Digital Strategy @ Kingspan · Digital Strategy @ Kingspan A process approach to building Digital...
Transcript of Digital Strategy @ Kingspan · Digital Strategy @ Kingspan A process approach to building Digital...
Digital Strategy @ KingspanA process approach to building Digital Skills & Capabilities
Tuesday 09 September 2014
Eur Ing John Shaw C.Eng FIEI PE BE MBA PMP
Autumn Summit 2014Croke Park Conference Centre
Enterprise Capability: Enabling Digital Business Leadership
Introduction
Kingspan is the world leader in
Energy Efficiency Solutions
Every Business is a Digital Business
Sustainable Cloud
is on the way
• Kingspan Vision
• Drivers for Change
• Options and approach
• Progress to date
• 2017
• Sustainable Cloud ?
Digital Strategy @ Kingspan
• Kingspan Vision
• Drivers for Change
• Options and approach
• Progress to date
• 2017
• Sustainable Cloud ?
Abu Dhabi Midfield Terminal Design, UAE
Insulated Panels
Digital Strategy @ Kingspan
• Kingspan is recognised as the Global Leader in Energy Efficiency Solutions.
• Across the globe the Transition to Sustainability is underway;
The European Commission has set a goal of 20% Renewable Energy by 2020
In North America, there is exploding demand for Onshore Wind and Solar Power.
China is driving down the price of Renewable Energy via Solar PV technology
• 4 forces drive this transition ;
Climate change
Growing Demand for Energy
Rising Price for Fossil Fuels
Energy Security
Business Context
Driver 1 :
Climate Change
“British adventurer and swimmer Lewis Gordon Pugh has become the first person to swim in the icy waters of the North Pole.”
16 July 2007
2012 : Biggest Arctic Ice Melt in Recorded History
In 2009 China surpassed US to become world’s largest Energy Consumer
Driver 2 :
Exploding Global Demand for Energy
•China is adding 100,000 MW to it’s grid annually
•Equivalent to ‘ Adding Germany ‘ each year
•By 2030, China & India will add ‘ 23 Germanys ‘
Driver 3 :
Rising Fossil Fuel Price
General JN Mattias, USMC
March 2010
Richard Branson, Virgin
Ian Marchant, SSE
February 2010
1,600% Oil Price Rise 1997 – 2007..... Will it do it again by 2020 ?
Driver 4 :
Security of Supply
European Commission has intervened to enable Sustainable Energy
Source: Allianz 2010
Source: EGL 2007
Europe will become dependent on large Gas Imports, Cash Outflows without EC intervention...
... Via a Continent-wide Grid for Natural Gas yet no equivalent for Electricity exists yet
A transition to Sustainable Energy permanently extracts us from the Energy Crisis
Crisis, What Crisis?
“...We can get 100 percent of our energy from wind, water, and solar (WWS) power. And we can do it today—efficiently, reliably, safely, sustainably, and economically...
...The obstacles to this
transformation are primarily social and political, not technical or economic...”
Dr Mark DelucchiUniversity of California
IEEE Spectrum September 2011
Digitisation is key to this transformation
The Big Picture
• Kingspan is recognized as the global leader in Sustainable Building Solutions ;
• Agile Management Model, with rapid decision-making• Entrepreneurial Culture, acting on opportunities as they arise• Partnership approach, delivering ‘ Think Global, Act Local’ • Product Leadership built via Innovation & partnership• Integrated Supply Chain maximises Operational performance
Sustained Sales Growth
Kingspan Success
Kingspan’s Business Model spans 4 Product
Sets ;
Insulated Panels
Insulation
Access Floors
Environmental
58% of Sales Revenue
Insulated Roof & Wall Panel Systems
Integrated Solar PV Solutions
Benchmark Façade Systems
Controlled Environments
Structural Products
Profiles & sections
Door Components
Insulated Panels
Jaguar Land Rover, England
Kingspan Energy
25% of Sales Revenue
Perth Arena, Australia
Insulation
Insulation
Insulation Boards for Roofs, Walls & Floors
HVAC, Piping & Ductwork Insulation
Timber Frame Systems
TEK Building Systems (SIPs)
8 % of Sales Revenue
Environmental
Solar Thermal Systems
Solar Cooling & Heating Systems
Micro Wind turbines
Air Source Heat Pumps
Hot Water Systems
Environmental Rainwater Harvesting Systems
Sustainable Drainage Systems
Pollution Control Systems
Fuel storage systems
Lane Community College, Eugene, Oregon, US
Kingspan Solar
9 % of Sales Revenue
Access Floors
Spectrum Health Medical Group, Grand Rapids, USA
Access Floors
Raised Access Floor Systems
Underfloor Wire & Cable Management
Underfloor Air Distribution
Kingspan Innovation
Kingspan relentlessly drives product improvement
• Kingspan’s capabilities are demonstrated in key successes to date;• €1.79 Billion Revenue for 2013
• 62 Factories, 6,500 employees , 85 Countries
• Kingspan brings value to the Sustainability Sector; Proven track record in delivering product solutions
Acknowledged thought leader on Sustainability
Leading the drive towards reducing energy bills
• Energy Efficiency is what we do at Kingspan;• Product Leadership to maintain market leadership position
• Customer Intimacy to ensure partners are aligned for success
• Operational Excellence to deliver quality products on schedule
96 % of Revenue outside Ireland
Kingspan Capabilities
Manufacturing Locations
Kingspan Global
Global expansion underway
Kingspan Scale
• 62 Kingspan Factories
• 80 Countries with Kingspan activities
• 120 Kingspan locations
In August 2014 Kingspan attained ISO 50001 Accreditation for the Energy Management System at our Group Office & Innovation Centre in Kingscourt. The lead auditor from Certification Europe completed the Stage 2 audit on Friday 15 August 2014.
