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Different Processes for Different Risk Levels Assess Each Innovation Investment with Standardized Value and Feasibility Criteria 6 5 Enterprise Innovation Performance Enabling Cross-Functional Decision-Making to Define and Manage Innovation Investments Focus of Cross-Functional Innovation Teams Strategy Focus of Cross-Functional Business Leaders Long-Term FocusNear-Term Focus 2 “Assisted” Portfolio Optimization "Top-Down” Resource Planning 8 7 Innovation Strategy Mapping 1 Identify Gaps between the Plan and Portfolio 2 Only Ideate Once You Know What You Know Connect the Front End to Consumer Research and In-Market Test Data 3 4 Execution

Sopheon Proprietary and Confidential Good Portfolio Data Requires Cross-Functional Input 3

Sopheon Proprietary and Confidential For Enterprise Portfolios, Plan Resources Top-Down Top Bottom Pool-Level (ROM: “Rough Order of Magnitude”) Individual- Level Task- Level High-Level Data Strategic Decisions “Choose-A-Size” Resource Models Updated Monthly/Quarterly Moderate Discipline to Maintain Granular Data Tactical Decisions Each Project is Unique Updated Daily/Weekly Very High Discipline to Maintain Recommended Approach for Enterprise Portfolio Management

Sopheon Proprietary and Confidential Resource Data Explodes at Each Lower Level Pool-Level (ROM: “Rough Order of Magnitude”) Individual-Level Task- Level PROJECT X NEEDS: 3 Chemists for June, July and August PROJECT X NEEDS: Joe for June, July and August. Bob for June, July and August. Jane for June, July and August. PROJECT X NEEDS: Joe for Tasks 1,2,3 for June, July and August; Bob for Tasks 4,5,6 for June, July and August; Jane for Tasks 7,8,9 for June, July and August PoolJuneJulyAug Chemists3.0 PoolNameJuneJulyAug ChemistsJoe1.0 Bob1.0 Jane1.0 PoolNameTaskJuneJulyAug ChemistsJoe Bob Jane Data Points 9 Data Points 27 Data Points

Sopheon Proprietary and Confidential Resource Data Explodes at Each Lower Level 18 Month Project x 10 Resource Pools = 180 Data Points 18 Month Project x 10 Resource Pools x 3 People per Pool = 540 Data Points 18 Month Project x 10 Resource Pools x 3 People per Pool x 6 Tasks per Person 3240 Data Points X 100 projects = 18,000 Data Points X 100 projects = 54,000 Data Points X 100 projects = 324,000 Data Points TYPICAL PROJECT TYPICAL PORTFOLIO TYPICAL DATA TO MANAGE x = Pool-Level (ROM: “Rough Order of Magnitude”) Individual- Level Task- Level

Sopheon Proprietary and Confidential i Benefit: Executives can easily monitor ongoing investments, manage risks and ensuring success of high-value projects 7

Sopheon Proprietary and Confidential i Benefit: Reduce the effort to capture and maintain high-quality portfolio data; eliminate double data-entry INTEGRATED PORTFOLIO DATA MANAGEMENT Because Accolade is also used to manage Stage-Gate processes, portfolio & resource data is captured seamlessly. PROJECT MANAGER Assigns tasks, defines schedules, resource plans, budgets, & status reports. 8 RESOURCE Requests Resource requests can be done via the Resource Tab or assigned to others on the team via a deliverable. RESOURCE Requests Resource requests can be done via the Resource Tab or assigned to others on the team via a deliverable.

Sopheon Proprietary and Confidential Benefit: Ease of use to allow quick entry of resource requests PROJECT MANAGER Assigns tasks, defines schedules, resource plans, budgets, & status reports. Project Managers can enter in their resource or budget requests to the Resource Mangers via the Resource Tab on the project page. Plans can include FTEs, budgets, and/or equipment needs. Project Managers can enter in their resource or budget requests to the Resource Mangers via the Resource Tab on the project page. Plans can include FTEs, budgets, and/or equipment needs. 9

Sopheon Proprietary and Confidential Benefit: Reduce the effort to create and manage resource data; enable use of best-practices Accolade suggests optimal size of resource plan (S, M, L, XL) based on project complexity. PROJECT MANAGER Assigns tasks, defines schedules, resource plans, budgets, & status reports. “Save to Accolade” sends all plan data to the database. Project Managers can modify the best- practice plan suggested by the system. Plans can include FTEs, budgets, and/or equipment needs. Project Managers can modify the best- practice plan suggested by the system. Plans can include FTEs, budgets, and/or equipment needs. 10

