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Value of IT Strategy 
in 
Hi - Tech Industry 
25 Sept 2014 
IASA India Chapter 
Webinar by Vinu Jade & Anil Prasad
 
Strategic Imperatives – Value through Strategic Planning 
 
Business Value Capability areas 
 
Business Model 
 
Domain Model 
 
Process Model 
 
Adoption to Operating Model 
 
Design IT Strategy for meeting the Capabilities, Models & Imperatives 
 
Application Portfolio Management, Risk and Governance using EA – COBIT, ITIL Framework 
Steps for a Value Driven Enterprise Architecture
Products – Semicon fab equipment, servers, test & measurement, etc. 
Forecast-driven suppliers feed in- house/EMS CTO final build & assy 
Products sold direct to businesses 
Products – Processors, DRAM, embedded controllers, etc. High cost of fabs pushing industry towards fabless model Products sold on volume contract 
Services – Outsourced design, test, manufacturing/assembly & logistics 
B2B supply chain collaboration and event synchronization 
Products shipped to OEM partners or drop-shipped to end customer 
Products – PCs, cell phones, PDAs, stereo equipment, etc. 
Multi-channel demand feeds dominant outsourced mfg model 
Products sold via retailers & online 
High –Tech 
Industry Segments 
Complex Equipment 
Semiconductor 
Contract Manufacturing 
Consumer Electronics 
Segments in High Technology Industry
Case Study : The Complex Equipment Value Chain Process Model Areas 
OEMs 
Component Mfg 
Sub Assy Mfg 
Contract Mfg (EMS) 
Silicon Source 
Semiconductor 
Fabrication 
Direct Sales & Service 
Tiered Supply Base 
OEMs, Sales & Distribution 
Customer
Business and Its Strategy – IASA Cutting Edge Paradigm Architecting to meet Demand with Effective Supply
Business and Its Strategy – IASA Cutting Edge Paradigm Architecting to meet Demand with Effective Supply 
Enterprise Architecture 
& Strategy Focus 
Enables Cutting Edge
Complex Equipment Industry Drivers The Value – Strategic Imperatives 
Design Complexity 
• 
How can I reduce design cycle time, and development of customer-specific products? 
• 
How can existing designs be leveraged to reduce design complexity? 
Supply Variability 
• 
What can be done when component lead times exceed finished product lead times? 
• 
How can I fully leverage a global manufacturing and supply base? 
Configuration Management 
• 
How can I better manage configuration changes that occur once manufacturing has begun? 
• 
Is there a better way to increase the accuracy of configured orders? 
Service Delivery 
• 
How can I transform my service operations to a profitable business? 
• 
How can I ensure high quality services performed by 3rd parties? 
Tiered Supply Base 
OEMs, Sales & Distribution
Business and IT(s) Strategy – How to use Strategic Imperatives 
 
Must Have – An Approach and Methodology for Business Strategy Modeling, helping in Agile Business and Agile IT. – Value thru Strategic Planning? 
 
Improve the Supply & Demand Alignment (SAD) with improved Product Utilization, Leverage Levels (PULL) in market and meet Agile Customer Experience (ACE) – Qualitative Domain modeling? 
 
Technology Strategy ( IT inclusive and NOT conclusive!) to enable the consumer meet the product, with Governance and Process Model (GAP). - Logical Process Modeling? 
 
Operational Strategy for Support, Sustain and Succeed (ICE) with agile Technology enablement? -Adopt Enterprise Architecture?
• 
Simultaneous optimization of supply & build strategies 
• 
Outsourcing with complete visibility across multiple tiers 
• 
Integration of configure-to-order processes and service 
• 
Emergence of customer service as a strategic differentiator 
• 
Lean initiatives to reduce cycle time and waste 
Capabilities - A Need for Change in Business
Capabilities - A Need for Change in Process Extend Lean Initiatives Across the Enterprise 
Sales & Mktg 
Information Technology 
Engineering 
Supply Management 
Service 
Finance 
Sales & Operational Planning 
Production 
Continually Improve Quality, Cost and Cycle Time 
• 
Poor Quality & Excess WIP 
• 
High Material & Supply Costs 
• 
Lengthy ECO Approval Process 
• 
Error Prone Order Processing 
• 
Incorrect Resource Dispatching 
• 
Conflicting Demand Signals 
• 
Duplicate & Erroneous Data 
• 
Isolated Departmental Systems 
Common Areas of Waste
Alignment to business is critical aspect of “envision” - ‘Business-IT Alignment’ - It has multiple perspectives - 11 
- 
• 
There are 4 dimensional perspectives for assessing Business-IT Alignment 
– 
Business Strategy as a driver 
• 
Strategy Execution (1 – 2 – 4) 
• 
IT Transformation (1 – 3 – 4) 
– 
IT Strategy as an Enabler 
• 
Competitive Potential (3 – 1 – 2) 
• 
Service Level (3 – 4 – 2) 
• 
Each of the above perspective requires different role play of management team 
• 
All perspectives are important to consider while defining IT Strategy and managing it.
Derived IT Strategy 
 
