Innovation Management

Is Your Business Strategy being Effectively Executed

By Product Development?

Copyright © 2012, Oracle and/or its affiliates. All rights reserved.3

The Troubling Result

of product development

and commercialization

resources are wasted

Joe Barkai,

IDC Manufacturing Insights

Product failures are not

necessarily a result of bad

ideas…they are a result of

suboptimal decisions.

of projects fail to launch

a product to market

of the projects that do,

fail to meet original

expectations

50%

75%

66%

Product Lifecycle Portfolio Mgmt

Product Requirements and Ideation Mgmt

Concept Design Mgmt

New product development and

introduction

Complete and accurate product

and supplier data

Product and

Supplier Data

Inn

ova

tio

n E

xec

uti

on

Processes and Formulations

Ingredients

Finished Products

Inbound Packaging

Outbound Packaging

Trade

Specifications

(Trade Unit)

Process

Specifications

(Top Level)

Printed Packaging

Specifications

Packaging

Material

Specifications

Ingredient

Specifications

Inbound Packing

Specifications

Trade

Specifications

(Consumer Unit)

Process

Specifications

(Intermediates)

Ingredient

Formulations

Authoring

Tool

(Formulation)

Supplier

Collaboration

Product Innovation Management Opportunity

Current

StatusOpportunity

Closed loop

integration

between

strategy and

execution

Str

ate

gic

Pla

nn

ing

Alignment between corporate

vision and business strategyBusiness

Strategy

Innovation Mgmt

Engineering

product

record

Innovation Management Filling the Gap between Business Strategy and Product Development

Product

Introduction –

Release to Mfg,

Sales, Planning

Maintenance and

EoLConcept Design

Product Governance & Compliance (build on GRC)

Demand Planning

Financials

Projects

Product Portfolio and Project Mgmt

Enterprise Quality Management

Product-Process Change Mgmt

CAD/CAM/S/W

Product

Requirements &

Ideation Mgmt

Logistics

ERP

MDM

Manufacturing

MES

Process Planning

6

Innovation ManagementThe Solution…

Concept Design

Ideation

Require-ments

•Concept White Board

•New Technologies

•Market Shifts

•Quality Improvements

Capture Early

Concepts

•Leverage existing Concepts

•Develop New Concepts

•Select Best Concepts

Collaborate

•Share Concepts

•Approve and fund

•Design functional components

•Define items and Release

Propose and Design

•Gather, Group, Vote

•Enrich, Rate

•Review, Collaborate

Manage Ideas

•Promote selected ideas for business investment review

Create Proposals

•Author, Review

•Rank, Rollup

•Traceability

Manage Requirements

Agile Enterprise

PLM

A9, e6, P4P

• Product Collaboration

• Change Mgmt

Design

To Release

• Direct Material Sourcing and Target Costing

• Product Compliance

• Product Quality Mgmt

Cost

Compliance

Quality

• Project Schedule

• Project Collaboration

• Project Deliverable Tracking

Project

Execution

•Propose New Concepts or Products

•Refine Cost, Revenue, Schedule, Rank to objectives

Create Product

Portfolios

•Create Alternate Scenarios

•Rank and Score Alternates

•Model revenue & Resources

•Compare Portfolio Scenarios

Analyze Portfolio

Alternates

•Publish Product Portfolios

•Measure Plan to Actual

•KPI Tracking Alerts

•Link to Project Execution

Manage and Revise

Portfolios

© 2008 Oracle Corporation – Proprietary and Confidential

MFG.

Procurement

Sales

Engineering

Sales CRM

PM

• Capture Ideas• Customer Meetings

• Email

• Customer Care

• Idea Discovery Solutions

• Peers & Executives

• Open Innovation Projects

• Collaborate and Conceptualize• Search Ideas Database

• Analyze

• Share & Discuss

• Enrich & Rate

• Group Ideas into potential features and

product

• Product Proposals– Clarify Requirements

– Creatively organize into new market

opportunities

– Build and submit Marketing Requirements

for peer and executive review

– Submit to portfolio for review and funding

Ideas

Field

Market

Customers

Proposal

Requirement A

Requirement B

Idea 1111

Idea 2222

Idea 9000

Idea 2454

Idea 3333

Req. 3434

Idea 1111

Idea 2222

Idea 3333

Idea A

Product Requirements & Ideation Mgmt

Concept Design

PRIM

PLPM

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Collaborative Idea repository

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Enrich the best ideas

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Develop Requirements (from template)

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Promote Ideas: Proposal

Product Lifecycle & Portfolio Management

Concept Design

PRIM

PLPM

• Manage Portfolio Elements

– Existing Products, Existing Funded

Projects and New Proposed Projects

(Ideas & Concepts)

– Project Schedule

– Cost, Resource and Revenue Modeling

– Strategic Fit Modeling (rank by objective)

• Portfolio Scenarios

– Manage Multiple Portfolio Alternates

– Portfolio Analysis and Scorecarding

• Portfolio Management

– Portfolio Approval and Publish

– Portfolio KPIs and Alerts

Corporate Portfolio

Acme, Inc.

Business Unit Portfolio

Acme Medical

Product Line AM1

Product Line AM2

Business Unit Portfolio

Acme Pharma

Product Line AE1

AE1 Model X

AE1 Model Y

Product Line AE2

Business Unit Portfolio

Acme Consumer

Product Line AF1

Product Line AF2

Existing Products

Proposed

Projects

Current

Projects

© 2011 Oracle Corporation – Proprietary and Confidential

Concept Design

Concept Design

PRIM

PLPM

Concept BOM

morphing directly into Production BOM

Modular BOM with Options and Rules Configuration Draft Production BOM

Varian

t

s

YES

NO

• Capture Conceptual Ideas

• White Board brainstorming sessions

• Newer technologies/technical advances available

• Current product issues

• Shifts in Marketscape

• Draft concepts

• Reuse existing items, create new concepts

• Develop alternate concept approaches

• Evaluate and score alternates against business objectives such as supply chain risk, cost, requirements fulfillment

• Propose Concepts

• Analyze Concepts

• Approve and fund NPD

• Concept Design – Prototype Design

• Capture & Fulfill design requirements

• Select best alternate that best achieves objectives

• Collaborate across multi-enterprise teams

• Morph Concept Items to PLM Items

© 2011 Oracle Corporation – Proprietary and Confidential

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Create Concept StructureFunctional Blocks

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Review & Assign Requirements

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Fulfill Requirements

Concept feasibility