Improving Returns on Innovation Rathinakumar Vaidyanathan

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2 Improving Returns on Innovation Rathinakumar Vaidyanathan

3 Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle.

4 12 Years - India & USA Managed Operations Assembly & CNC Machine shop Managed Manufacturing Systems Engineering Team Business Process Reengineering TPS, Lean and QMS Cellular Manufacturing, Setup Reduction & 5 S Industrial Engineering 2 Years - Indonesia Managed Automotive Components Plant Production Planning and Control Manufacturing Systems 16 Years - Singapore Cover Asia Pacific excluding Japan Supply Chain and Manufacturing Consulting Business development & Thought Leadership

5 Agenda Innovation Introduction Why is it Critical? Innovation Process Framework Oracle Cloud Solution Innovation Management 5

6 What is common?

7 Innovation?

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9 Innovation Different Perspectives "Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It's not about money. It's about the people you have, how you're led, and how much you get it." From a 1998 interview with Fortune "We used to write this down by saying, 'move fast and break things.' And the idea was, unless you are breaking some stuff you are not moving fast enough. At Boeing, Innovation Means Small Steps, Not Giant Leaps. Company s shift reflects how the industry has changed 9 CA IT Transformation Management Copyright 2011 CA

10 Why Innovation is Critical???

11 Drive Growth Delight Customers Optimize ROI

12 Drive Growth Delight Customers Optimize ROI 86% 64% 50% World s CEOs consider Innovation critical for business Growth Strategy Source: Deloitte of companies feel that their efforts to convert ideas to product development projects were ineffective Source: Booz & Company Making Ideas Work (2012) of companies are dissatisfied with return on innovation spending Source: IDC

13 Innovation is a Major Driver of Top and Bottom Line Results

14 Ideas Starting point for the Innovation Process

15 Number of Ideas/Projects Success vs. Cost Curves for New Projects 3000 Raw Ideas 300 Submitted Ideas 125 Small Projects/ Patent Submissions Cost of Failure Success curve for substantially new products, with success rates, idea to launch, stable for the past 40 years and across countries (Research & Technology Management, May-June, 1997) (Replicated in numerous studies, PDMA 2004 and 2012) 9 Early Stage Development Efforts 1.7 Launches 1 Success NPD Stages Cycle compression increases likelihood of mistakes at each phase

16 The Innovation Gap Commercial Input (Targets, AOP s & Forecasts) + Trend Intelligence (Market, Competitive etc.) Product Portfolio Corp Strategy Right Direction Best Practices Gap Product Execution Do Things Right Right Resources Development Pipeline Resources

17 5year Plan Consumer Demand Customers Exec. Strategy Focus Groups Functional Specifications Web Portal Scoping Discussions Budget Development Pipeline Proposals Money Gate Goals & Objectives Finance Target Costs Market Studies Product Portfolio Corp Strategy Right Direction Product Execution Do Things Right Right Resources Sales & Marketing Competitive Research Product Roadmap Resources Validation? Requirements DB Prototypes ERP Legal Req s: Compliance Safety Etc. ALM Engineering IP Resources Legal Lab Notebooks Changes Customer Claims Bandwidth R&D Mfg. & Operations

18 Closing the Gap Ideas Product Portfolio Requirements Concepts Corp Strategy Right Direction Optimized ROI Portfolio Right Mix Right Roadmap Greater Alignment Better Balance Product Execution Do Things Right Right Resources Faster to Market Reduced Costs Increased Utilization Development Pipeline Resources

19 What is Innovation Management? Innovation Management is the selection and translation of the best ideas and inventions into profitable offerings for customers. The problem is not a shortage of ideas, but a breakdown in the selection and translation process, combined with the pull of the past.

