Romit Dey Sajjad Jaffer

Globalizing Product Innovation

1

Emerging trends in Product Innovation

NASSCOM

Forrester

Product expertise, IP and design capabilities

Capital/ new investments

Execution (relationships, talent, infrastructure)

Ex-CEO Michael Marks: “Design is a commodity” Low-end cell phone market costs: $10M vs Flextronics’ $3M High-end cell phone dev costs: $30-50M vs Flextronics’ $10M

IP and expertise used to reinvent companies’ R&D processes Chips for video game consoles, medical technologies, embedded software

40% of Intel capital investments locked in non-US markets New funds dedicated to India and China based companies

Market for outsourced embedded systems development in India reached $1.6B in 2004

2004 BPO survey: 13% of outsourced engineering work is being done in India, 19% in other Asian countries

2

Drivers for Product Innovation

0 2 4 6 8 10 12 14 16 18 20 Revenue Growth

Take advantage of Complementary External Innovations

Enter into new Geographic Markets

Leverage existing IP

Prod. Differentiation from Competition

Increase Product Profitability

Increase Market Share

Define new Product Categories

Reduce Time to Market

Enter into new Market Niches

*Source: Infosys HTDM Research, Infosys Industry Solutions analysis

Leveraging complementary products across multiple players

Creating product propositions to drive entry into new geographic markets around the world

Enhancing current product portfolio by leveraging existing IP (rather than only relying on basic R&D)

3

Innovation Maturity: Role of Technology

Maturity of technology to support innovation processes

0% 10% 20% 30% 40% 50% 60% 70% 80%

Developing customized solutions for niche markets

Knowledge Management

Intellectual Property Management

Product Configuration

Product Conceptualization Measuring and Tracking

the effectiveness of a product launch Managing your product design

processes through their lifetimes

Typical technology investments confined to PDM & project management

Markets, segments, and product customization- role of technology?

KM limitations hamper product success in emerging markets (BRIC

economies)

Source: Infosys HTDM Research

4

Global Collaboration: Current Challenges

Collaboration in New Product Design & Engineering

0% 10% 20% 30% 40% 50% 60% 70% 80%

Highly automated via PLM, Design portal or collaboration hub

Automated via PLM, portal or hub, but only for project management

Conference calls and videoconferences; exchange of

designs via email/ FTP/ extranet etc

Manually intense/ faxes/ limited direct interactions

Source: Infosys HTDM Research

Collaboration is hard to accomplish (manually intense)

Absence of guiding policies, operating framework, standard processes

Systems support investments have typically been localized to PDM applications and project management tools