Establish and Sustain Profitable Innovation 
 
Enable Lean, Agile Supply Networks 
 
Manage and Grow a Profitable Service Business 
 
Command and Control Outsourced Operations
1. Multi-Tier Supply Chain Planning via Process Modeling 
Value Through Strategic Planning : Synchronize Plans To Reduce Lead Times 
 
Extend Visibility to Multiple Tiers 
 
Communicate requirements to all suppliers 
 
Replenish and maintain inventories at customer sites on a consignment basis 
 
React Faster to Supplier’s Constraints 
 
Get visibility to supplier capacity 
 
Reallocate key components 
 
Make alternate sourcing decisions 
 
Reduce Obsolescence 
 
Understand impact of BOM changes to your CM or Supplier 
 
Reduce Non-value Added Costs and Exception Overload 
 
User-configurable exceptions 
 
Automated exception handling via workflow 
Run plan 
Demand 
‘equipment’ 
Supply 
forecast 
Consensus forecast 
Run plan 
Forecast 
‘CPUs’ 
Supply commit 
‘controller’ 
Supply commit ‘CPUs’ 
Forecast 
‘controller’ 
VMI Hub 
VMI Hub 
Customer Consigned Inv Hub 
Visibility 
Semicon Supplier 
Customer 
EMS 
You
1. Multi-Tier Supply Chain Planning Domain and Process Model Integration Risk Pooling via Inv. Optimization & Postponement 
• 
Reduce inventory without sacrificing customer service 
• 
Use analysis tools to determine: 
− 
Where to optimally hold inventory (stage & location) 
− 
What quantities to hold 
− 
What safety stock to keep 
• 
Evaluate KPIs to assess service levels, postponement strategies, revenues, costs, etc. 
Prod A 
Prod B 
Assy 1 
Assy 2 
Sub Assy 
Finished Product 
Major Optional Assemblies 
Sub- Assembly 
C 1 
C 2 
Qty=100 
Qty=100 
Qty=125 
Components 
Risk is “pooled” because a lower quantity of a common sub-assy is required to meet a given service level 
Qualitative Domain Modeling : Use Planned Inventory Points that Enable Flexibility
Support Lean Manufacturing Practices to Reduce Cycle Time and Waste 
Sequenced Demand 
Customers 
Suppliers 
Production Line 
Sequenced POs 
Inventory 
Bin 1 
Bin 2 
Operation 10 
Feeder Plant 
Feeder Line 
Synchronized Production 
Bin 1 
Bin 2 
Operation 20 
Bin 1 
Bin 2 
Operation 30 
Bin 1 
Bin 2 
Operation 40 
Kanban 
Replenishment 
Build a Mix of Models and Configurations on the Same Line 
Logical Process Modeling 
2. Flow Mfg for Cost Effective Production
2. Manufacturing & Logistics Integration Efficiently Move Products from Assembly to Customers - Logical Process Modeling 
Warehouse Management Integration 
• 
Cross-dock and direct ship to / from manufacturing 
• 
Comply with labeling requirements 
• 
Create & track LPNs and lot / serial numbers 
• 
Enable simple kitting to full bill of materials or work order jobs 
• 
Support seamless configure-to-order (CTO) flow 
Sales Orders 
Mfg Operations 
WMS Solution 
Transportation Management Integration 
• 
Promise orders and plan transportation based on material availability 
• 
Incorporate true transit times and transportation costs into supply plan 
• 
Re-plan transportation if manufacturing delays require expediting 
Transportation Plan 
Mfg Operations
2. Automatically Verify Entitlements 
• 
Define service coverage and determine entitlements 
• 
Sell different types of services on a single contract 
- 
Warranties, extended warranties 
- 
Usage-based or subscription-based 
• 
Bill accurately based on actuals or estimates 
- 
Time-based per regular service fees 
- 
Usage-based per volume / incidents 
• 
System routes customer based on existing info (e.g., gold-level customer) 
• 
Analyze renewals for recurring revenue opportunities 
• 
Coverage Times 
• 
Response Time Commitments 
• 
Discounts 
• 
Resource Preferences 
• 
Time Zone & Breaks 
Notifications 
• 
Expirations 
• 
Renewals 
Service Contracts Repository 
Instantaneous 
Verification 
Service Rep 
Customers 
Accelerate Response via Seamless Contract Integration – Value Through Strategic Planning
3. Know Installed Base Configurations Data Modeling to meet the Process 
 
