This document summarizes a presentation on navigating today's global regulatory environment and best practices for managing compliance. The presentation discusses the top 10 regulations companies face, how the regulatory landscape is constantly evolving, and the broadening view of sustainability beyond just regulations. It emphasizes that compliance is key to business value drivers like time to market, cost, quality and innovation. A framework is provided for a systematic approach to compliance, covering areas like identifying requirements, capturing product data, analyzing compliance, and documenting the process. Options for tracking regulations include doing it internally, hiring consultants, or using a regulatory management system.

1. NAVIGATING TODAY’S GLOBAL
REGULATORY ENVIRONMENT
BEST PRACTICES IN MANAGING THE
EVER-CHANGING COMPLIANCE LANDSCAPE
W e d n e s d a y, M a y 1 8 , 2 0 1 1

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Copyright © 2011 IHS Inc. All Rights Reserved. 2

3. Meet the Speakers
Jim Brown
President
Tech-Clarity
Cindi Hines
Director of Engineering Solutions
IHS

4. making the value of technology clear
Designing Sustainable Products
Jim Brown, President
Tech-Clarity, Inc.
© Tech-Clarity, Inc. 2011

5. making the value of technology clear
Agenda / Goals
 Top 10 Regulations (and more)
 Business Impacts of Sustainability
 Compliance / Sustainability Challenges
 Designing for Sustainability
© Tech-Clarity, Inc. 2011

6. making the value of technology clear
Introduction - Jim Brown
 Hall of Fame Football Player
 Godfather of Soul
 Jim Carrey
© Tech-Clarity, Inc. 2011

7. making the value of technology clear
Introduction - Jim Brown
 Hall of Fame Football Player
 Godfather of Soul
 Jim Carrey
© Tech-Clarity, Inc. 2011

8. making the value of technology clear
Introduction - Jim Brown
 Industry – General Electric Major Appliances
 Manufacturing engineering, systems consulting
 Management Consultant – Andersen (Accenture)
 Enterprise applications for manufacturers
 Software Industry – SCT (Infor) / Sequencia (OSI)
 Product strategy, product management, marketing executive
 PLM Industry Analyst
 Technology Evaluation Centers / PLM Evaluation Center
 VP & Group Director, Aberdeen Group
 Founder and President, Tech-Clarity, Inc.
© Tech-Clarity, Inc. 2011

9. making the value of technology clear
Relevant Research
© Tech-Clarity, Inc. 2011

10. making the value of technology clear
The Regulations
© Tech-Clarity, Inc. 2010

11. making the value of technology clear
Evolving Requirements
 Regulations Built to Grow
 SVHC candidate lists
 Diminishing reporting limits
 Expiring exemptions Projected REACH SVHC Growth
(Cobham Technical Services)
 Local implementations
 RoHS Recast
© Tech-Clarity, Inc. 2011

12. making the value of technology clear
Beyond the Regulations
 Customer Requirements
 Corporate “Green” Mandates
 Supplier Scorecards
 NGO Reporting (Greenpeace)
© Tech-Clarity, Inc. 2011

13. making the value of technology clear
Broadening View of Sustainability
© Tech-Clarity, Inc. 2011

14. making the value of technology clear
Broadening View of Sustainability
© Tech-Clarity, Inc. 2010

15. making the value of technology clear
PLM Value Drivers
 Faster time to market
 Increased product sales
 Decreased product cost
 Lowered internal cost
 Increased quality
Without Compliance, None of this is Achievable
© Tech-Clarity, Inc. 2004

16. making the value of technology clear
Impacts of Sustainability on Product Value
Product Value Driver Consequence of Noncompliance
Time to Market Product Introduction Delays
Design Rework
Delayed Rollout to Geographies
Product Cost Last Minute Design Changes
Need to De-Optimize Designs
Fines and Penalties
Unforeseen Supply Chain Costs
Manufacturing Process Changes
Unidentified Pollution and Exposure Control
Development Cost Design Rework
Manual Creation of Documentation
Manual Effort to Catch Flaws
Value of Product Portfolio Limited Markets for Products
Product Value Discounted for Risk
Company Value Discounted for Risk
Negative Public Perception
Criminal Prosecution
Innovation Last Minute Design Constraints
Product Delays or Cancellations
Costly Late Changes Degrade Performance
Success Rate of New Product Development Missed Window of Opportunity
Products Not Valid for Geographies
Product Registration and Limitation
Unforeseen Pollution Control Issues
Product Quality …
Regulatory Approval …
© Tech-Clarity, Inc. 2011

17. making the value of technology clear
Windows of Opportunity
© Tech-Clarity, Inc. 2011

18. making the value of technology clear
Sustainability Design Flaws
 Sustainability design flaws are points in time
where past inattention to sustainability
issues become critical, and sometimes
public, problems.
© Tech-Clarity, Inc. 2011

