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GGI RapidNews R&D Product Development eZine: Volume 8, Issue 7 - July 3, 2007
In This Issue GGI BIENNIAL SURVEY - 2007 Survey Commences GGI NEWS & NOTES - Staff Updates MANAGEMENT PRODUCTIVITY - Record year for Fortune 500 Companies BOOK REVIEW - Payback: Reaping the Rewards of Innovation UPCOMING PUBLIC SEMINAR - METRICS SUMMIT August 2007 UPCOMING PUBLIC SEMINAR - INNOVATION SUMMIT October 2007 Early Bird rates THE WISDOM iSTORE FEATURED PRODUCT 40% OFF- 2004 Metrics Survey Results THE WISDOM iSTORE NEW LISTINGS - Six New Listings This Month BIENNIAL PRODUCT DEVELOPMENT SURVEY - 2004, 2002, 2000, 1998 Results GATEWAYS TO KNOWLEDGE - A Monthly Feature CALENDAR OF INDUSTRY EVENTS - A Monthly Feature TELEVISION EVENTS - Alexander Haig's World Business Review --------------------------------------------------------------------- GGI BIENNIAL SURVEY - 2007 Survey Commences GGI's 2007 Biennial Product Development Metrics Survey is now available on the web. We extend our sincere thanks to the group of Beta-testers who provided feedback to us across a range of industries. This year's theme is "Innovation Processes, Tools, Techniques, & Metrics." Each GGI Biennial Survey has a "research theme" that we select based on what we believe will be a hot topic in industry for the next 2-5 years. In the past we have surveyed product selection and decision making, capacity management, and intellectual property. In 2004, "innovation" became a hot topic and was ranked by CEOs in several different surveys as being among their top three priorities. The importance continued until this past year when, due to a perceived inability to make innovation tangible, CEO's lowered its priority. GGI believes that this is a temporary setback that will spur management, management scientists, and industry advisors to work towards concrete actions that will make innovation more tangible. Towards that end, we have designed a primary research questionnaire to explore some of the more tangible aspects of innovation that exist today. There are processes that are used to innovate. There are tools that are available to facilitate brainstorming and other critical thinking. There are metrics that drive behavior. Our 2007 primary research will help to bring to the forefront what is tangible today and how well industry understands it and uses it. We invite all product development professionals to participate in the survey by logging on to http://www.goldensegroupinc.com/research-product-development-innovation-process-metrics.shtml. The site provides a description of past surveys as well as instructions for completing the current version. If you are already familiar with GGI's Biennial Survey and wish to participate in 2007, please
All participants will receive a complimentary 40-50 page Summary of the Survey Results at the conclusion of the study. The Summary will address each survey question. For each survey question, we will provide factual observations, management analysis, and graphed answers. GGI is more generous than other firms in what we provide back to the folks that make the time to participate in our research. We understand how busy every one is and a short summary of highlights does not provide an adequate return on time invested. We have received only compliments for what we have provided participants in the past. Please be sure that your responses will be held 100% confidence. We will never release data in any form that can be attributed to a single company or single response. We will never release data in a small enough sample that any person or organization can figure out which companies were in the sample. GGI has been in business for twenty years and we understand the importance of being trusted and confidential. In fact, we believe that the survey questions do not request any information that would be considered confidential in nature and thus would require permission of a senior manager to be released. The survey close date is October 15, 2007. For more information please contact Brett Kratchman at GGI at 781-444-5400 x202.
GGI NEWS & NOTES - Staff Updates We are pleased to announce two new members of our staff. Ryan Tze Chau Leung has joined GGI and will replace Marc K. Mansour as Manager, Executive Education. Ryan is a student a Northeastern University with a dual concentration in marketing and management. Brett D. Kratchman has been named Manager of Market Research at GGI. In this capacity, he will be responsible for administering the company's 2007 Product Development Metrics Survey. Brett is a Northeastern University student who is concentrating in marketing. Brett, of course, will be backed up by GGI's senior practitioners in this endeavor. We would like to express our appreciation for the fine work that Marc Mansour has done as GGI Manager, Executive Education, during his Northeastern University internship. We wish him all of the best in the future.