Record Mfg, Quality and Maintenance Specifications 
 
Track the Status and History of All Changes 
 
Manage Configurations / “As Maintained” BOM 
 
Record Operational Metrics 
 
Review Resolution for Similar Products With Similar Issues 
 
Track Depreciation and Accounting Information 
Common Product Repository 
Design Specs 
BOM / Configuration 
Quality Data 
Usage / Status 
Maintenance & Service History 
Warehouse / Packaging 
Sales / Shipping 
Ownership / Installation 
Capture Information From Inception to Retirement – Qualitative Domain Modeling
3. Field Service Resource Planning 
Increase Productivity and Service Quality – Logical Process Modeling 
Issues 
• 
General Inquiries 
• 
Call Backs 
• 
Inspections 
• 
Component Returns 
• 
Replacements 
• 
Field Repair & Maintenance 
Optimize Workloads & Schedules 
• 
Priorities 
• 
Costs 
• 
Travel Time / Distance 
• 
Locations / Road-Level Routing 
Optimizing Engine 
Scheduling Criteria 
Resource Workload 
Spares Inventory 
Products 
Resources / Skills 
Territories 
Contracts / Customer Value
3. Field Service Deployment 
Spare Parts 
Access Options: 
• 
Wireless connected 
• 
Disconnected w/ periodic synchronization 
• 
View and update schedule 
• 
Access service levels 
• 
Update product / issue data real-time 
• 
Order parts remotely 
• 
Report time, material and expenses incurred 
Mobile Capabilities 
Optimize 
Schedule 
Create Field Work Order 
Identify Resolution Needs 
Resolve On-Site 
Dispatch Field Techs 
Debrief 
Invoice Customer 
Reduce Repair Time & Cost, Leverage Mobile Capabilities
4. Manage Product Returns 
Support Complete Logistics & Repair Processing Needs in the Model 
Receive and Inspect 
Estimate and Approve 
Plan and Schedule 
Store, Ship 
Debrief and Bill 
Billing 
Mfg & Inventory 
Shipping / 
Receiving 
Human Resources 
Contracts 
Exchanges 
In-House Repair 
Repair, Refurbish, Reclaim 
Identify Resolution Needs 
Send Loaner or Exchange 
Direct Product Return 
Identify Resolution Needs 
Generate RMA 
 
Monitor Return of Damaged and Serviceable Products 
– 
Perform diagnostics and job estimates 
– 
Execute shipment back to customer and invoice for services rendered 
 
Track Repair Status and Actual Costs 
 
Automatically Update Product Configuration and Repair History
5. Installed Base Preventive Maintenance 
Improve Spare Parts Planning 
Create 
PM Programs 
Optimize Schedule 
• 
Define programs, including default schedule, required resources, and covered items 
• 
Link programs to Contracts to initiate coverage 
• 
Auto-generate field work orders 
• 
Auto-generate service requests and tasks based on plans 
• 
Assign resources, including spare parts and equipment 
• 
Automate stocking rules 
• 
Manage excess inventories 
• 
Utilize automatic replenishment rules based on lead times 
• 
Debrief time, labor & materials 
• 
Invoice customer 
• 
Feedback results to plan to adjust timing of next PM activity 
Debrief & Invoice 
Dispatch Technicians & Perform PM 
• 
View customer and PM work info remotely 
• 
Execute PM against established procedures 
Support Planned Maintenance & Reduce Breakdowns in the Logical Process Model
Customers, 
Suppliers, 
Products, … 
Project & Contract Mgmt 
HR & Finance 
Planning & Purchasing 
3rd Party & Legacy Apps 
Manufacturing 
Order Mgmt & Warehousing 
Product Development 
Service 
Asset Maintenance 
Sales & Marketing 
Foundation: Common Data Model 
 
Single definition of customers, suppliers, products, etc. 
 
