Current EnvironmentMerger and acquisition (M&A) as a business strategy to quickly gain competitive edge, grow top-line revenue and drive innovation

Massive industry consolidation with over $100 billion in M&A in 2015

Similar level of consolidation predicted in 2016

Determination of product line continuation, consolidation or divesture

Potential ChallengesPre-consolidation: Ensuring business continuity while assessing opportunities to maximize efficiency, productivity and synergy

Post-consolidation: Capturing full merger value of innovation and value realization in new product development (NPD) and new product introduction (NPI)

Aligning of product and project portfolios, innovation strategies, product development execution processes and innovation cultures with revised organization constructs

Opportunities

New Product DevelopmentRoadmapping alignment (product, market, technology)Phase-gate integrationsTime to market/time to margin/time to revenue

Business AnalyticsCurrent P&L portfolioInvest or sell decisions for lines of businessTime for investmentMarket readinessCompetitive market analysis

Data managementDashboardingEngineering and NPI scorecards

Margin ManagementCOGS via DTC and development cost focusProductivity maximization via organizational change management (OCM) focus

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Semiconductor Merger & Acquisition: Driving Top-Line Revenue Growth & Innovation Value Capture

Strategic SourcingStrategy and selection by R&D and procurementOn-time delivery

Market/Current Portfolio Analysis and Assessment of Business Lines

Analysis & AssessmentMake/buy decisionGrow or divest decision EOL decision

Targeted ActivitiesMarket analytics – product lifecycleLessons learned programTraining, closed-loop learningMargin management

We work with semiconductor organizations to deliver better results from innovation.Our services are designed to expand innovation capabilities across functions, business units and geographies, from commercial and engineering to manufacturing and end-of-life.

Wherever you are in your journey to realizing better results from innovation, we can help.

Relevant WorkTwo separate $1B+ semiconductor firms of mixed signal and signal integrity productsChallenge: Underperforming new product introduction (NPI) engine: long delays, high iterations, re-spins, test problems and reliability issues

Approach:

▪ Assembled team of engineers from each of the functions, analyzed and summarized the current strengths/weaknesses/opportunities.

▪ Revamped the NPI flow, introduced phase-gate and portfolio management approach for all projects for clear project and overall portfolio deliverables

▪ Produced 30+ new products and variants every year since 2007

$600M business unit within a major semiconductor supplierChallenge: Heavy R&D spend in a particular business unit with poor returns (i.e. multiple respins, missed releases) resulting in loss of market share, profitability, high incidence of employee exits from engineering

Approach:

▪ Provided market analysis, competitive landscape and current portfolio analysis

▪ Divested the BU and re-invested funds in the high-speed, data-communication segment with excellent overall bottom-line growth

$300M semiconductor design and manufacturing services providerChallenge: Fragmented and sporadic product lifecycle data management amongst engineers using spreadsheets and non-centralized repositories causing inefficient decision making

Approach:

▪ Recommended product lifecycle management (PLM) solution to make fact-based decisions and ready data availability, saving engineering person-hours and improving NPI efficiency

BUSINESS & INNOVATION STRATEGY

FRONT ENDOF INNOVATION

PORTFOLIO &PIPELINE

MANAGEMENT

NEW PRODUCTDEVELOPMENT

EXECUTION

VALUEMANAGEMENT

INNOVATION & CHANGE LEADERSHIP

INTELLECTUAL PROPERTY MANAGEMENT

PRODUCT LIFECYCLE MANAGEMENT

Joe Dury joe.dury@kalypso.com

kalypso.com