Driving Product Profitability with PLM Steven Young Director, Agile Product Marketing.

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Driving Product Profitability with PLMSteven YoungDirector, Agile Product Marketing

"THE FOLLOWING IS INTENDED TO OUTLINE OUR GENERAL PRODUCT DIRECTION.

IT IS INTENDED FOR INFORMATION PURPOSES ONLY, AND MAY NOT BE INCORPORATED INTO ANY CONTRACT. IT IS NOT A COMMITMENT TO DELIVER ANY MATERIAL, CODE, OR FUNCTIONALITY, AND SHOULD NOT BE RELIED UPON IN MAKING PURCHASING DECISION.

THE DEVELOPMENT, RELEASE, AND TIMING OF ANY FEATURES OR FUNCTIONALITY DESCRIBED FOR ORACLE'S PRODUCTS REMAINS AT THE SOLE DISCRETION OF ORACLE."

Safe Harbor Statement

Drive Product Profitability

Move Towards Enterprise PLM

3

Leverage Oracle Agile PLM

NorCal OAUG 2009 Training

Manage Product Cost & Risk

Customer Success

Drive Product Profitability

Wall Street’s Message

• Innovation

• Premium Products

• Revenue Generation

• Rising Demand

• Supply Chain Speed

• Labor Creativity

• Supply Shortages

• Scaling Up

• Waste Reduction

• Value Products

• Cost Reduction

• Flat or Falling Demand

• Supply Chain Efficiency

• Labor Productivity

• Excess Supply

• Scaling Down

6 Months Ago… Today…

Enterprise Architecture Design Chain, Supply Chain and Demand Chain

80% of your Supply Chain decisions are tied during Design time

*Refer to AMR Demand Driven Supply Network Model for Details

Operational Excellence

DemandSupply

Product Innovation

Integrations to ERP, Mfg, Sourcing, Planning, Logistics,

Order Mgmt

Integrations to CRM, Demand

Planning, Channels,

Service Systems, Pricing

Enterprise intelligence

WinnersHigher Cash Flow, Profits, P/E

• Integrated Demand, Supply, Product Networks

• Real-Time Information Driven

• Value Chain Focused

It’s not just Supply-Side anymore …Shift to Value Chain Focus for Differentiation (Supply, Demand, Product)

Demand

Supply

Product

Demand

Supply Product

Demand

ProductProduct

Laggard

Leader

Leader

Op

era

tio

na

l Ex

cel

len

ce

Per

fect

Ord

er,

Cyc

le T

imes

, T

ota

l SC

M C

ost

Innovation ExcellenceTime to Value, Return on R&D

Laggard

Source: AMR, May 2008

Demand Supply

Product

The Bridge to the 21st Century. . .

Product Data Mgmt:Item and BOM management in a centralized system Workflow based Change mgmtNo Outside Access

PLM:Multi-enterprise collaborationWeb based stage gate project mgmtIntegrated Sourcing

Engineering design systems:Design vaults in each engineering organization and systemMostly document mgmt

Enterprise PLMIntegrated PLM to rest of enterprise architecture – ERP, CRM, SCMEnterprise Compliance and Quality Systems

Next Generation PLMSocial PLM – open innovationSoA based PLM servicesIntegrated Product and Process capabilities

