2017

Measuring Intellectual Property: Top 5 IP Metrics In Product Development

October 30, 2017 / Blogroll, Finance, Metrics, Organization, Process, Tactics

Due the technology boom in the late 1990s, which was coincidental with the rapid expansion of globalism and open innovation, and was then amplified by the less-than-stellar behaviors of certain countries, IP began to increase as a corporate priority.

As is the case when companies need to get their arms around new issues or opportunities, IP was first formed as “its own thing.” There was an “IP Department.” Executives know that they must subsequently facilitate the integration a new requirement or capability into the right places in their organizations. Leading companies began to do it around 2005. For example, IP professionals were collocated in R&D and had dual reporting relationships – among many other techniques.

There was another issue though. That issue remains today. Valuing IP is a real bear. Little by little industry is building experience as each transaction occurs. However, it is still the wild west. The value is what you are willing to pay for it. Finance folks rule the roost. Accounting folks are a long way from being able to assign standard values. But, as experience builds, standard-like values will emerge as industry gains more and more examples for reference. For certain types of commodity IP, standard ranges have already formed.

Well, as IP integration and uptake occurs, metrics follow. Patents and Trademarks have long been metrics used by R&D and Product Development. They are three of the top five still, and will likely remain. But, two of the top five penetrating IP metrics have now been superseded by “licensing.” “Number of Out-Licenses” and “Number of In-Licenses” have cracked the top five IP metrics now used across industries by the innovation functions.

Licensing is another form of codified IP, like patents. Note that industry is still counting “its,” as it still does with patents (vs. “monetized revenues and/or profits”), but this is a clear sign of the progress of integration and awareness building.

Top 5 IP Metrics Used By Product Development CXOs

Measuring Intellectual Property: Top 5 IP Metrics [Machine Design – October 2017] looks at the gradual inroads that IP metrics are making in the overall measurement of product development performance; and identifies the Top 5 IP Metrics used by R&D and Product Development.

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The Top 10 Product Development Metrics: Then & Now

October 30, 2017 / Blogroll, Finance, Metrics, Strategy, Tactics

GGI started doing primary research on the penetration of specific metrics in R&D and Product Development in 1998. Now 2017, about 20 years time, we have taken the pulse six times. Once every 3-4 years is a good cadence for R&D. Process change takes more time in long duration business functions, such as the innovation functions, and then metrics follow.

There are always incremental changes in each research effort, and a few new metrics like the “Vitality Index” and “ROInnovation” that arise out of the blue, but the overall tenor remained the same. CEOs accepted “activity metrics” from R&D. This has been true since the start of my career.

Well, evolving from the economic challenges of this past decade, CEOs now expect business performance metrics to a much greater extent. Activity metrics still prevail among the top cross-industry metrics, but the tide has clearly shifted. New Product Revenues (aka Vitality Index) cracked the Top 10 in the early 2000s. But, not a single measure of profit could be seen – until recently.

Business performance measures musn’t always be about revenue and profits, by any means. The point is that there has been “a glaring absence of any prevalence of true performance measures.”

The additions, changes, and rearrangements in the Top 10 won’t knock your socks off. But, given the decades of historical consistency, this is great progress in the advancement of management science for the creative functions.

We looked at 101 different corporate-level metrics. Here are the Top 10. You be the judge.

Top 10: Historical

Top 10: Today

Top 10 Product Development Metrics: Then & Now [Machine Design – September 2017] identifies the top ten metrics, the degree of penetration across industries, and discusses the macro change that has taken place in the recent decade.

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The Importance of Engineering Work Ethic

August 15, 2017 / Blogroll, Finance, Metrics, Organization, Process

How much “overhead” does your company require of its professionals chartered with inventing the future? Does your company manage to keep overhead below 50%? Historical figures indicate “other responsibilities” took almost 65% of the work day.

Add Personal Freedoms To Structural Overhead

What about personal activities that get juggled during the work day at a much greater rate than in the 20th Century, now that everyone has cell phones and personal devices in the 21st Century? Are professionals working longer hours to compensate for the personal time they take during the work day (Figure 1)?

