Innovation processes in a large enterprise. Wouter Leibbrandt NXP Semiconductors CTO Office
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1 Innovation processes in a large enterprise Wouter Leibbrandt NXP Semiconductors CTO Office
2 Outline Introduction into NXP and the journey of NXP R&D in semiconductors Centralized versus de-centralized Open Innovation Innovation across the value chain Smart-in-car Personalized climate systems Roadmapping Discussion
3 NXP - a global innovator Established in 2006 (formerly a division of Royal Philips) Sales: $5.6 billion in 2014, >60% in Asia Employee base: ~ 28,000 employees in 25 countries Manufacturing: Europe and Asia Global #1 Semiconductor Player in Security and Automotive Connectivity 3
4 NXP: 4 th Private R&D Investor Bron: Technisch Weekblad, April
5 R&D: Key enabler of Secure Connections for a Smarter World In a nutshell Growth by serving many applications Approx $763M/year in R&D ~3,500 engineers at 20 locations ~9,000 issued and pending patents World-class competences in all Analog and Mixed-Signal technology domains Collaborative R&D practice with customers, suppliers, universities and institutes Active in over 80 standardization bodies & consortia Security Industry 4.0 Car-2-X Smart City Wearables Mobile Devices Secure Interfaces Smart Docs Smart Cities Secure Payment Loyalty, reward Smart Supply Chain Everything Everything Everything Smart Connected Secure 5
6 Milestones in our journey to date NASDAQ August 6, 2010 NASDAQ top 100 Dec 23, Spin-off from Philips Portfolio and R&D focusing Divesture of Mobile baseband and Digital Home business High- Performance Mixed Signal Secure Connections for a Smarter World Merger with Freescale M&A flexibility to rationalize portfolio and become industry shaper Focus on segments where NXP has leadership potential, sell/milk others Mobile sold to ST- Ericsson; Home to Trident Build true leadership and outgrow market in the area of NXP s core strengths (RF, AMS, HV, Security) Win in the fastgrowing pockets in the market Internet of Things Restructure R&D Create #7 Semiconductor company by Q Decentralised R&D
7 NXP: Secure Connections for a Smarter World Connected Car Security Portable and Wearable Internet of Things Car entertainment In-vehicle networking Secure car access Secure V2X Comm. Radar Mobile transactions E-Government Smart bank cards User authentication Embedded security Mobile audio High-speed Interfaces Gaming Personal health & fitness Healthcare Smart home and buildings Smart cities - smart grid M2M - Industry 4.0 Intelligent logistics
8 R&D in Semiconductors at three levels Applications Long term trends, selective prototyping customer engagements, de-risking on targeted platforms Across the value chain, with industrial partners. From long term visionary to market-ready concepts Algorithms, Systems on Chip, Components Advanced Media and Modem Processing, Security, Next Generation Systems on Chip, Embedded Software RF, Mixed Signal, Digital Building Blocks Exploitation of new process nodes Core electrical engineering Academic partners IP blocks need to be derisked at start of product developement Process Technology, Modelling and Characterisation Next Generation Process Nodes, Process Options More than Moore devices, Device and Circuit Models Poly HK/MG 6nm Si Fin Advanced nodes (65, 55, 40, 28, 22 nm) restricted to few foundries 8
9 Centralised R&D model NXP Central Research Process Technology Circuit and system design Applications Development Process technologies IC packaging Common IP (ADCs, timers, memory, ) Common architectures Tools and models Technology roadmap Application marketing Fab operation University programs Standardization Intellectual Property In product groups Product development Functional requirement spec IC design Tape-out to internal or external Fab Validation and product release Product marketing and sales Product roadmap Development and maintenance of product specific IP Customer support Product and loss responsibility
10 Decentralised R&D model NXP Central Development Process technologies selected only IC packaging selected only Fab operation IP shop Open Innovation Technology scouting University programs Standardization coordination only Intellectual Property In product groups Long term innovation Development IP blocks Architectures Tools and models Product development Functional requirement spec IC design Tape-out to internal or external Fab Validation and product release Technology and product roadmap Standardization Product marketing and sales Customer support Product and loss responsibility
11 Innovation in decentralized organizations Breakthrough projects in virtual cross-business teams Kilby labs model Texas Instruments Good ideas worked out in a central lab on rotary basis Contract research Knowledge institutes, TNO, IMEC, Fraunhofer, CEA-LETI, Sub-contract, e.g. to suppliers NRE At universities Acquisition Buy or license technology Invest in (start-up) company Buy (start-up) company Open Innovation Pool competences and resources across the value chain
12 Open Innovation Source: Prof. Henry Chesbrough, UC Berkeley
13 Open Innovation Works very well when innovations run through the value chain Two examples: Smart-in-car: Automotive data in the cloud UCER: personalized office climate
14 Car as sensor: bring CAN data to the Cloud
15 Car as a sensor: range of applications Road authorities: benefit from road surface info Potholes, roughness, speedbumps Public: Smart phone apps can display relevant events Fog, heavy rain Road assistance car on rescue lane Harsh braking more accurate traffic jam info Professional Drivers: Cibatax drivers improved driving style and lowered fuel consumption
16 This real time in-car data delivers valuable information Real Time Traffic Info Smart phone navigation apps for road users Dynamic Maximum Speed Driving style & black box info for fleet managers In-Car CAN data Traffic & road condition info for road authorities
17 Car as sensor: bring CAN data to the Cloud Smart-in-car project cars 3 months 1.8 Bln data points Speed real time Braking real time Rain real time
18 Individual Climate System with sensor network UCER Control & Actuation Router Router Coordinator Sensor node Sensor node Sensor node Sensor node Sensor node Sensor node
19 Wireless sensor node 1. Power autonomy through energy harvesting 2. Ease-of-Install with NFC 3. CMOS-based multi-modal sensing gas sensors, humidity sensor temperature sensor pressure sensor LiPo battery (30 mah) V batt monitor CPU + memory NFC Tag RF Tx/Rx NFC Ease-of-Install
20 Roadmapping Product Roadmap Owner: Date: Internet of Things Trends & Needs Roadmap Owner: Marino Strik Date: 23 May Products in Volume Production Product Name Main features Product Name Main features Product Name Main features Product Name Main features. Available Trends/Needs Energy efficient building Body See wearable trends under Mobile Building control Towards 50 Bn connected devices, >50% frugal nodes (<5 uw) Personalized Climate and Comfort Fine grained low cost sensing Product Name Main features Market Segment Product Name Main features Product Name Main features Market Segment Product Name Main features RFS CQS CES DEV Production Development Concept Product Idea Home automation Smart cities City/rural Secure smart homes and buildings Interoperable connectivity, End to end security for connected applications Connected solutions for wide area fine grained sensing and control Infrastructure monitoring, agriculture, air quality, track and trace >>> NX COMPANY CONFIDENTIAL Template Owner M. ten Have 9 NX COMPANY CONFIDENTIAL 28 Template Owner M. ten Have
21 COMPANY CONFIDENTIAL
22 Summary Centralized vs de-centralized trade-off speed vs breakthrough innovation Innovating in decentralized organizations Finding the optimal working mode Open Innovation Along the value chain Roadmapping Trends Solutions Technologies Products
23 Discussion with audience Do you experience a gap between innovation and product development? How do you balance long term innovation versus short term operational excellence? Hoe do you deal with roadmapping Experience with Open innovation?
24 Thank you!
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