Marketing After a Disaster

<Document Number>Copyright © Yokogawa Electric Corporation<date/time>

- 1 -- 1 -

ISA Sales and Marketing SummitAugust 16th , 2012

Kyoko Fokuda & Marcus TennantYokogawa Electric Corporation

Marketing after a Disaster


- 3 -

Company overview

Automation & control focused aspects to a disaster

Marketing and Sales considerations

Suggestions & conclusion

Outline


- 4 -

Company overview


- 5 -

Our Organization

World Headquarters

Tokyo, Japan

70 companies outside Japan including 12 manufacturing centers

Global Network

One of the founding members of the Fieldbus Foundation

Global Leadership

Our “Vigilance” mindset is committed to building the future to last for customers.

Commitment

Global consolidated sales over US$ 3,916 million @ 2010

sales

96 years of dedicationto the industry

Founded in 1915


- 6 -

Sales by business segment

FY10 sales by segment(Million US $)

Test & Measurement

446 11.4%

8.6%

New & Others

　 335

3,135 80.0%

Industrial Automation & Control


- 7 -

Global leadership / Local partnership

EuropeAmericasJapan

Asia

Corporate HQ, Tokyo

Yokogawa Electric Corporation

: existing Yokogawa offices and production facility Yokogawa

Engineering Asia

Regional SO Asia,

Singapore

Yokogawa Europe B.V.

Regional SO Europe, Netherlands

Regional SO USA, Houston

Yokogawa Corporation Of America

Regional SO China, Shanghai

Yokogawa China

America,Georgia

Canada CalgaryBrazilAustraliaIndia KoreaRussia Saudi-Arabia China, Suzhou

Yokogawa Middle East

Regional SO Middle East, Bahrain

Middle East

As of July, 2011

19,334

Group companies in Japan

4,602

Yokogawa Electric Corporation4,723

Group companies outside Japan10,009

Worldwide


- 8 -

Automation focused aspects to the Earthquake/Tsunami


- 9 -

Epicenters

Kobe

Sendai

Tokyo

No tsunami waveswere observed.

450 km(280 miles)

200 km(125 miles)

Tsunami waves of 40.5 meters (> 133 ft)

FukushimaDaiichiNuclear Power Plant

http://en.wikipedia.org/wiki/File:MinatoAfterTohokuEarthquake.jpg


- 10 -

Comparison of Damages (1)

Damages Great Hanshin Great East Japan

Date/Time 5:46 a.m., January 17, 1995 2:46 pm, March 11, 2011

Epicenter North of Awaji-shima IslandN34’ 36” E135’02”

130 Km off Sanriku CoastN38’ 6” E142’ 52”

Focus 16 km (10 miles) 24 km (15 miles)

Seismic Intensity Level 7 Level 7

Magnitude 7.3 9.0

Death Toll 6,434 15,859 (90%< drowned)

Missing 3 3,021

InjuredSerious 10,683 1,478

Light 33,109 4,629

HousingDamages

Total 104,906 130,171 (incl. total burn 275)

Half 144,274 258,352 (incl. partial burn 4)

Partial 390,506 747,058(incl. inundated houses 747,058)


- 11 -

Plant Management point of view

Operator will be in panic immediately after earthquake, do not expect complex decision

-->Preparations are important Automatic sequence, Train people, Easy

understanding

Manual/Procedure and cyclic training were effective but not for all cases

-->Effectiveness of manual/Procedure and training are

depend on the contents and quality-->Foresight about disaster is important

Need to know there are so many operation after plant shutdown

-->Need to prepare procedure manual after shutdown

What was learned by The Great Hanshin-Awaji Earthquake


- 12 -

* Operator’s mental condition free format

SeismicIntensity 5 minitues after earthquake 1 hour after earthquake

6- 7

*In Panic - How to defend one's body - Fear & Uneasiness underdarkness - Cannot hear alarm by noise

* A little bit calm down - Safety check, instantcountermeasure, prevent leak,confirm safety etc - Plant mangemet arrived to plant

5

*Panic & calm depend on individual - Safety check etc - Uneasiness & Calm operator - Plant shutdown & Continue tooperate

*Slightly calm down - Check dameges & plancountermeasure - Act according to the manual - Plant mangement arrived to office

3- 4

*Almost calm - Almost continue to operate - Check abnormality - Operate according to the manual

*Keep calm near narmal situation - Some part of plant stopped - Continue to check &cope withabnormal situations - Normal operations

Source: The Society of Chemical Engineers Plant Operation Engineering Special Research Jan 17, 1996

Research results :The Great Hanshin-Awaji Earthquake

Do not expect complex decision

immediately after earthquake


- 13 -

What was learned by The Great Hanshin-Awaji Earthquake

Yokogawa research about Plant Automation1. Plant were not shut down under strong earthquake

– Many customers checked their operations whether they should shutdown plant or not.

