” And Can All Be Taught
to Jump a Little Higher...
But... Only a Few Can Play in the World-Class NBA
So: So: Is Everyone Is Everyone Creative?Creative?
Reality: Only In the Reality: Only In the Sense that Sense that Everyone Everyone
Is TallIs Tall
Willy & Wilt: Differently Gifted
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C. Achieving C. Achieving
Six Sigma Six Sigma ImprovementsImprovements
in Speed & Profitabilityin Speed & Profitability By Incorporating Latest By Incorporating Latest
Thinking into the F.F.E. of NBDThinking into the F.F.E. of NBD
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Could Could Personality Personality
TraitsTraits of ofIndividualIndividual Analysts Analysts
Involved in the Involved in the Early StagesEarly Stages 1-4, or “Fuzzy Front 1-4, or “Fuzzy Front
End (F.F.E.) of NBD End (F.F.E.) of NBD Affect Affect ProfitsProfits When Later When Later
Commercialized?Commercialized?
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Population Studied by Population Studied by WinOvationsWinOvationsSMSM::
From a Fortune 500 Chemical Co. Dow Chemical
69 F.F.E.-NBD Analysts & Projects Profiled >95% of Analysts & Projects Measured
267 Staged Projects Spanning 10 Years 1984-1994: Gave Time to Measure Profits
In Europe and North America In Effect a 10 Year, $20 Million Experiment
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Consistent Process Used by All Consistent Process Used by All F.F.E.-NBD Analysts EvaluatedF.F.E.-NBD Analysts Evaluated
Evolved from Planned Innovation Opportunity Analysis Bacon & Butler, 1982 Testing Critical NBD Hypotheses, or “Draft Propositions:”
Need Value Opening Advantage Fit
Rigorous Training & Coaching Through 1-2 Projects Staged Analyses, Periodic Management Review “Gates”
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Gut-Level-Screen
``
Ideas PrioritizedDraft Propositions
Winning Tactics
Profits
Winning Actions
WHAT ARETHE SYSTEM
COSTS?`
WHAT IS THEVALUE OFMEETING
UNMET NEEDS?
HOW IS THEFUNCTION
DONE?
WHAT ARE THE SPOKEN UNMET
NEEDS?
2.
Gap-Analysis
Idea Management
Unspoken NeedsNew Ideas
Stages: Ideation Shaping Analysis Validation Develop & Implement
Gut-Level-Screen
““Fuzzy Front End” (F.F.E.) Fuzzy Front End” (F.F.E.) of NBD Process:of NBD Process:
End of End of Individual’s Individual’s
F.F.E. AnalysisF.F.E. Analysis
Success-Wheel
Individual Analyst Predominates Individual Analyst Predominates Teams PredominateTeams Predominate
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Personality of Analysts in the F.F.E. of Personality of Analysts in the F.F.E. of NBD Was Measured Using MBTINBD Was Measured Using MBTI®®
Instrument & Correlated with Profits Instrument & Correlated with Profits
Two MBTI Personality Measurements Correlated With NBD Profits Earned After Project Was Later Developed & Commercialized by the Business: “N” for Intuition (Vs. “S” for Sensory) “T” for Thinking (Vs. “F” for Feeling)
No Benefit from Including Other Two Personality Measurements: • E/I (Extroversion – Introversion), or • J/P (Judging – Perceiving)
35
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Result:Result: Rainmaker-IndexRainmaker-IndexSMSM* * (Based on MBTI(Based on MBTI®®))
An 85 Point Increase in the Rainmaker-Index Correlates with $8.7 Million Additional Profits Earned Per Analyst*
Corresponds to the Difference Between the Mean Scores of the Top Third and Bottom Third of the Rainmaker-Index
Rainmaker-Index Also Correlates with MBTI Creativity Index: Rainmakers are Highly Creative*
Rainmaker-Index: Service Mark, WinOvations, Inc.
