are we thinking for the good of the few or the good of the many? joanne friedman, ceo connekted...

Are We Thinking for the Good of the Few or the Good of the Many? Are We Thinking for the Good of the Few or the Good of the Many?

Joanne Friedman, CEO

ConneKted Minds Inc.

©CONNEKTED MINDS INC.2005

GOVERNANCE & STEWARDSHIP GOVERNANCE & STEWARDSHIP

CASE IN POINT: ECOMMERCE CASE IN POINT: ECOMMERCE

Call to ActionCall to Action


GOVERNANCE & STEWARDSHIP GOVERNANCE & STEWARDSHIP

• A funny thing happened on the way to the Nouvelle Economy. Somehow we forgot to inculcate governance, stewardship and perhaps accountability on behalf of the end users.

• The result:– Competing Standards– Industry Syllogism– Standards not adopted

here….yet.

• Technical standards defined by you today are directly related to the economic conditions of tomorrow

• Why standards governance is a critical issue for the Enterprise today.

• Standards governance will emerge as a critical issue in 2006.


Technical standards defined by you today are directly related to the economic conditions of tomorrowTechnical standards defined by you today are directly related to the economic conditions of tomorrow

• Worldwide Debate on Internet Regulation– Returning to the basic of data exchange

• Desire of the G-7 for Internet Taxation– “X”ars of Banes & Oxley will likely follow– Telecomm/technology convergence and deregulation – VOIP leads to H.R. 214 in the US congress

• Economic Growth: – Competitiveness– Inter-industry trade (UBL)– New Economy business is the flow of goods model


Why standards governance is a critical issue for the Enterprise today.Why standards governance is a critical issue for the Enterprise today.• Shareholder value

– governance not only lets you make better decisions about your company, monitor and measure the impact of your decisions on key measures such as growth and profitability.

– XBRL, FXML….

• Enterprise Value: – New Economy Differentiation– Competitive Advantage in Intangible Assets

• Savvy CIOs put a high priority on developing and refining their organization's IT Governance processes for:

• Control, cost reduction, management and measurement• the link between IT’s technology decisions with business objectives• IT Governance is a way to monitor performance and accountability.

• Current IT Governance models support syllogism in the enterprise


Why standards governance will emerge as a critical issue in 2006.Why standards governance will emerge as a critical issue in 2006.

• Internet I/II Regulation– In 2004, UN announced that its members had agreed

that the Internet was a global 'facility' whose management should be 'multilateral, transparent and democratic'.

• Individual Governments worldwide seek regulation of standards because: – Defensive Strategy to Trade deficits– Security, Privacy– Third World Development fosters offshoring

• China, Western EMEA

GOVERNANCE & STEWARDSHIPGOVERNANCE & STEWARDSHIP


GOVERNANCE, COMPLIANCE AND THE NEED FOR STANDARDS STEWARDSHIP

GOVERNANCE, COMPLIANCE AND THE NEED FOR STANDARDS STEWARDSHIP

While multiple organizations from ANSI tothe ISO have governance committees none represent the millions of end users the ultimate customer of Oasis Key Stakeholders

©CONNEKTED MINDS INC.2005 GOVERNANCE & STEWARDSHIPGOVERNANCE & STEWARDSHIP

Governance :• n 1: the persons (or committees or departments etc.) who make up

a body for the purpose of administering something]

• 2: the act of governing; exercising authority; "regulations for the governing of state prisons"; "he had considerable experience of government" [syn: government, governing, government activity]

• The act of enforcing policies and lifecycle processes during business service definition, development and runtime.

Compliance:– n 1: acting according to certain accepted standards– 2: happy friendly agreement – 3: a disposition or tendency to yield to the will of others – 4: the act of submitting; usually surrendering power to another

What do we mean by Governance versus Compliance?What do we mean by Governance versus Compliance?

http://dictionary.reference.com/search?q=government

http://dictionary.reference.com/search?q=governing

http://dictionary.reference.com/search?q=government%20activity


– Sectoral• no simple prescription that can be handed down to fit all

needs. Yet prescription is the e-business model

– Shareholder• addresses the fundamental microeconomic issue of how

effectively managers of firms are monitored and induced by banks, equity markets or other mechanisms to act in the best interests of its shareholders.

– Stakeholder• Relationship-based model tends to look at the interface

between the microeconomic issues as outlined above and relates these to stakeholders who may not have a direct share of ownership in the company but who nevertheless are

affected by corporate decisions.

