Innovation Management

How to ensure business

competitiveness and sustainability
Innovation
When we think about innovation there is a natural
tendency to think about revolutionary discoveries by
science geniuses in some super-equipped laboratory.
The reality is that innovation doesn't necessarily need
special environments and people or even have be
something especially unique. Innovation can occur on
the factory floor of an industry that has managed to
improve the manufacturing process of a product. It can
be a new service conceived in a sales department to
better satisfy a customer's needs. And, of course, it can
be a completely new technology or product with the
potential to revolutionize the market.
In short, innovation occurs whenever you do something
new or when you significantly improve something that
already exists, resulting in savings, generating new
demand or satisfying an existing need and, especially,
generating value.
What is innovation management?
Innovation can occur anywhere and by accident. However, to be relevant and
competitive in the market, a company has to ensure that the act of innovating
is organized. It is important to implement a structured process that
encourages the generation of ideas, classifies them and enables them to be
transformed into something that generates value.

Innovation management is all about providing means and methods that help
transform ideas into process improvements or new products and services
that reduce costs or increase revenues. In short, ideas that can generate
value for the company and its ecosystem.

In this eBook, we will show you in detail how to implement innovation

management processes so your organization can best take advantage of
new ideas for processes, services and products.
 Constant evolution has become a key element in companies that
want to remain relevant in a changing market. Organizations that
do not create and take on challenges run the risk of becoming
stagnant and being caught by surprise by the competition or

How important losing customers.

is innovation Creating a favorable environment for new ideas should be seen

as essential for a company to be sustainable over time. And,

management according to the most contemporary views, sustainability should

not just have an economic focus. The success of companies is

in companies?
increasingly linked to innovations that align economic, social and
environmental aspects.

The attention that the world has given to issues related to ESG
(Environmental, social and corporate governance) only supports
this idea. Companies that are able to demonstrate an innovative
attitude, taking into account these three pillars, tend to stand out
in the market and attract customers, investors and partners.
Product Innovation and Development

Developing a new product doesn't happen overnight.

Focus on the market forecast
Even with a lot of effort, dedication and time, you need
Technological planning
planning and a good management model to
successfully develop your product. Product platform

Intellectual property management

Product development management, the path to
Portfolio management
success!
Product strategic planning
We can say that Product Development Management Project planning
aims to control and ensure quality in the process of
Informational project
creating, maturing and finalizing a product, linking all
professionals and services involved, from the original Conceptual project
idea to finally removing the product from the market. Production preparation
Researchers highlight some crucial issues:
Launch
 Is it possible to implement a product
development model?
A good product development process also includes a follow-up after the launch, because that's time to
identify possible adjustments or changes in the specifications. A good example is software releases.
The need for adjustments right after a release, such as in iOS of iPhones, is common and is already part
of users' routine. In some cases, it may be the reason for the end of the product, even at the start.

Authors Crawford and Benedetto3 define the product development process as a combination of steps,
activities, decisions and goals that, if carried out properly, will result in the company's new products.
Another renowned author and researcher, Rozenfeld2, describes the main characteristics as:
participation of different functional areas of the organization, large volume of data, uncertain and
dynamic data and the constant need for decision-making.

Reference models divided into phases were developed as a way to standardize product development
practices and optimize project control.
Crawford / Benedetto
/ Cooper models Pre-development

