The "fuzzy front end" of innovation

The fast transformation of technologies into new products or processes is one of the core challenges for any technology-based enterprise. Within the innovation process, we believe, the early phases (fuzzy front end) to have the highest impact on the whole process and the result (Input-Output Process), since it will influence the design and total costs of the innovation extremely. However the Fuzzy Front End is unfortunately the least-well structured part of the innovation process, both in theory and in practice. The focus of the present chapter is on methods and tools to manage the fuzzy front end of the innovation process. Firstly, the activities, characteristics, and challenges of the front end are described. Secondly, a framework of the application fields for different methods and tools is presented: Since a product upgrade requires a different approach compared to radical innovation, where the market is unknown and a new technology is applied, we believe such a framework to be useful for practitioners. Thirdly, a selection of methods and tools that can be applied to the fuzzy front end are presented and allocated within the framework. The methods selected here address process improvements, concept generation, and concept testing. --fuzzy front end,innovation management,stage-gate process,frontloading,triz,dsm-matrix,lead user

Innovation in UK companies. An evaluation of the implementation of best practice in front end innovation processes and methodologies

With the global economy facing its toughest test in over 60 years never has it been so important for companies, large and small, to innovate and grow. Whilst few business leaders would argue with this statement, research has highlighted the difficulty that businesses face in developing commercially successful, innovative products and services. It’s well documented that between 80-90% of new product launches fail and whilst 80% of business leaders believe that innovation is important 65% are dissatisfied with their ability to innovate. To understand why successful, innovative products and services appears to be so elusive we conducted original research amongst a sample of UK based companies. The aim of the research was to identify how companies generate potential product ideas and what barriers they face in taking these ideas to the next stage of development. The results showed that whilst small and medium sized companies recognized the importance of innovation they did not have formal processes for generating ideas. In contrast all respondents from large companies reported that their organizations did have formal documented processes for innovation activities. Worryingly, all companies failed to use a sufficiently wide range of research tools to identify customers unmet needs. Another key area of the research was regarding barriers to innovation. Perhaps unsurprisingly, cost was considered to be the greatest barrier. Several of the other top and middle tier barriers to innovation were: lack of communication between departments; senior management; politics; poor decision making processes; and incomplete scientific or technical understanding. These barriers are directly rectifiable by putting specific transparent front end innovation processes in place. Although these problems are likely to differ between different industries the use of some innovation methodologies such as technical forecasting would help in the strategic decision making process. These findings suggest that both SMEs and large companies have gaps in the quality of their innovation systems which present a significant risk that the new products they develop may meet with commercial failure

FrontEnd Toolkit: a toolkit to transform IDEAs into intelligent action

This FrontEnd Toolkit is about applying Design Thinking to transform new ideas into innovative products, services andbusinesses with an impact. The front end development of new user and customer-oriented solutions is a key opportunity aswell as a significant challenge for organizations and success is built on collaborative approaches. The overall objective is to help policy- makers, project owners, and managers as well as their stakeholders to design and implement projects with real impact. The Toolkit helps to establish an idea’s key value to stakeholders, and supports planning for the creation of high impact projects. It assists in defining complexity, cost, delivery, functionality,and future upgrade potential of a concept and creates new opportunities for partnerships. The Front End innovation is all about purposefully combining different skills, disciplines, and resources with knowledge related to the local innovation ecosystem to gain insights that inspire and help shape a new, valuable offering. The process of creating this constellation of elements involves understanding emerging opportunities,client and user mindsets, needs and expectations. It also involves making sense of the competitive environment, the social and individual constraints and enablers that drive the acceptance and up take of new products, services and business models

Reducing project related uncertainty in "the fuzzy front end" of innovation: A comparison of German and Japanese product innovation projects

In this paper, we are going to report on the results of an exploratory piece of research about the typical front-end-related activities in 28 innovation projects carried out by 14 German and 13 Japanese companies to reduce project uncertainty. In all cases we observed a range of activities to reduce project specific risks and revealed differences in the practice of innovation management in both the German and Japanese companies. We interviewed managers of 13 Japanese and 14 German enterprises concerning 14 Japanese and 14 German New Product Development projects. The focus of our research was the so called fuzzy front end ;, activities and typical deliverables in the innovation process which might be affected by front end management practice. Overall, in the case of the German as well as the Japanese projects, the uncertainties affected by the market or technology could successfully be reduced during the fuzzy front end and the majority of projects achieved their objectives and efficiency targets. Nevertheless, our study revealed differences in the way such uncertainties were reduced by the companies in Japan and Germany. Generally speaking, the 14 Japanese projects relied on a thorough planning, delegation of front end activities and strict controlling mechanisms to minimize deviations from front end specifications later in the innovation process and hence, achieved efficiency. In contrast, in the majority of the 14 German projects we could neither observe such a formal planning nor such an intensive controlling procedure supported by methods and tools as in the case of the Japanese projects. Instead, the companies in our German sample integrated relevant functions like R&D, marketing, sales, production or customer service from the beginning of the innovation process, usually already during the idea generation phase, to ensure that all critical information and perspectives were taken into consideration right from the beginning, to reduce uncertainties and later deviations as well as enhancing efficiency. Responsibilities were assigned during the fuzzy front end and rarely changed during the implementation of the project. --Fuzzy front end,innovation risk,uncertainty,idea generation,project selection,project planning,Japan,Germany