MANAGEMENT PRODUCTIVITY - Record Year for Fortune 500 Companies Condensed from "A Profit Gusher of Epic Proportions," Fortune 500 Magazine, April 30, 2007, Volume 155, Number 8, Pages 206 - 209, published by Time Inc., New York, NY, USA, ISSN 0015-8259. Fortune Magazine has announced its 53rd annual listing of the 500 largest companies in America for 2006. Thanks to high oil prices, Exxon Mobil posted the highest profits, $39.5 billion on $347 billion in revenue. Wal-Mart, the world's largest company by sales, took home $11.2 billion on $351 billion in revenues. GM, Chevron, ConocoPhillips, GE, Ford, Citigroup, Bank of America, and AIG respectively rounded out the top ten. Big movers in 2006 included US Airways Group, which jumped 208 spaces to #216. Hilton Hotels, Chesapeake Energy, Lincoln National, National Oilwell Vargo, and Google, all moved ahead more than 100 spaces in the rankings. At the opposite end of the spectrum, Avis Budget Group dropped nearly 300 spaces in 2006 to the 405 position. 2006 was a record year for the Fortune 500. Companies on the list collectively generated a record $785 billion in profits. The unprecedented earnings represent a 29% increase over 2005, and a 76% increase over the previous cyclical peak of $444 billion in 2000. This is due in part to a convergence of favorable economical forces. Meager increases in labor costs were largely overshadowed by gains in productivity. A weak dollar protected U.S. companies from foreign competition, and allowed them to steadily raise prices, further improving margins. Management also deserves credit for the current prosperity. Instead of putting cash into bad investments and acquisitions, efforts were made to reduce debt and slash interest payments. Additionally, hiring was kept in check and capital expenditures were minimized. For a full list of the Fortune 500 companies, click on the Fortune Magazine Web site.
BOOK REVIEW Payback: Reaping the Rewards of Innovation, James P. Andrew and Harold L. Sirkin, Harvard Business School Press, 2006, Copyright 2006, The Boston Consulting Group, ISBN 13: 978-1-4221-0313-5. Payback authors Andrew and Sirkin argue that the way an organization manages new ideas, rather than the number of ideas that it generates, is key to sustainable growth. Successful companies:
Payback discusses those times that it is appropriate to deploy innovation to achieve noncash goals. These include: the acquisition of new knowledge, enhancement of the company's brand, a stronger ecosystem of partners, and the revitalization of the organization. It also lists seven decisions that a leader must make rather than delegate when managing innovation for the highest cash return. While you will not find pat answers in this book, it does offer valuable insight and practical guidance for mastering the practice of innovation. We highly recommend Payback to managers who want to achieve maximum return on their innovation investment. This book provides timely insight on innovation to anyone involved in product development, be they in marketing, engineers, manufacturing or management. To learn more about Payback: Reaping the Rewards of Innovation or to order the book, visit the Amazon.com Web site.
