2. Agenda
10:30 – 10:40 Introductions & Scope Review
10:40 - 11:30 Understand Horton’s Go-to-Market approach and
competitor / customer environment
11:30 – 11:50 Highlight key areas of opportunity and pain points in
the business
11:50 – 12:00 Wrap up and next steps
3. Project Objectives and Scope
Evaluate company’s investment and effectiveness in leveraging Oracle
EBS in supporting business goals and objectives
Evaluate People, Process and Technology against industry best
practices
Document significant gaps and provide process improvement and
solution recommendations
Establish capability roadmap and business case to support
recommendations
Mary Cotch, Director of IT
OBJECTIVES
EXECUTIVE
SPONSORS
TEAM
All core business processes using Oracle as their backbone application
Other processes which ultimately drive processes in Oracle or use
Oracle as a source of data
Management information and business analytics supporting those
processes
BUSINESS
FUNCTIONS
CFO
Director IT
Company management and professionals from business units and IT
participated in workshops
Services Firm, Functional Lead and Technical Lead
3
4. Discussion to help us understand you
Understand your ‘go to market’ strategy or ‘Value
Proposition’
Do a rudimentary competitor / customer mapping
Talk a bit about ‘Enterprise Architecture’ (how you
think about the structure of the organization)
Get your assessment of your core business processes
4
5. How do you compete?
5
Operational
Excellence
Operational excellent companies deliver a
combination of quality, price, and ease of
purchase that no one else in the market can
match:
• They are not product or service innovators,
nor do they cultivate one-to-one relationships
with the customers
• They execute extraordinarily well, and their
proposition to customers is guaranteed low
price and/or hassle-free service
Customer
Intimate
A company that delivers value via customer
intimacy makes bonds with customers like
those between good neighbors:
• Does not deliver what the market wants, but
what a specific customer wants
• Makes business of knowing the people it sells
to and the products and services they need
• It tailors the products and services, and do so
at reasonable prices
Product
Leadership
A company pursuing product leadership continually
pushes its products into the realm of the unknown. A
product leader consistently strives to provide its
market with leading-edge products. Characteristics
of PL companies include:
• Creativity
• Commercialize the ideas quickly
• Relentlessly pursue ways to leapfrog the latest
product or service
Apple - Harley-Davidson –
Nike
Dell – Walmart – McDonald –
Toyota
Rule #1 is that a company must choose
one discipline to excel in.
Rule #2 is that companies must also be
"good enough" at the other two
disciplines, where good enough depends
on how well their competitors do.
Nordstrom - IBM
6. How do you compete?
6
Operational
Excellence
Customer
Intimate
Product
Leadership
Apple - Harley-Davidson –
Nike
• The company sees itself as a
customer intimate company:
Wanting the customer to not
even consider going with anyone
else
• The company sees its
challenges in product
leadership focusing about half
of their change ‘energy’ in that
area.
Nordstrom - IBM
How we are
going to market
Where we are
focusing our
change efforts
~40
~40
~20
~30
~50
~20
7. Short exercise
Help us understand how you believe the company
competes today and how you think it will change in the
next 1 – 3 years.
– Take 100 points and allocate them to each of the axes
(operational excellence, customer intimacy, product leadership)
describing how you think the Horton fares today…
– Then take another 100 points and allocate them to where you
would want the organization to improve
For example: if your go to market position is heavily weighted by
operational excellence, then followed by product leadership with some
attention to customer intimacy the score might be:
– OE – 50; PL – 35, CI – 15
If you believe that the competitive environment requires a focus on
Product leadership and customer intimacy followed by operational
excellence, your change agenda might look like:
– OE – 10; PL – 45, CL – 35
7
8. How do you look at your customers / competitors?
8
• Price
• Reliability &
Durability
• Unique
Features
• Brand
Experience
• Service
Dependability
• Convenience
• Service Advice
• Personalized
Services
Low Cost
Differentiated
/ Value add
Product
Service
Key customers:
• Volvo
• Paccar
• Freightliner
• Navistar
• Aftermarket
Key competitors:
• Borg Warner
• Behr
• Siemens
Best Total Cost
• “Great prices and
quality”
• “Their products last and
last”
• “A no-hassle firm”
• “Consistency is their
middle name”
Best Product
• “Premium priced, but worth
it”
• “Consumers ask for it by
name”
Best Total Solution
“They are experts in my
business”
“Their services are exactly
what I need”
