Roadmaps for Global Platform Products

The Albright Strategy Group Roadmaps and Roadmapping Technology Futures Strategy www.albrightstrategy.com Roadmaps for Global Platform Products Devel...
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The Albright Strategy Group Roadmaps and Roadmapping Technology Futures Strategy www.albrightstrategy.com

Roadmaps for Global Platform Products Developing and Launching Global New Products Product Development Management Association February 6, 2002 Richard E. Albright The Albright Strategy Group [email protected]

© 2001 The Albright Strategy Group, LLC

Key Points • Roadmaps and Roadmapping Help people clarify, link, communicate and execute plans.

• Product-Technology Roadmaps Enable product teams to link business strategy, product plans, and technology development. Help coordinate across product lines and enable clear communication with customers and suppliers.

• Product Platform Roadmaps Coordinate component subsystems or local features/adaptation. Track progress, gaps, and help the team identify when changes are needed. 2

© 2001 The Albright Strategy Group, LLC

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.

3

© 2001 The Albright Strategy Group, LLC

Types of Roadmaps * • Science and Technology Roadmaps

Identify or Set a Future Direction

– ONR, Bibliometric methods

• Industry & Government Roadmaps

Coordinate Execution

The National Technology Roadmap for Semiconductors (1999) -4 1.E-04 10

DRAM cost/bit

Key Objectives:

– Semiconductor (SIA), NEMI Component Roadmaps – Aluminum, Glass, Forging

– Product Roadmaps – Manufacturing Roadmaps – Component Roadmaps

-6 1.E-06 10

-7 10 1.E-07

1995

Set and Monitor Direction, Coordinate Execution, Portfolio Management

– Product-Technology and Platform Roadmaps

* Roadmaps can represent the need, current/planned capability or both 4

2000

2005

2010

2015

2000

20 0 5

20 1 0

2 0 15

10 0 0 0

transis/chip (M)

• Corporate Roadmaps

-5 1.E-05 10

1000

100

10 1 99 5

© 2001 The Albright Strategy Group, LLC

Product-Technology Roadmap A Business Planning Tool Feature Evolution Plan Last Year

Now

+ 1 Year

+2 Years +3 Years

VISION

Product Evolution Plan End User Value

Product Architecture

Risk Roadmap

Antenna

Risk Categories

Display

NOW

Market

Battery

RF

Risk m1 [.4]

(growth,strategy, product attributes, etc.)

+2Q

+4Q

+6Q

Risk t1 [.2]

Risk t2 [.1]

LONG-TERM

Risk m2 [.5]

Risk m3 [.2]

market events

Technical (component or system performance)

Risk t3 [.5]

test events

Baseband

Experience Curves

Forward Cost Model

Competitive Strategy

$200.00

Housing

Keyboard

PWB ICs Discretes Software

Manuf acturing Cost

Component #3 Component #4

Customer Solutions

Specialized Labor Installation

$150.00

System Lock-In

Misc. TA RGET

(what can be varied in the product)

Competitive Landscape

KEY DRIVERS: KEY DRIVERS:

Competitor Strengths(+)and Bonding (share;base) weaknesses(-) (how to gain

CoreCompetency

StrategicGoals

Current Current Position Position lag lag lag lag Parity Parity

1. Product Driver #1 1. Product Driver #1 2. Product Driver #2 2. Product Driver #2 3. Product Driver #3 3. Product Driver #3

Metric

ValueProposition

Req’d Req’d Invest. Invest. M M H H M M

Goal Goal Parity Parity Lead Lead Lead Lead

SECONDARY DRIVERS SECONDARY DRIVERS 4. Secondary Product Driver 4. Secondary Product Driver 5. Secondary Product Driver 5. Secondary Product Driver 6. Secondary Product Driver 6. Secondary Product Driver

advantage)

Company

COGS

Product Driver/Targets

Scope

$100.00

2000

2001

2002

2003

Target

Component #1

$89.21

$79.21

$60.00

$45.00

$39.00

$28

Component #2

$20.00

$19.53

$18.00

$17.00

$15.00

$10

Component #3

$10.50

$9.38

$8.45

$4.37

$2.05

$2

Component #4

$15.40

$14.11

$12.30

$8.50

$8.30

$8

Specialized Labor

$5.00

$4.50

$4.30

$4.10

$3.10

$5

Map to Elements Installation

Misc.

