The ‘New’ CIO Leader: Setting the agenda, delivering results

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    The ‘New’ CIO Leader: Setting the agenda, delivering results - Presentation Transcript

    1. Terry S. Kline Process Information Officer – Global Product Development & Chief Information Officer – Asia Pacific February 8, 2007 0
      • General Motors Complexity
      • The IS&S Organization
      • IS&S / Business Strategy Alignment
      • Process Information Officer (PIO)Roles
      • Chief Information Officer (CIO) Roles
      • Driving Transformation and Innovation
      • Transformation of GM to a Global Corporation
      • Challenges and Opportunities with Globalization
      • Role of Information Technology
      1 Outline
    2. Global Manufacturing Facilities Muncie, IN Bay City, MI Defiance, OH Eisenach, Germany Mansfield, OH Fort Wayne, IN Szentgotthard, Hungary Marion, IN Soedertaelje, Sweden Gothenburg, Sweden Mogi das Cruzes, Brazil Oklahoma City, OK Port Melbourne, Australia Liuzhou, China Aspern, Austria Arlington, TX Boryong, Korea JV Bowling Green, KY Toledo, OH Linden, NJ Grand Rapids, MI Bedford, IN Grand Blanc, MI Romulus, MI Eng Wixom, MI Willow Run, MI Pittsburgh, PA Fredericksburg, VA Muncie, IN Ramos Arizpe 1, Mexico Ramos Arizpe, Mexico Ramos Arizpe, Mexico Azambuja, Portugal AMT South Lyon, MI Warren, MI Detroit-Hamtramck, MI Livonia, MI Orion, MI STSW, MI Messena, NY Wilmington, DE Bekasi Indonesia Janesville 1 & 3, WI Strasbourg, France Windsor, ONT Ramos Arizpe 2, Mexico 181 Plants in 33 Countries 2 Elizabeth, Australia Elizabeth, South Australia Lordstown, OH Lordstown, OH Baltimore, MD Baltimore, MD Zaragoza, Spain Zaragoza, Spain Ellesmere Port, UK Ellesmere Port, UK Trollhättan, Sweden Trollhättan, Sweden Mishawaka, IN 3P Barcelona, Spain 3P Steyr, Graz, Austria 3P ZAO Avtotor Kaliningrad, Russia 3P AvtoVAZ, Togliatti, Russia JV CJSC, Zaporozhzhye, Ukraine 3P Halol, India CKD Arica, Chile CKD Nairobi, Kenya CKD JV Valencia, Venezuela CKD NUMMI-Fremont, CA JV NUMMI-Fremont, CA JV Moraine, OH Moraine, OH JV Gliwice, Poland Gliwice, Poland Biala (Bielsko), Poland JV Tychy, Poland JV Changwon, S. Korea JV Changwon, S. Korea JV Changwon, S. Korea JV Shanghai, China JV Shanghai, China JV Liuzhou, China JV Antwerp, Belgium Antwerp, Belgium Flint, MI N&S Flint 1 & 3, MI Flint, MI Port Elizabeth 1, South Africa CKD Port Elizabeth 2, South Africa CKD Yantai/Dong Yue, China JV Yanati, China JV Yantai, China JV Qingdao, China JV Qingdao, China JV Parma, OH Parma, OH Doraville, GA Doraville, GA Saginaw MCO, MI Saginaw , MI Pontiac, MI Pontiac Assembly, MI Lansing Delta Twp, MI Lansing, MI Lansing Craft Center, MI Lansing Grand River, MI Lansing Tooling, MI Lansing Regional. MI Lansing C, MI Lansing M, MI Oshawa Truck, ONT Oshawa 1 & 2, ONT Oshawa, ONT CAMI-Ingersoll, ONT JV CAMI, ONT JV Renault, Batilly, France 3P Shenyang 2, China Shenyang 1, China JV Bochum, Germany Bochum, Germany Bochum, Germany Fairfax, KS Fairfax, KS Wentzville, MO Wentzville, MO Spring Hill, TN Spring Hill, TN Spring Hill 1 & 2, TN Kaiserslautern, Germany Kaiserslautern, Germany IBC, Luton, UK Luton IBC, UK Rüsselsheim, Germany Rüsselsheim, Germany Rüsselsheim, Germany Heuliez, Cerizay, France 3P 6 October City, Egypt CKD JV Bogota, Colombia CKD JV Quito, Ecuador CKD JV Shreveport, LA Shreveport, LA Indianapolis, IN Indianapolis, IN Rosario, Argentina Rosario, Argentina Rosario, Argentina JV Silao, Mexico Silao, Mexico Silao, Mexico San Yi, Taiwan 3P Rayong, Thailand Rayong, Thailand Gravatai, Brazil Gravatai, Brazil Hanoi, Vietnam CKD JV Assembly Die & Stamping Powertrain Complete Knock Down (CKD) Joint Venture (JV) 3 rd Party (3P) Not Currently