OC CIO Peer Group Breakfast E-Collaboration And, the role of Web 2.0 February 11, 2010 [email_address] www.peergroup.net
Constant Business Pressures <ul><li>Globalization </li></ul><ul><li>Innovation </li></ul><ul><li>Demographic Changes </li>...
<ul><li>Reduced Product Development Times </li></ul><ul><li>Shorter Quote-to-Cash Cycles </li></ul><ul><ul><li>Quick Respo...
[email_address] www.PeerGroup.net <ul><li>Materials Management (MRP) </li></ul><ul><li>Shop Floor Control </li></ul><ul><l...
[email_address] www.PeerGroup.net
Competitive Strategy [email_address] www.PeerGroup.net Best people often move on to other jobs despite the investment in t...
Objective: <ul><li>Cycle Time  = </li></ul>[email_address] www.PeerGroup.net
Objective: Cycle Time  =  Process Time
Assumptions <ul><li>Process </li></ul><ul><li>Applications & Tools </li></ul><ul><li>Infrastructure </li></ul>[email_addre...
Further Assumption <ul><li>Process (Requirements,business rules) </li></ul><ul><ul><li>Applications (Software) </li></ul><...
Realities <ul><li>Not Sequential </li></ul><ul><li>Inflexible Software </li></ul><ul><li>Time Consuming </li></ul><ul><li>...
Process Model [email_address] www.PeerGroup.net ERP Eng.. Order Factory Order Sales Order Purchase Order
Process Model [email_address] www.PeerGroup.net ERP Eng.. Order PLM Factory Order Sales Order Engineering Collaboration Ma...
21 st  Century Organization <ul><li>Withering Hierarchy </li></ul><ul><li>Teams </li></ul><ul><li>Empowerment* </li></ul><...
Workgroups <ul><li>Product Teams </li></ul><ul><li>Functional Teams </li></ul><ul><li>Task Forces </li></ul><ul><li>Cross ...
Workgroup Support Products <ul><li>Lotus Notes </li></ul><ul><li>Exchange/Outlook/Project </li></ul><ul><li>Sharepoint </l...
New Software Generation Appearing <ul><li>Object-Based (Flexible) </li></ul><ul><li>Platform Independent </li></ul><ul><li...
Software learns a lesson from hardware evolution [email_address] www.PeerGroup.net . Abstraction and encapsulation enables...
Web 2.0 Capabilities <ul><li>Conversation:  Blogs </li></ul><ul><li>Syndication:  RSS </li></ul><ul><li>Consensus:  Wikis ...
McKinsey & Co. [email_address] www.PeerGroup.net
Web 2.0 <ul><li>Facilitates…… </li></ul><ul><ul><ul><ul><li>Connections </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Relat...
The Rule:  Only place litter in bins with lids [email_address] www.PeerGroup.net
Perspective is context [email_address] www.PeerGroup.net
Process Model [email_address] www.PeerGroup.net ERP Eng.. Order PLM Factory Order Sales Order Engineering Collaboration Ma...
Growing Adoption Of Web 2.0  Source: Forrester Research
Web 2.0 at Work Source: CIO Web 2.0 Survey, 2008 Which of the following technologies are being offered to employees as cor...
[email_address] www.PeerGroup.net <ul><li>Electronic Marketing </li></ul><ul><ul><li>Information </li></ul></ul><ul><ul><l...
WWW .peergroup.net
WWW .peergroup.net
Stormhoek Vineyards <ul><li>Consumer Blogs (everyone’s a wine  expert) </li></ul><ul><li>Participative pairing </li></ul><...
Current Applications <ul><li>Blogs </li></ul><ul><ul><li>Internal Communication </li></ul></ul><ul><ul><li>Marketing/PR </...
Shift to Customer 2.0 <ul><li>Large businesses spend more on employee collaboration tools than customer-facing Web 2.0 </l...
EveryThing is Measurable [email_address] www.PeerGroup.net
Key Elements <ul><li>Re-engineer process </li></ul><ul><li>Communications network </li></ul><ul><li>Workflow software </li...