Source: Adapted from AMR Maturity Curve and Gartner Maturity Model

Driving Product

Profitability

Next Generation Enterprise PLM Capabilities

IntegratedManufacturing & Service

Demand DrivenProduct Planning

Traceability of Customer Needs

Predictable & Open Innovation

Web 2.0/Enterprise 2.0

Service Oriented Architecture

Information-Analytics Driven Architecture

Solutions

Technology

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Move Towards Enterprise PLM

Look At The Complete LifecycleEnterprise PLM System Should Be Comprehensive

3 Launch and Ramp-up

• Product Mapping and Transformation to fulfillment model

• Pricing and Promotions

• Integration to Demand, Supply Chain Planning and Logistics

4 Sales and Marketing Modeling

• Product Sales Configurations

• Physical, Service, Content and Financial bundling

• CRM Enablement

• Multi Channel Commerce

5 Fulfillment execution & Simulation

1 Needs/Requirements

• CAD Applications

• Design Data Mgmt

• PDM

• Visualization

• Prototype Mfg and Simulation

2 Product Design and Prototyping

• Direct Material Sourcing

• ERP Enablement

• Collaborative Product & Process Planning

• Integration to Manufacturing Execution

• Integration to Shop floor

• Integration from Service request systems

• Service BOM

• Integration to Maintenance and Repair system

6 Service and Maintenance • Market Analytics

• Portfolio Mgmt

• Ideation Mgmt

• Requirements Mgmt

• ETO

Enterprise Product Data Model

Change Mgmt and Workflows

Governance, Quality and Compliance

Secure Collaboration and Visibility

Analytics and Reporting

Multi-Enterprise Collaboration

Distributors

3PL’s

SUPPLYDemand

Suppliers

Outsourced Mfg

Upstream Suppliers

3PL’sCustomers

Retailer OEM

Tier 1

Tier 2

Tier 3

Time, Cost, Quality& Compliance Leaks

• Poor Quality & Excess WIP

• High Material & Supply Costs

• Lengthy ECO Approval Process

• Error Prone Order Processing

• Regulatory non-compliance

• Conflicting Demand Signals

PLM Across the Enterprise Maximize Product Profitability

Product Life Cycle Cash Flow

Cas

h F

low

Increase new product success rate1

Get to market faster

2

Ramp to volume 3

Time

Brand Extensions 5

New Products & Categories6

Reduce product & compliance costs, improve quality

4

5% - 60% reduction in

time to market

10% - 40% increase in R&D

ops efficiency

3% - 20% decrease in

COGS

Up to 60% faster process

cycle times

Reduced product recalls

Improved regulatory

compliance

2009 PLM Business Imperatives


AccelerateProduct

Innovation

Ensure Product Quality &

Compliance

#1

RealizedMargin

PlannedMargin

Up to 30% of allnew designs, parts

& suppliersalready exist

80%+ of cost structure and supply risk locked

In early during design

Manufacturing building to wrong

revisions of products

Critical suppliers shutting down product

lines or going out of businessProduct Changes

Take14-21 Days

Proliferation Supply RiskTimeScrap & ReworkCost

Manage Product Cost & Risk“Profit Leaks”

Manage Product Risk and CostPLM Best Practice Approaches

Product Lifecycle Management InitiativesProduct Lifecycle Management InitiativesProduct Lifecycle Management InitiativesProduct Lifecycle Management Initiatives

Maximize reuse and rationalization

Design for cost & supply risk

Reduce scrap, rework, and prototype spins

Enable globalization and outsourcing

Improve productivity and cycle time

Maximize Reuse & RationalizationPLM Best Practice Approaches

CapabilityCapabilityCapabilityCapability ValueValueValueValue

• Reduce Unnecessary New Part and Supplier Adds by 10-30%

• Avoid introduction costs

• Reduce inventory costs

• Increase Preferred Part and Supplier Usage

• Increase purchasing leverage

• Increase quality and continuity of supply

• Improve Engineering Productivity by 10-15%

• Find & reuse existing preferred parts & designs

• Part, Design and Supplier Classification and Search

• Design structure & BOM mgmt.

