http://www.microsoft.com/industry/manufacturing/default.mspx

Industry Overview

Enabling a People-Ready Business in Manufacturing

David Ives

Industry Manager

Microsoft South Africa

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Agenda

Manufacturing Industry Trends and ChallengesManufacturing Industry Trends and Challenges

People-Ready BusinessPeople-Ready Business

People-Ready Business in ManufacturingPeople-Ready Business in Manufacturing

SummarySummary

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Key Business Challenges

Manufacturing

Pressures to REDUCE COSTS

• Downward pricing

• Regulatory compliance

• Operational Health and Safety

• Complex outsourcingmodels

• Global competition

• Cyclical markets

Pressures to INNOVATE

• Demanding customers

• Competitive differentiators

• Complexdesign chains

• Constant stream of new products

Squeeze

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In a global economy

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Agenda

Manufacturing Industry Trends and ChallengesManufacturing Industry Trends and Challenges

People-Ready BusinessPeople-Ready Business

People-Ready Business in ManufacturingPeople-Ready Business in Manufacturing

SummarySummary

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People Drive Business Outcomes

develop customer relationships

improve operations

drive innovation

build partner

connections

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A People_Ready Business

• Embrace Business Process & Business Practice• People drive the most important business outcomes• Bet on People

• Understand the broadening role of software • Software can amplify people’s impact• Bet on Software

• Demand new class of solution • Innovative, well connected, familiar & easy to use • Bet on Microsoft & our Partners

PwC 99

ERP SupplierSupplier

Discuss requirements

Initiate project

ReceiveReceiveReceiveReceive

Close project

BuyerBuyer

SourcingDiscuss comments

One Of Many Business Processes

Send POSend POCreate POCreate PO

Send changesSend changesUpdate POUpdate PO

ApproveApproveConfirm POConfirm PO

Status?Status?

Ship noticeShip notice

InvoiceInvoiceClose POClose PO

Approve with comments

Approve with comments

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Business Practice

Sourcing

Deliveringproducts/services

CustomerAcquisition

Business intelligence to track issues

Collaboration to resolve support scenarios

Content management of knowledge base articles

Search to amass previous knowledge

Collaboration to construct works-in-progress

Content management of whitepapers, publications

Business intelligence to analyze costs

Business Process Integration to standardize expense reporting, HR, purchasing, etc.

Research &Development

Customerservice/support

Operations

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Business ProcessTraditional verses expansive view

IdealExplicit

StructuredTransactional

Often “happy path”FormalRigid

IdealExplicit

StructuredTransactional

Often “happy path”FormalRigid

Real worldImplicit

UnstructuredCollaborative

Exceptions happenAd hoc

Dynamic

Real worldImplicit

UnstructuredCollaborative

Exceptions happenAd hoc

DynamicManage the

interaction with our customers

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• Higher IT capability directly correlates with superior revenue growth• Top performing companies grew

3.5 percent faster than all peers in their industry

• The companies in the bottom quartile grew 3.3 percent slower than their peers

• Companies that have built a robust infrastructure enjoy a 23% advantage in revenue per employee

Source: Keystone Strategy Inc. (March 2006)

+3.5%

-3.3%

IT Leader

IT Laggard

Need for a Robust IT infrastructure-Enterprise IT capabilities and business performance

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Agenda

Manufacturing Industry TrendsManufacturing Industry Trends

People-Ready BusinessPeople-Ready Business

People-Ready Business in ManufacturingPeople-Ready Business in Manufacturing

SummarySummary

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Microsoft Manufacturing Vision

To accelerate our customers’ insight into their businesses and empower their

innovation by delivering Microsoft and Microsoft partner solutions that will enable

their people to improve their ability to achieve peak performance

To accelerate our customers’ insight into their businesses and empower their

innovation by delivering Microsoft and Microsoft partner solutions that will enable

their people to improve their ability to achieve peak performance

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Microsoft Manufacturing Industry Focus

Building comprehensive industry solutions with our

partners

Building comprehensive industry solutions with our

partners

Increased industry expertise and

knowledge

Industry vision and value proposition

Working with our product teams to meet industry

needs

Consistency in our industry language

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Microsoft Manufacturing Industry – Focus verticals

• Automotive

• High Tech and Electronics

• Consumer Packaged Goods (CPG)

• Oil and Gas

• Pharmaceuticals

• Utilities

• Mining (SA, AU and North America)

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Representative list of Microsoft Customers

Microsoft in Mining

Microsoft in Pharma

Microsoft in Utility

Companies

Microsoft in Automotive & Industrial

Microsoft in Oil & Gas

Microsoft in CPG

Unilever

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PwC 2020

Microsoft Manufacturing Industry Solutions Microsoft Manufacturing Industry Solutions Enabling a People-Ready BusinessEnabling a People-Ready Business