Readings Real Time ; McKenna ,  Regis Blur ; Davis, Stan; Meyer, Christopher Competitive Strategy ;   Porter, Michael  Usi...
[email_address] www.PeerGroup.net Thank You for Your Attention [email_address] www.peergroup.net
[email_address] www.PeerGroup.net
[email_address] www.PeerGroup.net “ When all is said and done .. More is said than done.”   Lou Holtz , Former Coach   Not...
The Challenge of Change <ul><li>“ It must be remembered that there is nothing more difficult to plan, more doubtful of suc...
<ul><li>“ It must be remembered that there is nothing more difficult to plan, more doubtful of success, nor more dangerous...
Networks for Networking <ul><li>Intranets </li></ul><ul><li>PLM </li></ul><ul><li>SCM Software </li></ul><ul><li>Exchange/...
Resulting Issues <ul><li>Process - BPR </li></ul><ul><ul><li>Limited Successes (Ford/Mazda) </li></ul></ul><ul><li>Applica...
Caterpillar [email_address] www.PeerGroup.net <ul><li>Benefits </li></ul><ul><li>Cycle times reduced from 60 days to 5-10 ...
Competitive Strategy [email_address] www.PeerGroup.net Customer Intimacy Product  Innovation Operational Excellence Produc...
[email_address] www.PeerGroup.net
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E-Collaboration with Web 2.0

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  • Specific examples of these trends
  • Adoption is increasing, especially at large companies
  • Overall, two-thirds (69 percent) of respondents offer some type of web 2.0 technology as corporate applications to their employees. Instant messaging (50 percent), wikis (30 percent) and blogs (23 percent) are the most commonly reported web 2.0 offerings with internal collaboration and employee communication/ knowledge management most frequently cited as the primary reasons for adoption.
  • Blogs Internal Communication Marketing/PR – mixed results Wikis Collaboration Knowledge Capture &amp; Management (cultural hurdles – large consulting cos.) Community Sites Customer Engagement – depends on the community, how well the company “gets” its customers Social Networks Company Directory on Steroids – talk more about both of these later
  • According to Forrester, while large businesses are spending more on employee collaboration tools than customer-facing Web 2.0 technologies right now, that trend is expected to reverse by next year. By 2013, investment in customer-facing Web 2.0 technology will dwarf spending on internal collaboration software by nearly a billion dollars.
  • E-Collaboration with Web 2.0

    1. 1. OC CIO Peer Group Breakfast E-Collaboration And, the role of Web 2.0 February 11, 2010 [email_address] www.peergroup.net
    2. 2. Constant Business Pressures <ul><li>Globalization </li></ul><ul><li>Innovation </li></ul><ul><li>Demographic Changes </li></ul><ul><li>Green </li></ul><ul><li>Cost </li></ul>[email_address] www.PeerGroup.net
    3. 3. <ul><li>Reduced Product Development Times </li></ul><ul><li>Shorter Quote-to-Cash Cycles </li></ul><ul><ul><li>Quick Response to Customer </li></ul></ul><ul><li>Globalization </li></ul><ul><li>Customization of Products & Services </li></ul><ul><li>Six-Sigma Quality Levels </li></ul><ul><li>CAD, CAE, FEA, Product Data Management (PDM), CIS </li></ul><ul><li>Order Management Systems, ERP, SCM/Capacity Simulation, Sales Force Automation, VMI </li></ul><ul><li>Internet, Wide Area Nets, EDI, E-Mail, Currency, Language Facilities, A/V Conferencing, Web 2.0 </li></ul><ul><li>Software Modules, Object-Oriented Development, Table-driven Configurators </li></ul><ul><li>CAD, Simulation, Design Rule Checking, Order Management </li></ul>[email_address] www.PeerGroup.net Business Drivers - IT Enablers
