Electronic Products and Solutions GroupCompany ConfidentialEPS Strategy. ppt 1 I. Introduction

1Electronic Products and Solutions Group Company Confidential EPS Strategy. ppt

I. Introduction


Message from Byron AndersonRegarding EPS strategy and structure

The following represents a tremendous amount of work by the GMs, the Group Staff, Ned Barnholt and myself-- working with information from across the organization

I am extremely excited about the potential these changes in our business strategy and organization structure hold for us.

I’m confident that transitioning to this new era will ensure our business success.

As you become familiar with the concepts in this presentation, I believe you will share my enthusiasm and optimism.

We had the following broad objectives as we developed these plans. ..


Objectives

Higher growth Greater focus on customers Faster and better execution Grow new leadership Be heard as one voice by customers Improve factory-field connectedness Create more leverage across technologies Capitalize on a worldwide order fulfillment

strategy


Message from Byron Anderson (cont’d)

I realize many concepts in this presentation are new to you. We are truly breaking new ground

You may have many questions that we don’t have answers to right now

Today’s announcement is just the beginning--much more work to develop and implement these approaches is yet to come

Many of you will be asked to help further develop our new organization structure and strategy

I will keep everyone posted as we proceed. Thanks in advance for your support


Presentation Outline

I. Introduction

II. The Need for Change

III. How We Will Win

IV. Organized for Success

V. The Board of Directors

VI. How We’ll Go Forward

VII. Concluding Remarks

VIII. Functional Roles and Strategies- R&D- Order Fulfillment- Marketing


II. The Need for Change


EPS EnvironmentHow is our relationship to Customers changing?

Relationship Characterized by Supplier Power

Relationship Characterized by Customer Power

Customers Want:GP >90%Applic Specific: <10%

Uniform needs met with GP solutions

Technology-dominated needs

Customers are vertically integrated

Customer’s clock and HP’s clock synched

Business and support needs increasing

Non-core activities outsourced

Customer’s clock 2X - 4X our clock

Diverse/complex needs require tailored solutions

Customer’s industries become “consumerized”

Looking for strategic partnerships

Must meet customer’s critical timing requirements

50%50%

30%70%

PAST NOW FUTURE


EPS EnvironmentHow is the nature of our Competition changing?

Competitors are gaining share in some businesses

WW through alliances and acquisitions

Technology commercially available

Existing ???orEmerging Competitors ??? (i.e., Cadence, Mentor, NI, Application Providers)

Global Reach, Local Presence via E-commerce and alliances

More Services and Support with Custom Solutions

• Consolidating• Collaborating• Custom Solutions

for Key Customers

• Cherry Picking

Small, Niche Competitors

Best in Local Regions

TM Technology Followers

PAST NOW FUTURE


EPS Business Situation

Opportunistic Collaboration

Large Teams, Uneven Performance

Product --> Market Driven by Part-time Planners

Structural Collaboration

Small Teams with Sustained Infrastructure Support

Market --> Customer Driven with Full-time Solution and Product Planner as Core Competency

Small, Independent Teams

Small Teams, Strong Performance

Next Bench New Product Approach

PAST NOW FUTURE

How have we adapted to the changing environment in terms of …

… the Work Structures we use


EPS Business SituationHow have we adapted to the changing environment in terms of …… the role of Technology in our success formula

In Transition

Largely Commercially Available

HW --> FW --> SW

Whole Product Design

Systems/Solutions Defined by Customer

Standards and Consortiums (speed and cost are key)

Application SW Dominates

Services and Whole Solutions Dominate (partner to get them)

Critical Advantage at Device and Circuit Level

HP had In-house Leading Technologies

HW Design Our Strength

Do It/Invent It Ourselves

PAST NOW FUTURE


EPS Business SituationHow have we adapted to the changing environment in terms of …… the Messages We Communicate to our customers

A Few Multi-Division Initiatives, 10% of Funds

Consolidated and Focused Outbound

Many Independent Product Messages:

PAST NOW FUTURE

• Creating Noise• Not Rising

Above Noise

• Big and Bold Messages

• Own a Position• Consistent and

Sustained


EPS Business SituationHow have we adapted to the changing environment in terms of …… the methods used by our Field Organization

• Talk about Customer Centric, but still FE Centric

• No Common Vision for C2

Customer Centric

Integrate One-to-One and E-Commerce

FE Centric

Small Teams, Strong Performance

Competitive Selling Only

PAST NOW FUTURE

Starting the Transition -- Call Centers, Inside FEs

• Transactional• Competitive• Strategic


EPS Business SituationHow have we adapted to the changing environment in terms of …… the role of Services in our success formula

