Professional Documents
Culture Documents
Jeanette Horan
Vice President, Enterprise Business Transformation
Dusty Rhodes
Partner, Global Business Services
Agenda
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Doing Business In A Flat World Requires Re-thinking The Very Structure Of The Enterprise
A Globally Integrated Enterprise is an open, modular organization that is integrated into the fabric of the networked economy and operates under a business model that makes economic sense in the new global landscape.
Global Supply Management Global Production Optimization Global Demand Management
Efficiently locates and secures the best global talent and production resources available in the world, inside or outsourced
Creates global scale and efficiency through modular global service centers integrated via common platforms, values and governance
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Aggressively pursues high growth global markets, e.g., emerging markets, global niche markets, and global solution requirements
Copyright IBM Corporation 2008
21st
Century
IBM is formally established in 1924 ($11M in revenue; 3384 employees) with sales operations in Canada, Latin America, Europe & Asia; 3 manufacturing facilities completed in Europe by end of decade
Mini IBM sales companies established in all major countries of operation, each with full-blown back-office functions e.g., HR, Finance, Marketing, Procurement Seeded mfg in select countries to temper risk of nationalization
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Over 200,000 employees Services Delivery (incl. ISC) across 50 delivery centers in 21 countries 12 Global Shared Services Units Nearly 2/3 of revenue outside US
IBM Has Undertaken A Multi-year Transition From A Multinational To GIE, Impacting Most Aspects Of The Organization
Global Marketplace
Leverage IBMs scale and expertise to optimize market growth Serve needs of global clients Take advantage of global sources for high-quality skills
Rationalize support functions for greater efficiency Create the flexibility to quickly manage change in the marketplace
Global Culture
Instill values that promote global collaboration and the integration of IBM, partners and clients
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And Has Made Substantial Progress In This Transition By Leveraging Deep Business Transformation And IT Integration Capabilities
From Multinational
Multiple local Supply Chain process and systems 300 local procurement centers Product design and manufacturing 128 Local CIOs, 155 Local Data Centers and 16,000 apps Multiple Finance organizations with non-integrated decision support Local HR systems and management local resource skill set definition
to Globally Integrated
Globally integrated Supply Chain processes and IT 3 Global procurement centers Global Solution Centers develop and deploy solutions for use worldwide 1 Global CIO, 6 Global Data Centers and 4,700 applications Powerful decision-support and business controls Outsourced non-core processes reduced costs 25-35% Global HR planning standardized global resource skill set definition
Global Marketplace
Global Culture
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The Opportunities In Growth Markets Are Well Addressed Through IBMs Globally Integrated Enterprise
China: early investment has resulted in significant growth in this emerging market
Hub of Global Innovation IBM China
10,000+ employees 26 offices 9,000 business partners Market leader servers & storage, middleware, services
Urimuqi
India: another successful example of injecting global skills and expertise as part of our GIE strategy
Hub of Global Innovation
India Research Laboratory (1998)
China Research Lab (1995) China Software and System Lab (1999) China System Center (2004) Global Services Oriented Architecture Solution Center (2006)
Business Scale
3,000 employees in 2002, 73,000+ in 2008 35 centers 9 opened in 2006 2,500 business partner firms
India Software Laboratory (2001) Engineering & Technology Svcs (2003) Global Business Solutions Center (2006) Services Oriented Architecture Solution Center (2006)
CHINA
Largest multinational software exporter Market leader in servers, storage and services 2007 revenue up 38%
Delhi
Zhengzhou Hefei Suzhou Chengdu Nanjing Shanghai Chongqing Hangzhou Nanchang Ningbo Changsha Fuzhou Kunming Guangzhou Shenzhen Nanning Wuhan
Dalian
Kolkata
Jinan
Bangalore
2003
2004
2005
2006
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36.5% 36.9%
25%
17.4
3.76
2 0 2003
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2004
2005
2006
2007
Agenda
IBMs Strategic Priority
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We Leveraged Our 6-step Method To Ensure Complete Alignment Of Process Capabilities With Strategy
Identify Enterprise Strategy & Capabilities
Define Enterprise Strategy Define Business Unit Strategies Define Operational Capabilities required to realize business strategy
Beginning With Enterprise / BU Strategic Analysis And Culminating In Identification Of Operational Capabilities Needed To Support Business Goals
Strategic Goals
Revenue growth Revenue growth from emerging from emerging business business opportunities opportunities
Operational Capabilities
Horizontal integration Horizontal integration across processes, BUs, across processes, BUs, and Geos to provide an and Geos to provide an enterprise view of IBM enterprise view of IBM Consistent processes, Consistent processes, controls, and systems controls, and systems across BUs One way of across BUs One way of doing business doing business Visibility to key processes Visibility to key processes and events. Ability to and events. Ability to manage by exceptions manage by exceptions
Provide right data to the Provide right data to the right users at the right time right users at the right time for effective decision for effective decision making enterprise-wide making enterprise-wide Enterprise master data Enterprise master data (single source) to enable (single source) to enable horizontal integration horizontal integration
