Life beyond UCSC – ISTM (one example) Management of Technology Seminar UC Santa Cruz Mike Ruggiero...

Life beyond UCSC – ISTM

(one example)Management of Technology Seminar

UC Santa CruzMike Ruggiero October 2007

Corporate OverviewOctober 2007 2

Overview

• Who am I – And how did I end up in the ISTM program

• What am I – My professional career, past, present, and future

• What’s it all about now - Seagate

• What the #$@$%! it got to do with you - Testimonials

* For first fiscal quarter ended September 28, 2007** Includes interns, contractors, and agency temps


Who Am I - History

• Information Storage Systems - Chemistry Technician; Drive assembly and test

• Atari – Video games PCB test and repair

• BTI and LMSC – Systems Field Service

• Tandem Computers – Support Specialist, Hardware and Operating Systems SW

– SW Developer

– New Product Development Manager

• Sun Microsystems – Solaris Dev. Program Manager

• Starfish SW – Professional Service Manager



Who Am I - History• Huffman Letter

Subj: Statement of Qualification for Huffman Prize for 2006

Dear Judges,

As a nomine for the Huffman Prize for 2006, I must admit that my quest for higher learning can be summarized by a quote from Mark Twain, “I have never let my schooling interfere with my education”. I first attended UCSC in 1974. A transfer student, I was intent on turning my talent for chemistry and electronics into a geology degree. Sadly, my plan was to make lots of money working for the oil companies. Coming to Santa Cruz for university studies changed my fate. I quickly developed a fondness for sailing (or the glamour of adventure it embodied). At the end of the second quarter I dropped out, took my remaining funds, and went in on a three way partnership of a 36’, ocean going catamaran. The plan was to sail to Tahiti. After a year and a half of planning, practice and saving we set sail. The journey took us to San Diego where we stayed far too long, had way too much fun, and spent all our money. I was lucky; I returned to Santa Cruz and began my 25 years of immersion in the exploding information technology industry.

During my absence from the university, I lived and breathed computer hardware and software in Silicon Valley. At first I worked for ISS (Information Storage Systems) as a chemistry technician making ferrous metal ingots. These were to be the core material for manufacturing disk read/write heads. After my UCSC and sailing adventures, I worked at Tandem computers for 18 years. Much of this time was spent traveling the world as a senior field support analyst diagnosing both system hardware and operating system software. When I left Tandem I went to work at Sun Microsystems as the Solaris Integration Program Manager. Most recently, I worked at Starfish Software as a professional services project manager.

While at Tandem, I played many roles besides that of field analyst. These included software developer, project manager, and development manager. At one point I was a project lead for the roll-out of their world-wide remote support centers. My primary focus was the specification of utilities and processes used to implement the centers. As one of the knowledge experts to engineering, I helped develop remote methodologies (software and hardware) for isolating subsystem failures on live, mission critical, systems and networks. While at Tandem I also documented, designed, and built (stuffed the ICs and wire-wrapped all the connections) my own 6800 based computer system. I developed a rudimentary OS and a memory mapped dart score board application for the game of Cricket, which was all written in assembly language and streamlined to fit in two 8k-byte banks of ROM memory. This was a self-learning project.

…As Albert Einstein said, “the devils in the details”. Based on my work experience, I know there is one key skill sorely needed in

industry today. It is the ability to take a large, non-convergent problem, extract the relevant data, and massage that data into focused, convergent pieces, pieces to which solid scientific and engineering techniques can be applied to find optimal solutions. I believe my experience here at UCSC has furthered my ability to do exactly that. I leave UCSC with a new lease on my career. It has not been just schooling; it has been a truly educational experience.