10.0

Product Drivers

$9.43

$8.33

$7.95

$6.58

$6.34

$4.67

$4.35

$4.23

$4.21

$4.15

$5

$78

$62

$4

$5

$154 $139 Roadmap $115 $90 Technology Product Elements $25 $15 $7 $5

Material Cost

$50.00

Manufacturing Cost

Architectural Fit

XXX

Ease of training and use

$0.00 1999

red = “World Class” red = “World Class”

1.0 1997

(x%; y%)

1998

1999

2000

2001

2002

2003

2000

2001

2002

TOTAL COST

$179

Schedule

Risk s1 [.3]

(deliverables)

completion events

Economic

Risk e1 [.2]

Increasing switching costs

COST TARGET

$170

Potential to change the (e.g., organizational, basis of competition execution) completion events

$4

$154

TE1

$122

$95

$82

$67

$150

$104

$75

$67

$67

TE2

Risk r3 [.4] Risk r1 [.1]

MaptoProductDrivers

Customer Drivers

Attack

Risk Consequence:

(x%; y%) Competitor C ustom er Driver #1 #3 (x%; y%)

Product Drivers (Attributes)

Architectural Fit

PD1

MHz

Customer or Complementor Drivers

$1.00 1997 1998 1999 2000 2001Ease 2002 of 2003training 2004

C ustom er Driver #3

-1 25 O urCo Lags

NOW

Segment/Product

5

-1

0

+1

Segment/Product +2 +3 +4

Segment/Product B

0 +5

-1

0

Segment/Product C +1 +2 +3

Time

+4

Lead Leadin: in: Lead Leadin: in:

From product plan with 70% learning curve

Tech. Area

Widespread and Shared

10%

5%

Segment/Product A 20

15

100

10

50

5

+1

+2

+3

+4

+5

Time

Segment/Product B Segment/Product C

150

0

0

0

-1

0

+1

+2

Time

+3

+4

+5

-1

0

+1

+2

+3

+4

+5

Time

Market and Competitive Strategy

System Products (segment #1)

1.4m m

Vision

Driver #1

Product #1

4 lay er 0.8m m F lex

N iC d - 4.8V

T ou ch S e ns itive

F CF CF

N iM H - 3.6V

A lte rn . tec h . ~ 10 0% effic.

M M IC -3 V D ou ble co nv ersion

CF

V c elp

R ec eiv ers

C F

CF

L E G E N D : T ec h no lo gy S o urc e : D ev el. S u pp lier S up plie r

Inte rnal

CF S tee ring array

R e sea rc h

F un ding sta tu s: S taffe d

CF CF

CF CF CF C F CF C F CF

L M H L ag Le ad C = c urre nt, F =future P lann ed

U n pla nn ed

Product #1

Driver #1 Driver #2 Driver #3

CF CF

CF

N oise c an ce lling e arpiec e, m iniatu riz e d

$?M/?HY

Intellectual Property & Standards Strategies

CF

CF

IS -99 D a ta B E R Im p rov em ent/e c ho c a nc el. F irs t o rd er g rad ien t (F O G )

P iez o ele ctric

Product #4

Area #6

F C F

C F

CF CF

T u na ble , H om o dy n e

IT U , Q ce lp 1 3

E xp an d e r

M ic ro ph on e

New SW Platform (Chicago)

Product #4

$?M/?HY

C F

CF C F

F C

H o m od y ne

D iv ersity

C CF

CF

M o lde d-in V oic e Interfac e

C F C F

CF C

C u st. a da ptiv e

S w itch ing (80 % eff.)

M o du le T rip le con ve rsio n D u al b and , H ig h g ain

$?M/?HY

CF

CF

“S o ft R ad io”

Prioritize top 1.2 to m mbottom

1 /4 V G A

$?M/?HY

Area #4

C o m p et. P o sition

CF S in gle TE7 B as e ba nd

C o nfigu ra ble

L inea r - 5 0% effic ie n t

R a dio

D S P n oise a lgo rithm s

Version 4.1 (defeatured)

Version 4.2 (evolvable)

Develop

+6Q

$?M/ ?HY Product #1

Area #5

C h ip

6 la ye r 1m m 4 -lin e L C D

P o w er a m p

V oic e c od ers

PD7

Medici

Leonardo

In teg rate d C a ll sig na l proc .