The assessment showed that the current processes and systems will not be able to support IBMs strategic objectives
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The Assessment Identified Key Challenges In The GIE Vision Current Brick-by-Brick Approach
We can see the vision
Product-centric
Process-centric
Bottom Line
We cant get there from here
Fragmented approach
Country-centric
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And Highlighted The Need For An Enterprise Wide Approach Spanning People, Process And Technology, And A Strong Governance Model
The New Approach
Governance
One governance model providing clear direction, focus and executive commitment
GIE Vision
Execution of the Enterprise Strategy
Data/Information
Strategic uses of trusted data and data warehouses
Application Architecture
Strategic applications used and others sunset
Infrastructure
A cost effective, reliable and adaptable infrastructure
Business Process
Design globally consistent processes across organizations and brands. A strong change management approach to transform the
culture
Current Approach
Development Methodology:
Adopt the best methods to ensure speed and quality
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We Leveraged An Enterprise Process Framework For A Higher Level Of Standardization, Simplification And Integration Across The Company
Hardware
Americas Europe AP
Software
Americas Europe AP Americas
Services
Europe AP
Vertical
Operating
Fulfill
Plan to Deliver
Plan to Deliver
Plan to Deliver
Enabling
Develop Strategy to Execute Manage Client Relationships Manage Channels Procure to Pay
Horizontal
Supporting
Manage Human Capital Manage Financial Resources Manage Information and Technology Manage Business Support
Governance
Operational Model
Investment Prioritization
Strategic Planning
Enterprise Priorities Roadmaps Initiative Definition
Business Transformation
LEAN SIGMA
Hardware
Americas Europe Europe AP Americas
Software Software
Europe Support AP Americas Americas
Services
Europe Europe AP
Operating
Order to Cash Order to Cash Fulfill Fulfill Plan to Deliver Plan to Deliver Plan to Deliver Opportunity to Order Market to Opportunity Idea to Market Develop to Manage Lifecycle Develop to Manage Lifecycle Develop to Manage Lifecycle Develop to Manage Lifecycle Develop to Manage Lifecycle Plan to Deliver
Enabling
Develop Strategy to Execute Manage Client Relationships Manage SalesChannels Manage and Channels Procure to Pay
Supporting
Manage Human Capital Manage Financial Resources Manage Information and Technology Manage Business Support
CHANGE MANAGEMENT
Communications Culture
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Education
Copyright IBM Corporation 2008
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Proven strategy, delivery and program management capabilities demonstrated across thousands of clients Complete end-to-end SAP software design, implementation and sustainment capabilities A proven, benefits driven, methodology and approach A large, global, experienced SAP consulting organization Largest network of SAP Solution Delivery Centers (12 centers across US, India, China, Brazil, Argentina) Best practices in business process transformation as well as SAP implementation
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The worlds leading business software supporting integration and streamlining end-to-end processes, while enabling corporate, financial, environmental and global trade compliance Deep knowledge of and experience with SAP software Additional process and technology best practices
The Business Transformation / IT organization within IBM will bring demonstrated expertise in business and process transformation The IBM Business (i.e., client) will provide the institutional and operational knowledge within and across Business Units / Geographies
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Specifically optimized for SAP OLTP and BW OLAP environments through a bilateral engineering relationship with price, performance, & reliability advantages; Reduce disk storage requirements by 30% with DB2 deep compression
Tivoli
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Network crawler software to automatically inspect/catalog SAP & IBM software, configuration, and dependencies
Hardware
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Specific SAP optimizations for pSeries, iSeries, zSeries, and xSeries Significant energy savings by consolidating multiple SAP and DB2 instances on a single box IBM Dynamic Infrastructure to provision a new SAP system in minutes instead of the typical 160+ days
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Robust business innovation and flexibility, Efficient utilization / expansion of our solutions portfolio, and Taking advantage of our extensive global delivery capabilities
We have the road map to realize global integration leveraging both our engagements with clients as well as our own experience with IBMs GIE transformation We are uniquely positioned to leverage the full range of capabilities to support a transition to global integration
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Global scale and capabilities Direct experience internally and with global clients Deep understanding of global business needs
Our 30+ year partnership with SAP enhances our ability to implement the GIE vision by leveraging the SAP integrated application to bring structure, organization and best practices to our processes and systems
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Dusty Rhodes, GBS Partner the Industrial Sector SAP Leader at john.rhodes@us.ibm.com
For more information about the Globally Integrated Enterprise, click on this link on the IBM web site:
http://www.ibm.com/ibm/ideasfromibm/us/integration/010607/index.html
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www.sap.com/us/sapphire