kalypso strategic roadmapping deck mar webinarv4
DESCRIPTION
Presentation on Strategic RoadmappingTRANSCRIPT
Strategic Roadmapping
Pamela SoinBrian SharpKalypso
Copyright Kalypso 2008 2
Agenda
• Kalypso introduction
• What value does Roadmapping bring to your organization?
• How do Best Performers utilize Roadmapping?
• Roadmapping Case Example
• The path forward – best practices to charge ahead
04/10/23 www.kalypso.com 3
The Kalypso Difference
Copyright Kalypso 2008 4
Agenda
• Kalypso introduction
• What value does Roadmapping bring to your organization?
• How do Best Performers utilize Roadmapping?
• Roadmapping Case Example
• The path forward – best practices to charge ahead
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Roadmapping is the Link Between Strategy and the Project Portfolio
Str
ateg
ic
Pla
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trat
egic
P
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Por
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io E
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Exc
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Man
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Clear Vision Market Attack Plan
Which direction? Align corporate vision & business strategy
Portfolio Management
Investment Strategy
PipelineManagement
Time
Rev
enue
Reward
Ris
k
Market, Product, & Technology Integrated Roadmaps
Resource Balancing
BusinessStrategy
Product Development Excellence
Stage-Gate Execution
Prioritize investments to meet strategic goals
Balance resources according to priorities & investment strategy
Seamless project execution from concept to market
Strategic Roadmapping
Set product & technology plans to meet business strategy
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Roadmapping Components
1. Time horizon for strategic planning (3 years, 5 years, etc)2. Base dimensions – Information needed to solve the problem
over the specified time horizon– Markets– Product– Technology– Regulatory– Competitor
3. Milestones – Key dates or events– Product launch, retirement– Regulation effective date
4. Relationships – Dependencies between dimensions, and/or milestones
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Roadmapping Translates Board Room Talk Into Pipeline Action
• Business Issue: Business leaders have set organic growth targets that today’s development pipeline cannot fulfill
• Challenge: Where do we play and when?
Roadmapping integrates the dimensions (market, products, technologies, etc)required for the business to develop a plan of action to meet today’s challenges…
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2016 Retire
Full Launch
Development
$(2015 Stabilize)
Development
2012 2014 2016 20182010Critical Market 1
$(2011 Begins Decline, X% annual)
Critical Market 2
$(2011 Growing X %)
2012 Full LaunchProduct 1
Product 2Development 2014 Full Launch
2013 RetireProduct 3
Product 2
Technology 1
2010 Available Technology 2
Development 2014 Available
Technology 2
Integrated Roadmaps With Relationshipsare a Tool for Strategic Decision Making
• Will reallocating resources on Technology 1 increase the probability of releasing Product 1 before the value of the market drops?
• Can the release of Product 1 allow for an earlier retirement of Product 3?
• How can the release of Product 2 be moved ahead of schedule to capture growing Market 2?
• What products are planned to be used with Technology 2 since it impacts a strong, growing market?
Typical questions asked during market, product, & technology strategic Roadmapping:
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Agenda
• Kalypso introduction
• What value does Roadmapping bring to your organization?
• How do Best Performers utilize Roadmapping?
• Roadmapping Case Example
• The path forward – best practices to charge ahead
Copyright Kalypso 2008 10
Best Performers: How Do They Use Roadmapping to Realize Returns?
• Link product and technology development– Are the right projects being worked on at the right time to
meet investor expectation?
• Communicate product line strategies/platform strategies – How do we plan new generations, retirements, upgrades,
releases & pricing shifts according to market trends?
• Translate consumer insights into development activities– Where are we not meeting customer requirements with our
offerings and what actions are required?Where do we play and when?
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Best Performers: What They Understand About Roadmapping that the Rest Don’t
• Maps strategy into development activity
• Process must be championed by a strategic function and maintained to realize benefit
• Requires cross functional input across the organization
• Integrates directly into the organization’s strategic planning cycle & portfolio reviews
• Is not a formula that delivers an exact answer – thinking is a requirement!
