Eric Iverson, Vice President of Information Technology, Sony Pictures, gave this presentationat at Pepperdine University’s free conference, “From Information Systems to Innovation Systems: Establishing the Next Generation Information Systems Department,” on Wednesday, October 12, 2011. The conference was sponsored by the Center for Applied Research at the Graziadio School of Business and Management.

1. Iverson on Innovation - Innovating OTJ Pepperdine University 10-12-11 Coach Eric Iverson VP IT Sony Pictures Television

2. Agenda Welcome – Getting to know you a little… About Sony Pictures Part 1: Adventures Innovating in Master Data Management – an impression… Part 2: Innovation Lessons from the Journey Wrap up & The Mission 10/12/2011 2

3. THE SONY CORPORATION Networked Products & Services Consumer Products & Devices Financial Services Sony Music Entertainment Approximately $7 Billion in Revenues per year 10/12/2011 3 page 3

4. HUASO SONY PICTURES ENTERTAINMENT Motion Pictures Home Entertainment Television Digital Productions FLORESTA 10/12/2011 4 *Includes wholly and partially owned networks & production companies

5. SONY PICTURES ENTERTAINMENT Corporate Based in Culver City, CA, SPE headquarters is a 44 ½ acre working studio lot with 18 sound stages, world-leading sound mixing and recording and state-of-the-art post production facilities 10/12/2011 5

6. Industry is going through revolutionary change due to digital media technologies Because of the rapid uptake of digital distribution, the industry will make more radical changes to how we distribute content during this 10-15 year window than at any other time entertainment history 10/12/2011 6

7. Part 1 Adventures Innovating in Master Data Management 10/12/2011 7

8. Our journey starts in 2003 while solving another problem: Digital Media Digital Media Initiative and our Dream You can’t manage Digital Media without great metadata and rights 10/12/2011 8

10. 1500 unique product elements to Distribute Spiderman world-wide

11. Hundreds of production & clearance agreements

12. >25,000 lines of rights data for Spiderman

13. 200 attributes make up the move

14. Copyrights and title registrations

15. 1000’s of marketing materials

16. Acquire rights“Now multiply all of the above information x 140,000 titles in Sony Pictures’ library…” 10/12/2011 9

17. So Steve and I set out on our Intellectual Property Management journey 2004 10/12/2011 10

18. Terminology: Master Data is: The golden data record that everyone uses. It enables the rapid and accurate connection of processes… typically through business technology 10/12/2011 11

19. Our SAP Project and the 800lbs Gorilla What Happened: Aligned project to aggressive SAP project Threw strategy out the window Hired an excellent team, quickly Created a new way to integrate at SPE Kept the MPM# (financial) separate from the Title ID No GPMS, No Account # - MONEY Talks Created a new central business team for data 2004 1 10/12/2011 12

20. Innovate with new customers - Merged divergent projects 2004 2 What Happened Co-opted Acquisitions group project eliminating 57 step procedure shaving weeks off of acquisition propagation Cleverly squeezed in contract and key data amidst other project (no time for rewrite) Drove next-gen technology Began creating “their” ID. Stayed flexible - be everyone’s needed ID: even if it is not the master ID. Just be the source! Persisted 10/12/2011 13

21. Separating the twins 2005 3 What Happened: Separated our twins Built standards services based integrations Negotiated key master elements with our twin Sold GPMS as a source and began to bring people on board Trusted our ability to innovate. A dude and a DB can work just fine Make sure consumers of data knew how to use it 10/12/2011 14

23. Kept technology in the hands of our innovators

24. Developed a way to handle music and rebuilt party master

25. Created “Awesome” communication

26. Did a lot of corporate dating 10/12/2011 15

27. A turn down Digital lane… More devices 2006 5 More Digital More Devices More Metadata More Master Data 10/12/2011 16

29. The strategy process drove buy-in for us

30. Gave confidence to take bold positions

31. It prepared us to be even more opportunistic

32. Our strategy was better because we had already innovated6 Industry Research Lots of Interviews Domain Research 10/12/2011 17

33. Opportunity Knocks: Ventana and the Future of TV Distribution 2009 7 What Happened We knew where we wanted to go (Vision) The Ventana project came along with the goal to dramatically improve the information domestic TV sales and distribution Major innovation on rights Developed integrated music management & clearance Drove more next-gen technology Purposefully lost some battles - because… when you are always innovating, you will still have time… 10/12/2011 18

