Slide 1

Improving the NPD Process

Final Presentation 10/30/2010ck1Corporate OverviewEstablished 1895Global product company Government and commercial markets Market leader within Broadcasting and Media equipment industry

2General issues with current development processPortfolioIdea funnelPlan & Spec Design Phase* tech review *proto/test *DRVerificationTest, bug fix * ERPilot Validationpre-prod, validation Launch*PR, rampRamp - Volume ProdnCR, Refine, active SUSMatureMin. investRetire/EOLEoB, EoSproduct proposalDesignGateVern & Pilot ValLaunchGateFeedbackPortfolioProposalPortfolio & Prod PlanDevelopment Project ExecutionProduct release to ops and mfg Life CycleMissing compliance across businessesOver-complicated No process used outside of Product DevelopmentKey specific issues within process

Specific issues with current process development process#1: Lack of long-term goals#2: Ideation phase missing#5: Missing PLR#3: Gate criteria not defined#4: Gate-keepers = decision makersIssue #1: Lack of long-term goalsHaving a clear long-term strategy is a key pre-requirement for a successful NPD processi.e. How does the commercial business start shaping the technology of the media industry?

Development owned by Division leadership

Product portfolio managementStrategyProduct portfolio AProduct portfolio BProduct portfolio CProduct portfolio ANew Product Criteria New market Market size: TAM, SAM Investment > $500kSustaining Product Criteria Implementation time < 3 staff/months Investment < $100k ...Expansion Product Criteria Pull-through effect/ year > $5MM Investment < $500k ...

#2: Ideation phase missingSpecific issues with current process development processIssue #2: Missing ideationExpand ideation from current 1x/year road-mapping session to ongoing processStretch ideation:Into other BUsInto value chain: vendors, partners, customersTools to use going forward:Make a person responsible for running idea bankNetworking events after large global trade showsWhisper suits and Executive Advisor board meetingsWhisper booths at different locationsBonus reward for ideas Revenue sharing model for implemented ideasGrand prizes for winning ideas

#3: Gate criteria not defined#4: Gate-keepers = decision makersSpecific issues with current process development processIssues #3-4: Gate criteria & gate keepersSpell out gate criteria and make them tangible/ measurableFocus on defining criteria up-front (vs. tailoring to pass a specific project) for specific gatesExclude vested management from gate-keepers, example CF team:Financial AnalystService ManagerRegional Sales Manager for target launch regionProject manager from unrelated projectsProduct manager from unrelated projectOperations LeadUse also external, impartial gate keepers for selected gates:Chip Vendor for design gateKey friendly customer of launch region for release gate

#5: Missing PLRSpecific issues with current process development processIssue #5: Missing Post Launch ReviewInstall a PLR 3, 6 and 12 months after launchDevelop standardized PLR systems and toolMeasureTie plan vs. actual performance to annual bonuses of all stakeholders

IdeationEliminationImproved process: a step at a timePlan & Specification Design PhaseVerificationPilot ValidationLaunchRampVolume ProductionMatureRetire/EOLDesignGateVern & Pilot ValLaunchGateFeedbackDevelopment Project ExecutionProduct release to ops and mfg Life CyclePLRPLR GateStrategyPortfolioIdea funnelproduct proposalPortfolioProposalPortfolio & Prod Plan

Call to actionImplement solution proposals for issues #1-5Set improvement KPIs and measure outcome of process improvement If successful, roll-out across Division Continue with 2nd improvement phase

14Thank you!

Christopher.kuthan@gmx.net15