How Becton Dickinson
Gained Visibility into their
Global R&D and IT Portfolios
Scott Cussimano VP and Microsoft EPM Technology
Specialist - UMT
Key EPPM Concepts
BD Company Overview
BD Process
BD Portfolio Challenges
BD Portfolio Solution and Strategy
BD Lessons Learned
Q&A
2
Portfolio Management enables organizations to
identify and select the investments that will
maximize business value
100%
50%
Value Lost
Portfolio
Management
66%
Project
50%
Value Realized
Management
Project
Management
75%
0%
Ability to Realize Business-Value Potential
100%
helps ensure
organizations
successfully deliver the
selected investments
and realize the
business value
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BD’s Strategy:
To serve the world's population as a global leader in developing and applying
technologies to solve emerging, important, sometimes underappreciated and
fundamental healthcare problems with discipline and committed service to our
customers and shareholders.
Headquarters: Franklin Lakes, NJ USA
Size (2008):
$7.155B annual revenue
~28,000 employees in ~50 countries
Organization Structure:
Executive Leadership (BDX)
3 Segments: Medical (BDM), Diagnostics (BDD), Biosciences (BDB)
9 Organizational units
Customers:
Healthcare Institutions, Life Science Researchers, Clinical Laboratories, the
Pharmaceutical Industry and General Public
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BD: Meeting important, underappreciated healthcare needs
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GPDS provides a structured, cross-functional development and
review process to improve project and portfolio performance
Business Review Process
Multiple technical, commercial and design evaluations.
US
Sales &
Mktg
Global
Sales
& Mktg
Open
R&D
Core
Team
Leader
Open
Quality
Operations
Concept
Definition
Develop
Qualify
Launch
Legal
HR
Cross-Functional
Core Teams
Core Team Leaders
managing a project team
to deliver a technically
and financially
successful project
PDT
Review
PDT
Review
PDT
Review
PDT
Review
Portfolio Decision Team
Cross-functional leadership team evaluating project
performance within greater project portfolio context.
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“’Companies without effective new product portfolio
management and project selection face a slippery road downhill.”
-Robert Cooper, creator of Stage-Gate® product development process
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Connecting the Capability Silos
Portfolio management is the nexus of each unit’s management system
Strategic Priorities & Current Operations
Master Project List,
Performance to
Target
Strategy
Development
Revenue Planning &
Budget Development
Business Structure
Portfolio
Management
Project Value &
Progress
Project Execution
Resource Supply
Project Priorities,
Selection, &
Decisions
Resource Need & Supply
Investment &
Performance
Targets
Strategy Priorities
Functional Resource
Management
Resource Need & Assignment
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G3 is a multi-phased BDX initiative that will deliver a single, GPDS-based
project portfolio management framework, representing both process and
technology, to BD’s functions resulting in a new level of:
1. Global Governance over Product Development Investments
2. Global Harmonization to drive apples-to-apples comparison
3. Global Transparency to ensure all stakeholders have the information
they need make effective project portfolio-related decisions
3
G Portfolio Initiative
Global Transparency
Global Harmonization
Global Governance
“Where GPDS Portfolio Management meets World-Class Technology solutions“
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Portfolio management and governance at BD
Corporate Strategy and
Budget (Office of CEO,
Operating Committee)
BDX
Segment Strategy (Segment
EVP, CFO)
Unit Product Portfolio
Management (Portfolio
Decision Teams)
Cross-Functional Project
Excellence (Core Team
Leaders)
BDB
Unit 1
BDM
BDD
Unit 2
Unit 6
Unit 7
Core
Team
Unit 9
Core
Team
Core
Team
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G3 Environment
A single repository, governed by GPDS, for all of BD’s NPD and OE investments!
BDX
Portfolio
Operating Committee
Existing
Investment Lenses
Enhanced
Investment Analysis
(e.g. Strategic Valuation)
G3 System
Break
Through
New Product
Line Extension
Organizational Segments
Corporate Functions
Portfolio
BD Medical Segment
Portfolio
BD Biosciences Segment
Portfolio
Operational Effectiveness
BD Segments
BD Diagnostics Segment
IT
Portfolio
Manufacturing
Portfolio
Marketing
Portfolio
OE
Portfolio
Regulatory
Portfolio
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G3 Environment (R&D Breakdown)
A single repository, governed by GPDS, for all of BD’s R&D investments!
BDX
Portfolio
Operating Committee
Existing
Investment Lenses
Enhanced
Investment Analysis
(e.g. Strategic Valuation)
G3 System
Break
Through
New Product
Line Extension
Organizational Units
Organizational Units
Portfolio
Pharmaceutical Systems PDT
Portfolio
Ophthalmic Systems PDT
Portfolio
Diagnostic Systems PDT
Portfolio
PreAnalytical Systems PDT
Portfolio
BD Biosciences Segment
Diabetes Care PDT
BD Diagnostics Segment
BD Medical Segment
Medical Surgical Systems PDT Portfolio
Organizational Units
Immunocytometry Systems PDT
Portfolio
Pharmingen PDT
Portfolio
Discovery Labware PDT
Portfolio
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G3 Configured to Support GPDS
Integrated process and platform to provide actionable information.
