1. R&D TODAY: ADDRESSING AND ENHANCING RESEARCH & DEVELOPMENT’S EFFECTIVENESS CNI’s Journey, Mistakes, and Lessons Learned Kenny Ong CNI Holdings Berhad

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

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

13. What are they really buying? Product value Services value Personnel value Image value Mental cost Energy cost Time cost Monetary cost Total customer value Total customer cost Value to Customer

15. 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)

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

18. 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

19. 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

20. 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

21. 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)

22. 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)

24. 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

25. A2. Research Lies. Deception. Statistics.

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

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

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

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

34. Marketing 101 Product Promotion Pricing Place 4Ps

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

36. Marketing & R&D Features Brand Target Logistics Price Promotion Place Product

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

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

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

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

53. C. Issues and Challenges Problems, Problems, Problems

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