This document summarizes the results of a survey of over 500 product development leaders, including nearly 100 from medical device manufacturers, regarding their innovation management maturity and practices. The survey assessed companies on a maturity scale across three dimensions: people, processes, and tools. For medical device manufacturers, most companies reported being at level 3 maturity overall, with stronger maturity in processes than people or tools. The survey also identified common pain points, risks, and barriers to effective innovation management. Based on the results, the document provides recommendations to help companies improve in areas like strategic alignment, use of data, and developing an innovation-supportive culture.

1. The State of Product Development in 2013
Medical Device Manufacturers: A Need for Speed and a
Roadmap to Sustainable Innovation
© 2013 Planview, Inc. | 1
Maureen Carlson,
Appleseed Partners
Carrie Nauyalis,
| Confidential
Planview
#StateofPD

2. Welcome & Introductions
Maureen Carlson
Chief Researcher,
Appleseed Partners
Carrie Nauyalis
NPD Solution Evangelist,
Planview
© 2013 Planview, Inc. | 2
| Confidential
#StateofPD

3. Agenda
•
•
•
•
•
•
About the Study
New: Innovation Management Maturity Model
Current State and Trends
Desired Future State
The Four Missing Elements
Recommendations & Next Steps
© 2013 Planview, Inc. | 3
| Confidential
#StateofPD

4. Study Background
Who?
How?
Why?
“Too many projects for
our resources!”
Need for Faster
Innovation
To learn about the
state of product
portfolio management,
innovation and trends
© 2013 Planview, Inc. | 4
| Confidential
Fourth Benchmark
Survey since 2009
conducted by
Appleseed Partners
and OpenSky Research,
commissioned by
Planview. Initial phone
survey that informed
an online survey
conducted in August‐
September, 2013
#StateofPD
Surveyed more than
500 globally‐based
Product Development
Leaders. Today, we
focus on nearly 100
participants from
Medical Devices
Industry!

5. New Data, New Perspectives
What do you
want to learn
this year?
© 2013 Planview, Inc. | 5
| Confidential
#StateofPD

6. What is the difference on
pain points, business risks,
productivity and
commercial success for the
most mature companies
compared with the least
mature companies?
© 2013 Planview, Inc. | 6
| Confidential
#StateofPD

7. Ranking on Innovation Management
Maturity: 3 Vectors
People
Processes
Tools
© 2013 Planview, Inc. | 7
| Confidential
• Organization Structure
• Center of Excellence to Manage
Innovation
• Commercialization Process
• Stage Gate® or Phase‐Gate Process
• Ideation through Prioritization; and
Launch to Sunset
• Automating with Best of Breed
Applications
• Integrated Tools across the Enterprise
#StateofPD

8. Part I
CURRENT STATE:
INNOVATION MANAGEMENT MATURITY
© 2013 Planview, Inc. | 8
| Confidential
#StateofPD

9. © 2013 Planview, Inc. | 9
| Confidential
#StateofPD

10. Innovation Management Maturity Model
PEOPLE
PROCESS
Level 1
Level 2
Level 3
Level 4
Level 5
© 2013 Planview, Inc. | 10
| Confidential
#StateofPD
TOOLS

11. Innovation Maturity ̶ People
Medical Device Manufacturers: Which of the following best
describes the innovation maturity level of your company in terms of
PEOPLE?
9%
Level 5
13%
Level 4
30%
Level 3
35%
Level 2
13%
Level 1
N=91
© 2013 Planview, Inc. | 11
0%
| Confidential
5%
10%
15%
20%
#StateofPD
25%
30%
35%
40%

12. Innovation Maturity ̶ Process
Medical Device Manufacturers: Which of the following best
describes the innovation maturity level of your company in terms of
PROCESS?
10%
Level 5
18%
Level 4
40%
Level 3
24%
Level 2
9%
Level 1
N= 91
© 2013 Planview, Inc. | 12
0%
| Confidential
5%
10%
15%
20%
#StateofPD
25%
30%
35%
40%

13. Innovation Maturity ̶ Tools
Medical Device Manufacturers: Which of the following best
describes the innovation maturity level of your company in terms of
TOOLS?
2%
Level 5
19%
Level 4
45%
Level 3
23%
Level 2
11%
Level 1
N= 91
© 2013 Planview, Inc. | 13
0%
| Confidential
10%
20%
#StateofPD
30%
40%
50%

14. Innovation Maturity ̶ Overall
Medical Device Manufacturers: How would you rate your
company’s OVERALL maturity level?
1%
Level 5
19%
Level 4
43%
Level 3
31%
Level 2
7%
Level 1
0%
5%
10%
15%
20%
25%
N= 91
© 2013 Planview, Inc. | 14
| Confidential
#StateofPD
30%
35%
40%
45%

15. Part II
CURRENT STATE:
PAIN POINTS & RISKS
© 2013 Planview, Inc. | 15
| Confidential
#StateofPD

16. Pain Points
© 2013 Planview, Inc. | 16
| Confidential
#StateofPD

17. Risks
What are your greatest risks when managing a product portfolio?
(Rank in order of top 3)
Time to market – i.e. missing competitive or
seasonal windows
60%
58%
Unclear priorities as business conditions change
Not meeting the expected revenue targets of the
product
53%
Missing the voice of the customer/market
requirements and developing the wrong product
N=91
© 2013 Planview, Inc. | 17
48%
0%
| Confidential
#StateofPD
10%
20%
30%
40%
50%
60%
70%

