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© 2014 IBM Corporation

Enterprise Architecture for traditional industries in a globally transforming digital age

Dr. Sebastian Wedeniwski IBM Distinguished Engineer, CTO Automotive Industry


IBM Global Automotive

IBM Amagi Enterprise Architect Summit – Dr. Sebastian Wedeniwski, IBM Distinguished Engineer, CTO Automotive Industry – September 5, 2014

Dr. Sebastian Wedeniwski

Sebastian is an IBM Distinguished Engineer who is continuous driving optimized business solutions through IT innovation specifically with automotive clients. In this activity he was the inventor of many unique optimization algorithms. He is the Chief Technology Officer for IBM Automotive Industry Japan leading the technical strategy for data-centric business models and connected vehicles to create new solutions to address the physical and virtual mobility demands of the industry. Sebastian has more than 21 years experience in the IT and 12 years in the Automotive Industry. He has a strong reputation recognized globally within and outside IBM as a member of IBM’s IT Architect profession, IBM Academy of Technology Leadership Team, and IBM Technology Team Advisory Council. Before joining IBM Research & Development Laboratory Germany as chief IT architect for payment systems in banking environments in 1998 he managed and owned two software development companies. He graduated (Associate's Degree/Diploma) both in Mathematics (Cryptography) and Computing Science (Computational Mathematics) in 1997 and received his Doctorate Degree in Mathematics (Number Theory) from the University of Tübingen in 2001. Between 1998 and 2005 he set many mathematical computation world records and led the project ZetaGrid which was the first large distributed computation grid within IBM connecting 11,000 systems. In 1993 he was winner at the 12th German Nationwide Contest for Computing Science (BWINF). Sebastian is a member of the International Association of Software Architects (IASA) and Association of The Open Group Enterprise Architects.

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This may be a wonderful tool

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Photo: Nespresso




But this a wonderful experience!

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Product orientation – example Bill of Material…thousands of parts

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Automobile

Powertrain

Internal combustion

engine

Cylinder head

Valvetrain

Globe valve

Valve spring

Camshaft

Subsystems

Modules

Groups

Subgroups

Parts

Photo: Daimler AG




Individualized products for target customer segments

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Photos: Daimler AG

Offroad

Family Electric

Performance …




An engineering approach: •  A product is complete, if you cannot add functionality to it…

Purpose oriented approach: •  A product is complete, if you cannot remove functionality any more without breaking it…

But we need to think about the way we architect a system

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Photos: Victorinox




1886 Benz Patent Motor Car

2014 New Mercedes

Product 0% IT

Research & Development

Calculation support

Production 0%

Marketing & Sales 0%

Aftersales 0%

Administration Calculation support

Product >30% (Software)


>70% (Computer-Aided Engineering)

Production >60% (Computer-Aided Manufacturing)

Marketing & Sales >40% (Internet)

Aftersales >30% (Diagnostics)

Administration >60% (HR, Finance, Procurement)

…

Photos: Daimler AG

Growing importance of Information Technology in Automotive

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Digital Transform

ation of the product and supporting processes

Vehi

cle

Arc

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Ent

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ise

Arc

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Scope of Enterprise Architecture

Business'Domain'

Business'Capability'

Business'Func4on'

Organiza4on'

Business'Process' Applica4on'

1:n

1:n

Business'Service'

m:n m:n m:n

m:n

uses follows

Business'Model'

Technology'

belongs to

m:n

Data'

m:n m:n

m:n

Enterprise Architecture

Business Orientation

IT Orientation

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IBM Automotive Industry Domain Model – High Level Overview

Research'&'Development' Produc4on'

Financial'Services'

ACermarket'

Product'Management'&'Marke4ng'

Business'Administra4on'

General'Support'Func4ons'

Procurement'

PreFProduc4on'/'Construc4on'

Supply'Management'&'Fulfillment'Logis4cs'

Sales'

Mobility'Services'

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IBM Automotive Industry Business Capability Model


Business Administration

General Support Functions

Procurement

Supply Management & Fulfillment Logistics

Product Management & Marketing

Dev. Project Mgmt Dev. Standards Requirements Design E/E & Software Dev. Mechanical Dev. Digital Validation Physical Validation Development Support Research Documentation

Pre-Production / Construction

Production Sales Financial Services

Aftermarket Mobility Services

Aftersales Strategy Relationship Mgmt Contract Mgmt Service Station Planning Parts/Svcs Offering Mgmt Vehicle Service End-of-life Service Logistics / Supply Mgmt Aftersales Documentation Warranty / Quality Mgmt Service Training

Process Planning (Assembly, White Body) Tooling/Die/Mold design Production Engineering (Robot, Machining) Plant design Digital Factory Type test (Vehicle certification) Issue Tracking

Factory Management Production Planning / Scheduling Component Production Assembly Production Maintenance Quality Management

Product / Portfolio Mgmt Lease Mgmt Contract Mgmt Credit Admin. Contract Accounting Contract Origination Funding Mgmt Service Comp. Mgmt Collection Mgmt Banking / Brokerage Remarketing Compliance Risk Mgmt

Sales Strategy Demand Forecast / Analysis Sales Planning Lead Management Order Mgmt / Fulfillment Sales Documentation Lease Mgmt / Financial Services Vehicle Service Offerings

Mobility Strategy Infotainment Connected Navigation Safety and Security In-Vehicle Driver Guidance Vehicle Diagnostics Electric Vehicle Srvc Fleet Management Mobility 2.0 (Car Sharing, PAYD Insurance, Intermodal Travel, Traffic Mgmt)

Supply Chain Strategy Supply Chain Integration Mgmt Partner Relationship Mgmt Warehouse Mgmt

