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Adaptec Inc. Cross-Enterprise Integration

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Adaptec Inc. Cross-Enterprise Integration – PowerPoint PPT presentation

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Date added: 13 September 2019
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Title: Adaptec Inc. Cross-Enterprise Integration


1
Adaptec Inc. Cross-Enterprise Integration

2
Agenda
  • Who is Adaptec?
  • TSMC Virtual Fab
  • Customer Value Proposition
  • Extricity Alliance Solution
  • Extricity Positioning in SCM Solutions
  • Business Drivers and Benefits from Alliance
  • Adaptecs next steps

3
Whos Adaptec
4
Adaptecs Three Business Scopes
  • Storage Networking Solutions
  • Fibre Channel, InfiniBand and Ethernet-based
    storage fabric technologies
  • Direct Attached Storage
  • Market leadership in the SCSI
  • and PCI RAID controller
  • Host-based RAID controller
  • Software Product Group
  • Easy CD Creator, Toast, GoBack
  • software for CD recording,
  • productivity and data protection
  • markets. In June 2000, Adaptec
  • announced it will spin off this
  • division.

5
Business Fundamental
  • 115 distributors
  • thousands of VAR
  • Sell to end-users

Source www.adaptec.com
6
Adaptecs Virtual Factory
  • In 1997, Adaptec implemented Extricity Alliance
    to coordinate the production of its IC products
    through several contract-manufacturing partners
    as fabless semiconductor virtual factory
  • Automate shared business processes
  • Engineering design
  • Demand forecast
  • PO(SAP) design specs (PDM)
  • Acknowledgement more request
  • WIP update
  • Shipment notice
  • (TSMC-gtAdaptec-gtASAT)

7
TSMC Virtual Fab
8
????
  • ?????????????????Vertically Integrated(?IBM)?
  • ?????????????
  • ???????????????????????????
  • Internet ??????????(Virtual fab)?
  • ???????????????,?????????,??????,??????????????

9
?????????
??
??
???
??
??
??
??
??
??(??)
??
??
??,??
IC??
10
????
  • ???????,?????????
  • ??????????????????????
  • ????(IC????)????Internet?????????,???????????
  • ???????????????
  • ????????????,?????,??????,??????

11
Customer Value Proposition Business Benefits
Desired are Translated into SCM Requirements
12
Benefits of End-to-End Value Chain Solution
  • OEMs
  • Quicker product to market
  • Less investment
  • Faster response to competitor threats
  • Lower cost to manufacture
  • Lower cost to design
  • Lower cost of failure
  • Suppliers
  • Increased volume
  • Integrated stakeholder
  • Rationalize supply
  • Parts reduction
  • Lower errors
  • Lower costs
  • Contract Mfrs.
  • Increase capacity for sales
  • Increase capacity for new products
  • Re-deployment of assets
  • Plant rationalization
  • Less non-value add
  • Decrease asset base
  • Distributors
  • Increase customer focus
  • Stocking rationalization
  • Reduced inventory
  • DC rationalization
  • SKU reduction
  • Decrease asset base
  • Customers
  • Customer integration
  • POS data
  • Continual replenishment
  • Lower total cost to service

13
OEMers Design Process
  • A major OEM recently announced (with public
    fanfare), the introduction of four new product
    lines. The same OEM is notified by his
    distributor that 16 components within these new
    product lines are to be discontinued because they
    have reached the end of their product life-cycle.

Dist
Purchasing
OEM Engineer
Prototype
Testing
Production
Planning ?
Ship
  • Charged to develop new product
  • Selects component based on prior experience
    knowledge

Sales Marketing
Result The OEM, after having spent time and
money developing the new products, identifying
parts suppliers, performing sales and marketing
functions is now forced to spend millions in the
re-design, re-identification and re-sourcing of
the new component parts.
13
2000 Arthur Andersen All rights reserved
14
What if the engineer had been notified at the
start of the component selection process that the
components selected were at the end of their
product life cycle?
  • 1. How can the entire supply chain look at the
    same BOM at the same time?
  • 2. If this is what I want to build by Thursday,
    where can the parts be sourced? From whom can we
    multiple source?

