overview on i2 five.two scm solution suite hyun-woong jin global customer solution management i2...
TRANSCRIPT
Overview on i2 Five.Two SCM Solution Suite
Overview on i2 Five.Two SCM Solution Suite
Hyun-Woong Jin
Global Customer Solution Managementi2 Technologies
Hyun-Woong Jin
Global Customer Solution Managementi2 Technologies
©2002 i2 Technologies, Inc. CONFIDENTIAL
AgendaAgenda
Introduction on i2
Dynamic Value Chain Management
SCM Solution Suite
Implementation Methodology
Case Study
Introduction on i2
Dynamic Value Chain Management
SCM Solution Suite
Implementation Methodology
Case Study
©2002 i2 Technologies, Inc. CONFIDENTIAL
i2 Missioni2 Mission
$75 billion of value for the customers by 2005 Based on Value creation The only company that assesses and monitors the values for the
customers $29.9 billion of value as of 2001
$75 billion of value for the customers by 2005 Based on Value creation The only company that assesses and monitors the values for the
customers $29.9 billion of value as of 2001
©2002 i2 Technologies, Inc. CONFIDENTIAL
i2 is the Undisputed Market Leader in SCMi2 is the Undisputed Market Leader in SCM
““Once again, Once again, i2 Technologies is the i2 Technologies is the
onlyonly vendor in the vendor in the Leaders Quadrant…. “Leaders Quadrant…. “
““Once again, Once again, i2 Technologies is the i2 Technologies is the
onlyonly vendor in the vendor in the Leaders Quadrant…. “Leaders Quadrant…. “
““i2 maintains its position by i2 maintains its position by exhibiting exhibiting unrivaled visionunrivaled vision and and delivering deep delivering deep planning solutionsplanning solutions tailored tailored to to vertical industry vertical industry requirementsrequirements””
““i2 maintains its position by i2 maintains its position by exhibiting exhibiting unrivaled visionunrivaled vision and and delivering deep delivering deep planning solutionsplanning solutions tailored tailored to to vertical industry vertical industry requirementsrequirements””
Gartner Group Research 2001
©2002 i2 Technologies, Inc. CONFIDENTIAL
Industry Leaders are i2 Customers : Over 80% of Fortune Top 1000 Companies are i2 Customers Industry Leaders are i2 Customers : Over 80% of Fortune Top 1000 Companies are i2 Customers
Semiconductor
15 out of top 1615 out of top 16
Intel Samsung Elec.Texas InstrumentsMotorola ToshibaPhilipsMicronHynixAdvanced Micro- DevicesAmkorFujitsu IBMNational SemiNEC On SemiSTM
Automotive
9 out of top 109 out of top 10
GMFordDaimler- ChryslerToyotaVolkswagenRenaultMitsubuishiFiatHondaBMWHyundai Motors
Data Networking
5 out of top 55 out of top 5
Cisco Nortel 3COMNokiaLucent
Computer
10 out of top 1010 out of top 10
Dell IBM - PSGHP Apple Compaq NECAcer Gateway MicronToshiba
Metal
6 out of top 66 out of top 6
Nippon SteelPOSCOBritish SteelUS SteelLTVTimken Steel
Chemical
6 out of best 106 out of best 10
du Pont Dow ChemicalMonsantoOxychemUnion CarbideSherwin-WilliamsGE plasticEastman Rohm & HaasPolimeri
Yellow : i2 Customer
©2002 i2 Technologies, Inc. CONFIDENTIAL
i2 Koreai2 Korea
Started on Feb. 1997 Organization : 50 Employees – Pre-Sales / Sales / Localization / Consulting / GCSM Korean Customers :
Started on Feb. 1997 Organization : 50 Employees – Pre-Sales / Sales / Localization / Consulting / GCSM Korean Customers :
Area Year Company Solutions
SCM
1997 SEC SemiConductor SCP, DP, DF, FP, RL
1998
Anam Semi. MANDO SKC LG Elec. PC Div.