Michael Ruggiero


Corporate OverviewOctober 2007


Seagate: Storage Leader

• Seagate is the world’s leading provider of hard disc drives

– Q1 FY2008*: 47.2M drives shipped; revenue of $3.3B

• Provides storage solutions for Enterprise, Desktop, Mobile Computing, Consumer Electronics and Branded Retail markets

– Share leader in Desktop, Enterprise and Consumer Electronics

– 36% overall market share: highest in the industry

– Broadest product offering in the industry – Largest customer base

• Ownership and vertical integration of critical technologies: heads, media and motors

• Approximately 54,992** employees worldwide

• Acquired Maxtor Corporation

• Acquired Evault

• Forbes Magazine 2006 “Company of the Year”



Seagate’s Global Presence

Emeryville, Fremont, Milpitas, Sunnyvale,Scotts Valley, CA

Oklahoma City, OK

Ang Mo Kio, Science Park & Woodlands, Singapore

Bangkok & Korat, Thailand

Minneapolis, MN

Penang, Malaysia

Wuxi, China

Longmont, CO

Springtown & Limavady, N. Ireland

Shrewsbury, MA

Paris, France

Drives and Components

Regional HQ’s and Sales

Shanghai, China

Tokyo, JapanBeijing, China

Delhi, IndiaPittsburgh, PA Suzhou, China

Taiwan

Design

Customer Support

Bray, Ireland Amsterdam, Netherlands

Seagate Services

Toronto, Canada


• Technology Leadership

– Own and develop underlying technology

– Industry-leading investment in R&D

• Product Leadership

– Industry’s broadest product line

• Vertical Integration

– Own the key components that drive product strategy

• Scale and Leverage

– World class manufacturing and flexible supply chain

Seagate Leadership Model


Seagate’s Product Line

8 Markets

40 Products

100%

Revenue Access

8 Markets

40 Products

100%

Revenue Access

HandheldHandheld

GamingGaming

AutoAuto

DVRDVR

NotebookNotebook

DesktopDesktop

ExternalExternal

EnterpriseEnterprise


NetworkInfrastructure

Content Aggregators

Content Enjoyment

Content Creation

Storage

Industry Trends - Digital Content Landscape Forming


Q1 Financial Highlights

EPS* $0.69$0.69

Margins

Revenue

Net Income*

Shipments

Inventory

$3.3 billion$3.3 billion

$385 million$385 million

47.2 million47.2 million

Under 3 weeksUnder 3 weeks

25%25%

* Non-GAAP


R&D Investment (last 4 consecutive quarters)

306

903

50

0

250

500

750

1000

Seagate Competitors

KOMG

WDC

STX

$ Millions


Q1 FY08 132.4M Units

Q4 FY07 111.2M Units

WDC22%

TOSH7%

HGST18%

FUJ7%

Others1%

STX35%

SMG10%

Source: Seagate Market Research

Market Share Estimates

WDC22%

TOSH8%

HGST18%

FUJ7%

Others0%

STX36%

SMG9%

Total Market - All Form Factors - Preliminary

Growth

Y/Y = 15%

Q/Q = 19%

Product Update


Q1 Product Highlights

Consumer Electronics – shipped 5.7 million units• DVR shipments rose 35% year-over-year

Mobile Computing – shipped 7.9 million units• 50% of shipments were 120GB or more

Enterprise Products – shipped 4.6 million units• 2.5-inch drive shipments reached 1.8 million units

Desktop Products – shipped 29 million units• Shipped 1.5 million 750GB products

Branded Products• Refreshed and redesigned Maxtor OneTouch Family


Mobile Computing Products

• Market leading technology

• The world’s first 2.5-inch notebook drive using perpendicular recording

• Capacities up to 160GB and spin speeds up to 7200 RPM

• Momentus 5400 Full Disc Encryption (FDE) prevents unauthorized data access

• Hybrid technology increases performance, reliability, and battery life

• Free-fall protection for beefed-up laptop durability

Momentus


• Seagate continues as #1 supplier of hard drives for DVRs

• The highest capacity—1TB—hard drive for DVR systems

• DVR market shipments to reach over 54 million units in 2010 to drive a compound annual growth rate of nearly 20% through the forecast period