• CAD library management

• Globalized preferred part and supplier management

• New part, design, & supplier sourcing and introduction

Design for Cost & SupplyPLM Best Practice Approaches


• Reduce Direct Material Costs by 2-5%

• Improve Product Margins at Launch by 5-15%

• Ensure continuity of supply

• Speeds new product introduction sourcing cycles by 90%

• Part, design and supplier scorecarding

• BOM grading & analysis• Target cost/margin mgmt

• Identify & resolve supply risk

• New Product Introduction Cost Management

• Multi-Tiered Co-Sourcing

Reduce Scrap, Rework, & PrototypesPLM Best Practice Approaches


• Reduce the scrap and rework costs arising from

• Discarded parts inventory

• Poor product quality

• Product non-compliance

• Wrong revision builds

• Reduce end-of-life processing costs

• Reduce development & manufacturing costs for prototypes

• Reduce Warranty & Service Costs

• Synchronize product definition and changes across design, sourcing, and manufacturing

• Collaborate to reduce number of prototype spins

• Manage product end-of-life timing

• Design products to meet quality and regulatory compliance requirements

• Time product revisions to optimize for parts inventory on hand

Improve Productivity & Cycle TimesPLM Best Practice Approaches


• Improve the productivity of engineering, sourcing, quality and compliance personnel

• Optimize R&D resource utilization

• Minimize losses from non-compliance

• Minimize losses from poor product quality

• Streamline new product operations across functions – design, supply chain, manufacturing, quality, and regulatory affairs

• Make product record readily available and actionable

• Speed product changes through workflows and automation

• Enable multi-discipline engineering collaboration

• Design for quality & compliance

Enable Globalization & OutsourcingPLM Best Practice Approaches


• Enable the outsourced business model – eliminate large capital expenses and fixed costs

• Reduce direct material spend through visibility into part costs

• Reduce the costs and risk of intellectual property theft

• Collaborate across global teams and outsourced partners

• Continue to get early and forward visibility into product costs and supply risks

• Secure product data across outsourced partners and global teams through roles privileges

• Design, source, & build globally

Leverage Oracle Agile PLM

Acquisition Of Best-in-Class Companies

Oracle FY 2005

Oracle FY 2006

Oracle FY 2007

4 Acquisitions 17 Acquisitions 14 Acquisitions 8 Acquisitions

Oracle FY 2008

Note:Includes acquisitions of Covansys and Hexaware operations; acquisition of Mantas and Castek IP through majority-owned i-flex solutions company

Oracle’s Application Strategy

More Value Less Complexity

More Flexibility Less Cost

More Choice Less Risk

Comprehensive Industry Portfolio

Complete

Standards-Based Architecture

Open

Designed toWork Together

Integrated

Oracle Agile PLM Agile PLM - Industry leading, best-in-class solution

for Discrete. • Product Collaboration

• Engineering Collaboration

• Product Compliance, Quality and Cost Mgmt

• Product Project and Portfolio Mgmt

Agile PLM for Process – Industry leading, best-in-class solution for Process

• Global Specification Mgmt

• Nutritional labeling and packaging

• Supplier collaboration and sourcing

AutoVue Enterprise Visualization – Industry leading collaborative visualization solution

Agile PLM Business Intelligence

Product Hub – complementary PIM/MDM solution to Agile PLM for master data mgmt and governance, multi-channel commerce enablement

Product Configurator

AIA Integrations – Open Standard based integration framework and out of box Process Integration Packs

Product Data Fragmentation

MARKETING

Enterprise

Value Chain

Enterprise

Value Chain

ProjectProject

PRODUCTION

MESMESERPERP SCMSCM

PROCUREMENT

ERPERP

ExcelExcel

LEGAL & CA

AccessAccessEDMSEDMSNotesNotes

R&D (EUROPE)

R&D (ASIA) R&D

(US)

SUPPLIERS

REGULATORY BODIES

OUTSOURCED PARTNERS

ARTWORK DESIGN

CUSTOMERS

ExcelExcel

MCADMCAD

Recipe MgmtRecipe Mgmt CADCAD

Spec DB

Spec DB

QuarkQuark AdobeAdobeCADCADERPERP SCMSCM

Formulas

Design Briefs

Audits

Artwork Files

Specifications

Package Designs

Ideas

Submission

Files

CADModels

Samples

Formulas

Design Briefs

Audits

Artwork Files

Specifications

Package Designs

Ideas

Submission

Files

CADModels

Samples

Formulas

Design Briefs

Audits

Artwork Files

Specifications

Package Designs

Documents & Items

Submission

Files

CADModels

BOMS & Parts Data

Oracle Enterprise Product RecordSecure, Real Time, and Accessible

Manufacturing Information- Bills of Materials- Mfg. Instructions- Formulations- Changes & Revisions

