E-CollaborationE-CollaborationAnd, the role of Web 2.0And, the role of Web 2.0
February 11, 2010February 11, 2010
[email protected]@cox.net
www.peergroup.netwww.peergroup.net
OC CIO Peer Group BreakfastOC CIO Peer Group Breakfast
Constant Business PressuresConstant Business Pressures
• Globalization• Innovation• Demographic Changes• Green• Cost
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 22
• 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
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 33
Business Drivers - IT Enablers
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 44
• 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
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 55
Competitive StrategyCustomerCustomer
IntimacyIntimacy
Product Product
InnovationInnovation
OperationalOperational
ExcellenceExcellence
Product
Process
People
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 66
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 = Process Time
Assumptions
• Process• Applications & Tools• Infrastructure
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 99
Further AssumptionProcess (Requirements,business rules)
Applications (Software)
Infrastructure (Platforms)
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 1010
Realities
• Not Sequential• Inflexible Software• Time Consuming• Lack of Standards• Sometimes it’s hard to set a rule
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 1111
Process Model
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 1212
ERP
Eng..Order
FactoryOrder
PurchaseOrder
SalesOrder
Process Model
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 1313
ERP
Eng..Order
PLM
FactoryOrder
PurchaseOrder
SalesOrder
EngineeringEngineering
CollaborationCollaboration
ManufacturingManufacturing
EngineeringEngineering
CollaborationCollaboration
ManufacturingManufacturing
21st Century Organization
• Withering Hierarchy
• Teams
• Empowerment*
• Network-Based
*sometimes it’s O.K. to break the rule
Workgroups
• Product Teams• Functional Teams• Task Forces• Cross Functional Teams• Inter-company Teams• Industry Teams
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 1515
Workgroup Support Products
• Lotus Notes• Exchange/Outlook/Project• Sharepoint• Collabra• GroupWise• Blogs, Wikis, Social Networks
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 1616
New Software Generation Appearing
• Object-Based (Flexible)• Platform Independent• Standards compliant (TCP/IP, etc....)• Web 2.0
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 1717
Software learns a lesson from hardware evolution
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 1818
.
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.
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 2020
Web 2.0
Facilitates……Facilitates……
–Connections–Relationships–Context–Helps Resolve Ambiguities
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 2121
The Rule: Only place litter in bins with lids
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 2222
Perspective is context
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 2323
Process Model
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 2424
ERP
Eng..Order
PLM
FactoryOrder
PurchaseOrder
SalesOrder
EngineeringEngineering
CollaborationCollaboration
ManufacturingManufacturing
EngineeringEngineering
CollaborationCollaboration
ManufacturingManufacturing
VendorVendor
CollaborationCollaboration
ManufacturingManufacturing
VendorVendor
CollaborationCollaboration
ManufacturingManufacturing
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
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 2727
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
WWWWWW.peergroup.net.peergroup.net
WWWWWW.peergroup.net.peergroup.net
Stormhoek Vineyards
• Consumer Blogs (everyone’s a wine expert)
• Participative pairing• Wine Clubs• Subscription to wine publications• Sales have tripled since 2005
WWWWWW.peergroup.net.peergroup.net
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
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 3333
Key Elements
• Re-engineer process• Communications network• Workflow software• Data Base discipline
• Web 2.0 utilization
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 3434
ReadingsReadingsReal Time; McKenna, , Regis
Blur; Davis, Stan; Meyer, Christopher
Competitive Strategy; Porter, Michael
Using Technology to Improve Workforce Collaboration; McKinsey Digital
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 3636
Thank You for Your AttentionThank You for Your Attention
[email protected]@cox.net
www.peergroup.netwww.peergroup.net
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 3737
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 3838
“When all is said and done ..More is said than done.”
Lou Holtz, Former Coach Notre Dame Fighting Irish
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 institu- tions and merely lukewarm defenders in those who would gain by the new ones.”
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 3939
“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
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 4040
Networks for Networking
• Intranets• PLM• SCM Software• Exchange/Notes• Self Serve• Blogs• Wikis
• EDI• EFT• Industry Intranets– textiles
• Trade Exchanges• E-Commerce• Social Networks
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 4141
Resulting Issues
• Process - BPR–Limited Successes (Ford/Mazda)
• Applications –Best of Breed Vs. Integrated Set–Tailoring/custom development
• Infrastructure–Diversity
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 4242
CaterpillarCaterpillar
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 4343
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 ********* ***** *****
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 4444
[email protected]@cox.net www.PeerGroup.netwww.PeerGroup.net 4545