Multiple Forms of Governance don’t make it easierMultiple Forms of Governance don’t make it easier


A middle Ground: Standards StewardshipA middle Ground: Standards Stewardship

• What Is Standards Stewardship? – Evolved from "Product stewardship" a principle that directs all

participants involved in the life cycle of a product to take shared responsibility for the impacts to human health and the natural environment that result from the production, use, and end-of-life management of the product.

• The greater the ability of a party to influence the life cycle impacts of a product, the greater the degree of that party’s responsibility. The stakeholders typically include manufacturers, retailers, consumers, and government officials.

• Example: Joint Industry Task Force on WEEE/ROHS – disposal impacts and associated costs have been the basis for

engaging manufacturers, attention has initially focused on waste management problems and solutions. However, the challenge of product stewardship is to move beyond disposal to facilitate a paradigm shift toward "zero waste" and “sustainable production."


Stewardship Unifies Key Stakeholders NeedsStewardship Unifies Key Stakeholders Needs

Enterprises Providers OtherOrgs.

Governments

•A relationship-based model will provide the interface between the microeconomic issues and those stakeholders who may not have a direct share of ownership in standards development.

•Encourages participation and adoption•Eliminates syllogism intra and inter groups


Revenue growth with cost containment

Key competency: responsiveness

Critical success factor:enable effectiveness of people and processes

Source: CEO Study of 456 WW CEOs IBM Corporation - 2004

Stewardship defines end to end need and removes barriers bringing business-technology together

Source: Operating Environment Market Drivers Study, IBM Corp. 2004

CEO needs

• Aligning IT and business goals to grow revenue and contain costs

• Building responsiveness and agility into the organization through IT

• How can IT help enable people and teams to be more effective

CIO challenges


Call to ActionCall to Action

• To be effective in the longer term OASIS must synergize the efforts of multiple constituencies around the economic needs of the end user: – Profit, growth, innovation competitiveness

• A new dimension is needed at the core of defining technical standards:

• A stratified business-technology centric approach is needed


Internal Customer

Measures the Value of Technology in terms of

Business Increase Sales; Reduces Cost of Doing Business

CFO Return on Capital Investment

CIO Total Cost of Ownership; ROI for Approval

COO Impact to Operations; Operating Margins, Productivity

CEO Impact to Shareholder Value; e.p.s.

Value Chain Tightly woven network of demand and supply chain partners, service providers

Customers Value is produced when its easier to do Business

Suppliers Increase our Revenue and Growth

• If Value is what resonates with executives and closes deals, then technology value must be universally understood to resonate


DESIGN SOURCE PLAN BUY SELL MAKE FULFILL SERVICE

Validate design for manufacturability and supply chain

Plan materials and capacity

Select vendors Outsource product

prototyping and pilots

Create engineering changes

Review/ approve engineering changes

Manage project

Product Introduction & Management

Product Design

Gather requirements Develop product

definition Validate and release

design Manage components

Spend & Supplier Analysis

Gather external intelligence

Gather supplier information

Perform what-if analysis

Plan based on constraints

Optimize network

Supply Chain Configuration

Plan multi-enterprise requirements

Material Planning

Demand Planning

Collect forecasts Aggregate forecasts Plan for promotions Optimize forecasts

Search for product Configure product Link to supplier

catalog Create PO Obtain freight

estimate Approve PO Modify PO Resolve disputes Process returns

Purchase Order Management

Payables Settlement

Create spot market

Pricing

Enable catalog search Initiate order Cross-sell/ up-sell Estimate freight Acknowledge order Determine order ship Determine production

start

Order Mgmt.

Allocate capacity Synchronize production

scheduling Request/reserve

capacity Dispose excess

capacity

Capacity Planning

Manage Kanban View component

demand Schedule production Prioritize manufacture

of sold items

Production Mgmt.

Inventory Mgmt.

Trace components Generate and manage

supplier release schedules

Check availability Manage consignment

inventory Dispose inventory

Manage quality specs

Measure/ report performance

Quality Mgmt.

Transportation Planning

Create shipments from orders

Perform spot buys Provide visibility

into shipments Manage routing,

scheduling & visibility of returns

Manage private fleet

Transportation Management

Warehouse Planning

Transportation Execution

Optimize labor Coordinate service

parts

Field Service

Register product Validate warranty

information Process service

requests

Warranty Mgmt.