FP FP, RL FP FP, RL
1999 SEC Display Div/ SEC AMLCD POSCO
SCP, DP, DF, FP, ADW, RL SCP, DP, DF, FP, ADW, RL SCP, DP, DF, FP, ADW, RL, PO, TO, TM, PP
2000
SEC Home Appliance Div. LG Elec. Display Div. LG I&C HMC
SCP, DP, DF, FP, ADW, RL SCP, DP, DF, FP, ADW, RL SCP, FP, ADW, RL SCP, FP, Sequencer
2001
Hankook Tire Hynix Dongbu Steel LG Elec. DigitalAppliance
FP DF, SCP, FP, ADW, RL FP, RL FP, RL
eBiz 2000 / 2001 / 2002
eNtoB Autoever.com LG Elec. SEC
Private Marketplace : CRM Private Marketplace : SRM Private Marketplace : SRM Private Marketplace : SRM
©2002 i2 Technologies, Inc. CONFIDENTIAL
AgendaAgenda
Introduction on i2
Dynamic Value Chain Management
SCM Solution Suite
Implementation Methodology
Case Study
Introduction on i2
Dynamic Value Chain Management
SCM Solution Suite
Implementation Methodology
Case Study
©2002 i2 Technologies, Inc. CONFIDENTIAL
Introducing Dynamic Value Chain Management (DVCM)
It is business philosophy
Like “Total Quality Management” was back in 80’s
The main goal is to allow business partners to better collaborate with each other to eliminate the inefficiencies not only within the companies but also between their boundaries to achieve mutual benefits
It embodies workflows, methodology and enabling technology (software) to help value chains better compete in the marketplace
In the end, it is value chains that compete against each other in the marketplace.
©2002 i2 Technologies, Inc. CONFIDENTIAL
Velocity the Key WeaponAgainst VariabilityVelocity the Key WeaponAgainst Variability
How well you fight variability depends on the speed and quality of the following cycle
How well you fight variability depends on the speed and quality of the following cycle
MonitorMonitor
DecideDecideActAct
VelocityVelocity
Speed and quality depend on your internal
capability and the cooperation of your customers
and suppliers
©2002 i2 Technologies, Inc. CONFIDENTIAL
DVCM BasicsDVCM Basics
DVCM monitoring characteristics The ability differentiate important from unimportant
Track variability within your company and outside your company
Focus on tracking the appropriate variables.
Forecast and Predictive monitoring.
DVCM Decision Making Characteristics Integrated decision support at the strategic, tactical and execution level
Decision making response at the speed of business
Constraint driven, multidirectional planning/scheduling
Iterative multi participant planning, supporting what-if scenarios
Event Based Planning to enable realistic commitment
DVCM Execution Characteristics Enable multi company transaction/state management
Enable embedded decision-making within an execution workflow
Enable alerts to facilitate monitoring of execution to close the DVCM cycle
DVCM monitoring characteristics The ability differentiate important from unimportant
Track variability within your company and outside your company
Focus on tracking the appropriate variables.
Forecast and Predictive monitoring.
