Quantification of Technology Innovation Usinga Risk-Based Framework
There is significant interest in achieving technology
innovation through new product development activities. It is
recognized, however, that traditional project management practices
focused only on performance, cost, and schedule attributes, can often
lead to risk mitigation strategies that limit new technology
innovation. In this paper, a new approach is proposed for formally
managing and quantifying technology innovation. This approach uses
a risk-based framework that simultaneously optimizes innovation
attributes along with traditional project management and system
engineering attributes. To demonstrate the efficacy of the new riskbased
approach, a comprehensive product development experiment
was conducted. This experiment simultaneously managed the
innovation risks and the product delivery risks through the proposed
risk-based framework. Quantitative metrics for technology
innovation were tracked and the experimental results indicate that the
risk-based approach can simultaneously achieve both project
deliverable and innovation objectives.
[1] Cooper, R.G., Edgett, S.J., and Kleinschmidt E.J.; Portfolio
Management for New Products. Addison Wesley, 1998.
[2] Kavanagh, D., and Naughton, E.; Innovation and Project Management
- Exploring the Links, Project Management World Today, April 2009.
[3] Crawford, C.M.; The Hidden Costs of Accelerated Product
Development, Journal of Project Innovation Management, Vol. 9, 1992.
[4] George, T., Powers, R.; Closing the TRL Gap, Aerospace America,
August 2003.
[5] McNeil, A.J., Frey, R., and Embrechts, P.; Quantitative Risk
Management Concepts, Techniques, and Tools, Princeton University
Press, 2005.
[6] Bender, W.J. and Ayyub, B.M.; Risk-Based Cost-Control for
Construction, Proceedings of the Advancement of Cost Engineering
Society, June 2001.
[7] Jonkman, S.N., Van Gelder, P., Vrijling, J.K.; An Overview of
Quantitative Risk Measures for Loss of Life and Economic Damage,
Journal of Hazardous Materials, May 2003.
[8] Kumamoto, H., and Henley, E.J.; Probabilistic Risk Assessment and
Management for Engineers and Scientists, 2nd Edition, IEEE Press,
1996.
[9] Chesbrough, H.; Managing Open Innovation, Journal of Research in
Technology Management, January 2004.
[10] Dundas, G.R., and Krentler, K.A.; Critical Path Method for Introducing
an Industrial Product, Industrial Marketing Management, April 1982.
[11] Grantham, K.L.; Detailed Risk Analysis for Failure Prevention in
Conceptual Design, Proceedings of the ASME International Design
Engineering Conference, September 2007.
[12] Hage, J., Jordan, G., Mote, J., and Whitestone, Y.; Designing and
Facilitating Collaboration in R&D: A Case Study, Journal of
Engineering Technology Management, October 2008.
[13] Polosky, M.A., and Garcia, E.J.; Microsystem Product Development,
Design, Test, Integration, and Packaging of MEMS, April 2006.
[14] Mankins, J.C.; Technology Readiness Levels: A White Paper, NASA
Office of Space Access and Technology, April 1995.
[1] Cooper, R.G., Edgett, S.J., and Kleinschmidt E.J.; Portfolio
Management for New Products. Addison Wesley, 1998.
[2] Kavanagh, D., and Naughton, E.; Innovation and Project Management
- Exploring the Links, Project Management World Today, April 2009.
[3] Crawford, C.M.; The Hidden Costs of Accelerated Product
Development, Journal of Project Innovation Management, Vol. 9, 1992.
[4] George, T., Powers, R.; Closing the TRL Gap, Aerospace America,
August 2003.
[5] McNeil, A.J., Frey, R., and Embrechts, P.; Quantitative Risk
Management Concepts, Techniques, and Tools, Princeton University
Press, 2005.
[6] Bender, W.J. and Ayyub, B.M.; Risk-Based Cost-Control for
Construction, Proceedings of the Advancement of Cost Engineering
Society, June 2001.
[7] Jonkman, S.N., Van Gelder, P., Vrijling, J.K.; An Overview of
Quantitative Risk Measures for Loss of Life and Economic Damage,
Journal of Hazardous Materials, May 2003.
[8] Kumamoto, H., and Henley, E.J.; Probabilistic Risk Assessment and
Management for Engineers and Scientists, 2nd Edition, IEEE Press,
1996.
[9] Chesbrough, H.; Managing Open Innovation, Journal of Research in
Technology Management, January 2004.
[10] Dundas, G.R., and Krentler, K.A.; Critical Path Method for Introducing
an Industrial Product, Industrial Marketing Management, April 1982.
[11] Grantham, K.L.; Detailed Risk Analysis for Failure Prevention in
Conceptual Design, Proceedings of the ASME International Design
Engineering Conference, September 2007.
[12] Hage, J., Jordan, G., Mote, J., and Whitestone, Y.; Designing and
Facilitating Collaboration in R&D: A Case Study, Journal of
Engineering Technology Management, October 2008.
[13] Polosky, M.A., and Garcia, E.J.; Microsystem Product Development,
Design, Test, Integration, and Packaging of MEMS, April 2006.
[14] Mankins, J.C.; Technology Readiness Levels: A White Paper, NASA
Office of Space Access and Technology, April 1995.
@article{"International Journal of Business, Human and Social Sciences:57123", author = "Gerard E. Sleefe", title = "Quantification of Technology Innovation Usinga Risk-Based Framework", abstract = "There is significant interest in achieving technology
innovation through new product development activities. It is
recognized, however, that traditional project management practices
focused only on performance, cost, and schedule attributes, can often
lead to risk mitigation strategies that limit new technology
innovation. In this paper, a new approach is proposed for formally
managing and quantifying technology innovation. This approach uses
a risk-based framework that simultaneously optimizes innovation
attributes along with traditional project management and system
engineering attributes. To demonstrate the efficacy of the new riskbased
approach, a comprehensive product development experiment
was conducted. This experiment simultaneously managed the
innovation risks and the product delivery risks through the proposed
risk-based framework. Quantitative metrics for technology
innovation were tracked and the experimental results indicate that the
risk-based approach can simultaneously achieve both project
deliverable and innovation objectives.", keywords = "innovation, risk assessment, product development,technology management.", volume = "4", number = "6", pages = "1058-5", }