Immediate access to accurate, complete global information 
 
Consolidate data from multiple systems 
 
Scale to meet growth demands 
A Single Source of Truth – Using Qualitative Domain Model
Deliver Daily Business Intelligence 
– 
Objective: Set institutional targets 
– 
Fact: Provide performance-based metrics 
– 
Exception: Continuously evaluate performance 
Manage By… 
What are the project schedule and budget impacts of design change? 
How can I best adjust to planning exceptions? 
How should I allocate production resources to meet variable demand? 
How are supplier deliveries impacting my on-time delivery capability? 
How is my backlog of open service requests changing? 
Real-Time Access to Complete Business Information
Corporate Governance: Use EA, GRC and APM Tools for Visibility, Control, Efficiency 
Automate Processes and Extend to Customers & Suppliers 
Your Company 
Customers & Suppliers 
• 
Identify issues early 
• 
Enable real-time information access & performance mgmt 
• 
Consolidate global financials 
• 
Unify corporate reporting 
• 
Consolidate and reconcile information rapidly 
• 
Automate business processes and broaden use of self-service 
• 
Simplify IT infrastructure 
• 
Leverage best practices from different groups / regions 
Visibility 
Efficiency 
Provide Single Source of the Truth 
Centrally Manage Policies and Procedures 
• 
Integrate and centralize business operations 
• 
Document processes and support compliance 
• 
View, test, and certify internal controls 
• 
Manage corporate communications 
Control 
Orders 
Invoices 
Payments 
Requisitions
IT Cost and Business Value Realignment – Via APM 
Innovation at System Level 
Define the Differentiating Factors 
Codify Systems of Record
PartnerNetworkKeyActivitiesKeyResourcesCostStructureOfferClientRelationshipsDistributionChannelsClientSegmentsRevenueFlows 
A Business Model Canvas 
Value Through Strategic Planning 
 
Appreciate Business Process and Domain Modeling as a foundation for Architecting 
 
Perceive How Business and Technology Strategy Integrate to give directions to formulate next generation Architecture
 
Business Model → WHAT 
 
Operating Model → HOW Constitutes the business architecture and consists of the following models: 
 
Process model 
 
Decision model 
 
Structure model 
 
Performance model 
 
Governance model 
 
Each business model type has a corresponding operating model type 
Manu- facturer 
Integrated Collaborative Environment Business Model to Operating Model Value Through Strategic Planning
There is evidence of a strong link between organisational performance and architecture maturity Use Enterprise Architecture Methodology 29 
MIT research shows a relationship between high performing companies and a mature Enterprise Architecture practice 
Architecture Maturity 
Discussion 
• 
Research has shown that as companies become more high performing as their architecture matures towards Business Modularity 
• 
Global EA maturity study showed that over 60% of surveyed organizations with mature EA realized value through decreased cost, minimized risk, decreased complexity and increased agility 
Key Characteristics 
Local and functional optimisation 
IT efficiency 
Operational efficiency 
High Performance Company 
IT Investment practices 
Invest heavily into local applications addressing local business needs 
Invest into shared infrastructure services 
Selectively invest into shared data and standardised business processes 
Focus on reusable application and process components for a modular operating model
Enterprise Architecture helps in aligning IT with business strategy than a detailed solution design 30 
Architecture operates across the entire organisation (i.e. multiple lines of business) and is aligned to the corporate strategy and outcomes 
Description 
Architecture relevant to specific business unit(s) or operating models within an organisation 
Also referred to as segment architecture and is aligned to business strategy & outcomes 
Architecture supports detailed design and technology implementation relevant to support specific projects or capability outcomes 
Architecture Capability Continuum 
High 
Example Principles 
Enterprise Architecture Principles include “Customer 1st” or “Build in Agility” 
Domain Architecture Principles include “Universal role based Front End” or “Single customer repository” 
Solution Architecture Principles include “Customise common sales & service platform locally” or “Introduce risk based pricing tool” 
Less Detailed 
Less Strategic 
More Strategic 
Enterprise Architecture 
Domain 
Architecture 
Solution Architecture 
EA Focus 
More Detailed 
Decision Level 
Typical decisions include definition and prioritisation of capabilities and applications to meet end state requirements 
Typical decisions include clarifying business processes to be undertaken and the resultant requirements 
Typical decisions include types of products, information flows and overall timing of solution
EA generates eight outputs including strategic considerations, design principles and architectural views 31 
Output 
Description 
Strategic Considerations 
Outlines and details a consistent view of the strategic considerations from each business unit within the organisation 
Design Principles 
Provides guidance in decision making and acceptable trade-offs when defining the Target State Architecture 
Standards 
Formulates and applies enterprise-wide IT standards and processes 
Current Business Model 
Baselines the client business model and IT infrastructure to identify and prioritise opportunities for improvement 
Architectural Views 
Identifies the levels, layers, and linkages that identify and help enable capabilities within the business and describe how IT supports client business and performance objectives (the views can be current or future state) 
Scenarios 
Depicts a potential future state customer situation to illustrate the capabilities required and help identify the current limitations that hinder it 
Blueprint 
Provides a clear link to the development of future IT systems, investment planning and portfolio management 
Roadmap 
Describes the implementation plan to achieve the target state architecture 
Governance 
Identifies design guidelines and patterns to ensure IT operates in the most efficient manner to achieve the future state architecture 
Enterprise Architecture Outputs
Thank You 
Learning from Case Study 5 Steps to Success in Adopting EA 
 