DVCM Decision Making Characteristics Integrated decision support at the strategic, tactical and execution level
Decision making response at the speed of business
Constraint driven, multidirectional planning/scheduling
Iterative multi participant planning, supporting what-if scenarios
Event Based Planning to enable realistic commitment
DVCM Execution Characteristics Enable multi company transaction/state management
Enable embedded decision-making within an execution workflow
Enable alerts to facilitate monitoring of execution to close the DVCM cycle
©2002 i2 Technologies, Inc. CONFIDENTIAL
Value ChainValue ChainConfigurationConfiguration
Value ChainValue ChainPlanningPlanning
Intelligent Intelligent Value ChainValue ChainExecutionExecution
Dynamic Value Chain Management FunnelDynamic Value Chain Management Funnel
©2002 i2 Technologies, Inc. CONFIDENTIAL
ERP vs DVCMERP vs DVCM
ERP
Single division only
No multi Company processing
Very slow processing
Can not scale
Not open
Antiquated processes
ERP
Single division only
No multi Company processing
Very slow processing
Can not scale
Not open
Antiquated processes
DVCM
Total Company
Total Value chain
Realtime processing
Highly scalable
Service architecture
100% pull system
DVCM
Total Company
Total Value chain
Realtime processing
Highly scalable
Service architecture
100% pull system
©2002 i2 Technologies, Inc. CONFIDENTIAL
Dynamic Value Chain Management:The SolutionDynamic Value Chain Management:The Solution
Metrics
Roles-basedVisibilityRoles-basedVisibility
Content StandardsNetwork and
Network Services
Integrated PlanningTransaction Management
and Execution
©2002 i2 Technologies, Inc. CONFIDENTIAL
Solutionsuites
Business processworkflows
Solutions
DVCMDVCM
i2i2 SCM SCM i2 CRMi2 CRMi2 SRMi2 SRM
Different ways to go to market with i2 Five.Two solutionsDifferent ways to go to market with i2 Five.Two solutions
i2 i2 CollaborativeCollaborative
SupplySupplyManagementManagement
i2 Service i2 Service ManagementManagement
i2 i2 TransportationTransportation
,,Distribution &Distribution &
LogisticsLogistics
i2 i2 CollaborativeCollaborative
DemandDemandManagementManagement
i2 Factoryi2 FactoryPlanning &Planning &SchedulingScheduling
Factory Planning Scheduling
Allocation Planning Master Planning Supply Collab. Profit Opt.
Forecast Collab. Promotions Collab. Merchanidise Planning Forecasting Category Price Opt. Markdown Opt.Products:Products:
Supply CollaborationSupply Collaboration Supply Chain PlannerSupply Chain PlannerMerchandise AllocatorMerchandise Allocator Replenishment PlannerReplenishment PlannerDemand FulfillmentDemand Fulfillment Inventory Visibility and ExecutionInventory Visibility and ExecutionScenario AnalyzerScenario Analyzer
Products:Products:Supply CollaborationSupply Collaboration Supply Chain PlannerSupply Chain PlannerMerchandise AllocatorMerchandise Allocator Replenishment PlannerReplenishment PlannerDemand FulfillmentDemand Fulfillment Inventory Visibility and ExecutionInventory Visibility and ExecutionScenario AnalyzerScenario Analyzer
©2002 i2 Technologies, Inc. CONFIDENTIAL
AgendaAgenda
Introduction on i2
Dynamic Value Chain Management
SCM Solution Suite
Implementation Methodology
Case Study
Introduction on i2
Dynamic Value Chain Management
SCM Solution Suite
Implementation Methodology
Case Study
©2002 i2 Technologies, Inc. CONFIDENTIAL
Some Trends in Supply Chain Management
Push environment Power with Manufacturers
Enterprise-centric planning Fixed time period planning Made-to-stock supply chains
Buffer inventory to safeguard against demand variability
Inventory managed within enterprise or pushed to suppliers
Competing companies
Pull environment Power with Consumers
Collaborative Planning Event driven planning Hybrid supply chains
Made-to-stock, Made-to-order, Configure-to-order
True understanding of demand shaping factors such as pricing, promotions, and product lifecycle
Collaborative Inventory Management over value chain
VMI, Channel inventories
Competing supply chains
Yesterday’s Critical Success FactorsYesterday’s Critical Success Factors Today’s Critical Success FactorsToday’s Critical Success Factors
©2002 i2 Technologies, Inc. CONFIDENTIAL
ERP vs SCMERP vs SCM
Enterprise Resource Planning
Advanced Planning System
Transaction processing Transaction processing Planning and optimization Planning and optimization
Generating historical reports Generating historical reports Optimal execution with velocity Optimal execution with velocity
Answers “What did we do?” Answers “What did we do?” Answers “What should we do?” Answers “What should we do?”
