SOLUTION BRIEF
CA Clarity and Nova for PPM from Kalypso
How Can You
Develop the
Right New
Products—the
First Time, and
Every Time?
agility
made possible™
Get the tools and insights you need to develop new products
that give your business the best chance of success—with
the CA Clarity® solution and Nova for Project and Portfolio
Management (PPM) from Kalypso™.
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CA Clarity and Nova for PPM from Kalypso
Executive Summary
Challenge
Too often, new product development is driven by guesswork, assumptions or the loudest customer or
senior staff member. Managers lack the insights they need to truly understand what it is that customers
want, to objectively weigh the pros and cons of various prospective products, and to ensure that what
the team ultimately produces is aligned with requirements. Consequently, the products that make it
to market don’t deliver the sales, customer value or business benefits they should.
Opportunity
The CA Clarity® solution equips your organization with the tools and insights you need to make
intelligent product portfolio decisions based on objective information. By using the CA Clarity solution
with Nova for PPM from Kalypso™, your organization can harness proven best practices for making
product portfolio investments based on a sound decision making framework. Plus, by leveraging the
robust portfolio management, ideation and requirements capabilities of the CA Clarity solution, you
can ensure your product development investments are aligned with your markets’ needs—while
speeding and streamlining product delivery.
Benefits
By using the CA Clarity solution with Nova for PPM, your organization will develop products for the
right reasons and get the right products to market at the right time. This solution provides the tools,
processes and criteria you need to understand what your customers want and start developing the
products that offer the best chances for business and financial success.
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CA Clarity and Nova for PPM from Kalypso
Section 1: Challenge
Why New Products Miss the Mark
In too many organizations, the tools and processes relied upon for new product development are
suboptimal, which means new products:
•Don’t meet customer or market needs. Decision makers have a hard time ascertaining what
products and features customers and prospects want, let alone to have that understanding guide
effective innovation strategies.
•Don’t yield the revenues or profits expected. Managers lack formally defined, best practice
criteria for assessing prospective products. This makes it difficult to choose among alternatives, and
virtually impossible to ensure that the products chosen for development provide the best possibility
of ultimate profitability and market success.
•Aren’t aligned with business strategy. Lacking formal processes and practical insights, new
product investments don’t map to top-level business strategies.
Section 2: Opportunity
Delivering New Products with the CA Clarity
Solution and Nova from Kalypso
With the CA Clarity solution and Nova for PPM, you can leverage the comprehensive tools and
integrated best practices that fuel optimized new product development. The CA Clarity solution offers
a comprehensive approach, featuring industry-leading portfolio management capabilities combined
with industry-proven best practices from Nova by Kalypso. Built and refined based on deep and
practical expertise across a range of industries, Nova for PPM delivers best practices for applying
analysis, governance and business rules to innovation. With Nova for PPM, your organization can
leverage the criteria you need to make the right innovation investments for your business.
These combined solutions provide key capabilities your organization needs to deliver winning new
products to market. With these capabilities, you can source ideas from your customers, collaborate to
define requirements and evaluate and identify the right products to produce. Plus, you can govern the
development of those products to ensure they ultimately address strategic objectives. As a result, you
can deliver the products that help your organization compete more effectively.
Understand what the market wants
Understanding the needs of the market and your customers is key to delivering the right products or
services. With the CA Clarity solution’s ideation capabilities, your organization can collect, evaluate
and manage ideas from external customers, internal staff, partners and others. With this solution, you
get a practical way to gather input, collaborate and identify the highest value ideas. You can see
which innovations are most important to the market, prioritize them and act on them more quickly.
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CA Clarity and Nova for PPM from Kalypso
Control your product development portfolio
How do you decide which products to invest in? Where should you allocate your organization’s time,
budget and staff? On what do you base your decision to launch a new product, expand delivery of a
service or develop an innovation? CA Clarity PPM gives you the portfolio visibility you need to make
fact-based decisions about the allocation of your limited resources.
CA Clarity PPM provides you with a complete set of tools and reports that empower you to make
smarter portfolio decisions about investment mix, project selection, timing, execution, sourcing,
performance and anticipated outcomes. CA Clarity PPM delivers comprehensive capabilities, including
portfolio creation, evaluation and prioritization. For example, the solution features advanced
prioritization rules that help managers plan based on an accurate understanding of resource
constraints, and to generate multiple plan scenarios for intelligent comparison. These capabilities
help you manage not just projects, but investments in applications, assets and services. The solution
features financial management capabilities that support capital and operational expense planning
and reporting.