Consumer Electronics Products - DVRDB35

High-Definition DVR Digital Video Recorder/ DVD Combination

LG PY2DR


Handheld Products

• 60GB for handheld audio and video devices

• G-Force protection for toughest 1.8-inch

hard drive on the market

• Worldwide 2005 - 2009 compound annual

growth rate (CAGR) for Portable Media

Players is 95%*

Lyrion

*Source: IDC, 2005


Ruggedized Products

EE25

• EE25 Series meets rugged demands of the

automotive, industrial, aerospace and

marine tech markets

• 2.5 drive designed for operation at

environmental extremes – high vibration,

high humidity, wide-ranging temperatures

• Up to 80 Gbytes


Consumer Electronics Products – Surveillance

• First hard drive specifically engineered for commercial video security market

• 1TB = up to 32 days of high-quality, continuous recording

• Unique combination of features improves performance, power management and reliability

• Global video surveillance camera revenue will grow to more than $9 billion by 2011 with 13.2% CAGR, up from $4.9 billion in 2006 (iSuppli, March 2007)

• Global market for network video surveillance technologies expected to reach $2.6 billion by 2010 (IMS Research, January 2007)

SV35


Consumer Electronics Products – Seagate D.A.V.E. Technology Platform

• Delivers the best way to move, store and connect your digital life, wirelessly connecting mobile devices.

• Up to 60GB of storage

• Powerful Bluetooth 2.0 and Wi-Fi connection

• Highly customizable: Designed to be easily branded by mobile device manufacturers, network carriers, automotive companies, and others


Who Am I - Now

• Seagate, Sr. Global Supply Analyst– Supply Optimization

– Supply Allocation

– Supply Revenue and Linearity alignment

• Progenitor of 2 tools – HeatMap: Supply/Demand reconciliation

– Demand Signal: Optimized forecast for production planning

• Lead for Optimization Tool* For first fiscal quarter ended September 28, 2007** Includes interns, contractors, and agency temps


Allocation Overview

Vision

Daily and Weekly Execution Deliverables

Allocation Ownership

Judgment Process

Forecasts Accuracy and Reality (SSD)

Reporting Content

Functional Interaction

Open Items / Actions


Vision – Allocation Management

Escalation path for customers to gain additional supply for demand coverage

• Production planning remains step one in supply issues

Owns forecast alignment to the revenue plan• PLM is consulted in any forecast gaps to the revenue plan

Owns the forecast that drive 6 months of factory planning

Responsible for prioritizing any builds that result in customer or revenue trade-offs

Communication vehicle for field sales to get reliable and prompt supply status


Daily / Weekly Execution Who’s Short Report - Daily

- Verify entries and target response/closure within 48 hours- Communicate back to AM/Sales on ability to close

Judged Demand Signal – Weekly: Tuesday COB

BU and PLM issues – Weekly / Monthly- Status updates- Transition calls and qualification issues- Substitution Matrix

Retail Supply Line and Forecasting Management - Weekly

Ad hoc supply issues and Reporting - Daily

Factory calls: materials, manufacturing, launch & quality – Weekly

Master Schedule analysis


Allocation Ownership

Allocation Management Allocation for WW customers and all Business Segments Optimization of build plans to align supply to demand as well as message

supply opportunity positioning Support the current quarter revenue plan across all BU’s Align to the Inventory Targets (turns) while effectively messaging the

importance of customer agreements, buffers and supply continuity• Current Quarter

Reactive - Who’s Short Report identifies field sales shortages Proactive - Heat Map Ownership of all allocation / revenue trade-offs with inputs from Sales

Management

• Future Quarter Heat map (next) proactively analyzes by ST model, 9-digit and customer 6 Month view “Supply Status” tests MBS plans against Judged Demand and

Buffer requirements


Allocation - Functional InteractionFunctional Groups

Issues and Escalations


HeatMap – User Views & Interfaces

Drilldown

Configure Pivot DataMain Pivot Table

Limit Query Data Configure Pivot Table

1

2

3


Simple: Linear ProgrammingA Linear Program (LP) is a problem that can be expressed into a standard form as follows:

Minimize or Maximize cx (Objective Function)

subject to Ax = b (Constraints and variables)

Where x>=0

The word "Programming" is used here in the sense of “planning".

