Global New Product Development

(1)

Global New Product Development

Implementing Successful

Transformational Change

David G. Sherburne

Director

(2)

Topic Outline

Snapshot of Carestream Health Inc.

Globalization –The forcing function

Insights for setting up a successful transformation

Learnings Summary

An overview of the Carestream Health project will be

presented later in the conference.

(3)

Carestream Health – Who We Are

An independent company with a proven

track record and $2.5 billion in revenue

A world leader in:

• Medical imaging … digital and film

• Healthcare information solutions

• Dental imaging and dental practice

management software

• Molecular imaging

(4)

Who We Are

Approximately 7,300 employees

serve customers in more than

150 countries worldwide

We hold more than 1,000

patents for technology and

intellectual property

Our products are at work

in 90 percent of hospitals

worldwide

(5)

Who We Are

Rochester,

A global company with Manufacturing and R&D locations around

the world

Oakdale, Minnesota New York Woodbridge, Connecticut London, United Kingdom Minnesota Shanghai, China White City,

Oregon Yokneam, Israel

Baltimore, Maryland Berlin, Germany Windsor, Colorado Ra’anana, Israel Maryland Atlanta, Georgia Xiamen, China Guadalajara, Manufacturing Toulouse, France Paris, France j , Mexico R&D

(6)

The Globalization Challenge

Globalization was required to meet the business needs of our company

• Needed a balanced cost structure • Desired access to global talent poolsDesired access to global talent pools

• Required deeper understanding of emerging markets

Business Challenges

• Legacy Systems were outdated and not easily scalable

• Lack of adequate IT investment resulted in non integrated point solutionsLack of adequate IT investment resulted in non integrated point solutions

• Collaboration became more difficult via e-mail, uncontrolled data with partners • IT Infrastructure and networks were performing poorly in some parts of the

world world

• Complexity in the organization increased as projects decentralized • Knowledge workers time was being drained communicating globally • Productivity of NPD remained roughly flat

(7)

Enterprise Enterprise PDM PDM Authoring Authoring

Legacy-Point Solutions lacking proper architecture and investment

Enterprise Enterprise PDM PDM Authoring Authoring MCAD Tools NX NX MQDS SAP Part Data Confluence Excel CAPA_CAPA Teamcenter No No No Integration No Integration Pro/E Pro/E SolidWorks SolidWorks AutoCAD AutoCAD SAP Lotus Notes DB CAPA BOM El t i l P t CAD Files PDF’s No Integration No Integration MS Project Team Room

CAPA_CAPA Sys 9K RoHS, RoHS, _DoC,_DoC,

Pro/Intralink EQDS No Integration No Integration AutoCAD AutoCAD ECAD Tools Mentor DX Mentor DX _{EE File} Shares SOP DA MMR Lotus Domino Electrical Part Data, RoHS External Systems No Integration No Integration N I i N I i , MSDS (no home) , MSDS (no home) ME File Shares, CIDx No No Cadence Cadence OrCAD OrCAD Altium Altium Shares, library cache _DocManager

Version Control Tools

Systems Standalone Systems Information No No No Integration No Integration

CAD Files PDFs _CQuest

Integratio n Integratio n Software Authoring Desktop Tools (Browser, MSOffi t ) Desktop Tools (Browser, MSOffi t ) Clearcase Clearcase Subversion Subversion PVCS PVCS StarTeam StarTeam ClearQuest ClearQuestDefects Requests Enhancement Requests Manual Integration Flow No Integration No Integration Caused by “Cost Center” mentality MSOffice, etc) MSOffice, etc) DOORS Requirements Management Tools DOORS Requirements Management Tools

Quality Center Automated _Integration

(8)

P j

t t

lit

l l

ti

Demands on NPD Workers Are Increasing

• Project teams are split across several locations

• Platform development is adding complexity in software and hardware

• Iterative methods are desired for software and require fast information

q

transfer

• Daily builds are a common expectation for software

• Fast cycles are required for prototyping hardware

• Design for manufacturability is critical as ties to supplier base become

weaker

• Teams must leverage historical data to improve planning, compare

reliability, and drive improvements

• Engineers are pushed to do deeper analysis to ensure product quality

g

p

y

p

q

y

while coordinating many sources of information

• Requests for metrics and historical data comparisons are ever

increasing and are taking longer to produce

(9)