Figure 1

Focused Work vs. Unfocused Work

Does multitasking further infringe on productivity, just as repeated set ups and tear downs used to infringe on manufacturing productivity? The act of switching tasks requires mental time to regain one’s previous train of thought. How many times does switching occur each day? Certainly there is more switching during a work day today than in any time in human history. How many times can one switch tasks each day without incurring overall mental fatigue that affects all work, and one’s personal life?

Is anyone paying attention? Or, is this topic now considered an infringement on people’s freedoms – even though their employer is paying them for a full work day? Is it heresy to even bring up the subject in this day and age? Many would say yes! It is heresy!

Little Picture vs. Big Picture

The preceding paragraphs address the trials and tribulations of individuals in the workplace during a typical work day. But, there is more to it. Company cultures have impacts. Country cultures have impacts? And, these impacts accumulate over time.

In the next ten years there will be a rearrangement of the top industrialized countries as measured by Gross Domestic Product. Do the countries that are forecast to become the dominant economic players of the future permit such daily workplace freedoms? Likely not. Are any of the industrialized nations that lead the world today currently forecast to rise in global rankings? None that I am aware of.

What then is the impact of employer overhead? What is the impact of personal daily freedoms in mature industrialized economies, that are now considered to be almost a human’s right, on the ranking of countries and their prosperity a decade from now? Will dropping productivity trends reverse their course? No they won’t, not unless something changes.

Living In Reality

Once rights or benefits have been granted or assumed, it is hard to reverse course. Certainly no one wants to go backwards. But, it seems that as we have moved forward on an individual level in the little picture that it is having a non-positive impact on the big picture – which will play out in the not too distant future.

The Importance of an Engineering Work Ethic [Machine Design – August 2017] makes the case that both employers and employees may benefit if a bit more attention is paid to structural overhead and personal multitasking during the work day.

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MOON-ON-A-STICK

INNOVATION MASTERCLASS

Measuring Product Development Productivity & Performance

October 3-4, 2017

The Moller Centre

University of Cambridge

BROCHURE

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GGI on TWITTER

GGI Tweets content from our primary and secondary research,

140-character summaries of good articles in trade publications,

and announcements and recaps of GGI events and presentations.

@GoldenseGroup

Please consider following GGI on Twitter.

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Metrics for IoT-Enabled Products

August 14, 2017 / Blogroll, Finance, Metrics, Process, Strategy, Tactics

Metrics lag the introduction of new processes and new technologies by several years. There are many reasons. New business processes take years to evolve and become the new normal. Then, new measures get adopted. The infrastructure behind metrics is complex. People have to change what they track and record, then IT has to put it into a system. Management is uncomfortable with new metrics that do not have several years of past data. Few choose to recreate that data; rather they wait several years for it to accumulate and then they place the new metric into service. As well, R&D and product development are among the least understood major business functions. Business leaders hesitate to change measures in areas where they did not have direct experience on their way to the top of the corporate ladder. Metrics for IoT-enabled products, processes, and technologies will be no different.

Risk Being Wrong

However, the IoT has been around for a few years now. Some companies are in their third generation of IoT-enabled products and have some initial metrics in place. Other companies are just warming up. Given the almost unlimited scope of what the internet makes available, and thereby enables for all companies, picking one’s spots will be critical.

Discussions about appropriate metrics should probably begin sooner then they have historically begun. Focusing on what to measure will spur the refinement of strategy and thinking on competitive positioning.

Get Organized

While there will be many new metrics, GGI estimates roughly fifty will be tried and will subsequently sort-out to a handful that will become widely adopted across industry, it will be best not to wait to see what others measure. The playing field is nearly unlimited. The generally adopted metrics may not yield the specific strategic advantages that most companies will seek. Don’t sit back and wait to copy what others have done.

Over time, metrics will generally sort-out to four major categories: Corporate Metrics, Project/Product Metrics, Functional/Technical Metrics, and Improvement Metrics. A corporate brainstorming session might begin with these four areas for thought, and then seek input from participants using these general buckets to organize ideas.

