Hi Tech – MNC, EMCWhere Breakthroughs Happen

Orna Berry, Ph.D.Corporate Vice President and General Manager forIsrael Center of Excellence

May 2013Source: State of Israel

Ministry of Industry, Trade & Labor

Strategic Planning

• Uniqueness & Mission• Identity & Vision• Key Strategies• Core Competencies/Strategic Areas• Focus: Continue, Start & Stop Doing• Key Success Measures• Organizational Vision• Organizational Strategy

Israel Hi-Tech Eco-System

GlobalHi-tech

Companies

Availability ofTechnical

People &Management

Expertise

ExistingTechnology

Infrastructure

Experienced 2nd time entrepreneurs

Computer Science Students and Electrical engineering

Multi National Corp.

Entrepreneurial culture

Incubators

Defense

Corporate R&D

Leading AcademicInstitutions & Research

Corporate Spin-Offs

Incubators

Immigration

Seasoned VC Community

Government Support

Patents Per Capita United States takes first place, Israel is 5th

Percentages of Economic Output Countries Devote to R&D Investment

Israel is in 1st place, followed by Sweden, Finland, Japan, and Switzerland, which make up the top five. The U.S. ranks sixth.

* Martin Prosperity Institute, University of Toronto. Oct 2011

Scientific papers per capita 109 per 10,000 people. In the top 5 worldwide.

Number of scientist per 10,000 135 engineers per 10,000 citizens. In comparison, the United States has 85 per 10,000, 70 in Japan and 60 in Germany.

Ratio of university degrees per head 24% of Israel's workforce holds university degrees. 12% hold advanced degrees. Ranking third in the industrial world, after the United States and Holland

* International Data Corporation (IDC) Israel, Ltd

Israel is in the top 5 Countries of Innovation & Technology

Technology and Innovation are measured according to main metrics – research and development effort, scientific and research talent, and the level of innovation.

Accelerate EMC’s growth and value to its customers, by

leveraging Israel’s unique vanguard culture and “go get it”

spirit for business-driven innovation

focused on key market needs and pioneering technologies

Accelerate EMC’s growth and value to its customers, by leveraging Israel’s unique

vanguard culture and “go get it” spirit

for business-driven innovation, focused on key market needs and pioneering technologies

Business-Driven Innovation from market needs to sellable products

Israel COE Mission: Why do we exist?

Israel COE:Business-driven Innovation “Converting Knowledge to Money”

Success Factors: What have helped us succeed?

Proven contribution to EMC’s top line• M&A: Kashya (Recoverpoint), nLayers (Ionix), B-

Hive (VMware), Cyota (RSA), Illuminator…

• Customer-centric product development

Top talent and university programs• University collaboration: Ben Gurion, Technion,

Technion

• Talent – existing and new talent, strong team work at management , CTO Forum and Israel presence with sales, acticities around innovation

Domain expertise mapped to EMC’s strategic technologies• Big Data and Analytics

• Cloud Management

• Replication• Flash

• Security

Tech start-up mindset• Creative problem solving, resourcefulness

• “Go get it” spirit – speed to execution

• Stringent focus on quality

EMC Israel's key competencies have been born from acquisitions

1991 1996 1997 2006 2007 20122011

EMC starts operation in Israel

EMC Israel’s Sales Operation is formally established

EMC established its R&D center in Kibbutz Nirim

EMC Israel development center is established

EIDC and RSA consolidate to the new Israel COE in Herzeliya

EMC established Beer-Sheva site

In Israel, all but Flash and Green Plum activities started through M&As

Our Domain of Expertise

Big DataFlash High availability

Security Cloud

• Cyber security

• Cloud security

• Mobile security

• Fraud

• Risk Based Security /authentication Management

• Flash in the server (VFcache)

• All flash array (XtremIO)

• Flash vision for files

• Productization of analytics components

• Security Data Sciences

• Data Science activities PoC in various verticals

• Replication everywhere

• Virtual replication

• Cloud edition - infrastructure & service

• From block to file to object

• Cloud Based Authentication

• Cloud Based Replication

• Migration in Hybrid Cloud

Combination of creativity and quality, fast delivery

Internal Innovation Development

Key domain expertise mapped to EMC’s strategic technologies

External Innovation IntegrationVia M&A and Equity InvestmentsProven contribution

to EMC & RSA top line

Leveraging AcademiaTop talent and university programs

Israel COE Strategy:How we will accomplish our mission?

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Key Strategies

Key Success Measures:How will we know we have succeeded?

Results Measures

•Return on Innovation (ROI²)•Freshness Index: Revenue from products launched in the past 3 years/total annual revenue•Over-exceed BUs targets•Areas of expertise – corp. leadership

Process Measures

•Number and type of ideas in the pipeline•budget dedicated to innovation•# of ideas submitted in the past x months•# of patent submissions•% of executives time spent on innovation

Organizational Vision (developed by 2nd tier COE managers)

COE is full of positive energy, aimed at excellence, business-driven innovation and constructive competition.

Teams combine talents who are innovative, willing to take calculated risks and comfortable working in ambiguity and experimentation, together with talents who are pragmatic and devoted to execution and quality delivery.

People work in a flexible team structure, allowing them to move from one team to another when required and interested.

Many forums and networks foster cross-pollination of ideas. Rewards & recognition plans are also team-based to encourage cooperation and collaboration.

Internal and external networks bring many business-driven and innovative ideas. We use the wisdom of these networks to select the best ideas. Once an idea makes it into the pipeline, we have fast decision-making processes to ensure fast development and delivery.

We celebrate successes and turn our failures into learning experiences. We invest in developing people knowledge and skills at all levels, with a particular focus on innovation

competencies and tools. Universities are seeking our cooperation and joint projects are monetized. People at the COE are happy, interested in what they do and having fun doing it. They bring their

friends to work with them and we have become an employer of choice in Israel. We have a strong reputation within EMC for our speedy response to important business needs and

gaps, thereby accelerating EMC’s revenues and profitability.

EnablersFuture Model

New positions: CTO, PMO, BAIntegrated G&A functions & BS

Budget

Role ModelingAccountability & Authority

Innovation Budget

Exposure & EngagementProcess, Metrics, MechanismsAuthority, Ownership, Budget

Culture strategy and championsEmployment branding strategy

Networking

Commitment to goals & metricsInformation Availability

Rewards budget

Structure allows for business-driven innovation together with quality delivery

& efficient operations

Hire and develop talent, ABD Innovation into the leadership agenda, remove barriers to innovation,

focus on quality delivery

Understand Business Needs/Gaps, leverage IL innovation to EMC $ scale, increase speed, develop

metrics & a review mechanism

ABD Innovation and quality delivery mindset ,inclusive sense of belongingness ,

branding and community relations

Effectiveness & Innovation measuresMechanism for review and closing gaps

Aligning rewards with performance

Israel COE Organizational Vision:How do we organize & manage ourselves for innovation

Organizational Structure

Leadership Mandate

Key Processes

Mindset & Skills

Incentives & Metrics

The Role of the COE Management Team(developed by the COE management team on August 31st, 2011 with Dr. Orit Menkes)

Set, communicate & evangelize strategy

Manage execution; Enable consistent & productive performance

Develop eco-system of internal and external productive relationships

Promote local product & employment brand of EMC/RSA

Create “one team” spirit to drive innovation

Strategize & Evangelize

Develop Eco-System

Implement Efficiently

PromoteBrand

Unite & Inspire