*See References: #2 & #6 by WinOvations, At End of Presentation. Selected as “Outstanding Research Paper” from October, 1997 PDMA Research Conference
Mean Rainmaker-Index Scores of F.F.E.-NBD Analyst Groups
Top 1/3 (23 Analysts)
= 70.4
-78 Min. 102 MaxBottom 1/3
(23 Analysts)= -14.7
Middle 1/3 (23 Analysts)
= 27.8
Top 1/3 (23 Analysts)
= 70.4
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RainmakerRainmakerSMSM Index:Index: Correlates Strongly With Later NBD Profits Correlates Strongly With Later NBD Profits
(Even Better Than MBTI®-CI)(Even Better Than MBTI®-CI)
RainmakerIndex
$0.93$0.09
Times MoreEffective,
Top Vs. Bottom Third
95 X95 X
11 X11 X
Bottom Third
Middle Third
Top Third
$8.23
MBTI-CIIndex
$1.37$0.65 $7.37
Profit per Analyst, $ Millions
Rainmakers!
PersonalityIndex
N = 23 Analysts N = 23 Analysts N = 23 Analysts
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All All Personality Types Needed in Personality Types Needed in Business DevelopmentBusiness Development
“Rainmakers” (With Business Discipline) Needed Having Business Discipline Training & Coaching Starters: For the “Fuzzy Front End” of New Business Development
Many Other Types Also Needed Finishers: For Later Stages of New Business Development and Implementation
In Fact: Need More of Other Types than Rainmakers Because Later Development Stages Take Far More Effort
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Analysts’ Recommendations After Detailed Analyses StageAnalysts’ Recommendations After Detailed Analyses Stage
Consistently Profitable Consistently Profitable When Later When Later Developed & CommercializedDeveloped & Commercialized
97% of Positive Recommendations from F.F.E. of NBD Process Later Commercialized Were Profitable
Vs. 11% Typically from Stage 4 of 7 Stages on Success Curve
More Than a Six Standard Deviation Improvement Vs. Benchmark “Universal Success Curve” for NBD
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$$ Profits97% of Time,
>SixSigma Improvement
$$ Profits97% of Time,
>SixSigma Improvement1 Effort with1 Effort withBest PracticesBest Practices
1 2 3 4 5 6 7 8 9
Profits Profits 11% of Time11% of Time
9 Efforts Needed with Typical NBD Systems
Negative, Discouraging Outcomes: Helps Explain Why Typical Staged-Gate Systems Are Underutilized
Getting the Right Answer Consistently
Provides Profits/Unit Effort Nine Times Faster Vs. Benchmark
Getting the Right Answer Consistently
Provides Profits/Unit Effort Nine Times Faster Vs. Benchmark
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Pick the One in 10 that Wins? Pick the One in 10 that Wins? Done ThatDone That
More Exciting: Achieve Success With Almost All Early-Stage NBD Projects By “Morphing” Them Done That Too
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1
10
100
1,000
10,000
Nu
mb
er o
f Id
eas
1 2 3 4 5 6 7
Stage of NBD Process
3000 Raw Ideas (Unwritten)
300 Ideas Submitted
125 Small Projects
9 Early Stage Developments
4 Major Developments1.7 Launches
1 Success
The New NBD System Provides More Than a Six-SigmaThe New NBD System Provides More Than a Six-SigmaImprovement Vs. The “Universal” NBD Success CurveImprovement Vs. The “Universal” NBD Success Curve
The New NBD System Provides More Than a Six-SigmaThe New NBD System Provides More Than a Six-SigmaImprovement Vs. The “Universal” NBD Success CurveImprovement Vs. The “Universal” NBD Success Curve
Ref: Stevens & Burley, May-June 1997, Research•Technology Management
95% Success Rates From Stage 4 Are Achieved vs. the
Benchmark for Traditional Stage-Gate Processes of 11% (1 in 9). This Represents More than a
Six Sigma Improvement.
95% Success Rates From Stage 4 Are Achieved vs. the
Benchmark for Traditional Stage-Gate Processes of 11% (1 in 9). This Represents More than a
Six Sigma Improvement.