The solution delivers all the tools you need to align your strategic investments with your corporate
goals. CA Clarity PPM enables you to:
•Establish standards. With CA Clarity PPM, you can define formal, structured criteria and metrics
that enable decisions about resource allocation to be smarter, and based on objective facts, rather
than conjecture and opinion. The extensive configuration capabilities in CA Clarity PPM allow you to
leverage best practice criteria from Nova for PPM or easily add your own. With point-and-click
configuration, it’s easy to create, prioritize and evaluate investments against optimal metrics.
•Define your strategic portfolio. CA Clarity PPM provides an easy-to-use interface for entering
existing investments, projects, programs, applications, assets and services. Within CA Clarity PPM,
you can create multiple portfolios, each consisting of different sets of investments. You can also
group portfolios together in parent-child relationships, allowing individual departments or
companies to maintain their own portfolios, while providing comprehensive, high-level visibility for
executives. These interlinked portfolios provide support for top-down planning and bottom-up
reporting.
•Evaluate your portfolio. CA Clarity PPM provides you with a complete set of tools and reports to
enable critical what-if scenario planning that empowers you to make smarter portfolio decisions
about investment mix, project selection, timing, execution, sourcing, performance and anticipated
outcomes. Investments can be selected, scheduled or postponed—and the impact on the cost,
benefit, alignment and balance of the portfolio can be analyzed in the context of these changes.
•Improve portfolio performance. Over time, demands, budgets and revenue requirements will
change. With CA Clarity PPM, you can leverage portfolio execution and analysis capabilities in order
to ensure your portfolio remains optimized, keeping on top of such keys as whether it continues to
be aligned with strategic business goals, where to invest limited resources and balancing innovation
with near-term requirements.
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CA Clarity and Nova for PPM from Kalypso
Figure A.
CA Clarity PPM offers
dashboards that give
managers objective
visibility into how
resources are allocated.
Leverage Industry-Proven Criteria to Evaluate and
Decide on New Product Investments
When added to CA Clarity PPM, the proven best practices and investment selection criteria of Nova
for PPM enable your organization to intelligently assess potential offerings so you can choose those
that promise to provide the biggest dividends to the business. Nova provides a range of criteria to
assist in objectively and accurately assessing the prospects of each product. By combining Nova
criteria with the robust portfolio management capabilities of CA Clarity PPM, this solution enables
effective innovation portfolio management in selecting your product development investments.
Following are the categories of Nova criteria you might apply, and specific examples of each type.
Quantitative criteria
While these criteria are numerical and objective, they are often inaccurate when they are used for
new product development. These criteria are typically business performance metrics that can be
easily measured, which enables you to compare forecasts to results. Values such as revenue and
profit are also critical as they typically tie to business targets, which is a vital component of strategy.
Following are a few examples of these quantitative criteria:
•Net present value (NPV). This is a common financial metric that considers current costs (although
sunk costs are generally ignored) and future cash flow streams. This is a preferred metric for portfolio
management because it produces a single, standardized value that allows easy comparison across
groups of projects.
•Volume. This metric can be particularly useful in sales and operations planning. Understanding the
impact of new product volume is a critical consideration for operations personnel, helping them
determine, for example, whether further investment in manufacturing equipment would be needed
due to a new product launch.
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CA Clarity and Nova for PPM from Kalypso
•Incremental revenue or sales. Calculating forecasted revenue is critical for understanding whether
top-line growth targets are being met by innovation initiatives.
•Operating profit, gross profit, or earnings before income tax (EBIT). Calculating profits is a key
way to measure success against business targets.
•Margin (%) or project impact to base margin. Often, as companies look to control costs of goods,
new products need to maintain or exceed gross margin expectations. These metrics let leadership
know whether projects will result in an increase or decrease in costs of their platform or brand.
Constraint information
Constraints are an important factor in effective portfolio planning. Often, these metrics are useful for
assessing which projects in the portfolio provide the greatest benefit (whether revenue, profit or NPV)
for the financial or staffing resources invested. Following are a couple examples of these constraint criteria:
•Remaining investment cost to launch. This metric tracks the financial investment required to
launch a project, ignoring any sunk costs. This typically includes capital at a minimum, but should
also take into account key expenses from R&D and marketing.
•Remaining people resources to launch. Human resources are often the most significant constraint
for new product development organizations, so this is an important metric to calculate in order to
understand which projects consume the most time of full-time employees. This is often compared
to a benefit metric, such as NPV or revenue, to understand the ratio of benefit to people cost.
Qualitative criteria
Financial metrics and other quantitative information provide an important lens for viewing portfolio
data, but they should not be the only criteria used. Criteria that the project team subjectively
evaluates also are important to fostering effective decisions. Following are a few of these qualitative
criteria:
•Probability of technical success. This metric tracks the likelihood that the technical solution can
be proven and fully demonstrated. Nova includes a simple framework for calculating this
percentage.