Designed for internal company use Designed for internal company use Enables multi-enterprise eCommerce Enables multi-enterprise eCommerce
- ERP is a tool providing Backward Visibility by automating Account based Transaction.- APS is a tool providing Forward Visibility by optimizing the utilization of the resources in Supply Chain to maximize the customer satisfaction.
©2002 i2 Technologies, Inc. CONFIDENTIAL
SCM Enabler: APSSCM Enabler: APS
APS(Advanced Planning System) is used to find the “optimal” solutions given competing constraints...
APS(Advanced Planning System) is used to find the “optimal” solutions given competing constraints...
Return on assets
Profitability
Customer service Labor productivity
Overtime
Premium Freight
Sales incentives
Rebates
Production volume
Production mix
Fixed assets
Capacities
Inventories
Lead times
Labor
Government requirements
Supplier capabilities
Process variability
©2002 i2 Technologies, Inc. CONFIDENTIAL
APS is Based on Some Simple Concepts...APS is Based on Some Simple Concepts...
Synchronous manufacturing and the theory of constraints simultaneous consideration of constraints (material, capacity, demand, labor,
setup, etc.) coordinated material release and synchronized schedules at each point in the
process Advanced warning of problems Extensive what-if analysis for dealing with process disruptions (i.e.
downtime, absenteeism, late material deliveries, demand mix and volume volatility)
Interactive problem solving and optimization Marrying the knowledge of the human planner with the speed of the system
Automatic problem solving and optimization leverage existing legacy systems Speed Sequential Planning → Concurrent Planning
Synchronous manufacturing and the theory of constraints simultaneous consideration of constraints (material, capacity, demand, labor,
setup, etc.) coordinated material release and synchronized schedules at each point in the
process Advanced warning of problems Extensive what-if analysis for dealing with process disruptions (i.e.
downtime, absenteeism, late material deliveries, demand mix and volume volatility)
Interactive problem solving and optimization Marrying the knowledge of the human planner with the speed of the system
Automatic problem solving and optimization leverage existing legacy systems Speed Sequential Planning → Concurrent Planning
©2002 i2 Technologies, Inc. CONFIDENTIAL
What is APS (Advanced Planning System)?What is APS (Advanced Planning System)?
APS involves the effective anticipation market demand, the optimal positioning of enterprise resources to meet demand, and the efficient fulfillment of demand as it is realized.
Demand
Fulfillment
Provide fast, accurate, and reliable delivery commitments to customer orders, and manages these commitments in a profitable way.
Supply
Planning
Ensure that the enterprise is prepared to meet the forecasted demand by generating a constrained, optimal supply plan
Demand
Planning
Develop an accurate, reliable view of market demand by identifying market trends and predicting changes in customer preferences.
Visibility
Value
Velocity
©2002 i2 Technologies, Inc. CONFIDENTIAL
AllocationPlanning
ForecastNetting
New Orders, Promise Information
Demand Planning
Supply Planning
Demand Fulfillment
Latest Available To Promise
DemandForecasting
OperationalPlanning
OrderPlanning
Forecast Supply Allocation
NettedForecast
Supply Plan/Allocations
Supply Plan
Frozen Plan
SCPFPFP
SCPFPFP
DF
DP
DFOrder
Promising
OrderCreation
DF
Forecast and Manage the accurate and reliable market demandMake an optimized
Supply plan against the given demand (Product,Material,Capa, Logistics..)
Production and material replenishment plan per each line/facility
Allocation and Order Promising based on customer classification
SCM Solution FootprintSCM Solution Footprint
©2002 i2 Technologies, Inc. CONFIDENTIAL
Benefit
Improved forecasting accuracy based on consensus.
Reduction of the inventory
Objective Develop an accurate, reliable view of market demand based on the
understanding how products are organized and how they are sold
Characteristics Providing the global visibility.
