Always Online Der Wechsel von einem Offline zu einem Online Konzept

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1 Always Online Der Wechsel von einem Offline zu einem Online Konzept IBM. CIO. Club. of. Excellence ,.. L.. Olböter

2 Rieter Broadest global systems supplier Global supplier of spinning machinery and components Europe Asia Americas [Pic] [Pic] Legend Sales Service R&D Production Full-liner for all fibre types From raw material to yarn covering preparation and all four spinning technologies Ring conventional (1) Ring compact (2) Preparation Rotor (3) High/import segment Mid/local segment Air-Jet (4) IBM CIO Club of Excellence

3 Global supplier: Rieter s locations worldwide USA Rieter is present in all relevant textile producing countries Switzerland Germany Czech Rep. Netherlands Belgium France Uzbekistan China Taiwan Turkey India Brazil Sales contract partner Sales office Service R&D Manufacturing Agents IBM CIO Club of Excellence

4 Strategic intent of the Rieter Group Strategic intent Growth strategy Strengthen position in China and India, stay No. 1 in the import segment and become No. 2 in the local segment Protect strong position in RoW Close product gaps through innovation and external opportunities Innovation Improve yarn quality Increase fiber yield / productivity Achieve cost and energy savings (for spinning mills) Cycle management Maintain break-even focus Generate free cash flow throughout the cycle Keep key know-how IBM CIO Club of Excellence

5 Rieter progress investment program 2012/2013 Investment program with good progress delay in process improvements Expansion in Asia Innovation Process improvements Inauguration of first stage of second plant in Changzhou (China) Construction of second plant in India Airspinning machine (J 20) well received at ITMA Asia First J 20 full system operational at client Improvements in new plants, centralization in Switzerland realized Global processes defined Completion of plant II in Changzhou Ramp-up of second plant in India Continued controlled market introduction Operational Excellence in main plants completed Go-live of new ITsupported processes with delay of half a year Full additional production capacity available Reduction of temporary personnel for investment program 2012 / 2013 Shift of market-specific functions to expanded sites Realization of efficiency gains from process improvements IBM CIO Club of Excellence

6 Requirements IT strategy Strategic Business requirements Flexibility on M&A and desinvestment activities Enable Rieter to easily integrate and carve-out business units. Align IT architecture accordingly Supporting expansion to Far East Relocate part of business to China and India. Growth in staff and facilities in Changzhou and Pune with adaptions in Europe. Adapt IT organization accordingly Enable global collaboration Work in a global organisation with global business processes and projects. Enable global mobility, communication and collaboration and support this through appropriate information technology Global harmonization of business processes across all business units Focus on synergies across all existing business groups globally. Common infrastructure. Single ERP-system Greenfield. IBM CIO Club of Excellence

7 Strategic projects Roadmap for Rieter IT IT projects Global process harmonization (SAP) Implement globally harmonized business process and keep them Assure integrated supply chain across all legal units Assure global financial transparency Global business communication architecture Implement a global mobility, communication and collaboration architecture Renew the IT landscape for fulfilling requirements. Datacenter consolidation, powerful and reliable network, unified messaging and communication tools (Lotus Notes Connections) Cultural Change and global organization Implement a global IT organization with 16x5 hour support and enhance local support capabilities Implement a KeyUser concept globally IBM CIO Club of Excellence

8 IT strategy Business IT alignment Business Strategy Service sourcing Global Services Mobility enabled business processes for all LU Single global ERP-system Cloud ready Globalization Process Redesign Greenfield Footprint Gloria ASUS Global Collaboration Mobile Device Strategy Data Center Strategy Network Strategy Client Refresh IT Strategy IBM CIO Club of Excellence

9 Global mobility and collaboration architecture Initial situation communication and collaboration Initial situation (10 yrs. ago) Business processes designed around individual textile machinery products. Very centric around the headquarter in Winterthur. IT architecture designed in 2003 with minor adaption over the years Data distributed in each physical location with no network access due to weak network bandwidth Low cost and overaged hardware > 8 yrs. old in 2011 No smartphones in 2011 at all. No mobility strategy or policies Issues / Challenges Change in business processes from a product to a process oriented organization in 2008 comprehensive adaptions to the IT strategy necessary No company wide access to business data. Very limited sharing of data hinders collaboration of global teams (sales, production planning, marketing etc.) Increasing number of travellers over the years Outdated data in central locations due to synchronisation delays with offline data on laptops. Slows down reaction times on customer requests IBM CIO Club of Excellence

10 Global mobility and collaboration architecture Business requirements on communication and collaboration Target / Goal: Always keep central data up-to-date Access actual data from everywhere from any Rieter device Implementation of a globally accessible document management system and communication platform via the Internet Reduce mobile roaming cost through internal network usage Establish infrastructure architecture as a base for mobility software solutions Sales: Create first offers on customer sites and transmit data with low delays to central sales teams Service: Use mobile equipment by technicians for troubleshooting on customer sites and liaise with specialized engineers located in Winterthur online. Avoid expensive travelling of specialists Marketing: Use online product material with low update efforts instead of catalogue distribution Management: Company cockpits on mobile devices IBM CIO Club of Excellence

11 Global mobility and collaboration architecture communication and collaboration infrastructure Solution Equip all mobile devices with communication capabilities: WLAN, Video, Audio, GSM modem. Equip all devices with communication software. Define and implement mobile device policy Equip all locations with WLAN access points Implement global WAN architecture with appropriate performance Centralization of all data into central datacenter Implementation of a global collaboration platform Implementation of a global communication platform Implementation of a global IP telephony architecture based on Avaya (VoIP) IBM CIO Club of Excellence

12 Global mobility and collaboration architecture Present Status Implementation status and lessons learnt Mobile policy implemented. Global SIM card handling. Mobile device strategy fixed Apple products (ios) for smartphones and tablets as standard Necessary WAN performance implemented (bandwidth increase, WAN optimizers) All mobile devices for global mobility equipped and rolled out (1.500 laptops, 300 smartphones and tablets) Centralization of data into global datacenter ongoing Web enabled collaboration platform based on Lotus Connections (Quickr) Communication platform based on Lotus Sametime. Connectivity to third party federations planned Implementation of global IP telephony system based on Avaya (ongoing) Global infrastructure almost rolled out within 18 months IBM CIO Club of Excellence

13 Technical architecture Mobile telephony via WAN, PSTN access via central outbreak Online access of all applications 3G if necessary through local SIM cards to reduce roaming cost Internal communication via Lotus Notes products Central data storage in 2 datacenter Public facilities: - WLAN 3G PSTN VPN Avaya: - IP telephony Lotus Notes: - Quickr - Sametime - Connections - Mail All Rieter location: - WLAN - VPN connection - IP Phones (planned) All Mobile Devices: - SIM-Card - WLAN - Video - Audio - Avaya phone client IBM CIO Club of Excellence

14 Global mobility and collaboration architecture Lessons learnt and next steps Lessons learnt Users love the new devices, the performance and data access capabilities of the new infrastructure But they are suspicious on giving up the old offline solutions. Arguments: Cannot work in airplanes, too much roaming cost Change management required to replace old software solutions Clear strategy needs to be communicated well. Win stakeholders Next steps Finalization of infrastructure requirements Rollout IP telephony Implement federations with other messenger platforms Adding additional business value through new online software solutions Replace Notes databases through Notes Connections online capabilities BI online platform via SAP mobile platform (planned) IBM CIO Club of Excellence