N a vig a tio n k eys M en u d rive n

A nte nn a

Im po rt.

m icro co n troller

1 .7m m th ic k 6 la ye r 1.5 m m

P ow e r sup ply

Summary and Action Plan

Technology Roadmap

Machiavelli

Segment/Product A Segment/Product B Segment/Product C Overall Market Share

ACA

B ip ola r d iscretes 1 6 bit C IS C

2-lin e L C D

V IS IO N

TE6

1 83 2

8 bit C IS C

T alk tim e B attery

VISION

+3 Year

A u d io q u ality

Prioritize top to bottom

+4Q

Technology Source

.

TE5

+2 Year

CM O S

A u dio f ro nt en d M ic roc ontro ller

U ser in te rf ac e

PD6 Version 3.1 (upgrade)

Partner

+2Q

Product E1

Area #3

TE4

+1 Year

57 35 C hip

A u dio co de c

S oftw are

New Platform Architecture (Bernini)

15%

-1

200

Version 2.3 (evolvable)

+8 Q

Acquire

Now

Product #1 Product #1

Service/Support

H ou sin g

0%

Market Share (Units)

25

+6 Q

Show Stopper

Driver #1

Now

DSP

E ase o f u se D isp lay

PD5

+4 Q

Version 2.2 (full-featured)

20%

+5

Time

Market (Units)

250

+ 2Q

(segment #1)

1

25%

O urCo Leads

10

Segment/Product

2004 PD2

PD4

Version 1.0

O urCo rel. position

15

Segment/Prod

0

2003

PD3

Version 2. 1 (defeatured)

Software Products

Market Share (qty)

0 Fraction of market captured

Revenue ($M)

Market Size ($M)

Market Share ($)

20

50

2002

Interoperability

C ustom er Driver #5

100

2001

Service/Support

Market Description: Product, Customers, Segmentation, Geography, …

150

2000

Last Yr

W e ig h t/siz e In te rfa ce A S IC

Product Roadmap Last Year

Market Definition Market Size

1999

Functionality

C ustom er Driver #4

200

1998 and use

Value

Major

Defend

Product Strategies: Product&&Technology Technology Base Strategies:

Area #1

Interoperability

P ro du ct d riv ers C o re tec hn olog y A re a

PW B

Comp etitor #2 Comp etitor #1 O urCo

C ustom er Driver #2

250

1.0 1997

Minor

Product/Process Differentiation

TE3

Functionality

10.0

Dashed lines represent improvement rate expected from 80% slope on learning curve

$/unit

Competitor #2

Monitor

Differentiating

Action Summary

Technology Roadmap

*, * Best Other Vendor

$10.00

(x%; y%)

Risk r2 [.6]

Driver #1, Driver #2

Driver#2

Baseband circuit

Competitor #1

Risk e2 [.1]

completion events

Disruptive Resource

Area #2 Driver #1

Risk s2 [.1]

Map to Investments

Source

2003 Target

Value

2004

RF

Implications

Basis of Competition

1999

(cost, contract, budget)

Component #1 Component #2

Strategy Options

Best Product

Technology Category

Competitive Impact of Technology

Power Management

Galileo

Michaelangelo

Product Roadmap

5

© 2001 The Albright Strategy Group, LLC

Roadmap Planning Steps “Know-why”

Market and Competitive Strategy

Understand customer buying behavior (customer drivers) and feasible strategies. Target key segments. Identify competitors, complementors, and partners.

“Know-what” Push (capabilities)

Product Roadmap

Decide how the product will be differentiated to win in key segments. Translate overall customer drivers into product drivers for this specific product. Set multi-year targets.

“Know-how”

Pull (requirements, drivers)

Technology Roadmap

What technologies are most important? Link product drivers to hardware, software, and manufacturing technologies. Identify multi-generation technology investments to maintain competitiveness.

“To-Do”

Summary and Action Plan

What resources and investments are needed? Plan projects with the highest priorities. Are technology investments in the most important areas? Identify and track risk areas.

