Driving Innovation, Sustainability and Performance @ ARC's 2011 Industry Forum

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Driving Innovation, Sustainability and Performance @ ARC's 2011 Industry Forum by Andy Chatha.
Today’s Business Drivers
Uncertainty
Security
Scarce Resources
Need to Go Green
Global Competition
Changing Workforce
Increasing Regulations
Emerging Smart Grid
Easy IT Solutions
Today’s business drivers demand agility

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Driving Innovation, Sustainability and Performance @ ARC's 2011 Industry Forum

  1. 1. Driving Innovation, Sustainability and Performance Through Collaborative Value Networks Andy Chatha President ARC Advisory Group AChatha@ARCweb.com
  2. 2. 2 © ARC Advisory Group ARC World Industry Forum Programs 1. Relentless Pursuit of Process Safety, Energy Optimization, and Operational Excellence 2. Anti-Counterfeiting and Brand Protection Solutions 3. Sustainability and Production Management Solutions 4. Improve Performance by Integrating Design and Production 5. Project Performance Management 2.0: Managing Risk, Interoperability, and Collaboration 6. Asset Performance Management 2.0: Optimizing Operations and Maintenance 7. Enterprise Mobility Solutions 8. Smart Energy Management Solutions 9. Beyond the Perfect Order Metric
  3. 3. 3 © ARC Advisory Group Today’s Business Drivers  Uncertainty  Security  Scarce Resources  Need to Go Green  Global Competition  Changing Workforce  Increasing Regulations  Emerging Smart Grid  Easy IT Solutions Today’s business drivers demand agility
  4. 4. 4 © ARC Advisory Group Easy IT Solutions are Proliferating  Search  Social Networks  Smart Phones  GPS/Location-based services  Connected Devices/Internet of Things  BI or Business Analytics  Web Apps  Virtual PCs  Video  eBook Cloud computing hides complexity from the user
  5. 5. 5 © ARC Advisory Group Two Quotes From P&G CEO Bob McDonald  On Digitizing P&G “With digitization, our goal is to standardize, automate and integrate systems and data so we can create a real-time operating and decision-making environment. We want P&G to be the most technology-enabled company in the world.”  On Real-time Data “We are targeting a 20-25% reduction in some spending areas and we are looking for a sevenfold increase in real-time data.”
  6. 6. 6 © ARC Advisory Group New Solutions Enable New Business Models Greater consumer connectivity, greater knowledge & bargaining power, mobility, collaborative buying, etc. Crowdsourcing, co- production, rapid innovation, customization, 3rd party intermediaries Complexity increases in every network and every dimension Virtualization, PLM-MES integration, etc Outsourcing, collaboration, etc
  7. 7. 7 © ARC Advisory Group ARC CMM Model Emphasizes the Plant as a Node in a Value Network External Business Customers Production Automation Suppliers CPM Logistics PLM/D CRMSRM PLM/S ERP Internal Value Chain Dynamics Drive Manufacturing Performance ARC CMM Collaborative Manufacturing Management
  8. 8. 8 © ARC Advisory Group Enterprise Value Network Value is Created through the DESIGN-MAKE-DELIVER Network Production Network Logistics Distribution Purchasing Service Sales, Retail Customers Supplier Network Engineering Construction Planning Today manufacturers operate within one or more networks of companies that work together to provide goods and services to end consumers Design
  9. 9. 9 © ARC Advisory Group Design Collaborative Value Network (CVN) Focuses on Activities Throughout the Value Network Production Network Logistics Distribution Purchasing Service Sales, Retail Customers Supplier Network Engineering Construction Plant & Equipment Product & Plant In order to compete effectively, better IT tools are being utilized throughout the value network to speed and optimize innovation, production, and delivery of goods and services Today manufacturers operate within one or more networks of companies that work together to provide goods and services to end consumers
  10. 10. 10 © ARC Advisory Group Enterprise CVN Demands Common Standards & Processes Complementary Data Models Compatible Technology Consistent Processes Shared Goals Goals People & Processes Technology Information Goals People & Processes Technology Information Department X Company X Department Y Company Y Common Standards & Processes are Needed at All Levels!
  11. 11. 11 © ARC Advisory Group CVN Complements CMM Helpful to Visualize Lifecycle and Value Network Issues
  12. 12. 12 © ARC Advisory Group • Operating Excellence • Enterprise Visibility & Control • Quality, Flexibility • Efficiency & Cost Control • Asset Performance • Energy, Resource, Mgt • Risk Mgt & Safety Execution • Dynamic Value Creation • Collaboration • Business Innovation • Product Innovation • Mfg Process Innovation • Marketing Innovation • Governance & Compliance • REACH • Emissions Mgt • Carbon Tracking • 21CFR part 11 • MTSA • etc Compliance Drive Performance Three Business Imperatives for a Changing Marketplace Transformative Innovation is Required to Achieve Highest Enterprise Performance Optimize Performance Extend & Transform Current Business Support Corporate Citizenship Be Proactive Be Responsible Be Effective
  13. 13. 13 © ARC Advisory Group Thank You. For more information, contact the author at xxx@arcweb.com or visit our web pages at www.arcweb.com
  14. 14. 14 © ARC Advisory Group Acronyms Used in This Presentation AIM Asset Information Management ALM Asset Lifecycle Management CMM Collaborative Management Model CPAS Collaborative Process Automation Systems CVN Collaborative Value Network DCS Distributed Control Systems ERP Enterprise Resource Planning MES Manufacturing Execution System OpX Operational Excellence KPI Key Performance Indicators PLM Product Lifecycle Management SCM Supply Chain Management SOA Services Oriented Architecture RPM Real-time Performance Management A complete list is available on ARC’s website: ARCweb.com

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