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Roadmapping Capabilities – an Evolution Rather than a Revolution
Stage 0: Informal
Role of Roadmapping as a strategic planning tool isn’t clear
No distinct linkage to the Project Portfolio
No clear definition of the issues roadmaps need to address
No formal, consistent approach to manage base roadmaps
No standardized data collection
.
Stage 1: Functional
Enabler
Roadmaps are created on a functional level for functional tactical planning
Roadmaps are paper or MS office based
Data collected but standard assumptions not used in all cases
Roadmaps live on hard drives or shared drives
No clear roles on roadmap maintenance and review exist
Stage 2:Strategic Enabler
A consistent, cross-functional approach is used to manage roadmaps to solve business issues & define strategy
Data standardized for reliable decision making
Timely reviews of integrated roadmaps exist in strategic planning cycles
Roadmaps are incorporated into portfolio planning
Stage 3:Leading Practice
The organization actively uses roadmaps to solve business issues & define strategy into pipeline activity
People, processes and a support technology are in place for quick roadmap generation to provide real-time data to make quick, informed decisions about the business
Str
ate
gic
R
oadm
app
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Perf
orm
ance
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Agenda
• Kalypso introduction
• What value does Roadmapping bring to your organization?
• How do Best Performers utilize Roadmapping?
• Roadmapping Case Example
• The path forward – best practices to charge ahead
Newly Integrated Business Unit Requires Go-To-Market Strategy
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Execution and Validation in MarketExecution and Validation in Market
• Value Maps• Head-to-Head Charts• Value Waterfalls• Competitor Analysis• Differentiated Value
Propositions
• Value Maps• Head-to-Head Charts• Value Waterfalls• Competitor Analysis• Differentiated Value
Propositions
• Partnerships or Acquisitions
• New Bundles
• New Service Options
• Alternative Routes to Market
• Novel Marketing & Sales Approaches
• Risks & Exposures
• Partnerships or Acquisitions
• New Bundles
• New Service Options
• Alternative Routes to Market
• Novel Marketing & Sales Approaches
• Risks & Exposures
• Business Unit Strategy
• Commercial Roadmap
• Tactical Plan• Prioritized Activities
• Business Unit Strategy
• Commercial Roadmap
• Tactical Plan• Prioritized Activities
Strategic Options
Strategic Options
CompetitiveAnalytics
CompetitiveAnalytics
Business Strategy Business Strategy
Commercial Roadmap Phase Determines How Business Will Meet Strategic Plan
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Competitive Analytics
Competitive Analytics
Commercial Roadmap
Commercial Roadmap
Tactical PlanTactical Plan
Strategic Options
Strategic Options
Objective Output
Comprehensive value assessment of current
and potential offers
Comprehensive value assessment of current
and potential offers
Competitive Assessment of Solution Portfolio
Competitive Assessment of Solution Portfolio
Development of mid-to-long range business unit
strategy
Development of mid-to-long range business unit
strategy
Identification of key milestones and the time-based linkages
between strategic imperatives, key initiatives and functional
teams
Identification of key milestones and the time-based linkages
between strategic imperatives, key initiatives and functional
teams
Identification and prioritization of current
activities
Identification and prioritization of current
activities
• Definition of Key Initiatives• Transition & Capacity
ManagementStop doingsStart doings
• Definition of Key Initiatives• Transition & Capacity
ManagementStop doingsStart doings
Identification of most attractive strategic
options
Identification of most attractive strategic
options
Tactical plan to exploit options Who When How
Tactical plan to exploit options Who When How
Business StrategyBusiness Strategy
Confirmation of strategic imperatives and key
initiatives
Confirmation of strategic imperatives and key
initiatives
A succinct articulation of the Business Unit Strategy to drive alignment and focus across the
new organization
A succinct articulation of the Business Unit Strategy to drive alignment and focus across the
new organization
The Business
Roadmap
Actionable 5-yr. Roadmap Documents How Business Unit Will Meet Strategic Plan
Windows Solution Strategic Roadmap
Current 2009 2010 2011 2012 2013 2014
PC
Par
tner
ship
&
Cap
abili
ties
Pul
trusi
onS
TP
Sea
lant
Trig
gers
&
Mar
ket D
river
sM
arke
t Ini
tiativ
esR
IMTP
UR
egul
ator
, Cod
es &
A
dvoc
acy
HurricaneIke
Insurance Companies requiring more stringent Building Requirements
DOE zero energy building initiative for Residential (to 2020)
1st Commercial Specifica-
tions
Residential Code
Changes?
