Deployment of smarter commerce concepts in B2B electronics environments
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Transcript of Deployment of smarter commerce concepts in B2B electronics environments
1
BI-329 – Smarter Commerce in B2B Electronics:
Transforming Sales and Service to Increase Revenue and Customer Loyalty
Thorsten Schröer, IBM
Werner Bueker, SMA Solar
2
Agenda
Industry Introduction1
Smarter Commerce in a BtB Electronics world2
Smarter Commerce @ SMA Solar Technology AG3
Q & A4
3
The Electronics Industry varies in the adoption
speed and domains of Smarter Commerce
The planet really gets smarter when everything else
starts going to smarter business models
Consumer
Electronics
Semicon-
ductor
Network
Equipment
Medical
Devices
Power &
Automation Equipment
Office
Equipment
4
Power & Automation Equipment IndustryThe Industry at a Glance*
• Power and Automation Market is a very fragmented business with 5%
growth till 2015 with major shift Emerging Market >2x vs. Mature Markets
• Key market drivers include environmental awareness, renewable,
energy/process efficiency, services, emerging economies and power
• Market is based on slower sales cycles, longer product life cycles, BtB
selling process, high systems and product complexity, comfortable, safe,
and sustainable
• The competitive environment is characterized by a product centric approach
where leading technology and price are today the key differentiators
Mixing product, software and services and network connectivity is the next big wave for rapid re-alignment of market share and
profitability within the Power & Automation Equipment Industry.
From Product to
Services
Software
Analytics
Integration
Marketing
� Program & project management� End-to-end outsourcing� Usage-based pricing
� Control & management systems� Smart device capability
� Capturing data from sensors� Creating insight & action� New value creation
� Orchestrate an ecosystem� Network-based competition
� Changing behavior to optimize the usage of infrastructure
� Capturing end user demand
CE market sprinted ahead in transforming products into
services, BtB Electronics will follow fast. Smarter
Commerce can help to support this transformation.
6
Agenda
Industry Introduction1
Smarter Commerce in a BtB Electronics world2
Smarter Commerce @ SMA Solar Technology AG3
Q & A4
7
Smarter Commerce solutions addresses key
challenges of Power & Automation Equipment
manufacturers
MarketBuy
Service Sell
Customer
• Engineering Outsourcing
• Revenue and margin generation via service transformation
• Supply chain planning (S&OP)
• Supply Chain network and inventory optimization
• Supply Chain Visibility
• B2B integration
• Procurement Transformation
• Customer Awareness & Analytics
• Digital Marketing Optimization
• Cross-division selling
• Order Management & Fulfillment
• BtB shop solutions
• Payments & Settlements
Enterprise Sellers believe change is coming for B2B…but not yet, and not quickly…..but it will come faster and bigger then they think.
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A: Deployment Example Supply Chain (1/2)
Operational Complexity addressed via Smarter
Inventory and Service Management
The Situation
• One Global parts DC with multiple regional DC’s
• 40.000 SKU and total material movement for 9000 items per year
• 14 000 items in active price list with Inventory value 17 m€
• Excess safety stock inventories
Unpredictable customer service levels is key compelling reason to act.
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A: Deployment Example Supply Chain (2/2)
Operational Complexity addressed via Smarter
Inventory Management
Current
State
The Outcome
• From ~85% to ~94% service level with constant inventory
• Inventory reduction by ~4M€with constant service level of ~85%.
• ROI < 1 year
• Distribution network optimization provides further opportunities
1
2
3
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B: Deployment Example Marketing (1/2)
Automated nurturing works to progress
customers through their buying journey
+ 100 points = Automated eNurturing
Qualified Qualified Lead passed to Sales
Registers and downloads paper
Registers and downloads paper
10 points
Downloads ROI tool
15 points
Registers/attends event
50 points
Receives email for BAO ROI tool
5 pointsReceives email invite to BAO event
LDR calls to qualify
10 points
25 points
Prospect searches for ROI on solutions
5 points
0-10 POINTS 50-100 POINTS +100 POINTS
Awareness Interest Preference Action
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SWG Traditional Multi-touch Program
(3Q10 - Feb ‘11)
SWG Automated Response Nurturing
(3Q10 - Feb ‘11)
Emails Sent
Open
Click-through
Responses
2.38M emails/372 tactics*
7.37%
0.73%
0.03%
61K emails/207 tactics**
15.59%
3.63%
3.30%
2X
5X
100X
B: Deployment Example Marketing (2/2)Automated Nurture Accelerates Results
12
Agenda
Industry Introduction1
Smarter Commerce in a BtB Electronics world2
Smarter Commerce @ SMA Solar Technology AG3
Q & A4
22.05.2012
SMA Solar Technology AG – Energy that Changes
SMA Solar Technology AG
Disclaimer
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This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe
for, underwrite or otherwise acquire, any securities of SMA Solar Technology AG (the “Company”) or any present or future
subsidiary of the Company (together with the Company, the “SMA Group”) nor should it or any part of it form the basis of,
or be relied upon in connection with, any contract to purchase or subscribe for any securities in the Company or any
member of the SMA Group or commitment whatsoever.
