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Four Stages of Competition

According to Dictionary.com, the origin of the word “competition” is Latin, around 1600 AD.  One definition is “a contest for some prize, honor, or advantage”.  Another definition is “the act of competing; rivalry for supremacy”.  In business, we often think of our competition as other organizations that compete with similar products in a marketplace. 

It seems that the formal definitions of competition are stronger, harsher than what we experience in our day-to-day business lives.  There is only one prize in sports, for example.  Many teams compete each year, but only one is the “national champion”.  Many individuals compete in the Olympics, but only one can win the gold medal.  In business, only a single product or brand can be number one in a given category.  And winning means the highest profit. 

Competition and the Product Life Cycle

In sports, the “best” teams usually are sorted out early in the season.  Unfortunately, players suffer injuries that can decrease the skill level and balance of a team.  When Klay Thompson suffered back-to-back injuries, the chances dwindled for the Golden State Warriors to win an NBA championship this year.  That injury on top of losing Kevin Durant to another team, reduced the skill and balance of the team from a position of “winner” to “needing to recruit”.  While Golden State has been a perennial competitor in the NBA, their losses created space for stronger competition in the league by Utah and the LA Clippers, for instance.  (Read more about Who is Your Competition here.)

In business, early market entrants might be the strongest competitors.  Yet, over time, different companies produce and market products that offer competitive advantages.  Just like NBA teams have an initial ranking that morphs and adjusts throughout the season, new products also have different competitors throughout the product life cycle (PLC). 

The Product Life Cycle (PLC)

Most products go through a similar life cycle, though the speed of the life cycle varies.  New-to-the-world products are launched into the introductory phase of the PLC.  Often there is little direct competition at this stage.  The new product is designed to meet a unique market need and the target customer might represent a small market. 

Product Life Cycle (PLC)

As more customers adopt the product and via intensive product promotion, the market share grows.  This is, of course, called the growth stage of the PLC.  Companies focus on building brand awareness and increasing distribution during this phase.  However, as more firms view the success of the product in meeting customer needs, competition also grows. 

As a market becomes saturated with the availability of a high number of like products, a product enters the maturity phase.  In this stage of the PLC, companies face price pressures and begin to focus on cost-cutting.  Products with differentiation can maintain profit margins but, in general, the product faces commoditization. 

Finally, an organization must make the tough decision to abandon the product or reinvest.  This decision occurs in the decline phase of the PLC.  Competition actually dries up because profit margins are so low.  Unfortunately, paying customers also dry up. 

Your Product, Your Competition

Knowing where the product is at on the PLC is a starting point to analyzing its competitiveness.  You have to understand if the market presents an opportunity for growth in market share or in market penetration.  It is also crucial for firms to make the (sometimes unpleasant) decision to abandon a product when it is in decline. 

Analyzing the number and type of competitors (direct or indirect) can help organizational leaders make the best, most profitable decisions.  These decisions also must include alignment of new product innovation programs, business acquisition strategies, and overall growth goals and objectives.  Economic and regulatory factors, external to the firm, impact markets and innovation as well. 

Next Steps

Do you know your strategy to address competitive threats?  If not, learn to Analyze the Competition in a self-paced, online course.  Register here and earn 2PDUs. 

image of computer with key for competitive analysis

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What Does Leadership Look Like?

Years ago, I recall sitting in a conference room with a senior engineer.   He spent a great deal of time sharing with me and other junior staff that we could – and should – be leaders.  He went on to tell us that we did not have to be managers to be leaders.  The very next month, I was promoted to my first supervisory role. 

To be completely honest, I was devastated at being promoted.  I am not an emotional person (think Spock), but I went home and cried.  What did the company think of me if they were making me a supervisor?  Wasn’t I smart enough?  Why had I spent all those years working hard to achieve high ratings at the company?  Was my graduate research in chemical engineering meaningless?

Later, I came to realize that instead of thinking I was dumb, the company valued my ability to work with diverse groups of people.  They appreciated my aptitude to quickly understand data and make a logical decision.  I also learned that in a managerial role, I was naturally exposed to more technologies and opportunities to learn.  I have an insatiable appetite for education and learning, so being a manager was ultimately a good fit! 

Leadership Characteristics

While I was initially upset at my promotion, I have since (many times over) tried to evaluate what traits I demonstrated so that my boss trusted me with leading others.  I have also looked at all my bosses over time and other managers and leaders in lots of organizations since then.  There are several characteristics that help someone become a successful leader. 

Be A Good Listener

I know my husband would say I talk too much, but being a good listener is an important trait for leaders.  For those of us with technical backgrounds, we often jump to a conclusion early in the conversation and want to shout out the answer.  We also crave recognition for our clever and smart approaches to problem-solving.  Thus, we are excited to offer solutions.

Yet, great leaders don’t make judgments or put forth their own ideas first.  Great leaders listen to their team members.  We ask subject matter experts (SMEs) to present their technical arguments and opinions, including risk assessments before making a decision.  The higher up the ranks you go as a manager, the further away from the facts and data you get.  It’s important to trust (but verify) information from your staff. 

Demonstrate Compassion

For a lot of people, compassion comes easy.  As a kid, I would have called them “bleeding hearts”.  Just give me the data and let’s get moving!  But as a young supervisor, I learned that compassion is one of the differences between being a manager and a leader. 

While I still prefer clear, logical data and a simple plan of action, I now also recognize that other people do not live in a Vulcan world.  Some people make decisions based solely on emotion (eek!).  Some people will only process data when they understand how a decision will impact other people. 

One tool that has helped me comprehend the differences among leadership and teamwork styles is the DiSC® Assessment.  DiSC shows that people have different core working styles leading to various speed of decision-making and varying levels of “compassion”.  Please contact me at [email protected] for additional information on DiSC and a free one-hour work style coaching session. 

Weather the Storm

Finally, leaders must be prepared to weather the storm.  The big puzzle is that we cannot predict when, where, or what storm will hit.  This means leaders, especially innovation leaders, must be flexible, adaptable, and patient.  Understanding the risks and benefits of our decisions allows us to move forward regardless of the circumstances. 

Leaders will face setbacks and failures.  In innovation and new product development (NPD), technologies will fail and potential customers won’t like the final design.  The difference between a leader and manager is how we deal with the failure – e.g. how we weather the storm. 

