Applied Integration Issues
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Applied Integration Issues

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A Case Study of Lucent Technologies Company

A Case Study of Lucent Technologies Company

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Applied Integration Issues Applied Integration Issues Presentation Transcript

  • Presenters: Khalid Atiq Muhammad Qaiser Raheel Ahmed Siddiqui A Case Study of Lucent Technologies Company
  • AGENDA
    • Company Overview
    • Current Integration Issues
    • Current Supply Chain process
    • Lucent’s Strength and Weaknesses
    • What Lucent Want to Achieve
    • 3 Possible upgrades to solve the issue
    • Advantages and Disadvantages of these upgrades
  • Introduction LUCENT TECHNOLOGIES
    • Designs and delivers networks for communication service providers
    • High bandwidth, core optical and multi-service data networks
    • More than half of the worlds phone calls are made over lucent remote access equipment (30 million call per day)
    • Employs 30,200 people worldwide
  • Intro….
    • Revenue of US$9.4 billion in the year 2005
    • Major Markets includes North America, China, Japan and Europe
    • Headquarters in New Jersey, USA
    • Research and development is Supported by Bell Laboratories
    • Partners include Accenture, Hewlett-Packard, IBM and Microsoft.
  • Lucent’s Supply Chain
    • Lucent has close relationships with suppliers to provide the materials and services at affordable price
    • Relationship with suppliers is the key strategy for success
    • Being a Lucent supplier is much more than being a reliable source for quality material and services at competitive price.
    • In January 2001, Supply Chain Network (SCN) was formed to knit all supply chain functions through lucent into a single organisation
    • One of the significant outcome of SCN is the Supplier relationship program
    • The goal of the program is to bring Lucent and its suppliers closer for mutual benefits
    • Currently Lucent ERP system maintains all logistics information
  • Lucent Supply Chain Diagram FF Support: Sales & Marketing, Finance, Corporate Social Responsibility Plant 1 Plant 2 Plant 3 3PL Contract Manufacturer DC DC Distributor 3PL FF Suppliers Customers (3PL=third Party Logistics Provider; FF=Freight Forwarder; DC=Distribution Center)
  • Lucent’s Strengths
    • Bell Laboratories the major investment partner in the research and development of communication equipment
    • Restructured its global supply chain network by launching Lucent Worldwide services
    • 20,000 professionals to provide network designed engineering, installing, managing, monitoring and repairing most sophisticated networks.
    • Focuses on world leading wire line service providers, including long distance carriers, local service providers, public telecommunication providers, emerging service providers and backbone builders
  • Lucent’s weaknesses
    • Lack of global communication and transport system
    • Problem in resolving reverse logistics
    • Current system developed by Citadel requires different districts to be served by different logistic systems
    • Comparatively Longer delivery time (6 Weeks)
    • Don’t have well integrated system
  • Current Integration Issues
    • Communication System is relatively weak
    • Difficult to link data between regions of the world
    • Each region uses different software for its logistics
  • Lucent’s Choices
    • Vice President of Lucent Supply Chain network gave 3 options to resolve their crisis
  • Three possible Upgrades to solve integration issues Customers, suppliers dispersed geographically
  • Electronic Data Interchange Solution
    • Direct transfer of data between lucent, customers, suppliers and other partners
    • Purchase orders, invoices converted into standard messages as required by the interface
    • Transmission of data is very quick
    • The protocol among communication devices has to be same
    • We have to use direct link or third-party network
  • Usage of EDI
    • Customers use EDI to transmit orders and other information to lucent regional logistics info centers that linked to lucent ERP system.
    • Purchase orders are transmitted directly and accurately from ERP system to vendor
  • Diagram-EDI
  • Solution-II, XML Based
    • Extensible markup language, structure is similar to HTML
    • Customers placed orders on website
    • Lucent ERP can have interface to receive XML input.
    • Purchase or delivery orders can be transfer to suppliers in XML format
    • XML and internet replace the use of EDI
    • This is a carefully-formatted string which is often found at the very beginning of XML documents. Here is an example:
  • B2B Portal Solution
    • Portal means gateway/entrance
    • Technically speaking :
          • A website considered as an entry point to other websites, often by being or providing access to a search engine.
    • A web portal
        • presents information from diverse sources in a unified way. Apart from the standard search engine feature, web portals offer other services such as e-mail, news, stock prices, information, and entertainment. Portals provide a way for enterprises to provide a consistent look and feel with access control and procedures for multiple applications, which otherwise would have been different entities altogether. Examples of a web portal are MSN , Yahoo ! , AOL and iGoogle .
  • Schematic
  • How it can work in Lucent
    • They have to build business to business portal, lucent.net
    • It will use internet an e-commerce technology
    • Lucent requires two portals
      • Business portal
        • Links manufacturers, assemblers and logistics partners
        • Every partner will have real-time information
        • Internal ERP data can be open up to suppliers etc with same access rights as their employees.
      • Customer portal
        • Market place- online product catalogue for customers and suppliers
        • Online tracking
        • Customer support
  • EDI
    • Advantages
    • Quick Access to information
    • Reduced Paperwork
    • Better communication
    • Increased Productivity
    • Improved Tracing,Expending,Accuracy and Billing
  • EDI
    • Drawbacks
    • Expensive to Implement
    • Difficult to adopt
    • Lack of standardization
  • XML
    • Advantages
    • Has all benefits of EDI
    • Cheaper (requires free web broswer,500$ computer and $15/ m for internet)
    • Compatible with ERP Systems
    • Email-like document Flexibility
  • XML
    • Disadvantages
    • No single Standard
    • Security Concerns
    • Yet to prove in large –scale environment
  • B2B
    • Customer Portal
    • Automate order processing online
    • Cost Saving
    • Tracking
    • Feedback
  • B2B
    • Business Portal
    • Real Time Data access (forecasting, inventory and purchase orders)
    • Consolidated Access Points
  • B2B
    • Weaknesses
    • Co-operative environment essential (if one link fails, the entire chain will become non-operational)
    • Lack of e-skills
    • Unsupportive company culture
  • Conclusion
    • use of e-commerce
    • Alternative, redesign lucent supply chain e.g. selling or less profitable units
    • which option will assist strategically!
    • Q & A