•Probability of commercial success. This metric is a percentage that gauges the likelihood of an
offering being commercially successful, specifically in meeting or exceeding defined success criteria
and timelines. This metric factors in launch and production ramp up. As with the technical
feasibility metric, the Nova model provides a basic framework for calculating commercial success,
and these frameworks can be customized to meet a specific organization’s needs.
•Fit to strategy. This is a metric you can use to help ensure that projects in the portfolio are consistent
with the strategic direction of the business and that resource allocations are aligned with that strategy.
•Operational leverage. This framework helps you to understand how well a given project fits with
current organizational capabilities. A portfolio consisting of many projects that score low on
operational leverage will indicate a need to invest in operations and the supply chain and could
indicate a risk to launches occurring on schedule.
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CA Clarity and Nova for PPM from Kalypso
•Competitive advantage. This rating will help portfolio teams assess how well their projects stack
up against competitors’ offerings. A portfolio with projects that are not well differentiated against
competitors will have greater risk in the market and will be more likely to fall short of financial targets.
Advanced metrics
Several more advanced metrics are also available to organizations. Because these metrics create
additional complexity, they are not recommended in many cases. Following are two examples of the
advanced metrics available:
•Expected commercial value (ECV). This metric improves on a key weakness of NPV by introducing
an element of risk adjustment, which is based on calculations of the probability of technical and
commercial success.
•“Bang-for-Buck” ratios. These metrics track the ratio of benefit to cost, for example, comparing
NPV to resource requirements. As a result, this metric can help you understand which projects
provide the biggest benefit within given constraints.
Figure B.
Through the
integration of Nova
PPM best practice
criteria and the
CA Clarity solution,
managers can make
better portfolio
investment decisions.
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CA Clarity and Nova for PPM from Kalypso
Figure C.
CA Clarity features
data integration and
intuitive dashboards
that help managers
effectively gauge
the value of their
portfolio pipeline.
Ensure the products you produce match your investment decisions
A key factor in successfully delivering competitive and innovative ideas to your customers is the
ability to not only define requirements effectively, but keep them connected to projects and their
activities. With the CA Clarity solution, you can leverage the criteria in Nova PPM to define
requirements that specifically meet your customer needs and then stay laser-focused on those
requirements throughout the product development cycle—so that the product you ultimately deliver
matches the one you designed.
The CA Clarity Requirements component of the CA Clarity solution provides a complete, intuitive view
of customer needs, product plans and roadmaps. As your product investments move forward, and
projects and requirements evolve, the Clarity solution provides versioning, tracking and approval
history to keep the requirements aligned with the product strategies devised with Nova PPM.
Further, CA Clarity Requirements is integrated with Chatter, a social networking tool that facilitates
effective and efficient collaboration across project teams. That collaboration among stakeholders
and project resources helps ensure that as projects evolve, the requirements stay true to the original
intent of your investment decisions.
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CA Clarity and Nova for PPM from Kalypso
Figure D.
With CA Clarity,
executives can quickly
assess the number of
full time employees
that will be required
to complete
specific products.
Deliver your products on-time and on-budget
Project execution is key to meeting the expectations of your product investment decisions. If projects
are completed late or over budget, expected revenues will be affected. CA Clarity PPM allows you to
deliver new products flawlessly by creating reliable project plans and accurate estimates, finding and
assigning the best resources, leveraging organizational knowledge and best practices and providing
meaningful reporting and analysis. CA Clarity PPM offers an integrated approach that helps your
organization reduce project management complexity and costs by maintaining real-time schedules,
status and budget controls. As a result, your managers can deliver controlled and predictable
execution of projects and programs, ensuring that your product investments are delivered on time
and on budget.
With CA Clarity PPM, you can:
•Create the right project plan. With CA Clarity PPM, project managers can create simple plans that
track key tasks and milestones as well as detailed plans that capture all information about complex
projects. All project requirements, resources and cost accounting activities are fully integrated, so
they can be seamlessly managed throughout the process.
•Leverage best practices and templates. Rather than starting from scratch, project managers can
build plans with pre-packaged methodologies and templates based on best practices, including
those from Nova. In addition, CA Clarity PPM offers capabilities that support your industry and
desired project management methodology, including traditional, Agile or hybrid approaches.
•Schedule and staff projects quickly and effectively. CA Clarity PPM makes it easy to schedule key
tasks and milestones, manage project and resource calendars and group multiple subprojects into
programs for schedule roll-up—all within the intuitive CA Clarity environment. Users can leverage
the CA Clarity Resource-Constrained Scheduling (RCS) algorithm to schedule project plans based on
available resources rather than on task duration, which generates a more realistic plan in less time.
