fei - spi (survey, probe and intervention of effective...
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FEI � SPI (Survey, Probeand Intervention ofEffective Practices)
August 1, 2004 overview
FEI - SPI TeamHeather Alderman (IRI)Christina Bramante (Cabot)Scott Boyce (Rohm and Haas)Robin Dvorak (IRI)Cindi Hartz (Dow Corning)Kathy Herald-MarloweMichael Incorvia (International Flavors & Fragrances)Elko Kleinschmidt (McMaster University)Peter Koen (Stevens)Drew Kugler (WelchAllyn)Rita Pilate (J&J Consumer)Lorette Pruden (Inventive Strategies)Becky Seibert (Crompton)Jeff Stirrat (Ethicon)Brenda L.Tollett (The Valvoline Company)
Presented byLorette Pruden, Ph.DAIChE Fall Meeting, 2004
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Copyright 2003 IndustrialResearch Institute
NCD Model
ENGINE
OpportunityIdentification
OpportunityAnalysis
IdeaGeneration
andEnrichment
IdeaSelection
ConceptDefinition
NPD
Tech SG
ConceptSelection
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Agenda
! Project Goals! Background! Methodology! Time Line! Funding! Next Steps
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FEI SPI Project Goals
! To discover and optimize effective practices inthe FEI using the NCD model as the construct
! Develop an assessment tool and metricscompanies can use to evaluate the FEI" Similar to the ProBE questionnaire-based audit
developed by Cooper et. al. for the NPD portion
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ProBE
! ProBE" Compares an individual company�s approach
and results to the average business andagainst the top 20 percent performers
" Up to 16 key people of an organizationevaluate the company�s NPD approach andfill out the questionnaire.
" Over 100 characteristics of the company�sproduct program and its performance aremeasured.
" Highlights the strength of the organization,pinpoints weaknesses, identifies areas ofdisagreements amongst the companyevaluators
" Base to develop better approaches for thefuture.
www.prod-dev.com
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Background
! Numerous Surveys on Best Practices in the NPD portion have beendone (the classics!)
" Cooper, R.G. and Kleinschmidt, E.J. New products: What separateswinners from losers? Journal of Product Innovation Management,4(3):169-184 (1987)
" Bacon, Glenn, Beckman, Sara, Mowery, David and Wilson, Edith.Managing product definition in high technology industries: a pilot study.California Management Review, Spring 1994:32-56 (1994)
" Brown, Shona L. and Eisenhardt, Kathleen M. Product development:Past research, present findings, and future directions. Academy ofManagement Review, 20:343-378 (1995)
" Song, X. Michael and Parry, Mark E. What Separates Japanese NewProduct Winners from Losers. Journal of Product InnovationManagement, 13:422-439 (1996)
Results of these studies have lead to anunderstanding of best practices in NPD
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Background
! NO similar studies have been done in the FEI
Results of the studies proposed herein will lead to afundamental understanding of the most effective
practices used in the FEI
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Background
! Focus on Chemical, Foodand Beverage, MedicalDevices and PetroleumIndustry
! Why?" Cannot compare FEI across
all segments
Industry Focus
Total Industries inIRI (185)
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Agenda
#Project Goals#Background! Methodology! Time Line! Funding! Next Steps
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Methodology
I. AdditionalFEI CaseStudies
II. SurveyDevelopment
III. DeterminingCurrent Practices
(Large Sample Survey)
IV. Improvingon CurrentPractices
V. AssessmentTool
Development
VI. Implement practicesand measure outcomes atparticipating companies
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Methodology
! Objective:" Understand key methodologies, practices and culture
at 4-5 companies who were not part of the NCDeffort
! Purpose" To be as inclusive as possible
I. Additional FEI Case Studies
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! Develop validated survey which includes outcomemeasures for the FEI and each of the elements
! Validate survey and outcomes with IRIcompanies and academics
II. Survey Development
Methodology
Critical to identify outcome measures which can measurethe effectiveness of the FEI and each of the elements
The survey effort will be of little value withouteffective outcome measures for the FEI
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Methodology
III. Determining Current Practices� Large Sample Survey
! Administer Survey to at least 100 companies in the targetedsegments" To be filled out by at least 5 people in SBU:
$ Senior Management (�C� level)$ R&D � director, CTO$ Marketing Management Level$ Plus two other � key stakeholders/knowledgeable involved in
FEI: team project leader / team membersNeed to have multiple people from each SBU filling out survey
! Target a return greater than 80%! Analyze the results! Identify best practice companies
" Top 20% companies
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Methodology
IV. Improving on Current Practices
! Activity:" Visit 10-12 �best� practice companies identified in the large
sample survey and matched pair in the 50% octal! Objective:
" Go beyond the large sample survey to obtain concrete andspecific examples of activities at �best� performers
! Outcome:" Understanding of new and optimum methodologies to be used in
the FEI.
This effort will allow us to go beyond the survey and betterunderstand the actual practices and methodologies which have
resulted in success
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Methodology
! Assessment Tool" A questionnaire of FEI activities, practices, methodologies
and tools and problems determined from �20%� bestperformers
! Objective of Tool" Highlight companies strengths and weaknesses in the FEI
V. Assessment Tool Development
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Methodology
! Objective" Assess the impact of using the assessment tool at
participating companies! Evaluate Results
" Evaluate the results and monitor how the companies correctthe weakness and areas of deficiencies
! Monitor" Reapply the assessment tool and FEI outcome measures on
a yearly basis
VI. Implement practices and measureoutcomes at participating companies
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Agenda
#Project Goals#Background#Methodology! Time Line! Funding! Next Steps
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Funding
! Supported as one of the activities of Consortium forCorporate Entrepreneurship (www.ceconsortium.org)" Ethicon, ExxonMobil, Honeywell and Kraft
! NSF Grant" Approved $295,080 3 year grant" Co-Investigators: Elko Kleinschmidt, Academic Partners: Eric
Von Hippel (MIT) and Dorothy Leonard (Harvard)" Industry Partners:
$ Cabot, Ethicon, ExxonMobil, Rich Products and LORDCorporation each committed $15K ($5K/year)
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2003 2004 2005 2006
Time Line
II. SurveyDevelopment
III.Survey
Practices
IV. CaseStudies
V. ToolDevelop
I. Add Case Studies
VI. Implement Practices
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Next Steps
Can be downloaded from web site (www.frontendinnovation.com/survey)
Survey
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Next Steps
! Within 2 weeks after receiptof 5 surveys" Senior Management (�C�
level); R&D � director, CTO;Marketing Management; Plustwo other � keystakeholders/knowledgeableinvolved in FEI)
Value Proposition
Compare your SBUresults to averageand top quartile on
the web
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Next Steps
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NPD Proficiency
FEIO
utco
me
Early Results