IpOp model is a strategic management approach for pre-project analysis suitable for innovation management and corporate entrepreneurship. Besides guiding innovators on how to analyze an opportunity, it explains how to draft an opportunity case or a business plan to let decision-makers, such as investors, or management, assess the merits of the opportunity.
History
The IpOp model was initially developed by Raphael H. Cohen, academic fellow and academic director for 20 years of the Entrepreneurial Leadership program at the University of Geneva, to help companies in their innovation management. It was first presented in 2006 in Concevoir et lancer un projet, a French book that has been later translated into English and Spanish. IpOp stands for "Innovation per Opportunities” or how to innovate by seizing opportunities. The latest version of the book was published in 2016 and contains an improved version of the IpOp Model. In 2011 the 2006 version of the model was presented in Cohen's book Winning Opportunities, proven tools for converting your projects into success (without a business plan).
Overview
Description
The IpOp model is a project analysis and decision-making tool. It provides a framework to analyze and assess the benefits and feasibility of projects at the pre-project stage. IIt assumes that a more rigorous analysis at the pre-project stage helps better allocate resources. The claim is that proper early-stage calibration of projects will avoid wasting resources on projects that should not be undertaken or take more time and resources than expected. The IpOp model uses a generic decision tree to help decision-makers better manage their resources.
To achieve this early calibration, the IpOp model highlights the need to catalog as many unknowns as possible as early as possible. This early stage is called “pre-project”. It focuses on defining the unknowns that are missing information that may realistically be obtained. Identifying the unknowns leads to a more accurate estimate of the resources required to reduce key unknowns. The IpOp model has been designed to guide the innovators’ analysis to identify as many unknowns as possible and obtain relevant answers to decision-makers’ concerns. It also shows the complex interactions between all parameters that need to be considered in a project.
To be aligned with the logic of the IpOp decision tree for decision-makers Raphael H. Cohen suggests replacing the business plan by a two-parts approach:
An opportunity case answering the main questions of decision-makers without going into operational details. As it addresses the “what”, the “why”, the “how much” and the “when” with high-level information but not the “how”, it allows decision-makers to know if the project is worth their attention and if they should consider its implementation. An action plan which complements the opportunity case and explains how the project will be implemented. This “how” that is only relevant if the decision-maker is interested in proceeding does not repeat the justification stated in the opportunity case.
IpOp model decision tree
According to Moses, on average, decision-makers use six different criteria to evaluate projects, with a minimum of 3 and a maximum of 9 parameters. The IpOp model decision tree consists of 11 questions where the left column mentions where the answer to each question/decision criterion can be found in the IpOp model. In contrast, the right column indicates what the decision-makers should do if the answer is negative. Any organization can use this decision tree as a starting point and adapt it to its own circumstances and industry. More specific questions can be added to check the strategic fit. The author claims that using the IpOp model decision tree adds rigor to project management governance, especially in the pre-project stage.