Managing the Front End of Innovation—Part II: Results from a Three-Year Study

OVERVIEW: Based on data collected from 197 large, US-based companies, we analyzed the elements important for success in the front end of innovation. A previous article explored the role of organizational attributes, which account for 53 percent of front-end performance. A second set of organizational attributes—including effective teams, team leadership, and communities of practice—explain 24 percent of the variance in front-end performance. Specific activity elements were also identified as being important to success in the front end for incremental and radical innovation. Opportunity identification and analysis, idea enrichment, and concept definition were found to be the most important activity elements for front-end success for incremental innovation. In contrast, effective activity elements for radical innovation were related to understanding both existing and disruptive markets and leveraging new and emerging technologies. We were able to explain 29 percent and 32 percent of the variance in front-end performance for incremental and radical innovation based on these activity elements.

[1]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[2]  G. Lynn,et al.  Marketing and Discontinuous Innovation: The Probe and Learn Process , 1996 .

[3]  Peter A. Koen,et al.  Technology Stage Gate: A Structured Process for Managing High Risk, New Technology Projects , 2001 .

[4]  C. Lackman,et al.  Determinants of New Product Development Team Performance: A Meta‐analytic Review , 2012 .

[5]  Jeffrey Davidson,et al.  Providing Clarity and A Common Language to the “Fuzzy Front End” , 2001 .

[6]  David M. Szymanski,et al.  Why Some New Products are More Successful than Others , 2001 .

[7]  Heiner Evanschitzky,et al.  Success Factors of Product Innovation: An Updated Meta‐Analysis , 2012 .

[8]  R. Cooper,et al.  Major new products: What distinguishes the winners in the chemical industry? , 1993 .

[9]  S. Shane Prior Knowledge and the Discovery of Entrepreneurial Opportunities , 2000 .

[10]  Managing Front-End Innovation through Idea Markets at Novozymes , 2013 .

[11]  J. Nunnally Psychometric Theory (2nd ed), New York: McGraw-Hill. , 1978 .

[12]  David Edwards Innovation Adventures Beyond the Core , 2012 .

[13]  R. Keith Sawyer,et al.  Group genius : the creative power of collaboration , 2007 .

[14]  Erwin Danneels,et al.  The Effects of Mainstream and Emerging Customer Orientations on Radical and Disruptive Innovations , 2011 .

[15]  R. Henson Understanding Internal Consistency Reliability Estimates: A Conceptual Primer on Coefficient Alpha , 2001 .

[16]  Heidi M. J. Bertels,et al.  Communities of Practice versus Organizational Climate: Which One Matters More to Dispersed Collaboration in the Front End of Innovation?* , 2011 .

[17]  Michael E. Raynor,et al.  The Innovator's Solution: Creating and Sustaining Successful Growth , 2003 .

[18]  Richard Leifer,et al.  Grabbing Lightning: Building a Capability for Breakthrough Innovation , 2008 .

[19]  Robyn A. McDermott 10 critical success factors in building communities of practice , 2001 .

[20]  Michael Tushman,et al.  Organizational Ambidexterity: IBM and Emerging Business Opportunities , 2009 .

[21]  Robert G. Cooper,et al.  Winning at new products : accelerating the process from idea to launch , 2001 .

[22]  Richard DeMartino,et al.  Organizing for Radical Innovation: An Exploratory Study of the Structural Aspects of RI Management Systems in Large Established Firms, Journal of Product , 2006 .

[23]  Erwin Danneels,et al.  THE PROCESS OF TECHNOLOGICAL COMPETENCE LEVERAGING , 2007 .

[24]  Etienne Wenger,et al.  Communities of Practice: Learning, Meaning, and Identity , 1998 .

[25]  Ute R. Hülsheger,et al.  Team-level predictors of innovation at work: a comprehensive meta-analysis spanning three decades of research. , 2009, The Journal of applied psychology.

[26]  P. Koen,et al.  1 Fuzzy Front End : Effective Methods , Tools , and Techniques , 2002 .

[27]  Kate Ehrlich,et al.  Managing Collaboration: Improving Team Effectiveness through a Network Perspective , 2008 .

[28]  L. Cronbach Coefficient alpha and the internal structure of tests , 1951 .