Building Approved Future Plant 8 49 50 77 7 10 38 12 TOTAL = 181 Bupyeong 1 & 2, S.Korea JV Bupyeong, S. Korea JV Bupyeong, S. Korea JV Bupyeong, S. Korea 3P Sao Jose dos Campos - S10, Brazil Sao José dos Campos Trans, Brazil Sao Jose dos Campos, Brazil Sao José dos Campos Fam I&II, Brazil Sao Jose dos Campos - MVA, Brazil Sao Caetano do Sul, Brazil Sao Caetano do Sul, Brazil Sao Caetano do Sul, Brazil Port Quasim, Pakistan 3P San Luis Potosi, Mexico San Luis Potosi, Mexico Toluca, Mexico Toluca, Mexico Gunsan, S. Korea JV Gunsan, S. Korea JV Gunsan, Korea JV Kairouan, Tunisia CKD 3P Lagos, Nigeria CKD 3P St. Catharines-Ontario St., ONT St. Catharines-Glendale, ONT Tonawanda 2, NY Tonawanda 1, NY Shanghai North, China JV Shanghai South, China JV Wuling East Liuzhou, China JV Wuling West Liuzhou, China JV
    3. GSSM is a complex business 3 43+ National Sales Offices Regionally Specific Market Dynamics Approx. 140 Vehicle Products Over 25 Marketing Brands Over 600,000 Aftermarket Parts & Accessories Over 60 Million Active Customers Over 50 Languages 24 Time Zones Numerous Country Specific Import and Privacy Laws 108 Level 3 Business Processes 16,700 Retail Outlets 70 Parts Depots Approximately 96 Call Center Operations Business Resource Center Roadside Assistance GM BuyPower Customer Assistance Marketing Support Dealer Support Awareness Consideration Shop Buy Use Refer Repurchase Start Technical Assistance Parts Assistance Telematics (e.g., OnStar, ChevyStar) GMAC 340K Contacts / Day 12K Agents & Managers Interaction Customers Products
    4. GPSC Global Complexity 4 $7.4B Logistics / $13 B Indirect M&E Spend 160,000 Total Part Numbers 15,000- 20,000 New Parts 3,200 Suppliers $86 Billion in Direct Material Purchases Managed by 4,000 Employees in 40 Countries Annually 9.3M Vehicles via 132 Vehicle DCs to 19K Dealers Daily 82 Tons of Parts, 8600 Inbound Trucks to 176 Plants Utilize 340 Sea Ports, 667 Logistics Service Providers
    5. Warren, USA Los Angeles, USA Trollhättan, Sweden Gothenburg, Sweden Rüsselsheim, Germany Bupyong, South Korea São Paulo, Brazil Pontiac, USA Toluca, Mexico Bangalore, India Port Elizabeth, South Africa Indianapolis, USA Shanghai, China Melbourne, Australia Compact Cross Over Oshawa, Canada Coventry, England Luxury RWD Fujisawa, Japan Global Product Development Diversity 5 Architecture Development Teams (ADT) & Global Design Centers (GDC) Drive Commonality & Architecture Compliance 15 Countries - 12 Brands - 9 Time Zones - 28000+ Managed Workstations – 19 Engineering / Design Centers Small Vehicle RWD Vehicle Midsize Vehicle Compact Vehicle
    6. 6 Global Process Leaders Business Unit Chief Information Officers NA President GME President AP President LAAM President GM CIO Szygenda CIO CIO CIO CIO GM CEO R. Wagoner Process Information Officers Product Development Manufacturing & Quality Business Services GPSC Finance HR Legal Communications Powertrain Powertrain Chief Systems & Technology Officer Services Information Officer Chief Strategy Officer
      • IT Business
      • Management
      • Finance
      • HR
      • Purchasing
      • Legal
      • Planning
      • Communications
      GSSM Product Development Manufacturing Quality GPSC GSSM IS&S Global Organization Chart
    7. The Business is Changing
      • Globalizing to Drive Business Performance
      • - Dedicated Horizontal Process Officers
      • - Strengthening the Horizontal is Key to Globalization and
      • Performance Improvement Plans (GPD Footprint Alignment,
      • Supplier Footprint Optimization…)
      • - Shift from Regional to Global (Horizontal) Leader One
      • Addressing Emerging Markets and Global Growth -- Asia, Middle East, Africa, Russia ….