Turn Over Rocks

At the next level of thinking, metrics for the IIoT and IoT will be different than many other corporate initiatives that have occurred over the years. For example, take Open Innovation. Whether a product originated organically or openly, the same measures capture customer experience. This will not be the same for IIoT- and IoT-Enabled products. Data generated internally within a company’s IIoT may have some utility for customers. Data acquired externally through the IoT, and/or a customer’s use of a product, may have some utility for the company that originally created the product – to enhance it, perhaps in real time.

These data may also be selectively packaged to create new “soft products,” that may or may not have anything to do with the value offering of the original product, that could produce incremental revenues and profits. Few can see this far ahead. It will take time for big data to accumulate to know for sure the assets one has, or has access to, but forge ahead with the thinking.

Thinking through these four areas will result in generating ideas that may then be subsequently refined to become Corporate Metrics, Project/Product Metrics, Functional/Technical Metrics, and Improvement Metrics.

Metrics for IoT-Enabled Products [Machine Design – July 2017] builds on these frameworks and suggests several specific metrics that may some day become generally adopted by industry – such as “Sensors Per Product.”

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MOON-ON-A-STICK

INNOVATION MASTERCLASS

Measuring Product Development Productivity & Performance

October 3-4, 2017

The Moller Centre

University of Cambridge

BROCHURE

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GGI on TWITTER

GGI Tweets content from our primary and secondary research,

140-character summaries of good articles in trade publications,

and announcements and recaps of GGI events and presentations.

@GoldenseGroup

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WEBINAR: Measuring Product Development Productivity & Performance

April 26, 2017 / Blogroll, Finance, Metrics, Process, Strategy

On October 3-4, 2017, in conjunction with Moon-On-A-Stick [MOAS], GGI will be presenting a fast-paced two-day version of our R&D-Product Development Metrics Summit at the renowned Moller Center at Churchill College on the University of Cambridge campus in England.

We’ve never attempted the subject matter in two days before. Most feedback over the 21 Metrics Summits GGi has held in the USA is that three days was tight. Participants are sure to to have their gray matter running overtime!

MOAS is the reincarnation of a firm GGI collaborated with a dozen years ago. Under new ownership, our paths have crossed again on the subjects of innovation and measurement. Currently, Dr. Robert Cooper collaborates with them on agile and Stage-Gate®. Dr. Jay Paap collaborates with them on technology strategy and roadmapping. GGI will collaborate with them on performance measurement and metrics.

The Webinar

MOAS asked if GGI would give a webinar that would stand alone as an educational session, while also giving an overview of what folks might expect on October 3-4. The webinar occurred Tuesday April 25 and lasted 42 minutes.

If you would like to view a recording of the webinar, we ask that you provide your name and email address to see the streamed video. Warning. You are sure to get a follow-up email or two to see if you might want to participate in October. 🙂

View The Webinar Streamed Through Your Browser

Please take the plunge. No one left early from this webinar. True story!

The Masterclass

If you would like additional information regarding our whirlwind two days coming up in October, there is a simple Registration Site. There is also a Brochure. Thank you for your interest!

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TWITTER

GGI Tweets content from our primary and secondary research,

140-character summaries of good articles in trade publications,

and announcements and recaps of GGI events and presentations.

@GoldenseGroup

Please consider following GGI on Twitter.

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Press Release: 21st R&D-Product Development Metrics Summit

February 7, 2017 / Blogroll, Metrics, Strategy

GGI Introduces New Innovation Metrics and KPIs that Systematically Enable Internet of Things (IoT) Capabilities in Products and Processes

C-Level and Program Office perspectives on the best practice metrics and KPIs that drive innovation productivity, efficiency, and new product performance in corporations.