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CA Clarity and Nova for PPM from Kalypso
•Manage risks, issues and change requests. CA Clarity PPM gives your team members better
control over project results by allowing them to systematically manage risks, issues and change
requests. Leveraging PMBOK-compliant terminology and processes, the solution helps you capture,
evaluate and score risks—so you can focus on those that have the biggest potential impact. Userdefined thresholds allow roll-up of critical risks to management dashboards for visibility and mitigation.
•Effectively manage programs. When you need to manage large programs with a related series of
projects, CA Clarity PPM allows you to create and manage at the program level, providing top-down
budgeting and forecasting as well as bottom-up risk, status, cost and schedule reporting for
subprojects. Users can drill directly into the subproject details to manage more effectively and
boost program success.
Section 3: Benefits
Deliver the Right Products at the Right Time
By leveraging the CA Clarity solution with the best practices of Nova for PPM, your organization can
realize a number of significant benefits:
•Meet market needs. By harnessing integrated capabilities for intelligently evaluating your portfolio
investments and tracking project progress against original criteria, your organization can boost its
odds of seeing projects through to completion—and having those projects succeed in the
marketplace.
•Give customers what they want. Through the solution’s extensive capabilities for gathering,
prioritizing and acting on customer input, your organization can deliver products that are better
aligned with market requirements—and you can adapt more quickly as those needs change.
•Achieve financial objectives. By utilizing Nova for PPM, the CA Clarity solution helps your team
intelligently assess the financial prospects of each product, so you can select and deliver the
products that are most likely to yield the financial dividends your business requires.
•Advance business strategies. Whether your business is looking to build on its core, diversify or
expand into a new region or market, the CA Clarity solution gives you the tools you need to deliver
products that help meet those objectives.
•Manage budgets and resource constraints. CA Clarity solution and Nova for PPM helps you
optimize workload so you can maximize business benefit, while working within existing constraints.
This solution provides you with the critical views you need to effectively evaluate your portfolio and
manage financial and staff resources.
•Get to insights faster. Using the CA Clarity solution and Nova for PPM allows you to get started
faster with an enterprise portfolio management solution. The Nova methodology will accelerate
the effectiveness of your innovation process, and the integration of these solutions will reduce
implementation time, so you can get portfolio insights faster than with traditional approaches.
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CA Clarity and Nova for PPM from Kalypso
By leveraging the CA Clarity solution and Nova for PPM, you can realize all these benefits faster, more
efficiently and more cost effectively than ever before. You can get the tools, capabilities and criteria
you need for your organization to start developing products for the right reasons, so you can get the
right products to market at the right time.
Section 4:
About CA Technologies
CA Technologies (NASDAQ: CA) provides IT management solutions that help customers manage
and secure complex IT environments to support agile business services. Organizations leverage
CA Technologies software and SaaS solutions to accelerate innovation, transform infrastructure
and secure data and identities, from the data center to the cloud. Learn more about CA Technologies
at ca.com.
Section 5:
About Kalypso
Kalypso is the world’s premier innovation consulting firm, helping clients improve performance,
drive profitability and create sustainable results by delivering on the promise of innovation. The
people of Kalypso are leading business professionals who combine unparalleled expertise in
innovation, product development, and product lifecycle management (PLM) with a depth of
experience in the consumer goods, high technology, manufacturing, life sciences and retail
industries. For more information, visit kalypso.com. Follow @KalypsoLP on Twitter and on Facebook.
Agility Made Possible: The CA Technologies Advantage
CA Technologies (NASDAQ: CA) provides IT management solutions that help customers manage
and secure complex IT environments to support agile business services. Organizations leverage
CA Technologies software and SaaS solutions to accelerate innovation, transform infrastructure
and secure data and identities, from the data center to the cloud. CA Technologies is committed
to ensuring our customers achieve their desired outcomes and expected business value through
the use of our technology. To learn more about our customer success programs, visit ca.com/
customer-success. For more information about CA Technologies go to ca.com.
Copyright © 2013 CA. All rights reserved. Kalypso and NOVA are trademarks or registered trademarks of Kalypso LP in the United States and/or other countries. All
trademarks, trade names, service marks and logos referenced herein belong to their respective companies. This document is for your informational purposes only.
CA assumes no responsibility for the accuracy or completeness of the information. To the extent permitted by applicable law, CA provides this document “as is” without
warranty of any kind, including, without limitation, any implied warranties of merchantability, fitness for a particular purpose, or non-infringement. In no event will CA be
liable for any loss or damage, direct or indirect, from the use of this document, including, without limitation, lost profits, business interruption, goodwill or lost data, even
if CA is expressly advised in advance of the possibility of such damages.
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