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GGI RapidNews R&D Product Development eZine: Volume 5, Issue 2 - February 12, 2004
GGI RapidNews is published approximately once a month.

In This Issue

2002 METRICS SURVEY RESULTS

2004 METRICS SURVEY

MANAGEMENT PRODUCTIVITY - R&D Spending Forecast

BOOK REVIEW - How Breakthroughs Happen

2002 BIENNIAL SURVEY - 2002 RD&E Survey Results available now

NEW WEB CONTENT - Updated GTKs: Calendar

FEATURED iSTORE PRODUCT - Product Development Metrics Portfolios Coursebook

UPCOMING PUBLIC SEMINARS - PDMP

CONFERENCES OF INTEREST - MRT Improving R&D Productivity, Brandworks University

WEBINARS OF INTEREST - Sopheon's Winning Practices for Product Development

TELEVISION EVENTS - Alexander Haig's World Business Review

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2002 BIENNIAL METRICS SURVEY RESULTS

GGI's 2002 Biennial Product Development Metrics Survey, which focused on resource and capacity management practices and metrics, was published earlier this year. From April through August 2003, GGI shared with RapidNews readers selected results from each section of the survey, with the survey population considered as a whole. We also analyzed the data in "Special Cuts" by segmenting the population into the following five groups: Public vs. Private, Smaller vs. Larger, Process vs. Repetitive/Discrete vs. Job Shop Operations, Higher Technology vs. Lower Technology, and More vs. Fewer Employees. Over five months, we have shared selected results from each of these segment analyses. This month, we present the fifth and final segment, selected findings from the "More vs. Fewer Employees" segment.

- The More Employees group tended to outsource RD&E-related activities in greater numbers (97%) than did the Fewer Employees group (87%).

- For high-level planning, almost 4 times more of the More Employees group used the "Architectural Model" (43%) than did the Fewer Employees group (11%). An Architectural Model would be planning based on a platform, derivative or extension of an existing product. 42% of the Fewer Employees group reported using "No Models" as compared with only 18% of the More Employees group.

- In every case, where there were appreciable differences between the two groups with respect to metrics in use, a greater number of respondents in the More Employees group used the metrics listed in the survey questionnaire more than the Fewer Employees group.

To view selected results of the survey population as a whole, look in the GGI RapidNews archives: http://www.goldensegroupinc.com/GGI_RapidNews/Rnews.shtml

The original survey questionnaire can be downloaded at http://www.goldensegroupinc.com/biennial/surveys/2002MetricsSurvey.pdf. Complete survey results are available for purchase at http://www.goldensegroupinc.com/cgi/catalog.cgi?display_p355.


2004 BIENNIAL METRICS SURVEY

GGI's next Biennial Product Development Metrics Survey will be conducted in 2004, beginning soon. We are now in the planning stages. Please contact me at ars@goldensegroupinc.com if you wish to participate as part of our early Beta-Test group to proof the survey. If you are receiving this RapidNews issue, you will also receive an invitation to participate in the survey, possibly several invitations. All participants will receive a complimentary copy of the detailed Executive Summary of the Survey results if they submit a completed survey.


MANAGEMENT PRODUCTIVITY

R&D Funding

R&D funding in the United States is expected to increase a modest 2.5 percent to about $291 billion in 2004, according to the recently released Battelle-R&D Magazine annual funding forecast ["R&D Funding Forecast Upturns and Defense Drive R&D in 2004" R&D Magazine, Volume 46 Number 1, January, 2004]. Industrial R&D spending, the largest segment, will increase only slightly (.85 percent) to $181 billion. Federal R&D spending is expected to increase by 4.8 percent to a total of $89.4 billion, while universities and other non-profits project an increase of 7.6 percent to $20.3 billion.

This marks the fourth consecutive year of inflation-adjusted industrial R&D spending that has remained flat or declined. Many companies are trying to stay afloat or get back in the black through the economic downturn by cutting R&D spending. There are some high-tech companies, such as Intel and IBM, who are however increasing their R&D funding to position themselves ahead of the competition when the recovery comes, reported the Wall Street Journal on January 29, 2004. Many others are saving costs by outsourcing R&D activities to other companies or offshore facilities, which has been an increasing trend for the past ten years.

The focus areas of R&D research have shifted significantly towards nanotechnology, biotechnology and support of defense and homeland security, compared to the past decade's focus on pharmaceutical, software, telecommunications and semiconductor technologies. The Battelle/R&D magazine report also noted a trend seen in recent years in the decentralization of corporate R&D labs at many companies.

The complete R&D Magazine article is available at http://www.rdmag.com.


BOOK REVIEW

How Breakthroughs Happen: The Surprising Truth About How Companies Innovate, by Andrew Hargadon. Harvard Business School Press. 2003, 1st edition. 272 pages.

Most innovations do not come from radical new ideas but from exploiting existing technologies to develop new ones, through a process called "technology brokering." This type of innovation involves taking apart and reassembling or recombining elements of existing technologies -- people, ideas and objects -- and then building new networks around these emerging ideas. Innovation often results from recognizing the potential of one industry's technology to solve the problems of another industry. For example, the innovative Reebok Pump athletic shoe emerged as a solution to an ankle support problem through an adaptation of an inflatable splint used in the medical products industry. Recombinant innovation offers the benefit of using proven technologies, avoiding much of the time, effort and cost of inventing new technologies.