18. Risks
© 2013 Planview, Inc. | 18
| Confidential
#StateofPD

19. Part III
CURRENT STATE:
STRATEGIC PLANNING, DATA, CULTURE
© 2013 Planview, Inc. | 19
| Confidential
#StateofPD

20. Strategic Planning
What is your most pressing concern with regard to managing
your product portfolio?
“Having alignment established across a matrix organization quickly
and sustainably as priorities change and resources allocations
evolve to meet changing environment”
“Lack of strategy/alignment to resources”
“Expediting time to market and having good decision making
criteria for prioritization”
© 2013 Planview, Inc. | 20
| Confidential
#StateofPD

21. Data
Is your company killing products early enough in the
commercialization process?
I don't know
22%
No
53%
Yes
25%
N=91
© 2013 Planview, Inc. | 21
| Confidential
#StateofPD

22. Data
Is your company killing products early enough in the commercialization process?
(By Maturity Level)
100%
15%
17%
32%
80%
56%
60%
44%
I don't know
No
53%
Yes
40%
39%
20%
28%
15%
0%
Level 1&2 (N=34)
Level 3 (N=39)
Caution: small sample sizes. Data is directional only.
© 2013 Planview, Inc. | 22
| Confidential
#StateofPD
Level 4&5(N=18)

23. Data
Why isn’t your company killing more products or projects during the
commercialization process? (Select top 3)
58%
Lack of rigor in determining highest return, highest value
products
42%
48%
Kill criteria is unclear or nonexistent
47%
40%
Gated process is driven by personality instead of data
33%
30%
27%
Opportunity costs are not clear
29%
0%
20%
Caution: small sample size for Medical Device Manufacturers.. Data is directional only.
| Confidential
ALL PARTICIPANTS (N=280)
31%
Everything passes approval due to an undefined strategy and
supporting metrics
© 2013 Planview, Inc. | 23
MEDICAL DEVICE
MANUFACTURERS (N=48)
#StateofPD
40%
60%

24. Data
Which of the following best describes your access to accurate
data necessary to make product decisions?
18%
We have immediate access to accurate data
We have access to data, but it is not timely or
current
19%
We have access to data, but it can be inaccurate
for various reasons
53%
11%
We do not have access to data
0%
Other
0%
N=91
© 2013 Planview, Inc. | 24
| Confidential
10%
#StateofPD
20%
30%
40%
50%
60%

25. Data by Maturity Level
Which of the following best describes your access to accurate data
necessary to make product decisions?
(By Maturity Level)
We have immediate access to
accurate data
44%
10%
12%
17%
We have access to data, but it is not
timely or current
3%
31%
28%
We have access to data, but it can be
inaccurate for various reasons
68%
0%
0%
0%
Other
0%
50%
Caution: small sample sizes. Data is directional only.
| Confidential
Level 4&5(N=18)
Level 3 (N=39)
Level 1&2 (N=34)
11%
8%
18%
We do not have access to data
© 2013 Planview, Inc. | 25
51%
#StateofPD
100%

26. Data
Why is data inaccessible or inaccurate to make product decisions? (Select all
that apply)
55%
Information is in silos, not centralized
40%
Lack of consistency on metrics definition
37%
Lack of ownership for reporting and analytics
35%
Lack of robust technology, reliance on spreadsheets
0%
10%
N=75
© 2013 Planview, Inc. | 26
| Confidential
#StateofPD
20%
30%
40%
50%
60%

27. Part IV
FUTURE STATE
© 2013 Planview, Inc. | 27
| Confidential
#StateofPD

28. Future State: Innovation Management
Maturity
Medical Device Manufacturers: Which of the following best describes your
company’s end goal in terms of desired innovation maturity level?
Don't know
18%
Level 5
24%
Level 4
29%
Level 3
14%
Level 2
8%
No desire to advance
8%
0%
5%
10%
N=91
© 2013 Planview, Inc. | 28
| Confidential
#StateofPD
15%
20%
25%
30%

29. Part V
THE FOUR MISSING ELEMENTS
© 2013 Planview, Inc. | 29
| Confidential
#StateofPD

30. The Four Missing Elements
1. A Defined Pathway
2. Strategic Alignment
3. Data
4. Culture
© 2013 Planview, Inc. | 30
| Confidential
#StateofPD

31. Part VI
RECOMMENDATIONS & NEXT STEPS
© 2013 Planview, Inc. | 31
| Confidential
#StateofPD

32. Recommendation #1:
THE TRUTH WILL SET YOU FREE
© 2013 Planview, Inc. | 32
| Confidential
#StateofPD

33. Recommendation #2:
STRATEGICALLY DEFINE THE DESTINATION
© 2013 Planview, Inc. | 33
| Confidential
#StateofPD

34. Recommendation #3:
THREE REALLY IS THE MAGIC NUMBER
© 2013 Planview, Inc. | 34
| Confidential
#StateofPD

35. Recommendation #4:
CULTURALLY ENCOURAGE INNOVATION
© 2013 Planview, Inc. | 35
| Confidential
#StateofPD

36. Recommendation #5:
A CALL TO ACTION FROM THE TOP
© 2013 Planview, Inc. | 36
| Confidential
#StateofPD

37. Assess Your Company Using the
Innovation Management Maturity Model™
PEOPLE
PROCESS
Level 1
Level 2
Level 3
Level 4
Desired End Game
Level 5
© 2013 Planview, Inc. | 37
| Confidential
#StateofPD
TOOLS

38. Next Steps & Additional Resources
• Questions? ProductPPM@planview.com
• Download: Planview.com/4thReport
• Assess: www.planview.com/InnovationModel
• Subscribe: www.TheProductPulse.com
• Connect:
Strategic Portfolio Management Group
Product Portfolio Management Group
• Contact : carrie@planview.com @PDPMprincess
mcarlson@appleseedpartners.com @mocarlson
© 2013 Planview, Inc. | 38
| Confidential
#StateofPD

39. … And Finally
© 2013 Planview, Inc. | 39
| Confidential
#StateofPD