43693592 – dollar boat in the bad weather

Innovation leaders recognize the opportunity to learn while a manager will entrench to a risk-averse position.  An effective innovation leader will evaluate the data and decide whether to redesign the new product feature or to abandon the project.  A manager will selfishly worry about his bonus and reputation if there is another product failure.  A leader rallies the team after a setback, but a manager punishes his staff for the failure

What Does Leadership Mean?

What does leadership mean to you?  Do you think there is a difference between management and leadership?  How do you view characteristics of listening, compassion, and failure?

Each day, week, and year, I hope I add wisdom with passing time.  Today, instead of crying and feeling disappointed at a promotion, I would ask what could I learn and what outcomes did my boss expect?  Leadership is a learning experience. 

Read more about innovation leadership in The Innovation ANSWER Book and in the recently released PDMA Body of Knowledge (2nd ed.) where I had the privilege to lead an innovative and diverse team.

Learn More

  • Check out where I’m speaking next (click here).
  • Get your copy of The Innovation ANSWER Book available at Amazon (now available on Kindle).
  • Reference the new PDMA Body of Knowledge, available at Amazon.
  • Do you know your strategy?  Is it time to narrow your focus or expand to serve more customers?  Join me for the two-part Reset Your Strategy workshop on 18 and 20 August.  Register here – special discounts for the unemployed.

© Simple-PDH.com

A Division of Global NP Solutions, LLC  

Study.       Learn.       Earn.       Simple.

About Me

I am inspired by writing, teaching, and speaking at great professional events.  I tackle life with an infusion of rigor, zeal, and faith.   It brings me joy to help you build innovation leaders.  Teresa Jurgens-Kowal is an experienced innovation professional with a passion for lifelong learning with a PhD in Chemical Engineering and an MBA in Computer and Information Decision Making.  My credentials include PE (State of Louisiana), NPDP, PMP®, and CPEM, and I am a DiSC® certified facilitator.  Contact me at [email protected] or area code 281 + phone 787-3979 for more information on coaching for entrepreneurs and innovators.

Tools for Product Innovation

I love my hobbies.  Hobbies give us an escape from the stress of daily life and restore our inner peace.  They also allow us an opportunity to explore new ideas and to be creative.  My longtime followers, friends, and colleagues know that my favorite hobby is scrapbooking. 

One of my great pleasures that enriches my hobby is attending craft shows.  I am desperately hoping our newly tyrannical governments will once again allow such crowded, busy, and fun events!  At craft shows, I watch vendors demonstrate new tools and techniques.  I rub shoulders with other creative people sharing my hobby.  This encourages me to try new things and it expands my own creativity.  (Yes, there’s a reason I have glitter on my shoes!)

As product innovation professionals, we also need to expand our creativity and learn new things.  Perhaps more important, we must maintain our ability to generate new ideas and to examine our product portfolios with new perspectives.  And, just like the coolest news stamping platform or die cut machine for scrapbooking, we need to try new tools for creating, designing, and developing new products. 

Ideation Tools

The earliest stage of the product design and development process is ideation – kind of a fancy word for idea generation.  (Read more about the stages in the Product Design Process here.)  Formally, ideation is defined as a “creative process to generate and communicate ideas and concepts within the new product development (NPD) ecosystem”.  Let’s look at a few common ideation tools. 

SCAMPER

SCAMPER (read more here) is an acronym that uses verbs to stimulate new viewpoints toward a product solution.  You can apply the SCAMPER technique to an existing product, a new product, or a general customer problem.  The acronym is:

  • S = Substitute
  • C = Combine
  • A = Adapt
  • M = Modify
  • P = Put to Another Use
  • E = Eliminate
  • R = Reverse

Check out my Skillshare class here for more information and an example of apply SCAMPER.

Brainstorming and Brainwriting

Brainstorming is a traditional method of idea generation, often used in groups.  A problem statement is presented, and the group is encouraged to speak freely about potential solutions.  People are encouraged, but not required, to build from existing ideas and to even come up with ideas that defy science and logic (can anyone say lockdown or facemask?).

On the other hand, brainwriting (read more about this tool in Chapter 2 of The Innovation ANSWER Book) is a quieter activity, still utilizing free association and even wild ideas.  In brainwriting, each individual writes an idea on a sheet of paper and passes the paper to another member of the group.  Each person subsequently builds on the ideas they receive.  The activity is timed to further drive creativity.  After a few rounds, each idea originator shares the “best” idea. 

Mind Mapping

Mind mapping is also a free association method of generating ideas but is often used individually rather than in groups.  (Read more here.)  It is a graphical technique in which a core problem is presented and ideas or concepts are documented as words, phrases, or figures.  Clustering and grouping of ideas are conducted in the second stage.  Usually, each word or concept leads to additional “layers” of words and concepts so that the end result is reminiscent of a spiderweb. 

Customer-Focus

Several ideations techniques directly involve the customer.  This is highly beneficial for new product development since we intensify our focus on customer needs, thoughts, and perspectives without the bias of technology or pre-determined solutions. 

The ethnographic approaches to ideation are based on observing customers in their own environments where they face problems and use product solutions.  Complex challenges are better evaluated when an innovation team examines behaviors, beliefs, attitudes, and preferences at once. 

Another customer-focused ideation method is A Day in the Life.  This is essentially “shadowing” the customer to uncover routines, behaviors, and circumstances they face when using different products and services.  It also captures emotional aspects of product usage for further ideation and analysis. 

Another way to capture emotional inputs is through empathy analysis.  This is a way in which innovation teams connect with and understand customers deeply and share a direct emotional connection with them.  Empathy means understanding the customers problems from their point of view. 

From these customer-focused methods, the innovation design team may develop one or more personas.  A persona is a fictional character based on composite, objective, and direct observations of groups of users.  These personas become “typical” consumers for whom the innovation design team describes in terms of demographics, behaviors, attitudes, styles, and preferences.  Products and services are designed, therefore, to meet satisfy the needs of a specific persona.  This improves long-term product design and launch success. 

