Steve.Keifer@gxs.com113th EDIFICE Plenar      EDIFICE PlenaryMarch 2010 | Paris             Differentiating the Customer  ...
MiG 25 Pilot Defects Soviet Union                   Viktor Belenko - September 1976                                  March...
MiG 25 – The Teardown                        Reverse engineering has                         been used by military        ...
In a German Biergarten…                   Gizmodo publishes photos                   of Apple iPhone 4 prototype          ...
Shanzhai Beats Apple to Market                        The “HiPhone” and                             HiPhone               ...
A Competitive Advantage?                Unit Sales in Millions                                Shanzhai can bring new180   ...
Tablet Explosion   Apple iPad    Samsung Galaxy   SONY VAIO                      The iPed Motorola XOOM      HP Slate     ...
iPed Now Available on Amazon?                         March 4, 2011   Slide 8
Just Released                March 4, 2011   Slide 9
The Teardown SpecialistsServices, consulting, and management           Helping our clients improve performance in thesoftw...
Competitive Analysis       Integrated       I t    t d        Packaging                         P k i     Circuit Design  ...
Trends Impacting Differentiation                              March 4, 2011   Slide 12
Self-Repair              • Most consumer devices lack                repair instructions or parts              • Off step-...
Open Source Hardware                  • Schematics, bill of materials, Printed                    Circuit Board (PCB) layo...
Growth of Open Source HardwareNumber of Open Source Hardware Projects                                                • Ope...
Contract Manufacturer Evolution                      HTC - From Contract                    Manufacturer to Competitor    ...
Flextronics ServicesPrinted Circuit                                                                        Camera         ...
Hardware Brands in the Cloud? There are no teardowns for public cloud platforms.                                      Marc...
Differentiation – Beyond Products                             March 4, 2011   Slide 19
How to Compete                                   94% of                                        f                          ...
Competitive Advantage                                        Dell• Just In Time    • Vertical        • Build-to-          ...
Competing on Forecasting                                 Physical Supply Chain  Customer         Vendor          Late Stag...
2010 – Year of ShortagesAverage Lead Times for Components (April 2010)SRAM                            8-16 WeeksFlash NAND...
New Precious Commodities                           March 4, 2011   Slide 24
Kinect In High Demand                        Top-selling accessory                        item in terms of dollar         ...
New Product LaunchesSource: Morgan Stanley Research, Gartner, IDC, company reports (February 2011)                        ...
High Tech Channel Checks                                                                                  Violations of no...
US Infrastructure Failures                                Credit Union freezes                                C dit U i f ...
Rare Earth Element ShortageCritical to Hybrid Vehicles, Clean Tech Appliances                                             ...
Customer Process Requirements                          March 4, 2011   Slide 30
Corporate Social Responsibility           Greenhouse Gases                                                                ...
Corporate Social ResponsibilitySource: STMicroelectronics Corporate Responsibility Report 2009                            ...
Labor and Human Rights                         • Recruitment - foreign workers                           who pay excess fe...
Apple Supplier Code of ConductSource: Apple Supplier Responsibility Progress Report 2011                                  ...
Conflict Minerals  Tin, Tantalum, Tungsten, Cobalt widely used in computers,  airplanes, automobiles, cell phones, consume...
Importance of CSRSource: Eye for Transport - High Tech & Electronics State of the Industry Report (2010-2011)             ...
Customer Business Requirements                          March 4, 2011   Slide 37
The Customer Relationship     Customers are Growing Larger          and More Powerful            dM     P     f l   Buyer ...
The Key Challenge   Every Large Company Approaches      Supply Chain Processes &    Technologies in a Different Way  Suppl...
Purchase Orders in High TechSource: EIDX/CompTIA - Purchase Order Business Fundamentals                                   ...
Customer Process VariabilityForecastingF      ti              Orders                       Od                  Logistics  ...
Customer Technology Requirements                          March 4, 2011   Slide 42
B2B Integration TechnologiesHow Do You Integrate with Customers?                   Electronic        Order                ...
Selling to Government       Spain             France          Germany                  UK  Direccion General       Ixarm  ...
You Try to Standardise IT…                        Small and Midsize Customers                      Large Customers        ...