19. making the value of technology clear
Sustainability Flaws Impact Profits
 Found in design
 Found in production
 Found in logistics
 Found at customer
© Tech-Clarity, Inc. 2011

20. making the value of technology clear
Sustainability is Revenue Protection
© Tech-Clarity, Inc. 2011

21. making the value of technology clear
Compliance Challenges
© Tech-Clarity, Inc. 2010

22. making the value of technology clear
Taking a Systematic Approach
“Those that thought that compliance with RoHS
was a one-time effort are now finding that
developing sustainable, environmentally
compliant products is a never-ending – and
potentially very costly – pursuit.”
Jim Brown
President
Tech-Clarity, Inc.
© Tech-Clarity, Inc. 2011

23. making the value of technology clear
A Framework for Compliance
REACH
Green WEEE
Product China
RoHS RoHS
Compliance
Halogen Prop 65
Free
Customer
Specs
© Tech-Clarity, Inc. 2011

24. making the value of technology clear
A Framework for Compliance
Identify
Regulations
Requirements
Lists
REACH
Green WEEE
Product China
RoHS RoHS
Compliance
Halogen Prop 65
Free
Customer
Specs
© Tech-Clarity, Inc. 2011

25. making the value of technology clear
A Framework for Compliance
Identify
Regulations
Requirements
Lists
Capture
REACH BOMS
Green WEEE Configurations
Product China
RoHS RoHS
Compliance
Halogen Prop 65
Free
Customer
Specs
© Tech-Clarity, Inc. 2011

26. making the value of technology clear
A Framework for Compliance
Identify
Regulations
Requirements
Lists
Capture
REACH BOMS
Green WEEE Configurations
Product China
RoHS RoHS
Compliance
Halogen Prop 65
Free Collect
Customer Compositions
Specs Disclosures
Certificates
© Tech-Clarity, Inc. 2011

27. making the value of technology clear
A Framework for Compliance
Identify
Regulations
Requirements
Lists
Capture
REACH BOMS
Green WEEE Configurations
Product China
RoHS RoHS
Compliance
Halogen Prop 65
Free Collect
Customer Compositions
Specs Disclosures
Certificates
Analyze
Bill of Substance
Compliance
Exceptions
© Tech-Clarity, Inc. 2011

28. making the value of technology clear
A Framework for Compliance
Identify
Regulations
Requirements
Lists
Capture
REACH BOMS
Green WEEE Configurations
Product China
RoHS RoHS
Compliance
Halogen Prop 65 Collect
Mitigate Free
Customer
Noncompliance Compositions
Specs Disclosures
Risks
Certificates
Analyze
Bill of Substance
Compliance
Exceptions
© Tech-Clarity, Inc. 2011

29. making the value of technology clear
A Framework for Compliance
Identify
Regulations
Requirements
Lists
Document
Capture
Certificates REACH BOMS
Notifications Configurations
Audit Trail Green WEEE
Product China
RoHS RoHS
Compliance
Halogen Prop 65 Collect
Mitigate Free
Customer
Noncompliance Compositions
Specs Disclosures
Risks
Certificates
Analyze
Bill of Substance
Compliance
Exceptions
© Tech-Clarity, Inc. 2011

30. making the value of technology clear
A Framework for Compliance
Identify
Regulations
Requirements
Lists
Document
Capture
Certificates REACH BOMS
Notifications Configurations
Audit Trail Green WEEE
Product China
RoHS RoHS
Compliance
Halogen Prop 65 Collect
Mitigate Free
Customer
Noncompliance Compositions
Specs Disclosures
Risks
Certificates
Analyze
Bill of Substance
Compliance
Exceptions
© Tech-Clarity, Inc. 2011

31. making the value of technology clear
Key Takeaways
 Regulations and requirements are complex and
dynamic
 The business impact is potentially substantial
 Significant challenges include data collection –
and the scope is increasing drastically
 Requires a sustainable approach
© Tech-Clarity, Inc. 2011

32. making the value of technology clear
Thank You
jim.brown@tech-clarity.com
www.tech-clarity.com
www.tech-clarity.com/clarityonplm (blog)
www.twitter.com/jim_techclarity
© Tech-Clarity, Inc. 2011

33. Regulatory Risk
“Regulation and compliance are the
number 1 risk factors for businesses.”
- Ernst & Young, The Top 10 Risks for Business, 2010
Copyright © 2011 IHS Inc. All Rights Reserved. 33

