©2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice©2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

FACTORY IT AS A SERVICE.

SICHER, SCHLANK UND SCHNELL–

IT ALS MOTOR FÜR DEN FLEXIBLEN

PRODUKTIONSVERBUND

Cebit Automotive Day 2011

Oliver Bahns,

Global Director

Automotive & Aerospace Industries

Agenda

2 HP Confidential

HP@automotive

Developments in global automotive production

Business & IT challenges of a manufacturing plant

Factory IT as a Service

HPs Global Automotive Center of Excellence

Did you know?

3 HP Confidential

Leaderfor SAP

IS Automotive in APAC

Ashok Leyland

IS Auto and After sales

SAP Supplier Cloud Computing

SAP Auto Analytics

Continuous Solution

Enhance-ments

Bajaj After

Sales & Service Parts Planning

SAIC-IVECO IS Auto and

VM S

Tata M otors

IS Auto

FAW SAP

Upgrade

N anjing Auto

SAP

SAIC Gear

SAP

SAIC IS Auto

Bajaj SAP Warehouse

M gmt POC

Bajaj SAP

APQP M gmt

Bajaj SCM

Visibility

BM W PP

Improvement SGM IS Auto

Stress Test

SGM POC

SGM SAP

Upgrade and Improvement

Bajaj SAP Supplier M anagement

HKM C IS Auto POC

Daimler SAP IPT

SGM IS Auto

SGM SAP Consolidation

GM Global IS Auto Stress

Test

Bajaj SAP

Enterprise

GM Daew oo

R/ 3 Infra

2002 2003 2004 2005 20102001 2006 2007 2008 2009

Internal Dev. for SAP Auto

Solution

• Key Insights– HP has invested in SAP Automotive solutions since 2001

– Industry expertise takes patience and time

– We cannot buy ourselves into industry leadership

– Continuous customer contact and projects are key to

development of our solution offerings

– We continue to make targeted investments in industry and

cloud enabled solutions

IS Auto

Leading automotive

CRM solution provider

Customers

OEM

Retail

cloud

Contact center

Leadingtelematic IT

provider

© Copyright 2010 Hewlett-Packard Development Company, L.P.13

HP HAS ALL YOU NEED - (1/ 2)

Content & Partner Management

Purchases … … -anywhere …

… -anytime … … -spontaneous

Ringtones

Ticketing (Cinema,

theatre, ...)

Information

(articles, …)

Betting

Pictures

Gambling

Tangible goods

(books, CDs,..)

Vending machines

Public

Transportation

Music

Download

Navigation

Routing

Parking

News

(events,wheather, traffic, ...)

Mobile payment & billing

M2M communication

App Store & Portal

Solution

Telematic IT Provision

Mobile device & WebOS

Part ofFormula 1 team(2002 – 2008)

Solutionsfor E/E quality management

Quality Center

> 20 years in MES experience

1986 2011

HP automotive solution portfolio

4 HP Confidential

Servers, Storage &

Networking

Personal Systems

Imaging & Printing Solutions

SoftwareTechnology

ServicesEnterpriseServices

Products &

Services

Application Transformation

Hybrid Delivery – On Premise, Private/Public Cloud

ConvergedInfrastructure

EnterpriseSecurity

InformationOptimizationEnterprise

Solutions

Industry Solutions SCM & MES CRM/AftersalesPD&E

Connected Vehicle

• Operational excellence

• Time to volume• Quality assurance

• Time to customer • Customer retention• Sales excellence

• Product innovation• Time to market• Engineering cost

reduction

Agenda

5 HP Confidential

HP@automotive

Developments in global automotive production

Business & IT challenges of a manufacturing plant

Factory IT as a Service

HPs Global Automotive Center of Excellence

Global automotive sales forecast

6 HP Confidential

Note: Market = Cars and LCVs1. Includes Central America and Caribbean2. Includes Turkey, Cyprus and Malta

Source: IHS Global Insight, rounded status: 12/10

Production capacity development

7 HP Confidential

Source: Global Prodcution Summary, IHS Automotive, light vehicles

0

5

10

15

20

25

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Vehic

le P

roduct

ion (m

illio

n)

Vehicle Production Forecast

South Asia Greater China E Europe

South America North America Middle East/Africa

W Europe Japan/Korea

Sca

le u

p

& q

ualit

yFl

exib

ility

&

effic

iency

Global automotive production –2 different patterns

8 HP Confidential

Emerging markets Mature markets

• Scale-up production capacity

• Ramp-up new plants

• Establish production standards

• Increase volume- and

model-flexibility

• Modernize existing plants

• Improve operational excellence

Predicted global production capacity growthrequire different strategic approaches

9 HP Confidential

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

CAGR 2010 - 2016 Ramp-up new plants

Improve operational excellence

Source: Global Prodcution Summary, IHS Automotive, light vehicles

Agenda

10 HP Confidential

HP@automotive

Developments in global automotive production

Business & IT challenges of a manufacturing plant

Factory IT as a Service

HPs Global Automotive Center of Excellence

Challenges of a plant inside Volkswagen AG

11 HP Confidential

VW PorscheSkodaAudi others

Corporate

Brands

Operations –60 production locations of which 41

assemble cars

Models

Volkswagen AG

Touareg Q7 Octavia Cayenne Up!