Compromised by Customers…                        Small and Midsize Customers                        Large Customers  Phone...
Quest for EfficiencyBuyer’s View  y                                                                                       ...
The Options?        Give Up   Negotiation        Battle        B ttl       Escape                    E                    ...
Two Views on ComplexityChallenge                    Opportunity                          March 4, 2011   Slide 49
Differentiating with B2B  89% of Respondents      Agreed that  Flexibility of our B2B e-Commerce program Enables  us to Di...
Can the Cloud Solve                                                                                      Manufacturer’s Cu...
Questions                                                                                    Steve Keifer                 ...
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GXS 2011 EDIFICE keynote (steve keifer)

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GXS 2011 EDIFICE keynote (steve keifer)

  1. 1. Steve.Keifer@gxs.com113th EDIFICE Plenar EDIFICE PlenaryMarch 2010 | Paris Differentiating the Customer Experience in a Teardown Economy March 4, 2011 Slide 1
  2. 2. MiG 25 Pilot Defects Soviet Union Viktor Belenko - September 1976 March 4, 2011 Slide 2
  3. 3. MiG 25 – The Teardown Reverse engineering has been used by military organizations since the Second World War and extensively during Cold War Used by militaries in order to copy other nations technologies, g , devices or information Used by commercial organizations for competitive advantage March 4, 2011 Slide 3
  4. 4. In a German Biergarten… Gizmodo publishes photos of Apple iPhone 4 prototype found in Silicon Valley bar March 4, 2011 Slide 4
  5. 5. Shanzhai Beats Apple to Market The “HiPhone” and HiPhone “Blockberry” are very popular in China March 4, 2011 Slide 5
  6. 6. A Competitive Advantage? Unit Sales in Millions Shanzhai can bring new180 phone to market in as little as 45 Days using System on160 Exports a Chip technology140 In China 10% of Worldwide Mobile120 Phone Sales100 60% Exported from China 80 Advantages of Shanzhai 60 • No Market Research 40 • No Product Design • No Testing & QA 20 • N Li No Licensing or T i Taxes 0 • No Inventory 2005 2006 2007 2008 2009 • No Sales Force or Stores Source: http://www.shanzhaiji.cn/talk/20081202/6216.html March 4, 2011 Slide 6
  7. 7. Tablet Explosion Apple iPad Samsung Galaxy SONY VAIO The iPed Motorola XOOM HP Slate RIM Playbook Cisco Cius March 4, 2011 Slide 7
  8. 8. iPed Now Available on Amazon? March 4, 2011 Slide 8
  9. 9. Just Released March 4, 2011 Slide 9
  10. 10. The Teardown SpecialistsServices, consulting, and management Helping our clients improve performance in thesoftware for technology companies seeking electronics value chain by p y providing facts and gto leverage and protect their technology and analysis for successintellectual property assets• Technology & Market Assessment • Market Research for Consumer• Formulate IP Strategy Electronics, Telematics, Semiconductor• Establish IP Position • Teardown Analysis• Defend, Leverage IP Business • Device-Specific Application Forecasts• IP Monetization March 4, 2011 Slide 10
  11. 11. Competitive Analysis Integrated I t t d Packaging P k i Circuit Design Design & Layout Analysis Bill of Device or Materials & SystemCost Analysis Functionality Software Fabrication Reverse Process Engineering Analysis March 4, 2011 Slide 11
  12. 12. Trends Impacting Differentiation March 4, 2011 Slide 12
  13. 13. Self-Repair • Most consumer devices lack repair instructions or parts • Off step-by-step instructions Offer t b t i t ti with photos • Wiki style approach to repair manuals with co a ua s community o u y of contributors edits • Guides for Macs, PCs, game consoles, phones, tablets, cameras, appliances li • Storefront to sell parts - Apple, Nintendo, Sony, Microsoft March 4, 2011 Slide 13