View the entire press release directly on the PRWeb site

Needham, Massachusetts (PRWEB) February 07, 2017 — At least once every decade, technological advancements and stronger competition have necessitated the creation of measures that both drive and monitor the innovation performance of new technology and product capabilities. The advent of the Industrial Internet (IIoT) and the Internet of Things (IoT) will be no different. The few IIoT/IoT metrics that exist today will multiply greatly in number in the decade ahead. Industry leaders, as they did for the explosion of intellectual property metrics this past decade, and product portfolio and open innovation metrics before that, will develop new metrics that specify IIoT and IoT design criteria and requirements in product creation and development processes so as to systematically enable capabilities across their products and product lines.

New-To-The-World IIoT & IoT Metrics

There will be IoT-related metrics to assure sensors exist on and within products to gather data throughout the product life cycle. There will be metrics that quantify the ability of sensors to generate, qualify, and archive data to big data repositories. There will be metrics that gauge the amount of data actually captured vs. data that was lost or corrupted. There will be metrics that rate a company on the ability of their products to fit in multi- vendor settings, such as emergency rooms or factory floors or transportation hubs. In many ways, the sky is the limit for the number of metrics that might be created for a technology with a goal to tie everything together.

To be competitive at the end game, companies will need strong design thinking to modify their R&D, product development, and product commercialization processes. Capabilities will need to be designed-in to products and be part of the “product’s system.”

GGI is currently concentrating our efforts on IIoT and IoT metrics that drive and enable capabilities in products and their manufacturing processes. For example, in the areas of product architecture and modularity, expect metrics that rate product designs on their “sensor-readiness,” “ability to receive and adjust to signals during manufacture and then in customer settings,” and “ability to generate data of customer value.” In the areas of product planning and definition, expect metrics that assess the strength of the product to “fit with data gathering/producing/monitoring infrastructure” of the differing markets and customer environments. In the areas of product design and development, expect metrics that assess the “effectiveness, efficiency, and coverage of sensors” in the product; along with new “reliability measures for up-time and data error rates.”

New metrics and KPIs will also emanate from customers and the marketplace(s). Customer satisfaction is sure to have a number “IoT satisfaction” components. Research companies and market/investor analysts are sure to develop “comparative indices on the best IoT-enabled industries and companies.

More Emphasis On Risk Management

The Internet of Things is not the only measurement area that is getting attention. With all that is going on in the world, Risk Metrics are evolving. Most companies, ERM system or not, have little actual knowledge of the monetary business, portfolio, and product risks they face. Only 35-40% of companies can currently quantify their potential risk costs. HBR’s article on “VUCA” has helped many to think outside the traditional risk metrics box.

Better Innovation Productivity & Efficiency Metrics

CFOs are becoming more active in creating metrics that measure the financial output of R&D and product development, for a given amount of R&D spending; productivity equals output divided by input. The Great Recession spawned new metrics like “NPD Efficiency” and “Research Quotient.”

Personal & Corporate Advancement

If staying current and employing the best available metrics is important to you or your company, please join us February 28 to March 2, 2017 in Norwood, Massachusetts for the 21st R&D-Product Development Metrics Summit. We will discuss the KPIs, metrics, and measures that drive innovation productivity and performance from a C-Level viewpoint. Marketing managers, program managers, and technical managers that manage budgets or groups of people will also embrace this curriculum and workshop.

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Contact Information:

Brad Goldense

Goldense Group, Inc. [GGI]

+1 781-444-5400 Ext: 205

Steering Innovation Productivity & Performance in Organizations & Programs

January 16, 2017 / Blogroll, Finance, Metrics, Process, Strategy

The 21st R&D-Product Development Metrics Summit is coming up, February 28 to March 2, 2017, in Norwood, MA. Our conference facility is equidistant between the Providence and Boston airports. A comprehensive renovation was just completed last fall. We are easy to get to, the place is beautiful, and the food is great!

New Micro-Seminar Added

Most important is the content. We’re adding a new section on IIoT and IoT metrics in the Workshop; and we’re projecting that one or more of the metrics we’re rolling out will be mainstream in 5-7 years. We’ve done this before, several times. The Internet of Things comes of age within two or three product cycles. Does your company systematically “design-for-the-IoT?” Can you measure it as an organization?

