Terry S. Kline

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Terry S. Kline Process Information
Officer Global Product Development Chief
Information Officer Asia Pacific
February 8, 2007
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Outline

• General Motors Complexity
• The ISS Organization
• ISS / Business Strategy Alignment
• Process Information Officer (PIO)Roles
• Chief Information Officer (CIO) Roles
• Driving Transformation and Innovation
• Transformation of GM to a Global Corporation
• Challenges and Opportunities with Globalization
• Role of Information Technology

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Global Manufacturing Facilities
Windsor, ONT
Eisenach, Germany
Bay City, MI
Bedford, IN
STSW, MI
Janesville 1 3, WI
Gothenburg, Sweden
Grand Blanc, MI
Romulus, MI Eng
Soedertaelje, Sweden
Orion, MI
Wixom, MI
Willow Run, MI
Boryong, Korea
JV
Warren, MI
Livonia, MI
Marion, IN
AMT South Lyon, MI
Muncie, IN
Detroit-Hamtramck, MI
Messena, NY
Muncie, IN
Grand Rapids, MI
Fort Wayne, IN
Pittsburgh, PA
Fredericksburg, VA
Strasbourg, France
Aspern, Austria
Linden, NJ
Wilmington, DE
Szentgotthard, Hungary
Toledo, OH
Azambuja, Portugal
Bowling Green, KY
Defiance, OH
Oklahoma City, OK
Arlington, TX
Ramos Arizpe 1, Mexico
Mansfield, OH
Ramos Arizpe 2, Mexico
Ramos Arizpe, Mexico
Ramos Arizpe, Mexico
Bekasi Indonesia
Port Melbourne, Australia
Liuzhou, China
181 Plants in 33 Countries
Mogi das Cruzes, Brazil
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GSSM is a complex business
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GPSC Global Complexity
3,200 Suppliers
15,000- 20,000 New Parts
160,000 Total Part Numbers
7.4B Logistics / 13 B Indirect ME Spend
Utilize 340 Sea Ports, 667 Logistics Service
Providers
86 Billion in Direct Material Purchases
Daily 82 Tons of Parts, 8600 Inbound Trucks to
176 Plants
Annually 9.3M Vehicles via 132 Vehicle DCs to 19K
Dealers
Managed by 4,000 Employees in 40 Countries
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Global Product Development Diversity
Compact Cross Over
Luxury RWD
Trollhättan, Sweden
Oshawa, Canada
Coventry, England
Pontiac, USA
Warren, USA
Gothenburg, Sweden
Indianapolis, USA
Fujisawa, Japan
Rüsselsheim, Germany
Bupyong, South Korea
Los Angeles, USA
Toluca, Mexico
Shanghai, China
Bangalore, India
São Paulo, Brazil
Port Elizabeth, South Africa
Melbourne, Australia
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ISS Global Organization Chart
GM CEO R. Wagoner
NA President
GME President
AP President
LAAM President
GM CIO Szygenda
Chief Systems Technology Officer
Process Information Officers
Global Process Leaders
Business Unit Chief Information Officers
CIO
CIO
CIO
CIO
GSSM
GSSM
Services Information Officer
Product Development
Product Development
GPSC
GPSC
Chief Strategy Officer
Manufacturing Quality
Manufacturing Quality
Powertrain
Powertrain

• IT Business
• Management
• Finance
• HR
• Purchasing
• Legal
• Planning
• Communications

Business Services
Finance HR Legal Communications
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The Business is Changing

• Globalizing to Drive Business Performance
• -Dedicated Horizontal Process Officers
• -Strengthening the Horizontal is Key to
  Globalization and
• Performance Improvement Plans (GPD Footprint
  Alignment,
• Supplier Footprint Optimization)
• -Shift from Regional to Global (Horizontal)
  Leader One
• Addressing Emerging Markets and Global Growth --
  Asia, Middle East, Africa, Russia .
• Driving to Structural Cost Reduction Objective
• - Leverage GMs scale
• - Common processes and systems
• - Tighter integration with Customers, Suppliers,
  Dealers

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Reinventing
Charles Kettering If you have always done it
that way, it is probably wrong.

