Best Practices for Innovation Project and Process Management
Research proves that companies that successfully apply a structured process to innovation project management reduce risk in the business process and increase innovation results over their peers. This is generally measured in one or more of three metrics:
Success rate – the percentage of new products that achieved their expected business goals.
- Typical success rates are 50-55%. Sopheon customers regularly achieve 75-85%.
Throughput – the number of products that you are able to move through your process and bring to market in a specific time period with available resources.
- Sopheon customer generally improve throughput rates by 15-30%, or viewed another way, their time to market improves by 15-30%.3.
Value – the contribution of the products in your portfolio, usually in new present value (NPV) or revenue or profit.
- Sopheon customers have achieved 75-100% increases in their portfolio value (and sometimes higher) as measured by NPV.
How can you achieve significantly improved results from managing innovation processes and projects?
Best-practice companies succeed where others fail by paying attention to value and feasibility:
- Customer need and benefit
- Alignment with market, product and technology strategy
- Market and customer attractiveness
- Financial ROI
- R&D, Manufacturing and Supply Chain feasibility
- Sales and distribution factors
Best practice companies kill innovation initiatives that don’t score well on these criteria – earlier is better – resulting in more focus on initiatives that score well, thereby saving costs and reducing resource constraints.
Knowing which innovation projects to fund and which to kill is vital to the success of your innovation initiatives and the future of your business. Best practices for managing innovation processes and projects always ensure that you are continually focused on doing the right projects – those that represent the greatest strategic, revenue and profit value to your company.
To be effective and successful, your innovation project management process must deliver viable products and positive business results.