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Volume 6, Issue 2- February 2, 2005
GGI RapidNews is published approximately once a
month.
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In This Issue
2004 METRICS SURVEY SELECTED RESULTS
MANAGEMENT PRODUCTIVITY - 2005 R&D
Funding Forecast
2004 METRICS SURVEY - 2004 Survey Results
Now Available
BOOK REVIEW - Measuring the Value of
Partnering
FEATURED iSTORE PRODUCT - PPRD Coursebook
NEW iSTORE PRODUCTS - New Seminar Coursebook
NEW WEB CONTENT - Updated Calendar
CONFERENCES OF INTEREST - Marcus Evans'
Collaborative Product Development
UPCOMING PUBLIC SEMINARS - Measuring
Product Development
WEBINARS OF INTEREST - Sopheon's Winning
Practices for Product Development, IDe's Next Generation Product
Development
MANAGEMENT PRODUCTIVITY - APQC R&D
Productivity Benchmarking Study
TELEVISION EVENTS - Alexander Haig's
World Business Review
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2004 METRICS SURVEY SELECTED RESULTS
GGI's 2004 Product Development Metrics Survey has just been
published. The 2004 Survey focused on the product selection
process and tools, the IP management process and tools, and
metrics. Each month over five months, GGI will share with
RapidNews readers selected results from each section of the
survey. This month we present selected results from the third
section, "Intellectual Property Management Process."
- The 2.5-Step, 2-Step, 1-Step, and No-Step processes were
used about equally for making decisions about managing IP.
- IP decisions were made by just one person in 20% of the
respondent companies.
- IP was registered "frequently" or "almost
always" at some point in the product lifecycle by 75%
of respondents.
- To support IP management, 47% of firms have internal legal
departments aided by external counsel.
Next month, look for results on the fourth section, "Intellectual
Property Management Tools."
MANAGEMENT PRODUCTIVITY
2005 R&D Funding Forecast
Total R&D funding in the United States is expected to
increase 3.6 percent to $312 billion in 2005, according to
the recently released Battelle-R&D magazine annual funding
forecast ["Continued Defense Spending Offsets Flat Industrial
R&D" R&D Magazine, Volume 47 Number 1,
January 2005]. The increase is driven primarily by a 5.9 percent
increase in federal government expenditures to $98 billion.
Industrial R&D spending, the largest segment of the total,
will increase by only about 2 percent to $191 billion in 2005,
while academic and other non-profit sectors will increase
approximately 8.6 percent to $23 billion in 2005.
Private industry continues its flat R&D funding trend
from the past 4 years, due to the mild recession. Outsourcing
of R&D has emerged as a significant factor, especially
major expansion into independent R&D institutions in China
and India. The growing federal budget deficit is expected
to limit federal R&D funding in coming years, which will
seriously strain overall R&D investments as industry outsources
R&D to offshore facilities.
The report highlighted a number of opportunity areas for
R&D, such as materials technologies, medical diagnostic
imaging, information mining and assessment, environmental
management, energy production and distribution, medical technology,
and anti-terrorism technologies.
The complete R&D Magazine article is available at http://www.rdmag.com.
2004 BIENNIAL METRICS SURVEY
2004 Product Development Metrics Survey - Product Selection,
IP Management, and Top Corporate Metrics: The Summary
and Highlights Reports for GGI's 2004 Biennial Product Development
Metrics Survey have just been published and are now available
for purchase by the public through GGI's iStore. The composite
results across the entire survey population of this year's
survey were first presented to the public by Brad Goldense
at Management Roundtable's 9th Annual Metrics Conference on
September 30, 2004 in Chicago. These reports are completely
based on primary research performed by GGI researchers. The
research includes 202 respondent companies. There was a 5%
response rate.
Why would these reports be of value to you? The first two
sections cover the product selection process and tools used.
The companies that add rigor to their process make better
decisions, leading ultimately to more successful products.
The statistically accurate survey illustrates the current
industry practice for selecting products, the degree of usage
of 21 different tools, and the believed ability of these tools
to generate innovation and/or generate registerable IP. The
third and fourth sections of the survey are groundbreaking
research in the processes and tools companies use to manage
intellectual property. It is believed that the importance
of IP in the next 2 decades will go from 10% of a company's
valuation to perhaps as much as 90% of a company's valuation
on Wall Street. This report, to our knowledge, is the first
definitive survey of the processes, tools, and systems used
for IP. The final section of the report specifically lists
the metrics that are used by the top of R&D organizations
in industry to measure the overall performance of R&D
in pareto order. If you are trying to find the few metrics
that your company should choose to measure overall R&D
performance, you cannot be without this last section.
