1 may 2005 it and globalization at plantronics may 2005 tom gill

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1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

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Page 1: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

1May 2005

IT and Globalization at Plantronics

May 2005

Tom Gill

Page 2: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

2May 2005

Agenda

Plantronics overview Plantronics IT Globalization at Plantronics Q&A

Page 3: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

3May 2005

Plantronics Overview World leader in communications headsets $560M annual revenue and growing 6000+ employees Headquartered in Santa Cruz Offices in 26 countries

Page 4: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

4May 2005

Plantronics Product Evolution

1962 - Introduced first product, a lightweight aviation headset

1964 - Continued with aviation market by providing air traffic control headsets

1969 - Went to the moon ’70s and ‘80s - Focused on call center and office

products ’90s - Expanded product line to include mobile and

computer headsets2000s - Added USB, gaming (Xbox), residential and

bluetooth headsets

Page 5: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

5May 2005

Business Growth

It took twelve years to make our one-millionth headset

We now make over 1 Million headsets per month!

Page 6: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

6May 2005

Product Development at Plantronics

Design / Engineering Centers Santa Cruz Tijuana Mexico Swindon England Suzhou China

Outsource to partners for special services and fast time to market Increased emphasis on design

Products started in the cockpit and call center cubicles Headsets are now ubiquitous – design matters

Quality is a differentiator Very high levels of customer satisfaction Very low return rates Excellent audio quality

Page 7: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

7May 2005

New Markets Present New Business Challenges

Call Center Market Consumer Market

Predictable demand Unpredictable demand / difficult to forecast

Stable and reliable distributor and dealer channel

Challenging demands from retail partners and OEM partners

High margins Lower margins

Long product lifecycles Rapid time to market and short product life

Page 8: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

8May 2005

IT Makes it Happen

IT is ubiquitous Virtually all associates use information technology

throughout the day Consider a day without IT!

IT solutions have enabled growth Advanced supply chain solutions Portals / knowledge management Information warehouse / Business Intelligence Wireless solutions Workflow and approval applications Shorten cycle time, increase collaboration, improve

productivity reduce barriers of time and geography

Page 9: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

9May 2005

Plantronics IT Organization

Worldwide team of 75 IT teams at six largest sites Other locations and SOHO sites serviced remotely Enterprise applications, WAN and technology standards

managed centrally Local applications and infrastructure managed by remote sites

Payroll, customs, logistics… Local LAN, voice systems, Exchange servers, etc. Local intranets including direct labor kiosks

WW management team meets weekly Communication is key to virtual team success Annual offsites and regular travel also key to effective

collaboration

Page 10: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

10May 2005

Information Technology Footprint – Infrastructure

Dell / Microsoft desktop Microsoft Exchange / Outlook messaging Cisco networks including WiFi in all locations WAN technologies include dedicated circuits,

frame relay, MPLS, point to point VPNs and remote access

Avaya voice systems (PBX, voicemail, unified messaging) – migrating to VoIP worldwide

Mobility devices – phones, PDAs, smartphones 120+ Windows servers 40+ Sun Solaris (Unix) servers

Page 11: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

11May 2005

Information Technology Footprint – Key Applications

Oracle eBusiness Suite 11.5.8 / 9iR2 Complete suite (finance, manufacturing, purchasing,

HR, logistics, order management) Self service (iProcurement, iExpense, iStore, etc.) Single instance / multi org Customizations include reports, some forms, alerts

Informatica / Business Objects Information Warehouse and Business Intelligence Suite

Saratoga Avenue CRM ATG commerce applications / Interwoven contact

management Microsoft intranet and Sharepoint portals

Page 12: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

12May 2005

Road to CIO

BS in Business Info Systems from SDSU TRW Electronics and Space – started as a

programmer analyst Syntelligence – expert systems startup Tandem computers – gained international

business experience Bay Networks – emphasis on CRM and web

technologies Plantronics – started as Director of Technical

Services and promoted to CIO in January 2000

Page 13: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

13May 2005

Key IT Management Competencies

Business enterprise knowledge Client partnership Business influence Change management Team leadership Empowering others Accountability Systems thinking

Page 14: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

14May 2005

IT Management Challenges Hiring and retaining talented people

Exciting technologies help Culture of learning and innovation is key Management role is to provide direction and

environment to succeed! People challenges

Communication / style Corporate vs. remote sites

Change management Internal to IT End user impact

Outages / downtime Problems will occur It’s all in the recovery

Page 15: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

15May 2005

Globalization at Plantronics

The world is indeed flat Started with manufacturing Business process outsourcing IT offshoring Home workers

IT makes it happen Fiber network and Internet break down the barriers of

time and distance Standards enable supply chain integration and the

virtual corporation

Plantronics started in 1972!

Page 16: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

16May 2005

First Wave of Globalization - Mexico

Established Plamex manufacturing facility in 1972 as a maquiladora

Moved all manufacturing from Santa Cruz to Mexico during the 80s

Innovative people oriented business culture includes: On site family health care Bank accounts with direct deposit Transportation to and from work Career pathing

Page 17: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

17May 2005

Plamex Today

Grown from one building to five Product design center Contact center agents

Technical assistance Inside sales Connected to Santa Cruz voice and CRM systems via

IP network

Winners of the 2004 Mexico Quality Award

Page 18: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

18May 2005

Globalization – Europe

Started with sales offices Expanded to product design center with

emphasis on local product variants and regulatory compliance

Currently 25% of worldwide revenue Contact center flattens Europe

Technical assistance Inside sales Customer service / order mgmt All VoIP with clusters by region

Page 19: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

19May 2005

Globalization - China

Started with parts sourcing and contract manufacturing

Design center and manufacturing facility under construction planned for March 2006

Temporary factory established in April Temporary design center established this month IT makes it happen

Single instance ERP Voice, video and data over IP LAN and WAN

Page 20: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

20May 2005

Manufacturing by Location

Plamex operations in Mexico High quality Highly variable product mix / many product variants Just in time production / made to order

China contract manufacturing and our future Suzhou operation

High volume products Sub assemblies Predictable demand due to longer lead times Products for local markets

Page 21: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

21May 2005

Globalization – IT Enablers Standard platforms where appropriate

Consistent user experience Lower support costs Security Interoperability

Single instance ERP Lower TCO Facilitates consolidations and rollups Worldwide planning

Standard processes Change control / change mgmt Governance

Virtual teams / collaboration a must Sharepoint portal Video conferencing Web meetings IM and mobility

Page 22: 1 May 2005 IT and Globalization at Plantronics May 2005 Tom Gill

22May 2005

Lessons Learned

Globalization Cultural awareness / training is a necessity Communication

Preparation – key skills Written and verbal communications Collaboration and virtual teamwork

Job search advice First opportunity may not be ideal but it’s a start Consider consulting Be patient!