Roadmapping Overview Richard E. Albright Technology Office Bell Laboratories Lucent Technologies email@example.com We make the things that make communications work International Technology Management October 28, 1999 Outline • What is Roadmapping? • Comments on Successful Roadmapping • Roadmap Development Process
Roadmaps and Roadmapping A Roadmap • is the view of a group of how to get where they want to go or achieve their desired objective. (Discipline) • helps the group make sure the capabilities to achieve their objective are in place at the time needed. (Focus) Roadmapping • is a Learning process for the group. • is a Communication tool for the group.
Types of Roadmaps * 10-3 10-4 10-5 10-6 10-7 Key Objectives: The National Technology Roadmap for Semiconductors (1997) Identify or Set a Future Direction Coordinate Execution • Science and Technology Roadmaps • ONR, Bibliometric methods • Industry & Government Roadmaps • Semiconductor (SIA), NEMI Component Roadmaps • Aluminum Industry, Glass Industry, • Corporate Roadmaps • Product Roadmaps • Manufacturing Roadmaps • Component Roadmaps • Product Technology Roadmaps Set Direction Coordinate Execution Portfolio Management * Roadmaps can represent the need, current/planned capabilty or both
Product Technology Roadmaps • Disciplined, Focused, Multi-year, Business Planning Methodology • Driven by Market Strategy (Customers & Competition) • Drives • Product Families • Manufacturing & Supply Line Requirements • Linkage • Research • Standards • Intellectual Property • Concise, Cross-Functional Vehicle • Learning • Communications
Product Technology Roadmap Competitor 1 SOFTWARE Research, Manufacturing, Supply Line
Why Roadmap? / Roadmapping Objectives • Roadmapping is just good planning, with a heavy dose of technology (not just an afterthought). • Roadmaps link business strategy and market data with product and technology decisions using a series of simple charts. • Roadmaps highlight gaps in product and technology plans. • Roadmaps prioritize investments based on drivers. • Roadmapping results in better targets: more competitive and more realistic.
Successful Roadmapping Three distinct parts ... Stupid conference table clipart locks up printer Creating the Roadmap Roadmap Content R&D Business Units Others ... Using The Roadmaps … all must be addressed for roadmapping to work.
Summary of MATI I Findings on Roadmapping • Product-Technology Roadmapping is best introduced when: 1. Product is important (growth, profit, strategic) 2. Sustained trends exist in technologies and drivers 3. Product is threatened (and they realize it!) • Don’t automate too much: The challenge of roadmapping is organizational, not technical. Allow the politics, negotiation, and interaction to occur in person. • Be compelling: Highlight the relevant and important items for the target audience, otherwise roadmaps will be ignored. • Showrisk on roadmaps or be careful how much detail is shared … but still set aggressive targets. Readers assume that roadmap content is “certain.” • Avoid metrics that reward “going through the motions.” • Customize output to allow sharing and circulation.
Conditions for Success Requires both: • Top Down Commitment • Business Leader Support • Use Product Technology Roadmaps to manage the business. • Bottom Up Commitment • Core team must see the value in supporting the process • They must have confidence that the roadmaps will be used long term • Don’t get hung up at the roadblocks
Styles of Roadmapping • Intensive- Short term attack strategy • Prompted by new business start, major strategic change or new competitive threat • Multidiscipline team meet several times to “complete” roadmap (and make strategic decisions) • Part of BU Fabric- Culture driven • Develop and maintain roadmaps as part of periodic team meetings (e.g. review a template per meeting) • Review roadmaps periodically at BU-VP level • Use roadmaps to monitor and run ongoing business
Roadmap Development Process The Goal: Develop a consistent, linkedbusiness, product and technology strategy. Business Strategy • Product Strategy • Evolution plan • Customer value • Diff. from Comp. • Technology • Strategy • Attack technologies • IP strategy Value Proposition Step 2 Step 3 Develop linked Technology Strategy Develop differentiating Product Strategy Step 1 Identify Business Strategy & Value Proposition Step 4 Verify strategy meets financial objectives Note: shaded items end up in roadmap templates
1. Market and Competitive Strategy • Clarify and document strategy and goals • Incorporate customer feedback • Provide competitive information • Competitive advantages • Competencies • Strategic goals • Value proposition • Identify markets and targeted segments • Market shares and growth