McKinsey & Company, Texas Instruments, Rockwell, Kimberly
Clark, and Datacard are representative of companies that purchase
market research from GGI.
The 2004 Survey focused on the following 5 areas of product
selection and IP management:
- Product Selection Process
- Product Selection Tools
- IP Management Process
- IP Management Tools
- Top Corporate Metrics Used in Industry RD&E
The 3 versions of the survey results reports that we offer
for sale to the public are
1. 2004 SURVEY HIGHLIGHTS: A text-only report (75 pages),
including the full text of all the results and analysis of
the survey population analyzed as a whole,
2. 2004 SURVEY SUMMARY: A report of composite results, where
the survey respondents are analyzed as a whole (149 pages,
including a full set of graphics), and
3. 2004 SURVEY RESULTS: The most detailed report, complete
with the composite results and "special cuts," where
the survey population is segmented and analyzed in the following
groups: Public vs. Private, Smaller vs. Larger, Process vs.
Repetitive/Discrete vs. Job Shop, Higher Technology vs. Lower
Technology, and More vs. Fewer Employees (TBD pages).
Please note that the 3rd report, Survey Results, is expected
to be available in early 2005.
For the first time, we are now offering individual sections
of the research report, as well as combined product selection
sections (process and tools) and combined IP management sections
(process and tools). You can now purchase just a section of
the whole report to meet your specific needs. A comparison
of the product selection process and the IP management process
is included only in the full 2004 Survey Summary report.
We have improved the quality and amount of descriptive information
we provide for the public. The links below will be quite useful
in understanding what was researched and why.
A brochure describing the survey in more detail as well as
the reports available can be directly downloaded here: http://www.goldensegroupinc.com/04ResBro.pdf
A description of the survey including demographics, report
table of contents and selected results can be directly downloaded
here: http://www.goldensegroupinc.com/biennial/surveydesc/2004SurveyDescription.pdf
A detailed description of each section of the research, including
the focus of the research can be found here: http://www.goldensegroupinc.com/2004ResearchDescription.pdf
These reports are available in the Market Research section
of GGI's iStore (http://www.goldensegroupinc.com/iStore/store.html).
We have just restructured the delivery and pricing of all
research offerings, including our latest 2004 metrics survey
reports. In addition to the currently available hard copy
versions, you can now purchase downloadable electronic reports
for all of our metrics surveys. We are able to offer a great
value by making this research available to your entire corporation
and even to your suppliers, based on your choice of licenses.
These electronic reports are in full color and are readily
sharable within your organization. This new electronic option
improves your firm's access to GGI's powerful R&D research,
making the reports even more usable and helpful in your R&D
process. Check the Product Development Metrics Research section
of GGI's Wisdom iStore for more details: http://www.goldensegroupinc.com/cgi/catalog.cgi?display_p355
Each survey participant received a complimentary copy of
the Summary Report. All participants should have already received
an email letter regarding the complimentary copy of the Summary
Report. Any survey respondents who did not receive this email
letter from us should contact Richard James at rjj@goldensegroupinc.com
or 781-444-5400, x202.
BOOK REVIEW
Measuring the Value of Partnering: How to Use Metrics
to Plan, Develop, and Implement, by Larraine Segil. AMACOM.
2004, 1st edition. 256 pages.
This new book by Larraine Segil, partner at Vantage Partners,
provides a system and the tools to measure an alliance throughout
the stages of its life cycle. Ms. Segil brings a wealth of
experience in business relationship management with business
organizations, competitors, political organizations -- far
beyond industry examples. This approach to partnering is a
high level mind set of the whole alliance process, with a
detailed methodology for keeping it on track. The author's
research shows how the different life cycle phases of an alliance
affect the culture of the alliance, the priority of the alliance
and the personalities of the managers involved. Here is a
brief overview of the process and some of the issues and metrics.
1. Alliance Startup - the exciting beginning phase of conceptual
and strategic planning, development and structuring; best
led by the "adventurer" manager personality. Metrics
are primarily development-oriented, such as ROI, time to market,
etc.
2. Alliance Hockey Stick Growth - the "aggressive, confident"
phase where the alliance is active and initial milestones
are met; best led by the "warrior" manager. Metrics
tend toward growth but should also include knowledge transfer.
3. Alliance Professional - the stage best suited to action
and metrics, when the partnering is most effective; best led
by the "hunter" manager. Metrics include resource
allocation and a re-examination of earlier metrics to see
if they are still on track.
4. Alliance Mature - the stage of slowed growth, team change,
conflict, restructuring of goals, and mediation; best led
by the "farmer" manager. Metrics focus on the customer
as well as financials and schedule.
