Oracle - How to take control of Product and Service Innovation guide.PDF
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This document discusses best practices for structured product innovation management. It notes that while innovation is critical for growth, many companies struggle with ineffective processes that result in poor returns on innovation investments. It recommends that companies implement a connected, data-centric approach with digital tools to manage the entire innovation pipeline from idea generation through development and commercialization. This will allow companies to systematically capture and select the right ideas, build business cases, and create a balanced portfolio aligned with strategy. The document outlines five key steps top innovators take including managing ideas from diverse sources, developing requirements, managing concepts and resources, creating investment proposals, and optimizing the portfolio.
Oracle - How to take control of Product and Service Innovation guide.PDF
- 1. 1 Your guide to a structured approach that links innovation management best practices with development and commercialization to accelerate time-to-market, create a balanced product portfolio, and achieve business advantage HOW TO TAKE CONTROL OF PRODUCT AND SERVICE INNOVATION
- 2. 32 DRIVING GROWTH THROUGH INNOVATION WHY IS PRODUCT INNOVATION AND DEVELOPMENT SO DIFFICULT IN PRACTICE?Innovation is the growth engine of the modern enterprise. Continuous innovation in products and services is vital to drive revenue growth, stay ahead of competitors, and meet rising customer demands. In fact, research by Bain & Company shows that, over a five-year period, the most innovative businesses will grow 84 percent, compared to just 28 percent for the lowest performers in innovation1 . Organizations that excel at product innovation are growing at three times the rate of those that struggle to innovate. In this guide, we’ll look at why businesses find it so hard to get product and service innovation right, and highlight practical steps you can take to bring structure and control to your innovation management processes. Developing innovative products requires a robust platform of processes and data. But with so many people in so many different departments involved with innovation, it’s easy for the best ideas to go unnoticed—and worse, for poor ideas to get to market. Employees throughout the business will often have great ideas about how current products and services can be improved, by adding services onto products to support new capabilities, as well as ideas for completely new products. Ideas can also come from customers, partners, and suppliers, or even from social media platforms seemingly unconnected to the business. Big data and the Internet of Things also provide great sources of innovative ideas, but without an effective structure in place, however, it can be very difficult to capture and analyze ideas, identify the most promising and profitable ones, and then develop and commercialize them quickly and effectively. There’s a big gap between the expected and actual returns on innovation investments:2 of CEOs say innovation is critical to their business think their innovation investments are delivering satisfactory returns are dissatisfied with the return on innovation investment believe their efforts to convert ideas into new products are ineffective 97% 20% 45% 64% 1 Taking the measure of your innovation performance, E. Almquist, M. Leiman, D. Rigby and A. Roth, Bain & Company, 2013 2 Sources: News Releases and Press Articles; IDC Manufacturing Insights 2012; PWC Innovation Survey-Breakthrough innovation and growth 2013; Oracle Research
- 3. 4 5 3 Oracle Innovation Survey, Oracle Corporation, 2014 At the same time, companies need to balance innovation with a wide range of other requirements, such as supplier relations, product costing, portfolio management, and compliance with global regulations. While product development cycles may be shrinking, they now involve a lot more tasks, often distributed through multifunctional internal and external teams across the globe. Oracle research3 has shown the impact of disconnected processes in product innovation and development: 77% 68% 91% 67% of companies still use spreadsheets to make project investment decisions have no systematic approach for assessing project value and opportunities have too many projects for their available resources have too many low-value projects in their product pipeline
- 4. Customers Suppliers Testing Facilities Artwork Houses Outsourced Partners Regulatory Bodies Pack Manager Product Developer Sourcing Manager Quality AnalystMarketing Value Chain Enterprise ERP Compliance Docs Test Data Site Recipe LIMS MESERP HCM FIN Costs Logos Sample HACCPSpecs Formulation CRM ComplaintsConcept Briefs Ideas Project ERP Excel LIMS Quark Adobe ERP SCM MES ? ? ? ? ? ? ? ? ? ? Launch Production Review Concept Evaluation Project Manager Development Idea Generation To help overcome these issues, product lifecycle management and innovation management must be seen as a global supply-chain collaboration methodology—and one that needs tools to support it. 76 Figure 1 shows the situation the average project manager finds when developing a new product or updating a current one. Without the help of tools and a unified single source of truth, it’s very difficult to transfer best practices from experience of complex development processes from one product to the next. Figure 1