UPCOMING PUBLIC SEMINAR - METRICS SUMMIT August 2007 We are delighted to be offering our Metrics Summit again in August 2007. Many prior Metrics Summit participants were kind enough to share their written comments so that future participants could get a better idea of what to expect Testimonials. GGI's Product Development Metrics Summit will be held August 21-23, 2007 in Metro Boston. Please join us for a series of three seminars, focused on major areas of importance to R&D executives and managers. GGI's Product Development Metrics Summit will be held August 21-23, 2007 in Metro Boston. Please join us for a series of three seminars, focused on major areas of importance to R&D executives and managers. The first seminar [Measuring Product Development II (MPDDII)- August 21] addresses setting hurdle rates, assessing risk and complexity, tradeoff analysis, measuring capacity, and assessing overall financial performance. Click here to view the MPDII abstract or to download the table of contents. The second seminar [Proactive and Predictive R&D Metrics (PPRD) - August 22] focuses on three stages of developing early, predictive metrics that will enable managers to foresee issue on the horizon or to know that success is in front of them. Click to view the PPRD abstract or to download the table of contents. The third seminar, a capstone, [Product Development Metrics Portfolios (PDMP) - August 23] covers the areas of metrics for R&D and product development that are not discussed in the prior two seminar days and then shifts focus. Company teams gather and working groups form around Innovator, Innovator/Extender, Balanced, and Extender R&D strategies for the purpose of developing a set of measures for the R&D organization as a whole, including the few measures that should be used by the corporation to measure R&D productivity, output, and overall performance results. Click to view the PDMP abstract or to download the table of contents. All three seminars are geared to executives and top-level professionals that manage entire organizations, departments, and budgets. It is also of benefit to senior program management executives. Registration is easy. If you are registering a team, you can register any number of people in one transaction. Our site provides for the contact information for one person though and we will contact you to get the contact information for the remaining registrants. If you are already registered, leisure time activities may be useful for planning transportation, meals, and personal time outside the Summit. For more information please download a brochure.
UPCOMING PUBLIC SEMINAR - INNOVATION SUMMIT October 07 - Early Bird Rates GGI will sponsor its R&D--Product Development Innovation Summit on October 2-4, 2007 in metro Boston. Please join us for eight comprehensive modules that surround the subject of Innovation in R&D and Product Development. Early Bird Rates and Discounts will be in effect until EOB Pacific Time, Friday August 3, 2007. The goals of the Innovation Summit are to help innovation leaders sort out "innovation processes" from "innovation tools and techniques. The Summit will review the history of innovation over the past 15 years and will inventory the range of tools, techniques, and software available today. All of this will be put in a context so that specific action may be taken to improve a company's inventive abilities. The Innovation Modules are:
All modules feature some level of case study discussion and include examples from a range of industries. There will be three group exercises to practice well-regarded innovation methodologies. As with all GGI Summits, we will pave the road for you to direct the selection and implementation of tools and process that will bring leverage to your organization. Discounts are available for teams of two or more people attending from the same company. If RN readers are planning on attending, please register now for the Innovation Summit. For more details on the Product Development Summit, please go to GGI's Innovation Summit web site which is also available on our home page. If you are already registered, our leisure time activities page may prove useful for planning transportation, meals, and personal time outside the Summit.
THE WISDOM iSTORE FEATURED PRODUCT Discounted Item: Periodically, GGI's iStore features one item that we discount 40%. We just changed the item a few days ago and are now offering our 2004 Product Development Metrics Research Summary.MR32h, 2004 Product Development Metrics Research Summary (Hard Copy) Goldense Group, Inc., Needham, MA, USA, ISBN 1-932468-32-2, October 2004 [149 pages] $1,430.00 [List Price $2384.00] This survey focuses on: product selection processes and the tools employed, the intellectual property (IP) management processes and tools employed, and the top corporate R&D metrics used in industry. The 2004 Product Development Metrics Research Summary is a 149 page report containing text and slides that describe and analyze the survey population of 202 companies. It provides interesting results regarding the methods and tools companies use to select projects and to generate innovation and/or intellectual property. It also includes the similarities, differences, and interrelationships between the product selection processes and their related IP management processes. GGI's Featured Item changes approximately every other month and is always offered at 40% discount. To order this material, please go to GGI's Featured Item on the GGI home page.