      • Driving to Structural Cost Reduction Objective
        • - Leverage GM’s scale
        • - Common processes and systems
        • - Tighter integration with Customers, Suppliers, Dealers
      7
    8. 8 Reinventing Charles Kettering: If you have always done it that way, it is probably wrong.
        • We have a unique opportunity to participate in the
        • rebirth and transformation of General Motors.
        • We are truly reinventing ourselves and how we will
        • work in the new world.
        • IS&S is key to the rebirth and transformation.
        • Things that come too easily, just as easily Go! This is
        • going to be hard work.
    9. 9 PIO / CIO Roles GMLAAM GMAP GME GMNA Global Functions Solution Delivery Process Strategy, Standards, Solutions Single Integrated Plan “ IT Broker”, Single Point Representing Region
        • “ Big Rules”
        • CIO is responsible for total IS&S integrated accountability for the business.
        • CIO ensures operations meet business needs for business continuity, SOX,
        • regulations, etc.
        • PIOs own development, deployment and sustaining of all applications.
        • PIOs and the SIO own all Global Service Contracts.
        • Horizontal cost will become primary focus; we will manage Global Service
        • Contracts horizontally.
      Global Computing & Telecommunications Global Business Services Global Purchasing Supply Chain Global Sales, Service & Marketing Global Product Development Global Manufacturing & Quality
    10. 10 IS&S is Changing to Align with the Business
      • Third Generation
      • 2006 
      • Further implement common improved GM business processes and systems
      • Improved pricing and quality
      • Further optimize competition among IT suppliers
      • Require common IT processes to be followed by all IT suppliers and IS&S employees
      • Increased standardization to implement more robust processes
      • Key IS&S Implications
      • Strengthening the Horizontal Organization in IS&S to align with Business
      • Strengthening Financial Tracking on the Horizontal
      • Global Service Contracts (GSCs) for all IT services managed by PIO’s and SIO
      • Standardized work performed by IS&S employees and suppliers
      • Local/sector requirements limited to regulatory and business model specifics
      Enterprise Management IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier
    11. 1988 1987 1990 1992 1994 1996 1998 UG & CGS Unigraphic… Single ”core” system CGS, CADAM/ CATIA, and UG 100% Vehicle Programs in iMAN iMAN Begins Last Seat of CGS 2000 2001 Collaboration 2007+ 2002 2003 2004 2005 Global Status & Timing 26 CAD/CAM SYSTEMS Converge Car Engineering Merge Car/Truck & Tech Center Engineering Globalize Engineering Global ADTs Converge Powertrain with Product Development Virtual Vehicle Development Technology Innovation to Drive Globalization Product Vision Globalize Design Center 2006 Drive Global Vehicle Development Process GDM / SHERPA Our GPD Globalization Journey Continues to Drive Virtual Vehicle Development & Globalization 12
    12. Integrated data, applications and processes
        • Global data management
        • and access
        • From 700 users at 2
        • sites in 2 countries in
        • 1998 to over 28,000
        • Teamcenter users at
        • 29 sites in 15 countries
        • today
        • Globally synchronizing
        • 10,000+ TeamCenter
        • items a day
      Global Product Data Management 13
    13. < 10 Items per Day 10-19 Items per Day 20-49 Items per Day 50-99 Items per Day 100-199 Items per Day > 200 Items per Day WVEC PVEC 2004: Nineteen GM sites and ten Supplier/JV sites are using Teamcenter Automotive Edition (TcAE) in production All sites are sharing data using TcAE Multi-Site Globally Synchronizing 10,000+ items a Day Saab Opel GM Teamcenter Engineering Global Product Development Data Highway 14 GM Daewoo PATAC Isuzu Suzuki GMPT MFD Ricardo JCI GM do Brazil Holden GM TCI NACG MFG LGR Lordstown Doraville FCA Lotus Toluca Oshawa
    14. 16 Countries United States Canada Mexico Brazil Great Britain Germany Sweden France Italy Austria South Korea India China Japan Australia South Africa 10 Time Zones GMT GMT + 1 GMT + 5.5 GMT + 8 GMT + 9 GMT + 11 GMT - 2 GMT - 5 GMT - 6 GMT - 8 105 Possible Applications Dependencies 2 – 3 Waves (Weekends) 23 sites Multi Vendor Support Environment 16730 managed seats 040227 v1.1 Integrate with versions, Synchronous Events, Platform Standards Goal: Zero LEH GM, JV’s, Suppliers 3 OS Platforms HPUX Sun Solaris Windows Twice a year Global Product Development Blockpoint 15 30 Roll Calls Yantai Bodyshop Corp. DMAX Ltd. ISPOL-IMG Holdings, B.V. 20 % 14.9 % 42.1 % 21 % 12 % 60 % 40 % 10 % GM Avto VAZ (Russia) Wuling Automobile Company Brilliance Jinbei Automobile Co. Ltd. 50 % 50 % 50 % 50 % 15.9 % 34 % 50 % 50 % 50 % 41.5 % 50.1 % 50 % 41.5 % 50 % 50 % 50 % 25 % 25 %
