Innovation and EPPM Dick Faris Senior Vice President Oracle Primavera September 2013

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First – A little history - 1983… • Mini Computers and Mainframes • Centralized Scheduling

– Project/2, Artemis, In-house systems – 24 hour turnarounds typical – expensive

• IBM PC introduced in 1981, IBM XT in 1983 • Early PC based systems • 1983 Primavera founded by Joel Koppelman and Dick Faris • P3 introduced in October 1983 at PMI in Houston

– Based on Promac written for a mainframe – Batch system with DOS user interface

The Democratization of Scheduling

• Scheduling at the Jobsite

• Anyone could schedule

• CPM no longer just for the largest projects

• P3 became a standard

• PMI grows from less then 2,000 members in 1980 to over 800,000 today

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A Brief Primavera Chronology • P3 Version 1.0 - October 83

• Primavision Plotter Graphics released - May 84 • Finest Hour with hourly scheduling and multiple calendars –

AutoCost introduced - June 86 • P3/FH 4.0 – Multi-User with Btrieve and PENGUIN - Mar 90 • SureTrak 1.0 - Dec 90 • P3 for Windows - May 94 • P3/e shipped May 99 – Oracle and SQL Server db • Fully Web Enabled Version of P6 Released - 2010

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Oracle-Primavera – Since the Acquisition 2010 - P6 Release 8.0 – Full Web Enabled Release 2010 - P6 Analytics Released 2011 – P6 Team-Member Released Moving from a Scheduling tool to an EPPM Platform

FY 2013 – A Strategic Year for Primavera • New Product Releases

– Primavera Gateway • Integration Platform

– P6 Visualizer • Enhanced Flexible Gantt Visualization

FY 2013 – A Strategic Year for Primavera • Internal Product

Acquisitions – AutoVue

• Visualization of CAD – Crystal Ball

• Portfolio Financial Decision Analysis

• External Product Acquisitions – Unifier

• Project Costing • Project Collaboration • SAAS / On-Premise

– Instantis • IT PPM • Corporate Initiatives • SAAS Only

IT

NPD

Manufacturing

Owner Capital Projects

FM/RE

EPC Contractor

Routine Maintenance

Corporate Projects

Earned Value Program Management

Shutdown / Turnaround /

Outage

Installation Services

The Vision - Multi-Initiative Solution

CLOUD & ON-PREMISE

PRIMAVERA GATEWAY

ANALYTICS WORKFLOW

MODERN UI ORACLE SOCIAL

STREAMS CROWD SOURCING

COMPOSITE MOBILE PLATFORM AGNOSTIC

ORGANIC DEVELOPMENT ACQUISITONS

IP UNIFICATION

CLOUD INTEGRATION SOCIAL

MOBILE PPM PROLIFERATION

The Value of EPPM

Financial discipline

Operational excellence

Risk mitigation

So how do we get there?

1. Make it enterprise 2. Deploy across multiple initiatives 3. Include all stakeholders

Innovation

“Some men see things as they are and ask why. Others dream things that never were and ask why not.” George Bernard Shaw

“Necessity … is the mother of invention.” Plato, The Republic, 347 B.C.

“If you always do what you always did, you will always get what you always got.” Albert Einstein

The key to success is for you to make a habit throughout your life of doing the things you fear. Vincent Van Gogh

Innovation It is not just a good idea Innovation results from the successful execution of a new idea ….and often requires stopping the execution of previous innovations

Innovation

Organizations must innovate to grow, be efficient, and be competitive. It is not enough to do things better, you must find new things and do them well

Innovation

Every organization strives for Innovation … the challenge is creating a culture of Innovation and managing it.

Innovation

It means being willing to make mistakes, ….. but detecting, admitting, and correcting those mistakes quickly. "Success is 99% failure." Sochiro Honda – Founder of Honda

Innovation

Continuous innovation means once you are getting really good at executing something….

…. it is time to try something new

Why Innovations Fail Don’t solve an important problem

Take too long

Underfunded or poorly implemented

Too much effort for the benefit received

Innovation

The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail Clayton M. Christensen Harvard Business School Press (C) 1997

The Innovator's Dilemma

A truly innovative business Idea has jump started many successful companies.

But those same successful companies often fail to see or execute the “next big thing”

They focus on perfecting and fine tuning the original innovation, often incapable of further Innovations.

Creating a Culture of Innovation

Reward for taking risk

Failure is acceptable(at times)

Skunk works – removed from day to day time wasters

Thinking ‘outside the box’

Is Innovation fostered by face-to-face contact?

Home vs Office - Productivity vs Innovation ?