Commercial Code
Changes?
Advocacy of BMS Solutions at Berkley National Labs
1st Commercial
Sale
Validate Value Prop
with formulator
Validate Value Prop& needs for
Storm Guards
Validate Value Prop
for Residential
Gain commitment from partner for scale up
Establish prototype solution
Advocacy of architects/insurers, requirements of blast or vandal window solution
Pull-through advocacy with architects, OEMs, insurers, govts.
1st Commercial Specifica-
tions
Blast & Vandalism risk continues to escalate
Margin 2
Margin 2
Validate Value Prop
for Commercial PC
Establish production of Blast/Vandalism window solution
Sellable window solution
Validate with
Deerfield
Validate pre-lamination process, lamination process and test to specification
Validate Value Prop Commercial
Window market
Go / No Go
Validate Value Prop
for Residential
Establish target buyers/partnersComplete trials and testing
Windows OEM establish pultursion capacity
Closing Sales
(commitment to buy)
1st Shipment
Go / No Go
Validate Value Prop for Commercial vs.
Aluminum
Determine path to market
1st sale
Determine path to market
1st sale
Prototype
1st shipment
1st commercial
sale
Pultruded Thermal Break Traco – can they achieve it?
ID design firm for Storm Guard market
ID Storm Guard channel-to-market(High-end and/or low-end)
EnergyStar
Requirement raised
Design BMS-Sheffield solution to match OEM requirement
Develop next generation STP sealant technology (6-9 months)
Viable Channel
Pull-through advocacy with architects, regulators, etc.
Gain shelf-space and sales at retail channel
Gaining approvals, recommendations, and private label contracts with Windows OEM (8 months)
Co-develop Window Solution with Commercial Window OEM
ATPU resin development for glazing
Launch next gen.
STP product line
Develop and Test Storm Guard solution
Validate lamination process and test to specification
Validate with
Sheffield
Determine interest and solution concept for RIM Encap in
commercial market
Establish target buyers (suspects vs. prospects)
Establish target buyers (suspects-to-prospects)
Determine path: Blast? Wind? Vandalism?
Define preferred solution(s) for Season Guards : commercial, residential, retrofit, etc.
Cultivate go-to-market partnership and plan with formulator(s)Develop a line of STP sealants (≈ 6 mths)
Go/No Go Tech
Feasbility
Establish partnership/develop end solution with Commercial OEM(s)
Define OEM
require-ment
Refine Value Prop & Target
Complete feasibility of technology with Residential Window OEM
Complete trials and testing at target companies
Identify path to full-scale production including capital investment
Establish RIM
option
Residential Window OEM: prepare launch of RIM window line
RIM window launch
Residential
Commercial
Launch STP sealant
line to Window OEM
Launch STP Sealant
to retail sector
Key technical and commercial milestonesRoute to 1st saleRoute to scale revenues and profits
An integrated roadmap with the following dimensions was developed…
Triggering events (e.g., Hurricane Ike)Market drivers & trends (e.g., pressure from insurance companies for storm protection)
Regulations & codesAdvocacy initiatives targeted on key influencers (e.g., commercial architects, government, etc.)