All information contained herein has been carefully prepared. Nevertheless, we do not guarantee its accuracy or
completeness and nothing herein shall be construed to be a representation of such guarantee.
The information contained in this presentation is subject to amendment, revision and updating. Certain statements
contained in this presentation may be statements of future expectations and other forward-looking statements that are
based on the management’s current views and assumptions and involve known and unknown risks and uncertainties.
Actual results, performance or events may differ materially from those in such statements as a result of, among others,
factors, changing business or other market conditions and the prospects for growth anticipated by the management of the
Company. These and other factors could adversely affect the outcome and financial effects of the plans and events
described herein. The Company does not undertake any obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-
looking statements which speak only as of the date of this presentation.
This presentation is for information purposes only and may not be further distributed or passed on to any party which is
not the addressee of this presentation. No part of this presentation must be copied, reproduced or cited by the
addressees hereof other than for the purpose for which it has been provided to the addressee.
This document is not an offer of securities for sale in the United States of America. Securities may not beoffered or sold in the United States of America absent registration or an exemption from registration under theU.S. Securities Act of 1933 as amended.
SMA Solar Technology AG
Solar power continues to become more cost-effective
Sources: Federal Environment Ministry (pilot study 2010), German Solar Industry Association
(PV roadmap)15
Electricity price in euro cents per kilowatt hour
(Germany) > In Germany, in the past 10
years alone, the costs of
generating solar power have
dropped by over 60%.
> Solar power is already more
cost-efficient than conventional
household electricity.
> A long-term, affordable energy
supply requires further
subsidies over the short-term
in order to provide incentives
for additional investments in
system and storage
technology.
� The costs of generating solar power in Germany are already below the household electricity price.
1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary
SMA Solar Technology AG
SMA is the global market
and technology leader for
solar inverters:
> Comprehensive product
range
> Global presence
> Flexible production
> Service excellence
> Innovative strength
> Special corporate culture
Company story
16
1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary
SMA Solar Technology AG
The inverter is technologically the most important component in intelligent energy management systems
17
Sunny Boy converts direct current into alternating current and provides reactive power to stabilize the grid
Sunny Home Manager controls consumers and Sunny Backup system
Sunny Backup system provides for temporary storage and offers a grid-quality power supply with protection against outages
Bluetooth® radio-controlled socket with measuring function provides for the activation of appliances via the Sunny Home Manager
Bi-directional battery charger
SMA Sunny Portal for energy forecast, remote monitoring and home energy management
.
� With SMA products, solar power can be consumed directly in the place where it is produced.
6 1
23
2
34
5
5
6
4
1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary
1
SMA Solar Technology AG
SMA has a defined roadmap to reduce the specific costs of inverters
18
> Analysis of those components
that represent 80% of the
material costs
> Change of assembly and testing
processes
> Increase the speed of switching
and thus reduce the size of
windings
> Highly integrated
microelectronics
> Reduction of housing size and
packages
96%
99%
14%
27%30%
48%
93%
� We strive to reduce by half the specific costs of a solar inverter by 2015.
Cost reduction and efficiency increase Research & development focus
1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary
SMA Solar Technology AG 19
SMA is represented in 19 countries all over the globe
� In 2011, we achieved over 50% in sales abroad.
CanadaUSA
Chile
GermanyBelgiumCzech RepublicFranceGreeceItalyPolandPortugalSpainUnited Kingdom
AustraliaChinaIndiaJapanSouth KoreaThailandUnited Arab Emirates
South Africa
1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary
SMA Solar Technology AG
Professional sourcing
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SMA only produces to order
> Weekly forecast meetings
> Global sourcing
> Stock of critical components
� We doubled our annual production capacity to 11.5 GW within three
month and we follow a very fluctuating market.
