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GGI RapidNews R&D Product Development eZine: Volume 4, Issue 9, September 8, 2003
In This Issue
2002 METRICS SURVEY RESULTS
BOOK REVIEW - Lean Strategies
for Product Development
MANAGEMENT PRODUCTIVITY - Intellectual
Property Metrics: 2003 Patent Scorecard
NEW BIENNIAL SURVEY - 2002 RD&E
Survey Results available now
NEW WEB CONTENT - Updated GTKs:
Calendar, Rapid Prototyping, Rapid Tooling, Virtual Reality
FEATURED iSTORE PRODUCT - 2000
Product Development Metrics Research Summary
RECENT PUBLICATIONS - Journal
of Product Innovation Management Book Review
CONFERENCES OF INTEREST - PLM;
PDMA; MRT Metrics; IQPC
WEBINARS OF INTEREST - Sopheon's
Winning Practices for Product Development
TELEVISION EVENTS - Alexander
Haig's World Business Review
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2002 METRICS SURVEY RESULTS
GGI's 2002 Product Development Metrics Survey was recently
published. The 2002 Survey focused on resource
and capacity management practices and metrics. Over
the past 5 months, GGI has shared with RapidNews readers
selected results from each section of the survey.
Last month focused on the fifth section, "RD&E
Metrics Used in Industry." We thought you might
like to know a bit about the survey respondents, so this
month we present a summary of survey demographics.
This month's survey data - demographics - are summarized
below.
- The 2002 Metrics survey was quantitative and targeted
at advanced R&D practitioners, many of whom might
have elected not to participate because their processes
were not mature enough to complete the questionnaire.
As a result, one could say that the 83 respondents constituted
a "self-selected sample" of advanced R&D
practitioners.
- A net total of 9,677 surveys were distributed, and
83 valid responses were received, for a response rate
of 0.9%.
- 61% of respondents were from public companies, 39%
from private companies.
- Nearly one half of the respondents were from smaller
firms with less than $100 million in sales revenue and
less than 500 full-time employees.
- Almost two thirds of respondents described their
company as performing "Repetitive Manufacturing"
(65%), followed by "Process Manufacturing" (46%),
"Job Shop" (38%), and "Discrete Manufacturing"
(36%). Many respondents claimed that three or more
categories were present.
- Over 90% of respondent companies sell, develop and
manufacture in North America. About three quarters
also sell globally. Up to 48% of respondent companies
also develop and/or manufacture in Europe, Asia, and the
rest of the world.
- Over 905 of respondents were from general management
or R&D management positions.
- Over 70% of the replies were from the following nine
industries: aerospace, chemical, consumer products, durable
goods, electronics, industrial products, medical products,
and semiconductors.
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.
GGI's next Product Development Metrics Survey will
be conducted in 2004. Please contact me at ars@goldensegroupinc.com if you wish
to participate. All participants receive a complimentary
copy of the Executive Summary of the Survey results.
BOOK REVIEW
Lean Strategies for Product Development: Achieving
Breakthrough Performance in Bringing Products to Market,
by Clifford Fiore. ASQ Quality Press. 2003,
1st edition. 86 pages.
We at GGI are not big fans of "lean" product
development as we believe that the lean practices that
work in operations do not stretch well into the more probabilistic
environment of product development. That being said,
this concise readable book contains some useful information,
particularly in Chapters 6 and 7 on modular design and
platform design, and the summary chart in Appendix
B. Choosing a strategy of modular, platform or custom
design is an approach to product development that can
help maximize reuse while minimizing development cycle
time, cost and technical risk. Having these different
options can leverage your existing knowledge and gives
customers choices ranging from a completely custom design
(highest cost and longest schedule) to a totally reused
design (lowest cost and shortest schedule).
Modular design is a product development approach based
on the reuse of existing modules or subassemblies or possibly
individual parts. A tool called a "product
breakdown structure" is used to break down the product
into modules or parts in order to identify the reuse opportunities.
Once all of the parts are identified by part family, it
is necessary to catalog information about the parts based
on their attributes. Consideration of factors such
as scrap rate, cost, and quality drives the selection
of preferred parts, which are those parts specifically
promoted for reuse. Reuse of modules and preferred
parts results in product development cycle time and cost
reductions. This approach works well for products
with subassemblies that can be easily interchanged, in
a "plug and play" mode. Other products,
with more interdependency between components, are better
served by a platform design approach.
The platform design approach is based on using a platform
or baseline design in order to manage technical risk.
Several tools are used to manage risk. The "technical
requirements flow-down matrix" is a standardized
approach to evaluate compliance of the baseline design
with technical requirements for the new product.
