ABF Research & Development 2009, Singapore *Applying theory to practice *Matching R&D to Business Strategy and Organization’s Goals *Enhancing R&D efficiency by selecting a key component criteria *Keeping R&D close to where strategic decisions are made

1. R&D TODAY: ADDRESSING AND ENHANCING RESEARCH & DEVELOPMENT’S EFFECTIVENESS Concepts, Case Studies, and Debatable Ideas Kenny Ong CNI Holdings Berhad

5. R&D For What? R&D Product Process

7. A1. Know Your Business The anchor for all decisions

11. What is the Business Model? USP Market Discipline Profit Model

15. Business Model: Profit Model Revenue Cost Margin

18. Strategy: Value Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)

21. Focus: Value Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)

22. Focus: Value Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) www.myCNI.com.my www.OOBEY.com

23. What does the Customer want? * Treacy & Wiersema, The Discipline of Market Leaders , 1995 Product/Service Attributes Relationship Image

24. What does the Customer want? * Treacy & Wiersema, The Discipline of Market Leaders , 1995 Product/Service Attributes Price Quality Time Selection √ √ Smart Shopper Relationship Image Operational Excellence : Quality and selection in key categories with unbeatable prices

25. What does the Customer want? * Treacy & Wiersema, The Discipline of Market Leaders , 1995 Product/Service Attributes √ Brand Time Function √ √ Best Product Relationship Image Product Leadership: Unique products and services that push the standards

26. What does the Customer want? * Treacy & Wiersema, The Discipline of Market Leaders , 1995 Product/Service Attributes √ √ √ √ Service Trusted Brand Relationship Image Customer Intimacy: Personal service tailored to produce results for customer and build long-term relationships Relations

27. Business Situation vs. R&D Upturn Flat Downturn Fight Complacency Sharpen Edge Keep Momentum Conquer NPD Cycle Time Improve Edge Extensions Counter Competitor Innovation Acquire Profits Build momentum Sales Cash Flow Focused on ‘Breakthrough’ JV, In-source, Out-source Eliminate bottom 20% Improve Top 15% revenue-generating products ↓ R&D, ↑ Sales

28. A2. Research Lies. Deception. Statistics.

30. Dangers of Best Practice and Benchmarking… www.myCNI.co.my Company Performance high low ‘ Best Practice’ theories low high zero Performance “ Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005 Trend line

31. Dangers of Best Practice and Benchmarking… Company Performance high low ‘ Best Practice’ theories low high zero Performance “ Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005 Trend line

34. ‘Input’ Filters Mkt Rsc R&D Research Development Filter Filter Filter Marketing Filter

37. A3. Reverse Marketing What we can vs. What we need

39. The “Old” Days Invent R&D Build Manufacturing Market Marketing Sell Sales

40. The “New” Days Invent Build Market Sell R&D Manufacturing Marketing Sales

41. Marketing 101 Product Promotion Pricing Place 4Ps

42. Marketing & R&D Features Brand Target Logistics Product Promotion Pricing Place 4Ps

43. Marketing & R&D Features Brand Target Logistics Price Promotion Place Product IKEA Apple Nestle Asus

44. A4. Align Running in the same direction with the proper resources

45. Strategy: 4-Wheels Philosophy Corporate Objective Corporate Strategy Structure Resources Leadership Person

52. Strategy: Framework Philosophy Corporate Objective Corporate Strategy Structure Resources Leadership Person

53. B. R&D Today -> RD&D R&D in Totality

59. C. Issues and Challenges Problems, Problems, Problems

61. Thank You. soft copy of slides: http://totallyunrelatedrandomanddebatable.blogspot.com/