Sopheon Proprietary and Confidential i Benefit: Reduce the effort to identify optimal portfolio and resource plans 11 R&D FUNCTIONAL MGR Manages the demand plan for projects that require R&D resources QUICKLY MODEL RESOURCE DEMAND Identify a project that requires resources and review key metrics that describe project size, scope, and timing…

Sopheon Proprietary and Confidential i 12 SELECT A DEMAND CURVE Does this require many R&D resources at the beginning (front-loaded), the end (back- loaded), or the middle (normal distribution)? R&D FUNCTIONAL MGR Manages the demand plan for projects that require R&D resources Benefit: Reduce the effort to identify optimal portfolio and resource plans

Sopheon Proprietary and Confidential i 13 ADJUST TEAM SIZE WITH THE MULTIPLIER Automatically adjust the size of the team by increasing or decreasing the multiplier R&D FUNCTIONAL MGR Manages the demand plan for projects that require R&D resources Benefit: Reduce the effort to identify optimal portfolio and resource plans

Sopheon Proprietary and Confidential i 14 THE DEMAND PLAN IS INSTANTLY CREATED Each month reflects the size of the demand curve specified for that phase of the project. R&D FUNCTIONAL MGR Manages the demand plan for projects that require R&D resources Benefit: Reduce the effort to identify optimal portfolio and resource plans

Sopheon Proprietary and Confidential i 15 Pool-specific bottlenecks are also made highly visible. They can be dealt with here or deferred to the next portfolio review. Managing resource demands across multiple projects is now highly efficient. R&D FUNCTIONAL MGR Manages the demand plan for projects that require R&D resources Benefit: Reduce the effort to identify optimal portfolio and resource plans

Sopheon Proprietary and Confidential i 16 BASIC PORTFOLIO VIEW provides simple list of projects with key metrics, with project detail on the right. PORTFOLIO MANAGER Creates Scenarios for Innovation Investment During AOP Process. Problem: High-Value Projects Not Currently Funded Benefit: Review your portfolio data with ease and identify potential portfolio challenges.

Sopheon Proprietary and Confidential i 17 PORTFOLIO MANAGER Creates Scenarios for Innovation Investment During AOP Process. SELECT PORTFOLIO DATA DYNAMICALLY Add or remove metrics via simple selections. It looks like Excel but easier and more powerful. Benefit: Review your portfolio data with ease and identify potential portfolio challenges.

Sopheon Proprietary and Confidential i 18 PORTFOLIO CHARTS provide high-level visualization of key portfolio summary metrics. PORTFOLIO MANAGER Creates Scenarios for Innovation Investment During AOP Process. Benefit: Review your portfolio data with ease and identify potential portfolio challenges. Problem: Gap in Achieving NPV Targets; Over-budget for costs & FTE

Sopheon Proprietary and Confidential i 19 VIEW RESOURCES – FISCAL YEAR Provides clear view of summarized resource data and where waterline is. PORTFOLIO MANAGER Creates Scenarios for Innovation Investment During AOP Process. Problem: Bottlenecks in our resource pool(s) There are not enough resources to fund these projects Benefit: Review your portfolio data with ease and identify potential portfolio challenges.

Sopheon Proprietary and Confidential i 20 MANUALLY ADJUST THE SCENARIO What-if we add these high-value projects into the scenario… PORTFOLIO MANAGER Creates Scenarios for Innovation Investment During AOP Process. Benefit: Easily explore alternative portfolio scenarios. View resource and value implications in real-time.

Sopheon Proprietary and Confidential i 21 PORTFOLIO MANAGER Creates Scenarios for Innovation Investment During AOP Process. NPV IS BETTER BUT…MORE BOTTLENECKS! We can’t keep adding more projects without making other changes. Benefit: Easily explore alternative portfolio scenarios. View resource and value implications in real-time.

Sopheon Proprietary and Confidential i 22 OPTIMIZE THE PORTFOLIO Identify what are your key constraints and which metric(s) you want to maximize. PORTFOLIO MANAGER Creates Scenarios for Innovation Investment During AOP Process. Benefit: Reduce the effort to identify optimal portfolio and resource plans.

