Innovation & Globalization: Yin and Yang. Symphony Services Breakout Session May 9, 11:00 a.m. Room 210

Transcription

1 Innovation & Globalization: Yin and Yang Symphony Services Breakout Session May 9, 11:00 a.m. Room 210

2 Innovation & Globalization: Yin and Yang How do you push a penny through a small hole? Demonstration shows the first thing you need for innovation is an open mind.

3 Today s Discussion Moderator Jerry Smith Chief Technology Officer, Symphony Services Panelists Robert Gersten Chief Development Officer, Oracle / Hyperion Gordon Brooks President and CEO, Symphony Services Ed Spire Senior Director, Technology and Architecture, Office of the CTO, Attachmate / NetIQ Uresh Vahalia VP Engineering, Network Attached Storage, EMC Corporation

4 R&D Goes Global Number of companies with R&D functions outside HQ country is increasing Today 65% Predicted in three years 84% India United States China Canada Germany Japan Ireland Finland South Korea Switzerland Other Best overall overseas locations for R&D? Source: The Economist Intelligence Unit 2007

5 Globalizing R&D is Not Outsourcing Innovation % Growth Based on New Implementations in % Procurement Offshoring Growth Rates Increasing in Innovation-centered Functions 50% 50% 48% Product Development Finance/ Accounting Marketing & Sales 43% 43% IT Call Centers/ Help Desk 40% Engineering Services 38% R&D Source: Duke University / Booz Allen Hamilton Offshoring Research Network 2006 Survey

6 It s About Expanding Global Talent Networks so Innovation Can Continue % of Responses important or very Important Access to Qualified Personnel as a Driver of Offshoring is Most Significant for Innovation-centered Functions 74% Product Design Engineering, R&D 71% 67% 66% 45% IT Administrative Back Office Call Centers Procurement (BPO) Source: Duke University / Booz Allen Hamilton Offshoring Research Network 2006 Survey

7 Open Innovation Is Picking Up Steam Outsourcing an increasingly common collaboration method Number of companies outsourcing R&D Today 64% Predicted in three Which external partners collaborate with you in R&D processes? Universities and educational establishments Customers Suppliers Alliance partners Joint venture partners Third party vendors via outsourcing arrangement Competitors (e.g. in the production standards) Other years 75% Source: The Economist Intelligence Unit 2007

8 \in no va tion\ The successful implementation of an invention or idea that adds sustained value that can be measured in the form of new revenue and more profit culminating in increased valuations.

9 Global Innovation Models Innovation Networks Open Innovation Vitality Index Innovation ROI

10 Global Innovation Success Factors Collaboration and Context Getting teams to a seamless level of operation so you can co-create whenever, where ever. Common Innovation Processes The systematic elimination of obstacles to enable full exploitation of innovation to achieve business results with distinct measures and metrics. Culture of Innovation Recognizing and managing cultural characteristics so they don t interfere with outcomes. Bringing clarity on aspects that should be embraced, rewarded and establishing norms. \in no va tion\ Inventions that are implemented to realize measurable value.

11 Challenges Collaboration and Context Culture of Innovation Common Innovation Processes Q: Robert Gersten How did you tackle the biggest challenges to seamless collaboration? How are you addressing your ability to innovate with partners now and in the future?

12 Secrets of Success Robert Gersten, Chief Development Officer, Oracle / Hyperion excerpt from session at Software 2007 Multi-shore teams are a strategic imperative for us. We took action 4 years ago with a philosophy of mutual respect, goal-alignment and working with partners in a way that extends our culture. A high percentage of the create work on our flagship product is done at Symphony. We've had turnover but we also have a core group of people who have been with us since the start four years ago. This has given us a foundation from which to approach global innovation. Market driven development is about getting close to customers. The maturation of the software industry and of global innovation processes is making innovation critical now. A subset of our team at Symphony includes a small Innovation Team that has a pure focus on generating new ideas. They are helping to provide the dynamic technical environment necessary for sustaining our ability to innovate.

13 Challenges Collaboration and Context Culture of Innovation Common Innovation Processes Q: Gordon Brooks What challenges have you faced evolving the culture of your firm to become a source of innovation for clients? Are there best practices other organizations could learn from?

14 Secrets of Success Gordon Brooks, President and CEO, Symphony Services excerpt from session at Software 2007 Our clients are not outsourcing innovation, they re globalizing R&D and expect to get innovation along with increased productivity and speed to market. My company s success depends on the ability to deliver higher and higher levels of value. Innovation is top of mind now due to customer demands and the maturation of the software industry along with global innovation processes. Ideas are like film on the cutting room floor for a movie. 3M knew what to do with their mainline products and with some of the stuff on the cutting room floor we got sticky notes. The message is innovation has to be managed and the wrong culture can kill it. So we ve been building a culture of innovation and implementing a management system to recognize and eliminate whatever interferes with desired innovation outcomes and business results behaviors, norms, metrics and rewards. We ve trained Innovation Mentors and installed; dashboards, portals, reward systems, and tighter implementation processes. Now we are taking it to clients in the form of Innovation Teams, Innovation Labs, and Joint Innovation Councils. All this structure is a means to manage the ROI for innovation both our investment and the investment our clients make in us but it s also a way to open minds so that innovation can happen.

15 Challenges Collaboration and Context Culture of Innovation Common Innovation Processes Q: Ed Spire How have you approached global development with partners given your explicit goal of innovating? What has your experience been like and what advice can you share?

16 Secrets of Success Ed Spire, Sr. Director, Technology and Architecture, Attachmate / NetIQ excerpt from session at Software 2007 Innovation is important now because of the imperative for growth to solve new problems or extend today's solution. To us, innovation is the result of recognizing opportunity and bringing together the right people wherever they are to get it done. But you have to approach global R&D right. There are no 2nd class citizens. Our multi-national architectural group meets weekly and is focused on making a better product. The team we have in Bangalore with Symphony is not extra help. They are a vital part of our overall team. We've turned over almost everything about our most important products. We are leveraging engineering talent and treating them as equals in full cooperation and collaboration. We have been very pleased.

17 Challenges Collaboration and Context Culture of Innovation Common Innovation Processes Q: Uresh Vahalia What are the biggest challenges to achieving innovation from global R&D efforts? What innovation process frameworks are you using, especially in the context of bringing partners into the process?

18 Secrets of Success Uresh Vahalia, VP Engineering, Network Attached Storage, EMC excerpt from session at Software 2007 The foundation for global innovation is the right environment. It's very important to start out on the right foot. If you are heavily cost motivated or view the offshore team as a way to get things done that the U.S team does not want to do, you will fail. Take time up front to set things up right. Make sure the team understands the strategic and competitive situation of your business and your products. Our team with our partner is hungry for innovation and the work we are doing together has a lot of innovation in it. You need clear outlets for sharing ideas, a consistent process for making go/no go decisions, and a focus on execution. The worst thing for an innovator is to spend a year on a cool idea but not be able to bring it to the product.

19 Put Your Challenge To the Panel

20 Successful Global Innovation How do you push innovations through today s extended R&D and engineering organizations?