Initiative Success - the P&G Way

Mr. Mills will provide an overview of P&G's corporate Initiative Success program which is modeled after Cooper's Innovation Diamond�: the successful integration of Innovation Strategy, a Solid Idea-to-Launch Process, Portfolio Management and Resource Management. He will discuss the leadership effort that was required to drive such a rigorous, disciplined approach across the complex, global P&G community of 100,000+ people in 140+ countries, and discuss some of the challenges and pitfalls experienced along the way. Mills will also share key highlights of SIMPL� (Successful Initiative Management and Product Launch model), P&G's customized Stage-Gate process.

The key learning's include:

• Why an Initiative�s Success program is essential to drive sustainable business results

• The key components of the P&G Initiative�s Success program

• How P&G achieved a successful global roll-out of the Initiative�s Success Program

• The role of key performance indicators in speeding new products to market

Innovating for Success: A telltale experience in implementing a product innovation process through a business

Innovating for success is a never ending task that is at the root of survival in today�s globalising competition. It takes leadership, commitment and perseverance to ring in the benefits. This presentation will cover the successes, failures and lessons learned through EXFO�s history in deploying an innovation system.

The key learning�s are:

• What is an innovation system and its success factors!

• What are the basis for a good PDP

• A unique approach to linking your Stage-Gate process to strategy and portfolio management

• Measuring performance

Deploying Stage-Gate on a Global Scale �
Critical Elements that Drive Performance

In early 2004, Ansell Healthcare undertook an aggressive initiative to customize and implement a Stage-Gate process for new product development and commercialization. Initially, a cross-functional team was assembled from Ansell's global operations including members from marketing, manufacturing, science & technology, regulatory affairs, finance, and supply chain and logistics. This team also needed to reflect business operations for the Americas, Europe and Asia-Pacific regions. The outcome - a global roll-out of an IBM LotusNotes^� supported, Stage-Gate Navigator� process that was customized for 'local' customs and still supportive of 'global' medical device regulations and protocols.

The roll-out of the Stage-Gate process was met with mixed support across all levels and operations. The initiative required significant training for both the process and software; however, the end result was a global framework and language for NPD. Since implementing this new idea-to-launch process, more than 120 new product ideas have been entered into the pipeline, on average, 12-15 new products per year have been delivered to the market and sales from new products have jumped from approximately 4.5% to 13% in a little over 2 years.

Specifically, this presentation will examine:

• The pros and cons of simultaneously deploying a new idea-to-launch process and automated workflow tool

• The key elements required to implement a global innovation system: leadership, communication, regional/cultural interpretations, the benefits of a common software platform, and the impact on regulatory compliance

• How Ansell evolved product definition requirements to meet strict regulatory & customer requirements

• Next-steps in the execution of Stage-Gate required to make Ansell's NPD process world-class

Gates with Teeth: Implementing a �Center of Excellence� for Investment Decisions

Established in 2003, The Criminal Justice System IT (CJS IT) portfolio was created to facilitate information sharing across the CJS (three government departments and seven criminal justice organizations). However, in late 2004 CJS IT faced rising costs, declining benefits, late projects and consequently the loss of HM Treasury and No 10 confidence. To respond the CJS IT adopted an integrated stage-gate approach to investment appraisal, portfolio prioritization and benefits management of its $3 billion information technology investment portfolio.

Mr. Jenner will discuss the key principles, repeatable processes and results of this highly successful approach including:

• Developing an independent portfolio unit to serve as an Intelligent Customer Function and Value Management Office

• Implementing �gates with teeth� � linking funding allocations to performance � learn about the early challenges and subsequent advantages of more hard-edged gates

• �Triangulation� in investment selection criteria � learn how CJS IT supports financial and economic analyses with business validation and uses an independent research-based scorecard (the �Proving Model�) to assess achievability/risk and attractiveness/return

• The importance of validating data wherever possible and managing the process on an on-going basis

• Key considerations when evaluating Go/Kill decisions for projects with multiple dependencies

• Results have included: early stage rejection of poorly defined projects; a more robust basis for making informed prioritization decisions; transparent reporting provides a �clear line of sight� to ensure improved accountability for performance; a 200% increase in the scale of the benefits case; and a substantial boost in stakeholder confidence and continued funding

Beyond Gates � Building the Right NPD Organization

Recently recognized for its award winning product design, Ethicon Endo-Surgery, Inc. (EES) has been able to leverage its Stage-Gate process to effectively meet customer requirements, deliver innovation and value to its business stakeholders, and drive product differentiation. This presentation will examine their approach to implementing a stage-gate system that goes beyond superficial gates and emphasizes critical steps that transpire between gates.