- 5. 98 THE TRADITIONAL DEVELOPMENT MODEL What percentage of projects hit their cost and time targets? What impact do conflicting design and engineering changes have on productivity and costs? Will we meet all the regulatory requirements in every region? Which people and resources should be involved with which project? And for how long? Are our manufacturing partners actually building the product we designed? What’s the status and progress of all my ongoing projects? How do we relate product issues and customer satisfaction back to product design and development? The traditional development model must be replaced with a model that’s fit for purpose in the digital age—and that’s exactly what’s happening at high-performing, innovative companies. In the past, most organizations took a document-centric approach to product innovation and development, with product information scattered across the enterprise. But the digitization of products, more system engineering requirements, greater regulation, and shorter product cycles, mean that more global orchestration of processes and information is required. In the traditional model, there are simply too many places for projects to fail. Often, product lifecycle management is seen as only relevant for the product development department, and can be disconnected from other lines of business. Multiple and conflicting sources of data continue to grow, with each department distrusting the data provided by the others. But product innovation and development is an overarching task. Managing these processes requires effective collaboration between all lines of business—from RD and finance to marketing and supply-chain management. Product development cannot be sustained by the traditional document-centric, distributed and disconnected approach. It’s ineffective to work on extended spreadsheets for simple resource planning and time management, where data and analysis are controlled manually. And even if digital point-solutions are in place, unless they’re connected to each other it just takes too long to get a trusted answer to questions like:
- 6. THE MODERN DEVELOPMENT MODEL A more effective model for product innovation and development requires companies to transform the disconnected or document-centric into a connected, data-centric approach. Today’s top performers know that projects must be based on unified data from multiple sources, with orchestrated data flows, and that development processes must be closely tied to product and service innovation. Innovation is faster when the development of design concepts is closely related to requirements and ideas. There’s a pressing need for effective use of information on the costs and quality of the innovation pipeline so that elements of current products or services can be reused. And investment decisions need to be made by looking at the overall innovation portfolio, including the probability of technical and commercial success. Whether developing new products or improving current ones, the data-centric approach means adapting management methodologies, as well as adopting an IT platform that supports the product value chain from innovation through development to commercialization. In this way, companies can introduce a systematic approach to capturing, selecting, and investing in the right ideas and product and service concepts. With a connected, data-centric approach to product innovation and development, organizations will be able to: 10 11 Collect innovative ideas from across the broader ecosystem, including the voice of the customer Automate analysis from many data sources for a continuous, 360-degree view of products Automate risk management. Improve quality and automate risk management Take action on dialogue and reporting from all project participants Gain a unified view of innovation within the product record Integrate information about ideas and requirements with related product concepts Enable project managers to build compelling business cases Improve product portfolio decision-making
- 7. HOW TOP PERFORMERS DO IT 12 13 DO YOU HAVE ROOM FOR IMPROVEMENT? If any of these statements apply to you, then it’s likely you can improve your process and tools to make product innovation and development more successful: • We have difficulty developing new products and getting them to market • Getting from product strategy to practical execution is problematic for us • We’ve seen new products fail to meet targets • There’s no structured process for developing new products and services • We have many different tools that support the product development process • Product innovation, development and commercialization are not closely linked • It’s difficult to make informed decisions about our product and service portfolio HOW THE TOP INNOVATORS DEVELOP NEW PRODUCTS AND IMPROVE CURRENT ONES The vast majority of companies that are good at product innovation proactively match innovation and business strategies. They respect the effort required to generate ideas, develop prototypes, and commercialize offerings; they recognize the trade-offs that can throttle innovation; and they manage their portfolio accordingly. The best innovators use tools that help them structure the product innovation and development process so that they can: • Encourage creativity and systematize execution • Attract and retain young talent by creating a culture and a structure that enable everyone to work on innovation projects • Use appropriate metrics and rewards to measure and recognize innovation portfolio. These companies get innovative products to market quickly and profitably by taking a formal, structured approach that ensures concepts and products are aligned with market demands.