Sopheon Proprietary and Confidential i 23 PORTFOLIO MANAGER Creates Scenarios for Innovation Investment During AOP Process. ACCOLADE SUGGESTS OPTIMAL PORTFOLIO By removing these projects we achieve maximum NPV, within capital AND resource constraints. Benefit: Reduce the effort to identify optimal portfolio and resource plans.

Sopheon Proprietary and Confidential i 24 LOOKS GOOD BUT… These two projects are not optional. How can we squeeze them in? PORTFOLIO MANAGER Creates Scenarios for Innovation Investment During AOP Process. Benefit: Reduce the effort to identify optimal portfolio and resource plans.

Sopheon Proprietary and Confidential i 25 VIEW RESOURCES - MONTHLY Provides clear view of summarized resource data and where waterline is. PORTFOLIO MANAGER Creates Scenarios for Innovation Investment During AOP Process. Benefit: Reduce the effort to identify optimal portfolio and resource plans.

Sopheon Proprietary and Confidential i 26 AUTOBALANCE THE PORTFOLIO Add these projects back and ask Accolade for potential starting points for each project. PORTFOLIO MANAGER Creates Scenarios for Innovation Investment During AOP Process. Benefit: Reduce the effort to identify optimal portfolio and resource plans.

Sopheon Proprietary and Confidential i 27 FINAL SUGGESTED PORTFOLIO Accolade suggests moving the projects back by a few months to enable all to work. PORTFOLIO MANAGER Creates Scenarios for Innovation Investment During AOP Process. Benefit: Reduce the effort to identify optimal portfolio and resource plans.

Sopheon Proprietary and Confidential 28 Benefit: Reduce the effort to define and manage portfolio data across multiple projects. ADD NEW PROJECT TO PORTFOLIO New projects are easily added, along with initial descriptive data for classification. QUICKLY MODEL KEY DATA, INCLUDING FINANCIAL ESTIMATES Provide simple assumptions regarding unit cost, price, and volume… QUICKLY MODEL KEY DATA, INCLUDING FINANCIAL ESTIMATES Provide simple assumptions regarding unit cost, price, and volume…and the system automatically calculates estimates of revenue, profit and NPV. PROGRAM MANAGER Manages multiple projects, provides data for portfolio planning

Sopheon Proprietary and Confidential i Benefit: Reduce the effort to identify portfolio challenges and bottlenecks DIRECTOR OF INNOVATION Creates Advanced Scenarios & Views During Budgeting/ Annual Operating Planning Process. 29 Problem: #3 Highest-Value Projects Not Currently Funded Problem #2: Gap in Investment and Value Targets for High- Growth Markets Problem #4: Gap in Achieving Portfolio Value Targets Problem #1: Bottlenecks in our key resource pool

Sopheon Proprietary and Confidential i Fund Your High- Value Projects Benefit: Re-prioritize projects with ease. View the resource implications in real-time. Reprioritize Higher-Value Projects 30 DIRECTOR OF INNOVATION Creates Advanced Scenarios & Views During Budgeting/ Annual Operating Planning Process. Value Gaps are Closed. But… Remaining Challenge: How to Deal with Resource Bottlenecks?

Sopheon Proprietary and Confidential i Remove low-value projects to free up resources… Benefit: Reduce the effort to create alternative investment scenarios DIRECTOR OF INNOVATION Creates Advanced Scenarios & Views During Budgeting/ Annual Operating Planning Process. 31 Getting better…but we still have bottlenecks within some months. Can we shift these projects right or left?

Sopheon Proprietary and Confidential i Let’s Autobalance to determine if these bottlenecks will improve… Benefit: Reduce the effort to identify optimal portfolio and resource plans A shift in resource plans is suggested Two projects can start earlier than anticipated! This portfolio is now feasible. All bottlenecks have been eliminated. DIRECTOR OF INNOVATION Creates Advanced Scenarios & Views During Budgeting/ Annual Operating Planning Process. 32

Sopheon Proprietary and Confidential i Benefit: Identify bottlenecks in your scenarios down to the individual level. DIRECTOR OF INNOVATION Creates Advanced Scenarios & Views During Budgeting/ Annual Operating Planning Process. 33 A handful of individual-level bottlenecks remain to be addressed by functional managers.

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