From Here
To Here
BenchmarkBenchmark
WinOvationsWinOvations
To Here
From Here
6 6
Ref: Stevens & Burley, May-June 1997, Research•Technology Management
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Dramatically Increases the Probability of Dramatically Increases the Probability of Success by Selecting Inherently Creative Success by Selecting Inherently Creative
People When Needed People When Needed As in Fuzzy Front End of New Business
Development (F.F.E. of NBD) Creativity Needed Because Starting Ideas Are Rarely
Commercial, & Must Be Morphed Key: Train & Coach Creative Types in Business
Discipline – Described Next “Leash Your CreativitySM”
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Process Step 1: Determine Top Process Step 1: Determine Top Management’s Management’s Gut-Level-ScreenGut-Level-ScreenSMSM
“Group” Zone of Agreement & Excitement Their Gut-Level-Screen
Manager 1
Manager 2
Manager 3
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Platform A Platform B Platform C
Group 1 Group 2 Group 3
Project 1
Project 2
Project 3
Project 4
Project 5
Project 6
Project 7to
Project “n”
Project 1
Project 2
Project 3
Project 4
Project 5
Project 6
Project 7to
Project “n”
Project 1
Project 2
Project 3
Project 4
Project 5
Project 6
Project 7to
Project “n”
Specific New Product Level
Ideas
Step 2: Prioritize Platforms, Groups Step 2: Prioritize Platforms, Groups & Projects Vs. & Projects Vs. Gut-Level-ScreenGut-Level-Screen
Use Success-Wheel
on These Projects First, & Leverage
Findings Across Entire Group
FunctionalGroupings
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Steps 3-4:Steps 3-4: Success-Wheel Success-Wheel Project Analysis Project Analysis Forms and Tests Draft Propositions Forms and Tests Draft Propositions
That Must be ProvedThat Must be ProvedA. Internally Tested Propositions:
Fit Vs. Gut-Level-Screen & Sustainable Competitive Advantage
B. Marketplace Tested Propositions Customer Visits: How Done, Spoken Needs, Costs, Value
C. Iterative-PropositionsSM: Unspoken Needs, New Ideas,
Winning Way in World When Know How to Win, It’s Time for Commercial
Development
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Final F.F.E.-NBD Analysis Step: Final F.F.E.-NBD Analysis Step:
Cost Per Cost Per Unit PerformanceUnit Performance In The Customer’s Eyes In The Customer’s Eyes Is Key Is Key
($/Part, or $/Ft. Bonded: ($/Part, or $/Ft. Bonded: NotNot $/Lb. Sold) $/Lb. Sold) In This Example, the
Highest Cost Per Pound Raw Material Still Wins Vs. The Best Global Competitors
Vs. Today’s Processes... And More Importantly Tomorrow’s
Then Go!! Activate Teams, Develop & Commercialize $0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
1 2 3 4 5
Best Global Approaches
$ P
er U
nit
Per
form
ance
Overhead w/ G&A
Capital
Plant Labor
Raw Materials$
Per
Uni
t Per
form
ance
Wins!
Best Global Approaches
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D. Applications of New System atD. Applications of New System at Honeywell (AlliedSignal): Honeywell (AlliedSignal):
The new approach “combines creativity with a high degree of business discipline. … we ended up with winning business plans that fully identified over $100 million per year in new sales potential.… with the likelihood of developing into several hundred million dollars per year businesses.”
“As a result of their work…we know the costs of the best competitors in the world, and how to beat them, by better meeting customers’ spoken and unspoken needs.”
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Application of New Approach atApplication of New Approach at Dow Chemical, in (Insite®) Dow Chemical, in (Insite®)
Metallocene Polymer Catalysis:Metallocene Polymer Catalysis:Helps Identify “Starters” and “Finishers”
Key Personnel Issue
Has Resulted In Over 3 Billion Pounds of New Polymer Capacity, Much in New Areas Projected in 1991, and Now Come True
& It’s Just the Beginning
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Myth #8: Myth #8: “We’re “We’re AlreadyAlready DoingDoing SomeSomethingthing PrettyPretty MuchMuch LikeLike This”This”
With Due Respect, Saying the Traditional Staged-Gate Approach and the New Approach Are Alike…
“Is Like Saying Veterinarians And Taxidermists Are In the Same Business, Because Either Way You Get Your Dog Back.”
Sen. Joe Lieberman, Wall St. Journal, 8/22/00, p.1.
