Innovation & Project Management- part 1

I. Foundations: Innovation and Project Management

1. Relationship between Innovation and Projects
 Innovation = Creating something new that brings value (better, faster, cheaper, or more useful).
 Innovation = change that creates value
 A project is like a temporary mission with a clear start and end. It has a goal, a budget, and a
deadline.

Simple idea: Innovation is the idea. A project is the vehicle that turns that idea into a real product or
service.

2. Types of Innovation

Type What it means Simple Example Impact

*Attract new customers
Creating a new product or
Product New iPhone, electric car *Enter new markets
improving an existing product
*Increase sales
*Reduce cost
Improving the way a company *Save time
Process produces or delivers products or Using robots in a factory *Improve quality
services

*New revenue streams

*Better scalability
Business Changing how a company creates Netflix (from DVD
*Access to new markets
Model and earns money rental to subscription)

*Better decisions
Manage- Changing how a company is Using New management
*More flexibility
ment organized and managed. styles
*Better employee engagement
Microfinance for poor *Better social conditions
Focuses on solving social or
Social people, Renewable *Environmental protection
environmental problems
energy *Inclusive growth
*Create new markets
Technolo Using new technology or applying Artificial Intelligence *Improve performance
-gical technology in a new way. (AI), Robotics *Reduce costs
*Remove barriers

“So innovation is not only about technology. It can also be about how companies work and create value.”

3. Innovation Ecosystems
 Definition

Innovation rarely happens alone. It needs a team of players working together.

An Innovation Ecosystem = A network of people and organizations that help each other create new things.
  Key Actors

There are many actors in an innovation ecosystem:

Examples of actors: These actors interact and share: This collaboration helps
 Startups  Knowledge create new technologies and
 Companies  Resources new solutions.
 Universities  Ideas
 Research centers
 Governments
 Customers

 Startups and scale-ups → create new ideas and innovations

 Corporations (big companies) → invest and develop innovation
 Universities and research institutes → produce knowledge and research
 Government and public agencies → create policies and support innovation
 Customers and communities → use products and give feedback

“All these actors interact and share knowledge.”

For example:

Silicon Valley is a famous innovation ecosystem. There we find: Tech companies, Universities, Investors,
Startups

“All these actors work together to create innovation.”

 Rules and Practices

Ecosystems work because of rules and practices.

Examples:

 Collaboration norms: collaboration between companies

 IP sharing: sharing knowledge (IP sharing)
 Talent mobility: movement of talent (people change jobs)
 Funding cycles: funding systems (investment cycles)

“These rules make innovation easier.”

 Infrastructure

Infrastructure is very important for innovation.

Examples: research labs, testing centers (testbeds), digital infrastructure (internet, data)

“These tools help companies develop new ideas.”

 Cultural Elements

Culture is also important. Innovation needs: risk-taking, entrepreneurial mindset, trust between actors
 “A strong culture helps innovation grow faster.”

 Role of projects in innovation

 A project helps to:  For example:

 Plan the work A company has an idea for a smart energy

 Organize the team app. This idea is not enough alone. The
 Manage time and budget company needs a project to:
 Test the idea
 Create a real solution  Study the need
 Design the app
 Develop the app
 Test the app
 Launch the app

 Innovation also needs:

 risk-taking
 experimentation So we can say: Projects transform ideas
into real solutions.
Why?  Because innovation is something new. When
something is new, success is not always certain.

 Types of Innovation Ecosystems

Ttpe Examples
Regional Innovation based on geography. Innovation happens in a specific  Silicon
Ecosystems place Valley
 Boston
These places have many companies, universities, and
investors.
Industrial / Sectoral Focused on one industry.  Fintech
Ecosystems  Biotech
Actors work in the same sector.
Academic-Industry Collaboration between: Universities and Companies
Ecosystems
They work together to create innovation.
Open Innovation Companies collaborate with external partners.  Communities
Ecosystems  Startups
They share ideas openly.  Developers

Public-Private Collaboration between: Government and Private

Innovation Systems companies

Goal: support innovation at large scale.

II. PMBOK Framework for Project Management
5.1 What is PMBOK?
PMBOK means: Project Management Body of Knowledge

It is a standard framework that explains how to manage projects correctly.

It gives: Methods + Tools + Best practices, used by project managers.

The goal is to help projects:

 Finish on time
 Respect budget
 Achieve objectives

5.2 Project Management Knowledge Areas

1. Scope Management

Scope =  Define what is included and excluded in the project. what we will do + what we will NOT do

Key processes:

1. Plan scope : Define how scope will be managed. “Goal:

2. Collect requirements Identify stakeholder needs. avoid
3. Define scope Create detailed project description. confusion
4. Create wbs Break work into smaller tasks. and extra
5. Validate scope Formal acceptance of deliverables. work”
6. Control scope Monitor changes to scope.

2. Schedule Management

Schedule = time planning.  Ensure timely completion of the project. When will tasks be done?