    4. 4. [email_address] www.PeerGroup.net <ul><li>Materials Management (MRP) </li></ul><ul><li>Shop Floor Control </li></ul><ul><li>CAD - CAE </li></ul><ul><li>Analytic Computation </li></ul><ul><li>Word Processing </li></ul><ul><li>Direct Customer Access </li></ul><ul><li>Product Configurators </li></ul><ul><li>Product Customization </li></ul><ul><li>Fast Response/JIT </li></ul><ul><li>EDI/E-Commerce </li></ul><ul><li>Supply Chain </li></ul><ul><li>Collaboration </li></ul>1960 - 1973 1973 - 1980s 1990-2000s Faster Ledgers ---- Direct Savings Operating Efficiencies ---- Indirect Savings Virtual Corporation ---- Growth <ul><li>Accounting/ Finance </li></ul><ul><li>Payroll </li></ul><ul><li>Sales Statistics </li></ul><ul><li>Cost Distribution </li></ul><ul><li>Inventory Accounting </li></ul>Applications Software Shift
    5. 5. [email_address] www.PeerGroup.net
    6. 6. Competitive Strategy [email_address] www.PeerGroup.net Best people often move on to other jobs despite the investment in training. Expertise is lost . Leading Companies point to the fact that revenue growth results from products that were recently introduced Continuous Improvement Customer Intimacy Product Innovation Operational Excellence Product Process People
    7. 7. Objective: <ul><li>Cycle Time = </li></ul>[email_address] www.PeerGroup.net
    8. 8. Objective: Cycle Time = Process Time
    9. 9. Assumptions <ul><li>Process </li></ul><ul><li>Applications & Tools </li></ul><ul><li>Infrastructure </li></ul>[email_address] www.PeerGroup.net
    10. 10. Further Assumption <ul><li>Process (Requirements,business rules) </li></ul><ul><ul><li>Applications (Software) </li></ul></ul><ul><ul><ul><li>Infrastructure (Platforms) </li></ul></ul></ul>[email_address] www.PeerGroup.net
    11. 11. Realities <ul><li>Not Sequential </li></ul><ul><li>Inflexible Software </li></ul><ul><li>Time Consuming </li></ul><ul><li>Lack of Standards </li></ul><ul><li>Sometimes it’s hard to set a rule </li></ul>[email_address] www.PeerGroup.net
    12. 12. Process Model [email_address] www.PeerGroup.net ERP Eng.. Order Factory Order Sales Order Purchase Order
    13. 13. Process Model [email_address] www.PeerGroup.net ERP Eng.. Order PLM Factory Order Sales Order Engineering Collaboration Manufacturing Purchase Order
    14. 14. 21 st Century Organization <ul><li>Withering Hierarchy </li></ul><ul><li>Teams </li></ul><ul><li>Empowerment* </li></ul><ul><li>Network-Based </li></ul><ul><li>* sometimes it’s O.K. to break the rule </li></ul>
    15. 15. Workgroups <ul><li>Product Teams </li></ul><ul><li>Functional Teams </li></ul><ul><li>Task Forces </li></ul><ul><li>Cross Functional Teams </li></ul><ul><li>Inter-company Teams </li></ul><ul><li>Industry Teams </li></ul>[email_address] www.PeerGroup.net
    16. 16. Workgroup Support Products <ul><li>Lotus Notes </li></ul><ul><li>Exchange/Outlook/Project </li></ul><ul><li>Sharepoint </li></ul><ul><li>Collabra </li></ul><ul><li>GroupWise </li></ul><ul><li>Blogs, Wikis, Social Networks </li></ul>[email_address] www.PeerGroup.net
    17. 17. New Software Generation Appearing <ul><li>Object-Based (Flexible) </li></ul><ul><li>Platform Independent </li></ul><ul><li>Standards compliant (TCP/IP, etc....) </li></ul><ul><li>Web 2.0 </li></ul>[email_address] www.PeerGroup.net
    18. 18. Software learns a lesson from hardware evolution [email_address] www.PeerGroup.net . Abstraction and encapsulation enables reuse of complex software capabilities OTI-94-G0025.a Hardware Software Primitive Functions Encapsulated Objects Subsystems Multi-Objects Object attributes methods Multi-Object O b j e c t Subsystem M u l t i - O b j e c t M u l t i - O b j e c t O b j e c t O b j e c t M u l t i - O b j e c t
