1 may 2005 it and globalization at plantronics may 2005 tom gill
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1May 2005
IT and Globalization at Plantronics
May 2005
Tom Gill
2May 2005
Agenda
Plantronics overview Plantronics IT Globalization at Plantronics Q&A
3May 2005
Plantronics Overview World leader in communications headsets $560M annual revenue and growing 6000+ employees Headquartered in Santa Cruz Offices in 26 countries
4May 2005
Plantronics Product Evolution
1962 - Introduced first product, a lightweight aviation headset
1964 - Continued with aviation market by providing air traffic control headsets
1969 - Went to the moon ’70s and ‘80s - Focused on call center and office
products ’90s - Expanded product line to include mobile and
computer headsets2000s - Added USB, gaming (Xbox), residential and
bluetooth headsets
5May 2005
Business Growth
It took twelve years to make our one-millionth headset
We now make over 1 Million headsets per month!
6May 2005
Product Development at Plantronics
Design / Engineering Centers Santa Cruz Tijuana Mexico Swindon England Suzhou China
Outsource to partners for special services and fast time to market Increased emphasis on design
Products started in the cockpit and call center cubicles Headsets are now ubiquitous – design matters
Quality is a differentiator Very high levels of customer satisfaction Very low return rates Excellent audio quality
7May 2005
New Markets Present New Business Challenges
Call Center Market Consumer Market
Predictable demand Unpredictable demand / difficult to forecast
Stable and reliable distributor and dealer channel
Challenging demands from retail partners and OEM partners
High margins Lower margins
Long product lifecycles Rapid time to market and short product life
8May 2005
IT Makes it Happen
IT is ubiquitous Virtually all associates use information technology
throughout the day Consider a day without IT!
IT solutions have enabled growth Advanced supply chain solutions Portals / knowledge management Information warehouse / Business Intelligence Wireless solutions Workflow and approval applications Shorten cycle time, increase collaboration, improve
productivity reduce barriers of time and geography
9May 2005
Plantronics IT Organization
Worldwide team of 75 IT teams at six largest sites Other locations and SOHO sites serviced remotely Enterprise applications, WAN and technology standards
managed centrally Local applications and infrastructure managed by remote sites
Payroll, customs, logistics… Local LAN, voice systems, Exchange servers, etc. Local intranets including direct labor kiosks
WW management team meets weekly Communication is key to virtual team success Annual offsites and regular travel also key to effective
collaboration
10May 2005
Information Technology Footprint – Infrastructure
Dell / Microsoft desktop Microsoft Exchange / Outlook messaging Cisco networks including WiFi in all locations WAN technologies include dedicated circuits,
frame relay, MPLS, point to point VPNs and remote access
Avaya voice systems (PBX, voicemail, unified messaging) – migrating to VoIP worldwide
Mobility devices – phones, PDAs, smartphones 120+ Windows servers 40+ Sun Solaris (Unix) servers
11May 2005
Information Technology Footprint – Key Applications
Oracle eBusiness Suite 11.5.8 / 9iR2 Complete suite (finance, manufacturing, purchasing,
HR, logistics, order management) Self service (iProcurement, iExpense, iStore, etc.) Single instance / multi org Customizations include reports, some forms, alerts
Informatica / Business Objects Information Warehouse and Business Intelligence Suite
Saratoga Avenue CRM ATG commerce applications / Interwoven contact
management Microsoft intranet and Sharepoint portals
12May 2005
Road to CIO
BS in Business Info Systems from SDSU TRW Electronics and Space – started as a
programmer analyst Syntelligence – expert systems startup Tandem computers – gained international
business experience Bay Networks – emphasis on CRM and web
technologies Plantronics – started as Director of Technical
Services and promoted to CIO in January 2000
13May 2005
Key IT Management Competencies
Business enterprise knowledge Client partnership Business influence Change management Team leadership Empowering others Accountability Systems thinking
14May 2005
IT Management Challenges Hiring and retaining talented people
Exciting technologies help Culture of learning and innovation is key Management role is to provide direction and
environment to succeed! People challenges
Communication / style Corporate vs. remote sites
Change management Internal to IT End user impact
Outages / downtime Problems will occur It’s all in the recovery
15May 2005
Globalization at Plantronics
The world is indeed flat Started with manufacturing Business process outsourcing IT offshoring Home workers
IT makes it happen Fiber network and Internet break down the barriers of
time and distance Standards enable supply chain integration and the
virtual corporation
Plantronics started in 1972!
16May 2005
First Wave of Globalization - Mexico
Established Plamex manufacturing facility in 1972 as a maquiladora
Moved all manufacturing from Santa Cruz to Mexico during the 80s
Innovative people oriented business culture includes: On site family health care Bank accounts with direct deposit Transportation to and from work Career pathing
17May 2005
Plamex Today
Grown from one building to five Product design center Contact center agents
Technical assistance Inside sales Connected to Santa Cruz voice and CRM systems via
IP network
Winners of the 2004 Mexico Quality Award
18May 2005
Globalization – Europe
Started with sales offices Expanded to product design center with
emphasis on local product variants and regulatory compliance
Currently 25% of worldwide revenue Contact center flattens Europe
Technical assistance Inside sales Customer service / order mgmt All VoIP with clusters by region
19May 2005
Globalization - China
Started with parts sourcing and contract manufacturing
Design center and manufacturing facility under construction planned for March 2006
Temporary factory established in April Temporary design center established this month IT makes it happen
Single instance ERP Voice, video and data over IP LAN and WAN
20May 2005
Manufacturing by Location
Plamex operations in Mexico High quality Highly variable product mix / many product variants Just in time production / made to order
China contract manufacturing and our future Suzhou operation
High volume products Sub assemblies Predictable demand due to longer lead times Products for local markets
21May 2005
Globalization – IT Enablers Standard platforms where appropriate
Consistent user experience Lower support costs Security Interoperability
Single instance ERP Lower TCO Facilitates consolidations and rollups Worldwide planning
Standard processes Change control / change mgmt Governance
Virtual teams / collaboration a must Sharepoint portal Video conferencing Web meetings IM and mobility
22May 2005
Lessons Learned
Globalization Cultural awareness / training is a necessity Communication
Preparation – key skills Written and verbal communications Collaboration and virtual teamwork
Job search advice First opportunity may not be ideal but it’s a start Consider consulting Be patient!