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GGI RapidNews R&D Product Development eZine: Volume 6, Issue 2- February 2, 2005
GGI RapidNews is published approximately once a month.

In This Issue



2004 METRICS SURVEY - 2004 Survey Results Now Available

BOOK REVIEW - Measuring the Value of Partnering


NEW iSTORE PRODUCTS - New Seminar Coursebook

NEW WEB CONTENT - Updated Calendar

CONFERENCES OF INTEREST - Marcus Evans' Collaborative Product Development

UPCOMING PUBLIC SEMINARS - Measuring Product Development

WEBINARS OF INTEREST - Sopheon's Winning Practices for Product Development, IDe's Next Generation Product Development

MANAGEMENT PRODUCTIVITY - APQC R&D Productivity Benchmarking Study

TELEVISION EVENTS - Alexander Haig's World Business Review



GGI's 2004 Product Development Metrics Survey has just been published. The 2004 Survey focused on the product selection process and tools, the IP management process and tools, and metrics. Each month over five months, GGI will share with RapidNews readers selected results from each section of the survey. This month we present selected results from the third section, "Intellectual Property Management Process."

- The 2.5-Step, 2-Step, 1-Step, and No-Step processes were used about equally for making decisions about managing IP.

- IP decisions were made by just one person in 20% of the respondent companies.

- IP was registered "frequently" or "almost always" at some point in the product lifecycle by 75% of respondents.

- To support IP management, 47% of firms have internal legal departments aided by external counsel.

Next month, look for results on the fourth section, "Intellectual Property Management Tools."


2005 R&D Funding Forecast

Total R&D funding in the United States is expected to increase 3.6 percent to $312 billion in 2005, according to the recently released Battelle-R&D magazine annual funding forecast ["Continued Defense Spending Offsets Flat Industrial R&D" R&D Magazine, Volume 47 Number 1, January 2005]. The increase is driven primarily by a 5.9 percent increase in federal government expenditures to $98 billion. Industrial R&D spending, the largest segment of the total, will increase by only about 2 percent to $191 billion in 2005, while academic and other non-profit sectors will increase approximately 8.6 percent to $23 billion in 2005.

Private industry continues its flat R&D funding trend from the past 4 years, due to the mild recession. Outsourcing of R&D has emerged as a significant factor, especially major expansion into independent R&D institutions in China and India. The growing federal budget deficit is expected to limit federal R&D funding in coming years, which will seriously strain overall R&D investments as industry outsources R&D to offshore facilities.

The report highlighted a number of opportunity areas for R&D, such as materials technologies, medical diagnostic imaging, information mining and assessment, environmental management, energy production and distribution, medical technology, and anti-terrorism technologies.

The complete R&D Magazine article is available at


2004 Product Development Metrics Survey - Product Selection, IP Management, and Top Corporate Metrics: The Summary and Highlights Reports for GGI's 2004 Biennial Product Development Metrics Survey have just been published and are now available for purchase by the public through GGI's iStore. The composite results across the entire survey population of this year's survey were first presented to the public by Brad Goldense at Management Roundtable's 9th Annual Metrics Conference on September 30, 2004 in Chicago. These reports are completely based on primary research performed by GGI researchers. The research includes 202 respondent companies. There was a 5% response rate.

Why would these reports be of value to you? The first two sections cover the product selection process and tools used. The companies that add rigor to their process make better decisions, leading ultimately to more successful products. The statistically accurate survey illustrates the current industry practice for selecting products, the degree of usage of 21 different tools, and the believed ability of these tools to generate innovation and/or generate registerable IP. The third and fourth sections of the survey are groundbreaking research in the processes and tools companies use to manage intellectual property. It is believed that the importance of IP in the next 2 decades will go from 10% of a company's valuation to perhaps as much as 90% of a company's valuation on Wall Street. This report, to our knowledge, is the first definitive survey of the processes, tools, and systems used for IP. The final section of the report specifically lists the metrics that are used by the top of R&D organizations in industry to measure the overall performance of R&D in pareto order. If you are trying to find the few metrics that your company should choose to measure overall R&D performance, you cannot be without this last section.

McKinsey & Company, Texas Instruments, Rockwell, Kimberly Clark, and Datacard are representative of companies that purchase market research from GGI.

The 2004 Survey focused on the following 5 areas of product selection and IP management:

  • Product Selection Process
  • Product Selection Tools
  • IP Management Process
  • IP Management Tools
  • Top Corporate Metrics Used in Industry RD&E

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

1. 2004 SURVEY HIGHLIGHTS: A text-only report (75 pages), including the full text of all the results and analysis of the survey population analyzed as a whole,

2. 2004 SURVEY SUMMARY: A report of composite results, where the survey respondents are analyzed as a whole (149 pages, including a full set of graphics), and

3. 2004 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 (TBD pages).

