Responding to Digital Disruption and Realizing

the Prerequisites for Innovation

Norbert Maleschitz – VP R&D EMEA

Company Confidential Page 2

Exide Technologies

Exide Employees Worldwide

>5.500 in Europe

x 9.300 $ 2.4bnTurnover

FY16

Exide Transportation

58%

GNB Industrial Power

42%

Americas

38%

Europe/ROW

62%

Company Confidential Page 3

Divisions & Application

Transportation

Starting Power

Defense

GNB Industrial Power

Motive & Network Power

Company Confidential Page 4

Trends

• identify

• understand

• respond

Knowledge

• speed of „generation“

• information overflow

• put it into action

Execution

• objectives

• strategy

• roadmap

People

• networking & interaction

• empowerment

• life time learning

INNOVATION

Company Confidential Page 5

Renewable Energy Market

5

› Hybrid and green deployment

› Grid building / Black start ability

› Replacement of diesel generators

› Voltage stabilization

› Optimisation of diesel generators

› Renewable Energy Management

› Self-consumption

› Generation smoothing

› Ramp rate control

› Avoid cut off and switch off

› Time shift

› Grid & Power Quality

› Virtual power plant

› Reducing the need for grid extension

› Voltage stabilization

› Reactive power supply

› Grid building / Black start ability

› Primary / Secondary … Control

› Intra Day

› Back-Up Power (UPS)

› Emergency Power Supply (DC)

› Uninterruptable Power Supply

On-Grid Smart Grid Off-Grid

Company Confidential Page 6

Test Cycles & Electrification of the Car

Deceleration

Acceleration

Constant Drive

Stop2015 2020 2025

SLI µ Hybrid

48V Mild Hybrid Full/Plug-In & EV

GLOBAL OEM PRODUCTION

Company Confidential Page 7

Megatrends

MINDSET

1. While many things change, most things remain constant

2. The future is embedded in the present

3. Focus on the score of the game 4. Understanding how powerful it is not to have to be right

5. See the future as a picture puzzle

6. Don’t get so far ahead of the parade that people don’t know you’re in it

7. Resistance to change falls if benefits are real

8. Things that we expect to happen always happen more slowly 9. You don’t get results by solving problems but by exploiting opportunities

10. Don’t add unless you subtract

11. Don’t forget the ecology of technology

Company Confidential Page 8

Information Overflow

Google Search

• Renewable Energy > 63 Mio results

• Energy Storage > 20 Mio results

• Electric Car > 170 Mio results

• Electric Cars > 33 Mio results

• Battery > 670 Mio results

• Li Ion Battery > 15 Mio results

• Lead Acid Battery > 3 Mio results

Information

• Who can read that ?

• How much of this is really „useful“ ?

• What is just „entertainment“ ?

• 400+ page books

• What happened to the „elevator pitch“ ?

• Big Data to find the „needle in the

haystack“ but the „haystack“ gets bigger

and bigger

• Please bring it to the point

Company Confidential Page 9

„Noise“ vs „Real Music“

• not every information is reliable

• stay curious – make your own calculation

• build scenarios & sensitivity analysis

• focus, focus, focus - “a lot doesn´t help a lot” – ask Jan Frodeno

• respect social factors - buying decision are not always rational !!!

• economically no car which costs more than about 15.000 - 20.000 US$

makes sense but people are buying them

• luxury goods like Prada handbags, Jimmy Choo Shoes, Porsche 911 …

Company Confidential Page 10

Knowledge Stair (acc. North)

Information

Know How

Competitive

Advantage

+ linked

context | experience | expectation

+ practical application

+ correct action (competence)

Company Confidential Page 11

It´s about the people

What is „the company“ ?

