MOTOROLA SOLUTIONS’ OPERATIONAL TRANSFORMATION

November 14, 2013

CHRIS ARMBRUSTER SENIOR DIRECTOR, BUSINESS TRANSFORMATION MOTOROLA SOLUTIONS

MIKE MORSCH SENIOR DIRECTOR, SUPPLY CHAIN SYSTEMS MOTOROLA SOLUTIONS

SPUN OFF MOBILE DEVICES

AND HOME

83 YEARS

2011 CHANGES

CALL TO ACTION FOR TRANSFORMATION + =

MOTOROLA SOLUTIONS

MOTOROLA MOBILITY

NOKIA SIEMENS NETWORKS

ALIGN PROCESSES & I.T. WITH MORE FOCUSED BUSINESS

PAGE 2

MOTOROLA SOLUTIONS

VERTICALS

PRODUCT + APPS + SERVICES

NEXT

GENERATION

CUSTOMER FOCUSED

SOLUTIONS DRIVEN

TECHNOLOGY LEADERS

GOVERNMENT ENTERPRISE

PCR iC&C PRIVATE

BB TETRA ASTRO iDEN ADC ENC RFID EMC SW

ENERGY & UTILITIES

RETAIL & HOSPITALITY TRANSPORTATION & LOGISTICS

MANUFACTURING & FIELD MOBILITY

EDUCATION & HEALTHCARE

GOVERNMENT

2012 REVENUE: $8.7 BILLION

MISSION-CRITICAL COMMUNICATIONS FOR GOVERNMENT AND ENTERPRISE CUSTOMERS

21,000 EMPLOYEES

PAGE 3

MANUFACTURING / SYSTEM INTEGRATION DISTRIBUTION 3RD PARTY DISTRIBUTION

PAGE 4

OUR SUPPLY CHAIN FOOTPRINT

PL

3PL

3PL

3PL

3PL

3PL

3PL

3PL 3PL

BREAKING THE LEGACY CYCLE

PAGE 5

LEGACY

DRIVES COMPLEXITY

BURDENS NEW

INITIATIVES

“DESIGN IN” RATHER THAN

ELIMINATE

INCREASES COMPLEXITY

BREAK HERE

REGIONAL &

SITE FOCUS

PERFECT THE PIECES

QUICKLY REACT

9 ERPS

DISPARATE HOME-GROWN TOOLS

INITIAL

STATE GLOBAL

PROCESSES

OPTIMIZE THE WHOLE

ANTICIPATE & SHAPE

1 ERP

INTEGRATED VCP APPLICATIONS

DESIRED

STATE

2011 - TRANSFORMATION BEGINS

PAGE 6

CAPABILTY

ROADMAP

FOUNDATIONAL

DEPLOYMENT

GLOBAL

ONBOARDING

PROCESS

MATURITY

PROCESS OWNERS &

CHANGE LEADERS

SUPERUSER

DEVELOPMENT

ALL PROCESS

PRACTITIONERS

COLLABORATION

INNOVATION

LOAD &

CHASE

PLAN &

EXECUTE

ANTICIPATE &

SHAPE

DELIGHT &

DISRUPT

ARCHITECT

THE SOLUTION

IMPLEMENT CORE VCP

APPLICATIONS

COMPLETE VCP

FOOTPRINT

FINE TUNE

APPLICATIONS

CRAWL WALK RUN FLY

RO

AD

MA

P

PE

OP

LE

P

RO

CE

SS

S

YS

TE

MS

MANAGING CHANGE GRADUALLY

PAGE 7

• AMBASSADORS OF

CHANGE

• ALREADY KNOW WHO

THESE PEOPLE ARE

• END USERS

• KEY FOCUS OF CHANGE

MANAGEMENT

• GLOBAL PROCESS

OWNERS

• FUNCTIONAL TRACK

LEADS

• SUPPLIERS, 3PLS

& MFG PARTNERS

• COLLABORATION

OPPORTUNITIES

TEAM STRUCTURE IS A CRITICAL SUCCESS FACTOR

PAGE 8

LEADERSHIP

PROCESS PRACTITIONERS

SUPERUSERS

TRADING

PARTNERS

PROCESS TRANSFORMATION

PAGE 9

CRAWL WALK RUN

PLANNING

PARADIGM ‘”LOAD & CHASE” ‘”PLAN & EXECUTE” ‘”ANTICIPATE & SHAPE”