New Product Development Performance

Sales & Customer Service Performance

Operational Performance

Global Value Chain Performance

Customer Relationship Mgmt Customer Care FrameworkDealer ManagementWarranty Management

Collaborative Product DevelopmentProduct Portfolio ManagementProduct Data Management

Demand PlanningSupply Chain VisibilitySupply Chain CollaborationSupply Chain Execution

Plant Floor VisibilityManufacturing ERPManufacturing ExecutionManufacturing Control Systems

Drive Innovation

Develop Relationships

ImproveOperations

Build Connections

Manufacturing Initiatives Industry PrioritizedSolution Areas (IPSA)

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Vision

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Microsoft’s commitment to embracing Industry Standards

• OPC• Founding member, continued support• 10 year anniversary, 400 companies strong• Unified Architecture

• ISA-95• Connecting “Top Floor to Shop Floor”• Commitment to interoperability• Driving industry-wide adoption

• RosettaNet• Co-sponsor of the next-generation RosettaNet

Automated Enablement program with Office Open XML

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Operational PerformancePlant Operations & Lean Manufacturing Solutions

Functions Benefits

• Manufacturing Execution Systems

• Plant Floor Visibility and Collaboration

• Manufacturing ERP

• Lean Manufacturing

• Collects and maintains data through all stages

• Real-time visibility of orders, materials, and production

• Tools to energize, transform and sustain Lean Manufacturing

Improve Operations

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Control Systems,DCS and

Automated Equipment

Control Systems,DCS and

Automated Equipment

Plant Floor Visibility

Enterprise Manufacturing

Visibility

Plant Floor Visibility

Enterprise Manufacturing

Visibility

Plant Operations

Plant Operations

Enterprise Applications Integrated With Plant Operations

Supply Chain Management (SCM)

Supply Chain Management (SCM)

Customer Relationship Management (CRM)

Customer Relationship Management (CRM)

Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP)

Product Lifecycle Management (PLM)Product Lifecycle

Management (PLM)

Enterprise Asset Management (EAM/SAM)

Enterprise Asset Management (EAM/SAM)

Shipping/Receiving Materials Handling

Shipping/Receiving Materials Handling

Production Control/MESProduction Control/MES

SCADA and HMISCADA and HMI

Quality ManagementQuality Management

Laboratory Information Management

Laboratory Information Management

Document Management Regulatory Affairs EH&SDocument Management Regulatory Affairs EH&S

Missing Link: Plant Operations Impact on Results Inventory, Processes, Orders, Resources, Status, Downtime, Products, Lab Results, ExceptionsMissing Link: Plant Operations Impact on Results Inventory, Processes, Orders, Resources, Status, Downtime, Products, Lab Results, Exceptions

Business Intelligence

and Enterprise PerformanceManagement

Business Intelligence

and Enterprise PerformanceManagement

Improve Operations

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Co

llab

ora

tio

nC

oll

abo

rati

on

Inte

gra

tio

nIn

teg

rati

on

An

alyt

ics

An

alyt

icsEnterprise

ManufacturingVisibility

EnterpriseManufacturing

Visibility

Microsoft PlantFloor Visibility Pillars

Plant OperationsPlant Operations

SecuritySecurity Collaboration: Sharing the right information with the right people at the right time

Analytics: Converting aggregated data into information

Integration: Aggregating data from various sources and interoperating between groups

Enterprise Business Processes

Enterprise Business Processes

InfrastructureInfrastructure

Improve Operations

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Agenda

Manufacturing Industry TrendsManufacturing Industry Trends

People-Ready BusinessPeople-Ready Business

People-Ready Business in ManufacturingPeople-Ready Business in Manufacturing

SummarySummary

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Microsoft Manufacturing Industry Solutions Microsoft Manufacturing Industry Solutions Enabling a People-Ready BusinessEnabling a People-Ready Business

New Product Development Performance

Sales & Customer Service Performance

Operational Performance

Global Value Chain Performance

Customer Relationship Mgmt Customer Care FrameworkDealer ManagementWarranty Management

Collaborative Product DevelopmentProduct Portfolio ManagementProduct Data Management

Demand PlanningSupply Chain VisibilitySupply Chain CollaborationSupply Chain Execution

Plant Floor VisibilityManufacturing ERPManufacturing ExecutionManufacturing Control Systems

Drive Innovation

Develop Relationships

ImproveOperations

Build Connections

Manufacturing Initiatives Industry PrioritizedSolution Areas (IPSA)

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There is a stack to build on…20%

Unstructured Unstructured

Structured Structured

In People’s Heads In People’s Heads

Outlook 2007 Publisher 2007

InfoPath 2007

Communicator 2007

OneNote 2007

Access 2007 Groove 2007

Office Services

Office Live Meeting

Office Live Groove

Office Online

Office Outlook Live

Office GrooveEnterprise Services

Dynamics Services

Hosted Services

Other Hosted Services

Exchange Server

Other Windows Server Products

Office Servers

Office Forms Server 2007

Office SharePoint Server 2007

Office Project Server 2007

Office Project Portfolio Server 2007

Office Groove Server 2007

Integration

OfficeServers

Word 2007

Excel 2007

PowerPoint 2007

Visio 2007

MO

BIL

ITY

Vis

ua

l Stu

dio

SQL Server

BizTalk Server

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Some new ideas….

