Innovation Management
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
• 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
8 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. | Confidential; Internal Use Only | Do Not Distribute
Collaborative Idea repository
9 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. | Confidential; Internal Use Only | Do Not Distribute
Enrich the best ideas
10 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. | Confidential; Internal Use Only | Do Not Distribute
Develop Requirements (from template)
11 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. | Confidential; Internal Use Only | Do Not Distribute
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
16 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. | Confidential; Internal Use Only | Do Not Distribute
Create Concept StructureFunctional Blocks
17 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. | Confidential; Internal Use Only | Do Not Distribute
Review & Assign Requirements
18 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. | Confidential; Internal Use Only | Do Not Distribute
Fulfill Requirements
Concept feasibility