PAST NOW FUTURE

• Few Services Not Connected to Products/Markets/ Customers/ Businesses

• Integrated Service/ Product Offerings

• Focused on Customer Needs by Markets

• Source of Major Competitive Advantage

• A Few Services by Businesses

• Too Many Profit Centers

• Soft Products Undervalued and Undermarketed


EPS Business SituationHow have we adapted to the changing environment in terms

of … … the ways we Create New Business

PAST NOW FUTURE

• Staff Below Critical Mass, Not Always the Best Team

or• Too Many People,

Too Soon

or• Too Many Start-

ups in Too Many Places

• Alliances/Acquisitions to get Early Start in New Ventures

• First Team with Right Support

• Disciplined BoD Lead Process:- Qualified

Opportunities- VC Approach- Rigorous

Reviews with Milestones

• Have Stopped Most All New Business Start-ups

• Must Protect Base First

• Hung Up on Inventing Ourselves


III. How We Will Win


Our Strategic Approach

Build on our strengths

Leverage our size

Focus on customers and follow

the money

Build needed competencies

Evolve our Strategy and Organize for Success

-- over and over again


Build On Our Strengths

Broadest product offering

Worldwide presence

Leadership and expertise in measurement

Reputation for quality


Leverage Our Size

Lead the development of standards

Greatest market insight

Harness economies of scale

Be a “market maker”


Focus on Customers and Follow the MoneyEPS Customer/Market Model

R&D

MFG

SUPPORT

CUSTOMER

INDUSTRIESCUSTOMER JOBS

General Purpose Instruments/Platforms

RF & Digital Design

RF & MW Component Testing

PROVIDERS NETWORKEQUIPMENT

AEROSPACE/DEFENSE

RF AND MWCOMPONENT

MFGRS

COMPUTERAND DIGITAL

MFGRS

OTHERELECTRONIC

MFGRS

OTHERINDUSTRIES

MFGRS

WIRELESS


Build Needed Competencies

What we must do to grow to $5.0B

Market and Product Focus the ability to maximize business based on the intersection of both product and

market views

Timeliness, Agility, and Decisiveness in anticipating and serving markets

Excellence in Execution making the right commitments then keeping them

Portfolio Investment drive investments by the best opportunities across the business.

Leadership leaders with a broad, holistic view of business. Leaders who can lead effective

cross-boundary work in an always ambiguous environment.

Teamwork create a sense of shared destiny and reinforce teamwork across our business

We must win together...


Evolving Strategy and Organization

Build on our strengths: Position General Purpose (GP) as the

foundation for our Test & Measurement Business.

Capitalize on GP as our early entry to explore new markets.

Leverage our WW Sales and Support organizations and extend them with emerging technologies.

Develop Sustainable Leadership in Target Markets: Build strong relationships with lead

customers. Understand user needs and deliver “whole

solutions” including services Re-establish leadership in solutions for R&D

both as a key market in itself and an entry point into volume manufacturing test

“Become the Indispensable Partner to our Customer”


Evolving Strategy and Organization (cont’d)

Implement Strong Functional Strategies:In R&D: ---Centers of technology (COTs) and

focus on execution. Develop flexible, modular building blocks for fast, efficient product realization.

In Order Fulfillment: --Integrated organization to harness the “power of one” for maximum growth and margin.

In Marketing: -- Linked front/back teams focused on markets and products as a source of competitive advantage.

“Become the Indispensable Partner to our Customer”


IV. Organized for Success


The Front/Back Organization

We began developing an organizational model that addressed the key issues we’ve discussed Identified a need for customer focused organizations

that could represent the capabilities of our product divisions to diverse customer segments

We discovered that other companies had already adopted a similar approach to dealing with the same challenge This organizational model is generally referred to as a

“Front/Back Organization”



What does it accomplish? Company gains flexibility with successful execution of Front/Back

Structure Intended to deliver benefits of both market and product

structures Potential source of competitive advantage

“The customer-product structure is intended to maintain product excellence and advanced technologies in its product units while maintaining superior customer knowledge, relationships, and responsiveness in its customer units. Those who master this will gain an advantage in superior products and responsiveness to customers”. Jay Galbraith - Using Design as an

Evolutionary Change Agent


Front/Back Organizations

Channels & Support

Customer Focused Organization

Product Focused Organization

Customers

“Front”