An Envelope Approach to Energy Efficiency Management was taken at the facility, enabling a Carbon-Negative Building via 8 key Innovations;
Kingspan BenchmarkKingspan EnergyKingspan Rainwater RecoveryKingspan Doors
Kingspan InsulationKingspan WindKingspan Access FloorsKingspan ILED Lighting
A fully Digitised Energy Management System
Kingspan : Carbon-Negative Vision
• Kingspan Vision
• Drivers for Change
• Options and approach
• Progress to date
• 2017
• Sustainable Cloud ?
University of Louisville Student Recreation
Center Louisville, Kentucky
Insulated Panels
Digital Strategy @ Kingspan
Disruptive Technology Creates lasting change
Aqueduct
Steam Engine
Electricity
Chris Roche
EMC
Disruptive Technology of the past
People want Ease of Personal Computing at Work
The independent evolution of 4 powerful disruptive forces has converged.
Leading to a seamless consumerisation with instant access to information via smart devices.
People now expect this in their workplace.
This creates a Multiplication of Forces that drive business at an increasingly pace.
Disruptive Vendors driving this –Google, Apple, Amazon, Facebook
4 forces are revolutionizing business & society, creating new leaders
4 disruptive IT Forces changing the way we work
Source: Gartner
Social Media is impacting Decision-Makers right now
Digital : Gartner Hype Cycle
Social Media Impact
Consumer-driven technology now leads in the Enterprise
A Digital Journey for the customer
1. Web Store
2. Configure Product
3. Upsell /
Cross-sell
4. Checkout
5. Customer Support
Sales Funnel Customer Journey
1898 : Sales Funnel created by Elias Lewis
• Kingspan Vision
• Drivers for Change
• Options and approach
• Progress to date
• 2017
• Sustainable Cloud ?Seattle Commercial Hangar Seattle,
Washington
Insulated Panels
Digital Strategy @ Kingspan
Important to understand Business Context first
Digital Master ?
A company operating exclusively in the Sustainable Building Sector
A Product Manufacturing Company, 62 Factories in 4 continents
A company operating Globally, 6,500 colleagues in 80 countries
A company growing fast, € 1.8 Billion turnover in 2013
Secure, Accessible IT Services are key to the success of Kingspan
A new langauge of ‘ Digital Dimensions ‘ needed
Business need
Website
Smart Products
Store
Telephony
Sales & Marketing
Content Analytics
Touch Laptop Smart Phone
10 Digital Dimensions to consider
A convergence of Consumer IT & Business IT
• Kingspan Vision
• Drivers for Change
• Options and approach
• Progress to date
• 2017
• Sustainable Cloud ?