Ideation Tools for Design

Designing and developing new products and services is never easy but is always fun!  We use a variety of tools, techniques, and methodologies in the early stages of the product design process to expand creativity and to generate, develop, and communicate new ideas.  We use ideation for all activities and processes that broaden a set of solution alternatives for a consumer problem.  Ideation tools are also applied in risk management, troubleshooting for operations and in any situation where creativity is important in finding an ultimate solution. 

Just like we attend classes, conferences, and exhibits to expand creativity for our hobbies, we also must use similar opportunities to expand creativity for product development.  Ideation tools can be used individually or in combination to generate new alternatives for designing and developing products and services that solve customer challenges.  Many ideation tools use the power of a group to build on ideas and concepts but many of the tools are used independently to help an individual focus on troubleshooting solutions (e.g. SCAMPER, mind mapping, and empathy analysis). 

Learn More

Of course you must start with the vision – or strategy – before you jump into ideation.  I used to have hobbies of quilting, knitting, cross-stitching, and scrapbooking.  I had too many ideas and too little time.  Over the years, I have narrowed my focus and increased my talent in scrapbooking and card-making.  That’s a result of a strategic analysis.  With a strategy in place, new ideas are more cost-effective and lead to greater payoff. 

Do you know your strategy?  Is it time to refocus or narrow your focus?  Join me for the two-part Reset Your Strategy workshop on 18 and 20 August.  Register here – special discounts for the unemployed.

Reset Your Strategy

Reset Your Strategy is a four-hour workshop that will help you independently answer this question.  We will provide the theory, frameworks, and tools so that you will leave the workshop with a specific, actionable strategy to take you out of 2020.  Register here.  We have special discounts for anyone who is unemployed right now.  And, with all the depressing news on television and the radio, I promise to leave you laughing with our top-secret and mega-fun contest during the workshop (attendees only).

© Simple-PDH.com

A Division of Global NP Solutions, LLC  

Study.       Learn.       Earn.       Simple.

About Me

I am inspired by writing, teaching, and coaching.  I tackle life with an infusion of rigor, zeal, and faith.   It brings me joy to help you build innovation leaders.  Teresa Jurgens-Kowal is an experienced innovation professional with a passion for lifelong learning with a PhD in Chemical Engineering and an MBA in Computer and Information Decision Making.  My credentials include PE (State of Louisiana), NPDP, PMP®, and CPEM, and I am a DiSC® certified facilitator.  Contact me at [email protected] or area code 281 + phone 787-3979 for more information on coaching for entrepreneurs and innovators.

The Danger of Habits

Dictionary.com defines a habit as “an acquired behavior pattern regularly followed until it has become almost voluntary”.  Every night, before I go to bed, I brush and floss my teeth.  It is a habit.  I don’t have to make a decision whether or not to clean my teeth – it is an automatic behavior.  Even when I travel, I follow the same habit in a hotel or camping. 

I like to consider brushing my teeth every night as a “good” habit.  Unfortunately, habits might also reinforce “bad” behaviors.

Destructive Habits

Following a routine makes life easier because we do not have to think too much about various choices.  Since we can reliably predict the outcome of the repeated behavior, we reduce unplanned or negative risks.  Yet, living a life devoid of unexpected outcomes and minimizing the potential of all downside risk means we miss out on unanticipated pleasant events, too. 

My undergraduate Chemical Engineering (ChE) degree was in a relatively small class, actually a really small class.   There were eight (8) of us at the University of Idaho (Go Vandals!).   Almost all of our junior and senior level ChE courses were taught in the same, single classroom.  Without fail, at the start of a new semester or new school year, each of us chose a seat and then sat in the same place for every class.  We had created a habit.

While this routine was good – if I missed something the professor said, my friend Carmen had captured it in her notes – we may have missed out on other activities because of habit.   Not interacting with the other six students as closely as we did with each other left us without opportunities to teach others, to view course information from a different perspective, or to have our own mistakes corrected. 

Every habit has some degree of “good” and some degree of “bad” incorporated.  Successful innovators and leaders will seek to have the balance of “good” habits outweigh the “bad” habits.

Destructive habits are routine behaviors that are automatic but cause harm to us or to others.  At this point in history, I am particularly worried about the bad habits being forced on us by extreme government regulation.  Not being able to get a haircut during the government shutdown may force us to “creatively” learn a new style, but not being able to interact with our colleagues and religious communities is very, very dangerous over the long term. 

The habit of “social distancing” will build habits yielding unintended consequences for several generations.  We are already seeing negative impacts in which elderly people living in nursing homes are suffering from excess disease and reduced healing rates with forced “no contact” with family members and friends.  Loneliness was already a recognized health risk for the elderly, and government edicts are making this contagion even worse.  My heart breaks for old people dying without last rites and without someone they love holding their hand.

Loss of Creativity

I have spent the majority of my career working in R&D and helping others become more effective within their innovation ecosystem.  I have even written about the benefits of working in virtual teams (Chapter 6 in Leveraging Innovation Constraints) and I offer a training course for global teams on the Virtual Team Model.  

Using globally dispersed teams enhances innovation by providing local market information to the team.  However, without VTM, study after study shows that virtual teams underperform those that work face-to-face.  In stark contrast, the forced division in our professional and personal lives is a destructive habit that threatens our freedom.  A free and independent capitalist economy relies on personal and face-to-face interactions (not masked!).  All of us need personal touches to survive – a smile, a handshake, a hug. 

Moreover, at this time when there appears to be little or no real scientific data supporting societal breakdown, we are losing creativity.  If the government does not permit you to “look over someone’s shoulder,” how can you collaborate and build something new together?  How do we solve problems that require shared skills to build a tangible product?

Fight Your Bad Habits

While I am dedicated to brushing my teeth every night before going to bed, I struggle with the health recommendation to not eat snacks an hour before bedtime.  I have set up systems and memory triggers to fight this bad habit.  This is something I can change on my own time and on my own terms.

The bad habits that society is learning today, cause me to be truly and sincerely frightened.  My husband thought that a picture of chrysanthemums in our church bulletin was a “coronavirus” depiction.  A very bad habit!  I fear that American society will emerge permanently damaged and broken from the government lockdowns. 

