1. 10 years of business engineering
INNOVATION STRATEGY TO EXECUTION
Aprile point of view and approach
May 2013

2. Sustained innovation is keyfor prosperity
TIME FROM NOW (YEARS, MONTHS)
1 3 4 5 6 7 82 9
The right mix balances initiatives for effectiveness.
In
ideation
In
development or
introduction
In operation
The
Right
Mix
10
VALUE

3. Innovationstrategytoexecution requires an holistic approach
Programs
Execute with the
right
practices, teams
and tools
Products
Generate and pursue
the right ideas
Portfolio
Build and select the
right initiatives
• Develop scenarios and roadmaps
• Set and execute ideation and concept challenges
• Develop inter-functional, collaborative and open networks
• Adopt clear and manageable process, with timely
business decisions based on effective criteria
• Allow visibility and link to portfolio objectives
• Allow continuous feedback to be incorporated
into decisions
• Adopt leading practices for managing
scope, uncertainties and other relevant
dimensions
• Develop leadership, culture and high
performance teams
• Exploit the power of state-of-the-art tools

4. Innovationculture matters
Culture is what allows successful strategy to be created and executed.
Alignment
Aligning innovation
with the
organization
vision, mission and
goals.
Spirit
Shaping
mindset, risk taking
attitude and
behavior.
Leave no room for
“not invented here”
syndrome.
Motivation
Building
dedication, passion
and courage.
Rewarding success
and fast learning
from failures.
Connections
Searching and
exploiting
teamwork and
diversity.
In innovation “culture doesn’t eat strategy for lunch”. They go together.

5. Informationtechnologytools areemergingas keyenablers
Product Lifecycle Management
Comprehensive Capabilities for Process, Data and Team Collaboration
Strategic Roadmapping
Market, Product , Regulatory and
Technology Roadmapping
Social Product Innovation
Web 2.0 and
Enterprise 2.0
Ideation & Crowdsourcing
Ideation Challenge Lifecycle
Management
Phase Gate Optimization
Innovation Process Model

6. Four interconnectedaspects arewhat makesdifficult to
becomea world-class leader
People &
Culture
Processes,
Practices
& Methods
Tools
Data

7. A capabilityframeworkcan serve as referencetoengineer
the change
Innovation Process, Practices & Methods
Culture, People & Organization
Innovation Portfolio
Product Lifecycle Data & Technology
Innovation Metrics & Intelligence
Technology
Insights
New Product Development & Introduction
Launch
ManagementBrands
Results
Analysis

8. Integratedroadmapping explores scenariosfor gap&
opportunity analysis
Critical Market 1
Critical Market 2
Product 1
Product 2
Product 3
Technology 1
Technology 2
Upgrade
Full Launch
Development
Stabilize
2013 2014 2015 20162012
Begins Decline, X% annual
Growing X %
Full Launch
Development Full Launch
Retire
Development Available
Available Upgrade
Development
Typical questions asked during
Market, Product, Regulatory &
Technology roadmapping:
Will reallocating resources on
Technology 1 increase the
probability of releasing Product 1
sooner before the value of the
market drops?
Can the release of Product 1 allow
for an earlier retirement of Product
3?
How can the release of Product 2
be moved ahead of schedule to
capture growing Market 2?
What Product is planned to be used
with Technology 2 since it impacts a
strong, growing market?
Which consequences the new
incoming Regulations 1 will have on
Technology 2 and Product 1?

9. Open innovation allowscollaborationamongpartners in an
ecosystem
Source: M. Docherty, Venture2 Inc. (with concepts adapted from the book by Henry Chesbrough, Open Innovation: The New Imperative for Creating and Profiting from
Technology, Harvard Business School Press, 2003)
Valuable ideas can come from inside or outside the company (industry) and can go to
market from inside or outside the company (industry).

10. Ideasand concepts are pursued and alignedwith the
portfolio
“Creating
Insights”
“Creating
Reasons”
Approval:
Director Innovation
Director Ideation
Portfolio Leader
Approval:
CTO
Director R&D
“Creating
Opportu
nities”
Idea Generation
Enrichment
&
Aggregation
Opportunity
Evaluation
Opportunity
Selection
Concept
Selection
• Define and launch
challenges and what- if
scenarios
• Conduct ideation
workshops and
collaboration exchange
• Capture ideas and
build repository
• Adopt skunk works
• Allow idea shaping
and stretching
• Disseminate ideas
and build-up
• Assess strategic fit
and qualify broadly
• Work with lead users
• Conduct ideation
events and promote
VoC sessions for
customer immersion
• Manage idea
submission
• Score and prioritize
opportunities
• Select concepts
• Align portfolio &
strategic fit
• Investigate technology
readiness and
technical solutions
• Describe and qualify
market opportunity
• Develop
opportunity case
• Triage of opportunities
for further evaluation
• Align portfolio &
strategic fit

