1. The Diamond of Innovation
Planning Projects for
Innovation and Success
Aaron Shenhar
Professor of Project and Technology Management
www.splwin.com
E-mail: ashenhar@splwin.com
1-201-323-3246
Copyright© 2013, Aaron J. Shenhar

2. The Diamond of Innovation

Part of Strategic Project Leadership® (SPL)
Based on Research on 600+ Projects
 Goal of SPL:

» Better Business Results
» Better On-time Delivery
Copyright© 2013, Aaron J. Shenhar

3. Strategic Project Leadership®
The New Science of PM
Business
Focus
Inspiring
Leadership
Dynamic
Innovation
Traditional
PM
Copyright© 2013, Aaron J. Shenhar

4. What is Innovation?
Commercialization of an Idea
Copyright© 2013, Aaron J. Shenhar

5. What is Innovation?
Commercialization of an Idea
Copyright© 2013, Aaron J. Shenhar

6. Managing Innovation
Idea
Commercialization
Innovation is Change, and Change is Difficult
Copyright© 2013, Aaron J. Shenhar

7. There is no Innovation without a Project
Innovation
Project
And Every Project is Actually an Innovation
Copyright© 2013, Aaron J. Shenhar

8. Classical Concepts of
Innovation

Types of Innovation:
» Incremental, Radical, System
» Market, Technology

Most Innovations and most Projects
Don’t Make it
Copyright© 2013, Aaron J. Shenhar

9. Project Management:
What’s Missing?
Traditional Project Management
Does Not Deal with Innovation
Assumes that
“One Size Fits All Projects”
Copyright© 2013, Aaron J. Shenhar

10. The Story of Two Modern Projects
Airbus A380
Copyright© 2013, Aaron J. Shenhar
Boeing 787

11. Uncertainty
Copyright© 2013, Aaron J. Shenhar

12. Look at Your Project Uncertainty
Level of Uncertainty
Time
Copyright© 2013, Aaron J. Shenhar

13. The Diamond of Innovation
Technology
Complexity
Novelty
Pace
Copyright© 2013, Aaron J. Shenhar

14. The Diamond of Innovation
Technology
Technological Innovation
Super-High Tech
High-Tech
Medium-Tech
System
Array
Complexity
System Innovation
Component
Novelty
Low-Tech
Market Innovation
Assembly
Regular
Derivative
New to Market
Platform
New to World
Fast/ Competitive
Time-Critical
Blitz
Pace
Urgency of Innovation
Copyright© 2013, Aaron J. Shenhar

15. Classical Project Phases
Initiation
Planning
Execution
Revise Design
Revise Plans
Revise Requirements
Copyright© 2013, Aaron J. Shenhar
Termination

16. Project Management
The Three Major Processes
Product Requirement Process
Managerial Process
Design Process
When do you stop them?
Copyright© 2013, Aaron J. Shenhar

17. Novelty Types
Innovation in the Market
Technology
Novelty
Complexity
Derivative Platform New to Market
Pace
Copyright© 2013, Aaron J. Shenhar
New to World
Less market research
Later requirement freeze
More requirement cycles

18. Technology Types
Innovation in Technology
Technology
Super-High
Tech
High-Tech
Later design freeze
More design cycles
Stronger Functions
Highly Technical PM
Medium-Tech
Low-Tech
Complexity
Novelty
Pace
Copyright© 2013, Aaron J. Shenhar

19. The Impact of the Diamond Dimensions on
Project Management
Technology
Complexity
Novelty
Complex Organization
Focus on Integration
Formality
Organizational PM Skills
Big Picture Leader
Pace
Copyright© 2013, Aaron J. Shenhar
Later Design Freeze
More Design Cycles
Strong Functions
Experienced Technical PM
Less Market Research
Later Requirement Freeze
More Requirement Cycles
Autonomy
Time Control
Pure Project Organization
Strong, Focused Leader