People, especially youth, are being taught that distance is a social behavior.  I can’t think of two words that are more opposite!  As a society, we have lost civil rights and social freedoms after every national crisis, such as taking our shoes off as a symbol of airline security.  Today’s bad habits to forcibly eliminate interacting with other people will result in a loss of creativity and innovation.  America’s role as an inventor and economic superpower will be diminished (or decimated) if we do not fight the bad habits imposed upon us. 

What Can You Do?

Honestly, I’m not sure what to do since long-term predictions for economic stability are unavailable and those that are spread in the media are unbelievable.  Many of our cities are further crumbling under mob rule.   It’s difficult to predict what to do next.   I, personally, am changing my focus from where my business has been for 10 years.  I love to travel and interact with committed teams.  It is challenging to replace this interaction with computer screens and video conferences. 

On a societal level, we must have an urgent call to government leaders to open the economy sooner rather than later.  Our way of life, and America’s position as the superpower and financial backing of reserve currency, will die if governments continue to prevent natural human communication and collaboration. 

Reset Your Strategy

While I often feel depressed and beleaguered by the mass media news, I am actively trying to build new habits for myself and my business.  Like all innovation work, the place to start is strategy.  Where do you want to go?  What opportunities are available that give you enjoyment in your work and professional life?  What do your customers want?  How can you rally your team to support good habits?

Reset Your Strategy is a four-hour workshop that will help you independently answer this question.  We will provide the theory, frameworks, and tools so that you will leave the workshop with a specific, actionable strategy to take you out of 2020.  Register here.  We have special discounts for anyone who is unemployed right now.  And, with all the depressing news on television and the radio, I promise to leave you laughing with our top-secret and mega-fun contest during the workshop (attendees only).

© Simple-PDH.com

A Division of Global NP Solutions, LLC  

Study.       Learn.       Earn.       Simple.

About Me

I am inspired by writing, teaching, and coaching.  I tackle life with an infusion of rigor, zeal, and faith.   It brings me joy to help you build innovation leaders.  Teresa Jurgens-Kowal is an experienced innovation professional with a passion for lifelong learning with a PhD in Chemical Engineering and an MBA in Computer and Information Decision Making.  My credentials include PE (State of Louisiana), NPDP, PMP®, and CPEM, and I am a DiSC® certified facilitator.  Contact me at [email protected] or area code 281 + phone 787-3979 for more information on coaching for entrepreneurs and innovators.

Have You Missed the Digital Transformation?

I never cease to be amazed at the number of buzzwords that enter our vocabulary.  Good ideas become nauseating when entrenched in bad phrases.  Of course, the idea of keeping sick people away from old people or those with weakened immune systems is good, yet the phrase “social distancing” is oxymoronic and getting very, very old very, very quickly. 

Digital transformation is another phrase that shot off like a firework but really doesn’t have a lot of teeth in its meaning.  The idea of digital transformation is that all businesses should read recognize technology is a constant and growing component of products and services.  Yet a whole lexicon of “digital” words has sprung up to describe a simple evolution in product innovation. 

Digital Innovation

One new phrase is “digital innovation.”  It means applying digital technology to increase operational efficiency, drive customer engagement, or to develop innovation products and services.  Frankly, this is a very broad definition and can hearken back to the good – but simple – idea that computers can do basic calculations faster than humans.  We have been using digital technology throughout my entire life to improve operations.  For example, petrochemical plants are controlled via a DCS (digital control systems) that monitors temperature, pressure, flow rates, and valve positions.  This is not a “new” concept.

What is somewhat different in the past few decades is evolution of a “digital strategy”.  Instead of tacking on an application or programming for a product after it is designed and developed, innovative companies today recognize the importance of integrating technology throughout the development stages. 

Digital Integration

Technology generally allows us to move product innovation at a faster pace.  Using social media and 3D printing to generate prototypes, new product development (NPD) practitioners garner rapid customer feedback.  We conduct many more inexpensive trials before freezing the design. 

Further, when software is fully integrated into a product’s functionality, features can be changed and adapted on an ongoing basis.  We can customize many of the features and functions of products and services for each individual user.  Digital transformation thereby enhances the relationship between the customer and the producer. 

Advance Your Digital Transformation

Did you miss the digital transformation?  Don’t feel bad if you missed the ascension and collapse of a buzzword.  It’s likely your company did not miss opportunities to integrate technology into product design or customer experience.  Using technology to analyze large data sets and to cull insights from qualitative measures is commonplace. 

If your organization is not integrating applications, software, and IT into product and service development, you do need a digital strategy.  The digital strategy also identifies how competitors are using technology to gain market share.  If you are falling short, you may need to consider simple steps such as how to reshape your organization using apps or text messages to gain customer feedback. 

Don’t Miss Another Opportunity

Language, phrases, and buzzwords don’t tell the whole story.  You need to look at your basic processes and systems.  Product innovation starts with proven best practices, customized to ensure competitive advantage.  If you are trying to integrate digital strategy or trying to figure out what to do emerging from the corona-panic, you must join our online Reset Your Strategy workshop.  Click here to pre-register (special rates for unemployed).  Contact me at [email protected] or area code (281) phone 787-3979 for more information.

© Simple-PDH.com

A Division of Global NP Solutions, LLC  

Study.       Learn.       Earn.       Simple.

About Me

I am inspired by writing, teaching, and coaching.  I tackle life with an infusion of rigor, zeal, and faith.   It brings me joy to help you build innovation leaders.  Teresa Jurgens-Kowal is an experienced innovation professional with a passion for lifelong learning with a PhD in Chemical Engineering and an MBA in Computer and Information Decision Making.  My credentials include PE (State of Louisiana), NPDP, PMP®, and CPEM, and I am a DiSC® certified facilitator.  Contact me at [email protected] or area code 281 + phone 787-3979 for more information on coaching for entrepreneurs and innovators.

Do You Have a Capability Strategy?

Everyone working in innovation has more ideas in time.  Every organization has more projects to work than resources.  And all of us truly believe in the purpose and benefits of the ideas and projects we create. 

Yet, we also have limited resources.  There are only 24 hours in a day, seven days in a week.  We have limited budgets and talent to accomplish our innovation project vision.  It is an age-old problem. 

Alongside your business and innovation strategies, it is important to implement a capability strategy.  The capability strategy is an offshoot of product portfolio management, allowing an organization to plan and execute projects with higher productivity and efficiency.  You will learn to schedule and balance resources and talent to ensure effective product innovation. 

