Digital Transformation Program 14 th June Philip Vospeter Mike van Eckendonk

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1 Digital Transformation Program 14 th June 2016 Philip Vospeter Mike van Eckendonk

2 CLAAS at a glance The product range Combine harvesters Forage harvesters Tractors Forage harvesting Telehandler Balers Service & Parts Software and Systems 2

3 Global agricultural megatrends in 2030 Overview 3

4 Digital Framework Our Framework for Digital Transformation at CLAAS Competent Digital Competence Premium Farming 4.0 Enhance Digital Compentence Operational Excellence Digital Data Add Data Business Models Digital Customer Experience Install Efficient Operating Model Profitable Provide Digital Customer Experience Premium 4

5 End Customer and Machines as Strategic Focus Data as Driver for Farming 4.0 5

6 CLAAS connect 6

7 Silicon Valley detects Ag Business 7

8 Disruption X 8

9 Mission Set up of a Data Lake as Foundation of new Business Models The Data Lake Principle Customer Data Machine Data Analytics CLAAS connect TELEMATICS CRM Measure data Dealer Management System. Test Benches etc New Business Models 9

10 Use Case I: Automated Determination of the Machine s actual Usage Data basis for: Anomaly identification Predictive Maintenance Anomaly Residual value estimation Data driven product development 10

11 Use Case II: New Business Modells with implemented Cross Selling

12 Use Case III: Predictive Maintenance - Guaranteed Machine Availability as a Service Spare parts: Production / warehouse Automated delivery Staff for maintenance Prevent attrition: Optimized service Continuous survelliance of important machine components Exact environmental (e.g. weather, crop plant condition, geo location) Ideal service point (e.g. weather, geo location) Drive mode adjustment Coordination with other machines

13 Organizational Digital Transformation 13

14 Organizational Digital Transformation 14

15 Digital Evolution-Cycle Digitale Culture & Ecosystems Train digital ambassadors Accelerate transformation within the organisation Digital Vision Define a digital strategy (roadmap and goals) Align tools and resources Establish an ecosystem of relevant partners Digital Organisation & Processes Redefine organizational structures Define and test digital processes Digital Awareness Create awareness of digital challenges Anchor this awareness in management and graft it into corporate DNA Digital Test Fields Drive initiatives forward Initiate innovative products Invest in promising start-ups Digital Laboratory & Prototyping Develop prototypes Align IT Test new application technologies Set up a showroom 15

16 Mindset for the Digital Future Impact Focus on results Profit-driven approach White box Fail fast Black Box Controlling Vision Planning Hierarchy levels Connectivity Output Input Productcentricity Focus on functionality Datadriven approach Value-driven approach Empowering Customercentricity 16 Today Traditional business models predominate, digitization facilitates transparency and new (niche) offerings Radical Upheaval Tomorrow All dominant players have assimilated digital strategies, digital business models dominate the mass market Time

17 Digital Transformation in Supply Chain Management 17

18 Masterthesis Approach - Digital Transformation in Supply Chain Management Documentation IT- Architecture Supply Chain Management via EAM-Approach Potential Analysis within Supply Chain Management Transferability Verification of Success Potentials Alignment with Supply Chain Management Preparation list of criteria Record IT Architecture with Supply Chain Management Documentation IT Architecture Supply Chain Management Identification of general potentials and adequate systems solution Comparison with conventional systems solution Elaboration of chances and challenges Transferability Verification of Success Potentials Define Scenario and recommendation for action 18

19 Masterthesis Approach - Digital Transformation in Supply Chain Management Documentation IT- Architecture Supply Chain Management via EAM-Approach Alignment with Supply Chain Management Preparation list of criteria Record IT Architecture with Supply Chain Management Documentation IT Architecture Supply Chain Management Logistics Supplier Relationship Inbound Transport Logistics Potential Analysis within Supply Chain Communic ation Management LSP Supplier Supplier Evaluation Supplier Developme nt Reception and Warehousing Productions Logistics Identification of general potentials and adequate systems Digital Supply Management solutionsrm ERP PPS ERP Comparison E- with conventional ERP Procure systems solution ment SRM tbd Elaboration BI of chances Excel and challenges LVS ERP Excel Concept LCC Logistics SAS Container Manageme nt Standard Reception Excel Supply Category Concept Toolbox Design Standards SCM Planning SLS Cross Company Transferability Verification of Success SKD Potentials / KEU Excel Cross Company Order ERP Excel TMS Shipment & Outbound Logistics Parts Supply Machine Shipment Excel TMS ERP 19

20 Masterthesis Approach - Digital Transformation in Supply Chain Management Documentation IT- Architecture Supply Chain Management via EAM-Approach Potential Analysis within Supply Chain Management Transferability Verification of Success Potentials Alignment with Supply Chain Management Preparation list of criteria Record IT Architecture with Supply Chain Management Documentation IT Architecture Supply Chain Management Identification of general potentials and adequate systems solution Comparison with conventional systems solution Elaboration of chances and challenges Alignment with Supply Chain Management Transferability Preparation list Verification of criteria of Success Record Potentials IT Architecture with Define Supply Scenario Chain Management and recommendation Documentation IT forarchitecture action Supply Chain Management 20

21 Masterthesis Approach - Digital Transformation in Supply Chain Management Documentation IT- Architecture Supply Chain Management via EAM-Approach Potential Analysis within Supply Chain Management Transferability Verification of Success Potentials Alignment with Supply Chain Management Preparation list of criteria Record IT Architecture with Supply Chain Management Documentation IT Architecture Supply Chain Management Identification of general potentials and adequate systems solution Comparison with conventional systems solution Elaboration of chances and challenges Transferability Verification of Success Potentials Define Scenario and Recommendation for Action 21

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