MOTOROLA SOLUTIONS’ OPERATIONAL TRANSFORMATION
November 14, 2013
CHRIS ARMBRUSTER SENIOR DIRECTOR, BUSINESS TRANSFORMATION MOTOROLA SOLUTIONS
MIKE MORSCH SENIOR DIRECTOR, SUPPLY CHAIN SYSTEMS MOTOROLA SOLUTIONS
SPUN OFF MOBILE DEVICES
AND HOME
83 YEARS
2011 CHANGES
CALL TO ACTION FOR TRANSFORMATION + =
MOTOROLA SOLUTIONS
MOTOROLA MOBILITY
NOKIA SIEMENS NETWORKS
ALIGN PROCESSES & I.T. WITH MORE FOCUSED BUSINESS
PAGE 2
MOTOROLA SOLUTIONS
VERTICALS
PRODUCT + APPS + SERVICES
NEXT
GENERATION
CUSTOMER FOCUSED
SOLUTIONS DRIVEN
TECHNOLOGY LEADERS
GOVERNMENT ENTERPRISE
PCR iC&C PRIVATE
BB TETRA ASTRO iDEN ADC ENC RFID EMC SW
ENERGY & UTILITIES
RETAIL & HOSPITALITY TRANSPORTATION & LOGISTICS
MANUFACTURING & FIELD MOBILITY
EDUCATION & HEALTHCARE
GOVERNMENT
2012 REVENUE: $8.7 BILLION
MISSION-CRITICAL COMMUNICATIONS FOR GOVERNMENT AND ENTERPRISE CUSTOMERS
21,000 EMPLOYEES
PAGE 3
MANUFACTURING / SYSTEM INTEGRATION DISTRIBUTION 3RD PARTY DISTRIBUTION
PAGE 4
OUR SUPPLY CHAIN FOOTPRINT
PL
3PL
3PL
3PL
3PL
3PL
3PL
3PL 3PL
BREAKING THE LEGACY CYCLE
PAGE 5
LEGACY
DRIVES COMPLEXITY
BURDENS NEW
INITIATIVES
“DESIGN IN” RATHER THAN
ELIMINATE
INCREASES COMPLEXITY
BREAK HERE
REGIONAL &
SITE FOCUS
PERFECT THE PIECES
QUICKLY REACT
9 ERPS
DISPARATE HOME-GROWN TOOLS
INITIAL
STATE GLOBAL
PROCESSES
OPTIMIZE THE WHOLE
ANTICIPATE & SHAPE
1 ERP
INTEGRATED VCP APPLICATIONS
DESIRED
STATE
2011 - TRANSFORMATION BEGINS
PAGE 6
CAPABILTY
ROADMAP
FOUNDATIONAL
DEPLOYMENT
GLOBAL
ONBOARDING
PROCESS
MATURITY
PROCESS OWNERS &
CHANGE LEADERS
SUPERUSER
DEVELOPMENT
ALL PROCESS
PRACTITIONERS
COLLABORATION
INNOVATION
LOAD &
CHASE
PLAN &
EXECUTE
ANTICIPATE &
SHAPE
DELIGHT &
DISRUPT
ARCHITECT
THE SOLUTION
IMPLEMENT CORE VCP
APPLICATIONS
COMPLETE VCP
FOOTPRINT
FINE TUNE
APPLICATIONS
CRAWL WALK RUN FLY
RO
AD
MA
P
PE
OP
LE
P
RO
CE
SS
S
YS
TE
MS
MANAGING CHANGE GRADUALLY
PAGE 7
• AMBASSADORS OF
CHANGE
• ALREADY KNOW WHO
THESE PEOPLE ARE
• END USERS
• KEY FOCUS OF CHANGE
MANAGEMENT
• GLOBAL PROCESS
OWNERS
• FUNCTIONAL TRACK
LEADS
• SUPPLIERS, 3PLS
& MFG PARTNERS
• COLLABORATION
OPPORTUNITIES
TEAM STRUCTURE IS A CRITICAL SUCCESS FACTOR
PAGE 8
LEADERSHIP
PROCESS PRACTITIONERS
SUPERUSERS
TRADING
PARTNERS
CRAWL WALK RUN
PLANNING
PARADIGM ‘”LOAD & CHASE” ‘”PLAN & EXECUTE” ‘”ANTICIPATE & SHAPE”
TECHNOLOGY ORACLE 11i, SAP &
LEGACY PLANNING
ORACLE R12/11i, SAP,
VCP & LEGACY
ORACLE R12 &
VCP APPLICATIONS
PLANNING
MODEL SERIAL & REGIONAL/SITE
ALIGNMENT
SEMI-INTEGRATED W/ MIX
OF VCP & LEGACY
SINGLE PLANNING RUN
FOR ENTIRE SUPPLY
PLANNING
CYCLE PLANNING CYCLE OF
THREE WEEKS
PLANNING CYCLE OF
ONE WEEK
PLANNING CYCLE OF
LESS THAN 1 WEEK
CONSTRAINTS APPLIED WITHIN
EXECUTION WINDOW
APPLIED TO PLANNING
& EXECUTION WINDOWS
APPLIED & MITIGATED
DURING PLANNING
PLANNING TRANSFORMATION APPROACH
PAGE 10
PAGE 11
CUSTOMER
DISTRIBUTION
MANUFACTURING
SUPPLIERS
START FINISH
OUR PLANNING JOURNEY
CUSTOMER
DEMAND
MANUFACTURING DISTRIBUTION
ASSEMBLY
PRODUCT
SUPPLIERS
PARTS
CENTRAL PLANNING
PAGE 12
THE SIZE OF CHANGE REQUIRES AN INTERIM PROCESS
MANUFACTURING
SUPPLIERS
CUSTOMER
DEMAND
MANUFACTURING DISTRIBUTION
ASSEMBLY
PRODUCT
SUPPLIERS
PARTS
CENTRAL PLANNING
LEGACY PROCESS TEMPORARILY
COEXISTS WITH NEW PROCESS
GLOBAL PLANNING FOOTPRINT
PAGE 14
DEMAND
PLANNNG
DEMANTRA
S&OP
DEMANTRA
SAFETY STOCK
PLANNING
INVENTORY
OPTIMIZATION
SCENARIO
ANALYSIS
RAPID
PLANNING
DECISION
SUPPPORT
APCC
ORCHESTRATION &
FULFILLMENT
ORDER
MANAGEMENT
ORDER PROMISING
GOP
TRADING PARTNER
COLLABORATION
E2OPEN
SUPPLY
PLANNING
ASCP
FACTORY
PLANNING
PRODUCTION
SCHEDULING
PAGE 15
Create Forecast Position & Level
Demand
Dem
an
d P
lan
ner
Cen
tra
l P
lan
ner
DC
Pla
nn
er
Pro
du
cti
on
P
lnr
Bu
ye
r
Collect Plan Inputs
Validate Plans Load Data
Warehouse
Review
Delinquencies Analyze Revenue
Review CRSD- SSD
Gaps
Rev. Resched.