    19. 19. Web 2.0 Capabilities <ul><li>Conversation: Blogs </li></ul><ul><li>Syndication: RSS </li></ul><ul><li>Consensus: Wikis </li></ul><ul><li>Sharing: Social bookmarking </li></ul><ul><li>Applications: Mashups </li></ul>WWW .peergroup.net
    20. 20. McKinsey & Co. [email_address] www.PeerGroup.net
    21. 21. Web 2.0 <ul><li>Facilitates…… </li></ul><ul><ul><ul><ul><li>Connections </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Relationships </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Context </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Helps Resolve Ambiguities </li></ul></ul></ul></ul>[email_address] www.PeerGroup.net
    22. 22. The Rule: Only place litter in bins with lids [email_address] www.PeerGroup.net
    23. 23. Perspective is context [email_address] www.PeerGroup.net
    24. 24. Process Model [email_address] www.PeerGroup.net ERP Eng.. Order PLM Factory Order Sales Order Engineering Collaboration Manufacturing Vendor Collaboration Manufacturing Purchase Order
    25. 25. Growing Adoption Of Web 2.0 Source: Forrester Research
    26. 26. Web 2.0 at Work Source: CIO Web 2.0 Survey, 2008 Which of the following technologies are being offered to employees as corporate applications? Percent of sample answering Instant messaging 50% Wikis 30% Blogs 23% RSS 18% Social networking 10% None of the above 31%
    27. 27. [email_address] www.PeerGroup.net <ul><li>Electronic Marketing </li></ul><ul><ul><li>Information </li></ul></ul><ul><ul><li>Literature </li></ul></ul><ul><ul><li>Samples </li></ul></ul><ul><li>Order Processing </li></ul><ul><ul><li>Order entry </li></ul></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>Agreements </li></ul></ul><ul><ul><li>Returns </li></ul></ul>Customer Account Management Customer Service Management <ul><li>Baldrige Award </li></ul><ul><li>People Empowerment </li></ul><ul><ul><li>Field Force/Teams </li></ul></ul>Customers Field Service Reps <ul><li>Re-engineered The Business Process </li></ul><ul><ul><li>$21 million annual savings </li></ul></ul><ul><ul><li>95% improvement in on-time delivery </li></ul></ul><ul><ul><li>60% reduction in sales office queries </li></ul></ul><ul><ul><li>72% reduction in product returns </li></ul></ul><ul><ul><li>78% reduction in cycle time (14:1) </li></ul></ul>“ The Customer Connection” Texas Instruments
    28. 28. WWW .peergroup.net
    29. 29. WWW .peergroup.net
    30. 30. Stormhoek Vineyards <ul><li>Consumer Blogs (everyone’s a wine expert) </li></ul><ul><li>Participative pairing </li></ul><ul><li>Wine Clubs </li></ul><ul><li>Subscription to wine publications </li></ul><ul><li>Sales have tripled since 2005 </li></ul>WWW .peergroup.net Baseline…June 14, 2007
    31. 31. Current Applications <ul><li>Blogs </li></ul><ul><ul><li>Internal Communication </li></ul></ul><ul><ul><li>Marketing/PR </li></ul></ul><ul><li>Wikis </li></ul><ul><ul><li>Collaboration </li></ul></ul><ul><ul><li>Knowledge Capture & Management </li></ul></ul><ul><li>Community Sites </li></ul><ul><ul><li>Marketing - Customer Engagement </li></ul></ul><ul><li>Social Networks </li></ul><ul><ul><li>Company Directory on Steroids </li></ul></ul><ul><li>Benefits: Attracting and retaining smart young workers </li></ul>
    32. 32. Shift to Customer 2.0 <ul><li>Large businesses spend more on employee collaboration tools than customer-facing Web 2.0 </li></ul><ul><li>That trend will reverse by next year </li></ul><ul><li>By 2013, companies will spend nearly a billion dollars more on customer-facing Web 2.0 than on internal collaboration </li></ul><ul><li>Is there a payoff for this $1B investment? </li></ul>Source: Forrester Research