Governance
Capability
CONCEPT
DEFINITION
Workflow
DEVELOPMENT
QUALIFICATION
LAUNCH
Process
Project Info & Contract
Design Review
Project Business Case
Commercial Review
Portfolio Analysis
PDT Review
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Driver 6
Driver 9
Driver 2
Driver 7
Driver 10
Driver 5
Driver 8
Driver 3
Driver 4
Driver 1
0%
5%
10%
15%
20%
25%
30%
35%
Builder is the “Single Source
of Truth,” where project and
portfolio information is stored,
such as project type, financials,
strategic impact, and project
governance (Workflow)
Optimizer is the analytical component that features sophisticated tools
such as Analytical Hierarchical Process and Efficient Frontier to help guide
your investment decisions. Optimizer provides the ability to force projects
in or out, create project dependencies, and optimize based on multiple
constraints (strategy, financial, risk, schedule).
Dashboard provides tracking through a quick status view of key
project indicators.
BDX Efficient Frontier
524 , 102%
419 , 101%
314 , 99%
100%
262 , 96%
367 , 101%
472 , 102%
400.00
500.00
210 , 92%
157 , 85%
80%
105 , 75%
52 , 61%
NPV (%)
60%
40%
20%
- , 2%
0%
0.00
100.00
200.00
300.00
R&D FY10 to FY12 ($M)
600.00
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UMT’s Implementation-to-Success Approach
Broad Adoption &
Deployment
Expansion &
Refinement
“Sustaining”
Initial
Implementation
“Scaling up”
“Building the Foundation”
•
•
•
•
•
•
•
•
Portfolio Calendar
Process Integration
Knowledge Transfer
Broader Audience
•
•
•
•
Training and on-boarding
Socialization
Continuous improvement
Enterprise capability
Envisioning
Introduction to methodology
Best Fit Configuration
Early Adopters
Prepare for
Change
Execute the
Change
Sustain the
Change
Communication and Socialization
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Our Phased Implementation Approach
Phase I
R&D
Build
& Deploy
Foundation
Drive Deep Adoption…BDX
Portfolio Guidelines & Analytics
Phase II
R&D
Phase III
Global IT
Global R&D
Roll-Out
Excel Based Global
Portfolio Reviews
G3 Process
Alignment
Phase IV
BDT
G3
Global IT
Roll-Out
Phase IV
Planning
Q1FY08
Q2FY08
= Go-Live Dates
Q3FY08
Q4FY08
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There is a wide array and depth of capabilities in the Microsoft EPM System and fully exploiting
these capabilities requires time and resources. As a result, we prioritized the implementation of
these capabilities based upon our organization’s portfolio needs.
• Compliance
• Single Source of Truth
• Portfolio Optimization
• Complete
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•Develop Standards and
Best Practices
•Managing Project Priorities
•React to External Forces –
Economic, Competitive,
Market, Regulatory
•Risk Assessment & Re-evaluation
•Pipeline vs. Capacity Planning
•Portfolio Scheduling
•Single Source of Truth
•Value/opportunity
management
•Automation of Stage/Gate
Model
•Status and Tracking
Improve
Effectiveness
& Agility
Improve
Visibility
Reduce
Execution
Risk
Maximize
Value
•Portfolio optimization and selection
•Consensus on Strategic Priorities
•Align Portfolio to Strategy
•Portfolio Balancing
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Organization
• Must engage leadership at every level of portfolio review
• Stakeholder input ensures that the design and process is robust and
repeatable
Process
• Need clear definition of roles and responsibilities to coordinate and
execute portfolio reviews
• Data quality is critical and standards need to be centralized and
enforced
Technology
• Platform needs to be flexible to accommodate different project types
and functions
• More active users ensures freshness of data
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scussimano@umt.com
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Step 1
Step 2
Step 3
As-Is Process Analysis /
Industry Research on Topic
CTQ Refinement / Creation
of High-Level To-Be
Process
CTQ Gathering
Case Studies
From EPM Vendors
CTQ #1…
CTQ #2…
CTQ #1…
CTQ #2…
Step 4
Vendor Interviews / Demos
Step 5
RFP Process /
Final Vendor Selection
Our
CTQs
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Consulting
Technology
Microsoft Confidential
37
Support
Training
Why Microsoft and UMT?
Top 4 Critical To Quality (CTQ) Requirements of our EPM Partner:
CTQs
Flexible Workflow to Support Different
Functions within a Single Repository
Microsoft and UMT
Met
Granular User Security Controls to Protect
Integrity and Confidentiality of “Crown
Jewel” Investment Data
Exceeded
Capability to be a long-term Trusted EPM
Technology and Process Partner…”Start with
Exceeded
Portfolio Mgmt and evolve into an Integrated
Portfolio Mgmt and Work Mgmt solution”.
Ability to integrate with and have deep
knowledge of Existing Project Management
Tools (Project Server 2007)
Exceeded
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