• We have a unique opportunity to participate in
  the
• rebirth and transformation of General
  Motors.
• We are truly reinventing ourselves and how we
  will
• work in the new world.
• ISS is key to the rebirth and transformation.
• Things that come too easily, just as easily Go!
  This is
• going to be hard work.

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PIO / CIO Roles
Global Functions
GMLAAM
GMAP
GME
GMNA
Single Integrated Plan IT Broker, Single Point
Representing Region
Solution Delivery Process Strategy, Standards,
Solutions

• Big Rules
• CIO is responsible for total ISS integrated
  accountability for the business.
• CIO ensures operations meet business needs for
  business continuity, SOX,
• regulations, etc.
• PIOs own development, deployment and sustaining
  of all applications.
• PIOs and the SIO own all Global Service
  Contracts.
• Horizontal cost will become primary focus we
  will manage Global Service
• Contracts horizontally.

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ISS is Changing to Align with the Business

• Key ISS Implications
• Strengthening the Horizontal Organization in ISS
  to align with Business
• Strengthening Financial Tracking on the
  Horizontal
• Global Service Contracts (GSCs) for all IT
  services managed by PIOs and SIO
• Standardized work performed by ISS employees and
  suppliers
• Local/sector requirements limited to regulatory
  and business model specifics

• Third Generation
• 2006?
• Further implement common improved GM business
  processes and systems
• Improved pricing and quality
• Further optimize competition among IT suppliers
• Require common IT processes to be followed by all
  IT suppliers and ISS employees
• Increased standardization to implement more
  robust processes

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Our GPD Globalization Journey Continues to Drive
Virtual Vehicle Development Globalization
26 CAD/CAM SYSTEMS
CGS, CADAM/ CATIA, and UG
1987
1988
1990
UG CGS
1992
1994
1996
Unigraphic Single core system
Converge Car Engineering
1998
Merge Car/Truck Tech Center Engineering
2000
Globalize Design Center
iMAN Begins
Globalize Engineering Global ADTs
2001
Converge Powertrain with Product Development
Drive Global Vehicle Development Process
Last Seat of CGS
2002
100 Vehicle Programs in iMAN
2003
2004
Product Vision
2005
2007
Collaboration
Global Status Timing
2006
Virtual Vehicle Development Technology
Innovation to Drive Globalization
GDM / SHERPA
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Global Product Data Management

• Global data management
• and access
• From 700 users at 2
• sites in 2 countries in
• 1998 to over 28,000
• Teamcenter users at
• 29 sites in 15 countries
• today
• Globally synchronizing
• 10,000 TeamCenter
• items a day

Integrated data, applications and processes
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GM Teamcenter Engineering Global Product
Development Data Highway
WVEC
PVEC
Saab
Opel

10-19 Items per Day
20-49 Items per Day
50-99 Items per Day
100-199 Items per Day
200 Items per Day
2004 Nineteen GM sites and ten Supplier/JV
sites are using Teamcenter Automotive Edition
(TcAE) in production All sites are sharing data
using TcAE Multi-Site Globally Synchronizing
10,000 items a Day
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Global Product Development Blockpoint
16 Countries United States Canada Mexico Brazil Gr
eat Britain Germany Sweden France Italy Austria So
uth Korea India China Japan Australia South Africa
105 Possible Applications Dependencies
Integrate with versions, Synchronous Events,
Platform Standards
GM, JVs, Suppliers
16730 managed seats
Goal Zero LEH
3 OS Platforms HPUX Sun Solaris Windows
Twice a year
23 sites
10 Time Zones GMT GMT 1 GMT 5.5 GMT 8 GMT
9 GMT 11 GMT - 2 GMT - 5 GMT - 6 GMT - 8
2 3 Waves (Weekends)
Multi Vendor Support Environment
040227 v1.1
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Outsourcing Journey at General Motors
First Generation 1984-1996
Common Enterprise Management Processes
Second Generation 1996-2003
Third Generation 2003?
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3rd Generation Outsourcing Model

