This session of Invention Machine's webinar series features guest speakers Tom Wiegele, VP of Technology at Goodrich Sensors and Integrated Systems and Joe Barkai, Practice Director for IDC Manufacturing Insights' Product Lifecycle Strategies Research Service as they share their perspectives on driving sustainable, productive innovation.

1. Driving Sustainable, Productive Innovation
Joe Barkai
Tom Wiegele Practice Director,
VP, Technology Product Lifecycles Strategies Research
Goodrich Sensors and Integrated Systems IDC Manufacturing Insights

2. Webcast Platform

3. Our Topic Today
 Innovation is well recognized as a key to success
 But how to make innovation a repeatable,
sustainable core competency?
Joe Barkai
Practice Director,
Product Lifecycles Strategies Research
IDC Manufacturing Insights
Tom Wiegele
VP, Technology
Goodrich Sensors and Integrated Systems
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4. Company at a Glance
Invention Machine drives sustainable innovation
for manufacturing organizations worldwide
 A leading innovation software
provider with hundreds of customers
in more than 25 countries
 Based in Boston, with offices in six
BLUE GLOBE
countries and a global network of
INSTEAD
distributors and partners

5. Invention Machine Customers
Aerospace &
Defense
Automotive
Consumer
Technology
Energy &
Environment
Life Sciences
Industrial
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6. Invention Machine Goldfire
 The Innovation Software Solution
• Proven problem solving and
opportunity analysis methodologies
• Precise access to internal and
external knowledge
• Innovation collaboration
 Makes innovation a repeatable, sustainable process

7. Driving Sustainable, Productive Innovation
Joe Barkai
IDC Manufacturing Insights

8. Scary Statistics
 About 20% of projects are over time, and 35% of product
companies had experienced at least one runaway project.
 Most products fail to meet expectations:
– Only one out of every 4 product development programs yields a
product that reaches the market
– Two thirds of those do not meet expectations
 46% of the resources allocated to product development and
commercialization are wasted
© IDC Manufacturing Insights Page 8

9. Why Is It So Difficult to Make Decisions?
Time to Market Pressures /
Shorter Engineering Cycles
Shrinking Budgets
Technology Operational
Compliance
Complexity Complexity
Outsourcing/
Partnerships
Knowledge Deficit
Aging Workforce
IP Management
© IDC Manufacturing Insights Page 9

10. Decisions, Decisions, Decisions…
Minimize Time & Costs Minimize Minimize Costs & Inventory
Waste
Requirements Research Design Make Sustain End of Life
Maximize Maximize for Maximize Maximize Maximize
Reuse Performance Efficiency & Service Compliance
, Quality & Productivity; Level &
Compliance Quality Value-add
Services
Reapply Amend Enhance
Continuous Improvement
© IDC Manufacturing Insights Page 10

11. Complexity Exceeds Capacity
 Decision-making is a multi-disciplinary collaborative process
inclusive of all stakeholders, throughout the product lifecycle
– Spans communities of practice, geographies and enterprises
– Multiple diverse technical and business disciplines and practices
– Conflicting business and technology
drivers
 Fewer focal points for product-centric
decisions
– Absence of physical product Complexity
 Changing workforce demographics Capacity
© IDC Manufacturing Insights Page 11

12. Changing Demographics
A Shrinking Pool of Skilled Labor
Workforce Eligible to Retire by 2013
Under 35
Over 50 23%
38%
Workforce Eligible to Retire by 2013
35-49 25%
39%
20%
15%
10%
5%
0%
Source : Aviation Week
© IDC Manufacturing Insights Page 12

13. It’s Not About R&D Budget …
It’s how you use it…
$300,000 3Com
3M
Apple
$250,000 Applied Materials
MSFT Boeing
Boston Scientific
Caterpillar
$200,000 Cisco
Apple Deere & Co.
Mkt Cap
J&J Dell
IBM EMC
$150,000
Cisco Google
HP
HP IBM
$100,000 Intel
Qualcomm J&J
Juniper Networks
Medtronic
$50,000
Microsoft
Dell Juniper Oracle
Qualcomm
$0 Sun
Texas Instruments
0% 5% 10% 15% 20% 25%
R&D (% Revenue)
 Internal R&D spend. Many invest in innovation through acquisitions.
 Size = Revenue FY 08 Source: IDC Manufacturing Insights, 2009
© IDC Manufacturing Insights Page 13

14. Sustainable Innovation
 Align innovation with business strategy
– Vitality vs. stability
– Role of business disruption
 Boost innovation while maintaining balance and efficiency
– Thoughtful vs. reckless innovation
– Market disruption vs. business continuity
 Leaning innovation
– Innovate as necessary
– Reuse as much as possible
– Outsource when appropriate
© IDC Manufacturing Insights Page 14

15. Knowledge Reuse for Efficient Innovation
 Exploit all existing physical and intellectual properties
– Inventory
– Designs
– Expertise and best practices
– Throughout the extended enterprise
 Gains
– Faster time to value, time to market
 Direct reuse
 Manufacturing processes and tooling
 Quality management and ECO containment
– And into the supply chain
 Quality
 Service and warranty forecasting
– Optimization in allocation of scarce resources
– Risk mitigation
© IDC Manufacturing Insights Page 15

16. Making Better Decisions
 Create a product innovation framework
– Aligns innovation with strategy
– Considers all aspects of the product throughout its lifecycle
– Balanced view
 Technology decisions
 Budget and resource allocation
 Role of partners and suppliers considerations
 Enable clear end-to-end visibility and context for
– Innovation needs and opportunities
– What-if & tradeoff analyses
– Risk mitigation
© IDC Manufacturing Insights Page 16

17. Continue learning:
Access the Full Take a Quick
Slide deck & 2-minute
view the Tour of
webinar replay Goldfire
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