Redlands Lecture

E-CollaborationE-CollaborationAnd, the role of Web 2.0And, the role of Web 2.0

December 10, December 10, 20092009

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“When all is said and done ..More is said than done.”

Lou Holtz, Former Coach Notre Dame Fighting Irish

Constant Business PressuresConstant Business Pressures

• Globalization• Innovation• Demographic Changes• Green• Cost


• Reduced Product Development Times

• Shorter Quote-to-Cash Cycles– Quick Response to

Customer• Globalization

• Customization of Products & Services

• Six-Sigma Quality Levels

• CAD, CAE, FEA, Product Data Management (PDM), CIS

• Order Management Systems, ERP, SCM/Capacity Simulation, Sales Force Automation, VMI

• Internet, Wide Area Nets, EDI, E-Mail, Currency, Language Facilities, A/V Conferencing, Web 2.0

• Software Modules, Object-Oriented Development, Table-driven Configurators

• CAD, Simulation, Design Rule Checking, Order Management


Business Drivers - IT Enablers


• Materials Management (MRP)

• Shop Floor Control• CAD - CAE• Analytic Computation• Word Processing

• Direct Customer Access• Product Configurators• Product Customization• Fast Response/JIT• EDI/E-Commerce• Supply Chain• Collaboration

1960 - 19731960 - 1973 1973 - 1980s1973 - 1980s 1990-2000s1990-2000s

Faster Ledgers----

Direct Savings

Faster Ledgers----

Direct Savings

Operating Efficiencies

----Indirect Savings

Operating Efficiencies

----Indirect Savings

Virtual Corporation----

Growth

Virtual Corporation----

Growth

• Accounting/Finance

• Payroll• Sales Statistics• Cost Distribution• Inventory Accounting

Applications Software Shift

Competitive StrategyCustomerCustomer

IntimacyIntimacy

Product Product

InnovationInnovation

OperationalOperational

ExcellenceExcellence

Product

Process

People


Best people often move on to other jobs Best people often move on to other jobs despite the investment in training. Expertise is despite the investment in training. Expertise is lostlost..

Leading Companies point to the fact that revenue Leading Companies point to the fact that revenue growth results from products that were recently growth results from products that were recently introducedintroduced

Continuous Improvement

Objective:

Cycle Time =


Objective:

Cycle Time = Process Time

Assumptions

• Process• Applications & Tools• Infrastructure


Further AssumptionProcess (Requirements)

Applications (Software)

Infrastructure (Platforms)


Realities

• Not Sequential• Inflexible Software• Time Consuming• Lack of Standards


Process Model


ERP

Eng..Order

FactoryOrder

PurchaseOrder

SalesOrder

Process Model


ERP

Eng..Order

PLM

FactoryOrder

PurchaseOrder

SalesOrder

EngineeringEngineering

CollaborationCollaboration

ManufacturingManufacturing

EngineeringEngineering

CollaborationCollaboration

ManufacturingManufacturing

21st Century Organization

• Withering Hierarchy

• Teams

• Empowerment

• Network-Based

Workgroups

• Product Teams• Functional Teams• Task Forces• Cross Functional Teams• Inter-company Teams• Industry Teams


Workgroup Support Products

• Lotus Notes• Exchange/Outlook/Project• Sharepoint• Collabra• GroupWise• Blogs, Wikis, Social Networks


New Software Generation Appearing

• Object-Based (Flexible)• Platform Independent• Standards compliant (TCP/IP, etc....)• Web 2.0


Software learns a lesson from hardware evolution


.

Abstraction and encapsulation enables reuse of complex software capabilities

OTI-94-G0025.a

Har

dw

are

Har

dw

are

So

ftw

are

So

ftw

are

PrimitiveFunctions

EncapsulatedObjects SubsystemsMulti-Objects

Object

attributes

methods

Multi-Object

Object

Subsystem

Multi-Object

Multi-Object

Object

Object

Multi-Object

Web 2.0 Capabilities

• Conversation: Blogs• Syndication: RSS• Consensus: Wikis• Sharing: Social bookmarking• Applications: Mashups

WWWWWW.peergroup.net.peergroup.net

McKinsey & Co.


