Herbert Klein

Industry Principal, Consumer Goods, Oracle

Biju Jatheendran

Senior Manager - Kalypso

Amy Schauwecker

Sr. R&D Group Operations Manager, Big Heart Pet Brands

Improving Product Innovation in CPG with Oracle Innovation Lifecycle Management Solutions

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.2

“We are increasing productivity, which frees up resources to invest in innovation”

“Innovation remains the cornerstone of our growth”

“Innovation is the prescription for reinvigorating the organization to compete more successfully in a demanding world”

“The strength of the company facilitates our ability to identify, implement and scale innovative ideas”

“The company will devote a greater portion of its R&D resources than in past years to innovation”

“One of our competitive advantages is a focus on innovation throughout the organization that results in successful new products”

The Commitment To Innovation Is Clear

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.3

Innovation Is Really Hard….

More than 80% of new products launched fail to meet their goals

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.4

Innovation Lifecycle Management

In-Market Analytics

New Product Development & Introduction

Discovery

Innovation Data Management

Strategic Portfolio PlanningOptimize the performance of all products and categories

Capture product, technology, market and

consumer insights

Manage “Phase Gate” process from ideation to launch

Monitor in-market performance of the

product after launch

Manage product, supplier, marketing, consumer, engineering and scientific data in one single platform

Leverage a complete end-to-end innovation analytics dashboard to optimize innovation performance

PLM is a Key Enabler to CPG GrowthBiju Jatheendran, Senior Manager

Kalypso is a consulting firm focused exclusively on innovation.Our people are leading business professionals who combine experience in select industries with product and process innovation expertise.

The Innovation EngineOur services are designed to help companies become more innovative and provide a systemic view of new product development

Kalypso Overview

Business & Innovation Strategy

Business Intelligence & Innovation Analytics

Product Lifecycle Management Technology

Innovation & Change Leadership

Front End of Innovation

Portfolio & Pipeline

Management

New Product Development

ExecutionValue

Management

Intellectual Property Management

Our Mission is to help our clients deliver

on the promise of innovation

SUSTAINED RESULTS

INFORMED OPINIONS

COMPREHENSIVE CAPABILITY

FLEXIBLE DELIVERY

EXCLUSIVE FOCUS

What Market Leaders Do Today

Invest in Strong PLM systems

“Sandboxes” for ideation

Incorporate searching capabilities

Amass libraries by function / need

Incorporate “tribal knowledge” into their systems

Transfer technology quickly & effortlessly

Collaborative design / communication tools

Emerging Trends in CPG

Competing aggressively with premium private label and low cost entrants

Integrating and managing disparate supporting IT and knowledge systems

Trying to deliver true breakthrough innovation

Renewed commitment to long term research

Expanding the scope of innovation beyond product

Finding new ways to compete in developing markets Lower cost single use sachets

Going beyond compliance QSR movement toward nutrition transparency

Moving beyond spec management to innovation management

Services innovation and collaborative innovation

Cost based innovation

Many Consumer Goods companies deal with a lot of information technology complexity that prevents them from enabling integrated product innovation that can allow them to better respond and deliver on emerging trends

Inefficient workarounds

Manual / serial processes

Poor visibility

Slow decision making

Customers

Artwork Design

Suppliers Outsourced Partners

Regulatory Bodies

Legal & CA

Procurement

ProductionR&D (US)R&D (Europe)

Marketing

Ideas

Specifications

Samples

Label Data

Audits

Submission FilesArtwork Files

Design Briefs

R&D (ASIA)

Formulas

CAD Quark Adobe ERP SCM

Notes Access EDMS

ERP

ERP SCM MESMCAD Spec DBCADExcel Recipe Mgmt

ExcelProject

Package Designs

How Well Do You Manage Your Product Development Data?

Critical product data grows exponentially as ideas become concepts and finished products enter the market

Early DesignData

Conceptual Data

Product Development/Manufacturing Data

Idea Concept Product Development

Finished Product

ProductionData

= Product Data ClustersEnsuring a single source of truth for all product development isthe base that you need to put in place in order tobuild additional innovation capabilities

PLM for CPG

Complete Master Data & Publish Draft Product Spec

Formulate Prototypes

ProductionTransactional World

Management of ChangeIterative World

Ideation/DevelopmentCreative World

Idea

Experimental Data Regulated Data Production Data

Product Development Promotion to Manufacturing

Concept/Design ApprovalPromotion to Regulated State

ERP

Prototypes

• Entry in Authoring Tools• Creation of the data

Finished Product

Formulated Products – Product Lifecycle StatesDefine Design

Criteria for New Formula

& Ideate

Search, Model & Screen

Formulas

Validate Master Data & Publish Final Product Spec

Evaluate & Select Final

Formula

Commercial Scale

Production

The Role of the Product Record in the Management of Product Data Lifecycle

Authoring tools and PLM systems are used to build the Product Record. The final life-cycle state of products in the Product Record feed ERP’s Master Data.

Samples &Experiments

PLM BackboneAuthoring Tools

PLM for Big Heart Pet Brands and InnovationOctober 2, 2014

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Agenda

• Who we are• Why PLM?• Our Journey• Advice• What’s Ahead

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From: Systems 2 years Ago

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To: PLM

Why?• No single integrated repository for product specification data• Information was repackaged, duplicated and manually re-entered

across systems• Data manually maintained in text documents with manual validation• Mitigate risk and find synergies on acquisitions

Solution: Implemented Oracle’s industry-leading Agile Product Lifecycle Management (PLM) platform to reinforce BHPB’s product compliance and streamlined other systems across enterprise.

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What We’ve Implemented in One Year

10,000+ specs All Brands500 Users

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Our PLM Journey

Managed to implement PDM/SCRM across the company in the midst of divesting our consumer products business, acquiring a new company, and continuing aggressive product development efforts with shared resources.• What’s Worked Well:

– Strategic Alignment from Steering committee– Ease of use and functionality of design– Fully engaged Core team of Subject Matter Experts– Increased Traceability, product management, accountability, and visibility across the business– Integration with our other systems (preventing retyping errors)– Better search-ability – “One source of truth” – Product data hierarchies – Action Dashboard and BI Publisher– Reusability of spec templates and general data– Fewer errors due to more rigorous approval routings

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Challenges

– Data collection, loading, and validating and re-cleansing– Maintaining two specifications systems between integration of data and

keeping data clean– Weight roll-ups– Formulas roll-ups with multi-step complexities.– Workflows and action management; reassigning approvers– Moisture loss adjuster tools – Functionality with MAC’s– Training and maintenance across subject matter experts

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Advice for Anyone Embarking on the Journey

• Involve cross-functional subject matter experts in data migration and validation

• Find the Champion’s in the organization to help communication and training

• Not everything is a priority. Find out what is a “must” for “Go-Live” and keep the rest of the items on the ongoing

improvements list.• Simplify workflows as much as possible. Don’t carryover bad habits

from previous processes. • Be flexible to evolve with PLM

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On the HorizonSpec Change management in PLM

Data Validation Cont’d

PLM Integration into ERP

New Specs Future Modules/Updates

Oct 2014 across all BHPB items as necessary

Through End Oct 2014

By End Jan 2015

Currently entered by Subject Matter Experts across business

Supplier portal- Q4 2014LIO-Q1 2015FC- Q4 2015 as applicable

Questions?

Thank You!

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