Iverson on Innovation - Innovating OTJ

Pepperdine University10-12-11

Coach Eric IversonVP IT Sony Pictures Television

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

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page 3

THE SONY CORPORATION

Consumer Products &

Devices

Networked Products & Services

Sony Music Entertainme

nt

Financial Services

Approximately $7 Billion in Revenues per year 10/12/201

13

Motion Pictures Home Entertainment Television Digital Productions

FLORESTA

HUASO

*Includes wholly and partially owned networks & production companies

SONY PICTURES ENTERTAINMENT

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Corporate

SONY PICTURES ENTERTAINMENT

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 10/12/201

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Industry is going through revolutionary change due to digital media technologies

Theatrical Home Entertainme

nt

Television & VOD

Broadband Mobile

10 Years Ago…

Very few Digital prototype theaters

DVD only – no legal copy

Just beginning to grow

Movie link and Cinema Now – or… illegal

Experiment with games, ringtones, and wallpapers

This Year

In the middle of full digital cinema deployment

Legal Digital Copy delivered with BD.ULTRAVIOLET

Industry grew from $0.3B in 2000 to $1.2B by 2010, an avg. of 14% growth per year and a 10 yr growth of 265%

Dramatic increase in offerings: iTunes, Netflix, Hulu, PSN, Microsoft, Amazon, etc..

Explosion of handheld devices, tablets and plans that enable mobile media

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

Part 1Adventures Innovating in Master Data

Management

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Our journey starts in 2003 while solving another problem: Digital Media

Digital Markting

Distribution LinesTraditional Distribution

Digital Production

Source Sytems

IP Program

CentralizedPrcess

+

Digital Distribution

Fullfilment

Digital Media Initiative and our Dream

You can’t manage Digital Media without great metadata and rights

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As it turns out, creating this information for “movie products” happens to be a fairly complicated problem…

IP Title OPW Variations

• Elements are uniquely combined for each business (88) and market (200+)

“Now multiply all of the above information x 140,000 titles in Sony

Pictures’ library…”

• 1500 unique product elements to Distribute Spiderman world-wide

• Hundreds of production & clearance agreements

• >25,000 lines of rights data for Spiderman

Picture &

Sound• 200 attributes make up the move

• Copyrights and title registrations

• 1000’s of marketing materials

Bonus Materia

l

+

Unique Product

s

The Movie

Title Definitio

n

Book / Script /

etc.• Acquire rights

Hollywood’s interesting product family entity

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Coming soon!

So Steve and I set out on our Intellectual Property Management journey

2004

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Terminology: Master Data is:

The golden data record that everyone uses. It enables the rapid and accurate connection of processes… typically through business technology

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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

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1

Innovate with new customers - Merged divergent projects

• 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

2004

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2

Separating the twins

• 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

2005

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3

Enhancements to Support MGM TItles:· MGM rights segment flag· New attribute to identify MGM product at title level

(MGM, SPE, Split)Enhance servlet to display MGM rights segment flag and identify MGM / split rights products at the title level

· Company relationship of 3rd Party ReportingNew alternate identifier types for MGM Ids

· New categories for critical MGM attributes (aspect ratio)

Attributes:· Primary Title· AKA Title· Product Status· Product Level· Product Type· Intended Made for Media· Actual Made for Media· Release Year

· Production Year· Runtime· Broadcast Run Length· First Commit Date· Production End Date· Pilot Flag· MGM - 3rd Party Product*· Walker Number· OPC / OCC· Catalog Number· MGM - ESS Number· MGM - SAP Number· Original Language· Number of Actual Episodes· Number of Planned Episodes· Season Number· Episode Number· Episode Name)· Territory· Media· Format· Rights· Sell-Off Date· Effective Date· Terms· Language· MGM - MGM Rights Indicator· Music Clearance· US Copyright Date· US Copyright Comment· Release Date· Release Territory· Release Language· Release Media· Box Office· Release Status· Type of Release

SAP Residuals

OPUS

Functional Processes:· Product Master· Corporate Rights in & out· Supports downstream sales, distribution, and

servicing systems· Supports financial transactions and systems (SAP)