Web 2.0

Facilitates……Facilitates……

–Connections–Relationships–Context–Helps Resolve Ambiguities


Growing Adoption Of Web 2.0

Source: Forrester ResearchSource: Forrester Research

Web 2.0 at Work

Which of the following technologies are being offered to employees as corporate applications?

Percent of sample answering

Instant messaging 50%

Wikis 30%

Blogs 23%

RSS 18%

Social networking 10%

None of the above 31%

Source: CIO Web 2.0 Survey, 2008Source: CIO Web 2.0 Survey, 2008


Electronic Marketing• Information• Literature• Samples

Order Processing• Order entry• Pricing• Agreements• Returns

CustomerAccountManagement

CustomerAccountManagement

CustomerService

Management

CustomerService

Management

Baldrige Award • People Empowerment

• Field Force/Teams

Baldrige Award • People Empowerment

• Field Force/Teams

CustomersField Service Reps

Re-engineered The Business Process• $21 million annual savings• 95% improvement in on-time delivery• 60% reduction in sales office queries• 72% reduction in product returns• 78% reduction in cycle time (14:1)

Re-engineered The Business Process• $21 million annual savings• 95% improvement in on-time delivery• 60% reduction in sales office queries• 72% reduction in product returns• 78% reduction in cycle time (14:1)

“The Customer Connection”

Texas Instruments

Stormhoek Vineyards

• Consumer Blogs (everyone’s a wine expert)

• Participative pairing• Wine Clubs• Subscription to wine publications• Sales have tripled since 2005


Baseline…June 14, 2007Baseline…June 14, 2007

Current Applications Blogs

Internal Communication Marketing/PR

Wikis Collaboration Knowledge Capture & Management

Community Sites Marketing - Customer Engagement

Social Networks Company Directory on Steroids

Benefits: Attracting and retaining smart young workers

Shift to Customer 2.0

• Large businesses spend more on employee collaboration tools than customer-facing Web 2.0

• That trend will reverse by next year

• By 2013, companies will spend nearly a billion dollars more on customer-facing Web 2.0 than on internal collaboration

• Is there a payoff for this $1B investment?

Source: Forrester ResearchSource: Forrester Research

EveryThing is Measurable


Key Elements

• Re-engineer process• Communications network• Workflow software• Data Base discipline

• Web 2.0 utilization


The Challenge of Change

“It must be remembered that there is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage, than the creation of a new System. For the initiator has the enmity of all who would profit by the preservation of the old institutions and merely lukewarm defenders in those who would gain by the new ones.”


“It must be remembered that there is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage, than the creation of a new System. For the initiator has the enmity of all who would profit by the preservation of the old institutions and merely lukewarm defenders in those who would gain by the new ones.”

Maciavelli 1513


ReadingsReadingsReal Time; McKenna, , Regis

Blur; Davis, Stan; Meyer, Christopher

Competitive Strategy; Porter, Michael

Using Technology to Improve Workforce Collaboration; McKinsey Digital


Thank You for Your AttentionThank You for Your Attention

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Networks for Networking

• Intranets• PLM• SCM Software• Exchange/Notes• Self Serve• Blogs• Wikis

• EDI• EFT• Industry Intranets– textiles

• Trade Exchanges• E-Commerce• Social Networks


Resulting Issues

• Process - BPR–Limited Successes (Ford/Mazda)

• Applications –Best of Breed Vs. Integrated Set–Tailoring/custom development

• Infrastructure–Diversity


CaterpillarCaterpillar


Benefits• Cycle times reduced from

60 days to 5-10 days• Fewer people in the process• Improved accuracy

Benefits• Cycle times reduced from

60 days to 5-10 days• Fewer people in the process• Improved accuracy

Dealers & OEMs

• Data entry screen at customer location• High level English language part names• Prompts for features, modules, and options

• Software and data base explode order into low level, complex details such as numbering, revision levels, and codes

• Validates for customer that order will fit current configuration

Business Need• Simplify the

ordering Process• Reduce cycle times

Business Need• Simplify the

ordering Process• Reduce cycle times

Competitive Strategy

Customer

Intimacy

Product

Innovation

Operational

Excellence

Product ***** ********* **

Process ******** ** *********

People ********* ***** *****


Redlands Lecture

Technology

Transcript of Redlands Lecture