Digital Strategy @ Kingspan
Jaguar Land Rover, England
Kingspan Energy
Step Objective Completion
Step 1 : Agree Digital Strategy with Business Leaders January 2014
Step 2 : Select overall IT Management Framework January 2014
Step 3 : Conduct Digital Maturity Assessment February 2014
Step 4 : Define Enterprise Architecture & Principles March 2014
Step 5 : Identify Reference Architecture for Business Context April 2014
Step 6 : Map Business Process May 2014
Step 7 : Identify Enterprise Priorities & Quick Wins June 2014
Step 8 : Define Enterprise Architecture Vision June 2014
Step 9 : Translate Enterprise Architecture to Applications Architecture September 2014
Step 10 : Map Business Applications Architecture September 2014
Step 11 : Provision Cloud Platform September 2014
Step 12 : Proactive Management of Enterprise Architecture October 2014
Step 13 : Align Resources October 2014
Step 14 : Control with Good Governance October 2014
Step 15 : External Benchmark November 2014
Step 16 : Capture Business Value November 2014
16 Step Approach over 2 years
Aim:• Build Digital Services at Kingspan to enhance Customer Intimacy, Operational Excellence, Product Leadership
• Deliver Services seamlessly for all users, all IT services
• Extend Business Agility
DEFINE
MEASURE
ANALYSE
IMPROVE
CONTROL
Strategy – delivered via 16 step process
IT Strategy : approach
01 Sept 2013
Oct 2014
September 2013Initial Assessment : identified weakness, opportunities across 4 StrategiesDigital Assessment: extracted from the original assessment
Source: Martin Curley, Intel / National University of Ireland
Maturity Level The 4 IT Improvement Strategies
vs StrategyManaging IT for
Business Value
Managing the
IT Budget
Managing the
IT Capability
Managing IT
like a Business
Level 5: OptimisingOptimising
Value
Sustainable
Economic Model
Core
Competence
Value
Centre
Level 4: Advanced Portfolio & Options
Management
Expanded
Funding Options
Business
Partner
Investment
Centre
Level 3: Intermediate Return On Investment
& Business Case
Improve
Productivity
Technology
Expert
Service
Centre
Level 2: Basic Total Cost
of Ownership
Predictable
Performance
Technology
Supplier
Cost
Centre
Level 1: Initial Beginning Beginning Beginning Beginning
Oct 2014
Target
A new approach to assessing Digital Maturity
Step 3: Baseline Assessment
An Actionable Roadmap emerges
Step 3: Baseline Assessment – Digital Maturity
1. Initial
Objective:• Presence on Web
• KPIs traffic related
Focus:• Basic Website
• Search
• Newsletter
• Web Analytics
2. Basic
Objective:• Use Web
Strategically to
grow Revenue
Focus:• Multi-Channel
with Mobile
presense
• Cross Channel
• Engagement
Analytics
• Sales Enablement• eMail Campaigns
3. Intermediate
Objective:• Optimise Digital
Presence
• Optimise
Marketing Spend
• KPIs tied to
Business
Objectives
Focus:• Campaign
Management
• Rules-based
personalisation
• Optimisation
4. Advanced
Objective:• Nurture prospects
to increase
revenue, reduce
cycle time
Focus:• Personas &
profiling
• Predictive
personalisation
• Cross-digital
channel
automation
• Trigger-based
email dialogue
5. Optimising:
Objective:• Possess relevant
1to1 conversation
with customers
• Build customer
profile
• KPIs tied with
engagement
Analytics in CRM
Focus:• Bridge the online
and offline world
– one view of
customer
•
• Automation of
Online and Offline
relationship
management
• Kingspan’s Enterprise Computing is designed and implemented in line with a set of 8 Design Principles chosen to deliver Business Value.
• 8 Design Principles ;
I. Build technology solutions to meet our business reality – agile, global, growth, 24 x 7, innovative
II. Build for Service & Security Excellence - ensure decisions made in the short-term are future-proof
III. Partner with Innovative Technology Companies - follow the Enterprise Architecture Roadmap to minimise the costs of technology integration, upgrading, training, issue resolution, change
IV. Standardised and Integrated Enterprise Computing Assets and Processes - Aggregate services to minimise cost, to protect investment, to leverage best practices, integrated business analysis
V. Configuration not Customisation – Follow Technology Roadmap, avoid bespoke code, avoid single points of failure to minimise waste, minimise risk
