Hi Tech – MNC, EMC Where Breakthroughs Happen Orna Berry, Ph.D. Corporate Vice President and General Manager for Israel Center of Excellence May 2013 Source: State of Israel Ministry of Industry, Trade & Labor Strategic Planning • • • • • • • • Uniqueness & Mission Identity & Vision Key Strategies Core Competencies/Strategic Areas Focus: Continue, Start & Stop Doing Key Success Measures Organizational Vision Organizational Strategy Israel Hi-Tech Eco-System Incubators Government Support Experienced 2nd time entrepreneurs Defense Incubators Computer Science Students and Electrical engineering Availability of Technical People & Management Expertise Global Hi-tech Companies Existing Technology Infrastructure Corporate R&D Immigration Leading Academic Institutions & Research Multi National Corp. Entrepreneurial culture Corporate Spin-Offs Seasoned VC Community Israel is in the top 5 Countries of Innovation & Technology Technology and Innovation are measured according to main metrics – research and development effort, scientific and research talent, and the level of innovation. Patents Per Capita United States takes first place, Israel is 5th Percentages of Economic Output Countries Devote to R&D Investment Israel is in 1st place, followed by Sweden, Finland, Japan, and Switzerland, which make up the top five. The U.S. ranks sixth. * Martin Prosperity Institute, University of Toronto. Oct 2011 Scientific papers per capita 109 per 10,000 people. In the top 5 worldwide. Number of scientist per 10,000 135 engineers per 10,000 citizens. In comparison, the United States has 85 per 10,000, 70 in Japan and 60 in Germany. Ratio of university degrees per head 24% of Israel's workforce holds university degrees. 12% hold advanced degrees. Ranking third in the industrial world, after the United States and Holland * International Data Corporation (IDC) Israel, Ltd Israel COE Mission: Why do we exist? Business-Driven Innovation from market needs to sellable products Accelerate EMC’s growth and value to Accelerate EMC’s growth and value to its customers, its customers, by by leveraging Israel’sIsrael’s unique vanguard culture and leveraging unique vanguard “goand get“go it”get spirit culture it” spirit for business-driven innovation focused for business-driven innovation, focused on key market on key market needs and pioneering needs and pioneering technologies technologies Success Factors: What have helped us succeed? Tech start-up mindset • Creative problem solving, resourcefulness • “Go get it” spirit – speed to execution • Stringent focus on quality Domain expertise mapped to EMC’s strategic technologies • Big Data and Analytics • Flash • Cloud Management • Security • Replication Proven contribution to EMC’s top line • M&A: Kashya (Recoverpoint), nLayers (Ionix), B-Hive (VMware), Cyota (RSA), Illuminator… • Customer-centric product development Top talent and university programs • University collaboration: Ben Gurion, Technion, Technion • Talent – existing and new talent, strong team work at management , CTO Forum and Israel presence with sales, acticities around innovation Israel COE: Businessdriven Innovation “Converting Knowledge to Money” EMC Israel's key competencies have been born from acquisitions In Israel, all but Flash and Green Plum activities started through M&As 1991 EMC starts operation in Israel 1996 EMC Israel’s Sales Operation is formally established 1997 EMC established its R&D center in Kibbutz Nirim 2006 EMC Israel development center is established 2007 2011 EIDC and RSA consolidate to the new Israel COE in Herzeliya EMC established Beer-Sheva site 2012 Our Domain of Expertise Flash Big Data • Flash in the server (VFcache) • Productization of analytics components • All flash array (XtremIO) • Security Data Sciences • Flash vision for files • Data Science activities PoC in various verticals High availability Security • Replication everywhere • Cyber security • Virtual replication • Mobile security • Cloud edition infrastructure & service • From block to file to object • Cloud security • Fraud • Risk Based Security /authentication Management Cloud • Cloud Based Authentication • Cloud Based Replication • Migration in Hybrid Cloud Israel COE Strategy: How we will accomplish our mission? Key Strategies Combination of creativity and quality, fast delivery Internal Innovation Development 1 External Innovation Integration Via M&A and Equity Investments 2 Leveraging Academia 3 Key domain expertise mapped to EMC’s strategic technologies Proven contribution to EMC & RSA top line Top talent and university programs Key Success Measures: How will we know we have succeeded? Results Measures •Return on Innovation (ROI²) •Freshness Index: Revenue from products launched in the past 3 years/total annual revenue •Over-exceed BUs targets •Areas of expertise – corp. leadership Process Measures •Number and type of ideas in the pipeline •budget dedicated to innovation •# of ideas submitted in the past x months •# of patent submissions •% of executives time spent on innovation Organizational Vision (developed by 2 nd tier COE managers) COE is full of positive energy, aimed at excellence, business-driven innovation and constructive competition. Teams combine talents who are innovative, willing to take calculated risks and comfortable working in ambiguity and experimentation, together with talents who are pragmatic and devoted to execution and quality delivery. People work in a flexible team structure, allowing them to move from one team to another when required and interested. Many forums and networks foster cross-pollination of ideas. Rewards & recognition plans are also team-based to encourage cooperation and collaboration. Internal and external networks bring many business-driven and innovative ideas. We use the wisdom of these networks to select the best ideas. Once an idea makes it into the pipeline, we have fast decision-making processes to ensure fast development and delivery. We celebrate successes and turn our failures into learning experiences. We invest in developing people knowledge and skills at all levels, with a particular focus on innovation competencies and tools. Universities are seeking our cooperation and joint projects are monetized. People at the COE are happy, interested in what they do and having fun doing it. They bring their friends to work with them and we have become an employer of choice in Israel. We have a strong reputation within EMC for our speedy response to important business needs and gaps, thereby accelerating EMC’s revenues and profitability. Israel COE Organizational Vision: How do we organize & manage ourselves for innovation Future Model Enablers Structure allows for business-driven innovation together with quality delivery & efficient operations New positions: CTO, PMO, BA Integrated G&A functions & BS Budget Leadership Mandate Hire and develop talent, ABD Innovation into the leadership agenda, remove barriers to innovation, focus on quality delivery Role Modeling Accountability & Authority Innovation Budget Key Processes Understand Business Needs/Gaps, leverage IL innovation to EMC $ scale, increase speed, develop metrics & a review mechanism Exposure & Engagement Process, Metrics, Mechanisms Authority, Ownership, Budget ABD Innovation and quality delivery mindset, inclusive sense of belongingness, branding and community relations Culture strategy and champions Employment branding strategy Networking Effectiveness & Innovation measures Mechanism for review and closing gaps Aligning rewards with performance Commitment to goals & metrics Information Availability Rewards budget Organizational Structure Mindset & Skills Incentives & Metrics The Role of the COE Management Team (developed by the COE management team on August 31st, 2011 with Dr. Orit Menkes) Strategize & Evangelize Set, communicate & evangelize strategy Implement Efficiently Manage execution; Enable consistent & productive performance Develop Eco-System Develop eco-system of internal and external productive relationships Promote Brand Promote local product & employment brand of EMC/RSA Unite & Inspire Create “one team” spirit to drive innovation