9. What do your key customer value?
9
Low Cost
High Quality
Better features
Low Cost
Dependable
Customized /
Personalized
Product
Service
Low Cost
High Quality
Better features
Low Cost
Dependable
Customized /
Personalized
Product
Service
Low Cost
High Quality
Better features
Low Cost
Dependable
Customized /
Personalized
Product
Service
Freightliner
Volvo
Paccar
10. What do your key customer value (continued)?
10
Low Cost
High Quality
Better features
Low Cost
Dependable
Customized /
Personalized
Product
Service
Low Cost
High Quality
Better features
Low Cost
Dependable
Customized /
Personalized
Product
Service
Low Cost
High Quality
Better features
Low Cost
Dependable
Customized /
Personalized
Product
Service
Aftermarket
CAT
Deere
11. How do the competitors play?
11
Low Cost
High Quality
Better features
Low Cost
Dependable
Customized /
Personalized
Product
Service
Low Cost
High Quality
Better features
Low Cost
Dependable
Customized /
Personalized
Product
Service
Low Cost
High Quality
Better features
Low Cost
Dependable
Customized /
Personalized
Product
Service
Low Cost
High Quality
Better features
Linneg
Behr
Borg Warner
12. How do the competitors play?
12
Low Cost
High Quality
Better features
Low Cost
Dependable
Customized /
Personalized
Product
Service
Low Cost
High Quality
Better features
Low Cost
Dependable
Customized /
Personalized
Product
Service
Low Cost
High Quality
Better features
Low Cost
Dependable
Customized /
Personalized
Product
Service
Multiwing
TruFlo
ACS
13. Describe needed / anticipated changes in how you run
the company?
13
Coordination
• Operationally unique
functions
• Autonomous
Management
• Consensus approach
to designing processes
Unification
• Globally integrated
business processes
• Centralized
management
• Standardized
processes
Diversification
• Operationally
independent BU’s
• Autonomous
management teams
• Local control over
business process
design
Replication
• Similar business units
• Limited discretion
over processes
• Centralized (or
federal) control over
process design
High
Low
Process standardization
Today
Target
Business Process
• New product development (NPD)
• Lead to Close (SLS)
• Forecast to Plan(SCP)
• Schedule to Make (MFG)
• Order to Cash (ORD)
• Post sale service (Wnty)
• Purchase to Pay (Purch)
• Maintain Equipment (Maint)
• Hire to retire (HR)
• Record to Report (Fin)
• Advertise & Promote (MKT)
BusinessProcess/
OrganizationIntegration
HighLow
Enterprise Architecture Models
14. Are there changes in how you run the Horton?
14
High
Low
Process standardization
Today
Target
Business Process
• New product development
(NPD)
• Lead to Close (SLS)
• Forecast to Plan(SCP)
• Schedule to Make (MFG)
• Quality (QTY)
• Order to Cash (ORD)
• Post sale service (Wnty)
• Purchase to Pay (Purch)
• Maintain Equipment (Maint)
• Hire to retire (HR)
• Record to Report (Fin)
• Advertise & Promote (MKT)
BusinessProcess/
OrganizationIntegration
HighLow
Enterprise Architecture
Models
•NPD
•MAINT
•MFG
•SCP
•ORD
•WNTY
•MKT
•QUAL
•SLS
15. Where are you targeting process improvements?
New product dev. (NPD)
Lead to Close (SLS)
Forecast to Plan(SCP)
Schd to Make (MFG)
Quality (QUAL)
Order to Cash (ORD)
Post sale service (Wnty)
Purchase to Pay (Purch)
Maintain Equip. (Maint)
Hire to retire (HR)
Record to Report (Fin)
Adv. & Promote (MKT)
15
Key Process
Today
Target
Process capabilityPoor World Class
16. What will we do with these results
This information, combined with the strategic plans, interviews, workshops and
assessment questionnaires will give us a good picture of:
– How well IT and specifically Oracle serves the business today
– What needs to change to fix today’s issues and provide support for your future direction
This will lead us to a legacy modernization strategy:
16
Extend
(new modules)
Don’t fix – it
ain’t broke
Rip and Replace
Upgrade and
extend
Abilitytosupport
today’sneeds
Ability to support tomorrows
needs
Low
Low
High
High
17. Next Steps
Over the next two weeks we will be in headquarters for
interviews
Between Thanksgiving and Christmas we will be travelling
to the plants
Over the holiday we will be consolidating findings, options
and recommendations to be presented early January
After getting aligned with you at that meeting we will be
developing the roadmap and estimates for costs and time.
Target delivery – late January
17
Editor's Notes
Horton helps restore hope, healing, and health to people affected by addiction to alcohol and other drugs.