Multi-Dimension view
Multi-Hierarchy view
Collaboration to make the consensus. Statistical Estimation or Simulation
Pick Best
Tracking Forecast adjustment
Demand PlanningDemand Planning
©2002 i2 Technologies, Inc. CONFIDENTIAL
Benefit Improved Profitability Improved Facility Efficiency Reduced WIP
Objective Generate an optimal supply plan (Global Capacity Plan, Product Mix,
Material Plan, MPS, Logistics Plan) that helps the enterprise to position its resources to meet the forecasted demand generated by demand planning process
Characteristics Planning Validity and Optimality
including production, distribution, transportation, procurement.
Planning Velocity memory resident architecture to
execute the planning calculation iterative What-if simulation considering diverse objective (facility
utilization, inventory, order promising, etc.)
Master Planning
©2002 i2 Technologies, Inc. CONFIDENTIAL
Demand Fulfillment
Benefit
Improved Order Promising Capability
Improved Customer Service
Objective Provide fast, accurate, and reliable delivery date response to customer orders,
and to manage this activity in a profitable way.
Characteristics Dynamic Order Fulfillment
promise on a dynamic, real-time supply plan
Various Model for Customer/Product Allocation
customer/product based allocation to manage the order in a profitable way
Forecast Netting prioritizing demands for the optimal
allocation
©2002 i2 Technologies, Inc. CONFIDENTIAL
Production Planning / Scheduling
Benefit Improved Facility Efficiency Prompt response on Changed
Order Reduced Cycle time Reduced WIP
Objective Provide PCT for each order and the detailed schedule for each facilities by
considering all the constraints on facilities, tools, materials.
Characteristics Generating a plan considering
multiple constraints. Facility Capacity, Tool, Order Priority,
Alternate Material, Batch, etc. Scheduling Issuing Work Order
Daily, Shift, Facility Considering Setup time
Sequence dependent setup time What-if Simulation
©2002 i2 Technologies, Inc. CONFIDENTIAL
Average Quantified Benefits Range of SCM (Industry General)
Reduce inventory (raw, WIP, FG) 10% to 25%
Reduce planning cycle times 70% to 95%
Reduce order lead times 10% to 40%
Reduce production lead times 10% to 50%
revenues expenses
assets
ROA
Increase customerservice 5% to 15%
Increase throughput 2% to 5%
Reduce operating expenses10% to 50%
Reduce logistics spend 5 – 20%
©2002 i2 Technologies, Inc. CONFIDENTIAL
AgendaAgenda
Introduction on i2
Dynamic Value Chain Management
SCM Solution Suite
Implementation Methodology
Case Study
Introduction on i2
Dynamic Value Chain Management
SCM Solution Suite
Implementation Methodology
Case Study
©2002 i2 Technologies, Inc. CONFIDENTIAL
New innovation methodology
Tinkering Approach
Transforming Approach
To-BeProcessDesign
VisioningSolutionPackageSelection
ProjectImplementation
Process Consulting Firm’s Involvement
Solution Provider’s Involvement
Process Consulting Firm’s Involvement
Solution/Concept Provider’s Involvement
Visioning
To-BeProcessDesign
SolutionPackageSelection
ProjectImplementation
©2002 i2 Technologies, Inc. CONFIDENTIAL
Establish implementation strategy through Value Assessment (VA) or Strategic Opportunity Assessment (SOA)
Presents As-Is analysis and implementation road map Presents implementation benefit analysis (by specific value)
Phase implementation strategy by Business Release Methodology Break down implementation project into manageable phases which are called Business Release (BR): 3~6
months Each BR defines clear Business Target (ex: inventory reduction) Rapid implementation strategy which focuses on realization of specific business value-return
Use of Template Provides industry specific SCM solution template Best Practice, Test Plan, Data, and Documents Reduces implementation period
Establish implementation strategy through Value Assessment (VA) or Strategic Opportunity Assessment (SOA)
Presents As-Is analysis and implementation road map Presents implementation benefit analysis (by specific value)
Phase implementation strategy by Business Release Methodology Break down implementation project into manageable phases which are called Business Release (BR): 3~6
months Each BR defines clear Business Target (ex: inventory reduction) Rapid implementation strategy which focuses on realization of specific business value-return
Use of Template Provides industry specific SCM solution template Best Practice, Test Plan, Data, and Documents Reduces implementation period
i2 Implementation Methodology:TMPM (Trade Matrix Project Methodology)i2 Implementation Methodology:TMPM (Trade Matrix Project Methodology)
VA /VA /SOASOA MobilizeMobilize DesignDesign DevelopDevelop AcceptAccept Go LiveGo Live SIASIA
Business Release ActivitiesBusiness Release Activities
Less than 6 MonthsLess than 6 Months
©2002 i2 Technologies, Inc. CONFIDENTIAL
i2’s Approach to Integrationi2’s Approach to Integration
Through its 9000+ customer implementations, i2 has built a good understanding of various aspects associated with integration.