Ms. Belair will address the following key elements of EES�s Stage-Gate process:

• Key considerations for organizing new product development teams, sponsors and gate-keepers for success

• Achieving accountability � ensuring that the right questions are asked at each gate; holding teams accountable to deliver The best product

• How to �lean� out gate presentations � driving the right behaviors throughout the company

• Integrating DFSS with Stage-Gate � challenges and results

• Best practices including readiness checks, gate scorecards, and the JIT training program

Driving Value Creation with the Right Portfolio Mix

In 2000-2001, Hydro-Qu�bec decided to completely review its R&D management approach in order to improve its effectiveness and maximize value creation. Starting from no processes to a full-scale implementation in just 12 months, this presentation will examine how this large, public corporation was able to implement its new approach using Stage-Gate and portfolio management. Also, the authors will outline how the company was able to focus its resources on the most valuable projects by prioritizing and reducing the number of innovation projects from approximately 450 to 65. Specifically, Mr. Gagnon will discuss the key barriers encountered, the organizational and cultural changes that were necessary for implementation, metrics used and the overall plan for implementation. Today, after six years of operational experience with the new innovation processes, the economic rewards are assessed at more than $1 billion over 2001-2006.

In this presentation, attendees will learn:

• How Hydro-Quebec managed to prioritize and set up the right portfolio � winnowing 450 projects down to 65

• A detailed review of the implementation plan � key challenges and learnings

• About the key elements of Hydro-Qu�bec Stage-Gate and portfolio management processeS

• The results - then and now

Pushing the Envelope � Driving Innovation in a Mature Market

Stage-Gate Implementation � A Catalyst for Achieving a Competitive Edge

Six years ago Kennametal adopted the Stage-Gate philosophy, revolutionizing their approach to new product and process development. Today, NPD is recognized as a strategic tool for growth and product innovation. By making NPD performance a priority and implementing a formal Stage-Gate system, Kennametal was able to achieve new heights in new product development speed, productivity and profitability. Percentage of revenue generated from new product sales soared from 17% in FY00 to 46% in FY06. Cycle time dropped from over two years to a median of eight months as of the last fiscal year. These gains were a direct result of Kennametal�s adoption of new techniques to streamline and scale its 5 customized Stage-Gate processes for Technology Development, New Product Development, Accelerated Product Improvements, New Manufacturing Processes, and Product Obsolescence.

In this presentation, Mr. Novotny will outline:

• How the implementation of a Stage-Gate process created a clear path to a standardized process for managing projects from idea-to-launch

• How Kennametal was able to gain total company buy-in and institutionalize the Stage-gate system as one of its core components within Kennametal's Value Business System

• About Stage-Gate's use in assimilating newly acquired organizations and global partners

• How Kennametal continues to use Stage-Gate processes to achieve a competitive edge by rolling over its many product lines every three to five years on average.

Value Based Product Development: Reaping the Benefits of Effectively Integrating Voice of the Customer with Stage-Gate

Mr. Arra will provide an overview of how ITT Corporation successfully evolved from an organization known for being a �center of manufacturing excellence� to a global product innovation factory focused on profitable and sustainable growth. Specifically, he will discuss the company�s development and implementation of its �Value Based Product Development (VBPD) program. Launched in early 2000, VBPD was developed to ensure that new products create clear value for ITT customers. The program focus involves capturing voice of the customer data throughout the Stage-Gate process to verify that business and customer requirements are consistently met. Mr. Arra will also share the impact of VBPD on ITT�s new product pipeline.

Key issues to be addressed will include:

• Important considerations when implementing a complex, global initiative across multiple divisions, value centers and countries � key factors for success

• Understanding the inherent value and benefits of capturing and integrating voice of the customer data throughout your Stage-Gate process

• How the VBPD program impacted ITT�s new product pipeline - new products, (those introduced in the last three years) now account for approximately 30% of annual sales, nearly doubling their contribution before the introduction of VBPD