The author offers the following eight rules of innovation through technology brokering:
1. The future is already here. Look for existing technologies in other industries to solve your problems.
2. Analogy trumps invention. Recognizing the potential of existing resources requires thinking by analogy.
3. Find your discomfort zone to explore new possibilities.
4. "Divided we innovate." Organizations can benefit from the output of many focused teams rather than one large one.
5. Bridge to your strengths. Find worlds where your experience and knowledge will be valuable.
6. Build to your weaknesses. Build on new ideas using the power of a group.
7. "As go the individuals, so goes the organization." Individuals must embrace the strategy of technology brokering for their own success and for the company's success.
8. "Rip, mix and burn." Select ideas and technologies from various sources, combine them in unique ways and create your next breakthrough innovation.


2002 BIENNIAL SURVEY

2002 RD&E Survey - Resource & Capacity Management: Complete results from our 2002 Product Development Metrics Survey are now available, including our most detailed "RESULTS" report.

The survey focused this year on the following 5 areas of resource and capacity management:
- Loading the RD&E capacity pipeline,
- Providing capacity for RD&E activities,
- Balancing cross-functional resources (staffing ratios),
- Using systems, tools, & metrics to manage capacity, and
- RD&E metrics used in industry.

The 3 versions of the survey results reports that we offer for sale to the public are

1. 2002 SURVEY HIGHLIGHTS: A text-only report (65 pages),including the full text of all the results and analysis of the survey population analyzed as a whole,
2. 2002 SURVEY SUMMARY: A report of composite results, where the survey respondents are analyzed as a whole (116 pages, including a full set of graphics), and
3. 2002 SURVEY RESULTS: The most detailed report, complete with the composite results and "special cuts," where the survey population is segmented and analyzed in the following groups: Public vs. Private, Smaller vs. Larger, Process vs. Repetitive/Discrete vs. Job Shop, Higher Technology vs. Lower Technology, and More vs. Fewer Employees (223 pages).


These reports are available in the Market Research section of GGI's iStore (http://www.goldensegroupinc.com/iStore/store.html). The original survey questionnaire as well as a description of the survey (including survey focus and demographics, tables of contents for the 3 reports, and examples of key findings) can be found at the Survey Information page at http://www.goldensegroupinc.com/research-product-development-innovation-process-metrics.shtml or in the Market Research Reading Room at http://www.goldensegroupinc.com/readmarket.shtml.


NEW WEB CONTENT

Redesigned Home Page: Check out our redesigned home page. We have added graphics and have placed key items front and center for easy access. It has been a few years since GGI relaunched our home page.

GTK-Gateways To Knowledge: Your resource for industry and product development related information and contacts offers thousands of links to providers of technologies and services for line management functions. The main entrance to GTK can be found at:

http://www.goldensegroupinc.com/gateway/index.shtml

One of our top 3 MEGA Gateways is the Calendar of Industry Events MEGA Gateway, a listing of links to Conferences, Seminars, Distance Learning Centers, Webinars, Colleges & Universities, Executive Education, and Corporate-Sponsored Universities. The calendar has just been updated with approximately a dozen new seminars and conferences. If you are planning the coming year's training, check out the Calendar first. This free service for our readers is now front and center on GGI's Home Page. Or, go directly to the Calendar of Industry Events MEGA Gateway at:

http://www.goldensegroupinc.com/gateway/calendar3.shtml


FEATURED GGI iSTORE PRODUCTS

Featured Item: GGI's iStore features one deeply discounted offering, which changes periodically. The current Featured Item is the "Product Development Metrics Portfolios Coursebook" (S4).

The Product Development Metrics Portfolios (PDMP) Coursebook is your detailed guide to understanding and creating linked portfolios of metrics for managing the R&D organization overall as well as the projects, functions and improvement initiatives within R&D. The coursebook accompanies the intensive seminar of the same name, and is useful on its own. The coursebook (and seminar) guide you through the Linked Metrics Portfolio (TM) Method, a powerful, step-by-step methodology to create a metrics portfolio that links to strategy while driving performance metrics downward into functional organizations and departments. The coursebook includes perspectives on goal setting; and descriptions of infrastructures for corporate vs. project metrics and proactive vs. predictive metrics. Examples are provided for a dozen different metrics structures, such as corporate metrics, capacity management metrics, project team metrics and functional metrics. Details on sizing, assembling and implementing a metrics portfolio are also provided. With the help of the PDMP Coursebook, you can develop a comprehensive set of metrics using the Linked Metrics Portfolio (TM) Method that accurately reflects the current performance of your R&D efforts and can guide future performance.

The price for the Coursebook has been dropped from $695.00 to $417.00, a deep discount of 40%. For more information or to purchase this valuable report, go to

http://www.goldensegroupinc.com/cgi/catalog.cgi?display_promo.