20 What if you could convert the best ideas into business value faster? What if you could enable a systematic process for optimizing the investment portfolio? MARKET INSIGHTS CAPTURE, DEVELOP & PRIORITIZE IDEAS Screen GENERATE PRODUCT PROPOSALS Compare OPTIMIZE INVESTMENT PORTFOLIO Fund PRODUCT DEVELOPMENT & COMMERCIALIZATION PRODUCTS

21 Analyze a 360 View of Dimensions Across stakeholders Investment Mix ROI, Budget & Resources Supply Chain Product Strategy Company Strategy Customer Requirements Eliminates disparate systems for collaboration and content Roadmap

22 All Industries Focused on Innovation Retail Consumer Goods High Tech Automotive Pharma/Bio Tech Aerospace Services Industrial Manufacturing Energy Health Sciences Education & Research Engineering & Construction

23 Innovation Management Available as cloud solution

24 Single Source of Truth driving end to end Innovation Process

25 Get the Best Ideas..to Market Faster

26 Get the Best Ideas..to Market Faster 1 Single repository for all types of ideas VOLUME 4 Voting 5 VELOCITY 2 2 Rich Text Downstream artifacts or inputs (e.g a9) VARIETY 3 Which partners suggested? Capture great ideas, trace to downstream process artifacts

27 Evaluate and Communicate the Business Case 4 Tabs for Cash Flow, Resource Needs, Additional information (artifacts) 1 Business Case 5 Relevant Information beneficial to crossfunctional teams 3 Social Collaboration 2 Business Strategy Align stakeholders on the assumptions, strategy, justification

28 Determine the Best Portfolio Investments to Commercialize 1 Establish Top Level Objectives Analyze against top line growth strategies 28

29 Determine the Best Portfolio Investments to Commercialize 2 Create scenarios 3 Add new proposals Analyze new proposals or combine with in-play proposals 29

30 Determine the Best Portfolio Investments to Commercialize 4 Compare Proposals for Technical Risk, Reward,Product Positioning 30

31 Determine the Best Portfolio Investments to Commercialize 5 Compare Proposals for strategic fit to objectives Compare Proposals against top line growth strategies 31

32 Determine the Best Portfolio Investments to Commercialize 6 Compare Proposals for strategic fit to objectives & probability of Success Analyze against top line growth strategies 32

33 Determine the Best Portfolio Investments to Commercialize 7 Compare Proposals Resource Pool Needs vs Capacity Analyze against bottom line constraints 33

34 Determine the Best Portfolio Investments to Commercialize 8 Traceability to conversations, decisions & decision criteria Traceability to Decisions and Decision Criteria 34

35 What if you could convert the best ideas into business value faster? What if you could enable a systematic process for optimizing the investment portfolio? MARKET INSIGHTS CAPTURE, DEVELOP & PRIORITIZE IDEAS Screen GENERATE PRODUCT PROPOSALS Compare OPTIMIZE INVESTMENT PORTFOLIO Fund PRODUCT DEVELOPMENT & COMMERCIALIZATION PRODUCTS

36 Define and Right-Size the Requirements 1 Intuitive User interface 5 Social 2 4 Versioning Requirement attribute values 3 Rich Text Definition, collaboration, fulfillment Requirements as a team sport

37 Manage Requirement Changes Scope Creep Spec is looking an older version 6 Identify and respond to changing specifications identify Scope Creep

38 Align Stakeholders with a Shared View of Requirement Status 7 Drill through charts (priority, status) 7 Out of the box analytics easily extended 38

39 Graphical Analysis of Requirements Relationships Cross object, attribution filtering 8 Identify Impact of Unfulfilled Requirements 39

40 Drill through Visual Information Navigator Social 9 Investigate issues all connected 40

41 Translate Requirements into Concepts 2 Design Re-use 4 Connected to business case 3 Alternate Designs 1 1-click to details Shared view of Requirements while Concept is developed

42 Analyze Concepts against Target Costs 5 Alternate Designs measured to targets 6 Design Re-Use Analyze supply chain metrics & requirements fulfillment

43 Translate Requirements into Concepts Supply Risk 7 Requirement Risk 8 Analyze concept at any level

44 What if you could convert the best ideas into business value faster? What if you could enable a systematic process for optimizing the investment portfolio? MARKET INSIGHTS CAPTURE, DEVELOP & PRIORITIZE IDEAS Screen GENERATE PRODUCT PROPOSALS Compare OPTIMIZE INVESTMENT PORTFOLIO Fund PRODUCT DEVELOPMENT & COMMERCIALIZATION PRODUCTS

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