IT/IS and Business Units Friends or Foes? Judy Lorek, Robert Bosch Tom Malone, NGK Spark Plugs Jim Schwinn, Schaeffler MIS Council Fall Conference October

IT/IS and Business Units

Friends or Foes?

Judy Lorek, Robert Bosch

Tom Malone, NGK Spark Plugs

Jim Schwinn, Schaeffler

MIS Council Fall ConferenceOctober 15, 2007

Judy LorekDirector of Aftermarket Information SystemsRobert Bosch LLCAutomotive Aftermarket (USA)

• The U.S. Automotive Aftermarket of Robert Bosch LLC is headquartered in Broadview, IL U.S.

• As a supplier to distributors, national retailers, independent specialists, repair shops or do-it-yourself consumers, Bosch automotive aftermarket products include spark plugs, spark plug wire sets, oxygen sensors, ignition parts, oil, air and fuel filters, wiper blades, brake pads and rotors, starters and alternators.

• Information Technology support is provided to over 500 Automotive Aftermarket users, utilizing JD Edwards ERP system, Manugistics Supply Chain solution and Red Prairie Warehouse Management System.

IT Support at Robert Bosch

Support Process has evolved over time …

From a stand-alone Online Request System

To a ‘Ticket’ System and a Portfolio Management System (both online but not integrated)

To an Integrated Business Engagement Model.

IT Business Support at Robert Bosch

Using Collaboration Tools such as…

Agreed upon collaboration model

User-friendly Help Desk to report needs

Portfolio Management tools.

Project Portfolio Management

Definition

Imagine an office complex with 100 different construction teams hired to build 100 rooms, with no blueprint or agreed upon vision.

• Portfolio management is an increasingly recognized method for ensuring that information technology initiatives are linked to business goals and objectives (blueprint / vision). • Portfolio management is designed to take the politics out of decision making.

Instead of opinion, there is process.

IT Project Portfolio Management

• Purpose– Gain control over projects and

deliver meaningful value to the business.

– Improve communication and alignment between IT and business leaders.

– Promote more upstream business process analysis (project definition, process flowcharts, approval and communication prior to the application development phase).

– Enhance customer satisfaction.

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C IC O N T R O L G O A L S

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Portfolio Management

• Deliverables

– Ensures upstream business process analysis,

definition, documentation and approvals– Promotes business leaders to think cross-divisionally

and cross-functionally as a “team” and take responsibility for projects

– Creates a process to evaluate and manage investments– Aligns business unit and IT resources– Provides measurable results (cost, benefit, timing, etc.)– Improves communication between the business units

and IT– Enhances customer satisfaction.

Conclusion

• Every project is a decision to invest the resources (financial, human, material) of the organization in a specific outcome.

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Sample: Project Portfolio Tool

• Current Business Process Map– Attach a copy of the current process flowchart specifying who does

what task, where (if applicable), when the task should be done, how the task should be done according to a referenced document or work instruction (when such detail is necessary).

• Proposed Business Process Map– Attach a copy of the proposed process flowchart specifying who

does what task, where (if applicable), when the task should be done, how the task should be done according to a referenced document or work instruction (when such detail is necessary).

• Documented Requirements / Specifications– Define the details of the request clearly. Examples: Specific columns

for a new report, specific vendors or customers affected by a new process, customer deadlines, account numbers, field mappings, labels, etc. Attach separate documents and reference them in this section, if necessary.

Controls and Measures

• Define how you will monitor the project and evaluate your success. Detail what verification record will be generated to provide objective evidence that the task was accomplished.– Controls1.

2.

3.

4.

5.

– Measures (Records)1.

2.

3.

4.

5.

Lessons Learned

• With or without additional tools, formalize the process

• Review, Analyze, Measure, Report• Close the loop and connect the dots with your

customers!!

Lessons Learned

• Commit to a service level

• Obtain consensus on the process

• Leverage business and technical skills

• Let Business make the decision

• Accept change as ongoing reality

• Business Focus – align IT with Business

• Offer an opportunity for involvement

• Review, Analyze, Measure, Report

• Accentuate process over opinion

• Transparent IT governance

• Eliminate any confusion

Tom MaloneCorporate IT DirectorNGK Spark Plugs (USA)

• NGK-USA at a Glance– Tier 1 manufacturer/supplier of spark plugs and oxygen sensors,

founded in 1966– Support both OE and aftermarket channels– Ten locations in the US

• NGK-USA Information Technology at a Glance– 500+ users to support– Two enterprise systems (JD Edwards & MAS200)– Migration to SAP over next 2-3 years– 14 total associates in NGK-USA IT

NGK Spark Plugs (USA), Inc.