20. Copyright© 2013, Aaron J. Shenhar

21. The Diamond of Innovation
Technology
Technological Innovation
Super-High Tech
High-Tech
Medium-Tech
System
Array
Complexity
System Innovation
Component
Novelty
Low-Tech
Market Innovation
Assembly
Regular
Derivative
New to Market
Platform
New to World
Fast/ Competitive
Time-Critical
Blitz
Pace
Urgency of Innovation
Copyright© 2013, Aaron J. Shenhar

22. Segway
Denver Airport
Copyright© 2013, Aaron J. Shenhar

23. Denver International Airport Project
Technology
Super-High
Tech
Automatic Bag –
Handling System
High-Tech
Medium-Tech
Array
System
Assembly Com
Novelty
Low-Tech
Derivative Platform NTM NTW
Complexity
Regular
Airport
Construction
Project
Fast/
Competitive
Time-Critical
Blitz
Pace
Copyright© 2013, Aaron J. Shenhar

24. Technology
Super-High
Tech
High-Tech
Medium-Tech
Low-Tech
Array
System
Novelty
Assembly Com
Derivative Platform NTM NTW
Complexity
Regular
Fast/
Competitive
Required style
Time-Critical
Dr = (NTW, HT, Sy, F/C)
Da = (Pl, HT, Sy, F/C)
Actual style
Blitz
Pace
The Segway Project
Copyright© 2013, Aaron J. Shenhar

25. Exercise
 Assess the
Following Projects:
» Walkman
» Boeing 787
» iPod, iTunes Store
» Y2K
» Tata Nano
» Iridium
 Define
The Diamond Levels
» Novelty, Technology, Complexity, Pace
Copyright© 2013, Aaron J. Shenhar

26. Walkman
Copyright© 2013, Aaron J. Shenhar

27. Boeing 787
787
777
Copyright© 2013, Aaron J. Shenhar

28. iPod, iTunes Store
IPod
iTunes Store
iPod
Copyright© 2013, Aaron J. Shenhar

29. Y2K
Copyright© 2013, Aaron J. Shenhar

30. Tata Nano
Technology
Super-high-tech
High-tech
Medium-tech
Low-tech
Complexity
Novelty
Array System
Assembly Component
Derivative Platform
Regular
Fast/competitive
Time-critical
Blitz
Pace
Copyright© 2013, Aaron J. Shenhar
NTM
NTW

31. Iridium
1987-1999 - $7B Loss
Technology
Super-high-tech
High-tech
Medium-tech
Low-tech
Complexity
Novelty
Array System
Assembly Component
Derivative Platform
Regular
Fast/competitive
Time-critical
Blitz
Pace
Copyright© 2013, Aaron J. Shenhar
NTM
NTW

32. The Diamond of Innovation
Can Be Used for
»Assessing Markets and Products
»Selecting PM Style and Process
»Communication Language
»Putting a Project Back on Track
»Innovation Based Resources and Slacks
Copyright© 2013, Aaron J. Shenhar

33. CS Tips on Adaptation and the Diamond






Identify the highest level on each dimension
If in doubt between two levels, select the higher one
Specific levels are typically subjective – company
dependent
The bigger the Diamond, the bigger the challenge, the
risk, and the opportunity
Higher Diamonds require increased contingency funding
Build your own company’s dimensions
Copyright© 2013, Aaron J. Shenhar

34. The Diamond of Innovation
»Easy to Apply and Use
»Will Help Planning Realistically
and Better On-Time Delivery
»Obtain the Needed Resources and
Necessary Reserves
Copyright© 2013, Aaron J. Shenhar

35. Contact Information for
The Diamond of Innovation
Strategic Project Leadership®
Aaron Shenhar
Professors of Project Management
www.splwin.com
E-mail: ashenhar@splwin.com
201-323-3246, 050-766-9533
Copyright© 2013, Aaron J. Shenhar