Applied Integration Issues


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A Case Study of Lucent Technologies Company

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Applied Integration Issues

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