TECHNOLOGY ORACLE 11i, SAP &

LEGACY PLANNING

ORACLE R12/11i, SAP,

VCP & LEGACY

ORACLE R12 &

VCP APPLICATIONS

PLANNING

MODEL SERIAL & REGIONAL/SITE

ALIGNMENT

SEMI-INTEGRATED W/ MIX

OF VCP & LEGACY

SINGLE PLANNING RUN

FOR ENTIRE SUPPLY

PLANNING

CYCLE PLANNING CYCLE OF

THREE WEEKS

PLANNING CYCLE OF

ONE WEEK

PLANNING CYCLE OF

LESS THAN 1 WEEK

CONSTRAINTS APPLIED WITHIN

EXECUTION WINDOW

APPLIED TO PLANNING

& EXECUTION WINDOWS

APPLIED & MITIGATED

DURING PLANNING

PLANNING TRANSFORMATION APPROACH

PAGE 10

PAGE 11

CUSTOMER

DISTRIBUTION

MANUFACTURING

SUPPLIERS

START FINISH

OUR PLANNING JOURNEY

CUSTOMER

DEMAND

MANUFACTURING DISTRIBUTION

ASSEMBLY

PRODUCT

SUPPLIERS

PARTS

CENTRAL PLANNING

PAGE 12

THE SIZE OF CHANGE REQUIRES AN INTERIM PROCESS

MANUFACTURING

SUPPLIERS

CUSTOMER

DEMAND

MANUFACTURING DISTRIBUTION

ASSEMBLY

PRODUCT

SUPPLIERS

PARTS

CENTRAL PLANNING

LEGACY PROCESS TEMPORARILY

COEXISTS WITH NEW PROCESS

TECHNOLOGY TRANSFORMATION

PAGE 13

GLOBAL PLANNING FOOTPRINT

PAGE 14

DEMAND

PLANNNG

DEMANTRA

S&OP

DEMANTRA

SAFETY STOCK

PLANNING

INVENTORY

OPTIMIZATION

SCENARIO

ANALYSIS

RAPID

PLANNING

DECISION

SUPPPORT

APCC

ORCHESTRATION &

FULFILLMENT

ORDER

MANAGEMENT

ORDER PROMISING

GOP

TRADING PARTNER

COLLABORATION

E2OPEN

SUPPLY

PLANNING

ASCP

FACTORY

PLANNING

PRODUCTION

SCHEDULING

PAGE 15

Create Forecast Position & Level

Demand

Dem

an

d P

lan

ner

Cen

tra

l P

lan

ner

DC

Pla

nn

er

Pro

du

cti

on

P

lnr

Bu

ye

r

Collect Plan Inputs

Validate Plans Load Data

Warehouse

Review

Delinquencies Analyze Revenue

Review CRSD- SSD

Gaps

Rev. Resched.

Exceptions

Adjust Sales Order

Priorities

Implement New SSD Rel. Planned Orders

to IRs

Review Exceptions

Review Total Site

Demand

Simulate Plans &

Scenarios

CRSD Plan

SSD Plan

Resched. Plan

Review Exceptions Rel. Planned Orders

to DJs

Rel. Planned Orders

to IRs

Optimize Prod.