What’s New

In addition to the IIoT and IoT, recent curricula additions of micro-seminars on metrics for advanced development and intellectual property inspired some alumni from GGI’s initial Summits to return for an update. They were not disappointed. Gen 6, 7, and 8 of advances in the science of managing R&D and product development have significantly changed the landscapes of process and metrics.

The Top 100 Corporate Metrics underwent a historic change during the prolonged recession. The Top 25 metrics are now in a different order. Real innovation was way down, but measurement science progressed. The specificity of measuring innovation rose. Human Resources protocols opened-up in several ways, enabling performance metrics that were near taboo a decade and more ago. Much more.

If you have not yet participated in GGI’s Metrics Summit, please give it some thought. If you’re an alumni before 2012, we hope it is food for thought for you. Pure innovation will be on the rise in the years ahead. We can see it restarting already! Effectiveness, efficiency, and productivity initiatives will continue. These opposing goals are no easy challenge. Are you using metrics to tease the best innovation, output, and productivity from your R&D organizations?

Participant Companies

We’re honored that these great companies included GGI as part of their thinking for measuring R&D, product development, engineering, and scientific performance.

Two years ago at the 53rd R&D 100 Awards, some 15 of the winning companies had participated in GGI’s Summits – including two of the actual winners who walked to the stage. We hope this metric correlates for you.

More Updated Content

Just this past year alone, updates include a number of new CXO-level metrics that hit critical mass in 2015 and 2016. And, we have a fresh look at the Top 100 Metrics used in industry. The great recession created significant change in the metrics corporations now use to drive productivity and performance. This new information is statistically accurate.

Plus, with all that is going on the world, the science of measuring Risk is getting attention. Most companies, ERM system or not, have little actual knowledge of the business, portfolio, and product risks they face. We have taken the view of a CFO for the advances in risk science that we will be presenting.

Please Join Us In Early Spring 2017

Senior executives wishing to put themselves and their colleagues in a better position to direct and drive product creation and commercialization should strongly consider attending. Many participants have said, “this Summit covers everything an officer and senior manager needs to know on the subject of Metrics.”

Please join us. Most participants are surprised at the practical approaches and thinking they take away.

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TWITTER

GGI became significantly more active on Twitter in 2016.

No chit chat.

GGI Tweets content from our primary and secondary research,

140-character summaries of good articles in trade publications,

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A quick look?

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Follow GGI on Twitter.

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Metrics for IIoT and IoT In The Product Development Process

January 12, 2017 / Blogroll, Finance, Metrics, Process, Strategy

This is the third and final article of three consecutive monthly articles in Machine Design [November 2016, December 2016, January 2017] discussing the strategies and tactics that companies should take to position themselves to compete effectively as the Internet of Things evolves to become the end game for products and services in the years ahead.

This article makes the point, like all major industry process and/or technology initiatives, that a whole new group of metrics will be developed to facilitate and monitor the “capabilities” and “readiness” of products and processes to perform in the age of the Industrial IoT [IIoT] and IoT. Most recently, we saw this happen with intellectual property as the channels to monetize it came of age.

Industry leaders already have IIoT and IoT strategies and are now augmenting their products and processes, and creating appropriate metrics. Most companies are still working on their strategy.

Metrics for IoT in the Product Development Process [Machine Design – January 2017] addresses the various types of new metrics that will arise and evolve in the years ahead, offers some specific examples of new IIoT/IoT metrics, and identifies several companies we consider to be the early industry leaders.

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ANNOUNCEMENT

GGI’s next Metrics Summit is February 28 to March 2, 2017

A quick note to let you know that our

21st R&D-Product Development Metrics Summit

is coming up.

It will be held in Norwood, Massachusetts.

Our conference facility is equidistant between

the Providence and Boston airports,

and a comprehensive renovation was completed last fall.

The place is beautiful, the food is great, and WI-FI is throughout.

Our content is stimulating, our discussions are lively,

and the teamwork during the Workshop

makes for lasting relationships with colleagues

who deal with many of the same professional issues and challenges.

Please join us.

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TWITTER

GGI became significantly more active on Twitter in 2016.

No chit chat.