Transport Mgmt Dispatching Container Mgmt Inventory Mgmt Disposition / Consumer Supply

Controlling Accounting & Financial Reporting Treasury Risk Mgmt. Policy Mgmt

HR IT Internal Control / Audit Mgmt Tax Mgmt Planning and Forecasting

Real Estate Mgmt Env. Compliance, Security, Safety Fixed Assets Administration Knowledge Mgmt of Corp. Inform. (lifecycle mgmt, maintenance process)

Contract Management Performance Management

Supplier / Procurement Strategy Supplier Management

Tender Process

Portfolio Management Product Requirements Mgmt Product Documentation

Product Change Management Customer Relationship Mgmt Information Mgmt Editorial Office

Market Research / Analysis Communication Strategy External Communications Brand Management

Enterprise Strategy Enterprise Business Mgmt Quality Management

Shareholders & External Relationsh. Financial Performance Report Enterprise Financial Consolidation

Ordinal Cost and Expense Mgmt Vehicle Development Project Budget and Cost Management

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Procurement




















Tender Process







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Sourcing strategy of IT Functions – Examples Heat Map General Motors

SourceJPA �CMMI ��IT �� http://www.ipa.go.jp/files/000006029.pdf

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Procurement




















Tender Process







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Application Landscape “a list of the live applications” is influenced by many technologies – Examples for a business domain “Sales”

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Source: CedarCone




IT hot spot of Enterprise Architecture

Business'Domain'


Business'Func4on'

Organiza4on'


1:n

1:n

Business'Service'

m:n m:n m:n

m:n

uses follows

Business'Model'

Technology'

belongs to

m:n

Data'

m:n m:n

m:n


Practical compromise needed to reduce complexity

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KPI Categories: •  Compliance •  Innovation •  Capability provision •  Transparency •  Homogeneity •  Redundancy •  Project execution •  Cost •  Disaster tolerance •  Security •  …




2014 New Mercedes

Product >30% (Software)


>70% (Computer-Aided Engineering)

Production >60% (Computer-Aided Manufacturing)

Marketing & Sales >40% (Internet)

Aftersales >30% (Diagnostics)

Administration >60% (HR, Finance, Procurement)

…

Photos: Daimler AG

But coming back to Vehicle vs Enterprise Architecture

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Vehi

cle

Arc

hite

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Ent

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ise

Arc

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Business Model focus in Automotive Industry

The reality is still far away from the theory!




The Enterprise Architecture depends on the Business Model

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Internet is a feature in cars Vehicle as an integral part of the customer’s personalized network

Different Business Models

Photo: Daimler AG

“owning car” business car related business beyond car business production leasing car rental car sharing inter-model mobility chauffeur service




What is the reason for mobility and creating the Automotive Industry?

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Mobility is about getting from A to B

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Options to a set of mobility services

Start

Profile •  Time •  Costs •  Convenient •  Comfort •  …

Use Case •  Business •  Leisure •  Shopping •  …

Platform to Mobility Service Providers




Risks regarding endangering reputation and brand value Google Executive Chairman Eric Schmidt famously (or infamously) said “Google’s policy is to get right up to the creepy line but not to cross it”

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PRODUCT INSIGHTS

CONSUMER DATA INSIGHTS

Traditional brand values: comfort, safety, longevity, reliability, …

Source: BMW – Redefining Premium Brand Identity




Risks regarding endangering reputation and brand value Example: Autonomous Driving

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Patent 8.630.897 Transportation-aware physical advertising conversations

Photo:&Google&

Why do I need to own a car?

Photo:&Daimler&AG&

Why do I need parking?

Why do I need vehicle insurance?

Getting from A to B might be free of charge

Can I change the individualization of the car per ride?

Safety is critical

Driving remains with the car

Engineering challenge

Next generation of Advanced Driver Assistance Systems

Driving as a service




New and emerging technologies will combine to transform industries

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Industries will converge

Ecosystems will emerge

Value chains will fragment Margin

Consumer experience

Marketing and sales

Outbound logistics

Design and operations

Inbound logistics

Consumer experience

Marketing and sales

Outbound logistics

Inbound logistics

Outbound logistics

Operations Specialist

Inbound logistics

Outbound logistics

Inbound logistics

Healthcare

Distribution

Electronics

Retail Outbound logistics

Operations Inbound logistics

Marketing and sales

Operations M

Operations

M Consumer experience

Marketing and sales

Marketing and sales

M

M

Consumer experience

Consumer experience

Source:&IBM&Ins9tute&for&Business&Value&–&Digital&Reinven9on&




The Shift to Services … IBM Mobility Domain Model – High Level Overview

Mul4FChannel'Sales'

Product/Services'Management'&'Marke4ng'

Quality'Management'

General'Support'Func4ons'

Procurement'

Supply'Management'&'Fulfillment'Logis4cs'

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InFVehicle'R&D'

Mobility'R&D'

Produc4on'

Service'Enablement'

Data'Services'Business'Administra4on'

Financial'Services'

ACermarket'

Mobility'Marketplace'




Summary hot spots of Enterprise Architecture

Business'Domain'


Business'Func4on'

Organiza4on'


1:n

1:n

Business'Service'

m:n m:n m:n

m:n

uses follows

Business'Model'

Technology'

belongs to

m:n

Data'

m:n m:n

m:n


Need to be accurate and open for significant changes

Practical compromise needed to reduce complexity

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Thank You!

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Documents

Enterprise Architecture for traditional industries in a ...think-automobility.org/documents/Enterprise Architecture for... · Enterprise Architecture for traditional industries in