• 3rd Generation
• 2004
• Global contracts
• Small number of suppliers providing services as
  an integrated team
• Thin-layer model
• Standardized work based on industry practices

• 2nd Generation
• 1996 2004
• Contracting done regionally
• Moving towards standardized work
• One dominant vendor (EDS)
• Numerous other vendors introduced with small to
  medium size contracts

• 1st Generation
• 1984 1996
• No contracts
• Little standardized work
• All service performed by EDS

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-
-
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Global Service Contracts Have Been Put In Place
Sales Marketing Systems
Sales, Service Marketing
Enterprise-Wide Application Integration Management
Enterprise-Wide Infrastructure Integration Managem
ent
OnStar System
OnStar
Dealer Systems
Middleware Systems and ISS Tools
Common Applications
Service Parts Systems
Application Integration Management
Integration Management
GM OnLine
Workstations
SAP Integration Management
Engineering Design Workstations
CAD Visualization Systems
Product Development
Plant Floor PC Operations
CAE CAT Systems
Mainframe Operations
Servers
Electrical Controls Systems
Server Operations
Business Planning Systems
WAN, MANs, CAN, Video
Networks
Integration Management
Voice (with cellular)
Real-time plant floor systems
Manufacturing Quality
LANs Stations Services
Non-real-time manufacturing systems
Plant Floor Network Operations
Quality systems
Infrastructure Integration Management
Infrastructure Integration Management
Integration Management
Order Fulfillment Systems
WWP OTD
Purchasing Systems
Purchasing Integration Management
Production Control Logistics System
Supplemental Services
Integration Management
EDI
Application Management
Business Services
Human Resource and Corp. Staff Systems
Infrastructure Management
Finance Systems
Integration Management
Integration Management
Other Services
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Thin-Layer, Multi-Supplier Model
Application Management
Infrastructure Management
GM ISS
Integration Mgt Supplier
Integration Mgt Supplier
SSM Integration Mgt Supplier
Performing Supplier
Performing Supplier
Performing Supplier
Performing Supplier
Performing Supplier
Performing Supplier
PD Integration Mgt Supplier
Performing Supplier
Performing Supplier
Performing Supplier
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Role of Information Technology

• Anticipate business requirements (stay off the
  critical path)
• Shadow the business organization
• Be linked into the business
• ISS Strategy is an enabler of the Business
  Strategy
• Know the business (the PIO role)
• Integrate the process threads the one
  organization
• that sees the whole company (CIO role)
• Business leaders need to support and drive the
• ISS new investment (Portfolio Process).
• Drive transformation and innovation
• Cross-functional process improvements are
• critical

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Globalization Challenges

• Suppliers are not naturally organized to
  support
• global contracts
• Working Global is Hard (Time Zones, Travel,
  etc)
• Rules of Engagement need to be established
• PL - Country - Regional
• Working Global is not natural for most
  suppliers
• Globalization does not mean centralization
• One common Bill of Information Technology is an
  
• enabler

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To achieve our objectives and enhance our
competitive positions, we will launch six
Innovation Big Ideas
Establish Next Generation Collaborative Platform
Develop an Innovation Scouting system
Enhance our lead in CAE capability in the
Industry
Establish Industry leadership in ECS technology
for next generation Networked Car
Deploy knowledge management advanced
visualization to accelerate VDP and drive re-use
Deploy a scalable technical infrastructure
advanced computing capability
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Summary

• Keeping the place running has to be routine,
• information technology operations has to be
• a given
• Know the Business
• Support the business strategy
• Organization linkage
• Anticipate the needs
• Drive innovation by working with suppliers

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Questions?
ONE
G
LOBAL TEAM
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