Set Business Value through Strategic Planning, Focus on Strategic Imperatives, Define Capability Continuum 
 
Adopt IT Strategy to meet the Capability Continuum – Both Business Model and Operating Model Canvas 
 
Define Qualitative Domain modeling, Define Logical Process Modeling 
 
Select Application, Information delivery to within the above Domain and Process Boundaries 
 
Adopt Enterprise Architecture for IT Application Portfolio, Governance and Risk to Define EA Roadmap for meeting the Set Business Value

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Case study value of it strategy in hi tech industry

  • 1. Value of IT Strategy in Hi - Tech Industry 25 Sept 2014 IASA India Chapter Webinar by Vinu Jade & Anil Prasad
  • 2.  Strategic Imperatives – Value through Strategic Planning  Business Value Capability areas  Business Model  Domain Model  Process Model  Adoption to Operating Model  Design IT Strategy for meeting the Capabilities, Models & Imperatives  Application Portfolio Management, Risk and Governance using EA – COBIT, ITIL Framework Steps for a Value Driven Enterprise Architecture
  • 3. Products – Semicon fab equipment, servers, test & measurement, etc. Forecast-driven suppliers feed in- house/EMS CTO final build & assy Products sold direct to businesses Products – Processors, DRAM, embedded controllers, etc. High cost of fabs pushing industry towards fabless model Products sold on volume contract Services – Outsourced design, test, manufacturing/assembly & logistics B2B supply chain collaboration and event synchronization Products shipped to OEM partners or drop-shipped to end customer Products – PCs, cell phones, PDAs, stereo equipment, etc. Multi-channel demand feeds dominant outsourced mfg model Products sold via retailers & online High –Tech Industry Segments Complex Equipment Semiconductor Contract Manufacturing Consumer Electronics Segments in High Technology Industry
  • 4. Case Study : The Complex Equipment Value Chain Process Model Areas OEMs Component Mfg Sub Assy Mfg Contract Mfg (EMS) Silicon Source Semiconductor Fabrication Direct Sales & Service Tiered Supply Base OEMs, Sales & Distribution Customer
  • 5. Business and Its Strategy – IASA Cutting Edge Paradigm Architecting to meet Demand with Effective Supply
  • 6. Business and Its Strategy – IASA Cutting Edge Paradigm Architecting to meet Demand with Effective Supply Enterprise Architecture & Strategy Focus Enables Cutting Edge
  • 7. Complex Equipment Industry Drivers The Value – Strategic Imperatives Design Complexity • How can I reduce design cycle time, and development of customer-specific products? • How can existing designs be leveraged to reduce design complexity? Supply Variability • What can be done when component lead times exceed finished product lead times? • How can I fully leverage a global manufacturing and supply base? Configuration Management • How can I better manage configuration changes that occur once manufacturing has begun? • Is there a better way to increase the accuracy of configured orders? Service Delivery • How can I transform my service operations to a profitable business? • How can I ensure high quality services performed by 3rd parties? Tiered Supply Base OEMs, Sales & Distribution
  • 8. Business and IT(s) Strategy – How to use Strategic Imperatives  Must Have – An Approach and Methodology for Business Strategy Modeling, helping in Agile Business and Agile IT. – Value thru Strategic Planning?  Improve the Supply & Demand Alignment (SAD) with improved Product Utilization, Leverage Levels (PULL) in market and meet Agile Customer Experience (ACE) – Qualitative Domain modeling?  Technology Strategy ( IT inclusive and NOT conclusive!) to enable the consumer meet the product, with Governance and Process Model (GAP). - Logical Process Modeling?  Operational Strategy for Support, Sustain and Succeed (ICE) with agile Technology enablement? -Adopt Enterprise Architecture?
  • 9. • Simultaneous optimization of supply & build strategies • Outsourcing with complete visibility across multiple tiers • Integration of configure-to-order processes and service • Emergence of customer service as a strategic differentiator • Lean initiatives to reduce cycle time and waste Capabilities - A Need for Change in Business
  • 10. Capabilities - A Need for Change in Process Extend Lean Initiatives Across the Enterprise Sales & Mktg Information Technology Engineering Supply Management Service Finance Sales & Operational Planning Production Continually Improve Quality, Cost and Cycle Time • Poor Quality & Excess WIP • High Material & Supply Costs • Lengthy ECO Approval Process • Error Prone Order Processing • Incorrect Resource Dispatching • Conflicting Demand Signals • Duplicate & Erroneous Data • Isolated Departmental Systems Common Areas of Waste