Crawford and Benedetto3 and Cooper4 present Development

three major phases or macro-phases in their
product development models. Each of these
includes a set of activities with distinct objectives: Launch
Pre-development
It involves the activities carried out before the
development of the product design. This phase identifies
new product ideas, the strategies for the products
(including sales) and it also manages the inclusion of
these ideas or products into the development process. A
risk and challenge in this stage is the dependence on
market data and information on available strategies or
resources for the project to get off the ground.
Development
It involves the activities to create the product design. It
starts with determining the scope of the product to be
developed, which can also be a service, and the initial
essential requirements. Following this, the project
progresses with the detailing of the requirements,
concepts, technical specifications and the production
process. In the end, prototypes or test versions of
software, for example, are validated to verify quality and
compliance with requirements. As a final benefit, you
end up with the final specifications and all the other
necessary data to be able to manufacture or develop
your product, in addition to launching it on the market.
Launch
It is the most anticipated phase, when the product
goes to market. This includes preparing products for
points of sale, supplying parts, technical assistance,
customer service, the business model, pricing
strategy, marketing and financial strategy. Not to
mention that you can't stop progress, right? So
improvements, as we discussed above, need to be
planned.
The Rozenfeld Model
One model we use is the one suggested by Rozenfeld et al2. Like the ones by the authors cited above, it also establishes the product
development process as a set of activities carried out in a logical sequence with the goal of producing a good or service that has value for a
specific group of customers.

Here we also have three distinct phases: Pre-development,

Development and Post-development. The difference is that, in
this model, the phases are subdivided, making the process
more amenable to management and working with the creation
of input data and transforming it into output data. An example
would be customer requirements for the final product.

The model adopts a system of gates between phases, with the

formal review and approval of the service or product before
moving forward in the process.
Benefits of the
Rozenfeld Model
The Rozenfeld Model is more efficient for
product development, since approval after
reviewing the previous phase reduces process
failures and accelerates performance with
continuous improvement.

Rozenfeld Model
Implementing the Rozenfeld Model
The PDP (Product Development Process) activities can be grouped into three macro phases (mentioned above):
• Pre-development, Development and Post-development.

1 Pre-development involves the strategic product planning and
project planning phases. This step defines the company's
product portfolio based on the strategic plan, new product
ideas from internal and external sources (such as market
research), market and technological opportunities and
restrictions (capital or production capacity).
2 Development involves several essential stages: informational,
conceptual, detailing, production preparation and product
launch projects. During this phase, the specifications are
determined and carried out for design, product, production
process, maintenance, sales, distribution, technical assistance
and customer service.

3 Post-development is essential for its success because it allows

you to monitor the performance of the product and the production
process and decide or validate the possibility of discontinuity.
Based on the lessons learned, you can identify opportunities for
improvements to the product, the production process and the
company's product development model.

More than
execution:
management
for success
There is a consensus that good product
development performance depends, to
a great extent, on the way this process
is managed. Among the practices that
contribute to efficient and effective
PDP management, the following stand
out:
• Vision of product development as a business process;
• Alignment between product development activities and the
company's strategic planning;
• Product lifecycle management;
• General definition of the activities that must be carried out
throughout the PDP in manuals and procedures;
• Involvement of professionals from different functional areas
involved in the PDP (multi-functional project teams);
• Involvement of partners (suppliers, customers, universities,
technology institutes etc.) during the PDP;
• Use of methods and techniques to support the PDP;
• Meetings to assess activities and results (gates) throughout the
PDP;
• Use of indicators to assess and improve project and PDP
performance;
• Use of formal mechanisms to record lessons learned in projects;
• Management approach to the evolution of the PDP through
maturity levels.
 We should highlight the differences between process improvement and

Development product improvement, which occur during the development of a new

product. Continuous improvement is one of the support processes in the
Product Improvement Process, as well as Engineering Change Management,
occurring in the post-development phase.

X To clarify, the concept of continuous improvement is defined as an

immediate relation of improvement in products developed or under
development. It is a systematic approach involving continuous or

Process improvement
incremental improvement at all levels of the company, where the sequences
of these activities are an independent process that can permeate all other
processes in the company, including the process of developing new
products.