Time (Sources: Tom Kappel; Phaal, R., Farrukh, C., and Probert, D., Fast-start Technology Roadmapping.)

“Know-when” 6

© 2001 The Albright Strategy Group, LLC

Wireless Handset Example

1. Market and Competitive Strategy: Wireless Handset Example Competitive Landscape Competitor (Market share annual %; cumulative share %)

Strengths (+) and Weaknesses (-), Competitive Advantages

Core Competencies Partnerships, Alliances

Strategic Direction: business goals/targets, value proposition

OurCo (20%; 10%)

+ + Intellectual property + RF design - Brand name- Manufacturing cost

DSPs and algorithms Speech recognition RF

First to market with CDMA Low-cost GSM phone Mass market (retail outlets) Low size and weight Personalized terminal

Market Share and Growth Our share of market Competitor A

40

10

Internet Lucent units sold (millions)

Msging

Customer Drivers

Units sold (millions)

Digital 30

Analog

20

10

Internet (40%; 30%)

9

Msging

8

Competitor B Digital (25%; 25%)

7 6

Analog

Competitor C

5 4

(?%; ?%)

Strategy

Countermeasures

Global wireless leadership Defend market share Continue quality program

Move market to be style/feature based

Low cost mfg structure TOTAL Expertice in all standards

Increase US capacity Fast follow new technol. #2 in everything

Move to outsourced manufacturing. Partner with chipset suppliers

Product realization potential CDMA technology

Make CDMA dominant Control standard

Bring new internet features to market early

Our market share RF

+ Wireless focus + Brand name recognition 50% + Quality focus + Low cost advantage + Supplier management 40% + Low cost manufacturing

Fraction of units sold

Addressable Market

30%

+ Consumer brand name + CDMA capability/IP - Manufacturing experience

3 2

Analog Custom IC's Digital Quality/reliability Msging Vision/commitment Internet

20%

10%

1

120

0

0 -1 yr now +1 yr +2 yr +3 yr +4 yr +5 yr

0%

-1 yr now +1 yr +2 yr +3 yr +4 yr +5 yr

Antenna

-1 yr now +1 yr +2 yr +3 yr +4 yr +5 yr

Display TARGET TARGETGROWTH GROWTHSEGMENTS: SEGMENTS:Digital Digitaland andInternet Internet

100

Market Segment Trendsetters Mobile Professional Mobile Home Emergency Convenience

Market %

80

60

40

Battery

RF KEY/TARGET CUSTOMERS: Carrier 1, SvcProv 2, Pink KEY/TARGET CUSTOMERS: Carrier 1, SvcProv 2, Pink

Baseband

20

Power Management

0

Talk Time

Price

Style

In Touch

Real Time Info

Customer Driver

Keyboard

7

Housing

PWB ICs Discretes Software

© 2001 The Albright Strategy Group, LLC

Wireless Handset Example

2. Product Roadmap:

Product Drivers link Customer Needs to Technologies and Targets Target Cost and Price

Wireless Handset Example

$1,000 $800 $600

Customer Drivers

$400

Product Drivers

$300 $200 200 gram

Cost: Materials Assembly time

Style Talk Time

Messaging

Antenna Display

Web Connection Battery

RF

3725

$30

Price Range Cost

$20 $10 -1 Yr

Now

+1 Yr

+2 Yr

+3 Yr

+4 Yr

SIZE AND WEIGHT 1000 Lead in Size & Weight

.

Info Access

70 gram

3721

$40

Volume (cc), weight (g)

Battery Life

100 gram

$60

Size Weight

In Touch

150 gram

$80

10

BATTERY LIFE/TALK TIME

Target: Size Competitor

100 Hours.

Price

$100

Target:Weight

Baseband

Qcompetitor A Competitor B Good

10 -1 yr

now

Power Management Keyboard

Housing

+1 yr

+2 yr

+3 yr

Vision

1

PWB ICs Discretes Software

-1 yr

8

now

+1 yr

+2 yr

+3 yr

Vision

© 2001 The Albright Strategy Group, LLC

Wireless Handset Example

Using the Past to Forecast the Future Experience Curves Capture Many Drivers WIRELESS HANDSET PRICE

