R&D TODAY: ADDRESSING AND ENHANCING RESEARCH & DEVELOPMENTS EFFECTIVENESS Concepts, Case Studies, and Debatable Ideas Kenny Ong CNI Holdings Berhad,In other words,How do we make R&D more Effective?,Before that,How is R&D not effective?,Top Down Process problem Because I can - Competency problem Poor business value Ignorance problem No Budget - Alignment problem Not-Invented-Here Ego problem,Contents:,How do we make R&D more Effective? Know Your Business Research Reverse Marketing Align R&D Today RD&D Issues and Challenges,R&D For What?,R&D,Product,Process,SoWhat is our Product?,Research Develop Sell Improve,Coffee? Shampoo? Events? Marketing Plan? Customers?,A1. Know Your Business,The anchor for all decisions,About: CNI,20 years old Core Business: MLM Others: Contract Manufacturing, Export, Trading, eCommerce, F&B retail Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan Staff force: 500 Distributors: 200,000 Products: Consumer Goods and Services,Intro: MLM,Sell through people Relationship & people skills Compensation Plan Follow-up Integrity R&D Training Functions & Events Tight regulations,Intro: CNI,CNIs Business Model background,Factory,CNIE,DC,SP,Leaders,Customers,R&D,What is the Business Model?,USP,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 Model: USP,Insufficient WEALTH Insufficient ACCESS Insufficient SKILL Insufficient TIME,Business Model: Profit Model,Business Model: Market Discipline,Mamak stall,What are they really buying?,“They are the most innovative“ “Constantly renewing and creative“ “Always on the leading edge“,“A great deal!“ Excellent/attractive price Minimal acquisition cost and hassle Lowest overall cost of ownership “A no-hassles firm“ Convenience and speed Reliable product and service,“Exactly what I need“ Customized products Personalized communications “Theyre very responsive“ Preferential service and flexibility Recommends what I need “Im very loyal to them“ Helps us to be a success,Product Leadership,Operational Excellence,Customer Intimacy,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,Operational Excellence Competitive price Error free, reliable Fast (on demand) Simple Responsive Consistent information for all Transactional Once and Done,Customer Intimacy Management by Fact Easy to do business with Have it your way (customization) Market segments of one Proactive, flexible Relationship and consultative selling Cross selling,Product Leadership New, state of the art products or services Risk takers Meet volatile customer needs Fast concept-to- counter Never satisfied - obsolete own and competitors products Learning organization,Strategy: Value Disciplines,The McPlaybook*,Make it easy to eat 50% drive-thru Meals held in one hand,Make it easy to prepare High Turnover Tasks simple to learn & repeat,Make it quick “Fast Food” Tests new products for Cooking Times,Make what customers want Prowls market for new products Monitored field tests,*Adapted from: Businessweek , Februrary 5th 2007,www.myCNI.om.my,Operational Excellence (low 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),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 Leaders, 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,Brand,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 service tailored to produce results for customer and build long-term relationships,Relations,Business Situation vs. R&D,Upturn,Flat,Downturn,Fight Complacency Sharpen Edge Keep Momentum Conquer,NPD Cycle Time Improv