  14. 14. Open Source Hardware • Schematics, bill of materials, Printed Circuit Board (PCB) layout and software are released with free and open source modeld l • Allow for modification and redistribution of design files g • Allow manufacture, sale, distribution and use of devices from design • Categories include video games, microprocessors, computer systems, home energy management • Services to prototype, manufacturer and distribute March 4, 2011 Slide 14
  15. 15. Growth of Open Source HardwareNumber of Open Source Hardware Projects • Open Source Hardware350 market predicted to be300 $1B i 2015 in250 • Over 13 companies with $1M in revenues, ,200 many approaching $5M150 • Over 200 projects today passing 300 in today,100 2011 50 • Will it expand beyond hobbies to commercial 0 hardware? 2006 2007 2008 2009 2010 2011 Source: Make Magazine March 4, 2011 Slide 15
  16. 16. Contract Manufacturer Evolution HTC - From Contract Manufacturer to Competitor Less than 10% of Revenues are from ODMs March 4, 2011 Slide 16
  17. 17. Flextronics ServicesPrinted Circuit Camera Power Enclosures E l Displays Di l Boards Modules Supplies Provide design and manufacture or more components. Moving beyond just assembly. Assembly Aftermarket Design Procurement Logistics & Testing Service• Contract Design – • Forecasting & • Build-to-order • Supplier managed • Customer returns & T&M engineering Demand Planning • Configure-to-order inventory repair• Joint Development • Materials & • Just-in-time • Inbound freight • Refurbishment Manufacturing a u ac u g Components Manufacturing g management a age e • Recycling ecyc g• Original Design & Purchasing • Defect analysis • Order fulfillment • Service parts Manufacturing • Expediting • Environmental and distribution logistics • Warehousing stress testing • Retail technical servicesData gathered from Flextronics 10-K SEC Filing – May 2009 March 4, 2011 Slide 17
  18. 18. Hardware Brands in the Cloud? There are no teardowns for public cloud platforms. March 4, 2011 Slide 18
  19. 19. Differentiation – Beyond Products March 4, 2011 Slide 19
  20. 20. How to Compete 94% of f Respondents Agree Increasingly companies will compete as much through superior processes and service solutions as through superior productsMartin Christopher Source: Enhancing Customer-Centric Supply Chains – SCMWorld (October 2010)Emeritus ProfessorMarketing and Logistics March 4, 2011 Slide 20
  21. 21. Competitive Advantage Dell• Just In Time • Vertical • Build-to- • Club Card & Manufacturing Integration Order POS Data Sharing• Kanban • Nearshore • Direct to Production Consumer • Cross-• Supplier pp Docking Relationship • POS-Based • Online Management Replenishment Demand • Factory Shaping Gate Pricing Differentiation Comes from Process & Approach March 4, 2011 Slide 21
  22. 22. Competing on Forecasting Physical Supply Chain Customer Vendor Late Stage Collaborative Build to Self- Managed Configuration & Demand Order Inventory Configure Inventory Postponement Planning (or Configure) ConsignmentRetailer or Original Equipment Contract Component SemiconductorDistributor Manufacturer Manufacturer Supplier FabQuotes & Sales Point of Sale Inventory Manufacturing Sales New Product Activity Transactions Positions Consumption Forecasts Introductions Information Supply Chain I f ti S l Ch i March 4, 2011 Slide 22
  23. 23. 2010 – Year of ShortagesAverage Lead Times for Components (April 2010)SRAM 8-16 WeeksFlash NAND 8-16 WeeksUSB,USB UART 4-20 WeeksCapacitors 12-42 WeeksConnectors 8-16 WeeksSolid State relais 4 22 4-22 WeeksDiscrete 12-26 WeeksComponents March 4, 2011 Slide 23
  24. 24. New Precious Commodities March 4, 2011 Slide 24
  25. 25. Kinect In High Demand Top-selling accessory item in terms of dollar sales on a year-to-date basis 8M units sold in 2010 as compared to 5M forecasted 1M units sold in first 10 days March 4, 2011 Slide 25
  26. 26. New Product LaunchesSource: Morgan Stanley Research, Gartner, IDC, company reports (February 2011) March 4, 2011 Slide 26