Culture: Culture:group, group,corporate, corporate,

10,000 Market Price/unit (1996 $)

7,000

professional, professional,and andindustry industry behaviors behaviors

70% slope (Rate of Learning)

4,000

Supply: Supply:technology technologythat that

84

differentiates differentiatesorordisrupts, disrupts, product platforms, product platforms,product product realization realizationmethods, methods, production production

2,000 88

86

1,000

90

700

Demand: Demand:marketplace, marketplace,

92 400

elasticity, elasticity,competition competitionlevel, level, regulatory climate, market regulatory climate, market learning learningpotential potential

94 96

200

98 2000

100 0.1

0.2

0.4

0.7

2

4

7

20

1 10 Cumulative Units Sold (Millions)

9

40

70

100

Operating Operating Environment: Environment:system system architecture, architecture,complex complex requirements, requirements,standards standards

© 2001 The Albright Strategy Group, LLC

Using Experience: Example – Semiconductor Memory (DRAM) Experience Curve 2

64

Av e rage se lling price (ce nts/bit)

.

100

Learning Curve

1

10

74

1

70 %

0.1

0

Slo p

1

e

10-2 10-3 10-4 106

94 107

108

109

1010

1011

1012

1013

C um v olume (D RAM bits)

1014

1999 National Technology Roadmap for Semiconductors

2

84

1015

1016

3 4 1

10-55 10-66 10-77 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” coordinates the many players in industry

10

© 2001 The Albright Strategy Group, LLC

Wireless Handset Example

3. Technology Roadmap: Organized by Drivers Price Style Talk Time

Baseband circuit

Weight/size Interface ASIC

Technology Roadmap Last Yr

Now

5735 Chip

DSP

PWB Ease of use Display

RF

Power supply

16 bit CISC

Antenna

Single Baseband Chip

1.4mm

2-line LCD

4-line LCD

4 layer 0.8mmFlex 1/4 VGA

Touch Sensitive

Navigation keys Menu driven

Configurable

NiCd- 4.8V

Switching (80%eff.)

Module

Voice Interface

Altern. tech. ~100%effic.

MMIC-3V Double conversion

Dual band, High gain

Compet. Position

ICs

$200

Homodyne

Diversity

CF

DISCRETES

CF CF CF CF C F C F CF CF CF

Molded-in

Cust. adaptive NiMH- 3.6V

Linear - 50%efficient

Import.

CF

1.2mm

6 layer 1mm

Triple conversion

“Soft Radio”

microcontroller

1.7mmthick 6 layer 1.5mm

VISION

CF

Bipolar discretes 8 bit CISC

Power amp Radio

Integrated Call signal proc.

CMOS

User interface Software Talk time Battery

+3 Year

RF

ACA

Audio front end

Housing

+2 Year

1832

Audio codec Microcontroller

+1 Year

Target Cost Breakdown

BATTERY PWB

CF CF

CF

CF

CF

CF

CF CF

CF

MANUF. TARGET

$100

CF

FC

CF

CF

CF

CF

DISPLAY

$150

CF

CF

Tunable, Homodyne

HOUSING

C ost

Product drivers Core technology Area

Cost

Size/Weight Battery Life

$50

CF

Audio quality Voice coders DSP noise algorithms

Vcelp Expander

Microphone Receivers

ITU, Qcelp13 First order gradient (FOG)

Piezoelectric

LEGEND: Technology Source: Devel. Supplier Supplier

CF

IS-99 Data BER Improvement/echo cancel.

CF Steering array

Noise cancellingearpiece, miniaturized Internal

Research

Funding status: Staffed Planned

Unplanned

CF CF

CF CF CF CF

L M H Lag Lead C=current, F=future

11

$0 Comp "A"