11. Portfolioallowsvisibility, alignmentwith business strategy
and selectionof options
Align portfolio with strategy
Create scenarios
and options
Drive consistency in
initiatives evaluation
Enable advanced
valuation techniques
Communicate
portfolio decisions
Pre-configure charts
and reports for
reviews
Manage and smooth
out resource loads

12. Phase-gatemakes the innovationprocess manageableand
effective
Phase 0
Concept
Phase 1
Feasibility &
Planning
Phase 2
Design
Phase 4
Launch
Phase 3
Test
No-Go
Rescope
Go
Keep a history of
decisions, rationales
and owners
Facilitate
“closed-loop”
assessments
Make informed gate
go/no go and resource
decisions
Monitor phase activity
progress and project
status
Introduce flexibility in
innovation model with scalable
phase-gate approach

13. PLM roadmap helps building a vision and implement
pragmatically
• Integration of all product-
related information
systems, “individually
searchable”
• Program for reuse of
existing
products, formulas, and
other intellectual property
• Detailed, automated
workflows to accelerate
completion of tasks on the
critical path
• Use of systems for
regulatory and compliance
•Powerful “one-stop”
search capability to find
and retrieve information
from multiple sources
•Product data is
unified, reliable, and
readily accessible
•Program and metrics for
optimization of company’s
experience, skills and
existing work
•Advanced value and
“what-if” analysis of new
development projects
•Internal collaboration
capability
• Multiple independent
and non-scalable
systems
• No search and
information retrieval
capability (paper-based)
• Extensive manual
processing of data
• Knowledge leaks/loss
Characteristics
Value Drivers
•Partial integration of
systems (portals)
•Some internal cross-
functional collaboration
•Automated and manual
data processing
•Information silos
•Basic Stage/Gate process
but not globally deployed
nor system-enabled
4
Advanced
3
Formal
2
Basic
1
Developing
Level 5
World Class
• Product development
driven by market needs
• Development strategies
leverage product
platforms and core
competencies
• Advanced resource
planning
• Seamless integration of
information for design
and production planning
• “Virtual” collaboration
with key customers and
suppliers
• Product development
projects linked to
portfolio management
• Gain market share
• Acting as global company
• Leverage commonality of
technology/products
• Time-to-market
• Efficiency focus (limit re-
work)
• Document management
• Regulatory and
compliance
• Ability to act as separate
business units
• Site-focus
• Enhanced margin
• Advanced regulatory and
compliance
• Internal collaboration
network
• Solution selling
• Actions dictated by vision
(roadmapping)
• Internal and external
collaboration network

14. Changeleadership addresses people’s adoption
Approach goes above and beyond role/responsibility definition, communication and training.
Coach Change Leaders — Teaching project managers and executive
sponsors to proactively engage, inspire and lead employees to willingly
adopt and advocate
Resistance Management — Addressing resistance openly and early by
engaging employees to embrace new perspectives and possibilities for how
innovation and PLM initiatives can multiply their contribution to success
Leadership Alignment & Advocacy — Establishing active,
skillful executive championing by recruiting advocates, planning
their activities, preparing their messaging and guiding them to be effective

15. Innovation Process, Practices & Methods
Culture, People & Organization
Innovation Portfolio
Product Lifecycle Data & Technology
Innovation Metrics & Intelligence
Technology
Insights
New Product Development & Introduction
Launch
ManagementBrands
Results
Analysis
Examplesof transformationinitiatives
Build-up a better
visibility of the entire
portfolio of projects
Define lean and effective new product development
process , with focus on timing and resource
Control data and
workflows through
integrated PLM
Initiate ideation
contests

16. Typicalnext step focus on engineeringthe change
• Get stakeholders support
• Maintain alignment between vision, goals and approach
• Assess current innovation results, culture, approach and
practices
• Set desired change focus
• Communicate consistently throughout the organization
• Start mobilization and on boarding
• Respond to stakeholder fears regarding changes
• Detail and evaluate the proposed initiatives
• Get approval and resources
Align
Executive
Set Scope
Plan Initiatives
Initiate
Change

17. Summary messages
Sustained innovation requires an holistic view and a
comprehensive set of business and technology capabilities.
The change journey starts with alignment, assessment and
detailed definition of initiatives.
A framework sets a reference that can support innovation
strategy-to-execution approach and capability.
Build a vision for innovation but execute the change
pragmatically, incrementally and rapidly