THE WISDOM iSTORE NEW LISTINGS - 6 New Products S10 "Product Development Best Practices Summit," Copyright 2007 by Goldense Group, Inc., Needham, Massachusetts, ISBN 1-932468-46-3, [473 pages], $960.00. Hard Copy. Price: S10h (hard copy) = $960, S10c (electronic corporate license) = $1,200, S10sc (electronic corporate/supply chain license) = $1,800. This 473-page Coursebook covers industry best practices across all areas of new product development that are of interest to persons responsible for directing and managing innovation at the corporate and business-results levels. This is the material that underlies GGI's three-day Product Development Best Practices (PDBP) Summit that was first offered to the public in the year 2007. This is a data-intensive document that is consistent with GGI's industry reputation in the quantitative aspects of product development and innovation. Seminar topics include:
For a copy of the Coursebook, go to The Wisdom iStore "Seminar Coursebook" button. View a description of S10. Order. S11 "Product Development Best Practices: Innovation," Copyright 2007 by Goldense Group, Inc., Needham, Massachusetts, ISBN 932468-47-1, [163 pages]. Price: S11h (hard copy) = $480, S11c (electronic corporate license) = $600, S11sc (electronic corporate/supply chain license) = $900. This 163-page Coursebook covers new product development best practices with a focus on innovation. It was developed for persons who are responsible for directing and managing innovation at the corporate and business-results levels. Seminar topics include:
A68 "Concurrent Practices: The Basis of Today's Best Practices," by Bradford L. Goldense, Copyright 2007, Concurrency, Society Of Concurrent Product Development, Inc., Boston, MA, USA, Volume 15, Number 3, Spring 2007, Pages 2-7, [5 PAGES], $50.00 Description: While industry is always looking for fresh ideas to improve the product development process, this article reinforces the idea that the established principles of Concurrent Engineering and Concurrent Product Development underlie newer practices such as Lean Product Design and Design for Six Sigma. The paper provides a historical account of product development from the Taylor Assembly Line Principle of the 1920s through today's concurrent practices. It discusses the hidden costs of poor product requirements and discusses how a formal 2-1/2 step selection process can eliminate pitfalls. It stratifies corporate innovation strategy into five levels or "Quintiles of Adoption," according to a firm's propensity for risk. For a copy of this article, go to The Wisdom iStore "Published Articles" button. View a description of A68. Order. A69 "Evolving IP Management Practices In The IP Industry," by Bradford L. Goldense, Copyright 2007 by BoneZone, Knowledge Enterprises, Inc., Chagrin Falls, Ohio, USA, Volume 6, Issue 2, Summer 2007, Pages 20-21, [2 PAGES], $30.00. This article reviews the results of a recent survey on intellectual property (IP) management practices in North American. Results show that while most responding companies recognize the value of IP, some do little to protect it. The article reports the percentage of companies that use internal steering committees or law departments to make IP decisions versus those that rely on external counsel. It also includes a cautionary tale about a major orthopaedic manufacturer that paid a $1.35 billion settlement to an employee who claimed it had mishandled the marketing of his inventions. For a copy of this article, go to The Wisdom iStore "Published Articles" button. View a description of A69. Order. Q31 "Using Research Metrics Helps Get More Bang for Your R&D Buck," Copyright April 2007 by Vicon Publishing, Inc., Amherst, NH [4 pages], $30.00. This article reviews three papers presented at the 11th Annual Conference on Product Development Metrics, Chicago, IL, sponsored by Management Roundtable. Included are:
For a copy of this quotation, go to The Wisdom iStore "Quotations & Citations" button. View a description of Q31. Order. T67 "Directing Corporate Innovation: The Next Five Years," Copyright 2007,Knowledge Enterprises & The Institute for Orthopaedis(tm), Rosemont, IL, [69 pages], $276.00. Hard Copy. Price: T67h (hard copy) = $276, T67c (electronic corporate license) = $345, T67sc (electronic corporate/supply chain license) = $518. Description: The paper focuses on seven innovation areas where current performance benchmarks exist and/or where performance benchmarks are beginning to emerge. The paper begins by highlighting some emerging definitions of innovation as this management science begins to become better defined and structured. Frameworks for portfolio management for different innovation strategies are summarized. A framework for pipeline management "yield loss" from concept to customer is described, along with current industry-wide averages of yield loss. A global benchmarking study that resulted in identifying seven strategic