organisation which can do

the job better in a group of

people

interaction of people

• if it could be done without

other people or just with

the help of computers -

why create a company –

do it on your own

PEOPLE

Life time learning

Direction & Rules

Networking

Self -realization

SocialSkills

Technology

Company Confidential Page 12

It´s about the peoplenew ways of learning – virtual classroom – requires

ownership of the people faster learning – faster

unlearning - Talent Management is key – internal

market of talents….reward learning in the performance

review

a degree will be more and more obsolte to get a job

what we learn in year 1 might be outdated when we

graduate – (some science still remain for sure –

natural science)

A network is the most empowered organization

form – especially in times of changes

Hierarchies do not self-optimze (sub

optimization) – networks do

Accept the young generation is living a different

life – they also communicate different mobile

phone – in 25 years from „voice“ over „SMS“ to

„Facebook/Twitter“ – different is not bad – the

kids are alright !

open collaboration – get help / help

others – give and take – soft skills

become more and more important –

can´t be / shouldn´t be done by

algorithms (empathy, flexibilitiy, ethics,

moral decision….self driving cars!)

computers don´t take jobs away just

change them – requires different

skills – faster learning between man

and machine – see it as „buddy who

helps out“

danger of too much technology:

see what „spoofing“ did – finance

crash 2009/2010 – high speed

trading - manipulated by „false“

algorithm – people can do the same

but not as fast / not such big volumes

Innovation vs Strategy Importance

of Strategy in the future ?

Culture beats Strategy – for sure

BUT we need both

Innovation is AND not OR

adapt Strategy faster - stay flexible

and adapt quick

We need to learn that we live in a

more complex, diversified world

where both sides existing - the right

balance is key – we will see a more

„parallel world“

PEOPLE

Life time learning

Direction & Rules

Networking

Self -realization

SocialSkills

Technology

Company Confidential Page 13

I n n o v a t i o n s p r o z e s s I n n o v a t i o n s p r o c e s s

Markt Pull

Technologie Push

Marketing

Technology

Research

Idea

Development

Prototype

Production

Successs

innovation is not invention | doesn´t need to be technical | easy to use

customer (problem) success is in focus | selection of ideas

Company Confidential Page 14

Major Phases of Innovation Management

Trending Phase

› Customer information

› Technology Trending

› Market Studies

› IOTA Analysis

› Life cycle analysis

› Technology Portfolio

› Technology Roadmaps

Selection Phase

› Business Case

› Project Statement

› Project Selection & Prioritization

› Project Portfolio

› Development Roadmaps

Execution Phase

› Development Plan

› Project Management

› Project Reviews & Reports

› Multi Project Management

IntroductionStart Up

PhaseMaturity Decline

Total

Market

Volume

Time

0

5

10

0 5 10

Are

na

Att

racti

ven

ess

Business Strengthstrongpoor

low

high

best high risk

conservativno bets

New Products

Improvedproducts

Basic Research

Cost Reductions

Total Budget

Company Confidential Page 15

IOTA – Impact of Opportunity & Threats (acc. R. Cooper)

What threats, changes, trends,

disruptions taking place

How

likely

How

fast

Impact

(pos /

neg)

Risk

Prio

#

Measures

Market

Customers

Value

Chain

Technology

Economy

Legal

Aspects

Company Confidential Page 16

Technology Roadmap

Product

Roadmap

Technology

Roadmap

R&D projects

Resources

Where are we now How do we get there Where do we want to be

TIME

Investments

People & Skills Partners

R1R2 R4

R5R3

T1

T2

T3

T4

P1 P2

P4

P3

Company Confidential Page 17

Gated Governance

G0

Conclude

opportunityG1

Conclude

feasibility G2

Approve

project G2.X

Review

gates

G3

Project

completedG4

Assesment

/ Closeout

Product

Manager

Director

VP, EVP,

CEO

Steering

Board

Steering

BoardSteering

Board

2 days

10 days

30 days

12 – 36 month

here we need to improve significantly

here we need to improve significantly

Company Confidential Page 18

Trends Knowledge

Execution People

INNOVATION

THANK YOU!

Company Confidential Page 19