Please note that the 3rd report, Survey Results, is expected to be available in early 2005.

For the first time, we are now offering individual sections of the research report, as well as combined product selection sections (process and tools) and combined IP management sections (process and tools). You can now purchase just a section of the whole report to meet your specific needs. A comparison of the product selection process and the IP management process is included only in the full 2004 Survey Summary report.

We have improved the quality and amount of descriptive information we provide for the public. The links below will be quite useful in understanding what was researched and why.

A brochure describing the survey in more detail as well as the reports available can be directly downloaded here:

A description of the survey including demographics, report table of contents and selected results can be directly downloaded here:

A detailed description of each section of the research, including the focus of the research can be found here:

These reports are available in the Market Research section of GGI's iStore ( We have just restructured the delivery and pricing of all research offerings, including our latest 2004 metrics survey reports. In addition to the currently available hard copy versions, you can now purchase downloadable electronic reports for all of our metrics surveys. We are able to offer a great value by making this research available to your entire corporation and even to your suppliers, based on your choice of licenses. These electronic reports are in full color and are readily sharable within your organization. This new electronic option improves your firm's access to GGI's powerful R&D research, making the reports even more usable and helpful in your R&D process. Check the Product Development Metrics Research section of GGI's Wisdom iStore for more details:

Each survey participant received a complimentary copy of the Summary Report. All participants should have already received an email letter regarding the complimentary copy of the Summary Report. Any survey respondents who did not receive this email letter from us should contact Richard James at or 781-444-5400, x202.


Measuring the Value of Partnering: How to Use Metrics to Plan, Develop, and Implement, by Larraine Segil. AMACOM. 2004, 1st edition. 256 pages.

This new book by Larraine Segil, partner at Vantage Partners, provides a system and the tools to measure an alliance throughout the stages of its life cycle. Ms. Segil brings a wealth of experience in business relationship management with business organizations, competitors, political organizations -- far beyond industry examples. This approach to partnering is a high level mind set of the whole alliance process, with a detailed methodology for keeping it on track. The author's research shows how the different life cycle phases of an alliance affect the culture of the alliance, the priority of the alliance and the personalities of the managers involved. Here is a brief overview of the process and some of the issues and metrics.

1. Alliance Startup - the exciting beginning phase of conceptual and strategic planning, development and structuring; best led by the "adventurer" manager personality. Metrics are primarily development-oriented, such as ROI, time to market, etc.

2. Alliance Hockey Stick Growth - the "aggressive, confident" phase where the alliance is active and initial milestones are met; best led by the "warrior" manager. Metrics tend toward growth but should also include knowledge transfer.

3. Alliance Professional - the stage best suited to action and metrics, when the partnering is most effective; best led by the "hunter" manager. Metrics include resource allocation and a re-examination of earlier metrics to see if they are still on track.

4. Alliance Mature - the stage of slowed growth, team change, conflict, restructuring of goals, and mediation; best led by the "farmer" manager. Metrics focus on the customer as well as financials and schedule.

5. Alliance Declining - the phase before termination or re-launch; best led by the "politician" manager. Metrics to consider are the alliance value proposition and risks of terminating.

6. Alliance Sustaining - a turnaround phase as the alliance moves back to an earlier phase; best led by the "visionary" manager. Metrics focus on showing signs of success, such as cycle time, sales from new customers, time to market.


Featured Item: Each month, or every other month, GGI's iStore features one item that we discount 40%. The current Featured Item is "Proactive and Predictive R&D Metrics - PPRD Coursebook" (S3)

The Proactive and Predictive R&D Metrics (PPRD) Coursebook is your detailed guide to understanding and creating meaningful, forward-looking metrics for R&D. The coursebook accompanies the intensive seminar of the same name, and is useful on its own. The coursebook (and seminar) covers the following four metrics topic areas:

- Planning metrics
- Proactive metrics
- Predictive metrics
- Reactive metrics

The coursebook will help you move from reactive measures of past activity to planning, proactive, or predictive measures that improve the predictability of R&D and bottom-line results. You will also learn how to differentiate between a corporate and a project metric, as well as to create good project metrics that can be rolled up across business units to result in a good corporate metric. The coursebook contains many examples and case studies of different types of metrics used in different industries.