  • 11. Alignment to business is critical aspect of “envision” - ‘Business-IT Alignment’ - It has multiple perspectives - 11 - • There are 4 dimensional perspectives for assessing Business-IT Alignment – Business Strategy as a driver • Strategy Execution (1 – 2 – 4) • IT Transformation (1 – 3 – 4) – IT Strategy as an Enabler • Competitive Potential (3 – 1 – 2) • Service Level (3 – 4 – 2) • Each of the above perspective requires different role play of management team • All perspectives are important to consider while defining IT Strategy and managing it.
  • 12. Derived IT Strategy  Establish and Sustain Profitable Innovation  Enable Lean, Agile Supply Networks  Manage and Grow a Profitable Service Business  Command and Control Outsourced Operations
  • 13. 1. Multi-Tier Supply Chain Planning via Process Modeling Value Through Strategic Planning : Synchronize Plans To Reduce Lead Times  Extend Visibility to Multiple Tiers  Communicate requirements to all suppliers  Replenish and maintain inventories at customer sites on a consignment basis  React Faster to Supplier’s Constraints  Get visibility to supplier capacity  Reallocate key components  Make alternate sourcing decisions  Reduce Obsolescence  Understand impact of BOM changes to your CM or Supplier  Reduce Non-value Added Costs and Exception Overload  User-configurable exceptions  Automated exception handling via workflow Run plan Demand ‘equipment’ Supply forecast Consensus forecast Run plan Forecast ‘CPUs’ Supply commit ‘controller’ Supply commit ‘CPUs’ Forecast ‘controller’ VMI Hub VMI Hub Customer Consigned Inv Hub Visibility Semicon Supplier Customer EMS You
  • 14. 1. Multi-Tier Supply Chain Planning Domain and Process Model Integration Risk Pooling via Inv. Optimization & Postponement • Reduce inventory without sacrificing customer service • Use analysis tools to determine: − Where to optimally hold inventory (stage & location) − What quantities to hold − What safety stock to keep • Evaluate KPIs to assess service levels, postponement strategies, revenues, costs, etc. Prod A Prod B Assy 1 Assy 2 Sub Assy Finished Product Major Optional Assemblies Sub- Assembly C 1 C 2 Qty=100 Qty=100 Qty=125 Components Risk is “pooled” because a lower quantity of a common sub-assy is required to meet a given service level Qualitative Domain Modeling : Use Planned Inventory Points that Enable Flexibility
  • 15. Support Lean Manufacturing Practices to Reduce Cycle Time and Waste Sequenced Demand Customers Suppliers Production Line Sequenced POs Inventory Bin 1 Bin 2 Operation 10 Feeder Plant Feeder Line Synchronized Production Bin 1 Bin 2 Operation 20 Bin 1 Bin 2 Operation 30 Bin 1 Bin 2 Operation 40 Kanban Replenishment Build a Mix of Models and Configurations on the Same Line Logical Process Modeling 2. Flow Mfg for Cost Effective Production
  • 16. 2. Manufacturing & Logistics Integration Efficiently Move Products from Assembly to Customers - Logical Process Modeling Warehouse Management Integration • Cross-dock and direct ship to / from manufacturing • Comply with labeling requirements • Create & track LPNs and lot / serial numbers • Enable simple kitting to full bill of materials or work order jobs • Support seamless configure-to-order (CTO) flow Sales Orders Mfg Operations WMS Solution Transportation Management Integration • Promise orders and plan transportation based on material availability • Incorporate true transit times and transportation costs into supply plan • Re-plan transportation if manufacturing delays require expediting Transportation Plan Mfg Operations
  • 17. 2. Automatically Verify Entitlements • Define service coverage and determine entitlements • Sell different types of services on a single contract - Warranties, extended warranties - Usage-based or subscription-based • Bill accurately based on actuals or estimates - Time-based per regular service fees - Usage-based per volume / incidents • System routes customer based on existing info (e.g., gold-level customer) • Analyze renewals for recurring revenue opportunities • Coverage Times • Response Time Commitments • Discounts • Resource Preferences • Time Zone & Breaks Notifications • Expirations • Renewals Service Contracts Repository Instantaneous Verification Service Rep Customers Accelerate Response via Seamless Contract Integration – Value Through Strategic Planning
  • 18. 3. Know Installed Base Configurations Data Modeling to meet the Process  Record Mfg, Quality and Maintenance Specifications  Track the Status and History of All Changes  Manage Configurations / “As Maintained” BOM  Record Operational Metrics  Review Resolution for Similar Products With Similar Issues  Track Depreciation and Accounting Information Common Product Repository Design Specs BOM / Configuration Quality Data Usage / Status Maintenance & Service History Warehouse / Packaging Sales / Shipping Ownership / Installation Capture Information From Inception to Retirement – Qualitative Domain Modeling
