The document discusses how e-collaboration and Web 2.0 technologies are enabling faster product development cycles and more responsive customer relationships. It notes that companies are increasingly using blogs, wikis and social networks both internally for collaboration and externally for marketing and customer engagement. The document advocates reengineering processes, improving communications networks, and leveraging Web 2.0 tools to better connect employees, partners and customers.

1. E-Collaboration And, the role of Web 2.0 December 10, 2009 [email_address] www.peergroup.ne t

2. [email_address] www.PeerGroup.net “ When all is said and done .. More is said than done.” Lou Holtz , Former Coach Notre Dame Fighting Irish

3. Constant Business Pressures Globalization Innovation Demographic Changes Green Cost [email_address] www.PeerGroup.net

4. Reduced Product Development Times Shorter Quote-to-Cash Cycles Quick Response to Customer Globalization Customization of Products & Services Six-Sigma Quality Levels CAD, CAE, FEA, Product Data Management (PDM), CIS Order Management Systems, ERP, SCM/Capacity Simulation, Sales Force Automation, VMI Internet, Wide Area Nets, EDI, E-Mail, Currency, Language Facilities, A/V Conferencing, Web 2.0 Software Modules, Object-Oriented Development, Table-driven Configurators CAD, Simulation, Design Rule Checking, Order Management [email_address] www.PeerGroup.net Business Drivers - IT Enablers

5. [email_address] www.PeerGroup.net Materials Management (MRP) Shop Floor Control CAD - CAE Analytic Computation Word Processing Direct Customer Access Product Configurators Product Customization Fast Response/JIT EDI/E-Commerce Supply Chain Collaboration 1960 - 1973 1973 - 1980s 1990-2000s Faster Ledgers ---- Direct Savings Operating Efficiencies ---- Indirect Savings Virtual Corporation ---- Growth Accounting/ Finance Payroll Sales Statistics Cost Distribution Inventory Accounting Applications Software Shift

6. [email_address] www.PeerGroup.net

7. 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

8. Objective: Cycle Time = [email_address] www.PeerGroup.net

9. Objective: Cycle Time = Process Time

10. Assumptions Process Applications & Tools Infrastructure [email_address] www.PeerGroup.net

11. Further Assumption Process (Requirements) Applications (Software) Infrastructure (Platforms) [email_address] www.PeerGroup.net

12. Realities Not Sequential Inflexible Software Time Consuming Lack of Standards [email_address] www.PeerGroup.net

13. Process Model [email_address] www.PeerGroup.net ERP Eng.. Order Factory Order Sales Order Purchase Order

14. Process Model [email_address] www.PeerGroup.net ERP Eng.. Order PLM Factory Order Sales Order Engineering Collaboration Manufacturing Purchase Order

15. 21 st Century Organization Withering Hierarchy Teams Empowerment Network-Based

16. Workgroups Product Teams Functional Teams Task Forces Cross Functional Teams Inter-company Teams Industry Teams [email_address] www.PeerGroup.net

17. Workgroup Support Products Lotus Notes Exchange/Outlook/Project Sharepoint Collabra GroupWise Blogs, Wikis, Social Networks [email_address] www.PeerGroup.net

18. New Software Generation Appearing Object-Based (Flexible) Platform Independent Standards compliant (TCP/IP, etc....) Web 2.0 [email_address] www.PeerGroup.net

19. 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

20. Web 2.0 Capabilities Conversation: Blogs Syndication: RSS Consensus: Wikis Sharing: Social bookmarking Applications: Mashups WWW .peergroup.net

21. McKinsey & Co. [email_address] www.PeerGroup.net

22. Web 2.0 Facilitates…… Connections Relationships Context Helps Resolve Ambiguities [email_address] www.PeerGroup.net

23. Growing Adoption Of Web 2.0 Source: Forrester Research

24. 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%

25. [email_address] www.PeerGroup.net Electronic Marketing Information Literature Samples Order Processing Order entry Pricing Agreements Returns Customer Account Management Customer Service Management Baldrige Award People Empowerment Field Force/Teams Customers Field Service Reps Re-engineered The Business Process $21 million annual savings 95% improvement in on-time delivery 60% reduction in sales office queries 72% reduction in product returns 78% reduction in cycle time (14:1) “ The Customer Connection” Texas Instruments

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28. Stormhoek Vineyards Consumer Blogs (everyone’s a wine expert) Participative pairing Wine Clubs Subscription to wine publications Sales have tripled since 2005 WWW .peergroup.net Baseline…June 14, 2007

29. Current Applications Blogs Internal Communication Marketing/PR Wikis Collaboration Knowledge Capture & Management Community Sites Marketing - Customer Engagement Social Networks Company Directory on Steroids Benefits: Attracting and retaining smart young workers

30. Shift to Customer 2.0 Large businesses spend more on employee collaboration tools than customer-facing Web 2.0 That trend will reverse by next year By 2013, companies will spend nearly a billion dollars more on customer-facing Web 2.0 than on internal collaboration Is there a payoff for this $1B investment? Source: Forrester Research

31. EveryThing is Measurable [email_address] www.PeerGroup.net

32. Key Elements Re-engineer process Communications network Workflow software Data Base discipline Web 2.0 utilization [email_address] www.PeerGroup.net

33. The Challenge of Change “ 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.” [email_address] www.PeerGroup.net

34. “ 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.” Maciavelli 1513 [email_address] www.PeerGroup.net

35. Readings Real Time ; McKenna , Regis Blur ; Davis, Stan; Meyer, Christopher Competitive Strategy ; Porter, Michael Using Technology to Improve Workforce Collaboration ; McKinsey Digital

36. [email_address] www.PeerGroup.net Thank You for Your Attention [email_address] www.peergroup.net

37. [email_address] www.PeerGroup.net

38. Networks for Networking Intranets PLM SCM Software Exchange/Notes Self Serve Blogs Wikis EDI EFT Industry Intranets textiles Trade Exchanges E-Commerce Social Networks [email_address] www.PeerGroup.net

39. Resulting Issues Process - BPR Limited Successes (Ford/Mazda) Applications Best of Breed Vs. Integrated Set Tailoring/custom development Infrastructure Diversity [email_address] www.PeerGroup.net

40. Caterpillar [email_address] www.PeerGroup.net Benefits Cycle times reduced from 60 days to 5-10 days Fewer people in the process Improved accuracy Business Need Simplify the ordering Process Reduce cycle times Dealers & OEMs Data entry screen at customer location High level English language part names Prompts for features, modules, and options Software and data base explode order into low level, complex details such as numbering, revision levels, and codes Validates for customer that order will fit current configuration

41. Competitive Strategy [email_address] www.PeerGroup.net Customer Intimacy Product Innovation Operational Excellence Product ***** ********* ** Process ******** ** ********* People ********* ***** *****

42. [email_address] www.PeerGroup.net