2. Damages of Automation Devices– To fix Devices to the floor mitigate the damages compare to the

not fixed devices-->Every important devices and other asset need to fix to

floor or fixed table ( EX: PC fall down from desk and break, Bookshelf hit

the control system)

-->Earthquake tolerance design is important


- 14 -

Damages– Earthquake

• Short-period earthquake ground motion• Long-period earthquake ground motion(Sloshing)• Liquefaction

– Tsunami

What we learned by The Great East Japan Earthquake– Preparations and training are important

• Prepare and train to act immediately after disaster• Training to support immediate decision is important• Need to prepare any thinkable case, not to limit by the past

experiences

Damages of The Great East Japan Earthquake

Change riskUn-Acceptable --

>Acceptable


- 15 -

<Preparations are important>• Need to install important system to the higher

level than Tsunami

• Need to store the Back-up media and software to the safety area• We can provide hardware but it takes long time

to prepare software

• Need to store latest documents documents to safety area• Need to brush up documents• Latest documents are effective to prepare hardware

Lessons learned about automation system


- 16 -

Preparation to avoid Un-Acceptable Risk– Analyze disaster and make countermeasure

for risk• Un-Acceptable Risk --> Acceptable Risk

– Countermeasures: • Minimize decision speed and support quick action: Prepare manual, Train people, Share information of case study • Reinforce asset, system and software to avoid

risk: Simulate and reinforce• Prepare for recovery: Prepare latest documents and software to the safe area

How we face with the disaster


- 17 -

Customers in the impact zone• A saleswoman’s story

• Many plants lost equipment as well automation– Automated plants did not have the

workforce to remove the debris

• Customers shifting emphasis– SIS systems– Remote backup– Energy savings


- 18 -

Company response

• Prioritized manufacturing and logistics to meet impacted customers needs– Canceled/delayed orders to non-critical

and completely destroyed facilities

• Shifted Manufacturing days and work hours to reduce electricity demand

• Cool Biz clothing• Flexibility in commuting and working

at home


- 19 -

Road Recovery

• On March 11, total length of 870 km (= 540 miles) of roads were damaged.

• By March 22, 93% or 809 Km (= 505 miles) of them were recovered for through traffic.

• The picture on page 1 shows the road damage (photo taken on March 12).

• The second picture shows how it was recovered just in 6 days.


- 20 -


- 21 -


- 22 -

Marketing and Sales considerations


- 23 -

Wal-Mart before Home Depot after.The need for speed– Opening stores for business after a natural

disaster is the top priority

Value of Preparation and PrepositioningA Clear Command structure uses ICS system– CEO– Regional VP– Store Manager

Katrina– Started Mobilizing 4 days before hurricane hit

landfall

Home Depot: Leadership in Crisis Management


- 24 -

Crisis Response organization

http://www.training.fema.gov/EMIWeb/IS/ICSResource/assets/reviewMaterials.pdf

Never a fireman but got to play one on TVWise to understand incident response organization


- 25 -

Marketing’s role in a Crisis

Product Management Marketing Communication


- 26 -

MarComm Should lend support to person assigned to this role or take the position

Information officer


- 27 -

What is the best communication method?– To Customers– Employees– Public & other stakeholders

You are the company expert on the latest communication methods– not corporate communications or HR.Make recommendations to Incident Commander or Information officer– Email, sales network, facebook, twitter– Rapidly changing - more and more options

Marketing Communication- Expertise


- 28 -

ICS command structure contact logistics commanderHardware– Inventory– Demos and other spare capacity– Beware of large orders of critical products– Understand what critical compensates of your

product are

Software– Media– Licenses– Installation – Backup configuration– Supplement technical support

Product Management


- 29 -

Other suggestions taken from case studies


- 30 -

Crisis-prepared companies are proactive. – They force themselves to confront crises they’ve never experienced

—or can’t even imagine. These organizations encounter fewer calamities and recover faster. They also stay in business longer and fare better financially

Internal Assassins- Ask cross functional team with their insider knowledge how they would destroy the company

Hire outside outsiders to test systems

Wheel of crisis exercise

Preparing for Evil HBR-Mitroff & Alpaslan-2003


- 31 -

Conclusion


- 32 -

“One of the extraordinary things about human events is that the unthinkable becomes thinkable.”

Salman Rushdie

Plan for the unexpected


- 33 -

Thank you for your attention

Marketing After a Disaster

Business

Transcript of Marketing After a Disaster