MOTOROLA SOLUTIONS OPERATIONAL TRANSFORMATION
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1 November 14, 2013 MOTOROLA SOLUTIONS OPERATIONAL TRANSFORMATION CHRIS ARMBRUSTER SENIOR DIRECTOR, BUSINESS TRANSFORMATION MOTOROLA SOLUTIONS MIKE MORSCH SENIOR DIRECTOR, SUPPLY CHAIN SYSTEMS MOTOROLA SOLUTIONS
2 83 YEARS = CHANGES CALL TO ACTION FOR TRANSFORMATION MOTOROLA SOLUTIONS SPUN OFF MOBILE DEVICES AND HOME ALIGN PROCESSES & I.T. WITH MORE FOCUSED BUSINESS MOTOROLA MOBILITY NOKIA SIEMENS NETWORKS PAGE 2
3 MOTOROLA SOLUTIONS MISSION-CRITICAL COMMUNICATIONS FOR GOVERNMENT AND ENTERPRISE CUSTOMERS 2012 REVENUE: $8.7 BILLION 21,000 EMPLOYEES CUSTOMER FOCUSED VERTICALS GOVERNMENT MANUFACTURING & FIELD MOBILITY TRANSPORTATION & LOGISTICS RETAIL & HOSPITALITY ENERGY & UTILITIES EDUCATION & HEALTHCARE SOLUTIONS DRIVEN PRODUCT + APPS + SERVICES TECHNOLOGY LEADERS GOVERNMENT ENTERPRISE NEXT GENERATION PRIVATE ASTRO PCR TETRA BB ic&c iden EMC ADC RFID ENC SW PAGE 3
4 OUR SUPPLY CHAIN FOOTPRINT 3PL 3PL 3PL 3PL 3PL PL 3PL 3PL MANUFACTURING / SYSTEM INTEGRATION DISTRIBUTION 3PL 3 RD PARTY DISTRIBUTION PAGE 4
5 BREAKING THE LEGACY CYCLE LEGACY INCREASES COMPLEXITY BREAK HERE DRIVES COMPLEXITY DESIGN IN RATHER THAN ELIMINATE BURDENS NEW INITIATIVES PAGE 5
6 TRANSFORMATION BEGINS INITIAL STATE REGIONAL & SITE FOCUS DESIRED STATE GLOBAL PROCESSES PERFECT THE PIECES OPTIMIZE THE WHOLE QUICKLY REACT ANTICIPATE & SHAPE 9 ERPS 1 ERP DISPARATE HOME-GROWN TOOLS INTEGRATED VCP APPLICATIONS PAGE 6
7 MANAGING CHANGE GRADUALLY CRAWL WALK RUN FLY ROADMAP PEOPLE PROCESS SYSTEMS CAPABILTY ROADMAP PROCESS OWNERS & CHANGE LEADERS LOAD & CHASE ARCHITECT THE SOLUTION FOUNDATIONAL DEPLOYMENT SUPERUSER DEVELOPMENT PLAN & EXECUTE IMPLEMENT CORE VCP APPLICATIONS GLOBAL ONBOARDING ALL PROCESS PRACTITIONERS ANTICIPATE & SHAPE COMPLETE VCP FOOTPRINT PROCESS MATURITY COLLABORATION INNOVATION DELIGHT & DISRUPT FINE TUNE APPLICATIONS PAGE 7
8 TEAM STRUCTURE IS A CRITICAL SUCCESS FACTOR GLOBAL PROCESS OWNERS FUNCTIONAL TRACK LEADS AMBASSADORS OF CHANGE ALREADY KNOW WHO THESE PEOPLE ARE LEADERSHIP SUPERUSERS SUPPLIERS, 3PLS & MFG PARTNERS COLLABORATION OPPORTUNITIES TRADING PARTNERS PROCESS PRACTITIONERS END USERS KEY FOCUS OF CHANGE MANAGEMENT PAGE 8
9 PROCESS TRANSFORMATION PAGE 9
10 PLANNING TRANSFORMATION APPROACH CRAWL WALK RUN PLANNING PARADIGM LOAD & CHASE PLAN & EXECUTE ANTICIPATE & SHAPE TECHNOLOGY ORACLE 11i, SAP & LEGACY PLANNING ORACLE R12/11i, SAP, VCP & LEGACY ORACLE R12 & VCP APPLICATIONS PLANNING MODEL SERIAL & REGIONAL/SITE ALIGNMENT SEMI-INTEGRATED W/ MIX OF VCP & LEGACY SINGLE PLANNING RUN FOR ENTIRE SUPPLY PLANNING CYCLE PLANNING CYCLE OF THREE WEEKS PLANNING CYCLE OF ONE WEEK PLANNING CYCLE OF LESS THAN 1 WEEK CONSTRAINTS APPLIED WITHIN EXECUTION WINDOW APPLIED TO PLANNING & EXECUTION WINDOWS APPLIED & MITIGATED DURING PLANNING PAGE 10
11 OUR PLANNING JOURNEY START FINISH CUSTOMER CUSTOMER DEMAND SUPPLIERS DISTRIBUTION PRODUCT CENTRAL PLANNING PARTS MANUFACTURING DISTRIBUTION MANUFACTURING SUPPLIERS ASSEMBLY PAGE 11
12 THE SIZE OF CHANGE REQUIRES AN INTERIM PROCESS CUSTOMER LEGACY PROCESS TEMPORARILY COEXISTS WITH NEW PROCESS PRODUCT DEMAND CENTRAL PLANNING SUPPLIERS PARTS DISTRIBUTION MANUFACTURING MANUFACTURING ASSEMBLY SUPPLIERS PAGE 12