Find the best

solution in Feasible Region


Optimization Model Components

Current Demand (by Month and 9 Digit Model)

AUP, AUC (6 Digit)

Customer Ranking (Strategic Importance, Pricing Tier, Loyalty, and Mgmt Commitment factors)

Customer Specific (constraints)

Maximum Profitability, Net Revenue, or Market Share

Business Goals (objective or constraints)

MBS (6 Digit)

Material Availability (# of Discs by Mth)

Supply Specific (constraints)


Q2'06 MSP: 9/1/05 Fcst: 9/2/05Total Supply Units

BOH + Q206 Build 3,478,394 Mth1 Mth1 Mth1TAM 22,043,951 Dmd Perish Rate Days OH DiscMarket Share 15.8% 100% 7 Available 1,520,000 1-10 1-3Market Share Target 15% Opti Used 1,520,000 Factors

CUSTOMER Product No DF MTH 1Est. Days

OHTotal M1

Dmd M1 OPTI AUP AUC Profit/Unit Mini % PROFIT ($ 000's)ACER 9AH212-187 19,400 7 19,400 19,400 48.33 47.94 0.39 100% 22,553 ACER 9AH233-187 34,920 7 34,920 34,920 62.25 60.91 1.34 100% 130,236 ACER 9W3883-187 3,880 7 3,880 3,880 67.90 59.63 8.27 100% 161,957 ACER 9W3884-187 2,910 7 2,910 2,910 141.60 63.22 78.38 100% 764,075 APPLE 9AP012-040 11,640 7 11,640 11,640 45.18 43.36 1.82 100% 71,958 APPLE 9W3234-041 5,820 7 5,820 5,820 101.06 63.22 37.84 100% 891,946 APPLE 9W3884-700 34,920 7 34,920 34,920 136.04 62.13 73.91 100% 3,369,520 APPLE 9S3004-040 3,880 7 4,850 4,850 135.83 61.28 74.55 100% 679,777 ASIA-DIST (CE) 9AH212-503 19,594 7 19,594 - 45.87 47.94 (2.07) 48% (18,589) ASIA-DIST (CE) 9AH417-501 388 7 388 - 45.87 47.94 (2.07) 48% (366) ASIA-DIST (CHNL) 9AH417-999 2,638 7 2,638 - 45.87 47.94 (2.07) 57% (4,174) ASIA-DIST (CHNL) 9AH432-999 2,368 7 2,368 - 56.55 49.69 6.86 57% 21,942 DELL 9W3234-999 10,670 7 10,670 10,670 103.25 60.77 42.48 52% 1,728,710 DELL 9W3237-999 - 7 - - 63.59 57.71 5.88 52% 263,047 ECS 9W3039-500 1,455 7 1,455 - 115.85 60.77 55.08 65% 108,195 FSC 9AH439-999 - 7 - - 99.73 60.91 38.82 74% - FSC 9S3014-265 194 7 194 194 182.77 60.90 121.87 74% 69,746

51,200,222

Profit Maxi. Goal

Supply Constraint

Dmd by Mth by 9-Digit

AUP/AUC by Customer by Model

Customer Ranking

Sample Optimization Model


BY MODEL BY CUSTOMER

Sample Optimization Outputs


What’s It Mean to You

Testimonials– Jason: Sr. Analyst, Revenue Planning

– Kevin: Account Manager

– Colin: Manufacturing Program Manager

– Ming: International Trade Analyst – Finance/Accounting

– Mai: Sales Operations, Pricing Analyst



Summary

Jason D Demant/Seagate

My current role is a revenue planning analyst in our Branded Solutions BU.I own our quarterly revenue plans, which includes getting forecasts fromSales, hosting meetings to lock on prices and then crunching through quitea few numbers to give our BU and corporate group visibility into thecurrent quarter and 4 quarters out. During off cycle times, I typically doad-hoc reports and excel reports. I spend my time primarily analyzing dataand doing various things in Excel. This role is more of a finance typerole.

