Module 4Evaluation of Innovation

Effectiveness EvaluationIs Measuring the extent to which

targets are being met, and detecting the factors that hinder r facilitate their realization

Involves establishing cause-effect relationship about the extent to which a particular policy produces desired outcome.

Integration Of risksCombining different departments

of any organisation to analyse the risks involved and eliminate the risk at the initial stage

Ex., If Raw material used is found to be toxic, then keeping purchase and R&D team in loop to find an alternative raw material will help, even the marketing team might help.

Integration Of risks

Companies have to integrate customers into the innovation process to improve overall innovation capabilities and reduce discontinuous innovation's market risk

Customer integration into NPD process helps to identify customer needs better and also manage the risks better

Once customer needs are identified, information dissemination across the functional disciplines becomes a very important task for the organisation

Discontinuous innovations pose more risk because they involve more uncertainty

Issues in Innovation

Benefits and risks from innovationPublic perception of benefits and

risksPublic opinion, prejudice and new

technologiesCommunication and educationScience and Scientific uncertainty

Issues in InnovationRisk-based vs. Hazard based

policy and legislationRisk assessmentPrecautionary principleProportionality principleIntegration of risk and benefit

Conceptual approaches for risk

Risk is part of any human effort.The word Risk is derived from

Italian word “RISICARE”, which means “to dare”.

The risk is not an option, but we are permanently exposed to risk in everyday life, what is really important is that each time, to gain control over it

Features of Risk

Possibility of obtaining favourable or unfavourable results in a future action expressed in terms of probabilities

Possible future event whose production could cause some losses It is threat that an event or action to affect in a negative manner

the capacity of an organization to achieve its planned goals Some concepts about risk are focussed only on negative events,

while others take into account all variables, both threats and opportunities

Achieving the expected result of an activity is under the influence of random factors that accompany it in all stages of its development

Features of Risk

It is a problem which has not yet occurred but can occur in the future, threatening the achievement of agreed outcomes.

It is uncertainty in obtaining expected results and should be treated as a combination of probability and impact

The probability of risk occurrence and its impact on the results contribute to establish the risk value

It is permanent reality, an inherent phenomenon that accomplishes all activities and actions of an organization

Integrated Approach to risk

Integrated risk management process is designed and set by managment and implemented by staff within the organization

The process is not linear COSO – Committee of Sponsoring Organization of the

Treadway Commission (COSO) is a joint initiative of the five private sector organizations listed on the left and is dedicated to providing thought leadership through the development of frameworks and guidance on enterprise risk management, internal control and fraud deterrence

Factors influencing economic effectiveness

Enhance Product Value

Enhance Product Utility

Reduce Prices

Reduce Production Cost

Enhances demand and Choice

Overcome competition

Enhances economic growth

Post Implementation Analysis Of Innovation ProjectsPIR – Post Implementation Review

◦Analysis of Projects post implementation and simulation.

Important Questions to Answer in PIR◦Did the project fully solve the problem

that it was designed to address?◦Can we take things further and deliver

even bigger benefits◦What lessons did we learn that we can

apply to bigger future projects?

PIR When to review◦ When the members of the project team

remember the most. ◦ shortly after the project has been delivered ◦ when most of the problems have been ironed-out.

Tips to conduct PIR◦ Ask for openness◦ Be objective◦ Document Success◦ Look for hindsight◦ Be future-focussed◦ Look at both positives and negatives

PIR - What to reviewGap Analysis

◦Review the project charter to evaluate how closely the project results match the original objectives

◦Review the expected deliverables and ensure either that these have been delivered to an acceptable level of quality or that an acceptable substitute is in place

◦If there are any gaps, how can those be closed

PIR - What to reviewProject Goals

◦ Is deliverable functioning as expected◦Are error rates low enough, and is it fit for

purpose◦ Is it functioning well, n in a way that will adjust to

future operating demands◦Are users adequate trained, Skilled and supported◦Are necessary controls and systems in place.◦Routine activities needed to support the project’s

success◦How does end result compare with the original

project plan, in terms of quality, schedule and budget?

PIR - What to reviewStakeholders

◦Were the end users met◦Is the project sponsor satisfied◦What are the effects on the clients or

end user◦How can dissatisfaction be

addressed?

PIR - What to reviewProject’s Costs and Benefits

◦ Final costs◦ Cost to operate the solution◦ Cost to support the solution◦ Compare costs with the benefits

Report Findings and Suggestions◦ What have you learned from this review◦ Do you need corrective activity to get benefits

you want◦ What lessons have you learned that need to be

carried forward to future projects◦ Does this project naturally lead on to future

projects, which will build on the success and benefits already achieved

PIR – How to reviewDefine the scope of the review

beforehandReview key documentsConsider using independent

reviewersUse appropriate data collectionsDeliver appropriate reportsPresent recommendations

Phases of Project ManagementProject strategy and Business

casePreparationDesignDevelopment and testingTraining and Business readinessSupport and Benefits realizationProject close

Preparation Phase:◦Complete high level WBS – Work

Breakdown Structure◦Determine the project’s high level plan

at the milestone level◦Identify and recruit project members◦Produce the Project Initiation Document◦Select third parties to use in the early

project phases◦Put actions in place to secure key

resources

Training and Business readiness Phase◦Train users◦Put in place ongoing project◦Transfer data to new systems◦Identify what’s required for the

project to be effective from the launch date and ensure that you adequately address this.

Project Close Phase◦Complete and store documentation◦Carry out a PIR ◦Use your business connections to

reassign project team members to appropriate roles in the organization

Project Management ProcessesPhase ManagementPlanningControlTeam ManagementCommunicationProcurementIntegration

Intellectual Property in InnovationIPR

◦Are the rights given to persons over the creations of their minds

Importance of IPR

Tools of IPR CopyrightPatentTrademarkIndustrial DesignsGeographical Indication (GI)

National Innovation Act of 2008

GATT ITO

WTO

TRIPS n TRIMS IPR