Now

+1 yr

+2 yr

+3 yr

+4 yr

Target

© 2001 The Albright Strategy Group, LLC

Platform Roadmaps ProductRoadmap Roadmap Product



Last yr

System

NOW

+ 1yr

CDMA

Copeland Data Services

VISION

Personal Terminal

Joplin Voice Recognition CDMA/DECT Chatsworth - 911 Service $80

Gilman $200

Analog

High Priority Local Needs Region North America

Now CDMA

+ 1 Yr

+2 Yr

iMode

+3 Yr

Style

3575 small size

3560 - 200 gram

+4 Yr

Low Cost

GSM

Europe

Fairbury $60

Piper $120

Localization Roadmap

– Geographic needs – Cultural adaptation – National regulations

+4 yr

Ives PCS Band

GSM

Localization

+3 yr

Blake dual-mode dual band

– Product Line – Multiple market segments – Alternative needs/technologies



+2 yr

Forest $70

3721 -70 gram

Exit Analog Radio Market

Vision Disposable

Web Access

Recycle

Messaging

Japan Funded

Planned

Unplanned

Wireless Services



Wireless Solution Roadmap Roadmap Wireless Handset

Solution/Offer – Roadmap of Roadmaps – Coordinate subsystems as parts of customized offers/solution.

Roadmap C o n tr ib u to r s /N o te s :

CO NTENTS M a rk e t s h a re a n d g ro w th C o m p e t it i v e s t r a t e g y P ro d u c t R o a d m a p P r o d u c t a t t r ib u t e s a n d d r iv e r s P r o d u c t e v o lu t io n p la n T e c h n o lo g y R o a d m a p F o r w a r d c o s t in g m o d e l M a n u f a c t u r in g R o a d m a p T e c h n o lo g y a t t a c k s t r a t e g y

Page 2 3 4 5 9 10 11 13 14

T h is is a n e x a m p le o f a r o a d m a p fo r a b u s in e s s p r o d u c in g w ir e le s s h a n d s e ts , d e s ig n e d to illu s tr a te f o r m a t a n d t h e r o a d m a p p in g p r o c e s s . T h is r o a d m a p h a s b e e n d e v e lo p e d fo r illu s tr a tiv e p u r p o s e s o n ly - - it d o e s n o t r e p r e s e n t a n a c t u a l L u c e n t b u s in e s s .

Wireless Infrastructure Roadmap C o n t a c ts / R o a d m a p O w n e r :

Jane Q . R oadm apper + 4 4 -x x x - x x x - x x x x h a n d le @ lu c e n t. c o m e le c t r o n ic v e r s io n : h t tp :/ /B U .lu c e n t .c o m /r o a d m a p 9 9

F o r a s s is t a n c e w it h r o a d m a p p in g , c o n t a c t th e L u c e n t T e c h n o lo g y O f fic e : R ic h A lb r ig h t + 1 9 0 8 -5 8 2 -3 5 8 6 r a lb r ig h t@ lu c e n t. c o m h tt p : // in fo v ie w .lu c e n t .c o m /lu c e n t/ c to

BBuus si ni ne es ss sSSt rt a in a l b u s in e s s fr o m 4 M u n its to 7 .5 M u n its in 4 y e a r s w h ile h o ld in g r at et eggy y: :GGr or owwL Lu uc ce en nt ’st ’swwirire eleles ss st et er m r m in a l b u s in e s s fr o m 4 M u n its to 7 .5 M u n its in 4 y e a r s w h ile h o ld in g

2 0 % m k t s h a r e b y o ff e r in g s m a lle s t , lig h te s t p h o n e o n m a r k e t a t a v e r y , c o m p e t it iv e p r ic e . T a r g e t C D M A & G S M s e g m e n t s 2 0 % m k t s h a r e b y o ff e r in g s m a lle s t , lig h te s t p h o n e o n m a r k e t a t a v e r y , c o m p e t it iv e p r ic e . T a r g e t C D M A & G S M s e g m e n t s bb y yb be e inin g gf irf ir s st tt ot omma a r kr ke et twwit it h hliglig h htwtwe eigigh h t tCCDDMMAAp ph h o on n e ea an nd du u ltrltr a alolo wwc o o on n e e. . EEn nteter rmma as ss smma a r kr e r er e t at a il ilo ou u t le c os ts tGGSSMM p ph h k et/ t/ t letsts. . E v e n t u a lly e x it t h e a n a lo g p h o n e m a r k e t . E v e n t u a lly e x it t h e a n a lo g p h o n e m a r k e t .