VW Bratislava

• Performance at each plant is measured against a standard set of KPIs

• Individual plants “compete” to win the manufacture of new models

• Winning new models provides a “compelling reason” for plant to act

The business challenge for VW Bratislava

12 HP Confidential

Corporate/Brand Expectations• Accelerate new model

introduction

• Produce more cars

• Continue to improve quality

• Reduce down time

• Respond more quickly to change

Ability to execute

• Complex ecosystem of suppliers and partners

• Little or no flexibility

• Dependencies on tacit knowledge

• Multiple potential risk factors

• No chance to transform

• Quickly transform and re-align all plant IT processes

• Enhance IT process flexibility to accommodate future changes more easily

Improve plant “ranking” to win new models and new investment

The solution – Out task Factory ITIdentify a partner – TRANSFER the operation – then TRANSFORM

Phase 1: Transitions-preparationtogehter withthe Provider.

Phase 3:Optimizationmeasures in theresponsiblity of of the Provider

Phase 1 Phase 2 Phase 3 Phase 4

TransitionsPreparation

Transition“Shift”

Transformation“Repair”

Improvement in FMO

02.01.09 - 28.02.09 01.03.09 - 31.05.09 01.06.09 - 28.02.10 28.02.10 -

Phase 2: All Services transferred „As ls“ under the operative responsibility of the Provider.

01.06.09Responsibility through the Provider

Improvement

VW SK HP

Phase 4: Ongoingimprovements in FMO guided via the Provider.

Contract Today

HP was willing to engage with the customer in exactly the way the customer wanted…

Why HP was the perfect partner?

14 HP Confidential

• enter into a true risk-sharing partnership

• take responsibility for a complex, fragmented, legacy IT environment

• accept contractual and penalty terms linked to key production metrics

• engage with the client to deliver plant-wide IT operations “as a service”

• work with VW to deliver continuous improvements throughout contract life

HP was willing to:

“There are of course lots of issues and considerations that go into the decision making process but having people who can work very closely with us on processes that are so crucially important is at the top of the list. After looking at a number of potential partners we decided to move forward with HP – they had lots of clever people with automotive experience in their service delivery team. HP were clearly the best qualified partner in terms of understanding our business and we picked them as the company with which we wanted to work.”

Detlef Banik, CIO – VW Slovakia

VW Slovakia

Agenda

15 HP Confidential

HP@automotive

Developments in global automotive production

Business & IT challenges of a manufacturing plant

Factory IT as a Service

HPs Global Automotive Center of Excellence

Factory IT as a Service

„Factory IT as a Service“provides the required IT to operate a manaufacturing plant in an „as a service“ delivery model.

The solution covers:

the complete technology stack from applications to therequired infrastructure like servers, storage, network

the complete lifecycle of plant IT: implement -> manage -> modernize -> transform

Main Characteristics: Transformation based on customer MES or standard software Standard software for different plant catergories (assembly;

powertrain, component plants) Flexible sourcing models (outsourced, outtasked)

FACTORY ITAS A SERVICE

End-to-end service contract Service levels directly linked

to production outcomes

FaaS – customer benefits

17 HP Confidential

Transparent and predictable cost model for MES with Service Level Agreements directly linked to production outcomes

Shorten factory ramp-up and changeover times and mitigate risks

Improved plant availability due to reduced complexity and higher responsiveness in IT services based on industry standards

Roadmap to MES transformation as part of risk sharing partnership ensures the support of changing business requirements

Own IT gains headroom to focus on innovation and transformation projects rather than on operating the current environment

+

+

+

+

+

BrasilFaaS CoC

GermanyFaaS CoC

IndiaFaaS CoC

ChinaFaaS CoCUS

FaaS CoC

Factory IT as a service –global delivery model5 Center of Competence provide support where needed

18 HP Confidential

• On-site Plant Operation Center (POC) at the customer plant ensure high responsiveness of service

• Global Center of Competence (CoC) ensure consistency and leverage as well as economy of scale

Agenda

19 HP Confidential

HP@automotive

Developments in global automotive production

Business & IT challenges of a manufacturing plant

Factory IT as a Service

HPs Global Automotive Center of Excellence

Global Automotive CoEShanghai

Global Automotive Center of Excellence

20 HP Confidential

HP Automotive Solution Development >500 Automotive Experts 5 global initiatives:

Engineering Collaboration Extended W/H Management, Manufacturing Execution DMS/CRM Intelligent Mobility

2 Center planned for 2H11 in India

THANK YOU

21 HP Confidential