Current Environment Merger and acquisition (M&A) as a business strategy to quickly gain competitive edge, grow top-line revenue and drive innovation Massive industry consolidation with over $100 billion in M&A in 2015 Similar level of consolidation predicted in 2016 Determination of product line continuation, consolidation or divesture Potential Challenges Pre-consolidation: Ensuring business continuity while assessing opportunities to maximize efficiency, productivity and synergy Post-consolidation: Capturing full merger value of innovation and value realization in new product development (NPD) and new product introduction (NPI) Aligning of product and project portfolios, innovation strategies, product development execution processes and innovation cultures with revised organization constructs Opportunities New Product Development Roadmapping alignment (product, market, technology) Phase-gate integrations Time to market/time to margin/time to revenue Business Analytics Current P&L portfolio Invest or sell decisions for lines of business Time for investment Market readiness Competitive market analysis Data management Dashboarding Engineering and NPI scorecards Margin Management COGS via DTC and development cost focus Productivity maximization via organizational change management (OCM) focus 1 2 3 kalypso.com Semiconductor Merger & Acquisition: Driving Top-Line Revenue Growth & Innovation Value Capture Strategic Sourcing Strategy and selection by R&D and procurement On-time delivery Market/Current Portfolio Analysis and Assessment of Business Lines Analysis & Assessment Make/buy decision Grow or divest decision EOL decision Targeted Activities Market analytics – product lifecycle Lessons learned program Training, closed-loop learning Margin management
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Current EnvironmentMerger and acquisition (M&A) as a business strategy to quickly gain competitive edge, grow top-line revenue and drive innovation
Massive industry consolidation with over $100 billion in M&A in 2015
Similar level of consolidation predicted in 2016
Determination of product line continuation, consolidation or divesture
Potential ChallengesPre-consolidation: Ensuring business continuity while assessing opportunities to maximize efficiency, productivity and synergy
Post-consolidation: Capturing full merger value of innovation and value realization in new product development (NPD) and new product introduction (NPI)
Aligning of product and project portfolios, innovation strategies, product development execution processes and innovation cultures with revised organization constructs
Opportunities
New Product DevelopmentRoadmapping alignment (product, market, technology)Phase-gate integrationsTime to market/time to margin/time to revenue
Business AnalyticsCurrent P&L portfolioInvest or sell decisions for lines of businessTime for investmentMarket readinessCompetitive market analysis
Data managementDashboardingEngineering and NPI scorecards
Margin ManagementCOGS via DTC and development cost focusProductivity maximization via organizational change management (OCM) focus
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Relevant WorkTwo separate $1B+ semiconductor firms of mixed signal and signal integrity productsChallenge: Underperforming new product introduction (NPI) engine: long delays, high iterations, re-spins, test problems and reliability issues
Approach:
▪ Assembled team of engineers from each of the functions, analyzed and summarized the current strengths/weaknesses/opportunities.
▪ Revamped the NPI flow, introduced phase-gate and portfolio management approach for all projects for clear project and overall portfolio deliverables
▪ Produced 30+ new products and variants every year since 2007
$600M business unit within a major semiconductor supplierChallenge: Heavy R&D spend in a particular business unit with poor returns (i.e. multiple respins, missed releases) resulting in loss of market share, profitability, high incidence of employee exits from engineering
Approach:
▪ Provided market analysis, competitive landscape and current portfolio analysis
▪ Divested the BU and re-invested funds in the high-speed, data-communication segment with excellent overall bottom-line growth
$300M semiconductor design and manufacturing services providerChallenge: Fragmented and sporadic product lifecycle data management amongst engineers using spreadsheets and non-centralized repositories causing inefficient decision making
Approach:
▪ Recommended product lifecycle management (PLM) solution to make fact-based decisions and ready data availability, saving engineering person-hours and improving NPI efficiency