GGI Tweets content from our primary and secondary research,

140-character summaries of good articles in trade publications,

and announcements and recaps on GGI events and presentations.

A quick look.

@GoldenseGroup

Please follow GGI on Twitter.

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Design Thinking for IIot and IoT in the Product Development Process

January 12, 2017 / Blogroll, Process, Strategy

This is the second article of three consecutive monthly articles in Machine Design [November 2016, December 2016, January 2017] discussing the strategies and tactics that companies should take to position themselves to compete effectively as the Internet of Things evolves to become the end game for products and services in the years ahead.

This article makes the point that capabilities for the Industrial Internet [IIoT] and the Internet of Things [IoT] should begin at the earliest stages of product architecture and the commissioning of the product into the development pipeline. Certainly, many existing products will need to be retrofitted for IIoT and IoT capabilities. But, the time to start initiatives for new product “IIoT/IoT-Readiness” is now.

Design Thinking for IoT in the Product Development Process [Machine Design – December 2016] addresses the “8th Generation” of product development processes that will systematically enable “IoT-Readiness” and “IoT-Capabilities” in new and future products and product lines.

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ANNOUNCEMENT

GGI’s next Metrics Summit is February 28 to March 2, 2017

A quick note to let you know that our

21st R&D-Product Development Metrics Summit

is coming up.

It will be held in Norwood, Massachusetts.

Our conference facility is equidistant between

the Providence and Boston airports,

and a comprehensive renovation was completed last fall.

The place is beautiful, the food is great, and WI-FI is throughout.

Our content is stimulating, our discussions are lively,

and the teamwork during the Workshop

makes for lasting relationships with colleagues

who deal with many of the same professional issues and challenges.

Please join us.

••••••••••••••••••••••••••••••••••••••••••••••••••••••••

TWITTER

GGI became significantly more active on Twitter in 2016.

No chit chat.

GGI Tweets content from our primary and secondary research,

140-character summaries of good articles in trade publications,

and announcements and recaps on GGI events and presentations.

A quick look.

@GoldenseGroup

Please follow GGI on Twitter.

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Sensors Are Essential To Be IIoT and IoT Competitive

January 12, 2017 / Blogroll, Finance, Process, Strategy

This is the first article of three consecutive monthly articles in Machine Design [November 2016, December 2016, January 2017] discussing the strategies and tactics that companies should take to position themselves to compete effectively as the Internet of Things evolves to become the end game for products and services in the years ahead.

This article makes the point that the conclusions of higher level analytics and artificial intelligence, which are based on the available big data, will be insufficient and/or inaccurate if the sensors that are built into the product and its process of manufacture do not capture “all” the available data or cannot react to the data that is available. Robust sensor deployment and engagement/reaction will likely form the foundation for the wealth that will be generated from the Internet of Things.

Sensors Are Essential To Be IIoT and IoT Competitive [Machine Design – November 2016] addresses the subject of “systematically sensorizing products” to position companies for the not-too-distant future where pricing and value become increasingly influenced by a product’s information set and not just its physical product or software performance.

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ANNOUNCEMENT

GGI’s next Metrics Summit is February 28 to March 2, 2017

A quick note to let you know that our

21st R&D-Product Development Metrics Summit

is coming up.

It will be held in Norwood, Massachusetts.

Our conference facility is equidistant between

the Providence and Boston airports,

and a comprehensive renovation was completed last fall.

The place is beautiful, the food is great, and WI-FI is throughout.

Our content is stimulating, our discussions are lively,

and the teamwork during the Workshop

makes for lasting relationships with colleagues

who deal with many of the same professional issues and challenges.

Please join us.

••••••••••••••••••••••••••••••••••••••••••••••••••••••••

TWITTER

GGI became significantly more active on Twitter in 2016.

No chit chat.

GGI Tweets content from our primary and secondary research,

140-character summaries of good articles in trade publications,

and announcements and recaps on GGI events and presentations.

A quick look.

@GoldenseGroup

Please consider Following GGI on Twitter.

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Driving Product Development^SM

Driving Product Development^SM