  27. 27. High Tech Channel Checks Violations of non-disclosure agreements to share secrets Apple iPhone forecasts and plans in exchange for cash US SEC Arrests four employees of high tech manufacturers and expert network consultants for Insider Tradinghttp://www.cnbc.com/id/40697535/Four_More_Arrests_Are_Made_In_Federal_Insider_Trading_Probe March 4, 2011 Slide 27
  28. 28. US Infrastructure Failures Credit Union freezes C dit U i f Airplane Control bank accounts Tower in-flight communications disruption Signal & Controlsystems disabled onUnion Pacific trains 130 cell tower sites disabled Five storm sirens failed to warn of incoming tornado March 4, 2011 Slide 28
  29. 29. Rare Earth Element ShortageCritical to Hybrid Vehicles, Clean Tech Appliances March 4, 2011 Slide 29
  30. 30. Customer Process Requirements March 4, 2011 Slide 30
  31. 31. Corporate Social Responsibility Greenhouse Gases Equal Opportunity Practices Conservation and Biodiversity Environmental Supplier Small Businesses Waste Management Local Sourcing Responsibility Diversity Product Corporate Fair Labor Social Quality Responsibility Practices ReportingConsumer Product Safety Child/F Child/Forced L b L d Labor Laws Product Recall History Occupational Safety Traceability Procedures Maximum Work Hours Ethical Financial Business Annual & Quarterly Results Transparency Antifraud Controls Practices Corporate Governance Know Your Customer Political Activity Disclosure Incident/Legal Disclosure March 4, 2011 Slide 31
  32. 32. Corporate Social ResponsibilitySource: STMicroelectronics Corporate Responsibility Report 2009 March 4, 2011 Slide 32
  33. 33. Labor and Human Rights • Recruitment - foreign workers who pay excess fees • Underage - minimum employment age was 16 • Waste – non-certified hazardous non certified waste disposal companies • Overtime –workers exceeded maximum work weekly limits • Wages – paid less than minimum wage for regular working hours • B Benefits – d fi i t payments fit deficient t for sick leave, maternity • Deductions –of wages for disciplinary purposes • Discrimination –pregnancy tests prior to employment • Safety – not wearing p y g protective equipment March 4, 2011 Slide 33
  34. 34. Apple Supplier Code of ConductSource: Apple Supplier Responsibility Progress Report 2011 March 4, 2011 Slide 34
  35. 35. Conflict Minerals Tin, Tantalum, Tungsten, Cobalt widely used in computers, airplanes, automobiles, cell phones, consumer electronics i l bil ll h l i Now prohibited in US Dodd-Frank Legislation March 4, 2011 Slide 35
  36. 36. Importance of CSRSource: Eye for Transport - High Tech & Electronics State of the Industry Report (2010-2011) March 4, 2011 Slide 36
  37. 37. Customer Business Requirements March 4, 2011 Slide 37
  38. 38. The Customer Relationship Customers are Growing Larger and More Powerful dM P f l Buyer Suppliers March 4, 2011 Slide 38
  39. 39. The Key Challenge Every Large Company Approaches Supply Chain Processes & Technologies in a Different Way Suppliers Must Contend with Rising Complexity and Customization from Large Accounts March 4, 2011 Slide 39
  40. 40. Purchase Orders in High TechSource: EIDX/CompTIA - Purchase Order Business Fundamentals March 4, 2011 Slide 40
  41. 41. Customer Process VariabilityForecastingF ti Orders Od Logistics L i ti Settlement S ttl tPlanning Forecast Catalog Order Ship to Factory Supplier Invoice Confirming Order Ship to Warehouse Self-Billing Simple Forecast Spot-Buy PO Ship to Store Invoice DiscountingMaterial Release Blanket PO Drop Ship Receivables Factoring Schedule Evergreen Order Home Delivery Supply Chain Finance Consumption Standing PO Merge-in-Transit Open Account O Schedule Build-to-Order Consolidation Letter of Credit Order Forecast Configure-to-Order Documentary Cross-Docking Collection Mix/Aggregation Drop Ship Order Late S L Stage Forecast Debit Transfer Internal Order Configuration & Credit TransferDelivery Forecast Postponement Work Order Wire Transfer Rolling Forecast Job Order Procurement Card Service Order Cheque Build Plan Repair Order Warranty Order March 4, 2011 Slide 41
