prioritisation - bob andrew, ncr

Custom Design Services (Financial) ···· NCR Confidential 2012

Prioritisation

Bob Andrew, Director

Custom Design Services (Financial)

NCR Corporation

[email protected]


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’


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


ATMs & Department Stores- Concessions

3432 383634 DU31 33 35


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


The PLM Ideation funnel Ideation & Portfolio Management - the key driver of innovation


Business Planning Hierarchy


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


Optimized Portfolio ManagementScoring and Prioritization Leadership decision-making


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?


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?


Portfolio Dashboard


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