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Reality: Most NBD Systems Need Reality: Most NBD Systems Need Dramatic ImprovementDramatic Improvement
You Know Your NBD System Is Really Working IF: 95% of NBD Efforts Succeed After Early Development
Vs. 11% Per Universal Success Curve
Your Company Greatly Exceeds Your Industry In: Corporate Growth Rates, Profitability & Consistency Stock Appreciation & Book Value You & Most of Your Co-Workers Are Heavily Invested In Your
Company. New Employees Want to Work There, With Options
Economist, Forbes, Fortune, or BW: Picks Your Company as a Gem in that Industry
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Six Sigma Improvements in Six Sigma Improvements in Speed and Speed and ProfitabilityProfitability Have Been Achieved in Early- Have Been Achieved in Early-Stage NBD Stage NBD SystemsSystems via Breakthroughs In via Breakthroughs In
1. Personnel,1. Personnel,2. Process &2. Process &3.3. CoachingCoaching
“A Well Directed Imagination is the Source of New Approaches and New Contenders.”
Chinese Proverb
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Key Reference ArticlesKey Reference Articles1. Stevens, Greg A. “Shattering Myths and Achieving Higher Profits Faster from Six Sigma Improvements
in New Business Development.” Technology Transfer and Innovation ’99 Conference, September 29, 1999, Melbourne, Australia. Also at the Project Management Institute (PMI) 9-00, Houston, TX.
2. Stevens, Greg, James Burley, and Richard Divine. “Profits and Personalities: Relationships Between Profits from New Product Development and Analyst’s Personalities.” Product Development and Management Association (PDMA) 1998 Research Conference, October 5-7, Atlanta, GA. pps. 157-175.
3. Stevens, Greg. A. and James Burley, “3,000 Raw Ideas = 1 Commercial Success.” Research · Technology Management 40(3), 16-27 (May-Jun, 1997).
4. “Innovation in Industry Survey.” The Economist. Feb. 20, 1999. p. 15. [Shows the Universal Success Curve for New Business Development from Ref. #3.]
5. Bacon, Jr., Frank R. and Thomas W. Butler, Jr. Achieving Planned Innovation®, A Proven System for Creating Successful New Products and Services. The Free Press/Simon & Schuster, 1998.
6. Stevens, Greg, James Burley, and Richard Divine. “Creativity + Business Discipline = Higher Profits Faster from New Product Development.” Journal of Product Innovation Management, 16: 455-468. 1999. [& Selected as “Outstanding Research Paper” from October, 1997 PDMA Research Conference.]
7. Stevens, Tim. “The Nature of Creativity.” Industry Week, Viewpoint Archive. IndustryWeek.com. June 29, 1999. pps. 1-4.
8. Others Are Listed Within the Body of the Presentation
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Contact, & Additional Contact, & Additional Background InformationBackground InformationContact, & Additional Contact, & Additional
Background InformationBackground InformationGreg Stevens, PresidentWinOvationsSM, Inc.
240 W. Main St., Suite 1200Midland, MI 48640 USATel: 1-517-832-0075 FAX: 1-530-831-5650email: [email protected]
www.winovations.com
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WinOvationsWinOvationsSMSM Projects Done In: Projects Done In: Americas, Japan, Australia, Western Europe, Americas, Japan, Australia, Western Europe,
Eastern Europe, Russia, Middle EastEastern Europe, Russia, Middle East Clients Since 1995 Include:
Results Published Internationally: Associations: IRI, PDMA, PMI, ACA, ASC, TTI, SIRF, CDMA, CMRA Journals: The Economist, Industry Week, The Journal of Product Innovation Management, ResearchTechnology Management
Johnson & Johnson 3M NCR Owens Corning Reilly Industries Solutia Velsicol Wacker Chemical Others
Baker Oil Tools Destec Energy Dow Chemical Co. Dow Corning Essex Specialty Products GM Honeywell (AlliedSignal) Huber Irwin Seating
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Project Project & & TrainingTraining References fromReferences from
Large, Medium & SmallLarge, Medium & SmallBusinessesBusinesses
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HoneywellHoneywell(AlliedSignal)(AlliedSignal)
Project Project RecommendationRecommendation
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HoneywellHoneywell(AlliedSignal)(AlliedSignal)
TrainingTraining RecommendationRecommendation
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Essex Specialty Essex Specialty ProductsProducts,, Subsidiary Subsidiary
of Dow Chemicalof Dow Chemical
ProjectProject RecommendationRecommendation
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PPOliver Oliver ProductsProducts
TrainingTraining RecommendationRecommendation