ESS STARS

Conversionprocessing

usingAscential ETL tool

TIGRES

DTSM

ITSM / ITSMS

PRISM

GEM / Pegasus

Pathfinder

SPIRIT

Interplan

GOLD

ProductReleaseEpisodicRights

Attributes

Television

Home Entertainment

Theatrical

WPF

Title & Rights Creation Sales & Distribution Servicing / Fulfillment Financial Tracking

MGM

Contract & Financial information

Order fulfillment request

C2C

ProductReleaseEpisodicRights

Attributes

ProductReleaseRights

Attributes

ProductReleaseAttributes

ProductReleaseRights

Attributes

ProductReleaseRights

Attributes

ProductReleaseAttributes

Product,Release,FinancialAttributes

FinancialAttributes & Validation Process

FinancialAttributes & Validation Process

FinancialAttributes &

Validation Process

SAP

FinancialAttributes

Revenues,FinancialAttributes

FinancialAttributes

Product,ReleaseAttributes

GPMS

FinancialAttributes & Validation Process

Domestic TV contracts and rights out maintenance

Domestic TV sales and availability tracking

Int'l TV sales, availability and rights out tracking

Int'l TV accounts receivable processing

Int'l Home Entertainment sales, scheduling, packaging and rights out tracking system.

Home entertainment DVD manufacturing

Domestic Home Entertainment scheduling and packaging

International Theatrical sales, scheduling and planning

Domestic Theatrical sales and distribution

MGM Stars

MGM Stars

MGM FCI

Functional Processes:·Corporate sales servicing

and fulfillment·Elements tracking·P.O. generationKey MGM Attributes:·MGM title level indicator:

MGM title, SPE title, Split title

Functional Processes:·Accounts payable

processing·Accounts receivable

processing·Financial reportingKey MGM Attributes:·MGM 3rd party reporting·OPC / OCC base rule and

exceptions

Corporate residuals calculation and payements

Corporate participations and royalties calculation and payments

MGM Title / Rights Master and Financial Solutions

Financial Attributes & Purchase Orders

FinancialAttributes

Dom TV will use MGM's Stars System to view MGM title avails until MGM contracts are in

TIGRES

Int'l TV will use MGM's Stars System

to view MGM title avails until MGM

contracts are in ITSM

WPF will use MGM's FCI system to assist in MGM

element location and tracking processes

Titl

e an

d R

ight

s M

aste

r S

yste

mF

ina

ncia

l M

aste

r S

yste

m

Legend

System, application or database

Automted data flow

Manual data flow or process handoff

Sony Pictures Digital

Bakersman

Sony Pictures Digital sales and distribution

IFDSInternational Theatrical sales and distribution

CAD

CAD is a legacy system with a

realtime interface to select GPMS data

elements: Title, Walker #, Episode Name and Number

Product Reporting

DB

ProductAttributes

ProductReleaseEpisodicRights

Attributes

Product Reporting is database that

consolidates and feeds information to

JD Edwards for international financial

processes

J D Edwards

International accounting and financial reporting system

GPMS Systems Flow for MGM Integration Project – April 2005

Innovation Payoffs – Rapid Acquisitions

What we did• Developed techniques to handle large

data acquisitions and orchestrate the loads through key systems

• Kept technology in the hands of our innovators

• Developed a way to handle music and rebuilt party master

• Created “Awesome” communication• Did a lot of corporate dating

Developed a rapid acquisition capability. As a result of our efforts, we can now ingest large acquisitions in under 30 days

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4

A turn down Digital lane… More devices

More Digital

More Devices

More MetadataMore Master Data

2006

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5

Vision: Seeing the future, setting a course

Finally… our Title MDM strategy…

What we Did• Got good intelligence and

envisioned the future• The strategy process drove

buy-in for us• Gave confidence to take

bold positions• It prepared us to be even

more opportunistic• Our strategy was better

because we had already innovated

Industry Research

Domain Research

Lots of Interviews

2007

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6

Opportunity Knocks: Ventana and the Future of TV Distribution

• 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…

2009

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7

The “Manual Digital” Problem

“As Is” “To Be”

Though digital media held the promise of simplified workflows, much work was still required to move the industry from digital media to digital automation

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The Digital Backbone: Data and technology revolutionizing digital distribution

The Digital BackboneThe Completely Automated Digital Workflow

BONUS: clever ways to gain agreement when you are innovating:

2010+

“We had to rethink data and process in a digital workflow”

Alphas

Our Innovation Journey….