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© 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions,

it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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Microsoft RFID InfrastructureMaking RFID enablement… simple, easy, and economical!

Next Gen devices

Next Gen devices

Custom providersCustom providers

Device Service Provider Interface (DSPI)Device Service Provider Interface (DSPI)

RFID Infrastructure OM / APIsRFID Infrastructure OM / APIs

EPC provider

EPC provider

Designers, tools, and adaptersDesigners, tools, and adapters

StoreStore

EPC readerEPC

readerCurrent devicesCurrent devices

Engine and runtimeEngine and runtime

Partner solutions Partner solutions

Mic

ros

oft

RF

ID i

nfr

as

tru

ctu

reM

icro

so

ft R

FID

in

fra

str

uc

ture

LOB applications

LOB applications

Rules engineRules engine Device managementDevice management

SensorsSensors

Ha

rdw

are

Ha

rdw

are

• Strong device abstraction and device management

• Rich RFID event processing model

• An integrated development environment built on Microsoft® Visual Studio® .NET and open APIs

• Base set of tools for lifecycle management

• Pluggable architecture for customizable components

• A flexible, extensible, and a scalable framework that has support for standards

• Strong device abstraction and device management

• Rich RFID event processing model

• An integrated development environment built on Microsoft® Visual Studio® .NET and open APIs

• Base set of tools for lifecycle management

• Pluggable architecture for customizable components

• A flexible, extensible, and a scalable framework that has support for standards

EPC-IS interfaceEPC-IS

interface

Build Connections

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Microsoft Manufacturing Industry Partner Ecosystem

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Microsoft Platform For Supply Chain Execution

Documents and Portal

BPI and Workflow

Reporting Services

Analysis Services

Integration Services

Dynamic Applications

RDBMSFILE

OLAPXML

Source Gartner 2004

“Microsoft dominates plant floor for remainder of this decade.”“Microsoft dominates plant floor for remainder of this decade.”

“….production systems use Windows….. almost exclusively, including server based production management applications, displacing UNIX and other mid-range systems.”

“….production systems use Windows….. almost exclusively, including server based production management applications, displacing UNIX and other mid-range systems.”

Source ARC 2003

Mission critical, scalable, and enterprise-ready

Mission critical, scalable, and enterprise-ready

A complete all-in-one solutionA complete all-in-one solution

Trouble-free administration,self-tuning

Trouble-free administration,self-tuning

Highest security possibleHighest security possible

Superior cost of ownershipSuperior cost of ownership

Build Connections

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Microsoft Supply Chain Partner Ecosystem

Build Connections

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Source: Gartner EXP (2006)

Business process improvement

Controlling enterprise operating costs

Attracting and growing customer relationships

Improving competitive advantage

Improving competitiveness

Using intelligence in products and services

Security breaches and disruptions

Revenue growth

Faster innovation

Faster innovation and cycle times

Business Intelligence applications

Security technologies

Mobile workforce enablement

Collaboration technologies

Customer sales and service

Service Oriented Architectures (SOA)

Workflow management

Networking, voice and data communications

Virtualization

Legacy application modernization

Top 10 Business Priorities Top 10 Technology Priorities

Top Priorities of CIOs-Top 10 business and technology priorities in 2006/7

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Customer Business Challenge

Customer Business Challenge SolutionSolution Customer

Results/BenefitsCustomer

Results/Benefits

Plant Floor Visibility Invensys: NutraMax

• Lost productivity, limited visibility due to manual operations

• Lost productivity, limited visibility due to manual operations

• Invensys ArchestrA used Microsoft® Windows Server® platform, including Microsoft .NET, BizTalk® Server, SQL Server™ 2000, & standards-based S95/XML for rapid deployment to all business systems

• Invensys ArchestrA used Microsoft® Windows Server® platform, including Microsoft .NET, BizTalk® Server, SQL Server™ 2000, & standards-based S95/XML for rapid deployment to all business systems

• Real-time visibility of orders, materials, and production across all disciplines

• Increased plant production capacity/throughput

• Real-time visibility of orders, materials, and production across all disciplines

• Increased plant production capacity/throughput

Internal Microsoft Use Only

Improve Operations