“Back”

Basic Components

Organization focuses on multiple Customer Segments

A Sales and Support Organization is generally aligned with each customer segment

Customer Focused Organizations are aligned with Customer Segments and make up the “Front”

Product Focused Organizations are aligned with products and technologies and make up the “Back”


Front/Back OrganizationsExample of Auto Parts Manufacturer

Distributors

Home Repair

Repair Shop

OEM’s

Direct

EngineParts

Trans-mission

Drive Train

Elect-ronics

Retailers Jobbers Mfgrs

Customer Segments

Channels & Support

Customer Focused

Organizations

Product Focused

Organizations


Front/Back Organizational Success Factors

Deciding where to locate marketing

Defining clear roles and responsibilities

Managing contention

Establishing Front/Back linkages



Channels & Support

Role of the Customer Focused Organization

Product Focused Organizations

Customer Focused Organizations

Customer SegmentsObjective: Customer focus and responsiveness

Responsible for: Outbound / Inbound marketing for segment Channel planning and support Solutions planning Manages portfolio of offerings to segment Can be Profit/Loss Measurable


Front/Back Organizations Role of the Product Focused Organization

Objective:Product realization and operational excellence

Responsible for: Product Development Order Fulfillment Product Marketing Focus on key Technologies and Operational Excellence Can be Profit/Loss Measurable

Channels & Support

Product Focused Organizations

Customer Focused Organizations

Customer Segments



“Critical Linkages”

There are critical linkages between the Front and Back structures: Product definition Solutions delivery



Why are companies adopting it? A way to manage shift of power to customer in

buyer-seller relationshipBuyers are demanding more value and

responsiveness to needsMore customers adopting fewer, closer, and

longer term vendor relationshipsSome customers are looking for whole

solutions rather than individual products



Who is using it?Companies that must customize their offerings for

diverse customer segments but can not feasibly create separate product organizations to serve each segment

Examples include:

IBM Xerox GE Medical Systems Johnson Controls

Bosch Sony Acer Procter & Gamble


IBM’s Customer-Product Structure

R&D Manufacturing Marketing



Sales Service Tailored Services

Sales Service Tailored Services

Sales Service App Software

Client / Server Computing

Personal Computers

Storage Products Consumer Goods

Retailers

Financial Services

Back-end : Product Structures Front-end : Customer Structures

Source: Galbraith, 1998


EPS Organization Model

Define segments of market opportunities

Identify where customers are investing

Identify EPS’s best opportunities

Maximize potential for profitable growth

“Follow the Money”

Customer Market Opportunities

A B C


“Today, our customers live with our complexity”

Today: Solutions from many divisions to shared markets

A B C


We have created Market Solutions Units to move the Complexity Away from the CustomerA B C

A B C

A B C



•Lead customer relationships

•Channel support•Industry inbound•Solutions planning•Market segment

portfolio strategy•Product/service

sourcing•Outbound marketing

“I know my customers and

satisfy their needs”

A B C

A B C

Market Solutions Units


Again… Why We’re Doing This

Customer Focus to balance our Product Focus

Enables Excellence in Execution

Drive Investments by Best Opportunities

Productive Complexity and Much More Leverage

“Become the Indispensable Partner”


• Consolidated industry outbound creates “big and bold” focused messages in our customers’ language

• Product oriented content of outbound marketing is created in the Product Generation Unit (PGU)

• Industry inbound identifies EPS’s best segment opportunities

• Solutions planning describes the customers’ solution requirements to the PGU

• The MSU forms triad partnerships with both the PGU’s Product Planning Manager and the PGU’s R&D manager to source needed products

“Excellence with Customers”

Market Solutions Unit Details

Ou

tbound

Mark

eti

ng

Ind

ust

ry Inb

ou

nd &

Solu

tion

Pla

nnin

g

AChannel Support



•Energized and focused new product development and delivery engine

•Includes Product Marketing, Product Planning, R&D and Order Fulfillment

“We create and deliver high value

products”

Product Generation Units

A B C

A B C


•Separate product planning function reporting to GM

•R&D focused on new product development

•Product marketing aligned with outbound marketing in MSUs

•Includes supporting local order fulfillment

“Excellence in Execution”

OF

Pro

duct

Mark

eti

ng

R&

D

Pro

duct

Pla

nnin

g

Product Generation Unit Details


Leverage Our Size in the PGUs

Architecture Forum identifies flexible, reusable units of technology.

Centers of Technology(COTs) provide design leverage across the PGUs.