Authorize return Dispose return items

Review & update of logistics infrastructure

Compose & distribute RFQs

Manage RFQ responses Manage carrier

performance Manage contract

compliance Calculate landed cost Plan carrier loads

Process payment

Configure product Price product Configure BOM and

routing

Configuration

Create invoice Process payment

Settlement

Manage sales orders Inquire on settlements Manage customer

company info

Customer Info Management

Deliver training

Training

Schedule maintenance

Monitor process

Predictive Mtc.

Respond to customer queries

Product Support

Dynamic Pricing Perform spot buys

Manage contract compliance

Manage supplier performance

RFx & Bid Management

Compose and distribute RFx

Manage RFx response

Negotiation & Agreement

Agree on contract

Contract & Supplier Management

Campaign Management

Channel Mgmt Campaign Mgmt

Supplier Info Management

Manage inbound RFQ

Manage forecasts Manage customer

inventory (VMI) Manage PO Manage supplier

release schedules Display supplier

performance measures

Inquire on settlement

Manage supplier company info

B2b and Business Process Integration Affect All Enterprise Operations

ERPERP SCMSCM ProductProductData MartData Mart

DataDataWarehouseWarehouse

ORDERORDER MRPMRP

supplydemand

Closed-Loop Processing

(EAI Toolkits, ETLM tools,

Embedded Mobile Agents)


The State of “e” in 2005The State of “e” in 2005

Industry SilosNeed to engage SMBNew Barriers to EntrySchema for Fit to FunctionIndustry Registry and or WS RepositoryProcess Integration Networks


automotive industry

trade

automotive industry

trade

consumerconsumer

smb

SMBtier1

Tier 1Tier 1

tier1

High tech industrytrade


Upper Mid tier

Upper Mid tier

SMB

SMB

smb

Less than 10% of a Tier 1’s total trading partners are conductingbusiness with b2b ecommerce;

38% of high tech and 43% of automotive supply chains are enabled.

In 2005 In 2005


Intra-Industry Key FindingsIntra-Industry Key Findings

• Common Problem Set across multiple industries:– Need for more non intrusive technology

• Light weigh b2b capability to address needs below tier one

• On demand is not always available

• Cost is still a barrier to entry

• New Risks and perceived threats****


tier1

Tier 1Tier 1

tier1High tech industrytrade


automotive industry

trade

automotive industry

trade

Process Integration Networks

ancillarytrading

networks

Upper Mid tier

Upper Mid tier

consumerconsumer

smb

SMB

While technology changes and SOA and web services gain acceptance what will change?


Outsourced Supply Chain Integration enabled with B2bi Outsourced Supply Chain Integration enabled with B2bi

B2bi design point required each company to reverse engineer business process to make data available….today however many of these processes no longer even exist in the enterprise

Manufacturing

Distribution

X-Dock/Retail DC

Sales Channel

Component AssemblyMaterial Suppliers

DemandManagement

International/Domestic Transportation

PlanningGlobal Track/Trace

International Transport

Transport

Materials & Cap Planning

Finite Scheduling

Deployment Planning

Outbound Trans

Allocation/Replenishment

Supply Chain Outsource Model

Order ManagementWarehouse

ManagementAvailable to Promise

Order ManagementWarehouse

ManagementAvailable to Promise

Transportation Planning/Mgmt.


DMZ

Enterprise integration for b2bi involve (d) the entire Enterprise integration for b2bi involve (d) the entire back office suite of systemsback office suite of systems

LogisticsLogisticsHumanHuman

ResourcesResourcesManu-Manu-

facturingfacturing FinanceFinance

EmployeeEmployeeSystemsSystems

Industry-Industry-Specific Specific SolutionsSolutions

Strategic Strategic PlanningPlanning

LegacyLegacySystemsSystems

Voice

(IVR, ACD)

E-MailE-Mail

DirectDirect Interaction Interaction

SalesSalesAutomationAutomation

MarketingMarketingAutomationAutomation

Mobile SalesMobile Sales

(Prod. CFG)(Prod. CFG)

FieldFieldServiceService

Portal/Portal/ExtranetExtranet

EDIEDI

E-MailE-Mail

SuppliersSuppliers InternalInternal CustomersCustomers

Financial

Data Mart

HR

Data MartProduct

Data Mart

DataWarehouse

Closed-Loop Processing

(EAI Toolkits, ETLM tools,

Embedded Mobile Agents)