Our future success required

• A Leadership organization stepping up to create awareness, develop

strategy and drive change to improve operations

• Architectural awareness and maturity in design of enterprise systems

y

g

p

y

• Careful integration strategies between applications- PLM-ERP-ALM

• A master-data strategy - removal of duplicate data sources and multiple

manual data entry points

• Closed-loop processes with traceability across the process space

• Product/HW systems optimized for access and collaboration

y

p

• SW systems optimized for fast cycles and traceability

• Retention of all forms of Intellectual Property, internal and external, to

retain “business flexibility”

retain business flexibility

• Tight integration and traceability across requirements, project

management and engineering change control to meet regulatory

requirements

(10)

Hitting the target- Its not just a simple arrow anymore

People Change

Technology

Driven

Performance

Driven

Change Management Communications

Driven

_Driven

Global Leadership Strategy Technology Process Closed Loop Awareness Leading multi-Cultural Technology Global Applications Architecture Standard Inclusive End to end Co-located and Cultural Change Infrastructure Master Data Global and Focused Global and Distributed

(11)

Considerations required for Enterprise Transformation

• Complete view of New Product Development

“building blocks”

A

i ti

f th

l

it i th “l

”

• Appreciation of the complexity in the “layers”

• Architectural orientation and familiarity with industry

technology

• Process understanding and balance

• Training

Training

• Reporting structure and governance

• Ubiquitous platforms

Ubiquitous platforms

(12)

Complete View – Understanding the Building Blocks

PLM – Product Life Cycle Management Platform

Portfolio – Dashboards, Metrics, Web Channels

ideas SS Prod PDM – Data Management for Hardware ALM – Data Management for Software Proj e Qu a Portf o Ma Service D ideas ideas S UPPORT A S UPPORT A uct Plann i e ct Mana g a lity Data o lio Mana g a nufacture D_elivery , P ideas ideas A BLE P R A BLE P R ing Defini Hardware Design Software Design – g ement -P Manage m g

ement and Sust

a P ubs,T rai n ideas R ODUCT S R ODUCT S tion g Authoring – CAD-ME,EE Design Authoring IDE P CP ment a_in ning SS Integration of Applications and Master Data Strategy Core

(13)

Appreciate the Complexity in each “Block”

Presentation Layer

Web Channels internal and external Social Dashboards BI

Busin

e

Business Process Layer - Standard Workflow and Responsibilities (Engineering Change Control, Production Release Process,

Web Channels internal and external Social, Dashboards, BI Increasi

n

e

ss Proce

s _{(Engineering Change Control, Production Release Process,}

Supplier Quote Process, Defect Management Process)

Application Layer n g Archite c s s Maturit y

Aras Innovator, Teamcenter, Doors, Clearquest and Clearcase

c tural Mat u y IT M Data Layer

System of Record for Master Data Attributes Field Mapping to Metrics clean up

IT Infrastructure Layer

Networks Servers Databases Storage Back-up Archive

u

rity

M

aturity System of Record for Master Data, Attributes, Field Mapping to Metrics, clean-up

Networks, Servers, Databases, Storage, Back up, Archive

(14)

Knowledge Sharing, Social Nets and Webchannel

Desktop Enterprise SystemsEnterprise Systems

Architectural Orientation and Strategic Planning Ability

PLM A I Office, Office, PDM HW MCAD Tools and Webchannel Supplier 1 Supplier 1 KM PLM Aras Innovator

9 Closed Loop Engineering Change Management (HW/SW)

9 Event Tracking and Defect Mgmt 9 CAPA Management Aras Office, Project Office, Project Dashboards-Metrics HW Webchannel/ Social Development Supplier 3 Supplier 3 KM Platform g 9 Audit Management

9 Supplier Access/ DFM Input 9 Supplier Quote

9 ECAD, MCAD PDM Integrations 9 EBOM MBOM M

RQMTS

LN DBs

stems New Manufacturing TransferManufacturing Transfer

Supplier 2

ECAD Tools

ECAD 1 _{Integrated As Built}

M t D t

Raw Material Master

9 EBOM, MBOM Management 9 Costing

9 Commercial Parts Library 9 RoHAS

9 Requirements Change Control

A

uthoring Sy

s _New

Platform SAPSAP

Testing Purchase Portals – ECoutlook Modeling ECAD 2 ECAD 3 Master Data q g

9 ISDE Integration for SW events

Established Standard A Quality Platform Quality Platform Testing Emerging ECoutlook Smart source-Ebid