Worldwide OF strategies and processes increase leverage and reduce costs.

NewCo Labs’ contribution to EPS is directed by COTs to provide new technology as Phase 1 of a three-phase R&D program.

PGUI

PGUII

PGUIII

A B C

A B C

Architecture Forum

COTs

Order Fulfillment

NewCo Labs

“Power of One”


EPS Organization ModelProduct definition is a partnership between

MSU Solution PlannerPGU Product Line

PlannerPGU R&D Project

ManagerEach has a key roleEach works with the

customerMSU has lead with

customerOutbound marketing

support and solutions delivery have a similar linkage

PGUI

PGUIII

PGUIV

A B C

B C

MSU-PGU Linkages

MSUs have funds to get solutions

PGUs have funds for base platforms

Funding Model

A

PGUII


Business Strategy and Portfolio Management Processes “Link and Sync” the MSUs and PGUs

Industry Inbound, the MSU portfolio, and the PGU portfolio must be integrated into the overall EPS Business Strategy and Portfolio Management Process.

EPS Group Staff will work with the MSUs and PGUs on common processes and tools.

“Linked and Synched”

suemicha:suemicha:

Industry In bound/Solutions

Product Planning

Outbound Marketing

ESG Business Strategy and Portfolio Management Process

Product Marketing

PGUI

PGUII

PGUIII

A B C

A B C

New Co Labs

PGUIV


Electronic Products and Solutions GroupOrganizational Model

Wireless Aerospace/ Defense

Component Test

R&DOther General

PurposeElectronicMfg.

These are our initial market opportunity segments

$700M $480M $370M $820M $235M $1160M


“Opportunity Accounting”

R&D

35

15

65

Mfg

I&M

Total

Comp’t Mfgrs

45 40 30

20 5

95 55 35

A/D 65

Wireless 95

GP Other 55

R&D60

55

$250M

$340M

A/D Wireless GP Other

15 30 10 5

C/T

Other

10

25

5

40

5

35

“Opportunity Accounting” = $340M = 1.4 X Actual $’s$250M

100% ExampleOpportunity By

Segment

Comp’t Test



WirelessSolutions

Unit

Aerospace/DefenseSolutions

Unit

ComponentTest

SolutionsUnit

R&DSolutions

Unit

ElectronicMfg.

SolutionsUnit

GeneralPurposeSolutions

Unit


Component Test

R&DOther General

PurposeElectronic

Mfg.

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Measurement Product Generation UnitsFocused Product Generation Units

Pow

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EPS R&D

Worldwide Order Fulfillment


Worldwide Field Operations


Component Test

R&DOther General

PurposeElectronicMfg.

WirelessSolutions

Unit


Unit

ComponentTest

SolutionsUnit

R&DSolutions

Unit

ElectronicMfg.

SolutionsUnit


Unit


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WirelessSolutions

Unit


Unit

ComponentTest

SolutionsUnit

R&DSolutions

Unit

ElectronicMfg.

SolutionsUnit


Unit



Component Test

R&DOther General

PurposeElectronic

Mfg.

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PL12SRSD-RMSD-C/S

EMC

PL15SRSD-S

QMD/PLPN

PL9EKIO

MSD-DAQAIS

PPD PL13VIPERCATQMD

PL14PL368510RFICPL08

PL1APL17PL24

PL4W SCDASD

CTMO

Work-In-ProgressToday’s Snapshot



Electronic Products and Solutions Group

EPS MarketingMarc Saunders

Measurement PGUs

Duane Hartley

Focused PGUs

Byron Anderson

Market SolutionsUnits

Jim Rundle


Mike Gasparian

EPS R&DHans Mattes

Worldwide Order Fulfillment

Ian Ross

ControllerDale Schillinger

Human ResourcesTBH

InformationSystems

TBH

Vice President and General ManagerByron Anderson

SSVGeorge Sparks

ISSDReed Hilliard

Signal AnalysisPGU

SourcesPGU

Basic InstrumentsPGU

Component TestPGU

RF CommsPGU

Digital DesignPGU

RF/MW DesignPGU

Timing/PMC/AutoPGU

WirelessSolutions Unit

Aerosp/DefenseSolutions Unit

Component TestSolutions Unit

R&DSolutions Unit

Electronic Mfg.Solutions Unit

General PurposeSolutions Unit

Power ProductsUnit

Work-In-ProgressToday’s Snapshot


V. Board of Directors


EPS Board of Directors

Set overall EPS Business Strategy Investment Portfolio Management (product and non-product

investments) Establish and review charters for MSU’s and PGU’s Develop metrics and review performance to goals Launch and exit businesses Approve alliances and recommend acquisitions

Responsibilities

Members EPS Staff, S&M GM, MSU GMs, PGU GMs Standing and spontaneous subcommittees of the BoD formed to take

focused action.


