Customer Led Innovation Visteon Corp., a leading global supplier of automotive climate, interior, electronic and lighting solutions, is exploring and developing new ways to innovate and drive design. By focusing on defining consumer's desired experiences and translating these insights into actionable design inputs, Visteon is re-architecting their design and innovation process. Along with their design research partner Lextant, Visteon will share a case study to illustrate this new experiential way of thinking. Success is not based on what you make—it's based on how you make people feel.

1. Customer Led Innovation
IDSA Mideast District Conference
Tim Yerdon, Jim Couch
31 March 2012
Strictly Private and Confidential

2. Innovation
In a survey of 639 companies, executives cited
failure to meet customer needs as the top driver
of innovation failure.
- Accenture Innovation Survey 2009

3. Lextant
Design Research & User Experience Design

4. Visteon Today
Visteon Overview Product Line Portfolio
Climate
 Leading provider of value-added  Compressors
components/systems to a broad  Engine Induction
 Fluid Transport
range of global vehicle  HVAC Systems
manufacturers  Powertrain Cooling
 Employees: Electronics
 Audio/Infotainment
– 26,000 consolidated  Center Stack Electronics
 Driver Information
– 41,000 including joint ventures  Feature Control Modules
 Approximately 120 facilities in Interiors
27 countries*  Cockpit Modules
 Consoles
 Door Trim
 2011 revenue:  Instrument Panels
– $8.05 billion consolidated
Lighting
– $12.0 billion including joint  Front and rear lighting
ventures  Projectors
 AFS Modules
 LED arrays
* Includes joint ventures.

5. Intent to Sell Interiors Business to Yanfeng Visteon
 On Nov. 30, 2011, Visteon and Huayu
Automotive Systems Co., Lid. (HASCO)
announced non-binding memorandum of
understanding to sell majority of Visteon’s
consolidated interiors business to existing
joint venture, Yanfeng Visteon
 Transaction would broaden strategic
partnership between Visteon and HASCO
 Visteon would retain interest in one of
world’s largest automotive interiors
companies
 Positive reaction from customers and
investors as to potential benefits
Aiming to Have Definitive Agreements in Early 2012

6. Sale of Lighting Business to Varroc Group
 On March 12, Visteon announced definitive agreement to sell global lighting
business to Varroc Group of India
 Cash transaction for $92 million
 Sale encompasses Visteon’s global lighting business, including:
– Operations in the Czech Republic, Mexico and India, totaling five
manufacturing plants
– Approximately 4,200 employees, including technical and support personnel at
various locations
– Intention to include Visteon’s equity interest in Visteon TYC Corporation, a joint
venture based in China
 Agreement subject to regulatory reviews and other conditions
Sale Expected to be Completed in the Third Quarter of 2012
Page 6

7. Innovation & Design at Visteon
Vision
Be recognized by our customers as the
innovative partner-of-choice
for translating their vision into products and services
Visteon is
committed to
delivering
innovative
technologies that
support the goals
of automakers and
enhance the
driving experience.

8. Innovation
3 Innovation Strategies:
Need Seekers Market Readers Technology Drivers
Actively and directly Closely monitors Maintains a sustained
engages with current customers and investment in R&D to
and potential competition, but support the creation of
customers to maintain cautious new, radical,
understand approach. Focus on technological
unarticulated needs. creating value through breakthroughs.
They excel at incremental
superior end-user innovations.
understanding. “Fast followers.”
Agilent Technologies Visteon Pharmaceutical Industry
“Need Seekers are more likely to financially
outperform competitive companies following
one of the other two strategies…
30%
by nearly ”

9. Design Research versus Market Research
Marketing Research Design Research
Lens to the market Lens to the user
Buying process Experiences and Aspirations
Bringing a product / Innovating products
service to market and services

10. The Project
Understand and Define
Consumers’ Ideal In-Car
Electronics Experience
• Focus on the experience
• Identify what really matters – understand the “whys”
• Ground the insights in solid consumer data
• Model the insights to tell a story, inform & inspire
• Align the organization

11. The Process
Qualitative, Participatory
Research using
Multi-Sensory Stimuli
• PRIME™
• Preliminary pattern analysis
• Mini-focus groups
• Rigorous data analysis
• Synthesis workshop
• Insight Translation™

12. Process
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13. PRIME™
Online questionnaire & collaging exercise
“I take all of these words and images
into consideration when I buy gadgets,
and this carries over into my car
experience…or at least what I want in
the experience”

14. Mini-Focus Groups
Group and individual exercises
1 Review PRIME™ 2 Identify Themes 3 Build Solution Canvas
4 Understand the solution
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15. Analysis
How Ideal In-Car Electronics Look, Act, & Feel
Page 15

16. Synthesis Workshop
3-day workshop to immerse the team (cross-functional) in the
data, identify data buckets, begin modeling the insights and
start building alignment
Page 16

17. My Ideal Car Electronics: Product Attribute Model
Page 17

18. Benefits of Modeling
 Visually communicates insights
 Descriptive vs. prescriptive
 Helps focus R&D efforts
 Digestible – “a picture’s worth a 1000 words”
 Memorable – makes the insights “sticky”
 Creates alignment
 Post-design metric tool

19. CES
Year Visteon Total Customer %
attendees attendees customers
2011 823 142 17%
2012 385 156 41%
Page 19

20. Model as metric evaluation tool
“Scorecard” to evaluate experience
• MyFord Touch
• 32 participants
• PRIME™
• In-vehicle IDI’s (60min)
Page 20

21. Consumer Experience: Entertainment (Radio) +

22. Consumer Experience: Entertainment (Radio)

23. The Big Ideas…
1 Connect with the customer
~ “Prime” participants
~ Use projective participatory techniques (multi-sensory) to uncover latent desires
2 Distill the experience
~ Rigorous analysis
~ Synthesis workshop
3 Model it
~ Insight translation to bring insights to life
~ Build alignment
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24. www.visteon.com www.lextant.com