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1、R&D TODAY:ADDRESSING AND ENHANCING RESEARCH&DEVELOPMENTS EFFECTIVENESSConcepts,Case Studies,and Debatable IdeasKenny OngCNI Holdings Berhad,In other words,How do we make R&D more Effective?,Before that,How is R&D not effective?,Top Down Process problemBecause I can-Competency problemPoor business va
2、lue Ignorance problem No Budget-Alignment problemNot-Invented-Here Ego problem,Contents:,How do we make R&D more Effective?Know Your BusinessResearchReverse MarketingAlignR&D Today RD&DIssues and Challenges,R&D For What?,R&D,Product,Process,SoWhat is our Product?,Research Develop Sell Improve,Coffee
3、?Shampoo?Events?Marketing Plan?Customers?,A1.Know Your Business,The anchor for all decisions,About:CNI,20 years oldCore Business:MLMOthers:Contract Manufacturing,Export,Trading,eCommerce,F&B retailMalaysia,Singapore,Brunei,Indonesia,India,China,Hong Kong,Philippines,Italy,TaiwanStaff force:500Distri
4、butors:200,000Products:Consumer Goods and Services,Intro:MLM,Sell through peopleRelationship&people skillsCompensation PlanFollow-upIntegrityR&DTrainingFunctions&EventsTight regulations,Intro:CNI,CNIs Business Model background,Factory,CNIE,DC,SP,Leaders,Customers,R&D,What is the Business Model?,USP,
5、Market Discipline,Profit Model,Business Model:USP,Unique Selling Proposition(USP)=Targeted Customer=Core Buying Purpose/Customer Value Proposition/Job To Be Done(JBTD),Business Model:USP,“The Product is Not the Product”What is the customer really buying?What is the“Core Buying Purpose”?,Business Mod
6、el:USP,Insufficient WEALTHInsufficient ACCESSInsufficient SKILLInsufficient TIME,Business Model:Profit Model,Business Model:Market Discipline,Mamak stall,What are they really buying?,They are the most innovativeConstantly renewing and creativeAlways on the leading edge,A great deal!Excellent/attract
7、ive priceMinimal acquisition cost and hassleLowest overall cost of ownershipA no-hassles firmConvenience and speedReliable product and service,Exactly what I needCustomized productsPersonalized communicationsTheyre very responsivePreferential service and flexibilityRecommends what I needIm very loya
8、l to themHelps us to be a success,Product Leadership,OperationalExcellence,CustomerIntimacy,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Strategy:Value Disciplines,Operationa
9、l ExcellenceCompetitive priceError free,reliableFast(on demand)SimpleResponsiveConsistent information for allTransactionalOnce and Done,Customer IntimacyManagement by FactEasy to do business withHave it your way(customization)Market segments of oneProactive,flexibleRelationship and consultative sell
10、ingCross selling,Product LeadershipNew,state of the art products or servicesRisk takersMeet volatile customer needsFast concept-to-counterNever satisfied-obsolete own and competitors productsLearning organization,Strategy:Value Disciplines,The McPlaybook*,Make it easy to eat50%drive-thruMeals held i
11、n one hand,Make it easy to prepareHigh TurnoverTasks simple to learn&repeat,Make it quick“Fast Food”Tests new products for Cooking Times,Make what customers wantProwls market for new productsMonitored field tests,*Adapted from:Businessweek,Februrary 5th 2007,www.myCNI.om.my,Operational Excellence(lo
12、w cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Focus:Value Disciplines,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product
13、),Customer Intimacy(best total solution),Focus:Value Disciplines,www.myCNI.com.my,www.OOBEY.com,What does the Customer want?,*Treacy&Wiersema,The Discipline of Market Leaders,1995,Product/Service Attributes,Relationship,Image,What does the Customer want?,*Treacy&Wiersema,The Discipline of Market Lea
14、ders,1995,Product/Service Attributes,Price,Quality,Time,Selection,Smart Shopper,Relationship,Image,Operational Excellence:Quality and selection in key categories with unbeatable prices,What does the Customer want?,*Treacy&Wiersema,The Discipline of Market Leaders,1995,Product/Service Attributes,Bran
15、d,Time,Function,Best Product,Relationship,Image,Product Leadership:Unique products and services that push the standards,What does the Customer want?,*Treacy&Wiersema,The Discipline of Market Leaders,1995,Product/Service Attributes,Service,Trusted Brand,Relationship,Image,Customer Intimacy:Personal s
16、ervice tailored to produce results for customer and build long-term relationships,Relations,Business Situation vs.R&D,Upturn,Flat,Downturn,Fight ComplacencySharpen EdgeKeep MomentumConquer,NPD Cycle TimeImprove EdgeExtensionsCounter Competitor,InnovationAcquireProfitsBuild momentum,SalesCash Flow,Fo