34. Regulations Tracking is Complex
Copyright © 2011 IHS Inc. All Rights Reserved. 34

35. How Do You Track Regulations?
Copyright © 2011 IHS Inc. All Rights Reserved. 35

36. Considerations
• Corporate audit • Resources
• Engineering, ESH •SQL vs. Oracle
• Contractor access • Desktop vs. web
• Library of laws and Co. • User numbers
documents , standards • Infrastructure capacity
• Performance
• IT support services
How is the
Company
system to
Criteria?
be used?
User
Data Content
Interface &
and
• Access to laws Reporting • Data structure
•
Utilization?
Links to websites Functions? • Responsibility for
• Translations compliance
• Document size • Email notification
constraints
• Change management
• Search capabilities tools
• Key word definition
Copyright © 2011 IHS Inc. All Rights Reserved. 36

37. Options:
On Your Own
On Your Own
Worldwide Internal staff
• Visit local governments
• Search the web
• Interpret and translate
• Post to internal intranet
Considerations
RESOURCES:
• Web search time
• Constant monitoring
• Time taken away from design/ more productive time
• In-country staff where you are going to market
QUALITY
• Consistency
• Updates
• Translation accuracy
Copyright © 2011 IHS Inc. All Rights Reserved. IHS Highly Confidential; not for disclosure beyond IHS colleagues with a need to know. 37

38. Options:
Consultants
Consultants
Regulatory specialist performs research, submits report
Considerations
COST:
By subject, by country variables - high cost per report
QUALITY:
• Frequency of updates
• Expertise in multiple countries
ACCESS:
• Global operations access
• Search capabilities
Copyright © 2011 IHS Inc. All Rights Reserved. 38

39. Options:
Regulations Management System
Regulatory Management System
Application and regulatory monitoring system. Expert legal analysts
provide regulatory content. Extensive application features.
Considerations
COST:
• Annual subscription
• Worldwide content at fixed cost
QUALITY:
• Automatic weekly/monthly of updates
• Expertise in multiple countries
ACCESS:
• Global operations access
• Single system
• Multiple search capabilities
Copyright © 2011 IHS Inc. All Rights Reserved. 39

40. EIATRACK
Environmental Intelligence Analysis
Copyright © 2011 IHS Inc. All Rights Reserved. 40

41. Best Practice:
Content - Quality and Completeness
• Beveridge & Diamond
 leading U.S. law firm whose practice is focused on environmental law, land use and
related litigation.
 worked extensively with clients in the electronics industry on existing and proposed
environmental requirements affecting company operations and products.
• Holland + Knight
 one of the largest law firms in the world; specializing in key Asian jurisdictions, with a
focus on geographic China.
 attorneys in the Government have extensive experience in negotiating with
government agencies and counseling rulemaking efforts, including those that affect
the electronics/hi-tech industries.
• Hunton & Williams
 more than 850 attorneys serve clients in 80 countries from 17 offices around the world.
 provide EIATRACK with their extensive knowledge of European legislation
Copyright © 2011 IHS Inc. All Rights Reserved. 41

42. Best Practice:
Content - Quality and Completeness
Matrix Special Reports: spreadsheets summarizing topical legislation
updates across jurisdictions.
Pending and Enacted Legislation Matrices
Copyright © 2011 IHS Inc. All Rights Reserved. 42

43. Best Practice:
Easy, Flexible Access
Copyright © 2011 IHS Inc. All Rights Reserved. 43

44. Best Practice:
Easy, Flexible Access
Copyright © 2011 IHS Inc. All Rights Reserved. 44

45. Best Practice:
Easy, Flexible Access
Select Jurisdiction
Copyright © 2011 IHS Inc. All Rights Reserved. 45

46. Best Practice:
Change Management
• How do we manage regulatory change?
• How do we assign responsibilities and track
compliance?
• How do we ensure compliance throughout the
project’s life-cycle?
• What is the best way to protect stakeholder
interests?
Copyright © 2011 IHS Inc. All Rights Reserved. 46

47. Best Practice:
Change Management
Regulatory Alerts
Copyright © 2011 IHS Inc. All Rights Reserved. 47

48. Regulatory Compliance
CHALLENGE SOLUTIONS MANAGED SYSTEM BENEFITS
Regulatory tracking • Internal information • Minimize risk
is not an option gathering and posting • Process efficiency
• Faster time-to-
• Consultants market
Complex • Reduce cost
• High volume • Regulatory
• High rate of Management
change Solutions
• Language barriers
Copyright © 2011 IHS Inc. All Rights Reserved. 48

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Everyone who completes the survey at the
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a drawing to win an iPad2.*
*Offer valid to all survey respondents until May 31st, 2011.
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Copyright © 2011 IHS Inc. All Rights Reserved. 51

52. Questions & Answers
Jim Brown
President
Tech-Clarity
Cindi Hines
Director of Engineering Solutions
IHS

53. For More Information
Send questions and requests for information to:
Webcasts@ihs.com