- 8. 1 2 3 4 5 6 CONCEPT DESIGN DEVELOP PROTOTYPE PILOT LAUNCH RAMP SERVICE SUPPORT PHASE-OUT DISPOSAL PRODUCTION CASHFLOW TIME Develop Products Right To Market Mitigate Risk Associated With Regulatory Compliance Reduce Service Warranty Costs Rapid Manufacturing Sales Commercialization Drive Margins Reduce Supply Risk Next Generation Products Ramp to Volume USING TOOLS TO CREATE AN OVERVIEW OF DATA AND INFORMATION The top innovation performers gather all relevant data in one system. They exploit the possibilities of digital networks, automation, analysis, and forecasting. Risk management, budgeting, and resource planning are all done automatically, based on knowledge and best practice experience from previous projects. Figure 3 shows how a product value chain platform turns the chaotic structure of the traditional model into a well-orchestrated, manageable approach. The introduction of such a platform is essential to manage complex, distributed processes and collect data from all stakeholders and value chains. Social, Mobile Embedded Analytics Product Commercialization Enterprise Project Execution Enterprise Product Record Collaborative Product Development Requirements Management Portfolio Management Innovation Management PLM CLOUD IN NOVATE COM M ERCIALIZE DEVELOP 1514 Top innovators execute product development as a structured flow, closely related to the overall portfolio of offerings. Figure 2 shows the improvements a controlled model can deliver, such as a higher cash flow during each phase of the product lifecycle and the faster release of next generation products. Figure 2 Figure 3
- 9. USING TOOLS TO IMPROVE THE PROCESS FLOW In Figure 4, we can see how modern product development tools enable best practices, where development is seen as a structured chain of events, linked together based on continuous background analysis of available data. Figure 4 MARKETINSIGHTS CONNECTED INFORMATION PROCESS Idea Idea Idea Idea Idea Capture, Develop And Prioritize Ideas and Work On Requirements Optimize Investment Portfolio Product Development Commercialization PRODUCTS Screen Compare Fund Generate Product Proposals and Concepts 1716
- 10. Automated tools for managing product innovation and development don’t just help provide a better structure—they can have a huge impact in many other ways. The best innovators use these tools to: 1. Incorporate the voice of the customer: Capture ideas from many channels and prioritize them based on business goals. Track where ideas come from, identify who has contributed to the process, and turn ideas into requirements and design concepts for successful translation into reality. 2. Make well-informed investment decisions: Introduce a comprehensive process for the orchestrated management of product proposals, so that they can be a trusted basis for product portfolio decision-making. 3. Keep a history of ideas that aren’t used: Some ideas may become feasible in the future as markets evolve or resources become available. If ideas are only stored on employee’s devices, when the employee leaves their ideas will be lost to the business forever. A central history of all ideas generated enables companies to revive old ideas or recycle components of those ideas at any point in the future. 4. Accelerate development cycles: Product concepts can be quickly and easily created, adapted, and redefined, evaluating the risks and the organization’s ability to achieve the desired goals. 5. Build solid business cases: Product managers gain a 360-degree view of budget, resources, and desired features, based on high-quality internal and external data. 6. Create a balanced product portfolio: The product portfolio is kept up to date automatically, and continual analysis matches current and future products to ensure they fit with corporate strategy and market changes. 7. Minimize the risk of failure: Poor projects and ideas can be stopped before they waste valuable resources that should be directed to projects with the highest potential for success. With a 360-degree view of all the information needed, such as resources required, probability of success, and supply-chain readiness, it’s simpler to make a fast decision to stop ‘living dead’ projects before they grow out of control. 18 19