1. Plan schedule Define how schedule will be managed “Goal:

2. Define activities Identify all tasks to be done finish
3. Sequence tasks Determine order of tasks project on
4. Estimate duration Estimate time for each task time”
5. Create timeline (Develop Create project timeline (Gantt)
schedul)
6. Control schedule Monitor and adjust timing

3. Cost Management

Cost = [Link] much the project will cost

This part helps to: Estimate cost, Create a budget and Control spending

1. Pln cost Define how costs will be managed “Goal: not exceed the budget”
2. Estimate costs Calculate cost of each activity
3. Determine budget Create total project budget
4. Control costs Monitor and control expenses
 4. Quality Management

Quality = how good the result is. How to ensure good quality results

It ensures that: The project meets standards and The client is satisfied

1. Plan quality Define quality standards ‘’ Goal: Ensure that the project
2. Manage quality Ensure processes follow standards deliverables meet required standards
3. Control quality Check results and fix problems and satisfy customer expectations”

5. Risk Management

Risk = something that can go wrong. How to handle uncertainties and problems

This part helps to: Identify risks, Analyze risks, Plan solutions and Monitor risks

1. Plan risk Define how risks will be managed “Goal: reduce problems and surprises”
2. Identify risks List possible risks
3. Analyze risks Evaluate probability and impact
4. Plan responses Define solutions for risks
5. Monitor risks Track and control risks

6. Communication Management

Communication = Makes sure the right information reaches the right people at the right time.

How information is shared in the project

1. Plan communication Define who gets what info “Goal: Ensure the right information is
2. Manage Share information properly delivered to the right people at the right
communication time”
3. Monitor Ensure effective communication
communication

III. Problem Framing

(How to define the right problem)

Why problem framing matters

If you solve the wrong problem → you waste time and money.

Problem framing helps to:

 Understand the situation (Clarifies the real problem)

 Align stakeholders
 Define clear objectives
 Defines success metrics
 Avoid wasting time and resources
 1. Define the problem statement
 A problem statement describes: Current situation, Problem (negative effect), Desired situation,
Success measure
 Structure:

--> We currently [current condition]

--> which leads to [negative consequence]
--> The desired condition is [target state]
--> Success means [measurable indicator]

 Example

We currently have slow delivery times, which leads to customer [Link] desired condition is
fast and reliable [Link] means delivery in less than 24 hours.

2. Characteristics of a good problem

A good problem must be:

1. Specific → clear and precise

2. Observable → we can see it
3. Measurable → we can measure it
4. Actionable → someone can act on it
5. Solution-agnostic → no solution inside (don’t put the solution in the problem)

“Focus on the problem, not the solution.”

3. Define Goals and Success Metrics

a. SMART goals b. Indicators

 Specific **Leading indicators

 Measurable
 Achievable Early signals of progress.
 Relevant
 Time-bound Example: faster process time

**Lagging indicators

Final outcomes (results)

Example: revenue, satisfaction

4. Context and Constraint Framing

a. Context Mapping b. Constraints

 who is affected  budget

 why it matters  time
 how the system works  technology
 regulations
  data

5. Problem Decomposition and Root Cause Analysis

We break the problem into smaller parts. We search for the root cause (real reason).

Tools:

 5 Whys
 Fishbone diagram
 Cause mapping

6. Stakeholder Mapping and Empathy

 We identify all stakeholders: Who is affected?  users, clients, team, sponsors

 We try to understand them: Needs, problems, expectations

 Tools: Personas, customer journey

VI. Opportunity Assessment (How to evaluate opportunities)

After you clearly define the problem, you look for solutions (opportunities).

1. Generate This step is about finding possible solutions. The goal is to have
many ideas many ideas”
Methods: Brainstorming, Workshops, Design thinking,
Benchmarking
2. Evaluate We check if the idea matches the company strategy. “Not all ideas are
strategic fit good for the
Questions: Does it align with company goals? Does it create company.”
value?

3. Feasibilit We check if the idea is possible. “ Goal: Determine

y assessment whether the idea can
Types: be realistically
implemented with
 Technical → do we have the technology? available resources,
 Operational → can we implement it? technology, and
 Organizational → do we have skills and team? capabilities”

4. Risk We identify risks related to the idea. “Every opportunity

assessment has risks.”
We analyze: probability + impact

We prepare solutions.
5. Validatio We test the idea before full implementation. « Test → learn →
n improve »
Methods: prototype, pilot project, MVP (Minimum Viable
Product)
 6. Go / No- Final decision: “Goal:Decide
Go decision whether to proceed,
 GO → continue project modify, or stop the
 NO-GO → stop project based on
 PIVOT → change idea value, feasibility,
and risk”
Decision based on:

 value
 feasibility
 risk

VII. Design thinking: (Empathize → Define → Ideate → Prototype → Test)

1. Empathize (Understand people)
You try to understand the user deeply:

 What do they need?, What problems do they have?How do they feel?

You don’t guess — you observe and ask:

 Main tools:

 Interviews → ask users questions

 Observation → watch how users behave
 Surveys (questionnaires) → collect answers from many users
 Empathy map → understand what users think, feel, say, do
 Personas → create a profile of a typical user

 Simple idea:
→ “Understand the user before creating anything.”