The "product experience domain" is a tool (graphical
or tabular) to identify areas of experience and of risk
by comparing key parameters that characterize a product's
performance, reliability and quality. The final
tool is the "component design compliance matrix,"
which identifies compliance or noncompliance with design
requirements, and organizes action plans for addressing
noncompliance.
MANAGEMENT PRODUCTIVITY
Intellectual Property Metrics: 2003 Patent Scorecard
from""The Patent Scorecard: 2003",
Technology Review, Massachusetts Institute of
Technology: Volume 106, Issue 4, May 2003, pages 59-62,
and
"The Patent Scorecard 2002" Technology
Review, Massachusetts Institute of Technology:
Volume 105, Issue 4, May 2002, pages 75-77.
There are many ways to measure innovation. For a number
of years Technology Review Magazine and CHI Research have
collaborated to create the annual Patent Scorecard, which
tracks the patenting activity of the top 150 companies
in eight high-tech sectors. The Patent Scorecard
uses more than just patent numbers to rank the technological
strength of a company, by considering the significance
of the patents as well as other factors. The metrics
developed by Technology Review and CHI Research are:
- Technological Strength: The number of U.S.
patents multiplied by the Current Impact Index (see below).
This figure is the basis for the rankings.
- Number of Patents: The number of U.S. patents
awarded, excluding design and other special-case inventions.
- Current-Impact Index: The number of times a
company's U.S. patents from the previous five years are
cited as prior art in the current year's patents.
A value of 1.0 represents average citation frequency.
- Science Linkage: The average number of scientific
references listed in a company's U.S. patents. A
higher number indicates a company closer to the cutting
edge than its competitors with lower values.
- Technology Cycle Time: The median age (in years)
of the U.S. patents cited as prior art in a company's
patents. This indicates a firm's speed in turning
leading-edge technology into intellectual property.
Despite the tough economy, patent awards continue to
rise for many companies who aim to protect their intellectual
property. But the picture was a mixed one.
For the tenth straight year, IBM continues to lead not
only the Computers sector, but the entire scorecard with
a total of 3,334 patents awarded in 2002. But this
figure is down slightly (3%) from the prior year.
Microsoft and Hewlett-Packard increased their patent awards
by 21% and 42% respectively, compared to 2001. Each of
the eight industries presented, aerospace, automotive,
biotechnology/pharmaceuticals, chemicals, computers, electrical/electronics,
semiconductors, and telecommunications, had a mixture
of gains and losses in Technological Strength and Number
of Patents compared to 2001. Companies typically
change in rankings from year to year, reflecting the dynamic
nature of innovation. Innovative companies must
remain dynamic in the face of global competition by continuing
to invest in R&D and then protecting their ideas.
The complete scorecard can be viewed here: http://www.technologyreview.com/scorecards/
NEW 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 Market Research Reading Room at http://www.goldensegroupinc.com/readmarket.shtml.
NEW WEB CONTENT
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:
One of our top 3 MEGA Gateways is the Calendar of
Industry Events MEGA Gateway, a listing of links to
conferences, seminars and distance learning opportunities.
We have just restructured the Calendar of Industry Events
MEGA Gateway to include all educational opportunities
in one Gateway by adding the following options: Webinars,
Colleges & Universities, Executive Education, and
Corporate-Sponsored Universities. Check out the redesigned
Gateway with new graphics; the Calendar of Industry
Events MEGA Gateway is located at:
Another one of our top MEGA Gateways is the Technology
Providers MEGA Gateway, which is a directory of hundreds
of links organized by technical topic (hardware and software).
The Technology Providers MEGA Gateway can be found at:
Rapid Prototyping: This UPDATED Gateway
offers links to over 30 companies that provide rapid prototyping
machines. Find it in the Technology Providers MEGA
Gateway. The URL is located at:
Fast Production Process/Rapid Tooling:
This UPDATED Gateway provides links to over 30 companies
that specialize in equipment for fast production process
and/or rapid tooling. Find it in the Technology
Providers MEGA Gateway. The URL is located at:
Virtual Reality: This UPDATED Gateway
offers links to companies that specialize in virtual reality
software. Find it in the Technology Providers MEGA
Gateway. The URL is located at:
FEATURED GGI iSTORE PRODUCTS
Featured Item: GGI's iStore features one deeply
discounted offering, which changes periodically. The current
Featured Item is the "2000 Product Development Metrics
Research Summary" (MR12).
This 96-page report presents the detailed results of
GGI's 2000 Product Development Metrics Survey, which focused
on metrics systems in use in industry as well as portfolio
management. The report is organized in 5 sections, each
of which contains factual observations, management analysis
and a full set of graphics. This report, which analyzes
the survey population of 122 respondents as a whole, will
provide you with detailed information on
1. R&D linkages to corporate strategy,
2. Portfolio management metrics,
3. Product selection metrics,
4. Product success metrics, and
5. Actual metrics in use in industry.
This research is still valid, given the fact that the
economy has not been in a state of high growth for the
past few years. We have found consistency between the
2000 and 2002 surveys in areas where we could compare.