VI. Leading Edge not Bleeding Edge – implement new technology when it is proven elsewhere first, to minimise disruption.
VII. Automate & Outsource repetitive activities – manage via Master Service Agreements to control costs and to maximise service performance
VIII.Cloud First for all decisions on hosting
8 Design Principles consistently followed
Step 4: Enterprise Computing Principles
Step 7: Identify Digital Quick Wins
Source: John Daly, 1996
OPTIMISM
PESSIMISM
SKEPTICISMBELIEF
Cheerleaders
Cynics
Naïve Followers
Adversaries
Inform & Involve Innoculate
Abandon Inform & Persuade
‘ The Stock Market runs on Optimism, Skepticism, Criticism’ Jak Zoudi
Source: Geoffrey Moore, 1991
Step 7: Identify Digital Early Adopters
Align Quick Wins around the Early Adopters
Quick Wins
• Kingspan Vision
• Drivers for Change
• Options and approach
• Progress to date
• 2017
• Sustainable Cloud ?Seattle Commercial Hangar Seattle,
Washington
Insulated Panels
Digital Strategy @ Kingspan
Mosaic Village Charlotte, North Carolina
Insulated Panels
• Sustainability : Shifting to Renewable Energy• Micro-Generation : Converting Buildings into Power Plants [1]• Storage : Hydrogen and Other Energy Storage Technology• Digitisation : Smart Grid Technology• Electric Vehicles : Plug in, Electric, Hybrid, Fuel Cell based
1st Industrial Revolution :
Steam Engine + Coal = Factories
2nd Industrial Revolution :
Oil + Electricity = Suburbia
3rd Industrial Revolution :
Internet + Renewable Energy = Distributed Capitalism
The Third Industrial Revolution is based upon 5 Pillars:
2017 : The Third Industrial Revolution
2 Disruptive forces colliding: Sustainability + Cloud
New Products & Services are emerging, driven by The Internet of Things
Function and
data
Connected
Limited security
Data drives
function
Interoperable
Security fundamental
Function over
data
Isolated
Optional security
Past
Today
Future
2017 : The Internet of Things
The Future is already here, only it is not evenly distributed William Gibson
2017 : 16 Billion Connected Smart Devices
The Internet of Things - transforms Kingspan’s Smart Products
• Kingspan Vision
• Disruptive IT Forces
• SAP Revolution
• 2017
• Sustainable Cloud ?Kingswood Academy, UK
Insulation
Digital Strategy @ Kingspan
Cloud Computing is the delivery of Computing as a service rather than a
product, whereby shared resources,
software, and information are provided
to computers and other devices as a
utility over the internet
Sustainability is the capacity to endure. For humans, sustainability is the long-term
maintenance of well being, which has
environmental, economic, and social
dimensions, and encompasses the concept
of stewardship, the responsible
management of resource use.
Source:
Wikipedia
Sustainable Cloud?
2 Disruptive forces colliding: Sustainability + Cloud
Features
1. Sustainable Cloud Service1. Availability
2. Security
3. Confidentiality
2. Sustainable Energy Supply1. Secure Grid connection
2. Micro-Generation PV & Wind
3. Carbon Negative model
3. Sustainable Energy Distribution1. UPS is a storage medium
2. DC powered Servers
3. DC in, DC out
4. Sustainable Energy Use1. Energy Efficient Management
2. Virtualisation
3. Certified Devices
5. Sustainable Building1. Low carbon Design
2. Low carbon Materials
3. LEED Certified
Sustainable Cloud Computingis the
delivery of computing as a service
over the internet
in a manner which
utilises renewable energy sources,
energy efficient technology and low-
carbon footprint hosting facilities
to deliver
Highly Available, Secure and
Confidential Services.
Sustainable + Cloud
All Elements of Sustainable Cloud already exist…
Conclusion
Kingspan is the world leader in
Energy Efficiency Solutions
Every Business is a Digital Business
Sustainable Cloud
is on the way
Presenter
John Shaw is CIO at Kingspan, the world leader in sustainable building products, and is based at Kingspan’s Global
Headquarters in Kingscourt, Ireland.
Kingspan’s 2013 revenue exceeded €1.7 Billion across 4 product groups. The company employs over 6,500 staff in 80
countries across the globe. With 48 factories, Kingspan’s business is rapidly expanding to meet global demand for
sustainable, smart and energy efficient building products. A full list of Kingspan’s products can be seen at
Kingspan.com
John joined the company in June 2013 to lead Kingspan’s IT Strategy. A Chartered Engineer ( C Eng FIEI ) and a
registered European Professional Engineer ( Eur Ing ) with 25+ years’ experience in Energy, Pharma and Manufacturing
sectors. John holds an MBA in Technology Management and a Bachelor's Degree in Electronics Engineering from
University College Dublin. A senior member of the IEEE, ( PE ), John joined Kingspan from Mainstream where he was
hired as CIO during the start-up phase, having previously held senior IT executive positions in Pfizer, Accenture and
General Electric.
IT Strategy at Kingspan aims to deliver business value via fast replication of learning, efficient workflow, a single version
of the truth, faster decision making and increased team productivity. Strong strategic partnerships are central to this
approach. Kingspan’s IT team have strong technical skills and work closely with 4 strategic partners to deliver
technology for the rapidly expanding Kingspan organization.
Contact:
Eur Ing John P. Shaw C.Eng FIEI PE BE MBA PMP Phone: +353 42 969 8000CIO Mobile: +353 87 283 6499Kingspan Group plc, Skype: john.shaw.kingspanDublin Road, eMail: [email protected], Co. Cavan Linkedin: John ShawIreland Website: Kingspan.com