- 11. 20 21 FIVE STEPS FIVE STEPS FOR CREATING STRUCTURE AND TAKING CONTROL OF PRODUCT AND SERVICE INNOVATION Bringing structure and control to product and service innovation is vital—but how does it work in practice? Research from Stage Gate International shows that top performers successfully get 62 percent of their products to market, while the worst only achieve a success ratio of 45 percent.4 This difference may be because top performers use a combination of digital support tools and a structured management approach when developing new products that links innovation best practices with effective development and commercialization. Project managers need effective digital tools to successfully and efficiently: 1. Collect ideas from a wide variety of sources to collaborate on them and identify the best ideas to put forward for development. 2. Manage detailed requirements after identifying key features and then map those requirements to concepts. 3. Develop concepts and manage related resources to ensure that product goals are met. 4. Create business case proposals to trigger investment decisions.and get the necessary project funding 5. Manage a balanced portfolio that’s aligned with corporate strategy. It’s easier said than done, but the most successful companies have a process and tools to manage the innovation pipeline. The top performers encourage ideas throughout the extended organization, structure the collection of these ideas, and make innovation a part of the company’s culture. Ideas can come from many sources today. Social listening technologies can find ideas from external sources, but they can also be applied inside the company, gathering ideas from different departments across the business. Ideas from all these sources can be fed into a product innovation funnel, from which the ideas that support the company’s product strategy can be identified for further investigation and assessment, so that only the best ones are taken to the next stage of development. There are many tools and techniques that can help bring ideas to the surface. For example, good reward incentives will stimulate idea-generation, as will activities such as ideation workshops, innovation labs, crowd sourcing, idea jams, and boot camps. But they cannot be used in isolation. STEP #1. IDEATION MANAGING IDEAS ⁴ http://www.stage-gate.com/resources_stage-gate_latestresearch.php 1
- 12. 22 23 The use of standalone ideation tools often ends with “campaign” completion, leaving ideas to stagnate in a repository. It’s far better to adopt a process and solution that provide structure and management capabilities across the rest of the innovation process. This will enable the ideas put forward to be fleshed out through collaboration, so that well-informed investment decisions can be made. KEY QUESTIONS TO ASK Companies that want to improve the way they collect and work on ideas should ask questions such as: • What tools do we use to harvest ideas from internal and external sources? How effective are they at surfacing good ideas? • Who is responsible for managing idea collection across the business? • Is ideation currently a standalone process? • How good are we at identifying the best ideas and working on them so they can be quickly and profitably brought to market? Figure 5
- 13. 2524 Every product to be developed has a set of requirements with related deliverables. For example, a functional requirements document will contain sets of more specific requirements, each detailing what’s expected of the product or service that is being built. Typically, there will be relationships and dependencies between requirement specifications. A certain requirement will depend on another one, and impact another one. For example, if requirement A cannot be completed until requirement B is completed, A depends on B. In turn, requirement B impacts A. This can have an impact on requirement C and so on. A and C may also be considered must-haves, while B is only a nice-to-have, which adds further complexity to the relationship of the requirements. It’s almost impossible to track and handle these complex interdependencies without proper automated oversight that monitors requirements management alongside the design concept. STEP #2. REQUIREMENTS MANAGING REQUIREMENTS 2 As the process moves forward, approvals for requirement specifications must be managed, while keeping an eye on the history of requirement specifications. Requirement specifications will also need to be closely related to the design concepts. At each stage, collaboration across teams is vital to ensure requirements are properly specified and the desired outcomes are achieved. INNOVATION MANAGEMENT IN ACTION The challenge An international high-technology manufacturer found that poor visibility into requirement and product scope was increasing time-to-market and reducing the return on innovation. The solution Oracle’s cloud-based Innovation Management solution was used to provide clarity and visibility of product scope and requirement specifications, as well as what-if scenario modeling to determine optimal product requirements. The results The company now has standardized, repeatable processes for requirements management and design, and it has enhanced secure collaboration on requirements across global teams.
