Manufacturing. Vice President
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1 Manufacturing Arun Pai Vice President
2 What you can expect from this session Manufacturing Vertical Overview Our Micro Segment Focus Business Aligned and Process Centric Approach Manufacturing Mega Trends and Our Response Our Key Manufacturing Solution Offerings 2
3 HCL Manufacturing Overview Largest vertical contributing ~$1 billion to HCLT revenues High growth vertical ~10% Q-on-Q growth Leadership in hi- tech; High growth momentum in Aero, Auto, Industrial, Chemicals 3
4 Strength across Market Segments Seg gments Micro segment focus has enabled right market alignment and fueled growth Hi-Tech Aerospace Auto Industrial Medical Devices Chemicals & Process Highligh hts 23% market share of all High tech work done by IOPs 5 of the top 7 ISVs 1st A&D SAP MRO Solution implementation in the US 8 of the top 10 Aerospace Companies $8 million Auto solution development and dtesting ti lab 5 of the top 10 automotive OEMS Over 10 years differential solutions experience 3 of the top global Industrial Mfg Companies One of the fastest growing segments 7 of the top 10 Global Medical Devices Companies Bottom Up Value Proposition with SCM Consulting led solution Emerging Vertical Focus Ind dicative Clien nt Base 4
5 HCL Manufacturing Key Differentiators Balanced Portfolio of services across manufacturing life cycle Enterprise Apps, Plant IT, Infra enabling concept to manufacture to run the business Manufacturing heritage the only IT company with roots in the mfg business giving us unique understanding of domain and business processes Innovative business models and agility to impact business outcomes Through ground up IT initiatives, business linked SLAs 3 Comprehensive business operational framework Stabilize (Run), Standardize (Optimize), Transform Stabilize Optimize Transform 5
6 Our execution framework MASCoT TM Comprehensive Framework that covers the entire lifecycle of a Managed Services Engagement 6
7 Stabilize Optimize Transform Case Example IC Pricing Problem Resolution Roadmap at an Instrumentation major Incident Analysis PRICING INTERCOMPANY As Is Process map 5% 5% SIEBEL SFI 5% 32% 7% MASTER DATA ERROR 7% 8% 9% 11% Recommended Workflow 11% OUTPUT MASTER DATA MAINTENANCE Q&A To be Process map Client Problem: Delays in billing due to inordinate time consumed in world wide billing application HCL Approach: Through analysis of incident data during support and maintenance of billing application, HCL team identifies the key issues in the process flow and proposes an alternative process flow Potential Impact: Proposed changes after implementation at process and application level will reduce the process cycle time by 75% 7
8 HCL Services across Global Manufacturing Balanced portfolio of services across the manufacturing value chain Manufacturing Value Chain Concept & Design Global Sourcing Manufacturing Material Mgmt & Outbound Logistics Sales & Marketing Service & Support HCL Services across the Value Chain Product Engineering Engineering Change Management Hardware design Embedded Supply Chain Optimization Supply Chain Diagnostics Performance Benchmarking BPR Plant Automation MES Plant Performance Improvement Shop floor ERP Integration Supply Chain Assessment Solution Evaluation & Package Recommendation Solutions Implementation CRM Strategy, Implementation diagnosis and roadmap Customer Experience mgmt. BPR MRO Spare parts Mgmt Warranty mgmt. Contract mgmt. Custom Application Dev & Maintenance Services Infrastructure Services Enterprise Apps Engineering and R&D Services Business Services Enterprise Transformation Services 8
9 HCL Solutions for key Business Processes Key Processes Procure to Pay Order to Cash After Sales Support Representative Customers Leading ISV HCL Solutions Implemented group-wide Procure to Pay system for a leading Semi Mfg Company - iprocurement, icontract, Service Contract, isupplier Portal, Sourcing, and Daily Business Intelligence Integrated Order Management solution with Demand and Field Inventory visibility and mobility capability. CRM and Service Management E-commerce engine Deep Industry Experience and Operations Maturity driven by significant investment in knowledge creation 9