Distributors
OEM
BOM ____ ____
ECO, QOH, OTD AVL
ECOs
Engineer
Adaptec
AVL
Purchasing
OTD
Production
Contract Mfrs
By sharing information in real-time, the supply
chain no longer needs to waitdistributors learn
immediately the engineers requirements and can
plan accordingly. XX is the only electronics
industry player that codifies and automates the
highly individualized and non-customized supply
chain and decision support requirements of an
OEM.
15
Contract manufacturers, on the other hand, face
a different type of pain
  • 1. They need to be able to aggregate multiple
    BOMs from one OEM
  • 2. They need instant visibility to ECOs, AMLs,
    collaborative purchasing, notification and
    management

Team A
BOM
Q What BOMs do I have?
Adaptec
C.M.
Team B
BOM
A These 3 for this OEM
BOM
Team C
Adaptec, as a value chain optimizer, provides
real-time supply chain management tools that
allow contract manufacturers to reduce
inventory increase cycle times decrease
production problems related to parts and
materials identify and resolve production
delivery and logistical problems early
OEM Design Teams
2000 Arthur Andersen All rights reserved
16
Distributors and manufacturers face similar
challenges to a contract manufacturer. However,
the aggregation of data and access to accurate
customer data is increased.
OEM
CM
Design Team
Design Team
Design Team
eConnections
Distributor
BOM
BOM
BOM


CM
OEM
  • Adaptec allows the distributor to effectively
    manage forecast and planning data with customers
  • Provide real-time visibility
  • Visibility to ECOs, AMLs
  • Communication with C.M.
  • BOM cleansing

Design Team
Design Team
Design Team
BOM
BOM
BOM


17
Super compressed product life cycles, a
proliferation of customers and competitors with
an unyielding demand for mass customization
requires a solution that everyone can plug into
Electronic Component Mfr.
Designers Engineers
OEMS
Designers Engineers
Contract Mfrs
Designers Engineers
Adaptec
Distributors
Mfr Reps
VARS
Logistics Providers
Dot Coms
  • Industry Pains
  • BOM Management
  • Forecast sharing
  • Engineer Charge Orders
  • No-visibility to exceptions
  • such as ATB, QOH, OTD
  • Aggregation of BOMs across customers
  • Demand Visibility

17
2000 Arthur Andersen All rights reserved
18
Extricity Alliance Solution
19
Extricitys Four Solutions
  • B2B software platform enables companies to share
    information and manage commerce among business
    partner over the internet
  • RosettaNet, eRetail, Net Markets, Enterprise
  • RosettaNet is a consortium of major Information
    Technology, Electronic Components and
    Semiconductor Manufacturing companies working to
    create and implement industry-
  • wide e-business process standards.
  • Net markets concentrated on content
  • and community want to enable commerce
  • and provide value-added services such
  • as order, inventory and logistics mngt
  • eRetail help to integrate the supply side
  • of B2C environments for better planning,
  • forecasting, order management,
  • fulfillment, order tracking, and returns
  • management with their trading partners,
  • and to all partners in their e-business supply
    chains.

20
2000 Arthur Andersen All rights reserved
21
2000 Arthur Andersen All rights reserved
22
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23
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24
Case for Action - Extricity
  • Value Proposition
  • Extricity B2B is the first platform for B2B
    relationship management that powers and manages
    the full spectrum of interactions among
    businesses over the Internet
  • Proposed Scope Of Alliance
  • Software Vendor and Business Partner that would
    join xx offering to platform offering to
    strengthen buyer and supplier relationships
  • Business Description
  • Extricity provides eBusiness process
    standardization and communication tools for the
    component semiconductor industry through
    accelerated partner integration
  • RossettaNet based eCommerce partner/alliance
    integration software developer
  • Features Functionality
  • Semiconductor/electronics component market
    specific solutions
  • Current Alliance Partners
  • IBM
  • Manugistics
  • SAP
  • Aspen Technology
  • Ariba
  • Commerce One
  • OnDisplay
  • Need2Buy.com

