Agile project management and the creation of intellectual property

As organizations seek new management approaches to speed their response to changing conditions in their environments, organizations find difficulties knowing how to create and manage the development of intellectual property using an agile project management (APM) approach. Organizations also find difficulties developing a flexible capability for innovating and collaborating with others in a fast-paced knowledge-based economy. In this dissertation, the author used an evidence-based research method to examine the literature on APM and the alternate approaches for creating and managing intellectual property. Intellectual property includes copyrightable material and inventions (patents), knowledge assets, and other intangibles. The author also used an expert panel to increase its validity. Findings from this study reveal evidence on intellectual property projects involving APM, such as computer software and training materials. In this study, the author also found insufficient empirical research on the subject of APM. Little evidence on the creation and management of intellectual property was found outside the computer software industry. This study advances knowledge on APM and proposes a theoretical, improved model for APM that can be applied to the creation and management of any type of intellectual property and other intangibles. The grounded theory for an improved model is based on concepts distilled from the literature, such as learning environments, innovation networks, and agile methods. The study also introduces a new discipline for the effective implementation of an improved APM system, encouraging a creative, dynamic, and systematic approach to manage agile projects: Craftgeneering all at once.Agile Project Management and the Creation of Intellectual Property by Winston Gonzalez A Thesis Submitted to the Graduate Faculty of University of Maryland University College in Partial Fulfillment of The Requirements for the Degree of Doctor of Management DMGT 892, James P. Gelatt, Ph.D., and Kathleen F. Edwards, Ph.D. DMGT 891, John R. Glennie, DBA DMGT 890, Michael A. Evanchik, Ph.D. Dissertation Committee: James P. Gelatt, Ph.D. Kathleen F. Edwards, Ph.D. August 16 2011 Agile Project Management Abstract As organizations seek new management approaches to speed their response to changing conditions in their environments, organizations find difficulties knowing how to create and manage the development of intellectual property using an agile project management (APM) approach. Organizations also find difficulties developing a flexible capability for innovating and collaborating with others in a fast-paced knowledge-based economy. In this dissertation, the author used an evidence-based research method to examine the literature on APM and the alternate approaches for creating and managing intellectual property. Intellectual property includes copyrightable material and inventions (patents), knowledge assets, and other intangibles. The author also used an expert panel to increase its validity. Findings from this study reveal evidence on intellectual property projects involving APM, such as computer software and training materials. In this study, the author also found insufficient empirical research on the subject of APM. Little evidence on the creation and management of intellectual property was found outside the computer software industry. This study advances knowledge on APM and proposes a theoretical, improved model for APM that can be applied to the creation and management of any type of intellectual property and other intangibles. The grounded theory for an improved model is based on concepts distilled from the literature, such as learning environments, innovation networks, and agile methods. The study also introduces a new discipline for the effective implementation of an improved APM system, encouraging a creative, dynamic, and systematic approach to manage agile projects: Craftgeneering all at once. Agile Project Management Keywords: Agile Project Management, Intellectual Property, Agile Methods, Agility, New Product Development, Learning Organization, Innovation Networks, Craftgeneering ©Copyright by Winston Gonzalez 2011 ii Dedication To Patricia, Zeenat, Winston Jr., and Joshua for their support, love, and understanding during this doctoral journey Agile Project Management iii Acknowledgments Several individuals played an important role during the author’s doctoral journey. Dr. Michael A. Evanchik was instrumental in guiding the initial research and the development of theoretical frameworks for this dissertation. The theoretical framework was revised under the guidance of Dr. James (Jim) Gelatt. Dr. Evanchik also provided insight into innovation networks. Dr. David F. Rico offered a professional courtesy by providing significant insight on agile methods. Fellow doctoral students provided important feedback during peer reviews. The author also thanks Kathleen O’Connor of Quality Editing for her expert work on APA compliance. The members of the expert panel were very helpful during the evaluation of the draft dissertation: Dr. David F. Rico, Dr. James J. Stewart, Sanjiv Augustine, Kashif A. Khan, and Marlon Christie. Their feedback was very valuable to the study of intellectual property and agile project management (APM). The Ravens Group, Inc., under the leadership of Joe N. Ballard, LTG, U.S. Army (retired), provided an onsite opportunity to explore and learn the APM concepts with Marlon Christie. Mr. Christie shared his professional experience in APM during an onsite interview. Sanjiv Augustine also participated in an interview sharing grounded real life applications of APM from his own practice. The author’s doctoral journey reached its completion state with the unlimited guidance, wisdom, dedication, and thorough review from excellent educators such as Dr. James P. Gelatt and Dr. Kathleen F. Edwards. To all: Thank you! Agile Project Management iv Table of Contents Abstract.............................................................................................................................. ii Acknowledgments ............................................................................................................. iii Appendices .........................................................................................................................vi Tables............................................................................................................................... vii Figures ............................................................................................................................. viii List of Acronyms ................................................................................................................ix Chapter 1: Introduction........................................................................................................1 Statement and Significance of the Problem.............................................................2 Importance to Management .....................................................................................3 Research Purpose, Originality, and Scope...............................................................4 