Marissa Mayer’s Edict

Can Collaboration tools simulate the “random” effect

Hiring, motivating & retaining Innovative people Innovators are “weird” - Loners, disruptive

- Crazy ideas - Rebel against conventional wisdom

Give them a stake in the outcome Nurture and Mentor Protect them from the “corporate culture”

“Borrowing” an Innovation

..and improving on it

..or just making it work IBM invented SQL but Oracle implemented it

Xerox PARC invented the mouse and GUI, but Apple commercialized it

Managing Innovation

…Can it be “managed” Or just encouraged?

Encouraging Innovation

Strategy

Process

Culture

Mentoring

Accountability and Ownership

Resources

Ideation

Measuring & Monitoring

Buying Innovation

…and not killing the culture that created it Apple buying neXt Oracle buying 90+ companies

Innovation Failures

How do you know when an Innovation is not working?

When do you stop working on it?

How do you know when an Innovation is no longer Innovative? "The essential part of creativity is not being afraid to fail.“ - Edwin H. Land

Developing Innovative Ideas

Keep up with current trends Take time to think and read Ask questions Seek ideas from any source Try something new each day PPM as Idea Management System

“A discovery is said to be an accident meeting a prepared mind.” A. von Szent-Gyorgyi

“The way to get good ideas is to get lots of ideas, and throw the bad ones away” Dr Linus Pauling

Innovation Funnel

Ideas Concepts Projects New Products / Processes

Selecting the Innovation

Portfolio Management is the obvious answer – ..But how do you know what will work? What are the criteria?, How are they weighted? How do people rank them? Who ranks them? Where is the water line?

Gut feel still plays a role.

Innovation

How do you balance Innovation with performance excellence? Enterprise Project Portfolio Management !

Enterprise Project Portfolio Management What is it?

Project Portfolio Management at the Enterprise level - Connected to Enterprise Systems – Tied to Strategy

A way to run a business not just projects

12 Steps to Project Portfolio Management

1. Establish Review Group 2. List Strategic Goals and Objectives

Define and Rank 3. List Existing Projects and Ideas for New Projects 4. Value each project’s Support of Goals 5. Calculate and Analyze Project Scores 6. Analyze and Optimize by: Budget, Resources, Risk, ROI, Redundancy

12 Steps to Project Portfolio Management

7. Establish “Water Line” 8. Add Back “Must-do” projects 9. Recommend Optimal Portfolio 10. Initiate New Projects / Cancel existing projects

missing cut off 11. Publicize Results and Methodology 12. Establish Periodic Reviews

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Innovation Execution and EPPM

Innovation is about execution Successful execution requires monitoring

Innovation and Risk Management

Innovation entails risk How do you measure and report that risk? Publicize the Risks

Innovation and the Executive

Balancing Innovation and ‘keeping the lights on’

What must we stop doing?

Allocation of resources

How to get my organization to embrace change?

Remove fear and reward innovation

Make your approach to risk taking transparent

Innovation

It comes from luck

Luck comes from selecting the right opportunity and having the courage of executing it well at the right time

In large organizations, that requires EPPM

Innovation “It is not how many ideas you have. It’s how many you make happen.” Accenture Ad

“An idea that is not dangerous is unworthy of being called an idea at all.” Oscar Wilde

“The best way to predict the future is to invent it.” Alan Kay

“You cannot discover new oceans unless you have the courage to lose sight of the shore. “ Andre Gide

Dick’s Picks

• Mobile Apps • Social Networking on the Job • Mapping as UI • Smart Phones Replace Laptops • Flexible Computer Screens • Jawbone Wristband • 3D Printing • Augmented Reality

Dick’s Picks – Mobile apps What Activities are

underway with 100m of me? Let me see a job photo taken here 2 weeks ago? Where is the Electrician? Medical Diagnosis by App

Dick’s Picks – Social Networking on the job To this: Who has worked with Subcontractor ABC? Has anyone used technology XYZ? Who knows about the new regs? Who do I see in Finance to get a supplier paid?

From this: What’s a good french restaurant in Denver? Anyone using the new Samsung Galaxy?

Dick’s Picks - Mapping as UI

Dick’s Picks – Smart Phones Replace Laptops

Keynote Remote

Keynote

Dick’s Picks – Flexible Computer Screens

Dick’s Picks - Jawbone Wristband and UP app

Dick’s Picks – 3D Printing

Dick’s Picks – Augmented Reality Augmented reality (AR) is a live, direct or indirect, view of a physical, real-world environment whose elements are augmented by computer-generated sensory input such as sound, video, graphics or GPS data - Wikipedia

dick.faris@oracle.com