  • 19. 3. Field Service Resource Planning Increase Productivity and Service Quality – Logical Process Modeling Issues • General Inquiries • Call Backs • Inspections • Component Returns • Replacements • Field Repair & Maintenance Optimize Workloads & Schedules • Priorities • Costs • Travel Time / Distance • Locations / Road-Level Routing Optimizing Engine Scheduling Criteria Resource Workload Spares Inventory Products Resources / Skills Territories Contracts / Customer Value
  • 20. 3. Field Service Deployment Spare Parts Access Options: • Wireless connected • Disconnected w/ periodic synchronization • View and update schedule • Access service levels • Update product / issue data real-time • Order parts remotely • Report time, material and expenses incurred Mobile Capabilities Optimize Schedule Create Field Work Order Identify Resolution Needs Resolve On-Site Dispatch Field Techs Debrief Invoice Customer Reduce Repair Time & Cost, Leverage Mobile Capabilities
  • 21. 4. Manage Product Returns Support Complete Logistics & Repair Processing Needs in the Model Receive and Inspect Estimate and Approve Plan and Schedule Store, Ship Debrief and Bill Billing Mfg & Inventory Shipping / Receiving Human Resources Contracts Exchanges In-House Repair Repair, Refurbish, Reclaim Identify Resolution Needs Send Loaner or Exchange Direct Product Return Identify Resolution Needs Generate RMA  Monitor Return of Damaged and Serviceable Products – Perform diagnostics and job estimates – Execute shipment back to customer and invoice for services rendered  Track Repair Status and Actual Costs  Automatically Update Product Configuration and Repair History
  • 22. 5. Installed Base Preventive Maintenance Improve Spare Parts Planning Create PM Programs Optimize Schedule • Define programs, including default schedule, required resources, and covered items • Link programs to Contracts to initiate coverage • Auto-generate field work orders • Auto-generate service requests and tasks based on plans • Assign resources, including spare parts and equipment • Automate stocking rules • Manage excess inventories • Utilize automatic replenishment rules based on lead times • Debrief time, labor & materials • Invoice customer • Feedback results to plan to adjust timing of next PM activity Debrief & Invoice Dispatch Technicians & Perform PM • View customer and PM work info remotely • Execute PM against established procedures Support Planned Maintenance & Reduce Breakdowns in the Logical Process Model
  • 23. Customers, Suppliers, Products, … Project & Contract Mgmt HR & Finance Planning & Purchasing 3rd Party & Legacy Apps Manufacturing Order Mgmt & Warehousing Product Development Service Asset Maintenance Sales & Marketing Foundation: Common Data Model  Single definition of customers, suppliers, products, etc.  Immediate access to accurate, complete global information  Consolidate data from multiple systems  Scale to meet growth demands A Single Source of Truth – Using Qualitative Domain Model
  • 24. Deliver Daily Business Intelligence – Objective: Set institutional targets – Fact: Provide performance-based metrics – Exception: Continuously evaluate performance Manage By… What are the project schedule and budget impacts of design change? How can I best adjust to planning exceptions? How should I allocate production resources to meet variable demand? How are supplier deliveries impacting my on-time delivery capability? How is my backlog of open service requests changing? Real-Time Access to Complete Business Information
  • 25. Corporate Governance: Use EA, GRC and APM Tools for Visibility, Control, Efficiency Automate Processes and Extend to Customers & Suppliers Your Company Customers & Suppliers • Identify issues early • Enable real-time information access & performance mgmt • Consolidate global financials • Unify corporate reporting • Consolidate and reconcile information rapidly • Automate business processes and broaden use of self-service • Simplify IT infrastructure • Leverage best practices from different groups / regions Visibility Efficiency Provide Single Source of the Truth Centrally Manage Policies and Procedures • Integrate and centralize business operations • Document processes and support compliance • View, test, and certify internal controls • Manage corporate communications Control Orders Invoices Payments Requisitions
  • 26. IT Cost and Business Value Realignment – Via APM Innovation at System Level Define the Differentiating Factors Codify Systems of Record
  • 27. PartnerNetworkKeyActivitiesKeyResourcesCostStructureOfferClientRelationshipsDistributionChannelsClientSegmentsRevenueFlows A Business Model Canvas Value Through Strategic Planning  Appreciate Business Process and Domain Modeling as a foundation for Architecting  Perceive How Business and Technology Strategy Integrate to give directions to formulate next generation Architecture