Research Questions, Warrant, and Assumption ......................................................5 Thesis.......................................................................................................................7 Organization of the Dissertation..............................................................................7 Chapter 2: Literature Review.............................................................................................10 Intellectual Property...............................................................................................11 Product Development ............................................................................................40 Project Management ..............................................................................................50 Agile Project Management ....................................................................................73 Innovation............................................................................................................131 Theoretical Lenses and Research Propositions....................................................160 Chapter Summary ................................................................................................165 Chapter 3: Conceptual Framework..................................................................................166 Graphical Analysis and Synthesis .......................................................................166 Integration of Scholarship into the Framework ...................................................177 Towards and Improved Model for Agile Project Management...........................181 Chapter Summary ................................................................................................185 Chapter 4: Methodology..................................................................................................187 Theory and Practice of Evidence-Based Research ..............................................187 Scholarly Research Evidence ..............................................................................199 Chapter Summary ................................................................................................200 Chapter 5: Analysis and Discussion ................................................................................201 Findings ...............................................................................................................201 Analysis ...............................................................................................................209 Chapter Summary ................................................................................................219 Agile Project Management v Chapter 6: Conclusions and Implications for Management ............................................220 Overall Conclusions.............................................................................................220 Implications for Management..............................................................................223 Implications of Trends.........................................................................................227 Limitations and Future Research.........................................................................229 Chapter Summary ................................................................................................232 References.......................................................................................................................234 Agile Project Management vi Appendices A Evaluation Forms and Unstructured Interview Instruments ........................250 B Discussion of Experts Feedback and Actions Taken ...................................291 C A Meta Ethnography Synthesis of the Research Question ..........................297 D Level of Evidence Reviewed in Chapter 2...................................................306 Agile Project Management vii Tables 1 History of Agile Project Management..........................................................91 2 Phases of the Agile Project Management (APM) Framework Model........110 3 Skills Matrix Showing a Cross-Reference to Desired Traits in Agile Team Members ...........................................................................................118 4 Levels of Evidence in Management Research Comparable to Medical Research......................................................................................................189 5 Expert Panel................................................................................................195 6 Third Level Interpretation on Theoretical Constructs ................................198 7 Summary of Findings .................................................................................204 8 A Comparison between Innovation Models and Agile Project Management Systems as Organizational Innovation Models.....................211 9 Task Management Comparison in the Context of the Stages of Innovation...................................................................................................213 10 Comparison between Agile and Traditional Project Management.............215 Agile Project Management viii Figures 1 Comparison of Project Management Strategies. ........................................104 2 The APM Model as Complex Adaptive System (CAS). ............................108 3 A Customized Set of Practices For XP as an Agile Method.. ....................109 4 The Agile Project Management (APM) Framework Model.......................109 5 The Scrum Model as an Alternate Agile Method to Traditional Project Management. ..............................................................................................111 6 The Traditional Project Management (PM) Model: PMI’s Process Groups.........................................................................................................113 7 A Learning Model to New Product Development......................................115 8 The Project Economic Framework .............................................................128 9 Sequential Stages of a Current Innovation Model......................................143 10 Alternate Stages of Innovation.. .................................................................144 11 The New Product And Process Development (NPPD) Model ...................147 12 Closed Innovation Model System With Stage-Gates.. ...............................149 13 Open Innovation Model System With Stage-Gates....................................151 14 Proposed Agile Project Management System Model. ................................172 15 Inputs. .........................................................................................................173 16 The Learning Organization as an Agile Process.........................................175 17 Organization Design, Functions, Characteristics, And Enablers................176 18 Outputs........................................................................................................177 19 Craftgeneering: A New Discipline for Agile Project Management............182 Agile Project Management ix List of Acronyms APM – agile project management APM – Association of Project Management ASD – Adaptive