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1

SAP Project

8

Digital Backbon

e

6

3

Separate

Twins

4Integration Payoff

2New

Customers

5

Digital Integration

Strategy

Ventana

7

What we’ve accomplished… for now

1.Connecting approx. 64 systems

2.Managing Over 250K+ titles

3.Creating a 30 day integration capability

4.Providing significant cost savings

5.Supporting Digital Supply Chain automation

Key Innovations led to…

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PART II

WHAT DID WE LEARN?

“On great adventures, the adventurers must get clever”

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In a phrase, what is “Innovation”

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Innovation is:

Typically solved by someone(s) with...• Expertise • Time• Imagination & Vision • Ability to Realize• Perseverance (failure)

….A realized useful solution to a problem. It can be:• A new big idea• Applying an old idea in a new way• Incrementally improving or changing on an old way of doing

things

If you have the expertise, vision and passion you will find the resources to make it happen

• Knowing what innovation is – is easy

• Know how to get innovation - is harder

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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

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So.. Can I still innovate if I am not an innovation superhero? Of course. Build teams that innovate

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Myers Brigs and your innovating team: Quick Review

Extraversion 'E' Introversion 'I'The need to talk things through. The need to think things through.

Keywords: Keywords:outgoing • talkative • sociable shy • reserved • reflective

Intuition 'N' Sensing 'S'Can see the big picture and future possibilities. Trusts the establishment and the tried and true.

Keywords: Keywords:brainstormer • big picture • theory facts • details • data collection

Feeling 'F' Thinking 'T'Considers others before making decisions. Uses the logical choice

Keywords: Keywords:compassionate • personal • warm rational • black and white • tough-minded

Perceiving 'P' Judging 'J'Enjoy surprises and changing plans. Loves routine and to-do lists.

Keywords: Keywords:go with the flow • unscheduled • flexible scheduled • structured • organized

Source of Energy

Receiving Information

Making Decisions

Personal Life

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Create teams that compliment each other and will maximize your innovation capability…

ISTJ ISFJ INFJ INTJInspector Protector Counselor Mastermind

ISTP ISFP INFP INTPCrafter Composer Healer Architect

ESTP ESFP ENFP ENTPPromoter Performer Champion Inventor

ESTJ ESFJ ENFJ ENTJSupervisor Provider Teacher Fieldmarshal

Expertise

Time

Vision

Realization

Perseverance

Note source 10/12/2011

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Adam –vs- Mike

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Your job: Encourage Innovation Behaviors in your Teams

Expertise Time Vision Realize Persevere

• Support a learning culture with the time to do it

• Thoughtfully mentor careers to develop expertise

• Be smart about picking teams

• Manage the overload factor

• Make space in the calendar for yourself & team

• Encourage your team to be where they can innovate

• Make sure there is time for “their space”

• Encourage a curious organization

• Develop good question asking

• Promote a level of freedom

• Make time• Give teams

space to form their own ideas

• Make sure teams have effective management and planning capability

• Develop missing skills

• Pay close attention to the talent of “do-ers” on your teams

• Allow some room for failure

• Encourage your team

• Develop independence

• Develop confidence

• Show them the mountain, but let them figure out how to get there…

“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

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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”

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Enemies of Innovation

Expertise Time Vision Realize Persevere

• Inadequate preparation

• Not enough experience

• No time to learn

• Poorly selected team

• Lack of leadership

• Email & phone calls

• Too many meetings

• Lack of delegation

• Overloaded• No planned

time for error

• The past• Lack of

prioritization• Too much

tactical work• Fear• Wrong people

on the bus• Inexperience• Lack of

curiosity and questions

• Distractions• Lack of focus• Procrastinatio

n• Not having

the right team

• Lack of motivation

• Politics• Disorganizati

on – no plan• Micro-

management /control

• Nay sayers• Doubt• The Past• Politics• Failure• Lack of belief

“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.”

