Prioritisation - Bob Andrew, NCR
- 1. Prioritisation Bob Andrew, Director Custom Design Services (Financial) NCR Corporation bob.andrew@ncr.com Custom Design Services (Financial) · NCR Confidential 2012
- 2. • What I do… Agenda • 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
- 3. CDS Organisation & Process Discuss Requirement with Regional Deployment Self- Self-funded Engineering Team Part of Hardware Engineering and CTO Organisation Submit SCER Self-Funding Delivery of Bespoke Financial ATM Solutions Process Unique customer requirement Conceive how will the product meet the needs of the Expedite roadmap availability end user, how much will it cost to manufacture, what Secure LOB Approval should it look like, what does the customer want Team Composition Innovate industrial designers and engineers propose Business Development Manager & Group Lead alternative, viable strategies Create Statement of Snr. Programme Manager Inspire using CAD tools and prototypes to ratify, test Work & Project Plan Project Managers and demonstrate all aspects of the engineering concept ($5,000 Charge-out) Senior Design Consultant & Designers Realise dealing directly with the supply chain, ensuring Access to contract NCR Engineering Organisation production readiness and ongoing support. Access to contract external skills as required Go – No Go Product Management (for approval step) Start Development Custom Design Services (Financial) · NCR Confidential 2012
- 4. ATMs & Department Stores - Concessions 31 33 32 34 34 DU 35 36 38 Custom Design Services (Financial) · NCR Confidential 2012
- 5. • Multiple Stakeholders Challenges • 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
- 6. The PLM Ideation funnel Ideation & Portfolio Management - the key driver of innovation Custom Design Services (Financial) · NCR Confidential 2012
- 7. Business Planning Hierarchy Custom Design Services (Financial) · NCR Confidential 2012
- 8. Project Prioritization Model Category Criteria Weights Market Segment Size Market Segment Growth Attractiveness/Fit 2x Opportunity Revenue Impact or Cost Reduction Attractiveness Potential Gross Margins NPV Potential (Funded Projects) or Investment (Unfunded Projects/Ideas) Alignment with Strategic Initiative and Priorities Market Impact 1.5x Strategic Fit Capability Leverage Competitive Advantage Proprietary Position Technical Change 1x Probability of Composite Risk Program Complexity Technical Availability of Skills/Resources Success Platform/Product Leverage Business Model Change 1x Probability of Market Maturity Commercial Competitive Intensity Success Commercial Assumptions Custom Design Services (Financial) · NCR Confidential 2012
- 9. Optimized Portfolio Management Scoring and Prioritization Leadership decision-making Custom Design Services (Financial) · NCR Confidential 2012
- 10. Portfolio Views/Lenses Portfolio View/Lens Question(s) Strategic/Portfolio Question(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. Which projects provide us attractive opportunities that align with our strategic Strategic Fit 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. Are we getting the right returns from our R&D spend? 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
- 11. R&D Spend Breakdown R&D Spend Breakdown for FY2009 in USD ($'000) Field Based Development, $6,000 , 15% New Solution Development, $10,000 , 24% Is our spending mix aligned with our strategic intent? Cost Reductions, $4,000 , 10% Will it help us achieve our near-term and long-term business strategies & goals? Continuation Engineering, $3,000 , 7% Solution Enhancements, Custom Design Services (Financial) · NCR Confidential 2012
- 12. Portfolio Dashboard Custom Design Services (Financial) · NCR Confidential 2012
- 13. Keeping It Simple: 4 ‘P’s Project Failure is Not An Option Highly Important Important People (and Skills) 5 Project Maximum 10-20 Projects 10 Projects Priority New projects added or Ranked in priority ost- Post-Its promoted – One per resource – Colour to indicate skillset Fully Staffed at all times Staffed fully from the top Unstaffed or progressed – Column for priority Dates & commitments if small 100% Test Criteria 1. Essential to stay in business (regulatory) Will take resource from Projects Lower on list Promoted left or capacity 2. Projects already committed one of the other levels received resource when frees up for them to be 3. To maintain market share immediately issues arise available progressed at slower rate or when they have been 4. New Things (growth) on this list too long Custom Design Services (Financial) · NCR Confidential 2012
- 14. Custom Design Services (Financial) · NCR Confidential 2012