The document discusses innovation and portfolio management, focusing on determining what projects and initiatives to cut or keep during times of economic uncertainty. It provides an overview of current business trends, strategies for responding to a recession, and an example of how these strategies could affect IT portfolio selection decisions. Decision making approaches and tools are presented to help organizations prioritize projects, including a rainbow matrix to decrease priority levels based on value and cost.

1. Innovation and Portfolio Management: Determining What to Cut and What to Keep U.S. Call-in toll-free number: 1-866-569-9708 U.K. Call-in number: 44-02031070273 Conference Code: 949-335-5580

2. Agenda Paul Sloane - Creativity and Innovation Sue Fisher - IT Portfolio Management Mike Arrigo - Moderator | U.S. Call-in toll-free number: 1-866-569-9708 U.K. Call-in number: 44-02031070273 Conference Code: 949-335-5580

3. No World Borders What We Do Advisory & Assessment Services Management consulting Solution development & implementations Project coordination,Training, Facilitation Human & Investment Capital Interim Management U.S. Call-in toll-free number: 1-866-569-9708 U.K. Call-in number: 44-02031070273 Conference Code: 949-335-5580

4. No World Borders Team Client Experience

5. According to BusinessWeek, innovation today is “much more than new products.” Innovation is also “reinventing business processes and building entirely new markets that meet untapped customer needs.” The ubiquity of the Internet and globalization of the business expand generation of new ideas. Innovation is then “selecting and executing the right ideas and bringing them to market in record time.”

6. Innovation Maturity Phases (CMMI)

7. Constant Incremental Enhancements Blended with Innovative Re-designs iPod iPhone

8. From London - Paul Sloane Creativity and Innovation Author of "The Innovatiive Leader" and consultant to American Express, British Telecom, Cendant, Experian, Lloyds of London, Motorola, Reckitt Benckiser, Shell Oil, 3M, and other firms. His Creative Leadership and Ideas Workshops are highly reviewed world-wide. 'Paul delivered an inspirational half day. His session got the highest ratings of any on our meeting and gave us great ideas we're implementing to drive positive change.' - Motorola

9. Now Speaking Paul Sloane U.S. Call-in toll-free number: 1-866-569-9708 U.K. Call-in number: 44-02031070273 Conference Code: 949-335-5580

10. Innovation Funnel Launch Ideas Ideas Ideas Ideas Assessment Gate Development Gate Test Gate

11. Paul Sloane U.S. Speaking Engagements October 9, 2008 No World Borders Connected World Conference Newport Beach, California October 8 th & 10 th 2008 Available for Leadership & Strategy Workshops

12. Decision Making and Selection The Art of Change & Control During a Recession Basic Selection Approach Current Trends and Strategies Example- IT Strategy Response Defining the Process Organizing the Selections for Planning and Contingencies

13. Decisions What to Cut and What to Keep

14. Budget Distribution Example

15. Budget Distribution Example

16. Selection Decisions Daily Work Incremental Improvements Innovative Ideas Plans & Contingency Plans Must Have Corp Must Have Process Small Improvement High Priority Projects Med Priority Projects Low Priority Projects

17. Current Trends and Strategies World Trends Economic and Political Uncertainty Global Economy Shift Increased Power Costs and Green Movement Resulting Business Strategies Stay the Course Expect Reduced Sales and Higher Business Costs Risk Attitude- Moderate Value Objective- Maintain Opportunistic Seek New Opening Market Revenue Mergers & Acquisitions Leverage Economic Shifts to Justify Improvements Risk Attitude- High Value Objective- Create Survival Eliminate Long-term Costs for Short-term Profits Risk Attitude- Zero Value Objective- Sacrifice Long-term Innovation Benefits Short-term Innovation Benefits Immediate Benefits Only

18. Example Effect of Business Strategies on IT Selection Stay the Course Expect reduced sales and higher business costs Power Transportation Foreign Purchases (based on exchange rates) IT Response Focus Cost Reductions in Areas of Higher Cost Slow or Reassess New Product/System Development Seek Short Projects with Immediate Benefits Structure Long-term projects with business benefit derived throughout the project Improve Project Success Rates with Better Planning Increase Early Project Terminations Expect to Respond to New Conservation Regulations Develop Scalable IT Processes to Reduce Costs During Sales Slump Communicate Plans and Results in Terms of Business Value Business Process Management Portfolio Management

19. BPM Designer: Process Simulation | Configure Simulation Scenarios (Loads) Observe and manage queues in real time. Adjust staffing/efficiency, etc. Extensive cost-based, time-based, and unit-based reporting. Generate detailed reports to assess process design. Export reports for external analysis.

20. Low Value High Cost

21. Selection Decisions Daily Work Incremental Improvements Innovative Ideas Plans & Contingency Plans Must Have Corp Must Have Process Small Improvement High Priority Projects Med Priority Projects Low Priority Projects

22. Rainbow Matrix Decreases in Priority and Level of Service

23. SEE IT IN ACTION Modeling Tools

25. QUESTIONS

26. Innovation & Portfolio Management at your Company Sue Fisher & Paul Sloane Half Day Assessments Leadership & Strategy Workshops [email_address] 949-335-5580 toll free U.S. 877-623-3287 fax: 888-357-1374

27. Drawing iPhone or Blackberry Book - The Innovative Leader

28. Innovation and IT Portfolio Management Determining what to cut and what to keep THANK YOU FOR YOUR PARTICIPATION