United Nations Tom Nies Keynote

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  • Greetings and opening comments. Architecting Excellence is a good theme for this conference. The pursuit of excellence whether it is the city of Savannah or our activities at the companies for which we work or any aspect of life is what we all seek. I have chosen for my theme today “Creating Value: The Real Business of Manufacturing.” It is value that is the foundation for architecting excellence.
  • United Nations Tom Nies Keynote

    1. 1. Creating Value: The Real Business of Manufacturing Thomas M. Nies President and CEO Cincom Systems, Inc.
    2. 2. Value Economics Cost, Revenue, Risk Value Creation Different, First, Relevant Value Delivery Market, Enterprise, Supply n. Format of Value Vectors
    3. 3. Economic Value
    4. 4. First Different Relevant Generate Unique Value
    5. 5. Generate Unique Value: Rule 1 -- Be Different
    6. 6. Generate Unique Value: Rule 2 -- Be First
    7. 7. Generate Unique Value: Rule 3 -- Be Relevant
    8. 8. Integration Innovation Simplicity Generate Unique Value 3 Techniques to be Different, First and Relevant
    9. 9. Technique 1. Innovation
    10. 10. Man Tried Again … and Again
    11. 11. Finally, Success Convergence and Integration
    12. 12. 35 Years Later … Commercial Success Convergence and Integration of Many Technologies Incredible Complexity
    13. 13. Now we jet around the world With Yet More Complex Technologies Integrated to Create the End Product Boeing 777 - Initiated 1990 / Launched 1995 Boeing 787 – Initiated 2002 / Launch 2008
    14. 14. 33 Years Later … and Counting With Different, Yet More Complex Technologies Both in Space and On the Ground
    15. 15. <ul><li>Diagram of “upside down U” </li></ul><ul><li>Progressive Stage / Build Share </li></ul><ul><li>Complacent Stage / Preserve Share </li></ul><ul><li>Reactive Stage / Share Decline </li></ul>Typical Product Lifecycle Demands Continuous Innovation
    16. 16. Radical Innovation Technology Time
    17. 17. The Innovator’s Mandate <ul><li>Must kill off old ideas, technologies and competitors </li></ul><ul><ul><li>Open and eager to change and new ideas that deliver unique value </li></ul></ul><ul><ul><li>Must have competence to develop new ideas </li></ul></ul><ul><ul><li>Must have innovative technology support </li></ul></ul>
    18. 18. The Innovative Attitude <ul><li>The magical, time sensitive combination of courage, creativity and commitment. </li></ul><ul><ul><li>The courage to change … to leave the familiar behind </li></ul></ul><ul><ul><li>The creativity … to identify what is needed at a given time </li></ul></ul><ul><ul><li>The commitment … to get it done, on time, while the opportunity is still fresh and profitable </li></ul></ul>
    19. 19. Technique 2. Simplification
    20. 20. The objective of all business is to create value for customers and shareholders, but the biggest barrier most companies now face in delivering value is the complexity of managing their own businesses.
    21. 21. <ul><li>“ My guiding light has always been simplicity. When I look at anything, I ask, ‘How can we simplify this and put a smile on your face when you use it?’ This is the question I ask myself and my team everyday .” </li></ul><ul><ul><ul><ul><ul><li>Bob Glass, CTO, Weaver Aerospace </li></ul></ul></ul></ul></ul>
    22. 22. Let’s look at how complexity grows
    23. 23. Not So Complex No Integration Required
    24. 24. A Bit More Complex Not Much Integration Required
    25. 25. Getting Out of Control Required integration rapidly increasing
    26. 26. How did aerospace manufacturers solve this magnitude of complexity? By Understanding The Law of Complexity
    27. 27. The Law of Complexity The Number of Relations is Geometric R = n 2 - n 2 = (4 – 2) = 2 3 = (9 – 3) = 6 4 = (16 – 4) = 12 9 = (81 – 9) = 72 10 = (100 – 9) = 90
    28. 28. The Self-Destructive Impact of Complexity on an Organization
    29. 29. The Challenge is to Reduce the Complexity Gap
    30. 30. Seeking the Ideal State of Perfection
    31. 31. Reducing Complexity by Simplifying Methodology Shifting from R = n 2 – n to R = 2N
    32. 32. Technique 3. Integration
    33. 33. “ The 777 consists of millions of objects of intellectual capital flying in close formation.” -- Boeing
    34. 34. Many departments in one company, one goal Many companies, one goal
    35. 35. Value Delivery Value Delivery Putting it all Together
    36. 36. This is the Cincom Value Story High Value. Low Cost. Rapid ROI. Low Risk
    37. 37. <ul><li>2006 Cincom Systems, Inc. </li></ul><ul><li>All Rights Reserved </li></ul><ul><li>Developed in the U.S.A. </li></ul><ul><li>Cincom, the Quadrant Logo, and Simplification Through Innovation are registered trademarks of Cincom Systems, Inc. </li></ul><ul><li>All other trademarks belong to their respective companies. </li></ul>

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