PIB CAPABILITIES & THINKING

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Our Perspective on New Product Development. Connecting Strategy, Innovation, NPD process and Portfolio Management

Innovation Strategy Defines the role and scope of NPD efforts in the organization

Portfolio Management Executes strategy by prioritizing and approving NPD projects

Stage-Gate NPD Process Mechanism for ideating, designing, developing and commercializing new products

Governance & Decision Rights Determines key decision makers and their scope of responsibility when approving NPD projects

Project Management Manages individual NPD projects to ensure that they are in scope, are within budget, and meet key objectives

PIB’s New Product Development

System

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Project Portfolio Management &

Governance managing the Gates

New Product Development

Process improving the Stages

Project Management

executing the Stages

PIB Offers Services Across the NPD System

With a deep understanding of the innovation strategy, we visualize key project information to help senior leadership teams both monitor the value the portfolio of NPD projects and make key investment decisions. Additionally, we work intimately with leadership teams to design decision making processes and ensure that NPD teams present the appropriate project information at governance meetings.

We have significant experience in helping companies understand the cross-functional connecting rods framing effective NPD processes. We understand the NPD process and map it for our clients to educate their teams and improve performance. Processes we have focused on in the past include Ideation, Feasibility, Development, Commercialization, and Geographic Expansion.

Our project management services are focused solely on projects which support NPD to complement our experience in the space. In order to support the development of our client’s NPD Project Management function, we:

• Assess Internal Project Management Functions

• Structure and Build Project Management Organization

• Outsource Project Managers

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Project Portfolio Management & Governance Services

The Right Information Leadership bodies need to be equipped with the right information to make critical decisions.

• Balance Scorecards We build scorecards to objectively assess the strategic and financial value of projects within the NPD portfolio.

• Portfolio Visualizations We visualize key project data to ensure that leadership teams can easily understand and interact with project information. This improves the quality and speed of decision making within our client’s organization.

The Right Decisions Leadership bodies need established processes to make sure that decision rights are clearly articulated.

• Decision Process Design We build internal processes to make decision making processes

as transparent as possible. This includes the criteria for making decisions as well as who makes the decisions (e.g., RACI / RAPID / DAI decision matrices).

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To effectively manage the NPD project portfolio to achieve an organization’s strategic goals, we employ methods and tools to ensure that sr. leadership teams have the right information to make the right decisions.

Do Consumers Want it?• Purchase Intent (Top Box)• Frequency• Volume• Degree of Newness• Target Consumer• Consumer Need /Insight• Consumer Benefits / RTBs

• Updates, as required • Updates, as required

Can We Make it? High-Level Estimate of Tech. Complexity• Product• Procurement• Package• Process / Manufacturing• Regulatory / Legal

• Target Formula• Target Package• Target Cost• SKUsImpacted• Target Manufacturing Plant(s)• Technical Feasibility Plans• Updates, as required

Will Customers Drive it? • % ACV• % Incremental toCategory (Estimate)• Velocity Rank• Preliminary Assessment of Trade Interest by Sales

Organization• Alignment to Campbell’s SGOs

• Updates, as required

Can we Make Money? • Incremental NPV (if available)• Year 1 and Ongoing Estimates

• Volume (MEQ)• List Sales ($MM)• Incremental List Sales ($MM)• Incremental Net Sales ($MM)• Incremental GM ($MM)• GM %• EBIT ($MM)• Incremental A,C, T ($MM)• % Incrementality• Capital (Y/N/M)

• FinancialAssumptions

• Updates, as required• Incremental NPV• Year 1, 2, and Ongoing Estimates

• Volume (MEQ)• List Sales ($MM)

Incremental List Sales ($MM)• Incremental Net Sales ($MM)• Incremental GM ($MM)• GM %

EBIT ($MM)• Incremental A, C, T ($MM)• % Incrementality• Capital $

• FinancialAssumptions

New ProductExcellence:Gate Criteria

Is it Strategic? • Alignment to Brand, Business,and CorporateStrategy

• Degree of Competitive Diff erenti at i on• Barriers toCompetitive Entry• Likely Competitive Response

• Updates, as required

Resources RequiredFor Next Stage? • Updates, as required • Updates, as required• Market Research $

• Incremental A,C,T $• Capital $• PD & Packaging FTEs• Supply Chain FTEs• Additional FTEs

• Updates, as required

• Final Formula• Final Package• Final Cost• Updates, as required

• Updates, as required

From Find to Launch

What’s theLearning Plan?