Step 1: Business Strategy & Value Proposition • Templates: • Competitive strategy & differentiation • Market Growth & Share Identify Scope of Roadmap (what products or markets over what timeframe) Who are the customers? What is the Addressable Market? Identify possible market drivers Refine into customer drivers: * Based on customer perception (customer survey) * Identifies critical few drivers which make up buying decision * Identifies weightings in buying decision * Rates Lucent relative to competitors (e.g. CVA data) Who are the competitors? What is their mkt share, strengths/weaknesses CC, Value prop. & strategy? BUSINESS STRATEGY What do we have? Strengths/Weaknesses Mkt sh., Core Competencies VALUE PROPOSITION
2. Product Strategy Product Evolution Plan Product Roadmap • History and projection in key product attributes • Experience curves set targets • Most critical product attributes • Link product and technology plans to customer and competitive drivers • Prioritize investments • Clarify product release plan • Trends in price, cost and features • Evolution of product features
Step 2: Product Strategy • Templates: • Experience curves • Product attributes and drivers • Product roadmap • Product Evolution Plan Identify possible Product Drivers Minimize set (impact on Customer Drivers) Ours & Competitor history & current position Prioritize (Cust. importance, our capability, business strategy) Business Strategy Est. Comp. trend Set targets Driver Weightings KEY PRODUCT DRIVERS (differentiators) • Product Strategy • Evolution plan • Customer value • Diff. from Comp.
DEFINITION: Product drivers are the critical product attributes that customers make their buying decision on. They are usually measurable or quantitative in nature and are derived from customer drivers. The selection or prioritization of product drivers forms the essence of your “strategic choice”. PURPOSE Identify and communicate most critical product attributes Link product and technology plan to customer drivers Prioritize investments, set long-term targets and determine technology leadership strategy INPUTS Industry history from product announcements (ours and competitors’) Experience curve reference lines Business and technology strategies OUTPUTS Identify trends Identify Lucent’s position to Best Other Vendor (BOV) Long-term targets established PRODUCT DRIVERS • ISSUES • Targets and preliminary driver prioriti-zation can be set up front, but feasibility must be determined through iteration with product and technology plans. • Use experience curves to set targets: 70% slope for leadership usually
Semiconductor Memory (DRAM) Experience Curve Time Trend 64 74 Average Selling Price (cents/bit) 70% Slope 1997 National Technology Roadmap for Semiconductors 84 94 Cum volume (DRAM bits) 10-5 10-6 10-7 1964 1974 1984 1994 2004 2014 • The technology driver for all electronic industries • Repeated, significant changes in product and technology: 4 bit --> 4 Megabit/chip --> ... • “Moore’s Law” used to coordinate the many players in industry
Planned technology changes, and when they will be introduced into products Prioritize technology investments Research and development plans Planned technology trends, grouped by drivers Importance, competitive position, source and funding status 3. Technology Strategy
Step 3: Technology Strategy • Templates: • Technology Roadmap • Forward costing model • Manufacturing drivers • Manufacturing Roadmap • Technology Attack Strategy List key Product Drivers Identify core tech. (impact on Product Drivers) What technologies are you investing in? (align to drivers) Identify possible tech. investments & when available in product Product Strategy Determine tech. importance & competitive position Identify technology source/commitment Technology Roadmap • Tech. Strategy • Attack tech. • IP Strategy
Step 4: Verify Roadmap Meets Financial Objectives Product Strategy. Technology Strategy Business Strategy Dev. $, time, risk Prod. perf. & cost Expected Share of Market Business Case
Central Roadmapping Support Central Support Role in a Multi-Business Corporation: • Deploy • Integrate • Teach • Cross Roadmap Planning • Technology and Business Strategy
Roadmaps and Technology Strategy For Technology Strategy, the CTO’s Role: Common Template Best Practices CTO’s ì í î . . . ì í î Roadmaps Business Units ì í î . . . ì í î Common Technology Needs Technology Acquisition Strategy Research Reviews Technology Portfolio Standards, Intellectual Property CTO’s
Roadmaps and Roadmapping Summary Discipline &Focus Learning & Communications “Where’s the Roadmap? Can I see it? Am I on it? “ “If it’s not on the Roadmap it doesn’t get funded! “