Capabilities

In the resource-view of the firm, capabilities and competencies represent the talent and special skills of an organization.  For example, the capability to run ultra-high vacuum electron scanning instruments requires not only specialized equipment but competent and trained users.  Similarly, a successful restaurant requires specialty software to convey orders to the kitchen and well-trained staff that are attentive to diners’ needs. 

Any special equipment or skills of your staff that differentiate your organization are key capabilities.  These are listed as strengths on a SWOT analysis (read about Using SWOT to Reset your Innovation Strategy here).  You also might work diligently to train and acquire staff with unique competencies.  This includes giving employees both formal and informal learning opportunities, on-the-job training, and freedom for idea exploration. 

The Capability Plan

In product portfolio management (PPM), senior management prioritizes a list of innovation projects to maximize value.  Optimizing resources (time, money, equipment, and people) is a key activity of PPM.  In prioritizing active projects (those assigned budgets and resources), the portfolio managers must assess the capability strategy.  Where there are competency gaps, provide training or hire new talent with appropriate skills.  Where there are deep skills without immediate project utility, re-train or release resources for other work. 

“The Toy Box” (an imaginary but representative company) has five innovation projects on the books.  One project is nearing completion and will be launched soon.  The others are at varying stages of completion, from concept development to final prototype testing. 

Because The Toy Box  has only a handful of market researchers assigned to innovation projects, they note a gap in the “motors” and “boats” projects.  Each project needs the attention of three full-time equivalent (FTE) market researchers to conduct prototype testing during the next three months.  The Toy Box employs only four market researchers full-time.  This results in a gap of two FTEs for market research with a crisis level gap in the next three months.

Capability Strategy Choices

In this case, The Toy Box has several choices to balance their project needs with required capacity, as follows.

  • Delay one or both projects
  • Cancel one or both projects
  • Hire more (temporary or permanent) market researchers
  • Re-train other staff to learn market research skills
  • Advance these projects without market research
  • Abandon these projects and work on ones that match availability of market research FTEs

Each of these choices is a strategic decision, since the outcomes impact the ability of the organization to execute projects, generate revenues, and satisfy customers.  Each choice also has both short-term and long-run cost impacts.  Thus, capacity planning is a senior management activity and is a strategic (not operational or tactical) decision. 

Your Capability Strategy

Learning and growth are foundations of successful innovation.  In your strategy, do you account for training, hiring, and development of human resources?  Do you balance talent against project needs in the product portfolio?  Do you have a specific and actionable plan to close capability gaps for innovation?

Learn More

If you answered “no” to any of these questions, you need to join our Reset Your Strategy Workshop.  You can pre-register here and we’ll send you the full details soon.  Contact me at [email protected] or area code (281) phone 787-3979 for more information.

Additional Resources

About Me

I am inspired by writing, teaching, and coaching.  I tackle life with an infusion of rigor, zeal, and faith.   It brings me joy to help you build innovation leaders.  Teresa Jurgens-Kowal is an experienced innovation professional with a passion for lifelong learning with a PhD in Chemical Engineering and an MBA in Computer and Information Decision Making.  My credentials include PE (State of Louisiana), NPDP, PMP®, and CPEM, and I am a DiSC® certified facilitator.  Contact me at [email protected] or area code 281 + phone 787-3979 for more information on coaching for entrepreneurs and innovators.

Using PESTLE in a Recovery Strategy

Watch the short video (<1 minute) and then read on for all the details!

While our country has never before shuttered the economy, we have also never been faced with such challenges in innovation in business.  “Experts” predict V-shaped and U-s0haped recoveries.  Personally, the prediction of a “swoosh”-shaped recovery seems more reasonable; and it gives me hope for fan-based sports in its terminology, too. 

Regardless of size or scope of your business, the so-called “reopening” allows you a chance to reset your strategy.  In an earlier post, we discussed using SWOT (strengths, weaknesses, opportunities, and threats) as a strategic assessment of your internal capabilities.  Opportunities and threats are external drivers in the model, yet how do you ascertain competitor actions when the shape of the business landscape has shifted irreversibly?

This is where another strategy planning tool can be of essence in resetting your business and innovation strategies.  PESTLE is a technique that forces an organization to examine trends outside their control, narrowing the possible scenarios for future conditions.  The acronym PESTLE represents political, economic, social, technological, legal, and environmental situations and trends. 

Political

In the US, the corona-panic has illuminated some strong political trends that are likely to continue unabated into the future.  First, increased socialism and government control is likely.  American citizens have demonstrated they will give up fundamental rights (e.g. the right to assembly and the right to religious freedom) when threatened with an unspecified health fear.  It is unwise to trust that all elected and appointed government officials will treat their power with fairness and justice. 

Second, policy makers have realized that using the word “science” in any conversation is effective to convince the electorate to succumb any personal responsibility or liberty.  Many US citizens have only a limited math or science education (and, unfortunately, we continue to fall behind most other first world nations), so telling someone it is “science” without providing factual data is proof enough for most. 

How do these political trends impact your business and innovation strategies?  Are you positioned to take advantage of growing government bureaucracies?  Will you be nimble enough to navigate a flurry and inconsistent network of illogical rules and regulations again?

Economic

There are not enough words in my vocabulary to describe the economic damage of the corona-panic.  As we plan new business and innovation strategies, one key economic trend stands out.  Debt.  Before the corona-panic, the US economy was already headed toward an unsustainable debt-to-GDP ratio.  With massive stimulus bills and shrinking output, the debt-to-GDP ratio is at astronomical levels, never seen before – even in times of war. 

With a fiat currency (meaning printed money and not based on bullion value), increased debt means inflation and higher taxes.  How can you incorporate these threats into your business and innovation strategies going forward?  What does it mean for product pricing strategies?

Social

Social trends are yet to be determined coming out of the corona-panic.  There are some people who had readily believe the disastrously wrong models from government agencies and consequently believe any social interaction will result in immediate death.  Many of us have looked at the data and will continue to want to live our lives with normal human contact:  going to the movies, concerts, and trade shows. 