Service Information- Corrective ActionsCorrective Actions- Field instructionsField instructions- Service BOMsService BOMs

Purchasing Information

- Pricing- Part/BOM Costs- Price History

Compliance Information- Regulatory- Standards- Audits

Design Information

- Schematics & Schematics & DrawingsDrawings

- SpecificationsSpecifications- Digital AssetsDigital Assets- Design ReviewsDesign Reviews

Portfolio Information- Programs - Schedules- Resources- Deliverables

Supplier Information- Approved Vendors- Preference/Status- Availability

Customer Information

- RequirementsRequirements- ConfigurationsConfigurations- Quality IssuesQuality Issues

OEMOEMCUSTOMERCUSTOMER

REPAIRREPAIRCENTERCENTER

SUBSIDIARY / SUBSIDIARY / JOINT VENTUREJOINT VENTURE

DISTRIBUTION CHANNELDISTRIBUTION CHANNELCHANNEL ASSEMBLYCHANNEL ASSEMBLY

COMPONENTCOMPONENTDISTRIBUTORDISTRIBUTOR

ODM / EMSODM / EMSODM / EMSODM / EMS

COMPONENTCOMPONENTMANUFACTURERMANUFACTURER(IDM / FABLESS)(IDM / FABLESS)FOUNDRYFOUNDRY

CONTRACTCONTRACTDESIGNDESIGN

OEMOEM

ASSEMBLY,ASSEMBLY,TEST,TEST,

PACKAGINGPACKAGING

DESIGN CONCEPTDESIGN CONCEPTOTHEROTHER

PCMPCM

RFQ QUOTERFQ QUOTEPRODUCT CHANGEPRODUCT CHANGE

PHYSICAL DESIGNPHYSICAL DESIGNPACKAGEPACKAGE

ORDERORDERFORECASTFORECAST

RFQ QUOTERFQ QUOTEORDERORDER

PCMPCM

OTHEROTHERFORECASTFORECAST


ORDERORDERPCMPCM

RFQ QUOTERFQ QUOTENPINPI

PRODUCT CHANGE ORDERPRODUCT CHANGE ORDER

ORDERORDERPCMPCM

FORECASTFORECAST

RFQ QUOTERFQ QUOTECONTRACT DESIGNCONTRACT DESIGN

NPINPIPRODUCT CHANGE ORDERPRODUCT CHANGE ORDER

INVENTORY INFOINVENTORY INFO

ORDER FOR FACTORDER FOR FACTPCMPCM


PRODUCT CHANGEPRODUCT CHANGECARRIERCARRIER

ORDERORDERPCMPCM

FORECASTFORECAST

RFQ QUOTERFQ QUOTE


PCMPCM


RFQ QUOTERFQ QUOTEORDERORDER


RFQ QUOTERFQ QUOTE

PCMPCMCARRIERCARRIERNPINPI

OTHEROTHERFORECASTFORECAST RFQ QUOTERFQ QUOTE

NPINPIPRODUCT CHANGEPRODUCT CHANGECOLLABORATIONCOLLABORATION

ORDER DEMANDORDER DEMANDCHANGESCHANGES

PRODUCT CHANGEPRODUCT CHANGENPINPI

ORDERORDERPCMPCM

PCMPCMPRODUCT CHANGEPRODUCT CHANGE

ORDERORDER

PCMPCM


PRODUCT CHANGE ORDERPRODUCT CHANGE ORDER

ORDERORDERPCMPCM

FORECASTFORECAST


ORDERORDER

PLM Connects the Global Product Network

Increased Product Network Complexity

Design Network

Complexity Central located design

teamGlobal design teamsOutsourced Design

partners

Product Complexity Product Proliferation

Shorter Product LifecyclesMore NPIs

Higher Quality RequirementsRegulatory Compliance

Cost ConsiderationsMechatronics

Supply Chain Complexity

Single PlantSeparate Multi-site

Multi-site, Vertically integratedSupplier Collaboration

Few Outsourced Mfg partnersGlobal Outsourced Mfg partners

Agile ProductAgile ProductCollaborationCollaboration

Engineering, Engineering, Operations & Operations & Supply ChainSupply Chain

Enterprise product record visibility, management & collaboration

Agile Enterprise Agile Enterprise VisualizationVisualization

Native document collaborative

visualization across the global enterprise

Cross-EnterpriseCross-Enterprise

Agile Agile Engineering Engineering

CollaborationCollaborationEngineering desktop

integration & collaboration

DevelopmentDevelopment& Engineering& Engineering

Agile Product Cost Agile Product Cost ManagementManagement

Product sourcing and lifecycle cost & risk management

Procurement Procurement ProfessionalsProfessionals