5. Alliance Declining - the phase before termination or re-launch;
best led by the "politician" manager. Metrics to
consider are the alliance value proposition and risks of terminating.
6. Alliance Sustaining - a turnaround phase as the alliance
moves back to an earlier phase; best led by the "visionary"
manager. Metrics focus on showing signs of success, such as
cycle time, sales from new customers, time to market.
FEATURED GGI iSTORE PRODUCT
Featured Item: Each month, or every other month, GGI's
iStore features one item that we discount 40%. The current
Featured Item is "Proactive and Predictive R&D Metrics
- PPRD Coursebook" (S3)
The Proactive and Predictive R&D Metrics (PPRD) Coursebook
is your detailed guide to understanding and creating meaningful,
forward-looking metrics for R&D. The coursebook accompanies
the intensive seminar of the same name, and is useful on its
own. The coursebook (and seminar) covers the following four
metrics topic areas:
- Planning metrics
- Proactive metrics
- Predictive metrics
- Reactive metrics
The coursebook will help you move from reactive measures
of past activity to planning, proactive, or predictive measures
that improve the predictability of R&D and bottom-line
results. You will also learn how to differentiate between
a corporate and a project metric, as well as to create good
project metrics that can be rolled up across business units
to result in a good corporate metric. The coursebook contains
many examples and case studies of different types of metrics
used in different industries.
For the PPRD Coursebook, we have just taken a one-time discount
of $100, to a list price of $395. As a Featured Item, we have
dropped the list price from $395.00 to $237.00, a deep discount
of 40%. GGI's Featured Item changes approximately every other
month and is always offered at a 40% discount. For more information
or to purchase this valuable report, go to
http://www.goldensegroupinc.com/cgi/catalog.cgi?display_promo.
NEW iSTORE PRODUCTS
New Items: GGI's iStore has now been updated with
1 new Seminar Coursebook. See details below, or go directly
to GGI's iStore storefront:
http://www.goldensegroupinc.com/iStore/store.html
New Seminar Coursebooks
S6 "Measuring Product Development II" [200 pages]
- This coursebook describes advanced techniques and processes
for those areas of product development that are hardest to
measure but deliver the most value by measuring them. It covers
enterprise-level front-end processes, such as loading the
product development pipeline, hurdle rates, tradeoff analysis,
and risk and complexity analysis. Planning, proactive and
predictive measures are indicators of success for the selected
products/projects as they go through development. The coursebook
also provides a framework and method for assembling a set
of overall metrics for R&D. This coursebook is full of
case studies and industry examples as well as results from
GGI's primary research, which will give you powerful techniques
to measure your product development process. To order this
new Coursebook, go to GGI's iStore: http://www.goldensegroupinc.com/cgi/catalog.cgi?display_p356
NEW WEB CONTENT
GTK-Gateways To Knowledge: Your resource for industry
and product development related information and contacts offers
thousands of links to providers of technologies and services
for line management functions. The main entrance to GTK can
be found at:
http://www.goldensegroupinc.com/gateway/index.shtml
Calendar of Industry Events MEGA Gateway is one of
our top 3 MEGA Gateways. It contains a listing of links to
Conferences, Seminars, Distance Learning Centers, Webinars,
Colleges & Universities, Executive Education, and Corporate-Sponsored
Universities. The calendar has recently been updated with
many of the events being held in spring 2005 and beyond. If
you are looking for a conference or other learning opportunity,
check out the Calendar first. This free service for our readers
is now front and center on GGI's Home Page. Or, go directly
to the Calendar of Industry Events MEGA Gateway at:
http://www.goldensegroupinc.com/gateway/calendar2.shtml
CONFERENCES OF INTEREST
Collaborative Product Development - Marcus Evans presents
its 2nd Annual Conference on Collaborative Product Development,
"Strategies for Collaborative Development for Global
Competitive Advantage" on February 17-18, 2005 in Mumbai,
India. The conference will examine critical success factors
for effective collaboration and increased product innovation
through better collaboration with partners, suppliers and
customers. The conference is focused specifically for the
automotive and automotive supplier industries in India.
Brad Goldense serves as conference chairperson and will present
a half-day session on "R&D Productivity" on
Friday, February 18.
For more information or to register for this conference,
go to the Marcus Evans web site: http://www.marcusevans.com/events/CFEventinfo.asp?EventID=9356
UPCOMING PUBLIC SEMINARS
Measuring Product Development (MPD): Mastering Metrics
for New Product Development for Global Competition: Marcus
Evans is producing the Mastering Product Development (MPD)
seminar, presented by Brad Goldense, on February 21-22, 2005
in Mumbai, India. The two-day seminar focuses on current best
practices for measuring product development effectiveness.