VI. How We’ll Go Forward


May 17: Strategy/Structure Roll-out

Rest of May: Define MSU and PGU structures and select leaders

By mid-June: Identify MSU and PGU functional leadership

July 1: Start MSU and PGU situation assessment and planning for FY ‘00,

establish 18 -month EPS calendar

Mid-September: Phase I situation assessment and road mapping

complete for FY’00 Fall SCALE, processes and metrics in place

How We’ll Go ForwardObjectives: Get ready for FY’00 while meeting H2 SCALE and keeping new products on track.


VII. Concluding Remarks


Concluding Remarks

It’s important that we move ahead boldly with these changes if we are to be successful in the “brave new world.”

This will be a big change management challenge, but I’m confident that we are up to the task.

At the same time, we have to keep our customer, product, and and financial commitments.

I will keep everyone posted as we proceed. Thanks in advance for your support


VIII. Functional Roles and Strategies

- R&D- Marketing- Order Fulfillment


EPS R&D -- Strategy & Program


product design Product Generation effectiveness Effectiveness

0 1 2 3 4 5 6

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TMO R&D Concerns

DOING THE THING RIGHT DOING THE RIGHT THING



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EPS R&D Concerns -- Current State



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EPS R&D Concerns -- Current State



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EPS R&D Concerns -- Future State


OngoingOF

Support

Research Advanced Development Product Design -- Order FulfillmentRo ------ RN

MfgRamp

RecentlyIntroduced

ProductSupport

Production EngineeringHP Labs

36 MONTHS 18 MONTHS 12 MONTHS -- CYCLE TIME

MWTC

COT 1

- - -

COT N

E0 E1 E2 E3 E4 E5A0 ------ AN

PGU Product Design

GROUP

SPONSORED R&D

PROCESS

SHARINGOF Processes

EPS

ARCHITECTURE

FORUM

MSU Inbound Marketing

PGU Product Line Planning

COMMERCIAL

SOURCES

UNIVERSITY

SOURCES

EPS R&D Operations -- Future State


EPS R&D Strategy -- Center of Technology alternativesDSP HardwareDSP Software (inc. protocol stacks)Local OscillatorsDevelopment ProcessesData Management & DisplayLink Layer Protocol EnginesSoftware Interconnection

APIs and GUIsKOM platformLAN linkages

autoinstallautoconfigureSWIO/LabView“JetSend”-like

Strategic CommoditiesOther

First round draft picks

Initial operation in 1H ’00


OngoingOF

Support

Research Advanced Development Product Design -- Order FulfillmentRo ------ RN

MfgRamp

RecentlyIntroduced

ProductSupport

Production EngineeringHP Labs

36 MONTHS 18 MONTHS 12 MONTHS -- CYCLE TIME

MWTC

COT 1

- - -

COT N

E0 E1 E2 E3 E4 E5A0 ------ AN

PGU Product Design

GROUP

SPONSORED R&D

PROCESS

SHARINGOF Processes

EPS

ARCHITECTURE

FORUM

MSU Inbound Marketing

PGU Product Line Planning

COMMERCIAL

SOURCES

UNIVERSITY

SOURCES

EPS R&D Operations

Application Engineering


EPS Worldwide Order Fulfillment

A new global strategy


EPS Order Fulfillment Changes We are extending MCG’s integrated order fulfillment

organization approach to EPS.

Integrated organization means that Product Generation Unit manufacturing managers report solid line two ways:

Implications:• Integrated OF and supply chain strategy across EPS• Local Product Generation Unit manufacturing strategy

decisions tied to global strategy

Objective:• Harness the “power of one” and ensure that order fulfillment

is a competitive weapon for EPS.

PGUManager

PGUMfg. Mgr.

WorldwideOrder Fulfillment

Manager


A Molecular Change

from this: to this:

Free floating divisional triad molecules

Gaps and overlaps

Complex structure Division triad remains Solid, strong as one

The advent of group strategy represents a fundamental “molecular” change . . .