Flexible production
Inverter output sold (in MW)
+40% −61% +109%
> Low capital intensity
> Outsourcing
> Temporary
employees
1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary
SMA Solar Technology AG
The customer clocks the SMA logistics chainThe customer clocks the SMA logistics chain
� Consumption control
where possible, demand
control where necessary
� Supplier Kanban
� Flexible suppliers 1:4
� Electronic supplier
integration
� VMI, C-parts
management
� Consumption control
where possible, demand
control where necessary
� Supplier Kanban
� Flexible suppliers 1:4
� Electronic supplier
integration
� VMI, C-parts
management
� Make to order
� Controlled range and
optimized inventories
� Kanban
� Delivery without storage
� Targeted material flows
� Transport and
production-optimized
packaging
� Make to order
� Controlled range and
optimized inventories
� Kanban
� Delivery without storage
� Targeted material flows
� Transport and
production-optimized
packaging
� Automated order
entry
� Sensible automation
� Forecast with optimal
utilization of customer
knowledge
� Consolidation of
locations
� Freight bundling
� Automated order
entry
� Sensible automation
� Forecast with optimal
utilization of customer
knowledge
� Consolidation of
locations
� Freight bundling
� Coupling of planning for orders, production and material requirements from
customer to supplier through integrated IT systems
� Lean logistics (e.g., minimum handling, short distances, flow principle,
synchronization)
� Coupling of planning for orders, production and material requirements from
customer to supplier through integrated IT systems
� Lean logistics (e.g., minimum handling, short distances, flow principle,
synchronization)
Components of the SMA logistics strategy
Suppliers Production Customers
1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary
21
SMA Solar Technology AG
Order and Product Workflow
22EPC = Engineering-Procurement-Production, SPC = Sunny Pro Club
Final User
SMA production
EDI
Order Manageme
nt
OrderWholesalers/EPCSAP
ERP /CRM
OOC - Websphere Commerce
fax / phone
Sunny Pro Club - Websphere
Commerce
Installer
1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary
SMA Solar Technology AG
Target Markets
23Source: SMA Order Processing und SPC ;
MPS = Medium Power Solutions, OGS = Off-Grid Solutions, SPC = Sunny
Pro Club
AsiaAmerica
Europe
Australia
America
> Wholesalers/EPC MPS/OGS
> Installer (SPC)
Europe
> Wholesalers/EPC MPS/OGS
> Installer (SPC)
Asia
> Wholesalers/EPC MPS/OGS
Australia
> Wholesalers/EPC MPS/OGS
Sunny Pro Club Members
(Installer)
Wholesaler/EP
C
Africa
Africa
> Wholesalers/EPC MPS/OGS
> Installer (SPC)
1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary
SMA Solar Technology AG
Milestones
24
StartMo 06.12.10
EndDi 11.12.12
January April July January May July October
Planning finishedMi 16.02.11
OOC-I IntersolarMi 08.06.11
OOC-I (R1.1)Do 14.07.11
OOC-I (R1.2)Fr 07.10.11
OOC (R2.0 Beta)Di 01.05.12
OOC (R2.0) IntersolarMi 12.06.12
OOC (R2.1)Mo 23.07.12
OOC (R3.0) MPS USADi 27.11.12
Today
> November 2010: Project idea: a call from a board member
> December 2010: Pre-Project Start
> February 2011: Pre-Project Decision for IBM WebSphere Commerce
> February 2011: Project Start with Scrum
> June 2011: Presentation Online Order Center at Intersolar 2011 as a Information
portal
> July 2011: Go Live for registered Customer
> October 2011: New Features and Languages
> May 2012: R2 beta Shop for SMA-Subsidiaries (incl. orders from sold to)
> June 2012: R2 Shop for Wholesalers MPS, OGS, Subsidiaries RoW (without
USA)
> From July 2012: Start Subproject for USA, enhance functionality (document
management, payment)
MPS = Medium Power Solutions, OGS = Off-Grid Solutions, SPC =
Sunny Pro Club
1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary
SMA Solar Technology AG
Project Start
Classic Project Approach
25
Database LayerDatabase Layer
Application LayerApplication Layer
Presentation LayerPresentation Layer
Pro
ject T
ime
L
ine
Pro
ject T
ime
L
ine
SMA internal Customer review
1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary
SMA Solar Technology AG
SCRUM – agile project realization
26
1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary
SMA Solar Technology AG
Scrum Project Approach
27
Project Start
DBDB
Appl.Appl.
Pres.Pres.
DBDB
Appl.Appl.
Pres.Pres.
DBDB
Appl.Appl.
Pres.Pres.
DBDB
Appl.Appl.
Pres.Pres.
DBDB
Appl.Appl.
Pres.Pres.
DBDB
Appl.Appl.
Pres.Pres.
DBDB
Appl.Appl.
Pres.Pres.
1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary
SMA Solar Technology AG
Summary
28
S T R E N G T H S
> SMA : Where you have an B2B and B2C business
> SMA : Process automation
> Customer : Better visibility of order history, tracking, ….
> Scrum : When you have to be flexible during the project
> Scrum : Better teamspirit – higly motivated team
W E A K N E S S E S
> Where Websphere Commerce ist not the leading system
> SMA : Well supported customer
> SMA : Element of the logistic strategy
> Customer : Processintegration
> Scrum : When integrate and trust the SCRUM-Team
> Scrum : Better stakeholder feedback / interaction
> SMA : Integrate the project into an e-business strategy
> SMA : Integrate the Order Processing and Logistic Team
> SMA : Complex technical enviroment
> Customer : Security issues (2 Factor)
> Scrum: Missing understanding of agility in adjected groups
O P P O R T U N I T I E S T H R E A T S
1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary
SMA Solar Technology AG 29
Thank you for your interest!
SMA Solar Technology AG 30
SMA Solar Technology AG
Project outlook according to Gartner Hype Cycle
31
1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary
SMA Solar Technology AG
System Context
32
33
Agenda
Industry Introduction1
Smarter Commerce in a BtB Electronics worldSmarter Commerce in a BtB Electronics world2
Smarter Commerce @ SMA Solar Technology AG3
Q & A4
Q&A
34©
2012
Join us in the Demo Zone at 18:30 on Tuesday to meet our
industry GM and other electronics execs
Ask Thorsten after the session if you would like to see a
demonstration of Smarter Commerce in action for
Electronics
Find out more…