Agile Product Portfolio Agile Product Portfolio ManagementManagement

Integrated product, program, resource & portfolio

management

Executives & Program Executives & Program OfficeOffice

Agile Product Agile Product Governance Governance

& & ComplianceCompliance

Product & program compliance against

standards & regulatory

requirements

Compliance Compliance OfficeOffice

Closed-loop product quality management

across the extended enterprise

QualityQualityProfessionalProfessional

ss

Agile Agile Quality Quality

ManagemManagementent

Oracle Agile PLM

Enterprise PLM - Secure collaboration across global product network

Operational/SC Data

Program Data

Design/Engineering Data

Part Data

Quality DataProductRecord Data

Environmental Compliance Data

ConceptConcept Plan DevelopDevelop ValidateValidate LaunchLaunch SustainSustain EOLEOLProgramExecutionConceptConcept Plan DevelopDevelop ValidateValidate LaunchLaunch SustainSustain EOLEOLProgramExecution

PRODUCT

LIFECYCLE

MANAGEMENT

Failure Analysis & Corrective Actions

Eng & MfgProduct Operations BusinessProcesses

Cost Management

Engineering Collaboration

Engineering Change Processes

Environmental ComplianceEnvironmental Compliance

Ch

a n g e

Col l aboration

Failure Analysis & Corrective Actions

Eng & MfgProduct Operations BusinessProcesses

Cost Management

Engineering Collaboration

Engineering Change Processes

Environmental ComplianceEnvironmental Compliance

Ch

a n g e

Col l aboration

Ch

a n g e

Col l aboration

Ch

a n g e

Col l aboration

Decision SupportDecision SupportDecision Support

Product Record

Business Ready “Best Practice” Applications

Business Process Workflow & Stage Gate Execution

Decision SupportC

om

ple

xit

y

Improved Decisions - Right Products FasterA

gile P

LM

Agile PLM Strengths

44• Customer Success

• Best track record for customer success & referenceability in PLM• Fastest TTV, Lowest TCO, Lowest Risk

55• CAD & ERP Agnostic; 100% (Enterprise) PLM Focused

• MCAD, ECAD, SW Integration Breadth; CAD & ERP agnostic approach

22• Broadest Enterprise PLM Solution Footprint

• Broadest footprint, strongest adoption outside mechanical engineering• Supply chain, electronics, cost, quality, compliance, portfolio, decision support

33• Industry Domain Expertise & Best Practices

• PLM market leader with focus & presence across key EHT segments (computers, communications, consumer electronics, semiconductor, EMS/ODM)

• Deep domain expertise & best practices developed working with 800+ EHT customers

11• Business Ready Applications

• Out-of-the-Box, Configurable Applications• Fastest Time-To-Implement & Lowest Overall TCO

66• Product Network Built & Proven

• Built for collaboration across enterprise & product network since inception• Mature, out-of-the-box network capabilities; 100s of live ‘product network’ customers

Customer Success

Enterprise PLM Customers

Cisco Apple

GSK

PhilipMorris

International

TysonFoods

Coca Cola

Agile PLM Customer Success: Managing Product Cost & Risk

• Global leader in secure electronic payment technologies, offering advanced secure electronic transaction solutions

• Saves about $10,000,000 a year by eliminating rework, reduced ECO review cycle time from ~30 days to just 1 to 2 days, reduced manual distribution costs by $400,000

• Estimated ROI to be 18 mos., but actual ROI under 7 mos.

