Assessment of Innovative Environment 4/20/2017 8:40 AM Assessment of Innovative Environment IHS Goldfire Firstname Lastname, Title Month day, 2013

Agenda Innovative Environment Assessment Assessment Criteria Questions 4/20/2017 8:40 AM Innovative Environment Assessment Objectives and Approach Assessment Criteria Questions

Objectives Primary Objective Secondary Objective Assess the implementation and utilization of Innovation Processes for R&D activities Define areas of improvement Provide recommendations Secondary Objective Identify areas where Innovation Tools , Methodologies and Processes would be beneficial

Approach IHS Services Visit one or more Sites IHS consulting group has developed impressive skills and competences in innovation processes IHS consultants help the G2000 for 20+ years innovate smarter & faster with more confidence Visit one or more Sites Most exhaustive assessment Interview R&D Users and others General Managers through Engineers Number of interviews according to your organization

Assessment Criteria

Innovative Product Development (IPD) IPD Vision Human networks working collaboratively and concurrently on the research and development of innovative products. Work is digitally defined and globally distributed. Attributes Collaborative decisions - designs and processes Digital innovation workflow Real time sharing No geographic or organizational boundaries

IPD Capability Model IPD VISION 4/20/2017 Product Innovation Encompasses Four Core Competencies Value-Driven Business High Performance Organization Cross- Functional Processes Departmental/ Individual/ Localized Knowledge & Information Management IPD VISION ORGANIZATION TRANSFORMATION Innovation Tools and Methodologies IT and Communications Organization and Process Improvement BENEFITS

Knowledge and Information Management Capture and Manage Internal Knowledge and External Information during R&D projects Research activities Efficient access to the Internal Knowledge Tech Watch and Documentation Competitive and Market Analysis Supply Chain Library analysis models Powerful search and access management Knowledge Management team and processes Enable Collaboration among Distributed Teams

Innovation Tools and Methodologies Root-Cause Analysis Function Models and Value Analysis Risk Analysis : FMEA, … Structured Brainstorming, Think Out of the Box Innovative Problem Solving Technology forecasting IP portfolio management Integration Limited number of software that support methodological tools R&D processes

IT and Communications Infrastructure Applications Support Data Server configuration Network bandwidth to handle increased amount of data Within a facility Across Facilities Performance Management Applications E-mails, instant messaging, social network, … Support Centralized support Data Security Systems Administration Network Management Contingency Management

Organization and Process Improvement Innovative Product Development Processes Documented Review Processes Everyone who adds value is involved up front Collaboration Other Areas of Interest Training - Technology and Process Communication Breaking through cultural barriers - Change management Empowerment Continuous Improvement Community of Innovation

Assessment Framework Innovative Product Development Maturity Level I The Crawl Maturity Level II The Walk Maturity Level III The Run Maturity Level IV The Win! Knowledge & Information Management Poor/Inconsistent documentation Siloed on individually owned locations Difficult to find & share Documentation & sharing encouraged Information maintained on shared locations/document management systems Limited (keyword) search & weak access management External sources collected Project centered documentation & collaboration process Powerful (unstructured & structured) search & access management Knowledge Management team in place Standardized documentation & publication process Collaborative, version controlled document management Highly skilled, collaborative research community Innovation Tools & Methodologies Ad hoc problem identification & reporting Trial & error problem solving Inconsistent knowledge capture & sharing Ad hoc product idea generation Limited market/opportunity validation Non – systematic product feature selection Simple root cause analysis Intuition (experience) based solution selection First “sufficient “ solution implemented Limited knowledge capture Systematic VOC process Market reactive feature set selection Risk mitigation through incremental innovation Systematic problem reporting Internal experience & expertise search Collaborative RCA & problem solving Good knowledge capture & sharing mechanisms Automated monitoring of market & technology trends Systematic opportunity identification & validation Systematic feature prioritization & concept generation Preemptive risk management Systematic solution prioritization & prototyping Long term /next gen planning Automated knowledge capture & sharing Strategic IP portfolio management Optimal portfolio risk/reward management Ability to implement Blue Ocean & market disruption strategies

Innovative Product Development Organization & Process Improvement Assessment Framework Innovative Product Development Maturity Level I The Crawl Maturity Level II The Walk Maturity Level III The Run Maturity Level IV The Win! IT & Communications Low IT infrastructure No network Data on local computers No effective communication between users No internet access Local IT infrastructure Local network Shared data on server E-mails Some internet access Global IT infrastructure Global network Shared data on specific applications (DMS, PLM) Intranet portal Instant messaging Internet access for all users Standardized applications All data and documents shared globally Global documents access rights management Internal social network Limited data on personnal computer Organization & Process Improvement Individual, self development of skills No consistent best practice culture Team based adoption of research & problem solving practices Regular training & skill development offered to staff Well established Community of Practice Planned expertise development & mentoring Systematic best practices development & dissemination

Assessment Results A rating is done on several topics for each core competencies according to the interviews’ results A final rating is calculated for each core competencies

IPD Segments IPD VISION Future Position Current Position Maturity Level Current Position Time Value

Companies are Achieving Real Benefits Schneider Electric WW Knowledge Management initiative (Team, Process, Solution) Re-use of existing internal knowledge from past projects on current projects (don’t reinvent the wheel, use validated solutions) Capitalization of Tech Watch and competitive analysis results to fuel projects Better quality of identified external information (technical experts involvement) Faster and better research activities Problem solving Systematic Root Cause Analysis to identify the right causes and capitalization Solution identification in internal knowledge or external information Brainstorming tool to generate new concepts Accelerated process to analyze and solve technical problems Identification of other improvement axis in Strategy and Product Marketing department. Initial Maturity Level Final Maturity Level

Companies are Achieving Real Benefits Boston Scientific

Companies are Achieving Real Benefits Medtronic

Questions and Next Step 4/20/2017 Product Innovation Encompasses Four Core Competencies Value-Driven Business High Performance Organization Cross- Functional Processes Departmental/ Individual/ Localized Knowledge & Information Management IPD VISION ORGANIZATION TRANSFORMATION Innovation Tools and Methodologies Future Position IT and Communications Current Position Organization and Process Improvement BENEFITS