10 Alignment with Customer s Business Goals Customer s Goal HCL Mfg Value Proposition Proof Points Benefits Strong Cash Generation- effective re deployment Drive enterprise wide Cost Variablization (Capex to Opex) Cost optimization thru APO, Legacy Modernization Sustained revenue Channel Management Solutions growth & expand in to emerging markets- India Global Engineering / Operations platform & China CSAT Improvement & Green initiatives Continuing cost Reduced through operational excellence & restructuring Enhanced Aftermarket Service Mgmt Improved Performance Mgmt High quality, On Time Delivery, CEO Dashboard for 360 degree Visibility Enterprise Carbon management and sustainability solution, Green IT Reduced Cycle time with ISCM, O2C Rationalization Standardization di ti of IT process, CoE Build on shared model Leading peripheral manufacturer POC at a leading chemical company for SAP Carbon Impact Cost Savings- 13% reduction the number of applications 20% reduction in cost/employee of IT staff Automated BOM synchronization time reduced from 24 hours to a simple click 60% more information at pre-specified BOM levels 140% increase in agent productivity 50% reduction in wait times Higher Customer Satisfaction Reduction in working capital Improved inventory turns- $80 M Improved Operational efficiency 10
11 Partnerships & Alliances Partnerships and alliances across Manufacturing landscape Corporate IT Business Apps Manufacturing Execution Systems Product Engineering/ PLM/ PDM 11
12 Manufacturing Mega trends and our response Industry Trends Shifting focus from Product to Services business Enhance After Market Services Revenue Business Response & Technology Enablers Provide service as a major offering (Asset management monitoring, Managed services), Pay per use models Enhancing after market revenues by implementing CRM, warranty management systems HCL Response & Preparedness Product Service Enablement Platform Oracle based Warranty Management solution Reduce Cost, Shift to Variable cost structure Consolidation & optimization on Buy side Optimize Mfg core process Digital Supply Chain Focus on end consumers Manufacturing Optimization through lean Mfg and Kanban initiatives to reduce waste Supply chain optimization Consolidation of vendors, Investment in Global sourcing platforms Cloud Computing Investments in BI, CRM Focus on e-commerce, social media, Mobility End to end capabilities in SCM, PDM, PLM and MES FrAME Solution SAP Perfect Plant Capability Investments in Cloud initiatives Enterprise Analytics Dashboard solution o HCL Mobility Solution E-commerce solutions Mergers & Acquisitions IT, product portfolio and back office consolidation mprizm tool and MergeIT offering 12
13 Key FY10 Wins Manufacturing Client Micro Vertical Apps Infra BPO Engg. Services Multi Region Delivery Deal Size ($M) Leading ISV Hi-tech US 125 Hi-tech US 30 Leading Peripheral Manufacturer Industrial 100 Hi-tech US 66 Leading Auto Supplier Auto US 22 Hi-tech 50 Leading Security Software maker Hi-tech US 35 13
14 Manufacturing Solutions Accelerators and Frameworks Product Engineering Sales & Marketing Supply Chain Manufacturing/ Operations After Market SI Customer Connect Seva Warranty Decision Support System Mobility Solution (Supply chain and Field Service) Supply Chain Assessment Sustainability Offering Bolt On Solutions SAP - imro, icrew, iline, Oracle - icontracts, Royalty Solution, Revenue Recognition, Engineer To Order, Fabless Manufacturing Product Engineering Services Enterprise IT Services Manufacturing IT Services Infrastructure Services Business Process Outsourcing Business Aligned IT 14
15 SEVA Platform for Product Service Objective Improve product performance (uptime, efficiency and reliability) Enable revenue generation for manufacturers through utility based models Enable service delivery by channel partners and monetization Improve aftermarket process effectiveness through technology leveraging HCL IP s and Services Offerings Managed Equipments Internet Device Services Enterprise Web Serv vices SEVA Platform with API accessible to remote applications via web services Internet Client Application Back-Office systems: CRM, SCM, PLM, etc. Service management Improving performance - MTBF, MTTR, First Time Fix Rate Predictive/ Scheduled Maintenance Usage based planning Service, parts and consumables Utility based pricing Rental Solutions, Output based Services Service intelligence Patterns on Usage, Cross Sell opportunities 15
16 Warranty Decision Support System Vehicle Registration Claims Processing RMA Reports Solution Benefits Contract Definition Claims settlement Warranty Process Control Dashboard & KPI Reporting A Product Registration B Automatic Claim Settlement Predictive Warranty analytics lti analytics lti Reporting & Analytics Real time access to warranty information Faster claims processing and settlement Predictive Analytics for parts failure based on algorithms Reduce engineering re-design cycles Statistical inferences to predict and prevent critical warranty issues Improved customer service and response on Warranty Transacti System Analytics System Monitoring System C Supplier OEM Dealer PL Standard Reports Custom Reports Product Engineering A B C WMS Portal WDB ERP 3PL A B C WMS portal HCL Warranty Management System 3PL Customer 1 A WMS Portal OEM Dealer Customer Warranty Database Ubiquiti Analytics Engine Service Dept RMA Process Predictive Analytics Reports Early Warning Reports Quality System 16