Wireless Solution Roadmap PPr o r odduuc ct t&& TTe ec chhnnoolologgy ySStrtra at et eggy y: :

L e a d i n c e ll p h o n e c o s t a n d w e ig h t ( $ 5 0 / 7 0 g m b y ‘0 3 ) - A g g r e s s iv e ly r e d u c e c o s t s a n d lo w e r s iz e v ia r e m o v a l o f L e a d i n c e ll p h o n e c o s t a n d w e ig h t ( $ 5 0 / 7 0 g m b y ‘0 3 ) - A g g r e s s iv e ly r e d u c e c o s t s a n d lo w e r s iz e v ia r e m o v a l o f d is c r e te s , c o n s o lid a tio n o f Ic s , u s e o f s m a lle r , s u r f a c e m o u n t c o m p o n e n ts a n d n e w m a te r ia l d e v e lo p m e n ts ( s u c h a s n e x t d is c r e te s , c o n s o lid a tio n o f Ic s , u s e o f s m a lle r , s u r f a c e m o u n t c o m p o n e n ts a n d n e w m a te r ia l d e v e lo p m e n ts ( s u c h a s n e x t g e n e r a tio n b a tt e r ie s a n d P W B s ) . g e n e r a tio n b a tt e r ie s a n d P W B s ) . L e a d i n d a t a c o n n e c t iv it y b y b e in g fir s t to m a r k e t w ith a n IP b a s e d te le p h o n e u s in g a d v a n c e d e r r o r c o r r e c tio n L e a d i n d a t a c o n n e c t iv it y b y b e in g fir s t to m a r k e t w ith a n IP b a s e d te le p h o n e u s in g a d v a n c e d e r r o r c o r r e c tio n a lg o r ith m s . A c t iv e ly p r o m o te w ir e le s s in te r n e t s t a n d a r d s . a lg o r ith m s . A c t iv e ly p r o m o te w ir e le s s in te r n e t s t a n d a r d s .

C o n tr ib u to r s /N o te s :

CO NTENTS M a rk e t s h a re a n d g ro w th C o m p e t it i v e s t r a t e g y P ro d u c t R o a d m a p P r o d u c t a t t r ib u t e s a n d d r iv e r s P r o d u c t e v o lu t io n p la n T e c h n o lo g y R o a d m a p F o r w a r d c o s t in g m o d e l M a n u f a c t u r in g R o a d m a p T e c h n o lo g y a t t a c k s t r a t e g y

Page 2 3 4 5 9 10 11 13 14

T h is is a n e x a m p le o f a r o a d m a p fo r a b u s in e s s p r o d u c in g w ir e le s s h a n d s e ts , d e s ig n e d to illu s tr a te f o r m a t a n d t h e r o a d m a p p in g p r o c e s s . T h is r o a d m a p h a s b e e n d e v e lo p e d fo r illu s tr a tiv e p u r p o s e s o n ly - - it d o e s n o t r e p r e s e n t a n a c t u a l L u c e n t b u s in e s s .

C o n t a c ts / R o a d m a p O w n e r : Jane Q . R oadm apper + 4 4 -x x x - x x x - x x x x h a n d le @ lu c e n t. c o m e le c t r o n ic v e r s io n : h t tp :/ /B U .lu c e n t .c o m /r o a d m a p 9 9 F o r a s s is t a n c e w it h r o a d m a p p in g , c o n t a c t th e L u c e n t T e c h n o lo g y O f fic e : R ic h A lb r ig h t + 1 9 0 8 -5 8 2 -3 5 8 6 r a lb r ig h t@ lu c e n t. c o m h tt p : // in fo v ie w .lu c e n t .c o m /lu c e n t/ c to

B u s in e s s S tr a te g y :