X It is worth noting that an isolated improvement in a process does not

benefit the product or the company. This improvement should be related to
the quality of the product being developed, the speed used in the activity and
a reduction in the financial investment defined for the product. What really
Product improvement matters is that there is an improvement in the PDP and, consequently, in the
products themselves.
 How to evaluate your product development process
Your product development model can be evaluated according to four basic elements:

Strategy Organization Activities and data Methods and resources

his is a necessary phase that, in

It involves validating and evaluating
some cases, is neglected when
Strategy includes the organizational structure adopted As the name implies,
developing a service or
managing the to advance the product development these are all the
product. It is related to the
company's product and model. For example, it is through methods, techniques,
knowledge management of all
project portfolio, organization that the management of tools and systems that
the activities carried out during
evaluating product development teams is validated, can be applied as
its development and the
V
development including the rolesVof project leaders V the necessary support inV one or more
management of
performance, deciding and the training and monitoring of the previous phases
information and the data
on alliances and programs for the training of the and in carrying out
generated during this process.
partnerships, and personnel involved. Organizational specific activities (for
Be careful you don't lose your
managing inter- management is, and will always be, example, prototype
valuable intellectual capital in
functional relations in one of the main pillars of the assessment, field tests
the process, as it is an
the company. development process and it needs etc.).
essential asset.
personalized and personal monitoring.
What if product • What phases, activities and tasks are carried out
development is already by the company?

underway?
• How are these activities carried out (methods and
tools used)?
• What is the company's stage in the PDP
Knowing that it is not always possible to research or
prepare the development of a product in advance, we can incremental evolution cycle (process

highlight the most relevant aspects to identify the level of standardization, measurement, process control
maturity in your company's product development, and continuous improvement)?
according to CHRISSIS1:

From this, you can identify which of the five maturity levels your company is at.
 Product Development Maturity Levels
Level 1 – Basic:
Indicates that only some of the activities prescribed as good practices in the bibliography and product development manuals are being
performed.

Level 2 – Intermediate:
Product development activities are standardized and the results are predictable. Established methods and tools to support the process
are being employed.

Level 3 – Measurable:
It includes carrying out all activities from the previous levels, in addition to the use of performance indicators to measure the performance
of activities. However, the process correction and improvement actions are not systematic.

Level 4 – Controlled:
Includes all previous levels. Corrective actions are systematic and part of the change management and incremental improvement
processes of your product development.

Level 5 – Continuous improvement:

It includes the activities from the previous levels. Product development is assimilated internally and with the processes of engineering
change management, incremental process improvement and the product transformation model based on stable development models. The
practice of permanent improvement as a whole is continuous and is part of the culture of the company and the area.
Product development and business results
The reality and necessity of your project, service or
product allows you to assess your level of maturity. In
some cases, your company can simultaneously be at
more than one level, according to your product
development stage. The most important thing is that your
company be ready and have the right conditions to
implement each phase and level of development, without
skipping steps, thus ensuring constant and robust
evolution.
The product development process is extremely important
and can significantly impact your company's results. As
we have seen, there is always more than one way to carry
out a process, but it is important to understand that the
method you select must be followed, as well as the
corporate culture and rhythm. It is important not to jump
to steps ahead of time. Take the time to evolve in each
step calmly and with awareness. Many factors are at play
in product development and you need to address them
one by one, from market research to production and
delivery of the product or service. Plan, evaluate best
practices, define processes and always study.
Development will be continuous and very successful, as
long as the process is clear and accepted by everyone
involved.
 Optimized and facilitated product development
process
SoftExpert Suite has intuitive and specialized
tools for managing product development
activities.

With resources that allow people to work

cooperatively, whether in the same place or
distant, the solution improves creation and
development initiatives.

Unleash your company's creative potential

and move to the top.

Learn more
 Bibliography

1 - CHRISSIS, M. B.; KONRAD, M.; SHRUM, S. CMMI: Guidelines for process integration and product improvement. Boston:
Addison-Wesley, 2003.

2 - ROZENFELD, H et al Process oriented framework to support PLM implementation Sao Paulo, Elsevier, 2008.

3 - CRAWFORD, M. & BENEDETTO, A. D. New Products Management. Irwin: McGraw-Hill, 2006.

4 - COOPER, Robert G. Winning at New Products: Creating Value Through Innovation. New York: Basic Books, 2017.
Company

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