- 14. KEY QUESTIONS TO ASK When setting up a requirements management strategy, it’s important to ask questions such as: • How can we get better at capturing and understanding our customers’ needs? How do we do it today? Which solutions do we use? • How do we currently assess and prioritize the requirements and features of our products? Who makes this decision? • What methods do we use to ensure the products we develop meet the defined set of product requirements? • How do we currently estimate the scope of our product requirements? Figure 6 2726
- 15. STEP #3. CONCEPTS MANAGING CONCEPTS 2928 A key task in the innovation management process is to manage product design concepts. A collaborative design workspace is necessary to generate, capture, analyze, and approve product concepts which are validated as meeting both product requirements and product strategy goals. Concepts must be traced in detail from ideas and requirements to finished products, for engineering clarifications, process analysis and improvement activities. They must also be aligned with strategic goals such as cost reduction, partnership development, and future technology migration. Concepts have to be managed in conjunction with related requirements, and must be linked to the product record to ensure reuse of products which are under current development and production. Typically, a concept is made up of a collection of features, which may include new capabilities or enhancements to existing ones. As a product is developed, some features may be tabled from the initial product release, to be added in future releases. Managing a collection of features provides a way to develop a roadmap of product features across different proposals. For example, there may be different releases of a product, with each release having its own proposal. This requires maintaining a list of the features supported in each proposal, clearly showing which features would be available in each release of the product. Product managers must compare and optimize competing concepts to support product strategy goals, and securely share the results with existing and potential supply-chain partners or external design teams. To assess a concept effectively, they need to look at several solution alternatives, which help compare concepts with specifications that are “need to have” or “nice to have”. Figure 7 shows an example of an analysis of a design concept comparing different variants. Successful concept design management supports the collaborative development of design concepts, the association of concepts with information held in related tools, such as product lifecycle management, as well as requirements management. Approved concepts need to be transferred directly to product development for prototype planning, detailed design with bills of materials, and product introduction. An organization’s product portfolio will need to consist of a roll-up of product concepts, so that product portfolio information can be captured through the ideation/concept/ proposal development process, and tied to the company’s overall product strategy, while taking the probability of technical and commercial success and supply-chain readiness into account. 3
- 16. Figure 7 30 31 INNOVATION MANAGEMENT IN ACTION The challenge A lack of synchronization between product development data and processes made it difficult for this global manufacturer to compare product concept alternatives and develop cost estimates. The solution Oracle’s unique Product Lifecycle Management solution with integrated Innovation Management will enable the company to construct new product concepts based on optimized requirements and ensure concepts can achieve measurable business goals. The results Synchronized product development data and processes mean requirements can be mapped to concepts and actual products, helping get new products to market faster. KEY QUESTIONS TO ASK When considering concepts management as part of an overall product innovation and development strategy, organizations need to ask questions such as: • How are designs and design intellectual property managed today? Which design tools are used? • Do products always meet customer requirements, and how do we know? How is the requirements gathering process managed today? • How do we currently assess the suitability and viability of the products we bring to market? • Which metrics do we use? • What is the current level of design reuse? Is it a priority to improve this?
- 17. 3332 Typically, proposals which are the basis for investment decisions capture essential information related to questions such as: • What do we want to achieve with the innovation/new product? • Are we targeting a new market, region or business area? • How much investment is needed? • What return do we expect from our investment? • What type of resources do we need? When? And how many? • If we go for option A, what is the trade-off for option B and C? STEP #4. PROPOSALS MANAGING BUSINESS CASE PROPOSALS 4 This approach makes it difficult to determine what’s been changed in the document, when, and by whom. It makes proposal management unnecessarily complex, as different versions of the documents may be begin worked on simultaneously. It’s then difficult to make investment decisions based on the latest version of the proposal. A connected, data-centric approach to proposal management is far more effective. The use of an integrated software solution introduces a single source of truth for information on proposals, concepts, requirements and portfolios without getting lost in a multitude of versions. If required, PowerPoint and Word documents can still be extracted from the solution—but with trusted and up-to-date information. Proposals should be able to be kicked off automatically based on the design concepts that have been developed. A streamlined, templates-based approach for proposal management will help make the process repeatable and ensure all required elements are in place to be able to make an informed investment decision. Finally, it’s essential to link project management to the proposal, so that if the business case is approved, all the elements of the proposal and its linked development concept can automatically be used to get the project underway immediately. In many organizations today, the primary tools for managing the development of investment proposals are PowerPoint and Word documents, often sent through email. This document-centric approach is extremely prone to errors and sending sensitive information though non-encrypted emails increases the risk of intellectual property leakage.
