Improving Returns on Innovation - Oracle · PDF file"Innovation has nothing to do with how many R ... Analyze Concepts against Target Costs Analyze supply chain metrics ... PowerPoint

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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Improving Returns on Innovation Rathinakumar Vaidyanathan


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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

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sole discretion of Oracle.

Safe Harbor Statement


• 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

• 16 Years - Singapore • Cover Asia Pacific excluding Japan • Supply Chain and Manufacturing Consulting • Business development & Thought Leadership

• 2 Years - Indonesia • Managed Automotive Components Plant

• Production Planning and Control • Manufacturing Systems


Agenda

• Innovation – Introduction

•Why is it Critical ?

• Innovation Process Framework

•Oracle Cloud Solution – Innovation Management

5


What is common ?


Innovation ?


`

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 9 CA IT Transformation Management Copyright © 2011 CA

"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

Innovation – Different Perspectives

http://money.cnn.com/magazines/fortune/fortune_archive/1998/11/09/250834/index.htm


Why Innovation is Critical…

? ? ?


Drive Growth Delight Customers Optimize ROI


Drive Growth Delight Customers Optimize ROI

World’s CEOs consider Innovation critical for business Growth Strategy

of companies are dissatisfied with return on innovation spending

86% of companies feel that their efforts to convert ideas to product development projects were ineffective

64% 50%

Source: Booz & Company Making Ideas Work (2012) Source: IDC Source: Deloitte


Innovation is a Major Driver of Top and Bottom Line Results


Ideas – Starting point for the Innovation Process


Success vs. Cost Curves for New Projects

Cycle compression increases likelihood of mistakes at each phase

3000 Raw Ideas

300 Submitted Ideas

125 Small Projects/ Patent Submissions

9 Early Stage Development Efforts

1.7 Launches

1 Success

NPD Stages

Nu

mb

er

of

Idea

s/P

roje

cts

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)


The Innovation Gap

Commercial Input (Targets, AOP’s & Forecasts)

+ Trend Intelligence (Market, Competitive etc.)

Best Practices

Gap

Product Execution Do Things Right Right Resources

Product

Portfolio

Development

Pipeline Resources

Corp Strategy

Right Direction


?

Exec. Strategy

Finance Sales & Marketing

Legal

Consumer Demand

Customers

R&D

Mfg. & Operations

Web Portal Requirements

DB Prototypes ERP

5year Plan

Budget Market Studies

Legal Req’s: Compliance Safety Etc.

Lab Notebooks

Money Gate

Focus Groups

Scoping Discussions

Product Roadmap

Proposals

Resources

Changes

Bandwidth

Target Costs

Functional Specifications

Validation Goals & Objectives

Customer Claims

Competitive Research

ALM

Engineering IP

Product

Portfolio

Corp Strategy

Right Direction


Development

Pipeline Resources


Closing the Gap

Product

Portfolio

Corp Strategy

Right Direction


Development

Pipeline Resources


Product

Portfolio

Development

Pipeline Resources

Corp Strategy

Right Direction

Portfolio Right Mix

Right Roadmap

Optimized ROI

Greater Alignment

Better Balance

Faster to Market

Reduced Costs

Increased Utilization

Ideas

Requirements Concepts


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”.


Fund Screen

PR

OD

UC

TS

MA

RK

ET

INS

IGH

TS

Compare

PRODUCT

DEVELOPMENT &

COMMERCIALIZATION

OPTIMIZE

INVESTMENT

PORTFOLIO

GENERATE

PRODUCT

PROPOSALS

CAPTURE,

DEVELOP &

PRIORITIZE

IDEAS

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?


ROI, Budget & Resources Investment Mix

Product Strategy

Customer Requirements

Supply Chain

Company Strategy

Roadmap

Eliminates disparate systems for collaboration and content

Analyze a 360° View of Dimensions

Across stakeholders


All Industries Focused on Innovation

Retail Automotive High Tech

Services Pharma/Bio Tech

Consumer Goods

Aerospace Industrial

Manufacturing

Energy Health Sciences Education & Research

Engineering & Construction


Innovation Management Available as cloud solution


Single Source of Truth driving end to end Innovation Process


Get the Best Ideas…..to Market Faster


VELOCITY VOLUME VARIETY

Capture great ideas, trace to downstream process artifacts

Get the Best Ideas…..to Market Faster

Single repository for

all types of ideas

1

Which partners

suggested?

3

4

Voting

2 2 Rich Text 2

Downstream artifacts or inputs (e.g a9) 5


Evaluate and Communicate the Business Case

Align stakeholders on the assumptions, strategy, justification

Business Case 1

Business Strategy 2

Social Collaboration 3 Tabs for Cash

Flow, Resource Needs,

Additional information (artifacts)

4

5 Relevant Information beneficial to

cross-functional

teams

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 28

Determine the Best Portfolio Investments to Commercialize

Analyze against top line growth strategies

Establish Top Level Objectives 1



Analyze new proposals or combine with in-play proposals

Create scenarios 2

Add new proposals 3


Compare Proposals for Technical Risk, Reward,Product Positioning 4




Compare Proposals against top line growth strategies

Compare Proposals for strategic fit to objectives 5



Analyze against top line growth strategies

Compare Proposals for strategic fit to

objectives & probability of

Success

6


Analyze against bottom line constraints


Compare Proposals’ Resource Pool Needs vs Capacity 7



Traceability to Decisions and Decision Criteria

Traceability to conversations,

decisions & decision criteria

8


Fund Screen

PR

OD

UC

TS

MA

RK

ET

INS

IGH

TS

Compare

PRODUCT

DEVELOPMENT &

COMMERCIALIZATION

OPTIMIZE

INVESTMENT

PORTFOLIO

GENERATE

PRODUCT

PROPOSALS

CAPTURE,

DEVELOP &

PRIORITIZE

IDEAS



Define and “Right-Size” the Requirements

Definition, collaboration, fulfillment

Requirements as a team sport

Intuitive

User interface

1

Requirement attribute values 2

Rich Text 3

Versioning 4 5 Social


Scope Creep – Spec is looking an older version

Manage Requirement Changes

…identify Scope Creep

Identify and respond to changing specifications 6


Align Stakeholders with a Shared View of Requirement Status

Out of the box analytics – easily extended

Drill through charts (priority, status) 7

7


Graphical Analysis of Requirements’ Relationships

Identify Impact of Unfulfilled Requirements

Cross object, attribution filtering 8


Drill through Visual Information Navigator

Investigate issues – all connected

9 Social


Translate Requirements into Concepts

Shared view of Requirements while Concept is developed

2 Design Re-use

3 Alternate Designs

1

1-click to details

4

Connected to business case


Analyze Concepts against Target Costs

Analyze supply chain metrics & requirements fulfillment

5 Alternate Designs measured to targets 6 Design Re-Use


Translate Requirements into Concepts

Analyze concept at any level

7

Supply Risk 8

Requirement Risk


Fund Screen

PR

OD

UC

TS

MA

RK

ET

INS

IGH

TS

Compare

PRODUCT

DEVELOPMENT &

COMMERCIALIZATION

OPTIMIZE

INVESTMENT

PORTFOLIO

GENERATE

PRODUCT

PROPOSALS

CAPTURE,

DEVELOP &

PRIORITIZE

IDEAS



cloud.oracle.com/product-value-chain

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Documents

Improving Returns on Innovation - Oracle · PDF file"Innovation has nothing to do with how many R ... Analyze Concepts against Target Costs Analyze supply chain metrics ... PowerPoint