• Leading global supplier of a range of technology products and solutions for the semiconductor market

• Reduced material part cost by 10%, reduced scrap and rework cost by 10%

• Saved $675,000 by consolidating IT systems

• HP ProCurve is the world’s #2 networking company • Reduced direct material cost by $970,000 a year due to improved CM cost review process• Achieves $630,000 in year on year savings – 10% improvement in 2.5% annual direct material

savings during CM cost review process• Saves $400,000 a year in labor efficiency, reduced ECO cycle time by 50% (from 2 weeks to 1)

• Preferred semiconductor supplier of efficient power solutions to customers in the power supply, automotive, communication, computer, digital and consumer, medical, industrial, and military/aerospace markets

• Eliminated 6 contactors which saves $400,000 a year, reduced IT Support Costs by $200,000 a year, reduced Change Cycle time from 20 days to 20 minutes, digests acquisitions 3 times faster

• Reduced rework cost by 50% • Reduced rework & errors • Eliminated cost of multiple systems

VeriFone Inc. Saves $10 Million a Year By Eliminating Rework, Automating Processes

CUSTOMER PERSPECTIVE“The typical product change process took 20 to 35 days, preventing us from getting to market as quickly as we wanted. With Oracle’s Agile Product Lifecycle Management, we have reduced turnaround time to just one to two days.”

Ipolani Tano, Vice President and CIO

COMPANY OVERVIEW• VeriFone Inc. is a leader in secure electronic payment technologies,

offering advanced secure electronic transaction solutions including hardware and a full range of services for debit, credit, checks, and smart cards.

• Industry: High Technology Segment: Computer Peripherals• Revenue: US$ 1 Billion Employees: 2,300

CHALLENGES/OPPORTUNITIES• Lack of collaboration among 15 dispersed engineering teams• A paper-based system of copying, mailing, and physically storing

product documentation drained money and resources.• Manual processes to create items, BOM, and ECO were labor

intensive, costly, slow and ineffective• ECO review cycle time was lengthy (2+ weeks) and there was no

visibility into the process to address stalls • Data exchange with factory & suppliers was manual, labor intensive,

which slowed design changes & resulted in a high rate of errors• Limited factory visibility to pending design changes caused costly

rework • No real partnerships with contract manufacturers nor suppliers due

to lack of collaboration• No visibility to supplier part obsolescence nor preferred

status/allocation on part shortages

SOLUTIONSImplemented Agile Product Lifecycle Management• Agile Product Collaboration • Agile Product Cost Management• Agile Product Governance and Compliance • Agile PLM Data Mart 3.0 and Agile PLM Dashboards

RESULTS• Saves about $10 Million a year by eliminating rework• Reduced costly rework by collaborating with CM’s

earlier about product changes• Reduced ECO review cycle time from 20 to 30 days

to just 1 to 2 days• Reduced manual distribution costs by $400,000• Estimated ROI 18 mos, but actual ROI under 7 mos.• Improved companywide efficiency and performance

by automating data management, streamlining processes, eliminating shipments, and reducing headcount

• Built visibility into products to make informed strategic decisions about cost, market launch, etc.

