1. Creating Value: The Real Business of Manufacturing Thomas M. Nies President and CEO Cincom Systems, Inc.

2. Value Economics Cost, Revenue, Risk Value Creation Different, First, Relevant Value Delivery Market, Enterprise, Supply n. Format of Value Vectors

3. Economic Value

4. First Different Relevant Generate Unique Value

5. Generate Unique Value: Rule 1 -- Be Different

6. Generate Unique Value: Rule 2 -- Be First

7. Generate Unique Value: Rule 3 -- Be Relevant

8. Integration Innovation Simplicity Generate Unique Value 3 Techniques to be Different, First and Relevant

9. Technique 1. Innovation

10. Man Tried Again … and Again

11. Finally, Success Convergence and Integration

12. 35 Years Later … Commercial Success Convergence and Integration of Many Technologies Incredible Complexity

13. Now we jet around the world With Yet More Complex Technologies Integrated to Create the End Product Boeing 777 - Initiated 1990 / Launched 1995 Boeing 787 – Initiated 2002 / Launch 2008

14. 33 Years Later … and Counting With Different, Yet More Complex Technologies Both in Space and On the Ground

16. Radical Innovation Technology Time

19. Technique 2. Simplification

20. The objective of all business is to create value for customers and shareholders, but the biggest barrier most companies now face in delivering value is the complexity of managing their own businesses.

22. Let’s look at how complexity grows

23. Not So Complex No Integration Required

24. A Bit More Complex Not Much Integration Required

25. Getting Out of Control Required integration rapidly increasing

26. How did aerospace manufacturers solve this magnitude of complexity? By Understanding The Law of Complexity

27. The Law of Complexity The Number of Relations is Geometric R = n 2 - n 2 = (4 – 2) = 2 3 = (9 – 3) = 6 4 = (16 – 4) = 12 9 = (81 – 9) = 72 10 = (100 – 9) = 90

28. The Self-Destructive Impact of Complexity on an Organization

29. The Challenge is to Reduce the Complexity Gap

30. Seeking the Ideal State of Perfection

31. Reducing Complexity by Simplifying Methodology Shifting from R = n 2 – n to R = 2N

32. Technique 3. Integration

33. “ The 777 consists of millions of objects of intellectual capital flying in close formation.” -- Boeing

34. Many departments in one company, one goal Many companies, one goal

35. Value Delivery Value Delivery Putting it all Together

36. This is the Cincom Value Story High Value. Low Cost. Rapid ROI. Low Risk