The seminar covers the four primary product development measurement
areas: overall corporate R&D results, development projects,
business functions, and improvement projects. Heavy emphasis
is placed on how to set up a baseline for metrics, the metrics
currently used in industry with example case studies from
several industries.
For more information or to register for this seminar, go
to the Marcus Evans web site: http://www.marcusevans.com/events/CFEventinfo.asp?EventID=9401
WEBINARS OF INTEREST
Winning Practices for Product Development: This free,
online seminar series is sponsored by Sopheon. These one-hour,
online events feature experts and leading practitioners who
will share process knowledge and practical advice about ways
to improve your product development performance and results.
There is currently one webinar scheduled.
10 February, 2005 - (8:30 am Pacific/11:30 am Eastern/16:30
UK) - The Innovation Pipeline: Increasing the Flow Rate, presented
by Adam Peterson, Commercialization Manager of Specialty Chemicals
Business at Dow Corning Corporation
To register for this webinar, for more information on the
webinars, or to look at the archive of past webinars, go to
http://www.sopheon.com/events_onlineseminars.asp.
Next Generation Product Development: This online seminar
series is sponsored by IDe and features Michael McGrath, co-founder
of PRTM and chairman of IDe. These 90-minute online events
offer an overview of advanced practices of development-productivity-based
competition.
There is currently one webinar scheduled.
14 February, 2005 - (12:00 - 1:30 PM EST) - Dynamic Portfolio
& Pipeline Management
To register for this webinar, or for more information, go
to http://www.ide.com/webinars/michaelmcgrathwebinarseries20042005.htm
MANAGEMENT PRODUCTIVITY
APQC R&D Productivity Benchmarking Study
APQC has just concluded its consortium research and benchmarking
study, entitled "Measuring R&D Productivity."
Goldense Group, Inc. [GGI] was Subject Matter Expert for this
study. This study breaks new ground in understanding the drivers
of R&D productivity. Fifteen global sponsors from four
continents benchmarked five best practice companies on two
continents after a rigorous screening process.
The APQC consortium benchmarking study addressed the following
three areas:
1. Identify the areas where improved attention, knowledge,
and education would lead to higher R&D productivity. [What
are the key areas for best practice?]
2. Use measurement to increase visibility and awareness,
which in turn will facilitate enhanced performance in R&D.
[What are the measures for these areas?]
3. Determine effective change management activities to support
the realization of improved R&D productivity. [How did
the best practice companies achieve their practices?]
The kickoff meeting took place on July 20, 2004, and the
study was conducted with site visits during October, 2004.
The Knowledge Transfer Session occurred on December 9-10,
2004. Results remain confidential for several months and then
will be available for purchase soon through the APQC web site.
For information about this study, go to http://www.goldensegroupinc.com/apqc.shtml.
For general information about APQC, go to http://www.apqc.org.
For general information about Goldense Group, Inc., go to
http://www.goldensegroupinc.com.
TELEVISION EVENTS
Alexander Haig's World Business Review: Brad Goldense
has made several appearances on Alexander Haig's World Business
Review in the past year. Streaming video is available for
all shows, which aired on August 4, September 29 and December
15, 2002 and on May 20, 2003. See below for details.
May 20, 2003 Broadcast of September 29th In-Studio with
Alexander Haig (22.5 minutes): Streaming video for this
segment is available at: http://www.goldensegroupinc.com/ggiontv.shtml#wbr5
December 15, 2002 In-Studio with Alexander Haig (7.5 minutes)
on CNBC paid programming: Streaming video for this segment
is available at: http://www.goldensegroupinc.com/ggiontv.shtml#wbr3
September 29, 2002 In-Studio with Alexander Haig (22.5
minutes): Streaming video for this segment (as well as
the entire 30-minute show) is available at: http://www.goldensegroupinc.com/ggiontv.shtml#wbr2
August 4, 2002 On-Location at GGI (3.5 minutes): This
On-Location field report is available in streaming video on
GGI's website. To see the program, go to: http://www.goldensegroupinc.com/ggiontv.shtml#wbr1
The web page includes links to download a streaming video
player, if you do not currently have one installed on your
computer.
For more information on any of Brad's appearances on television,
go to:
http://www.goldensegroupinc.com/ggiontv.shtml
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GGI RapidNews is an e-mail publication from Goldense Group,
Inc (GGI). Its subject matter includes survey findings, company
news, book and article reviews, key industry conferences and
R&D information of interest to clients and associates.
Please send communications to rn(at)goldensegroupinc.com.
Thank you.
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