Market initiatives by 3rd parties (e.g., joint development and marketing activity with channel)
Strategic partnerships
Internal Capability Development Product Development
Copyright Kalypso 2008
Key Insights Gleaned…
• The pre-existing 5 yr. sales outlook for the business was overstated by around a $100 million.
• A key integration point was identified linking the new business unit to a team working on fundamental research within the corporation
• Seven key milestones in 2009—most of the milestones are of a ‘go/no go’ variety and will dictate the future direction of the business unit
• Each key milestone was assigned to a team and team leader with direct linkage to performance and compensation plans
• Significant over-investment was identified in terms of one of the dimensions
• Opportunity for significant project consolidation in some functional areas
• Roadmap clarified the need to change the organizational structure of the sales and marketing team
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Agenda
• Kalypso introduction
• What value does Roadmapping bring to your organization?
• How do Best Performers utilize Roadmapping?
• The path forward – best practices to charge ahead
Copyright Kalypso 2008 19
Steps to a Successful Roadmapping Implementation
Select a Portion of the Organization to Pilot the Roadmapping ProcessSelect a Portion of the Organization to Pilot the Roadmapping Process22
Determine the Base Roadmaps Required to Solve the Business IssueDetermine the Base Roadmaps Required to Solve the Business Issue33
Organize a Core Implementation Team with Executive SponsorshipOrganize a Core Implementation Team with Executive Sponsorship44
Determine a Solution to the Business Issue using Integrated RoadmapsDetermine a Solution to the Business Issue using Integrated Roadmaps55
Initiate Roll-out of Roadmapping to the Rest of the OrganizationInitiate Roll-out of Roadmapping to the Rest of the Organization66
Identify the Business IssueIdentify the Business Issue11
Choose an Automation Tool to Enable Roadmapping ActivitiesChoose an Automation Tool to Enable Roadmapping Activities88
Measure Roadmapping Process ComplianceMeasure Roadmapping Process Compliance99
Integrate Roadmapping into Strategic Planning Cycles & Portfolio ReviewsIntegrate Roadmapping into Strategic Planning Cycles & Portfolio Reviews77
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Parting Messages
• Roadmapping is evidence to build a strategy, it is not the answer
• Link Milestones to individual performance, product development teams, and the business
• Clearly define the problem as much as you can before you endeavor on the pilot
• Team must be cross-department and championed by a strategic horizontal group
• Have roles & responsibilities vetted by the pilot process before roll out
• Enable with software only when fundamentals are instilled
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Presenters & Further Information
www.kalypso.com
Brian SharpPractice Leader
Pamela’s main focus at Kalypso is in Strategic Planning and Product Lifecycle Management. Pamela has servedclients in the Medical-Device, Discrete, Hi-Tech and Consumer Package Goods industries. Her main expertise is in Project Portfolio Management Design & Implementation for tele-com, specialty chemical, bio-tech, and healthcare. Her other areas of expertise are in: Strategic Roadmapping, IP Commercialization, Product Lifecycle & Product Data Management, and Lean Manufacturing. Prior to joining Kalypso, Pamela worked for Ingersoll-Rand Company as a Lean Manufacturing Leader for manufacturing plants. Pamela has a BS in Industrial Engineering from North Carolina State University.
For more information on Roadmapping, Portfolio Management, PLM Strategy or any other Kalypso Service you may contact Pamela directly:
Mobile: [email protected]
Pamela SoinSenior Consultant
Brian leads Kalypso’s Profit Improvement Practice. His client work is focused on the integrationof business strategy with value science. Brian is currently leading several large scale strategy engagements at leading global technology companies.
Brian was with Lord Corporation, a high tech industrial manufacturer serving the Aerospace & Defense and Auto industries where he led their global automotive business. Prior to that, he held a variety of commercial leadership roles in Europe, Latin America and Asia with BP and Castrol.
He received a BS in Chemical Engineering with a concentration in Bio-medical Engineering, from the University of Texas at Austin.
For more information on Roadmapping, Value Management, or any other Kalypso Service you may contact Brian directly:
Mobile: [email protected]