Software Development CAS – complex adaptive systems DSDM – Dynamic Systems Development Method EBMgt – evidence-based management ENAA – Engineering Advancement Association FDD – Feature-Driven Development FEI – front-end of innovation FFE – fuzzy front end ERP – enterprise resource planning system GDP – gross domestic product IED – ideal engineering days IPRs – intellectual property rights IRNOP – International Research Network Organizing by Projects NCD – new concept development NPPD – new product and process development OECD – Organization for Economic Cooperation and Development PDM – product data management PLM – product life-cycle management PMI – Project Management Institute PMLC – search and development RBV – resource-based view RPMN – Rethinking Project Management Network SCA – sustainable competitive advantage SCM – supply chain management system SMEs – small- and medium-sized enterprises TOC – theory of constraints TRIPS – Trade-Related Aspects of Intellectual Property Rights WIPO – World Intellectual Property Organization XP – eXtreme Programming Agile Project Management 1 Chapter 1: Introduction Agile project management (APM) is a modern and innovative approach to product development that has been in practice in the computer software industry for the last decade. APM offers organizations the benefit of being nimble. APM also offers organizations the flexibility to adapt to change in product requirements and the opportunities for innovation during the creation and management of intellectual property such as computer software products. The author of this dissertation considers APM as a different way of thinking about managing change and about meeting the challenges of innovation in a knowledge-based economy; predominantly, challenges that arise during the creation and management of intellectual property (intangibles). Literature from practitioners and scholars suggests that APM is about adapting quickly to changing requirements, fostering innovative solutions (products or services), leading people into action through self-organized teams, and delivering a result that is acceptable to the customer on an iterative basis. However, the gaps in the literature on traditional and APM signal a difficulty in understanding how to manage intellectual property in a larger: the context of a knowledge-based economy. The following sections discuss the problem, the purpose, and the importance of the study of APM, and how practitioners and organizations can build on this knowledge. Chapter 1 introduces concepts relevant to the study as an overview. Chapter 2 provides detailed discussions on the concepts and authors referenced. Agile Project Management 2 Statement and Significance of the Problem The problem addressed in this dissertation is that many organizations lack the know-how to manage the creation of their intellectual property using an agile approach. In addition, often organizations might not know how to leverage knowledge and how to maximize their potential in their own business environment with a quick response. In a knowledge-based economy that depends on the commercialization of intellectual property (Simmie, 2003), organizations can also miss out on business opportunities when they cannot respond quickly to the changing conditions of their environments (Koen et al., 2001). For example, knowing how to create and manage intellectual property can be challenging for many organizations. Another challenge is determining which approach to use for the new product development (NPD) and how to manage efficiently projects that involve intellectual property. The problem of creating and managing intellectual property is significant when coupled with the fact that only a few world economies lead the way for economic growth and innovative activity. For example, the World Intellectual Property Organization (WIPO, 2009) reported in 2007 that 52.9% of the patent filings came from the top three countries with the largest budgets in research and development (R&D) and gross domestic product (GDP): China, Japan, and the United States of America. Porter (2003) asserted that patents represent an important measure of economic performance; but, among many measures, the region’s overall average wage and the standard of living could also be used to represent economic performance. Nevertheless, a generalization from Porter’s (2003) discussion of the economic performance of regions stands out: “Patents are the best available measure of innovative activity across all regions” (p. 550). At the same time, not all the patent systems from different countries account for all the Agile Project Management 3 innovative activity; nor do these imply that only the organizations from those countries know how to manage the innovation and the creation of their intellectual property. Organizations lacking the know-how are at a disadvantage for they might not know how to leverage knowledge as a functional resource (Alvesson, 2001) and how to take advantage of modern, alternate approaches to innovate and manage their intellectual property. Simmie (2003) asserted, “Knowledge is used to generate world leading innovations” (p. 611) in virtuous circumstances where the continued success of economies relies on the production of knowledge and the commercialization of innovations. Importance to Management This research is important to the study of management because it helps understand the application of new management approaches such as APM. Organizations looking at how to be successful in the management and creation of their intellectual property would also benefit from understanding the importance of implementing a dynamic organizational system, using quick-thinking methods (agile methods), applying concepts from a learning organization, leveraging alliances and innovation networks, maximizing the value of intellectual property, and adopting effective, APM approaches. APM is important to the development of intellectual property for a number of reasons. First, the APM approach can help manage the development of intellectual property in a fast, adaptive manner using a learning environment where knowledge is exploited and leveraged to produce the result. Second, APM gives organizations the opportunity to develop a core capability as a competitive advantage. Third, APM is also important to the management of innovation because its working environment helps Agile Project Management 4 facilitate open communication, creativity and collaboration among people (Highsmith, 2004). Results produced in the form of intangible assets (copyrightable material, patents, and knowledge assets) are difficult for competition to imitate, are costly and risky to create, can generate revenue, can help save costs, and can help the organization sustain a competitive advantage (see chapter 2; Kaplan & Norton, 2004). Evidence from Schwaber’s (2004) case study described how the MegaFund Systems Company solved a business problem using an APM approach called scrum (p. 69). Schwaber defined scrum as an agile method for project management that is based on inspection (review of progress) and adaptation of incremental changes with frequent product deliveries. APM implementations have used self-managing teams for learning, solving problems, collaborating