UPCOMING PUBLIC SEMINARS

Product Development Metrics Portfolios Seminar (PDMP)

Registration Seminar: GGI, in partnership with Management Roundtable of Waltham, MA is presenting the Product Development Metrics: Linked Portfolio Method (PDMP) seminar on April 29 and 30, 2004 at the Royal Sonesta Hotel in Cambridge, MA. The purpose of this two-day seminar is to create a set of metrics to manage R&D as a whole. Participants will walk out with a metrics portfolio suitable for implementation upon return to their company. More detailed information is available on GGI's web site: http://www.goldensegroupinc.com/, or on the Management Roundtable site: http://www.managementroundtable.com/Event_Center/PDMP/PDMP.html.

In-House Seminar: Bring the PDMP seminar on-site to your company for a focused and productive day-and-a-half workshop to develop your R&D metrics portfolio. The in-house seminar is tailored to your company's individual needs and allows your whole team to collaborate on a metrics strategy and implement it right away. For more information, including a detailed brochure, go to
http://www.goldensegroupinc.com/pdmp_onsite.shtml.

Coursebook: The companion Coursebook is also available for purchase at the GGI iStore. The product number is S4 "Product Development Metrics Portfolios (PDMP) Coursebook" [279 pages]. The Coursebook outlines techniques and tools to help you size, assemble and implement a comprehensive collection of product development metrics. The book includes descriptions of infrastructures for corporate vs. project metrics and for proactive vs. predictive metrics. A superstructure of metrics in 10-12 areas is also described.

The PDMP Coursebook happens to be the currently Featured Item in GGI's iStore, so you can purchase it at a great discount for a limited time. For more information on ordering this coursebook, go to GGI's iStore:
http://www.goldensegroupinc.com/cgi/catalog.cgi


CONFERENCES OF INTEREST

MRT Improving R&D Productivity Conference: Management Roundtable will hold its conference, "Improving R&D Productivity: How to Link Resource Management to Portfolio Process," on March 29-31, 2004 in Atlanta, GA. The conference focuses on how to leverage increasingly limited resources and ensure that priority projects are properly resourced. The conference features a full day of pre-conference workshops plus two days of presentations and case studies aimed at providing you with strategies and tools to assess and allocate resource capacity to boost productivity.

Brad Goldense will be giving a featured presentation, "Key Pipeline Practices Drive Effective Capacity" on Tuesday, March 30, 2004. The presentation focuses on seven practical best practices for pipeline management that improve capacity utilization and improve yield.

More information can be found at MRT's web site: http://www.managementroundtable.com/Event_Center/PPM04/PPM04.html

Brandworks University: Lindsay, Stone & Briggs will hold "Brandworks University" on May 25-26, 2004 in Madison, Wisconsin. Brandworks University is considered "the world's premier conference on branding." The conference theme is "How to have smarter, more successful new product launches." Attendance at the conference is by invitation only, and limited to 300 top U.S. marketing leaders.

Brad Goldense has been invited to speak at this year's Brandworks University. Details are still being finalized. We will provide more information next month.

For more information, go to Lindsay, Stone & Briggs' web site: http://www.lsb.com.


WEBINARS OF INTEREST

Winning Practices for Product Development: This free, online seminar series is co-sponsored by Sopheon and the Society of Concurrent Product Development [SCPD]. These one-hour, online events feature experts and leading practitioners who will share process knowledge and practical advice about ways to improve your product development performance and results.

There are currently no scheduled webinars, but more are under development. Check back here next month for more information.

Past Webinars have been archived and are available online at http://www.sopheon.com/events_onlineseminars.asp.


TELEVISION EVENTS

Alexander Haig's World Business Review: Brad Goldense has made several appearances on Alexander Haig's World Business Review in the past year. Streaming video is available for all shows, which aired on August 4, September 29 and December 15, 2002 and on May 20, 2003. See below for details.

May 20, 2003 Broadcast of September 29th In-Studio with Alexander Haig (22.5 minutes): Streaming video for this segment is available at: http://www.goldensegroupinc.com/ggiontv.shtml#wbr5

December 15, 2002 In-Studio with Alexander Haig (7.5 minutes) on CNBC paid programming: Streaming video for this segment is available at: http://www.goldensegroupinc.com/ggiontv.shtml#wbr3

September 29, 2002 In-Studio with Alexander Haig (22.5 minutes): Streaming video for this segment (as well as the entire 30-minute show) is available at: http://www.goldensegroupinc.com/ggiontv.shtml#wbr2

August 4, 2002 On-Location at GGI (3.5 minutes): This On-Location field report is available in streaming video on GGI's website. To see the program, go to: http://www.goldensegroupinc.com/ggiontv.shtml#wbr1

The web page includes links to download a streaming video player, if you do not currently have one installed on your computer.

For more information on any of Brad's appearances on television, go to:

http://www.goldensegroupinc.com/ggiontv.shtml.

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GGI RapidNews is an e-mail publication from Goldense Group, Inc (GGI). Its subject matter includes survey findings, company news, book and article reviews, key industry conferences and R&D information of interest to clients and associates. Please send communications to rn(at)goldensegroupinc.com. Thank you.



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