Goal: collect information about users' insights and understand their needs and context

2. Define (Clarify the problem)

Now you organize what you learned.

You define the real problem clearly:

 What is the main issue?, Why is it important?

 We need to :

 “frame the right problem”

 “problem statement”

 Main tools:

 Problem statement → clear description of the problem

 “5 Whys” → ask “why” several times to find the root cause
  Customer journey map → understand user experience step by step
 Insight statements → summarize key findings

 Simple idea:
→ “Say clearly what problem you want to solve.”

Goal: clarify the problem

3. Ideate (Generate ideas)

Here you start thinking about solutions.

You create many ideas:

 Main tools:

 Brainstorming → group idea generation

 Mind mapping → organize ideas visually
 SCAMPER method → modify existing ideas
 Crazy 8s → generate many ideas quickly

 Important:

 No criticism
 Quantity over quality at the beginning

 Simple idea:
→ “Think of many possible solutions.”

Goal: create many ideas  creative thinking without judgment

4. Prototype (Build a simple version)

Now you take an idea and make a simple version of it.:

Prototype means creating a simple and early version of your idea to see how it works. It is not the final
product. It is just made to:

 test the idea

 understand user reactions
 improve quickly

A prototype is a quick and testable version of a product used to learn, not to deliver the final solution

Tools for Prototyping

1. Sketches (paper  Draw your idea on paper Example: drawing a mobile app
drawings)  Very fast and cheap screen
 Used at the beginning

2. Wireframes  Simple structure of a Example: where buttons and

product (no colors, no menus are placed
design)
  Shows layout (buttons,
text, navigation)

3. Mockups  More detailed design Example: what the final app will
 Includes colors, images, look like
style

4. Clickable prototypes  Interactive version (you Example: clicking buttons to

can click) move between screens
 Simulates real use

Types of Prototypes
Criteria Low-Fidelity Prototype High-Fidelity Prototype
Definition Very simple and basic version More detailed and realistic version
Purpose Test ideas quickly Test usability and user experience
Level of detail Low (simple shapes, no design) High (colors, images, real design)
Cost Very cheap More expensive
Time Very fast to create Takes more time
Tools used Paper, sketches, simple wireframes Software, interactive mockups
Interactivity No or very limited Interactive (clickable, realistic)
Accuracy Not realistic Close to final product
When to use Early stage (idea phase) Later stage (before final product)
Example Drawing an app on paper Clickable app prototype on software

Low-fidelity prototype High-fidelity prototype

 Simple and quick  More realistic

 Example: sketches, paper  Example: interactive app
 Goal: test ideas fast  Goal: test usability and details

 Simple idea:
→ “Create a basic version to see how it works.”

Goal: create a simple version

MVP

a. MVP Design b. Learning Goals c. Experiments

This is about: Define what you want to learn Experiments are tests to
validate your idea
An MVP is the simplest version of a Examples:
product that delivers value + used to get Examples:
validated learning  Do users need this product?
 Will they use it?  landing page test
 Gives real value to users  Will they pay?  usability test
 Helps you learn from real usage  A/B testing
 Deciding what features to include
  Keeping only the essential
features Important: Goal:
→ collect real data, not
Goal:  Must be clear and opinions
→ Don’t build everything, only what is measurable
necessary to test the idea  Based on assumptions Simple idea:
Simple idea: Simple idea: → “Test the idea with users
and measure results”
→ Not perfect, just useful + testable → “What do I want to learn from
users?”

Difference between Prototype and MVP

Prototype MVP
 used to explore ideas  real product (basic version)
 not always functional  users can actually use it
 can be:  includes only essential features
o sketch
o mockup → purpose: test market and value
o simple design

→ purpose: show look and concept

 Prototype → “Does the idea look good?”  MVP → “Does the idea work in real life?

Lean Experimentation and Validated Learning

Lean experimentation Validated Learning

 a structured way to test ideas This means:
 avoids wasting time building wrong
products  learning based on real data
 not guesses or opinions
Process:
→ “use measurable outcomes, not opinions”
1. Build (MVP)
2. Test (experiment) Examples:
3. Measure results
4. Learn  number of users
5. Improve  conversion rate
 user behavior

Simple idea:
→ Don’t assume → test + measure + learn
  MVP = simple product with real value to test ideas
 Learning goals = what you want to learn
 Experiments = tests to validate assumptions
 Prototype ≠ MVP

 Prototype = idea visualization

 MVP = real usable product

 Lean experimentation = test → measure → learn

 Validated learning = decisions based on real data

5. Test (Check with users)

You show the prototype to users and get feedback.

 Main tools:

 User testing → observe users using the prototype

 Feedback interviews → ask what they think
 A/B testing → compare two versions
 Usability testing → check if it is easy to use

 Then:

 improve the idea

 repeat the process

 Simple idea:
→ “Test, learn, and improve.”

Goal: check with users

Final simple summary

 Empathize → understand users (interviews, observation, personas)
 Define → identify the problem (problem statement, 5 Whys)
 Ideate → generate ideas(brainstorming, mind map)
 Prototype → build a simple solution (sketches, wireframes)
 Test → check and improve (user testing, feedback)