34. The “Manual Digital” Problem 8 Though digital media held the promise of simplified workflows, much work was still required to move the industry from digital media to digital automation “As Is” “To Be” 10/12/2011 19

35. The Digital Backbone: Data and technology revolutionizing digital distribution 2010+ The Digital Backbone The Completely Automated Digital Workflow “We had to rethink data and process in a digital workflow” BONUS: clever ways to gain agreement when you are innovating: Alphas 10/12/2011 20

36. Our Innovation Journey…. Separate Twins Digital Integration Ventana SAP Project 7 3 5 1 8 6 4 2 Digital Backbone Integration Payoff New Customers Strategy 10/12/2011 21

37. What we’ve accomplished… for now  Key Innovations led to… Connecting approx. 64 systems Managing Over 250K+ titles Creating a 30 day integration capability Providing significant cost savings Supporting Digital Supply Chain automation 10/12/2011 22

38. Part IIWhat did we Learn? “On great adventures, the adventurers must get clever” 10/12/2011 23

39. In a phrase, what is “Innovation” 10/12/2011 24

41. Applying an old idea in a new way

43. Time

44. Imagination & Vision

45. Ability to Realize

46. Perseverance (failure)

47. Knowing what innovation is – is easy

48. Know how to get innovation - is harderIf you have the expertise, vision and passion you will find the resources to make it happen 25

49. Our journey taught us that innovation… …Was in our project’s daily lives …Was a team effort In aggregate we produced a great overall innovation for SPE. However, it was made up of many smaller innovations: Designing creative data structures and key management Creating title MDM department Building of super flexible and precise rights solutions Orchestrating the master data throughout the ecosystem Developing Music Affairs Management Mastering Party (Company) Data Defining Alphas for the DBB Implementing new Technology tools Standardizing integrations (publications and WS) for this kind of data 10/12/2011 26

50. So.. Can I still innovate if I am not an innovation superhero? Of course. Build teams that innovate 10/12/2011 27

51. Myers Brigs and your innovating team: Quick Review 10/12/2011 28

52. Create teams that compliment each other and will maximize your innovation capability… Expertise Time Vision Realization Perseverance Note source 10/12/2011 29

53. Adam –vs- Mike 10/12/2011 30

54. Your job: Encourage Innovation Behaviors in your Teams “Show me any great innovation and I will show you a great innovating individual or TEAM behind it.” “Innovations don’t create themselves…” 10/12/2011 31

55. Fostering Innovation Visioning - Thinking Like an Innovator How do we solve problems? By asking ourselves questions What are examples of good innovation questions? What do we need to know about this problem? Why is it this way? How might we solve this problem? “What if” we could… What would let us bypass the problem in the first place? What is a better way of doing the same thing? Different way? What have others tried? If they failed, why? Where do you Innovate best? During work? @ Work but between work activities? @ Home – social or inactive? @ Home, but doing something active (mow the lawn)? Away from home and work? “It’s easy to think small once you can think big. It’s hard to think big if you can only think small” 10/12/2011 32

56. Enemies of Innovation “If one of these ‘enemies’ getting in your way? Write it down. Ask yourself, how do I overcome this challenge? Write down the answer and do it.” 10/12/2011 33

57. Now that I have a team, where do I Innovate? Biggest Value Careful in box 4 What is your innovation focused on? …. Winning ….or Not Losing 10/12/2011 34

58. But… is innovation important for your organization? 10/12/2011 35

59. The Dow Jones 30: What is interesting about this list? 10/12/2011 36

60. Innovation is important for almost all organizations. Because organizations that innovate… One company made it 100 years 93% 80% 57% Since Crash in 1929 Since college Since I was born 10/12/2011 37

61. THRIVE 10/12/2011 38

62. The Mission For you: Write down the good ideas you already have but that you lost the spirit to pursue What can you do to move this forward right now. Today. How can you persevere this time? For your teams: Build great complimentary teams. Relook at your team with Myers Briggs goggles. Do you have teams that can innovate? Assess where your organization’s innovation is focused? Help optimize the innovation focus with skills, talent, and priorities Teach and encourage innovation behaviors. Expect your team to innovate Show a great team the mountain and let them take it “Your every day innovations make the difference.” 10/12/2011 39

63. Questions Anyone? 10/12/2011 40