13 TECHNOLOGY TRANSFORMATION PAGE 13
14 GLOBAL PLANNING FOOTPRINT S&OP DEMANTRA DECISION SUPPPORT APCC SCENARIO ANALYSIS RAPID PLANNING ORCHESTRATION & FULFILLMENT ORDER PROMISING ORDER MANAGEMENT GOP DEMAND PLANNNG SAFETY STOCK PLANNING SUPPLY PLANNING FACTORY PLANNING DEMANTRA INVENTORY OPTIMIZATION ASCP PRODUCTION SCHEDULING TRADING PARTNER COLLABORATION E2OPEN PAGE 14
15 Buyer Production Plnr DC Planner Central Planner Demand Planner Create Forecast CRSD Plan DEMANTRA Plan Safety Stock SSD Plan IO ASCP Rel. Planned Orders to IRs Resched. Plan Position & Level Demand Collect Plan Inputs Run Plans ASCP ASCP Review CRSD- SSD Gaps A ASCP Rev. Resched. Exceptions INTERIM PROCESS BLUEPRINT Validate Plans APCC ASCP Implement New SSD Review Delinquencies Load Data Warehouse Analyze Revenue Adjust Sales Order Priorities APCC Review Total Site Demand ASCP ASCP ASCP Rel. Planned Orders Rel. Planned Orders Review Exceptions to IRs to DJs APCC Simulate Plans & Scenarios ASCP Review Exceptions Clear To Build RP Manage Shortages ASCP ASCP Rel. Planned Orders to DPO Apply Fair Share ASCP Update Supply Commit A PS Optimize Prod. Schedule BLUE BOX = VCP LEVERAGE PAGE 15
16 OUR ASCP PLANS ATP (SSD) EXECUTION (CRD) MATERIAL (CRD) BACKLOG (CRD) MAKE-XFER (SSD) SIGNAL TO CUSTOMER SIGNAL TO LEGACY TOOLS SIGNAL TO SUPPLIERS SIGNAL TO DISTRIBUTION SIGNAL TO FACTORY CONSTRAINED UNCONSTRAINED UNCONSTRAINED CONSTRAINED CONSTRAINED FIRST SSD FOR NEW S.O. DIRECT BUY RELEASES & SHORTAGE MANAGEMENT TRADING PARTNER COLLABORATION SSD IMPROVEMENT TRANSFER MFG TO DC PAGE 16
17 START REGIONAL ERPS & LEGACY PLANNING TOOLS CUSTOMER FACING SYSTEMS GLOBAL (ENTERPRISE) ASIA (GOVERNMENT) EUROPE (GOVERNMENT) AMERICAS (GOVERNMENT) SAP ORACLE 11i ORACLE 11i ORACLE 11i UNIQUE LEGACY PLANNING TOOLS UNIQUE LEGACY PLANNING TOOLS UNIQUE LEGACY PLANNING TOOLS UNIQUE LEGACY PLANNING TOOLS SUPPLIER FACING SYSTEMS PAGE 17
18 STEP 1 EBS & CORE VCP APPLICATIONS FOR 1 SBU CUSTOMER FACING SYSTEMS TRILOGY ASIA (GOVERNMENT) EUROPE (GOVERNMENT) AMERICAS (GOVERNMENT) ORACLE R12 ORACLE 11i ORACLE 11i ORACLE 11i VCP CORE UNIQUE LEGACY PLANNING TOOLS UNIQUE LEGACY PLANNING TOOLS UNIQUE LEGACY PLANNING TOOLS SUPPLIER FACING SYSTEMS PAGE 18
19 STEP 2 ADD ASIA AND COMPLETE VCP FOOTPRINT CUSTOMER FACING SYSTEMS TRILOGY ORACLE R12 DEMANTRA, ASCP, APCC, RP, IO, S&OP & PS EUROPE (GOVERNMENT) ORACLE 11i UNIQUE LEGACY PLANNING TOOLS AMERICAS (GOVERNMENT) ORACLE 11i UNIQUE LEGACY PLANNING TOOLS SUPPLIER FACING SYSTEMS PAGE 19
20 FINAL STEP ADD EUROPE AND AMERICAS CUSTOMER FACING SYSTEMS TRILOGY ORACLE R12 DEMANTRA, ASCP, APCC, RP, IO, S&OP & PS SUPPLIER FACING SYSTEMS PAGE 20
21 LESSONS LEARNED HOW YOU GET THERE IS AS IMPORTANT AS WHERE YOU ARE GOING END-TO-END BUSINESS MODEL MUST DRIVE FUNCTIONAL SOLUTION GLOBAL OWNERSHIP ENABLES GLOBAL PROCESSES CONFIGURE TO ORDER RAISES COMPLEXITY ASCP IS A POWERFUL ANALYTICAL APPLICATION PLAN COMPLEXITY DRIVES PROCESSING TIMES FREQUENTLY REVIEW INFRASTRUCTURE SIZING DURING SOLUTIONING
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