  • 28.  Business Model → WHAT  Operating Model → HOW Constitutes the business architecture and consists of the following models:  Process model  Decision model  Structure model  Performance model  Governance model  Each business model type has a corresponding operating model type Manu- facturer Integrated Collaborative Environment Business Model to Operating Model Value Through Strategic Planning
  • 29. There is evidence of a strong link between organisational performance and architecture maturity Use Enterprise Architecture Methodology 29 MIT research shows a relationship between high performing companies and a mature Enterprise Architecture practice Architecture Maturity Discussion • Research has shown that as companies become more high performing as their architecture matures towards Business Modularity • Global EA maturity study showed that over 60% of surveyed organizations with mature EA realized value through decreased cost, minimized risk, decreased complexity and increased agility Key Characteristics Local and functional optimisation IT efficiency Operational efficiency High Performance Company IT Investment practices Invest heavily into local applications addressing local business needs Invest into shared infrastructure services Selectively invest into shared data and standardised business processes Focus on reusable application and process components for a modular operating model
  • 30. Enterprise Architecture helps in aligning IT with business strategy than a detailed solution design 30 Architecture operates across the entire organisation (i.e. multiple lines of business) and is aligned to the corporate strategy and outcomes Description Architecture relevant to specific business unit(s) or operating models within an organisation Also referred to as segment architecture and is aligned to business strategy & outcomes Architecture supports detailed design and technology implementation relevant to support specific projects or capability outcomes Architecture Capability Continuum High Example Principles Enterprise Architecture Principles include “Customer 1st” or “Build in Agility” Domain Architecture Principles include “Universal role based Front End” or “Single customer repository” Solution Architecture Principles include “Customise common sales & service platform locally” or “Introduce risk based pricing tool” Less Detailed Less Strategic More Strategic Enterprise Architecture Domain Architecture Solution Architecture EA Focus More Detailed Decision Level Typical decisions include definition and prioritisation of capabilities and applications to meet end state requirements Typical decisions include clarifying business processes to be undertaken and the resultant requirements Typical decisions include types of products, information flows and overall timing of solution
  • 31. EA generates eight outputs including strategic considerations, design principles and architectural views 31 Output Description Strategic Considerations Outlines and details a consistent view of the strategic considerations from each business unit within the organisation Design Principles Provides guidance in decision making and acceptable trade-offs when defining the Target State Architecture Standards Formulates and applies enterprise-wide IT standards and processes Current Business Model Baselines the client business model and IT infrastructure to identify and prioritise opportunities for improvement Architectural Views Identifies the levels, layers, and linkages that identify and help enable capabilities within the business and describe how IT supports client business and performance objectives (the views can be current or future state) Scenarios Depicts a potential future state customer situation to illustrate the capabilities required and help identify the current limitations that hinder it Blueprint Provides a clear link to the development of future IT systems, investment planning and portfolio management Roadmap Describes the implementation plan to achieve the target state architecture Governance Identifies design guidelines and patterns to ensure IT operates in the most efficient manner to achieve the future state architecture Enterprise Architecture Outputs
  • 32. Thank You Learning from Case Study 5 Steps to Success in Adopting EA  Set Business Value through Strategic Planning, Focus on Strategic Imperatives, Define Capability Continuum  Adopt IT Strategy to meet the Capability Continuum – Both Business Model and Operating Model Canvas  Define Qualitative Domain modeling, Define Logical Process Modeling  Select Application, Information delivery to within the above Domain and Process Boundaries  Adopt Enterprise Architecture for IT Application Portfolio, Governance and Risk to Define EA Roadmap for meeting the Set Business Value