Schedule

Clear

To Build

Rel. Planned Orders

to DPO

Update Supply

Commit

Run Plans

A

Plan

Safety Stock

INTERIM PROCESS

BLUEPRINT

= VCP LEVERAGE BLUE

BOX

Manage

Shortages

Apply

Fair Share

IO

DEMANTRA

ASCP

ASCP

ASCP

ASCP

APCC

ASCP ASCP

ASCP

ASCP ASCP ASCP

ASCP

ASCP RP

PS

A

APCC

APCC

PAGE 16

FIRST SSD

FOR NEW S.O.

DIRECT BUY

RELEASES &

SHORTAGE

MANAGEMENT

TRADING

PARTNER

COLLABORATION

SSD

IMPROVEMENT

TRANSFER

MFG TO DC

ATP (SSD)

SIGNAL TO

CUSTOMER

CONSTRAINED

EXECUTION (CRD)

SIGNAL TO

LEGACY TOOLS

UNCONSTRAINED

MATERIAL (CRD)

SIGNAL TO

SUPPLIERS

UNCONSTRAINED

BACKLOG (CRD)

SIGNAL TO

DISTRIBUTION

CONSTRAINED

MAKE-XFER (SSD)

SIGNAL TO

FACTORY

CONSTRAINED

OUR ASCP PLANS

PAGE 17

START – REGIONAL ERPS & LEGACY PLANNING TOOLS

CUSTOMER FACING SYSTEMS

SUPPLIER FACING SYSTEMS

GLOBAL (ENTERPRISE)

UNIQUE LEGACY

PLANNING TOOLS

SAP

AMERICAS (GOVERNMENT)

UNIQUE LEGACY

PLANNING TOOLS

ORACLE 11i

EUROPE (GOVERNMENT)

UNIQUE LEGACY

PLANNING TOOLS

ORACLE 11i

ASIA (GOVERNMENT)

UNIQUE LEGACY

PLANNING TOOLS

ORACLE 11i

PAGE 18

STEP 1 – EBS & CORE VCP APPLICATIONS FOR 1 SBU

CUSTOMER FACING SYSTEMS

SUPPLIER FACING SYSTEMS

TRILOGY

VCP CORE

ORACLE R12

AMERICAS (GOVERNMENT)

UNIQUE LEGACY

PLANNING TOOLS

ORACLE 11i

EUROPE (GOVERNMENT)

UNIQUE LEGACY

PLANNING TOOLS

ORACLE 11i

ASIA (GOVERNMENT)

UNIQUE LEGACY

PLANNING TOOLS

ORACLE 11i

PAGE 19

STEP 2 – ADD ASIA AND COMPLETE VCP FOOTPRINT

CUSTOMER FACING SYSTEMS

SUPPLIER FACING SYSTEMS

TRILOGY

DEMANTRA, ASCP, APCC, RP, IO, S&OP & PS

ORACLE R12

AMERICAS (GOVERNMENT)

UNIQUE LEGACY

PLANNING TOOLS

ORACLE 11i

EUROPE (GOVERNMENT)

UNIQUE LEGACY

PLANNING TOOLS

ORACLE 11i

PAGE 20

FINAL STEP – ADD EUROPE AND AMERICAS

CUSTOMER FACING SYSTEMS

SUPPLIER FACING SYSTEMS

TRILOGY

DEMANTRA, ASCP, APCC, RP, IO, S&OP & PS

ORACLE R12

LESSONS LEARNED

•HOW YOU GET THERE IS AS IMPORTANT AS

WHERE YOU ARE GOING

•END-TO-END BUSINESS MODEL MUST DRIVE

FUNCTIONAL SOLUTION

•GLOBAL OWNERSHIP ENABLES GLOBAL

PROCESSES

•CONFIGURE TO ORDER RAISES COMPLEXITY

•ASCP IS A POWERFUL ANALYTICAL APPLICATION

•PLAN COMPLEXITY DRIVES PROCESSING TIMES

•FREQUENTLY REVIEW INFRASTRUCTURE SIZING

DURING SOLUTIONING