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Now that I have a team, where do I Innovate?

“What” you

make

“How” you

make it

How you sell

it

How you

operate

Careful in box 4

Biggest Value

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What is your innovation focused on?

…. Winning ….or Not Losing

But… is innovation important for your

organization?

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The Dow Jones 30: What is interesting about this list?

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Company Symbol Industry Date Added3M MMM Conglomerate 8/9/1976Alcoa AA Aluminum 6/1/1959American Express AXP Consumer finance 8/30/1982AT&T T Telecommunication 11/1/1999Bank of America BAC Banking 2/19/2008Boeing BA Aerospace and defense 3/12/1987Caterpillar CAT Construction and mining equipment 5/6/1991Chevron Corporation CVX Oil & gas 2/19/2008Cisco Systems CSCO Computer networking 6/8/2009Coca-Cola KO Beverages 3/12/1987DuPont DD Chemical industry 11/20/1935ExxonMobil XOM Oil & gas 10/1/1928General Electric GE Conglomerate 11/7/1907Hewlett-Packard HPQ Technology 3/17/1997The Home Depot HD Home improvement retailer 11/1/1999Intel INTC Semiconductors 11/1/1999IBM IBM Computers and technology 6/29/1979Johnson & Johnson JNJ Pharmaceuticals 3/17/1997JPMorgan Chase JPM Banking 5/6/1991Kraft Foods KFT Food processing 9/22/2008McDonald's MCD Fast food 10/30/1985Merck MRK Pharmaceuticals 6/29/1979Microsoft MSFT Software 11/1/1999Pfizer PFE Pharmaceuticals 4/8/2004Procter & Gamble PG Consumer goods 5/26/1932Travelers TRV Insurance 6/8/2009United Technologies Corporation UTX Conglomerate 3/14/1939Verizon Communications VZ Telecommunication 4/8/2004Wal-Mart WMT Retail 3/17/1997Walt Disney DIS Broadcasting and entertainment 5/6/1991

Innovation is important for almost all organizations. Because organizations that innovate…

57%

80%

93%

One company made it 100 years

Since college

Since I was born

Since Crash in 1929

Company Symbol Industry Date AddedGeneral Electric GE Conglomerate 11/7/1907ExxonMobil XOM Oil & gas 10/1/1928Procter & Gamble PG Consumer goods 5/26/1932DuPont DD Chemical industry 11/20/1935United Technologies Corporation UTX Conglomerate 3/14/1939Alcoa AA Aluminum 6/1/19593M MMM Conglomerate 8/9/1976IBM IBM Computers and technology 6/29/1979Merck MRK Pharmaceuticals 6/29/1979American Express AXP Consumer finance 8/30/1982McDonald's MCD Fast food 10/30/1985Boeing BA Aerospace and defense 3/12/1987Coca-Cola KO Beverages 3/12/1987Caterpillar CAT Construction and mining equipment 5/6/1991JPMorgan Chase JPM Banking 5/6/1991Walt Disney DIS Broadcasting and entertainment 5/6/1991Hewlett-Packard HPQ Technology 3/17/1997Johnson & Johnson JNJ Pharmaceuticals 3/17/1997Wal-Mart WMT Retail 3/17/1997AT&T T Telecommunication 11/1/1999The Home Depot HD Home improvement retailer 11/1/1999Intel INTC Semiconductors 11/1/1999Microsoft MSFT Software 11/1/1999Pfizer PFE Pharmaceuticals 4/8/2004Verizon Communications VZ Telecommunication 4/8/2004Bank of America BAC Banking 2/19/2008Chevron Corporation CVX Oil & gas 2/19/2008Kraft Foods KFT Food processing 9/22/2008Cisco Systems CSCO Computer networking 6/8/2009Travelers TRV Insurance 6/8/2009 10/12/201

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THRIVE 10/12/201

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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.” 10/12/201

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Questions Anyone?

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