    33. 33. EveryThing is Measurable [email_address] www.PeerGroup.net
    34. 34. Key Elements <ul><li>Re-engineer process </li></ul><ul><li>Communications network </li></ul><ul><li>Workflow software </li></ul><ul><li>Data Base discipline </li></ul><ul><li>Web 2.0 utilization </li></ul>[email_address] www.PeerGroup.net
    35. 35. Readings Real Time ; McKenna , Regis Blur ; Davis, Stan; Meyer, Christopher Competitive Strategy ; Porter, Michael Using Technology to Improve Workforce Collaboration ; McKinsey Digital
    36. 36. [email_address] www.PeerGroup.net Thank You for Your Attention [email_address] www.peergroup.net
    37. 37. [email_address] www.PeerGroup.net
    38. 38. [email_address] www.PeerGroup.net “ When all is said and done .. More is said than done.” Lou Holtz , Former Coach Notre Dame Fighting Irish
    39. 39. The Challenge of Change <ul><li>“ It must be remembered that there is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage, than the creation of a new System. For the initiator has the enmity of all who would profit by the preservation of the old institu- tions and merely lukewarm defenders in those who would gain by the new ones.” </li></ul>[email_address] www.PeerGroup.net
    40. 40. <ul><li>“ It must be remembered that there is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage, than the creation of a new System. For the initiator has the enmity of all who would profit by the preservation of the old institutions and merely lukewarm defenders in those who would gain by the new ones.” </li></ul><ul><li>Maciavelli 1513 </li></ul>[email_address] www.PeerGroup.net
    41. 41. Networks for Networking <ul><li>Intranets </li></ul><ul><li>PLM </li></ul><ul><li>SCM Software </li></ul><ul><li>Exchange/Notes </li></ul><ul><li>Self Serve </li></ul><ul><li>Blogs </li></ul><ul><li>Wikis </li></ul><ul><li>EDI </li></ul><ul><li>EFT </li></ul><ul><li>Industry Intranets </li></ul><ul><ul><li>textiles </li></ul></ul><ul><li>Trade Exchanges </li></ul><ul><li>E-Commerce </li></ul><ul><li>Social Networks </li></ul>[email_address] www.PeerGroup.net
    42. 42. Resulting Issues <ul><li>Process - BPR </li></ul><ul><ul><li>Limited Successes (Ford/Mazda) </li></ul></ul><ul><li>Applications </li></ul><ul><ul><li>Best of Breed Vs. Integrated Set </li></ul></ul><ul><ul><li>Tailoring/custom development </li></ul></ul><ul><li>Infrastructure </li></ul><ul><ul><li>Diversity </li></ul></ul>[email_address] www.PeerGroup.net
    43. 43. Caterpillar [email_address] www.PeerGroup.net <ul><li>Benefits </li></ul><ul><li>Cycle times reduced from 60 days to 5-10 days </li></ul><ul><li>Fewer people in the process </li></ul><ul><li>Improved accuracy </li></ul><ul><li>Business Need </li></ul><ul><li>Simplify the ordering Process </li></ul><ul><li>Reduce cycle times </li></ul>Dealers & OEMs <ul><li>Data entry screen at customer location </li></ul><ul><li>High level English language part names </li></ul><ul><li>Prompts for features, modules, and options </li></ul><ul><li>Software and data base explode order into low level, complex details such as numbering, revision levels, and codes </li></ul><ul><li>Validates for customer that order will fit current configuration </li></ul>
    44. 44. Competitive Strategy [email_address] www.PeerGroup.net Customer Intimacy Product Innovation Operational Excellence Product ***** ********* ** Process ******** ** ********* People ********* ***** *****
    45. 45. [email_address] www.PeerGroup.net
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