The price for the report has been dropped from $1920.00
to $1152.00, a deep discount of 40%. For more information
or to purchase this valuable report, go to
RECENT PUBLICATIONS
Journal of Product Innovation Management:
Brad Goldense was quoted in JPIM's May, 2003 issue
(Volume 20, Number 3) in the book review section.
The book review featured Product Development Metrics
Handbook: What Every Manager Needs to Know about
Measuring Product Development (Management Roundtable,
2001), which is a compilation of articles previously published
by Management Roundtable. The review mentions Brad's
article in the book's first section, "Metrics
- The Experts Speak," on the subject of predictive
product development metrics and linking new versus active
products.
CONFERENCES OF INTEREST
PLM 2003: Worldwide Business Research
will hold its product life cycle management event, PLM
2003, on September 16-17 in Scottsdale, AZ. The
conference is geared toward executives in all functional
areas of product life cycle management and will emphasize
minimizing product cost and maximizing life cycle value.
Companies giving presentations include Deere & Company,
Lam Research, Boeing, Lockheed Martin, Sun Microsystems,
Agilent Technologies, Hewlett-Packard, and Dell.
The conference also includes one day of pre-conference
sessions on Monday, September 15, focusing on benchmarking
and performance measures to identify key performance indicators.
Brad Goldense will be speaking on the subject of "Benchmarking
Resource and Capacity Management Practices in R&D
and Product Development" and is moderating two days
of the 3-day conference.
For more information, go to WBR's web site: http://www.wbresearch.com/PLM/index.html
PDMA International Conference: PDMA's
Annual International Conference will be held October 4-8,
2003 at the Boston Marriot Copley. The conference theme
is The Business of Product Development: People,
Process and Technology Across the Life Cycle and features
keynote speakers Knight Kiplinger and Peter Senge. The
conference will focus on successful product development
and product life cycle management, with an emphasis on
how-to's and new techniques to apply immediately to your
competitive advantage. Three conference tracks are
featured: People, Process and Technology.
Brad Goldense is part of the conference planning team,
is the track chair for the Process Track, and will give
an Executive Presentation on the subject of Industry Best
Practices for Product Life Cycle Management. Other
Executive Presenters include Dr. Robert Cooper.
More information is available at PDMA's web site: http://www.pdma.org/2003/.
MRT 8th Annual Metrics Conference: Management
Roundtable will hold its 8th annual conference, "Product
Development and R&D Metrics: Quantifying Innovation,
Portfolio Value, and Resource Capacity," on November
3-6, 2003 in Chicago, IL. The conference brings
together leading metrics experts and advanced industry
practitioners to explore the latest approaches and methods
for using performance measurement systems to manage new
product development activities. The conference features
keynote addresses, case studies, expert clinics, pre/post-conference
workshops, and Q&A and networking sessions.
Brad Goldense will be facilitating two expert clinic
sessions on Tuesday, November 4 on "Proactive and
Predictive Measurements." Brad will also conduct
a post-conference workshop, "Product Development
Metrics Portfolios," on Thursday, November 6.
More information is available at MRT's web site: http://www.managementroundtable.com/event_center/MET03/MET03.html
IQPC Conference: IQPC's Conference
on Collaborative Product Development will be held on December
8-10, 2003 in Scottsdale, AZ. The focus of the conference
is integrating partners, suppliers and customers to save
money, streamline processes, and drive innovation.
The sessions will explore the strategic thinking, infrastructure,
and working practices that lead to superior and sustainable
partnerships, products, and profits.
Brad Goldense will be delivering the keynote presentation,
"Unlock Corporate Practices to Improve Innovation
through Collaboration" on Tuesday, December 9.
Brad will also be conducting a pre-conference workshop,
"Measuring Product Development Effectiveness"
on Monday, December 8.
More information will be available soon on IQPC's web
site: http://www.iqpc.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.
Sopheon and SCPD are currently in the process of planning
the fall Webinar series. Your input on potential topics
is requested at the link listed below. Past Webinars have
been archived and are available online by following this
link: 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/ggi-goldense-product-development-tv-television-broadcast.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/ggi-goldense-product-development-tv-television-broadcast.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/ggi-goldense-product-development-tv-television-broadcast.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/ggi-goldense-product-development-tv-television-broadcast.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:
GGI RapidNews is an e-mail publication from Goldense Group, Inc (GGI). Its subject matter includes survey findings, company news, book reviews, key industry conferences and R&D information of interest to clients and associates. Please send communications to rn(at)goldensegroupinc.com. Thank you. | |||