25
Enterprise Application Integration (EAI)
  • Extraction/insertion of information to/from
    business applications
  • Transformation of information into different
    forms
  • Synchronization of state among independent
    information system
  • Process of tying together multiple applications
    to support the flow of information across
    multiple business units and IT systems
  • Integration products fall into several categories
  • Messaging middleware IBM MQ Series Microsoft
    MessageQ
  • Business-process integration Vitrias
    BusinessWare
  • Multiple businesses integrate their systems in an
    extended supply chain.
  • EAI Competitors
  • WebMethods
  • Viewlocity
  • Vitria Technology
  • Tibco

26
Risks and Benefits as Partnering with Extricity
  • Risks
  • Adaptec need skills to help Extricity developing
  • Possible resistant change from EDI to EAI from
    big OEMs and distributors
  • Suffer time to market, if any other solutions
    existed
  • Expose best practice or competitive advantage
    with competitors while product commercialized
  • Discounted maintenance, upgrade and alliance with
    other SCM and eMarketplace if its failed
  • Benefits
  • Customize according to business operation model
  • No need to change and fit into the solution
  • First mover advantage to attract attention from
    media partners
  • Strengthen effective partnership relationship
  • Chance to setup standard or form a partner
    networking
  • Inexpensive to develop customized solution

27
Implementation Strategy
  • Understand end-to-end value chain
  • Identify competitive advantage and redefine
    business operation model (maybe refer to Best
    Practice)
  • Map desired offerings to IT infrastructure,
    information, data format and functionality across
    departments and enterprises
  • Prioritize functionality (e.g. identify quick
    win)
  • First, identify few seeds of supplier, contract
    manufacturer to roll out buyer side
  • Secondly, roll out to Distributors and OEM
    seller side
  • Change enablement if theres any process changed
  • Benchmarking for continuous improvement

28
Extricity Positioning in SCM Solutions
29
Extricity Positioning in SCM Solution
2000 Arthur Andersen All rights reserved
30
SCM Functionality Matrix
No Functionality Requirements
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31
Prioritization Map SCM Functionality Requirements
Credit Verification
Payment Processing
Bid/Ask
Send Product Design Specification
Data Sheets
Catalog/Content Management
Performance Measures
Integration Enablers
Demand Exceptions
Fulfillment Visibility
Reverse Logistics
Workflow
eProcurement
Extricity
Collaboration Enablers
Standardization
RFP/RFQ
Product Substitution
Personalization/ Recommendations
Capable to Promise
Immediate Need Short-Term Need Long-Term Need
Profitable to Promise
Functionality is based on Best Practices in
Supply Chain Management and xx requirements.
2000 Arthur Andersen All rights reserved
32
Business Drivers Alliance Benefits
33
Business Drivers for Digital Markets
Inefficient Channels
Supply Chain Inefficiencies
Time Sensitive Products
Digital Market Opportunities
Volatile Market Conditions
Complex Ordering Processes
Supplier and/or Buyer Fragmentation
Fulfilment and Status Tracking Difficulties
Sourcing Problems
34
Supply Chain Management Principles
  • The vision is a highly responsive and integrated
    end-to-end value chain synchronized to the
    customers demand rate, with business processes
    that develop, produce and distribute products
    worldwide in short lead times.

2000 Arthur Andersen All rights reserved
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2000 Arthur Andersen All rights reserved
36
?????
  • ?????Alliance????????????????,ROI1400 ?
  • ????????????,????????real time??,???????
  • ??non-value-add????????????????????,??????,??????
    ?????????
  • ??lead time?????????,??????25,?PO??? ???????
  • ??WIP????circle time,??WIP,??carrying cost?
  • ????????????????,??????capacity planning?