in a l b u s in e s s fr o m 4 M u n its to 7 .5 M u n its in 4 y e a r s w h ile h o ld in g B u s i n e s s S t r a t e g y :GGr or owwL Lu uc ce en nt ’st ’swwirire eleles ss st et er m r m in a l b u s in e s s fr o m 4 M u n its to 7 .5 M u n its in 4 y e a r s w h ile h o ld in g 2 0 % m k t s h a r e b y o ff e r in g s m a lle s t , lig h te s t p h o n e o n m a r k e t a t a v e r y , c o m p e t it iv e p r ic e . T a r g e t C D M A & G S M s e g m e n t s 2 0 % m k t s h a r e b y o ff e r in g s m a lle s t , lig h te s t p h o n e o n m a r k e t a t a v e r y , c o m p e t it iv e p r ic e . T a r g e t C D M A & G S M s e g m e n t s bb y yb be e inin g gf irf ir s st tt ot omma a r kr e h htwtwe eigigh h t tCCDDMMAAp ph h o on n e ea an nd du u ltrltr a alolo wwc o o on n e e. . EEn nteter rmma as ss smma a r kr e r er e t at a il ilo ou u t le . . k et twwit h it hliglig c os ts tGGSSMM p ph h k et/ t/ t letsts E v e n t u a lly e x it t h e a n a lo g p h o n e m a r k e t . E v e n t u a lly e x it t h e a n a lo g p h o n e m a r k e t .

PPr o r odduuc ct t&& TTe ec chhnnoolologgy ySStrtra at et eggy y: :

L e a d i n c e ll p h o n e c o s t a n d w e ig h t ( $ 5 0 / 7 0 g m b y ‘0 3 ) - A g g r e s s iv e ly r e d u c e c o s t s a n d lo w e r s iz e v ia r e m o v a l o f L e a d i n c e ll p h o n e c o s t a n d w e ig h t ( $ 5 0 / 7 0 g m b y ‘0 3 ) - A g g r e s s iv e ly r e d u c e c o s t s a n d lo w e r s iz e v ia r e m o v a l o f d is c r e te s , c o n s o lid a tio n o f Ic s , u s e o f s m a lle r , s u r f a c e m o u n t c o m p o n e n ts a n d n e w m a te r ia l d e v e lo p m e n ts ( s u c h a s n e x t d is c r e te s , c o n s o lid a tio n o f Ic s , u s e o f s m a lle r , s u r f a c e m o u n t c o m p o n e n ts a n d n e w m a te r ia l d e v e lo p m e n ts ( s u c h a s n e x t g e n e r a tio n b a tt e r ie s a n d P W B s ) . g e n e r a tio n b a tt e r ie s a n d P W B s ) . L e a d i n d a t a c o n n e c t iv it y b y b e in g fir s t to m a r k e t w ith a n IP b a s e d te le p h o n e u s in g a d v a n c e d e r r o r c o r r e c tio n L e a d i n d a t a c o n n e c t iv it y b y b e in g fir s t to m a r k e t w ith a n IP b a s e d te le p h o n e u s in g a d v a n c e d e r r o r c o r r e c tio n a lg o r ith m s . A c t iv e ly p r o m o te w ir e le s s in te r n e t s t a n d a r d s . a lg o r ith m s . A c t iv e ly p r o m o te w ir e le s s in te r n e t s t a n d a r d s .

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© 2001 The Albright Strategy Group, LLC

Some Learnings from Roadmapping Experience •

On Roadmaps – Product-Technology Roadmaps. – Linked (strategy to product to technology) roadmaps, not parallel marketing and technology roadmaps -- with increasing emphasis on the front end to understand segments and strategy. – Focus on the 2 - 3 most important drivers, technologies and investments/actions. – Roadmap of Roadmaps. Extend to joint roadmaps with customers and suppliers



On Roadmapping – The product manager (with P&L) owns and drives. – A strong leader makes or breaks. MATI (Management of – Cross functional team. Accelerated Technology Innovation) Is developing – A facilitator is important. Roadmapping Best Practices. – Use the roadmap to guide the journey. http://mati.ncms.org – Renewing the roadmap: Buy ‘em lunch! 13

© 2001 The Albright Strategy Group, LLC

Why Roadmap? • • • • • • • •

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 reveal gaps in product and technology plans. Roadmaps prioritize investments based on drivers. Roadmapping helps set better targets: more competitive and more realistic. Sharing roadmaps allows strategic use of technology across product lines. Roadmapping communicates business, technology and product plans to team members, management, customers and suppliers. Roadmaps provide a guide to the team, allowing the team to recognize and act on events that require a change in direction. 14

© 2001 The Albright Strategy Group, LLC

Roadmaps and Roadmapping

Summary: Discipline & Focus Learning & Communications

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© 2001 The Albright Strategy Group, LLC