Innovation project management

The key objective of this chapter is to describe a generic and systematic pharmaceutical manufacturing/assembly system design method that includes product, process, service systems, and even innovation project management architecture aspects of such systems. 

The detailed analysis, involving many respondents inside and outside the company, led to changes in the overall innovation process, ie, a company-wide priority system for innovation projects, measures of innovation for each functional and business area, training and supportive management systems for project managers, informal multifunctional teams in concept development and market development, a stmctured needs identification process, and appointment of a process steward to monitor the innovation process, measure how it functions, and coordinate innovation projects. 

Innovation as a process and the related research-and-development (R D) project management are considered to be two of the most complex information systems and engineering architectures due to the large number of attributes, processes, and dynamic changes projects go through during their life cycle. 

After this introduction, let us show our object-oriented system components, following the above described ISO 9000 2000 principles, and how we can model complex innovation and related project management processes using them [40-54]. 

In our innovation project examples we have focused on generic needs and requirements, and our associated customers are the pharmaceutical R D team members, managers, and operators in various industries. 

In the same dictionary, innovation is defined as the introduction of novelties the alteration of what is established and something newly introduced a novel practice or method . We can re-interpret this for the industrial environment as the introduction of new products, application processes or services to the market based on prior knowledge . Thus, innovation in R D is the generation of new ideas, which can then be used to produce these new products, processes and services. It should be obvious that this is an activity that does respond directly to planning. Certainly, at the development end of the innovation chain, rigorous planning is a prerequisite and this is covered in Section D on Project Management. 

The Project Charter and Innovation Financial Management are two of the most important techniques in this book. After all, you can generate thousands of clever ideas, but if no one needs or wants what you have to offer then your time and money is wasted. Therefore, don t overlook the value of spending time up front, and throughout the project, continually verifying that your innovation is marketable, feasible, and able to bring your organization a profit. 

Most business endeavors evolve from a series of assumptions related to functionality, outcomes, value, process, price, and so on. To identify which key assumptions need to be tested for your innovation, start by creating a comprehensive list of assumptions that are built into your idea. You can use the approach of Innovation Financial Management (Technique 11) to help with this task. Once you have a comprehensive list, prioritize your assumptions and select ones that will have the greatest impact on the success of the innovation. List these on the Project Charter. 

Financial projections are often one of the most scrutinized aspects of an innovation Project Charter, especially when executives are trying to select which few innovation projects to fund. Almost all financial projections include estimates of revenue. Or, you can estimate profitability using Innovation Financial Management (Technique 11). Either way, the financial projections listed on the Project Charter should be estimated from the point your innovation will be available to customers, and should align with the company s current accounting periodicity (monthly, quarterly, annually). 

To complete the initial project investment estimates, identify the cost of raw materials, people, training, time, capital expenditures, and other costs that will be required to bring your innovation to market. You can use Innovation Financial Management (Technique 11) to help you identify investment costs relative to your assumptions. 

Any innovation is risky. Innovation financial management reduces this risk by increasing the ratio of verified knowledge to unverified assumptions as the project unfolds. This learn-as-you-go approach ensures that you have the most accurate and updated information possible and enables you to confidently proceed or abandon the project at any point. 

The extent to which you can complete the innovation financial management documents early in the project depends on the level of innovation you hope to achieve. During incremental innovation, your initial ratio of knowledge to assumptions (Exhibit 11.1) will be higher than for substantial or breakthrough innovation. In either case, you should update the relevant financial documents, as well as the Project Charter, as you uncover new data throughout the project. 

Scenario To demonstrate the basics of innovation financial management, we ll continue the Pikes Peak Coffee example from the Project Charter technique (Technique 10). The company can use this approach to determine the profitability of adding a healthy, portable breakfast offering to its menu. 

If you ve completed a Project Charter, you ve established the business case for your innovation. Innovation hnancial management takes over from here and begins with a list of what you know (verihed knowledge), as well as what you need to find out (unverihed assumptions and unknowns). 

Detailed engineering is dull and often repetitive work. It does not often attract really imaginative engineers. When they encounter a design problem that requires innovative thinking they are usually inclined to take the least risky and frequently most expensive approach. In order to minimize cost the Project Manager must monitor their work to identify these problem areas and review their solutions. 

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