37
Reduced Lead Time
  • Automate shared business processes
  • Engineering design and test
  • Demand forecast
  • PO(SAP) and Design specs (PDM)
  • Acknowledgement request more
  • WIP Updates
  • Shipment notice
  • Query ordering and manufacturing status to
    minimize out of stock or replenishment

38
Eliminate EDI Drawbacks
  • Cant handle transaction complexity or a rich
    variety of data
  • Document centric not Process-oriented approach
  • Fixed and inflexible format so that partners need
    to change their internal system
  • Limited partners communicating
  • Cost is more expensive than platform 1501
    transaction fee per hour affordable to smaller
    players
  • Data need to re-keyin which is time consuming and
    error happened

39
Adaptecs Next Steps
40
Adaptecs Next Steps
  • Rollout to most of its suppliers
  • Rollout to its OEM and distributors
  • Add new processes
  • Implement website multi-channel
  • Improve Partner Relationship Management
  • eNable B2B commerce
  • Expand to eMarketPlace?

41
High Performance Value Chain Progression...
Value Chain Optimization
Best practice companies perform all of the
activities associated with value chain
optimization
  • Manage Integrated Supply Chain End-to-End
  • Total End-to-End Thinking
  • Simplification and Standardization of
  • Processes
  • Facilities
  • Product Design
  • Enterprises Established
  • Managed Customer Integration
  • Joint Product Design
  • Dynamic Supply Chain Synchronization
  • Pull Most Products
  • Minimum Inventory
  • Minimum Parts
  • Worldwide Sourcing
  • Worldwide Distribution
  • Enterprise-wide Capacity Management
  • Fully Integrated End-to-End Information Systems
  • Information Excellence
  • Customers

Advanced Value Chain
  • Advanced
  • Integrated Cells
  • Mfg. Reliability
  • Mfg. Flexibility
  • Capacity Usage
  • Process Rationalization
  • SCM Systems
  • Make to Demand
  • Expanded Customer and Supplier Integration
  • VMI
  • EDI
  • EFT
  • ABC of products
  • Demand Management and Communication Processes
  • Product Complexity Simplification
  • Synchronized Processes and Cycle Times
  • Product Design for Manufacturing
  • Expanded KPI Reporting
  • Distribution Load planning

Value Chain Basics
  • Start Supply Chain Improvements
  • Cells
  • Mfg. Reliability
  • Mfg. Flexibility
  • Shorter Lead Times
  • Shorten Lot Sizes
  • Process Integration
  • Suppler Development
  • Team Based Improvement Processes
  • SCM Education and Training
  • Produce to Replenishment Targets
  • Pull Logic with Several Products
  • Reduce Inventory
  • Introduce SCM KPIs
  • Improve Cost Structure
  • Awareness of Information Support Needs
  • Value Chain KPMs
  • ABC Awareness

Value Chain Readiness
  • Expand Quality Processes
  • Produce to Forecast and Monitor Demand
  • Basic Supplier Cooperation
  • Recognized SCM Champion
  • JIT Pilots
  • Growing SCM Awareness and Practitioners
  • Several Low Risk SCM Successes
  • Basic Customer Collaboration
  • Begin Learning Organization
  • KAIZON efforts
  • Some Cells
  • POS
  • CRP
  • QR

Value Chain Innocence
  • Consistent Quality
  • Automation of Processes
  • Few SCM Practitioners
  • SCM Awareness
  • Basic Operational Systems
  • Quality Teams
  • Produce to Forecasts

42
AA Supply Chain Service Offerings for the eWorld
Strategy Formulation
Collaborate / Plan
Procure
Fulfill
  • Transportation
  • Route Optimization
  • Warehousing
  • 3PL / 4PL
  • Inventory Management
  • Order Management
  • Supply Chain Event Management
  • e-Procurement
  • indirect
  • direct
  • Auctions
  • Strategic Sourcing
  • Network Analysis and Design
  • Demand Planning
  • Inventory and Replenishment Planning
  • Manufacturing Planning / Finite Scheduling
  • Supply Planning
  • Available / Capacity to Promise (ATP/CTP)

Tool / Software Selection
Business Model Design Implementation
Change Management
ERP / Technology / Integration
43
Thanks
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