17、cused on BreakthroughJV,In-source,Out-sourceEliminate bottom 20%,Improve Top 15%revenue-generating products R&D,Sales,A2.Research,Lies.Deception.Statistics.,Problem,“In business after business,60%to 80%of lost customers reported on a survey just prior to defecting that they were satisfied or very sa
18、tisfied.”,HBR March/April 1996,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,Dangers of Best Practice and Benchmarking
19、,Company Performance,high,low,Best Practice theories,low,high,zero Performance,“Selection Bias and the Perils of Benchmarking”,Jerker Denrell,Harvard Business Review 2005,Dangers of Best Practice and Benchmarking,Selection Bias:Success Traits=Failure TraitsSuccessful Cases+Failure CasesWorst effects
20、 in Old industriesOvervalue best practice theoriesCurrent accomplishments unfairly magnified by past achievementsReverse Causal,Dangers of Best Practice and Benchmarking,Also known as Beware of Consultants:Selection BiasBig vs.Small companySelective success storiesCorrelation vs.CausalSurvey problem
21、sPractical vs.Glamour-to-haveLeaders who benchmark,Input Filters,Mkt Rsc,R&D,Research,Development,Filter,Filter,Filter,Marketing,Filter,Information Drifts(1/2),Availability Drift:Looking for convenienceYou give more weight to information thats more readily available to you.Experience Drift:Influence
22、d by personal prejudiceYou tend to see things in terms of your personal or professional interest.Conflict Drift:Struggling with beliefsYour natural tendency is to reject information that conflicts with your beliefs.Recall Drift:Trusting your memoryYou more easily recall information about things fami
23、liar to you.,Information Drifts(2/2),Selectivity Drift:Picking your prioritiesYou screen out information and observations about things that do not interest you.Anchoring Drift:Weighing answers too heavilyIf you lack experience in a specific area,you hang on to or anchor to the first information you
24、hear.Recency DriftYou place greater emphasis on what has just happened to you.Favorability DriftYou are more likely to look harder for information that supports your beliefs rather than input that is obvious in front of you.,A3.Reverse Marketing,What we can vs.What we need,What we needed,The birth o
25、f Malaysias 1st Tongkat Ali Ginseng Coffee,The“Old”Days,Invent,R&D,The“New”Days,Invent,Build,Market,Sell,Marketing 101,Marketing&R&D,Features,Brand,Target,Logistics,Marketing&R&D,Features,Brand,Target,Logistics,Price,Promotion,Place,Product,IKEA Apple Nestle Asus,A4.Align,Running in the same directi
26、on with the proper resources,Strategy:4-Wheels,Philosophy,Corporate Objective,CorporateStrategy,Strategy:Framework,Leader vs.InnovatorBloom vs.PruneBreakthrough vs.IncrementalHorizonTiming vs.QualityInternal,External,OutsourcedTopDown vs BottomUpBlockbuster vs.Multiplier vs.Pyramid,Philosophy,Strate
27、gy:Framework,Org StructureJob DesignC&BPolicies&proceduresDecision makingJob fitManagement SystemsBSC and KPIsDecentralized&Empower,Strategy:Framework,TechnologyEquipmentInformationChannelsPartnerships,AlliancesBrandFunding&Allocation*,*Funding&Allocation,CNIs Performance,Market Potential,Sell Outsi
28、deSell IPLicense out IP,Sell IPDrop,Re-investExchange IP,Strategy:Framework,Vision/Mission/PhilosophyLeadership StyleR&D importanceDelegation&EmpowermentC&B,PromotionsSense of UrgencySpeak regularly about customersAppetite for Risk,Strategy:Framework,Specialist Career LaddersCompetencies*Co-habitati
29、onTeam vs.IndividualStandard or Creative?C&B,RetentionToysIn-source?Co-source?JV?BPO?,Strategy:Framework,Philosophy,Corporate Objective,CorporateStrategy,B.R&D Today RD&D,R&D in Totality,R&D Today RD&D,GarnierDigi,Design Point 1:Designed to SELLDesign Point 2:Before-After R&D,R&D Today RD&D,CNI Wate
30、rlife,Design Point 1:Designed to SELLDesign Point 2:Before-After R&D,R&D Today RD&D,Research,Development&DESIGN,FeaturesBenefitsDifferentiation,R&D Today RD&D,Research,Development&DESIGN,FunctionAestheticsLogistics,Design Point 1:Designed to SELLDesign Point 2:Before-After R&D,New Product Developmen
31、t Matrix,Marketing(4.0)Production(2.0)Finance(2.0)Manpower(1.0)Procurement(1.0),C.Issues and Challenges,Problems,Problems,Problems,The Product/Service Innovation Challenge,Add 10 value increasing properties to each product or service every 90 daysReduce jointly held inventories and lead time require
32、d by 90%in 24 monthsReduce new-product/service development cycle time by 75%in next 2 yearsCopy 10 ideas every 60 days form competitors and noncompetitorsTarget%Revenue from New Products(previous 24 months)-start with 50%,Source:Thriving on Chaos,Tom Peters;Alfred A.Knopf Inc.,Thank You.,soft copy of slides:http:/,