Integrated SW Development Environment SW Environment)

SW Project Management, Dashboards SW Project Management, Dashboards CM-STD CM-STD

Build Tools and Services. Test Scripting Build Configuration MS Visual Studio MS Visual Studio XCODE Other SW Authoring No St d d Some Integration g g Standard 2012 Proposal ISDE Core

Integrated SW Development Environment- SW Environment)

Management

End of XCODE, Other

Key IDEs Standard

(15)

Business Process Development- Low Level Architecture Æ Swim

Lanes PLI Initiative

Key Points

Drives deeper “use case” discussions Refines functional Refines functional requirement understanding Concentrates people on future state and

future state and

consistency vs current state, holding on to today Swim Lanes Swim Lanes Organization Independent Focuses training development on process p p not button clicks

Focuses test plans for validation on key workflow performance p

(16)

Process Balance Yin-Yang

Suppliers and Partners Suppliers and Partners

Defects

Product Lifecycle Management

Research Concept Retirement

Product Lifecycle Management

Enterprise Resource Planning Application Lifecycle Product Data Management Requirement Management Management Management Management

Balanced representation from p Subject Matter Experts on both ends of the process spectrum

(17)

Training

• Technology and Process are complex, skimping on training

leads to inefficiency and slow adoption

T i i th

t

t f b

i

t T

h

l

• Train in the context of business process not Technology

“button clicks”

• Carefully identify the roles that require training and target

Carefully identify the roles that require training and target

information

• Evaluate self paced training, it’s the hardest to deliver but

most flexible for users

(18)

Reporting Structure and Governance

CTO Office CIO Office

Director R&D Alignment with IT • Ensures Scalability Director R&D Effectiveness David Sherburne

• Architectural focus and alignment • Improved on-going services

• Leverages strengths of both groups

Business Structure

• Sponsors

• Subject Matter Experts • Subject Matter Experts • Middle Managers

(19)

Choose “Ubiquitous” Platforms and “Real” Partners

• Platforms must scale globally

• Provide a cost model in line with business benefit

• Allow web access with solid security

• Enable flexible configuration and integration

• Deliver user performance globally

• Allow for growth over time

• “Real” partners provide a strategic relationship

9 Share in risk

9 Off fl ibl t i li ith b i d 9 Offer flexible terms in line with business needs 9 Partner during implementation

(20)

Aras “Attitude” and Advantages

• Cost model allowed global scale

• Flexible architecture enabled rapid development

50%

i

th

l tf

50% easier than other platforms

• Web based, scalable cost model…

key to ubiquitous access

• Ties to MS Sharepoint, which is being evaluated

for the enterprise

• Good Technical Partnership – Anti-virus performance,

E-Signature help

• Some risk but balanced with High Value

(21)

Complete Teams = Successful Results

Business Process and Technology Partners & Application Leading Change and Metrics Development Application Architecture IT A hit t IT Architecture, Master Data Cleaning and Migration Coding and Configuration Skills for _{g a o} implementation

All skills are critical and critical and

equal for success

(22)

Learnings to Date

• Mindfully consider the elements required for success…

• Carefully craft your team, leadership awareness, project management, and communications skills

• Set project governance and decision rights formally

• Determine your internal critical mass and match with implementation partner development speed

• Ensure business-process work leads and requirements follow • Work in parallel with master data modeling and migration tests • Train in context of the business process not in context of the toolTrain in context of the business process not in context of the tool

• Get involvement of Subject Matter Experts early and often. Cover all disciplines and phases of the lifecycle…. Balance….

• Turn user interface prototypes early fast and review the implementation • Turn user interface prototypes early, fast and review the implementation

approach taken carefully

• Prioritize architecture and code reviews highly; easily skipped

• Verify and Validate functionality using business process diagrams as basis • Verify and Validate functionality using business-process diagrams as basis