As an individual, I dread the trend away from face-to-face events.  It is nearly impossible to meet new people and to connect in a virtual world.  The coffee pot conversations, lunch discussions, and happy hour connections at events allow us to interact as human beings were designed to do.  No one should be expected to sit in front of a computer screen for hours (or days) on end and expect to build an important relationship. 

Yet, as you reset your business and innovation strategies, virtual meetings are, at least, a short-term reality.  How can you involve customers in your product innovation work in a virtual world?  How will you plan for qualitative feedback when you can’t see your potential customers?  What does “moving online” mean for your business?

Technology

With the advent of doing everything virtually and without contact, your business and innovation strategies must incorporate technological changes.  We are sure to see a slew of new technical tools (other than zoom, I hope!) to run our business in a digital, nonhuman world.  There are also going to be more frequent and more numerous cyberattacks.  Are you building IT strength into your business and innovation strategies?  Digital transformation trends will continue to dominate physical product development.  Are you linking “digital” applications with all hardware development?

Legal

There is no doubt that legal implications will continue to grow as the world emerges from the corona-panic.  HR experts will tell you that if your employees are afraid of getting sick at work, you will need to make a legal disability accommodation and let them work from home.  How will you monitor project work and schedules when your staff does not meet together?

Further, if one of your team members coughs or sneezes, how do you treat that?  If another team member catches a cold, will she sue you?  I believe there will be a whole host of new illnesses arising from the overuse of cleaning products.  Government “experts” are encouraging nearly continuous use of hand sanitizer, yet I am reminded that it is the only solution I use to effectively remove bicycle grease.  Once I spilled a few drops of hand sanitizer on my desk and it removed the varnish.  Are you prepared for a trend of chronic diseases from chemical usage in a workplace?  What other legal implications threaten your business or the introduction of a new product?

Environmental

As a result of the corona-panic, I believe there are favorable environmental trends to influence our business and innovation strategies.  The tremendous hit that oil and gas took during the panic creates opportunities for petrochemical manufacturing.  Distribution costs should decline as diesel and jet fuel are less expensive.  Peoples’ fears regarding short-term environmental destruction have been replaced with an immediate health and safety fear.  While both fears are completely irrational (and not based on existing data but so-called “science”), environmental restrictions will be loosened in many areas so business can get going again.  For example, allowing a truck driver to haul two trailers in tandem versus a single trailer might benefit how your products get to market. 

Use PESTLE to Design a Recovery Strategy

Every business, large or small, must deeply probe its innovation strategy today.  Understanding and studying external opportunities and threats can help you formulate an effective recovery strategy.  Use PESTLE to identify trends impacting innovation and business conditions during “reopening”. 

What political trends are happening locally or nationally to threaten your business?  Will the economic conditions (especially increasing debt, inflation, and taxes) cause a change in your business structure?  Which societal trends will allow you to grow and which fears of society might threaten your innovation programs?

Examine technology advances and incorporate enhanced cyber security into your strategies.  Be prepared for a slew of legal actions, especially as elections are anticipated and the way we vote in a democracy is changed away from secure and known trends.  How will employee behaviors influence your strategies to prepare for health and safety lawsuits?  Finally, are there any environmental trends that can open opportunities or provide a benefit to your innovation strategy?

Learn More about Strategy

Strategy lays the groundwork for all innovation work.  If you don’t know what your strategy is, you cannot succeed.  Contact me at area code 281, phone 787-3979 for a complimentary 30-minute innovation coaching session.  We will discuss how you can apply SWOT and PESTLE in your own unique business situation to immediately see results. 

Other Resources

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About Me

I am inspired by writing, teaching, and coaching.  I tackle life with an infusion of rigor, zeal, and faith.   It brings me joy to help you build innovation leaders.  Teresa Jurgens-Kowal is an experienced innovation professional with a passion for lifelong learning with a PhD in Chemical Engineering and an MBA in Computer and Information Decision Making.  My credentials include PE (State of Louisiana), NPDP, PMP®, and CPEM, and I am a DiSC® certified facilitator.  Contact me at [email protected] or area code 281 + phone 787-3979 for more information on coaching for entrepreneurs and innovators.

Impacting Innovation

Successful innovation requires keeping pace with industry changes and the eve- changing demands of a fractured customer base.  Companies that repetitively create, design, and develop profitable new products understand consumer behaviors and enable scientific advances.  These firms capitalize on both internal and external systems to generate success in the marketplace. 

Three factors impact innovation and can determine repeatable market successes.  These are organization, technology, and culture.  Let’s take a look at each element in turn. 

Organization

At the highest level, an organization’s strategy drives innovation.  A firm’s strategy reflects its mission (what is the purpose of the business), its vision (what will the future look like), and its values (what traits make us unique to accomplish our mission).  An innovation strategy also informs internal and external customers of senior management’s risk tolerance.  An aggressive innovation program indicates higher risk tolerance than an R&D portfolio fixed on incremental improvements and sustaining innovations. 

Further, an organization’s strategy will determine systems and structures necessary for a corporation to conduct R&D.  Traditionally, firms have followed a Stage-Gate™ approach to new product development (NPD) which allows larger risk (and larger investment) after smaller experimental phases are proven in the product design process.  This is a balanced risk approach if the staged and gated system is implemented with cross-functional NPD teams. 

Today, many firms are embracing Agile methodologies in which the focus is directed toward people ‑ customers and innovation teams ‑ over products and features.  Time-to-market is faster and end-users test prototypes early in the developmental process to reduce waste.  Planning documentation and contract negotiations are minimized, while customer interactions are optimized. 

Technology

Almost all products today include a technical interface, whether it is a website or a smartphone app.  Technology also plays a role in the development process itself.  Most firms use some software tools to manage new product portfolios and/or the individual NPD projects.  In addition, software tools and apps enhance communication for dispersed teams. 

For example, product portfolio management (PPM) is a broad view of all new product development projects, including those being actively worked and those in the pipeline.  There are literally dozens of PPM software packages available for organizations to utilize in aiding their decision-making.  PPM tools collate individual project data to help senior managers view information and to make strategic innovation decisions.  Most PPM tools translate gobs of data into simple charts, displaying value added project information in an easy-to-consume manner. 

