Herbert Klein
Industry Principal, Consumer Goods, Oracle
Biju Jatheendran
Senior Manager - Kalypso
Amy Schauwecker
Sr. R&D Group Operations Manager, Big Heart Pet Brands
Improving Product Innovation in CPG with Oracle Innovation Lifecycle Management Solutions
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.2
“We are increasing productivity, which frees up resources to invest in innovation”
“Innovation remains the cornerstone of our growth”
“Innovation is the prescription for reinvigorating the organization to compete more successfully in a demanding world”
“The strength of the company facilitates our ability to identify, implement and scale innovative ideas”
“The company will devote a greater portion of its R&D resources than in past years to innovation”
“One of our competitive advantages is a focus on innovation throughout the organization that results in successful new products”
The Commitment To Innovation Is Clear
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.3
Innovation Is Really Hard….
More than 80% of new products launched fail to meet their goals
Copyright © 2014, Oracle and/or its affiliates. All rights reserved.4
Innovation Lifecycle Management
In-Market Analytics
New Product Development & Introduction
Discovery
Innovation Data Management
Strategic Portfolio PlanningOptimize the performance of all products and categories
Capture product, technology, market and
consumer insights
Manage “Phase Gate” process from ideation to launch
Monitor in-market performance of the
product after launch
Manage product, supplier, marketing, consumer, engineering and scientific data in one single platform
Leverage a complete end-to-end innovation analytics dashboard to optimize innovation performance
PLM is a Key Enabler to CPG GrowthBiju Jatheendran, Senior Manager
Kalypso is a consulting firm focused exclusively on innovation.Our people are leading business professionals who combine experience in select industries with product and process innovation expertise.
The Innovation EngineOur services are designed to help companies become more innovative and provide a systemic view of new product development
Kalypso Overview
Business & Innovation Strategy
Business Intelligence & Innovation Analytics
Product Lifecycle Management Technology
Innovation & Change Leadership
Front End of Innovation
Portfolio & Pipeline
Management
New Product Development
ExecutionValue
Management
Intellectual Property Management
Our Mission is to help our clients deliver
on the promise of innovation
SUSTAINED RESULTS
INFORMED OPINIONS
COMPREHENSIVE CAPABILITY
FLEXIBLE DELIVERY
EXCLUSIVE FOCUS
What Market Leaders Do Today
Invest in Strong PLM systems
“Sandboxes” for ideation
Incorporate searching capabilities
Amass libraries by function / need
Incorporate “tribal knowledge” into their systems
Transfer technology quickly & effortlessly
Collaborative design / communication tools
Emerging Trends in CPG
Competing aggressively with premium private label and low cost entrants
Integrating and managing disparate supporting IT and knowledge systems
Trying to deliver true breakthrough innovation
Renewed commitment to long term research
Expanding the scope of innovation beyond product
Finding new ways to compete in developing markets Lower cost single use sachets
Going beyond compliance QSR movement toward nutrition transparency
Moving beyond spec management to innovation management
Services innovation and collaborative innovation
Cost based innovation
Many Consumer Goods companies deal with a lot of information technology complexity that prevents them from enabling integrated product innovation that can allow them to better respond and deliver on emerging trends
Inefficient workarounds
Manual / serial processes
Poor visibility
Slow decision making
Customers
Artwork Design
Suppliers Outsourced Partners
Regulatory Bodies
Legal & CA
Procurement
ProductionR&D (US)R&D (Europe)
Marketing
Ideas
Specifications
Samples
Label Data
Audits
Submission FilesArtwork Files
Design Briefs
R&D (ASIA)
Formulas
CAD Quark Adobe ERP SCM
Notes Access EDMS
ERP
ERP SCM MESMCAD Spec DBCADExcel Recipe Mgmt
ExcelProject
Package Designs
How Well Do You Manage Your Product Development Data?
Critical product data grows exponentially as ideas become concepts and finished products enter the market
Early DesignData
Conceptual Data
Product Development/Manufacturing Data
Idea Concept Product Development
Finished Product
ProductionData
= Product Data ClustersEnsuring a single source of truth for all product development isthe base that you need to put in place in order tobuild additional innovation capabilities
PLM for CPG
Complete Master Data & Publish Draft Product Spec
Formulate Prototypes
ProductionTransactional World
Management of ChangeIterative World
Ideation/DevelopmentCreative World
Idea
Experimental Data Regulated Data Production Data
Product Development Promotion to Manufacturing
Concept/Design ApprovalPromotion to Regulated State
ERP
Prototypes
• Entry in Authoring Tools• Creation of the data
Finished Product
Formulated Products – Product Lifecycle StatesDefine Design
Criteria for New Formula
& Ideate
Search, Model & Screen
Formulas
Validate Master Data & Publish Final Product Spec
Evaluate & Select Final
Formula
Commercial Scale
Production
The Role of the Product Record in the Management of Product Data Lifecycle
Authoring tools and PLM systems are used to build the Product Record. The final life-cycle state of products in the Product Record feed ERP’s Master Data.
Samples &Experiments
PLM BackboneAuthoring Tools
PLM for Big Heart Pet Brands and InnovationOctober 2, 2014
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Agenda
• Who we are• Why PLM?• Our Journey• Advice• What’s Ahead
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From: Systems 2 years Ago
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To: PLM
Why?• No single integrated repository for product specification data• Information was repackaged, duplicated and manually re-entered
across systems• Data manually maintained in text documents with manual validation• Mitigate risk and find synergies on acquisitions
Solution: Implemented Oracle’s industry-leading Agile Product Lifecycle Management (PLM) platform to reinforce BHPB’s product compliance and streamlined other systems across enterprise.
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What We’ve Implemented in One Year
10,000+ specs All Brands500 Users
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Our PLM Journey
Managed to implement PDM/SCRM across the company in the midst of divesting our consumer products business, acquiring a new company, and continuing aggressive product development efforts with shared resources.• What’s Worked Well:
– Strategic Alignment from Steering committee– Ease of use and functionality of design– Fully engaged Core team of Subject Matter Experts– Increased Traceability, product management, accountability, and visibility across the business– Integration with our other systems (preventing retyping errors)– Better search-ability – “One source of truth” – Product data hierarchies – Action Dashboard and BI Publisher– Reusability of spec templates and general data– Fewer errors due to more rigorous approval routings
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Challenges
– Data collection, loading, and validating and re-cleansing– Maintaining two specifications systems between integration of data and
keeping data clean– Weight roll-ups– Formulas roll-ups with multi-step complexities.– Workflows and action management; reassigning approvers– Moisture loss adjuster tools – Functionality with MAC’s– Training and maintenance across subject matter experts
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Advice for Anyone Embarking on the Journey
• Involve cross-functional subject matter experts in data migration and validation
• Find the Champion’s in the organization to help communication and training
• Not everything is a priority. Find out what is a “must” for “Go-Live” and keep the rest of the items on the ongoing
improvements list.• Simplify workflows as much as possible. Don’t carryover bad habits
from previous processes. • Be flexible to evolve with PLM
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On the HorizonSpec Change management in PLM
Data Validation Cont’d
PLM Integration into ERP
New Specs Future Modules/Updates
Oct 2014 across all BHPB items as necessary
Through End Oct 2014
By End Jan 2015
Currently entered by Subject Matter Experts across business
Supplier portal- Q4 2014LIO-Q1 2015FC- Q4 2015 as applicable
Questions?
Thank You!
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