• Eliminated price variance among suppliers• Improved ability to analyze costs of both suppliers

and CMs - reduced CM overcharges to avg. 5% markup

November 2008

Today’s ImperativesToday’s ImperativesToday’s ImperativesToday’s Imperatives

1. Manage Product Cost and

Risk

2. Ensure Product Quality &

Compliance

3. Accelerate Product

Innovation

PLM Customer SuccessEvidence Validating Each Business Imperative

Cut rework cost by 50%

Saved $1.9 million in costs the first year

Slashed inventory from $36M to <$1M in a year

Saved $100,000 a year in just warranty costs

Saved $400,000 in distribution costs and

$10 million by eliminating rework

PLAYVIDEO

Ipolani Tano

Vice President & CIO

Key Takeaways

Summary:

“Constantly squeezed by our customers for cost reductions”

“1,750 users – 1,100 employees (marketing, R&D, technical service, support) and 650 contract manufacturers”

“Reduction in ECO time from 30 days to 2 days”

“Eliminated $400,000 in distribution costs”

“Decreased rework costs by $10 Million”

“Achieved ROI in 7 months”

Ipolani Tano

Vice President & CIO

Agile PLM Customer Success: Managing Product Cost & Risk

• Leading international communications and information technology (IT) company serving government & commercial markets

• Ensured strict compliance with industry standards and government regulations in over 150 countries

• Consolidated supplier base to collaborate more effectively

• Leading provider of technology-based learning platforms worldwide

• Increased gross margins from 8 to 10 points, decreased inventory from $200 million down to about $52 million, cut air freight charges from $5 million a year to less than $500,000 a year

• Reduced charge backs from $12 million to $400,000, slashed excess and obsolete inventory from $36 million a year down to less than $1 million a year

• Leading supplier of consumer products such as scissors, knives, and garden tools. They are classified into four divisions: crafts, garden, house wares, and outdoor recreation

• Reduced design errors by 70%, while reducing new product development time From 25 Months to 15 Months

• Improved data search and management efficiency by 80%, enabling better decision making

• World’s leading supplier of blood processing systems • Realized US$1.9 million cost savings in FY 2005, improved professional resource

efficiency by 25% by reducing ECO cycle time Reduced change package cycle times by more than 30 days, increased the number of

documents under control by more than 30%

• Reduced part cost by consolidation • Improved visibility into product quality • Reduced complexity, ensured accuracy

Harris Achieves a 360-degree View of the Product Record with Agile PLM

CUSTOMER PERSPECTIVE“Oracle’s Agile Product Lifecycle Management applications give us a 360-degree view, helping us to use suppliers with higher quality ratings, so we have fewer challenges in the field.”

Janice Lindsay, Vice President, Strategic Sourcing, Harris Corporation

COMPANY OVERVIEW• Harris Corporation (Harris) is an international

communications and information technology (IT) company serving government & commercial markets in over 150 countries. Harris provides a wide range of products and services for commercial and government communications markets such as wireless, broadcast, and government

• Industry: Communication Equipment / High Tech Manufacturing / Aerospace & Defense

• Employees: 13,000• Revenue: US$ 5.3 billion

CHALLENGES/OPPORTUNITIES• Harris had too many suppliers and found it difficult to

manage the large supplier base and work closely with its vendors to align strategy, roadmap, and resources around a common goal

• Increase collaboration for over 7000 Engineers • Strategy is the right item, right supplier the first time • Take the opportunity to revolutionize and transform Harris’

supply chain

SOLUTIONS• Harris has successfully deployed all Agile PLM modules

across the entire Enterprise

RESULTS

• Cut Engineering Change Time in Half to Accelerate Time to Market

• Ensures compliance with industry standards and government regulations, reducing product risk

• Consolidates supplier base to collaborate more effectively, minimizing cost

November 2008

Closing Thoughts …

• Beyond Engineering & Innovation• Enterprise Platform• Quantifiable Results• Strategic v. Commodity• Industry Opportunities

Uncovering Hidden Costs - PCM

VeriFone Case Study - PCM

43

Best Practices Deploying Global PLM

Agile Training

Reduce Cost of Product Changes

PLM & EBusiness Integration

Driving Product Profitability with PLM Steven Young Director, Agile Product Marketing.

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