For the PPRD Coursebook, we have just taken a one-time discount of $100, to a list price of $395. As a Featured Item, we have dropped the list price from $395.00 to $237.00, a deep discount of 40%. GGI's Featured Item changes approximately every other month and is always offered at a 40% discount. For more information or to purchase this valuable report, go to


New Items: GGI's iStore has now been updated with 1 new Seminar Coursebook. See details below, or go directly to GGI's iStore storefront:

New Seminar Coursebooks

S6 "Measuring Product Development II" [200 pages] - This coursebook describes advanced techniques and processes for those areas of product development that are hardest to measure but deliver the most value by measuring them. It covers enterprise-level front-end processes, such as loading the product development pipeline, hurdle rates, tradeoff analysis, and risk and complexity analysis. Planning, proactive and predictive measures are indicators of success for the selected products/projects as they go through development. The coursebook also provides a framework and method for assembling a set of overall metrics for R&D. This coursebook is full of case studies and industry examples as well as results from GGI's primary research, which will give you powerful techniques to measure your product development process. To order this new Coursebook, go to GGI's iStore:


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:

Calendar of Industry Events MEGA Gateway is one of our top 3 MEGA Gateways. It contains a listing of links to Conferences, Seminars, Distance Learning Centers, Webinars, Colleges & Universities, Executive Education, and Corporate-Sponsored Universities. The calendar has recently been updated with many of the events being held in spring 2005 and beyond. If you are looking for a conference or other learning opportunity, 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:


Collaborative Product Development - Marcus Evans presents its 2nd Annual Conference on Collaborative Product Development, "Strategies for Collaborative Development for Global Competitive Advantage" on February 17-18, 2005 in Mumbai, India. The conference will examine critical success factors for effective collaboration and increased product innovation through better collaboration with partners, suppliers and customers. The conference is focused specifically for the automotive and automotive supplier industries in India.

Brad Goldense serves as conference chairperson and will present a half-day session on "R&D Productivity" on Friday, February 18.

For more information or to register for this conference, go to the Marcus Evans web site:


Measuring Product Development (MPD): Mastering Metrics for New Product Development for Global Competition: Marcus Evans is producing the Mastering Product Development (MPD) seminar, presented by Brad Goldense, on February 21-22, 2005 in Mumbai, India. The two-day seminar focuses on current best practices for measuring product development effectiveness. The seminar covers the four primary product development measurement areas: overall corporate R&D results, development projects, business functions, and improvement projects. Heavy emphasis is placed on how to set up a baseline for metrics, the metrics currently used in industry with example case studies from several industries.

For more information or to register for this seminar, go to the Marcus Evans web site:


Winning Practices for Product Development: This free, online seminar series is sponsored by Sopheon. 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 is currently one webinar scheduled.

10 February, 2005 - (8:30 am Pacific/11:30 am Eastern/16:30 UK) - The Innovation Pipeline: Increasing the Flow Rate, presented by Adam Peterson, Commercialization Manager of Specialty Chemicals Business at Dow Corning Corporation

To register for this webinar, for more information on the webinars, or to look at the archive of past webinars, go to

Next Generation Product Development: This online seminar series is sponsored by IDe and features Michael McGrath, co-founder of PRTM and chairman of IDe. These 90-minute online events offer an overview of advanced practices of development-productivity-based competition.

There is currently one webinar scheduled.

14 February, 2005 - (12:00 - 1:30 PM EST) - Dynamic Portfolio & Pipeline Management

To register for this webinar, or for more information, go to


APQC R&D Productivity Benchmarking Study

APQC has just concluded its consortium research and benchmarking study, entitled "Measuring R&D Productivity." Goldense Group, Inc. [GGI] was Subject Matter Expert for this study. This study breaks new ground in understanding the drivers of R&D productivity. Fifteen global sponsors from four continents benchmarked five best practice companies on two continents after a rigorous screening process.

The APQC consortium benchmarking study addressed the following three areas:

1. Identify the areas where improved attention, knowledge, and education would lead to higher R&D productivity. [What are the key areas for best practice?]

2. Use measurement to increase visibility and awareness, which in turn will facilitate enhanced performance in R&D. [What are the measures for these areas?]

3. Determine effective change management activities to support the realization of improved R&D productivity. [How did the best practice companies achieve their practices?]

The kickoff meeting took place on July 20, 2004, and the study was conducted with site visits during October, 2004. The Knowledge Transfer Session occurred on December 9-10, 2004. Results remain confidential for several months and then will be available for purchase soon through the APQC web site.

For information about this study, go to For general information about APQC, go to For general information about Goldense Group, Inc., go to


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:

December 15, 2002 In-Studio with Alexander Haig (7.5 minutes) on CNBC paid programming: Streaming video for this segment is available at:

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:

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:

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 and article reviews, key industry conferences and R&D information of interest to clients and associates. Please send communications to rn(at) Thank you.