i2 has come up with a framework that integrates not only i2 internal systems such as SCM, CRM and SRM but also external systems such as ERP and Legacy systems.
Integration needs to be flexible and should allow
Specification of the workflow steps to follow
Configuration at each stage in the workflow based on specific business needs
Integration needs to be extensible
Objective is not only to deliver fully integrated solutions of i2 products covering SCM, CRM and SRM, but also to provide a solution to integrate seamlessly with other packaged applications and legacy infrastructure
The goal is to adopt an integration approach and architecture for integrating diverse systems that will become an integration advantage to customers
Through its 9000+ customer implementations, i2 has built a good understanding of various aspects associated with integration.
i2 has come up with a framework that integrates not only i2 internal systems such as SCM, CRM and SRM but also external systems such as ERP and Legacy systems.
Integration needs to be flexible and should allow
Specification of the workflow steps to follow
Configuration at each stage in the workflow based on specific business needs
Integration needs to be extensible
Objective is not only to deliver fully integrated solutions of i2 products covering SCM, CRM and SRM, but also to provide a solution to integrate seamlessly with other packaged applications and legacy infrastructure
The goal is to adopt an integration approach and architecture for integrating diverse systems that will become an integration advantage to customers
©2002 i2 Technologies, Inc. CONFIDENTIAL
Common Integration ServicesCommon Integration Services
CIS Framework is an i2 abstraction on top of many underlying integration platforms (such as webMethods, Informatica)
It is a set of services enabling enterprise applications to participate in integrated environment
List of services: communication, logging, monitoring, data transformation, workflow design & runtime, single sign-on, etc.
Complete integration framework to interact with any i2 product or 3rd party system.
It is specifying common meta-data format used to simplify TMAPI based collaboration.
CIS Framework is an i2 abstraction on top of many underlying integration platforms (such as webMethods, Informatica)
It is a set of services enabling enterprise applications to participate in integrated environment
List of services: communication, logging, monitoring, data transformation, workflow design & runtime, single sign-on, etc.
Complete integration framework to interact with any i2 product or 3rd party system.
It is specifying common meta-data format used to simplify TMAPI based collaboration.
©2002 i2 Technologies, Inc. CONFIDENTIAL
i2 Integration Architecturei2 Integration Architecture
PlanningSub-system
SCM
CustomerManagementSub-system
CRM
Design SourceSub-system
SRM
ERPSub-system
(SAP)
ODS Explore
Role based Common User Interface
LegacySub-system
(OS390)
OMx IMx
ETL-Bulk Data Transfer (back) Bus
Exchanges Hosted ServicesContent
FreightMatrix
TMOCN
Trading Partners
Common Integration Services
…
TransactionalPlatform
Enterprise Messaging (front) Bus
Workflow
Firewall
……
Public Interne
t
Public Interne
t
©2002 i2 Technologies, Inc. CONFIDENTIAL
AgendaAgenda
Introduction on i2
Dynamic Value Chain Management
SCM Solution Suite
Implementation Methodology
Case Study
Introduction on i2
Dynamic Value Chain Management
SCM Solution Suite
Implementation Methodology
Case Study