• Significant Issue Faced by NGK-USA IT– Two manufacturing sites US were separate

companies• Separate IT infrastructures, staffs, applications• Different cultures

– Merger of two companies = Consolidation Imperative• Business processes• Infrastructure• Applications

– Comfort with Legacy Environment ≠ Trust with New “Corporate” Solutions


• NGK-USA IT Tasked with Consolidating ERP Environment– Two legacy ERP’s expensive and ineffective support

• Neither capable to fully support the NGK-USA enterprise

• IT staff spread thin – no “depth” of expertise in IT to fully leverage current applications

– Need to support corporate imperative to consolidate business practices

• Overcoming of “I’m from corporate, and I’m here to help!”

• Defining benefits of new ERP to individual stakeholders


• Establishment of Trust with IT– Development of IT Strategy (1st Time Ever)

• Established “transparent” practices in IT• Alignment of business goals/objectives with IT

programs• 4-5 year planning horizon• Regular feedback conferences between IT and

business units, updating of IT Strategy


• Establishment of Trust with IT (continued)– New ERP selection project

• Objectivity – IT used outside consultants to facilitate the project

• Inclusion – Extensive interviewing and benchmarking of business unit stakeholders and processes, project team

• Transparency – Deliverables shared to very wide distribution, project highlighted in associate newsletter

• Democratic – Input on eventual selection shared among project participants – not a “top-down” decision

– Result = Unanimous selection of SAP as new ERP

Lessons Learned• Commit to a service level











Jim SchwinnDirector of Finance and Information SystemsSchaeffler GroupAutomotive Aftermarket (NA)

• North American region covered by three distribution centers located in CA, US, & MX and headquartered in Valley City, Ohio

• Distributing products represented by the following brands: LuK, INA, FAG

• Supporting 150 Aftermarket users in 5 locations

AAM - North America

• As an aftermarket BU, we focus on marketing and supply chain initiatives only.

• IT Systems focus on:– General business processes– Supply chain and warehouse management– Product management

• Goals:– Better, faster, more efficient– Integration regionally and worldwide

Interaction with the Business

• How do you get the real work done?• Improve service?• Show value?• Two simple, critical systems/processes which

help make it happen at Schaeffler:

–RTS (Request Tracking System)

–Top Ten (Project Focus & Approval)

RTS (Request Tracking System)

• What is it? - System to track all "requests" – IT Anything ideas, process changes, projects, failures, errors, bugs– Hardware, Software, Phone, CC, New user, etc.

• Who uses it? – Executives, managers, users, warehouse employees, outside contractors….Everyone.

• Why?– One method for all activities – mini workflow– All information in one place – Who, What, When, Why, How– Critical requests are auto. assigned and are addressed timely– Eliminates "hallway" conversations (miss-communication)– Long-term documentation archive– Commits IT to specific service levels

Top Ten (Project Focus & Approval)

• What is it? – A process for the review and approval of all IT projects/process changes by management

• Scope? – Anything not considered failure, infrastructure• Why? – Allows the leaders of the BU to agree on the change

and the proper use of resources– Top Ten Review Process for:

• General Business, Supply chain, Product Management– Every project must be approved by the appropriate review team or

teams….IT does not make the decision– The business must explain and justify the change

• Flexibility for IT – Up to 10 projects can be active at one time with the details reviewed and published bimonthly

Lessons Learned

• Demonstrate that your IT processes work and are effective based upon agreed service levels

• Eliminate the confusion– What is being done?– Why are we doing it?– Who's doing it by when?

• Offer an opportunity for input and feedback• Let the business (as a whole) decide on the

allocation of IT resources

Lessons Learned• Commit to a service level











How does IT/IS best work with and support business units?

• Commit to a service level











Collaborate

How do you Collaborate?

Thank you!

Customer Engagement ModelManage the

Business

Manage theStrategy

Remedy

Large RequestProject Portfolio

WorkbookApprovals

Analysis/RootCause

Medium RequestUpdate CIT7Project Plan

Add to CIT7Workload

Small RequestCIT7 Completes

RequestAdvise Users/Requestors

Add to CIT NAWorkload

CIT7 ChecksResults

Improvementsneeded?

CIT7 Dept.Improvement List

DC

A P

Close RemedyTicket

Review at AMQuarterly Meeting

General SystemRequests

= Business

= IT

Documents

IT/IS and Business Units Friends or Foes? Judy Lorek, Robert Bosch Tom Malone, NGK Spark Plugs Jim Schwinn, Schaeffler MIS Council Fall Conference October