17 Mobility Enabling Field Service Identify (using Mobility Camera/Scanner) Locate Part or replacement Action: Service Video Enterprise Applications Parts Warehouse Service Management Systems Field Technician CSA/ Central Support Plant Site 17
18 Social Intelligence: Product & Process Innovation Using Social Media to innovate products and processes by internal and external collaboration Product & Process Innovation Social Software Communities Individual Virtual Workspace Collaboration Embedded Analytics Actions to Innovate Product Feature or Process Community Engaging at Individual level Collaboration/ Brain Storming Ideas Analyze & Follow Actionable Innovations Opinion, Ideas, Categories ^ - + ^ 0? = 18
19 Sustainability Solution Offering for Manufacturing Vision Strategy To transform organizations through compliance into economic value add for sustainability. Design, manufacture and deliver innovative products & services with reduced environmental impact through effective business processes. HCL Sustainability Solutions for Manufacturing Executive Management Exaecutive Management Assessment & Gap Anal. Benchmarking & Analytics Sustainability Reporting Design Market Sell Engineer Procure Manufacture Store & Move Service Customer Organization (Purchasing/ Finance/ Engineering/ EH&S/ Risk & Compliance) Product Development 3 6 Sustainable Design 3 Product Footprint 5 Product Compliance Material & Product Safety Recycling & Reuse Sustainability Marketing & Branding Sales Sales Incentives Planning SC Carbon Footprint GreenSCOR 1 Marketing Supply Chain Packaging Engg & Redesign Facility Energy Mgmt. Traceability & Recall Logistics Optimization Manufacturing 3 Equipment Efficiency Emission Carbon Mgmt. 2 Mgmt. 4 Green Sourcing Procurement Product Energy Mgmt. Smart Grid Participation Green Based supply network design Remanufacture Logistics Emission Mgmt. 4 Transportation Mgmt. 9 Service Remote Monitoring & Diagnostics HCL Sustainability Business Consulting 2 HCL GreenEdge 3 HCL Green Design Workbench 4 HCL Green Terminal (Mfg and Logistics) 5 HCL managecarbon(carbon Mgmt) 6 HCL Reman (Remanufacturing) 7 HCL Green DC Services 8 9 HCL Seva (Service Integration Platform) Transportation Mgmt Partner Products IT GreenIT Datacenter te Power Mgmt Green Telecom eco Network Virtualization at Services/ Consolidation o of Servers/ e datacenterste EH&S Environmental Compliance Industrial Health & Safety Process Safety Risk Assessment & Reduction HR Strategic Workforce Mgmt. Labor Compliance & Human Rights Travel Management 19
20 Supply Chain Assessment Dimensions Demand Management Supplier Consolidation Collaboration Supply Chain Agility Methodology Assessment of Performance Indicators Compute current Relevant Pis Compare with Benchmark Pis Identify areas of Improvements Timeline VMOKRAPIS Exercise Revisit Strategy against new benchmark PIs Prioritize the area of advisory Identify conflicts in Strategy and area of advisory Issues- Impact Action Enablers Exercise Identify issues in the area of Collaboration, Forecasting, SCM Agility and Supplier Consolidation Assess Impact and Actions required Identify Enablers for possible solutions New Standard Operating Procedure Setting up of New Standard Operating Procedure Based on Issues Impact Action Enablers Exercise Analytic Hierarchy Process Identification of Criteria Identification of Sub Criteria Setting up proportionate weight to each element Calculation of final score for IT product selection SCOR Metrics Analysis Measurement of Supply Chain Metrics Measurement of SCOR Metrics before and after IT system implementation Week 1 Week 2 & 3 Week 4 & 5 Week 6 & 7 Week 8 Initiate Project VMOKRAPIS Exercise Issues Impact- Action - Enablers Standard Operating Procedure AHP and SCOR Deliverables Report of Comparison between Current PI and Benchmark PI Report of Strategic Directions based on New PIs, Prioritization of Advisory and Conflicts. Report on Impacts and Enablers for all Possible Issues. Set of new standard operating procedure for the area of focus. Report on Final Selection of Products based on Scoring mechanism 20
21 To Sum up HCL Manufacturing $1 billion contribution to HCLT revenues High growth momentum through micro vertical focus and effective horizontal leverage Custom Apps, Enterprise Apps, Plant IT, Infrastructure Management End-to-end dit and BPO services & solutions Strong domain expertise and success stories in Hi-tech, Aero, Auto and Industrial Mfg IP based Solutions accelerators and Frameworks Homegrown solutions and accelerators FRaME, Warranty Management Solution, SEVA, mprizm HCL Managed Services Framework MASCOT, Business Aligned IT framework Partnerships & collaborative sourcing models History of successful 360 degree partnerships Innovative outcome based models 21
22 Thank you Over to Customer Speak session..
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