• Key Questions that Need to Be Answered By theNext Gate

• Key Questions that Need to Be Answered By theNext Gate

• Key Questions that Need to Be Answered By theNext Gate

Key

Qu

esti

on

s

What are the Key Risks? Risk Assessment• Risks, Likelihood, Potential Impact, Miti gati on

Plan

Risk Assessment• Risks, Likelihood, Potential Impact, Miti gati on

Plan

Risk Assessment• Risks, Likelihood, Potential Impact, Miti gati on

Plan

© 2009 LLP© 2009 LLP

• Updates, as required

• Updates, as required

• Updates, as required

• Updates, as required

• Updates, as required

• Updates, as required

• Not Applicable

Risk Assessment• Risks, Likelihood, Potential Impact, Miti gati on

Plan

Project Overview • Project Name• Project Description• Project Lead

Project Sponsor• Business Unit• Brand(s)• Project Type (Innovation, Renovati on)• CSC Platform• Target Launch Date• # of SKUsto be Developed, Launched, & Slotted

• Updates, as required • Updates, as required • Updates, as required

OrganizationalFeasibility

• Updates, as required • Updates, as required• Description of Project Complexity• Description of Potential Impact on Other

Initiati ves• Confidence in Achievement Milestone Timeline

• Updates, as required

Draft: Feb . 25 , 2009

Version 7.0

Find Fill Early Development Late Development Commercialization Launch andPost-Launch

Gate 1 Gate 2 Gate 3 Gate 4

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Mapping & Improving the Process We have significant experience mapping and improving the NPD process. Some of our work examples include:

• Business Development and Technology Search processes mapped as separate workflows or embedded within the NPD process

• Processes involving CMOs and CROs

• The NPD process mapped to as many as 9 levels of detail including the SOP level

• NPD processes for Rx-to-OTC Switches and Medical Devices, as well as drugs, cosmetics, consumer electronics and foods

New Product Development Processes

Implementing the Process The people who live the process day to day determine its success. Therefore, we have employed methods to ensure organization-wide engagement:

• Process Visualizations We transform the swim lanes and boxes of traditional process

maps into user-friendly & fun process visuals for communication and education. (see next page for examples)

• Web-Enablement of Key Processes To support implementation, we use technology to ensure that

employees can access the information within the process maps anytime, anywhere.

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Across the NPD process, we are interested in helping our clients map, better, and implement the process within their organization. We believe that a well thought through process allows our client’s to devote themselves entirely to creative, innovative work and limit questions such as “who does what now?”.

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NPD Process Map Visualization Client Examples

Some Product Development Process Maps are driven by the R&D activities necessary to launch a product or service. These represent the more typical approach to Process Mapping.

Others focus on the specific “consumer touch points” throughout the process to ensure that the consumer remains the focal point of the Product Development Process.

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NPD Project Management

Outsourced NPD Project Managers

Our expertly trained project managers will lead complex projects or support your project managers to produce on-time, in-budget, high-quality results. Examples of how our project managers can support your organization include:

• Chartering projects

• Building and tracking project plans

• Reporting on project status

• Facilitating cross-functional project meetings

• Communicating with Project Sponsors

• Proactively addressing risks

• Managing scope creep and change requests

• Maintaining project documents

Assess & Build Internal NPD Project Management Capability

We utilize our standard Project Management Maturity Model to identify the current state of the PM capability, pinpoint areas for improvement, and build the organization’s capability. We help our clients build the PM capability by:

• Identifying the vision of the PM organization

• Defining roles and responsibilities

• Designing a reporting structure to unify and streamline the organization

• Developing customized PM methods and tools

• Defining core competencies and instituting them in the organization through case-based, interactive training

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Work Better.

25A Vreeland Road, #100., Florham Park, NJ 07932 | 1-973-443-9202 | www.philosophyib.com

Philosophy IB, LLP is a growing management consulting firm that marries analytical and

intuitive thinking to build creative, people-centered business solutions. Our multi-disciplinary

team, composed of left- and right-brained thinkers, MBAs, scientists, adult learning specialists,

and designers, enables us to build holistic, whole-brained solutions that our clients value.