Customer

Data Mart

Order

Data Mart

System to System to SystemSystem

OperationalOperational

SCMSCMERPERP CRMCRM

ConferencingConferencing

WebWebStorefrontStorefront

CollaborativeCollaborativePlanningPlanning

ConferencingConferencing

ManufacturingManufacturingExecutionExecution

WarehouseWarehouseManagementManagement

TransportationTransportationManagementManagement

Demand Demand PlanningPlanning

TransportationTransportationPlanningPlanning

DistributionDistributionPlanningPlanning

SupplySupplyPlanningPlanning

ManufacturingManufacturingPlanningPlanning

Employee Employee Self-ServiceSelf-Service

Factory Hand Factory Hand Held DevicesHeld Devices

Knowledge/ContentKnowledge/Content

ManagementManagement

AnalyticalAnalytical

ProductProductManagementManagement

OrderOrderManagementManagement

ServiceServiceAutomationAutomation

Web/Web/IntranetIntranet

B2BiB2Bi

PartnerPartner

InteractionInteraction

B2BiB2Bi


the “N” Trap in IT X Industriesthe “N” Trap in IT X Industries

Point-to-Point Challenges– Numerous processes– Numerous exchange protocols– Numerous business objects– Numerous trading partners classes with

• degrees of infrastructure– Limited time to execute– Costly implementation ($50M ~ $300M for OEMs)– Ongoing maintenance and support

Number of

Processes

Number of Communication

means

Numerous Business ObjectDefinitions perCommunication

Means

HUGE COST Infrastructure

Resource and Time

Commitments

Number of

e-Targets

Primarily transactional data exchange with little or no collaboration to decrease cost and increase ROI


First generation e-commerce (b2bi) was not e-business

E-Business (EB)•Industry wide•Process re-engineering for profit•Ecosystem based

E-Commerce (EC)•Demand chain centric•Transaction-oriented• Supply chain-reduction

EC is a subset of EB

Actual Impact on Bottom Line

EB

EC

ECEC

EBEB

Investment& Tactics

EB

EC

in 2005/6 focus on the business picture not the technology


The state of trade The state of trade

Demand

RegulationOutsource

Service

Supply

Flow of goodsFlow of goods

There are no boundaries


tier1

Tier 1Tier 1

tier1High tech industrytrade


automotive industry

trade

automotive industry

trade

Process Integration Networks

ancillarytrading

networks

Upper Mid tier

Upper Mid tier

consumerconsumer

smb

SMB

While technology changes and SOA and web services gain acceptance what will change?


CustomerPain Points

PLM MarketStructure

2002 PLM Market <$15B

PLM Market >$20B

est,.31% CAGR

Est. 45% CGR

PLMSolution Buyer

Engineering Eng

Executive

PLIM->Product Information Management (05-10)

Value Migration

• X-ENTERPRISE PLIM INTEGRATION• COLLABORATIVE NPI• CONTENT MERGED WITH

TRANSACTIONS• BA, BAM• HOSTING, OUTSOURCED

PLIM for Value Chain Integration

PLIM COMBINEDMarket <$90B

2004>

<2002

e.g. Product Lifecycle Management Trend & Forecast e.g. Product Lifecycle Management Trend & Forecast

Product Data Mgmt ->Product Lifecycle Management (99-02)

• Engineering data management• Product change management

automation• Interoperability between engineering

tools and CAE tools

• Begin to extend Product Data to Configuration and Process

• Connect engineering to ERP• Collaboration and workflow

• DESIGN CYCLES, • REDUCE MFG COST AND TIME TO MARKET• DESIGN FOR COST / MANUFACTURABILITY• REAL TIME SUPPLY CHAIN INTEGRATION• PROCESS MANAGEMENT• QUALITY REPORTING• INTEGRATION/COLLABORATION

Product Lifecycle Mgmt -> PL”Information”Mgmt (03-05)

PLIM Market >$70B*

ENTERPRISEIT SCM

SUPPLY CHAIN

DEMAND CHAIN

IT

Committee

2004+

Hardware

PDM

Services

CAD

Hardware

PLM

DESIGN

SCM

O/SServices

•Hardware

PLIM

DESIGN

Outsource and Hosted Services

MIDDELEWARE

SCM

PLM

LOGISTICS

>2006

MIDDLEWARE

2010

• OPERATIONAL EFFICIENCY• BUSINESS ALIGNMENT• CREATE CORPORATE & SHAREHOLDER

VALUE

•SERVICES &

Outsource $6B•SCM $24B•PLM $25B•DESIGN $4.2B•MOM $21B

2003 2006+

are we thinking for the good of the few or the good of the many? joanne friedman, ceo connekted...

Documents

standards governance

governance committees

governance processes

governance models

standards stewardship

governance stewardship

regulation of standards

shareholder value governance