Culture

Culture is always the most difficult element to describe, and to change, to drive successful innovation.  Many senior managers will point to organizational systems and structures or to technology when NPD metrics are not at the expected level.  However, it is rare that only a technical or business solution alone can solve an ailing innovation program. 

Culture sits at the heart of how things get done in an organization.  Regardless of how aggressively an innovation statement is worded, if senior management acts risk-averse, R&D will be limited to incremental improvements and simple feature additions.  Culture permeates team behaviors and individual work styles. 

Agile work environments stress people interactions over documentation.  Talking to customers is valued over contract negotiations with suppliers.  Failures are viewed as a learning rather than punishment for falling short of a goal.  Innovation teams are trusted to test prototypes with customers and to take responsibility for the whole product development. 

Impacting Innovation

Three elements impact innovation more than materials, engineering, or industry.  These are the organization, technology, and culture.  Factors like systems, structures, and strategies directly influence how innovation teams work internally and externally.  Selected decision-making tools can aid or abet speed of innovation by increasing data and information flow or by creating roadblocks between senior management and team members. 

Organizations should start with an examination of their overall strategy when seeking to enhance innovation.  Strategies reflect the degree to which the firm accepts risks in NPD.  PPM tools (technology) will translate individual project data so decision makers can actively assess innovation highest value innovation projects to pursue.  Strategies and technologies are often a mirror to the organization’s culture.  Culture is unspoken but determines how work gets done, rewards learning, and supports successful integration of NPD in an organization. 

Learn More

If your organization is struggling with innovation, especially in these challenging times, please contact me for a complimentary 30-minute innovation coaching session.  With over 20 years of experience and innovation clients across all industry groups, I can help you get innovation on track for success!  Contact me at area code 281, phone 787-3979 or email to [email protected]

About Me

I am inspired by writing, teaching, and coaching.  I tackle life with an infusion of rigor, zeal, and faith.  It brings me joy to help you build innovation leaders.  Teresa Jurgens-Kowal is an experienced professional with a passion for lifelong learning with a PhD in Chemical Engineering and an MBA in Computer and Information Decision Making.  My credentials include PE (State of Louisiana), NPDP, PMP®, and CPEM, and I am a DiSC® certified facilitator.  Contact me at [email protected] or area code 281 + phone 280-8717 for more information on coaching for entrepreneurs and innovators.

© Simple-PDH.com

A Division of Global NP Solutions, LLC  

Study.   Learn.   Earn.   Simple.

What to Do When Waiting

When I was in grad school at the University of Washington in Seattle, I did not own a car.  I took the bus to campus and home to my apartment in the Northgate mall area.  While I was on the bus, I would read journal articles related to my research project.  It was great to have 20 minutes of uninterrupted time to concentrate on science. 

Recently, my husband and I took a two-week vacation to Scotland.  We used public transit and I spent a lot of time on the train recording our stories in my travel journal.  A lot of trains and buses have Wi-Fi and I noticed a lot of people texting or looking at Facebook on their phones.  Few people were reading or chatting.

Read on or watch the 40-second video summary.

Waiting Time

We spend a lot of time in our lives waiting.  Whether we are on the bus or train commuting or we are in a queue at the store, we often face idle time.  Most of us today grab our phones and surf the internet or text friends.  We fill the waiting time with non-value adding activities.

Now, I’m going to ask you to do an experiment.  Close your eyes and think back 10 years.  A decade ago, only a few of us had smartphones and there really was not Facebook.  What did you do when you were waiting? 

Maybe you chatted with the person in line ahead of you and learned the news of your community.  Maybe you let your mind wander and you came up with creative ideas.  Or maybe you spent that time planning strategic actions for your job or business.  Maybe the waiting time just gave you a chance to catch your breath and relax for a few minutes out of a busy day.

Creativity in Waiting

When you have little to occupy your mind and your thoughts wander, creativity sparks.  The subconscious mind is constantly working on our problems and challenges, and it is when we relax that those creative ideas can germinate.  That’s one reason why people claim to get good ideas in the shower.  So far, there is no technology distracting us in the bathroom – yet! 

So, I’ll ask you to try another experiment.  The next time you are waiting – on a bus or in a queue – resist your phone.  Just breathe and observe what’s around you.  Watch people and their patterns of behavior.  Consider the simple solutions that surround you while you’re waiting:  an automatic bus ticket machine, the cash drawer opening and locking, and candy bars stacked near the checkout at the grocery store.  Is there a simple, creative solution for your challenge?  Can you borrow one of these ideas? 

Strategic Waiting

Sometimes we need to concentrate on a specific problem.  Waiting time is another opportunity to generate strategic solutions.  Sitting at your computer, you’ve got files and emails calling for your attention.  But when you’re waiting, you literally have free time with no distractions or interruptions. 

While you are next waiting, resist your phone and consider your biggest strategic problem.  Now, challenge yourself to come up with three ideas to implement that would solve that problem.  While you are waiting, envision exactly how you will execute each plan, who you will need to help you, and what the end result looks like.  If you need to research something, plan to do it later.  You must resist your phone to brainstorm a strategic plan.

How to Use Waiting Time

All of us have waiting time whether it is during our commute or in queues at stores.  Instead of filling the time with quick and easy gossip on Facebook, use your time to find creative and strategic solutions to innovation challenges.  Resist your phone and try to generate at least three new ideas and three action plans for implementation.  You’ll be surprised with how much you can accomplish in 10 minutes! 

Learn About Design Thinking

The techniques of generating three creative ideas and three specific strategic plans are tools from Design Thinking.  Design thinking is a creative and collaborative problem-solving approach for identifying customer needs and designing solutions from an empathetic viewpoint.  You can apply Design Thinking tools to new product development and innovation and to your own life or business challenges.  Sign up here for a free, 60 minute Q&A webinar (21 Oct 2019 at noon CDT) on Life Design.  I’ll be sharing more tools from Design Thinking at the Institute of Management Consultants (IMC) conference on 6 October in Dallas, TX.  Stop by and say “hi”.  I’d love to hear how you are generating creative and strategic solutions during your waiting times!

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Innovation Ecosystem

Innovation is hard work.  While we often imagine a really clever guy in his garage creating the next big thing, reality teaches us that discipline is a far more important trait to successful innovation than is imagination.  Discipline supports creativity and frames the context of an innovation ecosystem.