- 18. Budgets and resources are finite, so investing in the development of a new product means other developments cannot be put forward. It’s vital to manage a well-balanced product portfolio, based on comprehensive metrics, which could include strategic or product-related key performance indicators, as well as measurements of financial performance. This portfolio must be continually analyzed to ensure it fits the company’s product strategy, as well as the budget and resources constraints necessary to achieve other strategic goals. With thorough analysis of these metrics it’s possible to create a roadmap for achieving the right product mix for the company’s desired business outcomes. A standalone tool for product portfolio management will often lack a combination of business and product analytics tied to investment decision processes. STEP #5. PORTFOLIOS MANAGING A BALANCED PORTFOLIO 5 34 35 KEY QUESTIONS TO ASK When creating a proposal management strategy, organizations need to ask questions such as: • How prone are our current processes to risk and errors? • Do we have effective version control in place? • Can reviewers and approvers easily collaborate on proposals using up-to-date information? • Are repeatable processes used to accelerate development projects for approved proposals? Figure 8
- 19. But portfolio investment decisions must be made by incorporating all available information—including ideas, requirements, and concepts— so that the portfolio scenario is based on complete, real, and trusted information. This means the portfolio management tool needs to be an integral part of the overall innovation management platform. INNOVATION MANAGEMENT IN ACTION The challenge At a consumer goods company with several international and local brands, investment decisions were based on a range of methods. With disconnected data information coming from multiple sources, it was difficult to make informed decisions and to assess the business value of each potential project. The solution The Oracle Product Lifecycle Management software solution with integrated Innovation Management and Project Management was implemented to manage a portfolio of innovations and ensure investments will be aligned with strategic goals. The results The company can now make decisions based on reliable, connected information, enabling it to invest in the right projects and kill off those that offer little or no return. It can also define a common approach to identify the best mix of innovation investments to align the product portfolio with corporate strategy and find new ways to capitalize on it established brands with additional, innovative offerings. 36 37 Figure 9
- 20. KEY QUESTIONS TO ASK When establishing a balanced portfolio management strategy, it’s important to ask questions such as: • What difficulties do we have today in aligning our portfolios with corporate strategy? • Is our current portfolio tool linked to our product development activities? • How long does our portfolio review processes take? Who is involved? • How long does it take to create and maintain product roadmaps? Who creates and maintains them? Are they accurate? BEST PRACTICE USE CASES A COMPLETE SOLUTION TO SYSTEMATIZE AND STREAMLINE INNOVATION Ideal for: All companies that create product or productized services can benefit from a complete, integrated solution. So you can: • Transform fragmented product innovation and development processes into a seamless, connected whole • Capture a steady stream of innovative ideas and select the right ones to build into a predictive product portfolio and go-to-market strategy • Analyze the impact of alternative investment scenarios on business objectives to identify the best opportunities to commercialize • Develop requirements that translate ideas into concepts and products that will achieve business goals • Eliminate new products that don’t fit corporate strategy or fulfill the business case early in the development cycle 38 39 1
- 21. SOCIAL MONITORING TO IDEA CAPTURE Ideal for: Capturing ideas from a wide ecosystem is a good starting point for consumer goods companies and manufacturers. So you can: • Use social media to listen to ideas and feedback on products and services from inside and outside the organization • Translate captured ideas into profitable offerings that deliver a clear advantage over competitors IDEA CAPTURE TO BUSINESS CASE Ideal for: Turning ideas into robust business cases is an important consumer goods companies, manufacturers and companies in services industries. So you can: • Quickly capture ideas from internal and external sources in an idea pool to determine the best ideas to advance • Analyze ideas using dashboards to make informed decisions about which ideas to build business cases around • Collaborate with internal and external teams to enrich and refine viable ideas before moving forward with a proposal 2 4 3 REQUIREMENTS DEFINITION TO OPTIMIZATION Ideal for: Defining and optimizing requirements are vital processes for manufacturers, particularly in high technology, industrial manufacturing, and consumer goods. So you can: • Make product development processes more collaborative, connected, and disciplined • Use existing products in the portfolio to avoid duplication of effort and wasted development resources • Refine and evaluate product requirements and gain insight into product readiness • Maintain a complete record of all stakeholder input through social collaboration 40 4141