For this role I've created basic SQL queries which I learned at UCSC.Primarily though I use basic business knowledge acquired there as well.

This is my second position at Seagate. I started in Customer Service as aproject manager. The primary project I worked on was creating a new returnsprocess for our end-users. We now incorporate eCommerce into the returnsprocess and sell upgrades, advanced replacement and expedited shipping tocustomers via the returns process.

Thanks,

Jason DemantSr. Analyst, Revenue PlanningSeagate Branded Solutions (SBS)


Summary

-Kevin K Wang -In my first 2 years at Seagate I have been one of the Account Managers onour Corporate Accounts ( Big 6, accounts for approx 60% of revenue), SunMicrosystems. This job really focuses on Supply Chain Management and isreally the heart of how to manage supply vs demand. As an Account Manageryou are the customer facing agent that has to work customer upsides/ mixchanges/ as well as any other opportunities customers will throw at you.Account Managers deal with every part of the company from understandingcustomer requirements to knowing the details of how a HDD work so you canrelate things back to your engineering team. As an Account Manager you arefulfilling the new build production side of the business meaning thatweather its IBM, DELL, EMC, HP, or Sun Microsystems, we sell Hard Drives toall of them!

Account Managers are the supporting force of sales. Sales makes the dealsand Account Management makes those deals happen. Even though it is toughto deal with high demanding customers day-in and day-out, it does requirelots of attention to detail as well as a complete understanding of how yourcustomer's business works, because at the end of the day you are assuccessful as your customer is.

The skills that I have used from my days at UCSC would have to be allprimarily from ISM 225, only because my role dealt strictly with SCM. Oneeye opener for me was that all the case studies that Subhas reviewed inclass were just that, "case studies". After being deployed into the realworld I soon came to figure out that not EVERY works how it was planned towork. For example EDI signaling demand are not always processed through,another example could be that due to weather conditions your product willnot arrive due to airports being shut down, etc. It is not until youexperience all these real life situations that you realize how difficult itreally is to keep big Corporations running the way they do.


Summary

Kevin - continued

Now I have just taken on a new position as a Senior Planner working inSales Operations. This job will focus primarily at take manual processesand creating automated tools to help eliminate the time needed to performthese manual tasks. My new role will be focusing on taking currentprocesses and streamlining them to allow our internal team to spend moretime analyzing data rather than spending the time pulling it. I will alsobe attacking the customer side of this as well by making all theseimprovements more of a collaborative effort to help both parties in thelong run.

One thing that I wish the program did touch more on was Microsoft skills (i.e. Access and Excel). I had no idea how much these tools could do until Istarted using them in the real world. I used some very basic and beginnerfunctions in excel but never used it to the extent I do today (one examplebeing Pivot tables). This I think would be very beneficial for anyonegoing into Corporate America where Microsoft tools are the norm andeveryone has to adapt to use them (regardless of how horrible they are).Other than that I think the courses and work load in this major fits intothe high tech industry being that more and more companies are now lookingfor those who are business savvy and have a technical background. Withthis kind of combination you become a very valuable asset to any company.

Best Regards,

Kevin WangAccount ManagerBusiness ManagementSeagate Technology, LLC


Summary

Colin Lee/Seagate

1) Global Supply Chain Analyst

I'll leave this for you, since we were in the same group.

2) Materials Factory Manager

Responsible for all aspects of managing the ODM. Own materials &buffer management, tooling capacity and production, demand forecasting,Ramping product production, Mass production, End Of Life Management,packaging, cost negotiations, and ODM relationship.

ISM 225 really helped in that I use buffer calculations, formula andforecasting frequently in my day to day tasks. It also helped open my eyesto new buffer strategies and helped me build custom strategies for my ODM'sdifferent products.

Thanks,ColinMaterials Factory ManagerSeagate Branded Solutions


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Life beyond UCSC – ISTM (one example) Management of Technology Seminar UC Santa Cruz Mike Ruggiero...

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