Key Components of Innovation

Innovation certainly requires discipline and creativity – as well as flexibility – for new product development (NPD) team members and leaders.  An innovation ecosystem requires pertinent processes, tools, and metrics to lead to repeatable success.  Some of these elements are:

  • A well-considered innovation strategy,
  • Product portfolio management and knowledge management,
  • An NPD process, and
  • Ongoing team and leadership training.

Let’s take a look at each element in turn.

Innovation Strategy

Every company, large or small, has a strategy.  Usually, the strategy is documented and reviewed annually.  A corporate strategy describes why the business exists and how it expects to accomplish its mission.  An innovation strategy is a subset of the organizational mission and specifically describes the details of the new product development programs.

For instance, I worked with a company that wanted to be viewed as “Number One” in an organic food category.  Their vision included customers choosing their brand over all other competitors because the food was healthy.  The innovation strategy, therefore, built on the vision of delivering healthy products to the marketplace, yet also had to strike a balance between customer tastes, product features, and the labels of “healthy” and “organic”.

Thus, the innovation strategy breaks down the corporate strategy into specific goals and objectives for a new product development program.  Healthy foods must be tasty and have textures and flavors that consumers enjoy.  The innovation strategy includes, then, a focus on customer needs and definitions (what does “healthy” really mean?) and on technology development (can we manufacture a low-fat, high fiber product?).

Product Portfolio Management (PPM)

Product portfolio management (PPM) is the system to identify in which projects to invest.  Knowledge management (KM) captures technical, product, and market data for future use.  Both PPM and KM are critical to long-term success of an innovation ecosystem.  Yet, historically, both PPM and KM fail in implementation.

PDMA studies show that only about half of companies have a well-functioning PPM process.  This is a disappointing statistic since PPM is how we make decisions regarding which NPD projects to advance and which to halt.  PPM provides an evaluation and comparison of all innovation projects based on competitive advantage, market attractiveness, technical feasibility, and profit potential.  An effective innovation ecosystem uses PPM to guide data-driven project decisions.

Likewise, an effective knowledge management system captures the tacit knowledge of customers, subject matter experts, and key stakeholders and translates these disparate bits of information into explicit knowledge.  It is inherently difficult to ask a customer what features they want in a new product, but KM allows us to save and share customer challenges, desires, and feelings about product usage.  KM goes hand-in-hand with PPM by supporting clear definitions of customer needs.

NPD Process

Established NPD processes are also critical to an organization’s long-term success with repeatable innovation.  An NPD process needs to be formal and structured with key steps, roles, and responsibilities determined in advance for all innovation projects.  However, the specific NPD process deployed by a company should fit its culture, scale of operations, and degree of innovativeness sought.  The standard NPD processes that my clients use include traditional staged-and-gated processes, Scrum, and hybrid processes.

A traditional staged-and-gated NPD process follows a linear pathway through a project.  Designed by Robert G. Cooper in the late 20th century, the NPD team will set project requirements early in the process and will build the product according to this pre-determined feature set.  Cooper recommends – as do I – to continually test the product assumptions with a wide range of users throughout each stage of the NPD process. 

A Scrum process follows the Agile philosophy by adapting the work in a short sprint (e.g. two to four weeks) to the highest priority feature or feature set.  Customer involvement is intimate in a Scrum NPD process as the customer both sets sprint priorities and approves the incremental product output from each sprint. 

Finally, hybrid NPD processes are becoming the norm in innovation as neither a traditional staged-and-gated process nor an agile/Scrum approach is ideal.  Hybrid NPD processes support the innovation ecosystem through continuous communication with the customer while utilizing a formal requirements design and development methodology.  Keep in mind that no NPD process is perfect, and an NPD process should be updated regularly to reflect organizational, market, and technology needs.

Team and Leadership Training

A successful ecosystem relies on a clear strategy and established practices and procedures (PPM, KM, and NPD processes).  To make the cogs turn, however, people must be motivated and inspired to do creative work while at the same time understanding organizational boundaries and limits.  Team and leadership training is the last, but perhaps most critical piece, of the innovation ecosystem puzzle.

NPD teams and innovation leaders benefit from New Product Development Professional (NPDP) and Best Practice Training.  In these public or customized workshops, team members safely learn how to clearly identify the innovation strategy, implement PPM and KM, and streamline the NPD process.  Moreover, teams learn the tools in market research to understand, test, and validate customer needs with concept tests, prototypes, and post-launch reviews.

Likewise, teams need to develop cross-functional and conflict management skills.  These are learned and practiced through Situational Team Leadershipand Virtual Team Training.  Virtual teams offer a huge advantage for innovators to tap into local market information while designing a product for global reach.

Finally, leaders need to approach innovation with flexibility, adaptability, and patience.  Leaders should be trained in situational leadership, virtual team management, and change management in addition to understanding the overall NPDP best practices.  Innovation leaders also need ongoing support since other the NPD function is often isolated from other business functions and requires special skills and business frameworks. 

I recommend an ongoing sharing and exchange for innovation leaders with a trusted group of like-minded product management professionals.  Having your own personal advisory board facilitated by an innovation expert can help you advance and accelerate your innovation ecosystem.  Check out the Innovation Master Mind as a way to rapidly improve your innovation programs through industry collaboration and problem-solving.  (Register here for a FREE pilot session of the Innovation Master Mind on 23 January 2019.) 

A Successful Innovation Ecosystem

I am constantly reminded of the delicate balance in nature’s ecosystem.  Rain, sunshine, and fertilizer allow plants to grow and thrive.  An innovation ecosystem requires feeding and nourishment to also grow and thrive.  Key elements of an innovation ecosystem are the innovation strategy, product portfolio and knowledge management, an established NPD process, and team and leadership skills development. 

Innovation is fun and exciting!  When we apply and formalize these elements in an innovation ecosystem, we realize both personal and professional success while delighting our customers. 

Learn More

Feel free to contact me more information on customized NPDP training.  I can be reached at [email protected] or 281-280-8717.  I love helping individuals, teams, and organizations achieve their highest innovation goals!

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A Division of Global NP Solutions, LLC  

Study.  Learn.  Earn.  Simple.