Exceptions
Adjust Sales Order
Priorities
Implement New SSD Rel. Planned Orders
to IRs
Review Exceptions
Review Total Site
Demand
Simulate Plans &
Scenarios
CRSD Plan
SSD Plan
Resched. Plan
Review Exceptions Rel. Planned Orders
to DJs
Rel. Planned Orders
to IRs
Optimize Prod.
Schedule
Clear
To Build
Rel. Planned Orders
to DPO
Update Supply
Commit
Run Plans
A
Plan
Safety Stock
INTERIM PROCESS
BLUEPRINT
= VCP LEVERAGE BLUE
BOX
Manage
Shortages
Apply
Fair Share
IO
DEMANTRA
ASCP
ASCP
ASCP
ASCP
APCC
ASCP ASCP
ASCP
ASCP ASCP ASCP
ASCP
ASCP RP
PS
A
APCC
APCC
PAGE 16
FIRST SSD
FOR NEW S.O.
DIRECT BUY
RELEASES &
SHORTAGE
MANAGEMENT
TRADING
PARTNER
COLLABORATION
SSD
IMPROVEMENT
TRANSFER
MFG TO DC
ATP (SSD)
SIGNAL TO
CUSTOMER
CONSTRAINED
EXECUTION (CRD)
SIGNAL TO
LEGACY TOOLS
UNCONSTRAINED
MATERIAL (CRD)
SIGNAL TO
SUPPLIERS
UNCONSTRAINED
BACKLOG (CRD)
SIGNAL TO
DISTRIBUTION
CONSTRAINED
MAKE-XFER (SSD)
SIGNAL TO
FACTORY
CONSTRAINED
OUR ASCP PLANS
PAGE 17
START – REGIONAL ERPS & LEGACY PLANNING TOOLS
CUSTOMER FACING SYSTEMS
SUPPLIER FACING SYSTEMS
GLOBAL (ENTERPRISE)
UNIQUE LEGACY
PLANNING TOOLS
SAP
AMERICAS (GOVERNMENT)
UNIQUE LEGACY
PLANNING TOOLS
ORACLE 11i
EUROPE (GOVERNMENT)
UNIQUE LEGACY
PLANNING TOOLS
ORACLE 11i
ASIA (GOVERNMENT)
UNIQUE LEGACY
PLANNING TOOLS
ORACLE 11i
PAGE 18
STEP 1 – EBS & CORE VCP APPLICATIONS FOR 1 SBU
CUSTOMER FACING SYSTEMS
SUPPLIER FACING SYSTEMS
TRILOGY
VCP CORE
ORACLE R12
AMERICAS (GOVERNMENT)
UNIQUE LEGACY
PLANNING TOOLS
ORACLE 11i
EUROPE (GOVERNMENT)
UNIQUE LEGACY
PLANNING TOOLS
ORACLE 11i
ASIA (GOVERNMENT)
UNIQUE LEGACY
PLANNING TOOLS
ORACLE 11i
PAGE 19
STEP 2 – ADD ASIA AND COMPLETE VCP FOOTPRINT
CUSTOMER FACING SYSTEMS
SUPPLIER FACING SYSTEMS
TRILOGY
DEMANTRA, ASCP, APCC, RP, IO, S&OP & PS
ORACLE R12
AMERICAS (GOVERNMENT)
UNIQUE LEGACY
PLANNING TOOLS
ORACLE 11i
EUROPE (GOVERNMENT)
UNIQUE LEGACY
PLANNING TOOLS
ORACLE 11i
PAGE 20
FINAL STEP – ADD EUROPE AND AMERICAS
CUSTOMER FACING SYSTEMS
SUPPLIER FACING SYSTEMS
TRILOGY
DEMANTRA, ASCP, APCC, RP, IO, S&OP & PS
ORACLE R12
LESSONS LEARNED
•HOW YOU GET THERE IS AS IMPORTANT AS
WHERE YOU ARE GOING
•END-TO-END BUSINESS MODEL MUST DRIVE
FUNCTIONAL SOLUTION
•GLOBAL OWNERSHIP ENABLES GLOBAL
PROCESSES
•CONFIGURE TO ORDER RAISES COMPLEXITY
•ASCP IS A POWERFUL ANALYTICAL APPLICATION
•PLAN COMPLEXITY DRIVES PROCESSING TIMES
•FREQUENTLY REVIEW INFRASTRUCTURE SIZING
DURING SOLUTIONING