Disruptive Innovations are Expensive

Companies around the globe pursue breakthrough technologies to grow. Surveys show that executives remain dissatisfied with the return on innovation investment. The article Source: The big costs behind Google’s moonshot start-ups provides some useful data. The debate among tech analysts isn’t about whether the moonshots will lose money, but rather how large the losses will

Disruptive and sustaining innovation

Inder Sandhu, SVP of Strategy and Planning at Cisco has written an article in Forbes about new product platform development and product improvement.  The idea is that an organization needs to focus on developing new product platforms while generating revenues from incremental improvements to existing platforms.  He calls it Disruptive and Sustaining Innovation. But doing

Beyond Phase Gates – Agile R&D

Phased development with gate reviews has delivered many benefits to product development organizations. This process ensures business perspective is incorporated into product development. Gate reviews are generally led by senior managers. Their engagement drives organizational consensus and resource commitment. Gate reviews also guide the organization away from risky endeavors by focusing on predictability and return

Need for Structured R&D Roadmaps – Daimler Example

It takes a long time to develop new technologies and integrate them into products. The wired article How Daimler Built the World’s First Self-Driving Semi has a great example: Daimler, which owns Mercedes-Benz, has been working on autonomous driving for two decades. … As amazing as this thing is—it’s a fully autonomous 18-wheeler that works—company

Developing Product Platforms – Microsoft Example

Recent news suggests that a new version of Microsoft’s critically acclaimed Surface Book is entering mass production. It appears that Microsoft had to make significant changes to the original Surface Book to meet some of its business goals… The sources believe Microsoft’s decision to lower the price range for its new Surface Book is because

Indirect Benefits of R&D – Chrysler Example

The article Heritage: Prowler was a vehicle ahead of its time. | driveSRT has some interesting data points about R&D portfolio executives. New technologies can have benefit far beyond the product for which they were developed.  “Magnesium instrument panels, aluminum hoods and aluminum suspensions, vital crash safety design. All are key traits featured on new SRT vehicles that

Organization structures for nurturing breakthrough technologies

The article Organizing for New Technologies in MIT Sloan review has some interesting thoughts about organization structures necessary to get the most out of emerging technologies. The article starts off by defining and distinguishing invention and innovation: To understand the challenge, one first needs to recognize the distinction between the new idea (invention) and its