Download - Prioritisation - Bob Andrew, NCR
Custom Design Services (Financial) ···· NCR Confidential 2012
Prioritisation
Bob Andrew, Director
Custom Design Services (Financial)
NCR Corporation
Custom Design Services (Financial) ···· NCR Confidential 2012
Agenda• What I do…
• ATMs – Department Store in a Box
• Challenges
• Product Lifecycle Management & Ideation
• Business Planning Hierarchies
• Prioritisation
• Portfolio Management
• Keeping it Simple - my 4 ‘Ps’
Custom Design Services (Financial) ···· NCR Confidential 2012
CDS Organisation & ProcessSelfSelfSelfSelf----funded Engineering Teamfunded Engineering Teamfunded Engineering Teamfunded Engineering Team
Part of Hardware Engineering and CTO Organisation
Self-Funding
Delivery of Bespoke Financial ATM SolutionsDelivery of Bespoke Financial ATM SolutionsDelivery of Bespoke Financial ATM SolutionsDelivery of Bespoke Financial ATM Solutions
Unique customer requirement
Expedite roadmap availability
Team CompositionTeam CompositionTeam CompositionTeam Composition
Business Development Manager & Group Lead
Snr. Programme Manager
Project Managers
Senior Design Consultant & Designers
Access to contract NCR Engineering Organisation
Access to contract external skills as required
Product Management (for approval step)
ProcessProcessProcessProcess
ConceiveConceiveConceiveConceive how will the product meet the needs of the end user, how much will it cost to manufacture, what should it look like, what does the customer want
InnovateInnovateInnovateInnovate industrial designers and engineers propose alternative, viable strategies
InspireInspireInspireInspire using CAD tools and prototypes to ratify, test and demonstrate all aspects of the engineering concept
RealiseRealiseRealiseRealise dealing directly with the supply chain, ensuring production readiness and ongoing support.
Discuss Requirement with Regional Deployment
Submit SCER
Secure LOB Approval
Create Statement of Work
& Project Plan($5,000 Charge-out)
Go – No Go
Start Development
Custom Design Services (Financial) ···· NCR Confidential 2012
ATMs & Department Stores- Concessions
3432 383634 DU31 33 35
Custom Design Services (Financial) ···· NCR Confidential 2012
Challenges• Multiple Stakeholders
• Competing Product Managers
• Annual Planning Cycle vs. Rolling Portfolio Management
• Intuition vs. Analytics in Portfolio Management
• Matching resources & money to priorities
• Systems crush flexibility & innovation
•Reporting not managing
Custom Design Services (Financial) ···· NCR Confidential 2012
The PLM Ideation funnel Ideation & Portfolio Management - the key driver of innovation
Custom Design Services (Financial) ···· NCR Confidential 2012
Business Planning Hierarchy
Custom Design Services (Financial) ···· NCR Confidential 2012
Project Prioritization Model
Criteria
OpportunityAttractiveness
Category
Capability Leverage
Competitive Advantage
Alignment with Strategic Initiative and Priorities
Strategic Fit
Program Complexity
Availability of Skills/Resources
Technical Change
Probability ofTechnicalSuccess
Market Maturity
Competitive Intensity
Business Model Change
Probability of Commercial
Success
Com
posit
e R
isk
Att
racti
ven
ess/
Fit
Platform/Product Leverage
Commercial Assumptions
Proprietary Position
Market Impact
Revenue Impact or Cost Reduction
Potential Gross Margins
Market Segment Size
NPV Potential (Funded Projects) or Investment (Unfunded Projects/Ideas)
Market Segment Growth2x
1.5x
1x
1x
Weights
Custom Design Services (Financial) ···· NCR Confidential 2012
Optimized Portfolio ManagementScoring and Prioritization Leadership decision-making
Custom Design Services (Financial) ···· NCR Confidential 2012
Portfolio Views/LensesPortfolio View/LensPortfolio View/LensPortfolio View/LensPortfolio View/Lens Strategic/Portfolio Strategic/Portfolio Strategic/Portfolio Strategic/Portfolio Question(sQuestion(sQuestion(sQuestion(s))))
1. R&D Spend Breakdown Is our spending mix aligned with our strategic intent? Will it help us achieve our near-term and long-term business strategies & goals?
2. Opportunity Attractiveness vs. Strategic Fit
Which projects provide us attractive opportunities that align with our strategic intent and capabilities?
3. Funnel Chart How balanced is our development pipeline? Is there a concentration of projects in specific phases? Are there phases with few or no projects?
4. Gross Margin Forecast (risk-adjusted) Are we on target to achieve our gross margin targets? What is the magnitude and timing of any gaps?
5. Innovation Map Do we have the right innovation mix to achieve our business goals? Are we investing enough in future growth platforms?
6. New Product Revenue (% of sales) vs. R&D Spend
Are we getting the right returns from our R&D spend?
7. Revenue Forecast (risk-adjusted) Are we on target to achieve our revenue and growth targets? What is the magnitude and timing of any gaps?
8. Risk vs. Reward Is the portfolio balanced from a risk vs. reward perspective? Are there any projects with high risk but low reward? Are we taking too much risk or not taking enough risk?
Custom Design Services (Financial) ···· NCR Confidential 2012
R&D Spend BreakdownR&D Spend Breakdown for FY2009 in USD ($'000)
New Solution
Development,
$10,000 , 24%
Continuation
Engineering, $3,000
, 7%
Solution
Enhancements,
Cost Reductions,
$4,000 , 10%
Field Based
Development,
$6,000 , 15%
Is our spending mix aligned with our strategic intent?
Will it help us achieve our near-term and long-term business strategies & goals?
Custom Design Services (Financial) ···· NCR Confidential 2012
Portfolio Dashboard
Custom Design Services (Financial) ···· NCR Confidential 2012
Keeping It Simple: 4 ‘P’s
PPPProjectrojectrojectroject
PPPPeople (and Skills)eople (and Skills)eople (and Skills)eople (and Skills)
PPPPriorityriorityriorityriority
PPPPostostostost----ItsItsItsIts– One per resource
– Colour to indicate skillset
– Column for priority
Test CriteriaTest CriteriaTest CriteriaTest Criteria
1.1.1.1. Essential to stay in business (regulatory)Essential to stay in business (regulatory)Essential to stay in business (regulatory)Essential to stay in business (regulatory)
2.2.2.2. Projects already committedProjects already committedProjects already committedProjects already committed
3.3.3.3. To maintain market shareTo maintain market shareTo maintain market shareTo maintain market share
4.4.4.4. New Things (growth)New Things (growth)New Things (growth)New Things (growth)
Promoted left or capacity frees up for them to be progressed at slower rate or when they have been on this list too long
Projects Lower on list received resource when available
Will take resource from one of the other levels immediately issues arise
Unstaffed or progressed if small
Staffed fully from the topFully Staffed at all times
Dates & commitments 100%
10 Projects10-20 Projects
Ranked in priority
5 Project Maximum
New projects added or promoted
ImportantImportantImportantImportantHighly ImportantHighly ImportantHighly ImportantHighly ImportantFailure is Not An OptionFailure is Not An OptionFailure is Not An OptionFailure is Not An Option
Custom Design Services (Financial) ···· NCR Confidential 2012