- 22. 5 CONCEPT FORMATION TO DESIGN Ideal for: Taking a concept all the way through the design process can be a complex challenge for manufacturers. So you can: • Get new products to market faster by synchronizing product development data and processes • Accelerate innovation by using existing products to create new designs • Capture new ideas from different sources through secure social networks • Use analytics to create product concept alternatives and develop cost estimates PRODUCT PROPOSAL TO GO-TO-MARKET CANDIDATE Ideal for: Successfully getting profitable products to market is a key concern in many industries, but digital tools can be particularly valuable for companies in high technology, industrial manufacturing and consumer goods. So you can: • Systematically turn ideas into a profitable product portfolio • Model potential product revenue streams and analyze different investment scenarios • Determine how well an investment fits within budget or resource constraints 6 7 PORTFOLIO REVIEW TO SELECTION AND PROJECT EXECUTION Ideal for: Manufacturers, as well financial services organizations, consulting companies, and companies in other services industries can gain a real advantage with tools to evaluate product and service portfolios. So you can: • Accelerate the product and service portfolio evaluation process • Use analytics to define the most important product and service evaluation criteria • Enhance product and service proposals by securely collaborating with team members • Analyze each potential product and service investment to make better-informed decisions 42 43
- 23. USE A CONNECTED PLATFORM TO SUPPORT YOUR STRATEGY AND PROCESSES If your company regularly drives development of new products and services, or modifications to existing ones, you could benefit from a structured approach that links innovation management best practices to development and commercialization. Top innovation performers have achieved measurable business advantage by modernizing their innovation and development models. With better control of product and service innovation, you too can accelerate time-to-market, increase cash flow, and more effectively balance your product portfolio. Implementing a new approach to innovation does not need to happen all at once. Rather, automating best practice use cases in a phased manner allows you to resolve your most pressing issues faster and more cost-effectively. Begin with a foundational system of record for all product value chain information, such as innovation, development and commercialization data. Then automate related processes aligned with strategy to lower costs and improve productivity. To maximize value and effectiveness, you'll need a software solution that provides best practices out of the box—a connected platform that covers the entire product lifecycle and is ready to scale when you are. Integrated innovation and portfolio management functionality is a must. Your solution should be configurable without the need for customization; cloud-based for fast deployment and ROI; and easy to use, so project managers and decision-makers can work productively, efficiently and insightfully. DEVELOP AN INNOVATION CULTURE The innovation culture in the company plays an important role when you try to improve your innovation processes. You should ensure that all employees in the company are involved in the innovation process. A continuous dialogue between staff and managers is essential, as is the visible involvement of senior executives. The use of IT tools such as internal social networks can also have a huge impact on idea generation and collaboration. This is an enterprise effort—it’s not enough to believe that you will succeed just because you have operational excellence in product development processes. You need to harness the power of innovation of the entire company, not just the RD department. ENSURE PROCESSES ARE REPEATABLE An essential part of best practice product development is to learn from successes and failures. Use analytics tools to gather detailed knowledge about your results so you can repeat successful development processes, avoid known risks, and capitalize on information collected in previous projects. CONCLUSION: THE KEYS TO SUCCESSFUL PRODUCT AND SERVICE INNOVATION 4544
- 24. NEXT STEP: The imperative is clear—now is the time to take control of product and service innovation. Discover how a structured, modern platform can help you accelerate time-to-market, create a balanced product portfolio and achieve business advantage. Visit www.oracle.com/plm to learn more. For a personalized assessment of your product and service innovation process, contact your local Oracle sales person or call +1.800.633.0738 to speak with an Oracle representative. Copyright © 2016, Oracle and/or its affiliates. All rights reserved. Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners. VDL25046 151221.