  42. 42. Customer Technology Requirements March 4, 2011 Slide 42
  43. 43. B2B Integration TechnologiesHow Do You Integrate with Customers? Electronic Order Direct E-Mail, Fax, Exchange/ EDI Procurement Management Internet Phone Marketplace VAN Application Portal ConnectioncXML PunchOut S-FTP SOAP cXML SAP IDOC OCI RoundTrip FTPS SMTP ebXML Oracle XML TapOut FTP RNIF GS1 GDSN Microsoft AIF VPN SOAP GS1 eCOM QAD SNF PEPPOL AS1 HTTP/S UBL Achats AS2 REST SPEC 2000 Connect:Direct Zanzibar AS3 ebXML CIDX HULFTAcquistinretepa AS4 OFTP PIDX ENX March 4, 2011 Slide 43
  44. 44. Selling to Government Spain France Germany UK Direccion General Ixarm e-Vergabe Zanzibar Del Patrimonio Achats Kaufhaus des OPEN Del Estado Marches-publics Marches publics Bundes - KdB xChangeWales PETM-BCS e-bourgogne Denmark Belgium Norway Italy DOIP .be-Procurement Ehandel.no Acquistinretepa ETHICS March 4, 2011 Slide 44
  45. 45. You Try to Standardise IT… Small and Midsize Customers Large Customers Common, canonical XML Single, global formats defined portal for for information customers. exchange inside AS2 and VAN Web Portal VAN RNIF the enterprise interfaces for RosettaNet XMLB2B integration B2B Customer B2B Integration Web Portal Gateway OAGi XML Standardized, Middleware (Application-to-Application) Global ERP suite used Modularized, SAP IDOC Oracle TIF across brands, ALE FTP reusable geographicservices provide regions and access t ERP to Supply Order Warehouse Transport Service functions from Chain Manage Manage- Manage- Accountsvarious internal Receivable Parts Planning -ment ment ment Planning and external operating customers Common ERP Application companies. p March 4, 2011 Slide 45
  46. 46. Compromised by Customers… Small and Midsize Customers Large Customers Phone, fax, e-mail, spreadsheet are required to Proliferation of support smaller EDI, XML and customers or Web E-Mail Ariba GXS FTP AS2 RNIF B2B comms e2openemerging markets Portal w/CSV Punchout VAN EDI XML XML must be supported to satisfy customer needs Web B2B Integration Portal Gateway Middleware (Application-to-Application) ERP Middleware customised to customized to meet the needsprovide services of specificprovide access customer to ERP accountst Supply Order Warehouse Transport Service functions from Accounts Chain Manage Manage- Manage- Partsvarious internal Receivable Planning -ment ment ment Planning and external customers Common ERP Application March 4, 2011 Slide 46
  47. 47. Quest for EfficiencyBuyer’s View y Supplier’s View pp Electronics Retailer One Many Standardised Customized Supply Chain pp y Supply Chain Processes & Processes & P Technology Technologies OEM 1 OEM 2 OEM 3 For each How many Supplier Supplier Supplier Supplier Supplier Euro of E f are l t on lostcosts saved customeron standard- facing isation complexity? Lower Tier Suppliers March 4, 2011 Slide 47
  48. 48. The Options? Give Up Negotiation Battle B ttl Escape E March 4, 2011 Slide 48
  49. 49. Two Views on ComplexityChallenge Opportunity March 4, 2011 Slide 49
  50. 50. Differentiating with B2B 89% of Respondents Agreed that Flexibility of our B2B e-Commerce program Enables us to Differentiate from Competitors on Service p March 4, 2011 Slide 50
  51. 51. Can the Cloud Solve Manufacturer’s Customer A ERP Systems OAGi Galia/VDA SAP IDOC OFTP EDIFACT SANNA XML ANSI EDI AS2 Zengin Tradacoms T d RosettaNet R tt N t Customer B Cloud-Based B2B e-Commerce Service S i Data Sync CPFR Customer C ASN E-Invoicing E-Mail E-Marketplace Fax-to-EDI March 4, 2011 Slide 51
  52. 52. Questions Steve Keifer Vice President Product Marketing Work +1.301.340.4454 E-Mail: E Mail: steve.keifer@gxs.com www.gxs.com Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License. March 4, 2011 Slide 52

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