    15. 16 Outsourcing Journey at General Motors First Generation 1984-1996 Second Generation 1996-2003 Third Generation 2003  Common Enterprise Management Processes IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier IT Supplier
    16. 17 3 rd Generation Outsourcing Model
      • 3 rd Generation
      • 2004 >
      • Global contracts
      • Small number of suppliers providing services as an integrated team
      • Thin-layer model
      • Standardized work based on industry practices
      • 2 nd Generation
      • 1996 > 2004
      • Contracting done regionally
      • Moving towards standardized work
      • One dominant vendor (EDS)
      • Numerous other vendors introduced with small to medium size contracts
      • 1 st Generation
      • 1984 > 1996
      • No contracts
      • Little standardized work
      • All service performed by EDS
      - - -
    17. 18 Global Service Contracts Have Been Put In Place Sales & Marketing Systems Dealer Systems Service & Parts Systems Integration Management Sales, Service & Marketing CAD & Visualization Systems CAE & CAT Systems Electrical & Controls Systems Business & Planning Systems Product Development Real-time plant floor systems Non-real-time manufacturing systems Quality systems Manufacturing & Quality Order Fulfillment Systems Purchasing Systems Production Control & Logistics System WWP & OTD Human Resource and Corp. Staff Systems Finance Systems Business Services Middleware Systems and IS&S Tools Application Integration Management Application Management GM OnLine Engineering & Design Workstations Plant Floor PC Operations Mainframe Operations Enterprise-Wide Application Integration Management Enterprise-Wide Infrastructure Integration Management Server Operations WAN, MANs, CAN, Video Voice (with cellular) LANs & Stations Services Plant Floor Network Operations OnStar System Integration Management Infrastructure Management Purchasing Integration Management Supplemental Services Other Services SAP Integration Management Integration Management Integration Management Integration Management EDI OnStar Common Applications Workstations Servers Networks Infrastructure Integration Management Infrastructure Integration Management Integration Management
    18. 19 Thin-Layer, Multi-Supplier Model Integration Mgt Supplier Performing Supplier Performing Supplier Performing Supplier PD Integration Mgt Supplier Integration Mgt Supplier SSM Integration Mgt Supplier Performing Supplier Performing Supplier Performing Supplier Performing Supplier Performing Supplier Performing Supplier GM IS&S Application Management Infrastructure Management
    19. 20 Role of Information Technology
        • Anticipate business requirements (stay off the critical path)
        • Shadow the business organization
        • Be linked into the business
        • IS&S Strategy is an enabler of the Business Strategy
        • Know the business (the PIO role)
        • Integrate the process threads; the one organization
        • that sees the whole company (CIO role)
        • Business leaders need to support and drive the
        • IS&S new investment (Portfolio Process).
        • Drive transformation and innovation
        • Cross-functional process improvements are
        • critical
    20. 21 Globalization Challenges
        • Suppliers are not naturally organized to support
        • global contracts
        • Working Global is Hard (Time Zones, Travel, etc)
        • Rules of Engagement need to be established
        • P&L -> Country -> Regional
        • Working Global is not natural for most suppliers
        • Globalization does not mean centralization
        • One common Bill of Information Technology is an
        • enabler
    21. 22 To achieve our objectives and enhance our competitive positions, we will launch six “Innovation Big Ideas” “ Establish Next Generation Collaborative Platform” “ Develop an Innovation Scouting system” “ Enhance our lead in CAE capability in the Industry” “ Establish Industry leadership in ECS technology for next generation “Networked Car” “ Deploy knowledge management & advanced visualization to accelerate VDP and drive re-use” “ Deploy a scalable technical infrastructure & advanced computing capability”
    22. 24 Summary
        • Keeping the place running has to be routine,
        • information technology operations has to be
        • a given
        • Know the Business
        • Support the business strategy
        • Organization linkage
        • Anticipate the needs
        • Drive innovation by working with suppliers
    23. 25 ONE LOBAL TEAM G Questions?

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