Power of One dimension


Key Focus Areas for OF

Customer Value• New Products• Unparalleled Responsiveness• Highest Quality

Shareholder Value• Optimum Supply Chain• Low Cost• Low Tax

- and -


Key EPS OF Strategic Initiatives

Engineer the Supply Chains• Solution Supply Chain• Material Supply Chain

Unify our OF Business Globally• Economies of scale• Low cost/low tax geographies• Customer/Field regional linkages

Electronic Solutions GroupCompany Confidential ESGO FSTRAT.pp t 5/9 9 Page 6

Key Focus Areas for OF

Customer Value• New Products• Unparalleled Responsiveness• Highest Quality

Shareholder Value• Optimum Supply Chain• Low Cost• Low Tax

- and -


EPS Supply Chains

ExternalSuppliers

ExternalSuppliers

FinalAssembly

andTest

FinalAssembly

andTest

LogisticsLogistics CustomerCustomer

InternalSuppliers

InternalSuppliers

Material Supply Chain Solution Supply Chain

• Internal• External• Hybrid Int/Ext

• BTS Box• BTO Box• Systems


EPS Order Fulfillment Structure Elements

EPS Product Generation Units

Consolidated Box Center(s)

Material Supply Chain

Supply Chain Architecture and Systems

Local OF• Brokers global supply chain alternatives to local business teams.• Leads localized OF teams. May include: NPI, systems, E&E and box production.

Material Supply Chain• Focused on getting the right material to the right place at the right time at a low price with the minimum inventory

Consolidated Box Center(s)• Final configuration and test center(s) with products from multiple product groups.• Consolidated around a unifying theme, e.g. low cost, specific technical capabilities.

Supply Chain Architecture and Systems• Provides overall supply chain engineering and roadmapping.• Focal point for information systems.• High level of authority to decide and fund change projects.

Local OF Local OF Local OF

Prod PlanProd Mktg

R&D

Prod PlanProd Mktg

R&D

Prod PlanProd Mktg

R&D

...


Next Steps

Work with Byron, Duane and Product Generation Unit leaders to determine local OF structure

Develop group structural elements, charters, roles, etc.• determine structure for MWTD, procurement, and other

elements of the material supply chain• develop group supply chain architecture and systems

function

Develop and implement management processes, metrics, etc.


EPS Marketing Strategy

Marc Saunders May 12, 1999


EPS Marketing Role

“Make Front/Back marketing work and become a competitive

advantage” Roles and responsibilities for MSU/PGUs

Training to develop new skills

New tools and processes

Linkage of Front/Back


EPS Group Process Strategies “Link and Sync” the MSUs and PGUs

Industry In bound/Solutions

Product Planning

Outbound Marketing

EPS Solution Planning and Portfolio Management Process

Product Marketing

PGUI

PGUII

PGUIII

A B C

A B C

New Co Labs

PGUIV

EPS

Marketing

Processes


Role of EPS Marketing

Roles, responsibilities, and resources for MSU/PGU marketing

Clarify at outset

Marketing council to coordinate and manage on-going issues

Develop/institutionalize new skills,

Integrated messaging

1:1 marketing

Marketing on the Web

Roadmapping


Role of EPS Marketing (cont’d)

Business Intelligence

Market research consulting and planning help

Data library (markets, customers, competitors)

“Everyone is entitled to their own opinion, but not their own data.” - Jay Galbraith Scanning and future trends

Roadmapping Support Standardized process and deliverables across MSU’s/PGU’s Market models and definitions



Support for Front/Back Product Chartering

Standard chartering “commitment sheet”

Facilitate merging of product/solution roadmaps Organize “Product Planning Council” to review commitments, encourage critical mass and commonality. Air issues and resolve or escalate to MSU GM/BoD

Membership: MSU Inbound Managers, PGU Product Planning Managers, Group Marketing staff



Support for Portfolio Planning

Solution and product roadmaps, market models

Product chartering summary

Investment vs.. market segment opportunities

Consolidated competitive analysis

Issues requiring BoD decision


MSU/PGU Linkage Example

PGUII

A B C

PGUI

Mnm mna

mnm mnmn mn

mnmnm

Mkg R&D PP Mkg R&D PP

Product Roadmap #1

Product Roadmap #2

CommitmentCommitment

Mnm mna

mnm mnmn mn

mnmnm

Solutions Roadmap


Summary

“This structure makes things easy for customers, but it can make things complex for the producer … If the company can manage the conflict and the complexity, it has achieved a competitive advantage.”

Jay Galbraith

Documents

Electronic Products and Solutions GroupCompany ConfidentialEPS Strategy. ppt 1 I. Introduction