levers to drive corporate culture of innovation is summarized. Open innovation is addressed through a condensation of key piece of literature on the subject. A primary market research study ranks the usage, innovation, and inventiveness of common tools used in product development today resulting in the identification of six tools that likely fuel innovation during a typical product development process. A secondary market research study discusses 61 tools that are available to specifically drive innovation, most of which are not commonly used today. The paper concludes with primary market research identifying the most frequently used R&D and product development metrics in industry today and identifies the metrics that primarily measure innovation in industry today. Table of Contents BASELINE: Emerging Definition STRATEGY: Portfolio CONCLUSIONS For a copy of this technical paper, go to The Wisdom iStore "Published Technical Papers" button. View a description of T67. Order. BIENNIAL METRICS SURVEY RESULTS 2004 Product Development Metrics Survey - Product Selection, IP Management, and Top Corporate Metrics: The Summary Report (MR32h) and Highlights Report (MR31h) for GGI's 2004 Biennial Product Development Metrics Survey are now available for purchase by the public through GGI's Wisdom iStore. These reports are completely based on primary research performed by GGI researchers. The research includes 202 respondent companies. There was a 5% response rate. McKinsey & Company, Texas Instruments, Rockwell, Kimberly Clark, JDS Uniphase, Shure, Curtiss Wright Flight Systems and Datacard are representative of companies that purchase market research from GGI. The 2004 Survey focused on the following five areas of product selection and IP management: We have already shared many results with GGI RapidNews readers since we began this line of business in 1998. 2004 Survey results ran in six RN issues, RN V5I11 - RN V6I5, which may be found in the RN archives, along with results from prior years. Some additional complimentary information about the survey is available: The three commercial versions of the survey results that we currently offer for public purchase 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, and Individual sections of the research reports, as well as logical combinations of sections are also available. All reports are available in printed or electronic versions. These reports are available in the Market Research section of GGI's Wisdom iStore. 2002, 2000, 1998 Product Development Metrics Survey: The Summary and Highlights Reports for GGI's prior Biennial Product Development Metrics Surveys are also available for purchase by the public through GGI's Wisdom iStore. These reports are completely based on primary research performed by GGI researchers. Information about the purpose and focus of prior surveys may be found in our biennial survey archives.
GATEWAYS TO KNOWLEDGE GTK- Gateway To Knowledge is a DIRECTORY OF THOUSANDS OF LINKS to providers of engineering, purchasing, and manufacturing technologies and services. If you hit the right subjects, it is more useful than a search engine! The "main entrance" to GTK can be found at: http://www.goldensegroupinc.com/gateway/index.shtml For those of you that do not want to go through the main entrance above, some of the Gateways that we believe you will find useful or entertaining are highlighted below. Technology Providers
CALENDAR OF INDUSTRY EVENTS GGI's Calendar of Industry Events contains an up-to-date listing of links to Conferences, Seminars, Distance Learning Centers, Colleges & Universities, Executive Education, and Corporate-Sponsored Universities. The calendar has just been updated with 60 upcoming conferences and seminars throughout 2007. The categories we follow are: The categories of conferences, seminars, and distance learning are further organized into the following subject areas: If you are looking for a conference or other learning opportunity, check out the Calendar. This free service for our readers is front and center on GGI's Home Page. Or, go directly to the Calendar of Industry Events MEGA Gateway.
TELEVISION EVENTS Alexander Haig's World Business Review: Brad Goldense has made several appearances on Alexander Haig's World Business Review. 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 on GGI's web site. December 15, 2002 In-Studio with Alexander Haig (7.5 minutes) on CNBC paid programming: Streaming video for this segment is available on GGI's web site. 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 on GGI's web site. August 4, 2002 On-Location at GGI (3.5 minutes): This On-Location field report is available in streaming video on GGI's web site. 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/ggi-goldense-product-development-tv-television-broadcast.shtml. --------------------------------------------------------------------- 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. | |||