deployment of smarter commerce concepts in b2b electronics environments

35
1 BI-329 – Smarter Commerce in B2B Electronics: Transforming Sales and Service to Increase Revenue and Customer Loyalty Thorsten Schröer, IBM Werner Bueker, SMA Solar

Upload: thorsten-schroeer

Post on 22-Nov-2014

302 views

Category:

Business


3 download

DESCRIPTION

This presentation wa held at 2012's Smarter Commerce Summit from IBM in Madrid, Spain. It was a joint effort with IBM clients's SMA Solar Technology AG providing an example of the topic raised in the first half of the presentation.

TRANSCRIPT

Page 1: Deployment of smarter commerce concepts in B2B electronics environments

1

BI-329 – Smarter Commerce in B2B Electronics:

Transforming Sales and Service to Increase Revenue and Customer Loyalty

Thorsten Schröer, IBM

Werner Bueker, SMA Solar

Page 2: Deployment of smarter commerce concepts in B2B electronics environments

2

Agenda

Industry Introduction1

Smarter Commerce in a BtB Electronics world2

Smarter Commerce @ SMA Solar Technology AG3

Q & A4

Page 3: Deployment of smarter commerce concepts in B2B electronics environments

3

The Electronics Industry varies in the adoption

speed and domains of Smarter Commerce

The planet really gets smarter when everything else

starts going to smarter business models

Consumer

Electronics

Semicon-

ductor

Network

Equipment

Medical

Devices

Power &

Automation Equipment

Office

Equipment

Page 4: Deployment of smarter commerce concepts in B2B electronics environments

4

Power & Automation Equipment IndustryThe Industry at a Glance*

• Power and Automation Market is a very fragmented business with 5%

growth till 2015 with major shift Emerging Market >2x vs. Mature Markets

• Key market drivers include environmental awareness, renewable,

energy/process efficiency, services, emerging economies and power

• Market is based on slower sales cycles, longer product life cycles, BtB

selling process, high systems and product complexity, comfortable, safe,

and sustainable

• The competitive environment is characterized by a product centric approach

where leading technology and price are today the key differentiators

Mixing product, software and services and network connectivity is the next big wave for rapid re-alignment of market share and

profitability within the Power & Automation Equipment Industry.

Page 5: Deployment of smarter commerce concepts in B2B electronics environments

From Product to

Services

Software

Analytics

Integration

Marketing

� Program & project management� End-to-end outsourcing� Usage-based pricing

� Control & management systems� Smart device capability

� Capturing data from sensors� Creating insight & action� New value creation

� Orchestrate an ecosystem� Network-based competition

� Changing behavior to optimize the usage of infrastructure

� Capturing end user demand

CE market sprinted ahead in transforming products into

services, BtB Electronics will follow fast. Smarter

Commerce can help to support this transformation.

Page 6: Deployment of smarter commerce concepts in B2B electronics environments

6

Agenda

Industry Introduction1

Smarter Commerce in a BtB Electronics world2

Smarter Commerce @ SMA Solar Technology AG3

Q & A4

Page 7: Deployment of smarter commerce concepts in B2B electronics environments

7

Smarter Commerce solutions addresses key

challenges of Power & Automation Equipment

manufacturers

MarketBuy

Service Sell

Customer

• Engineering Outsourcing

• Revenue and margin generation via service transformation

• Supply chain planning (S&OP)

• Supply Chain network and inventory optimization

• Supply Chain Visibility

• B2B integration

• Procurement Transformation

• Customer Awareness & Analytics

• Digital Marketing Optimization

• Cross-division selling

• Order Management & Fulfillment

• BtB shop solutions

• Payments & Settlements

Enterprise Sellers believe change is coming for B2B…but not yet, and not quickly…..but it will come faster and bigger then they think.

Page 8: Deployment of smarter commerce concepts in B2B electronics environments

8

A: Deployment Example Supply Chain (1/2)

Operational Complexity addressed via Smarter

Inventory and Service Management

The Situation

• One Global parts DC with multiple regional DC’s

• 40.000 SKU and total material movement for 9000 items per year

• 14 000 items in active price list with Inventory value 17 m€

• Excess safety stock inventories

Unpredictable customer service levels is key compelling reason to act.

Page 9: Deployment of smarter commerce concepts in B2B electronics environments

9

A: Deployment Example Supply Chain (2/2)

Operational Complexity addressed via Smarter

Inventory Management

Current

State

The Outcome

• From ~85% to ~94% service level with constant inventory

• Inventory reduction by ~4M€with constant service level of ~85%.

• ROI < 1 year

• Distribution network optimization provides further opportunities

1

2

3

Page 10: Deployment of smarter commerce concepts in B2B electronics environments

10

B: Deployment Example Marketing (1/2)

Automated nurturing works to progress

customers through their buying journey

+ 100 points = Automated eNurturing

Qualified Qualified Lead passed to Sales

Registers and downloads paper

Registers and downloads paper

10 points

Downloads ROI tool

15 points

Registers/attends event

50 points

Receives email for BAO ROI tool

5 pointsReceives email invite to BAO event

LDR calls to qualify

10 points

25 points

Prospect searches for ROI on solutions

5 points

0-10 POINTS 50-100 POINTS +100 POINTS

Awareness Interest Preference Action

Page 11: Deployment of smarter commerce concepts in B2B electronics environments

11

SWG Traditional Multi-touch Program

(3Q10 - Feb ‘11)

SWG Automated Response Nurturing

(3Q10 - Feb ‘11)

Emails Sent

Open

Click-through

Responses

2.38M emails/372 tactics*

7.37%

0.73%

0.03%

61K emails/207 tactics**

15.59%

3.63%

3.30%

2X

5X

100X

B: Deployment Example Marketing (2/2)Automated Nurture Accelerates Results

Page 12: Deployment of smarter commerce concepts in B2B electronics environments

12

Agenda

Industry Introduction1

Smarter Commerce in a BtB Electronics world2

Smarter Commerce @ SMA Solar Technology AG3

Q & A4

Page 13: Deployment of smarter commerce concepts in B2B electronics environments

22.05.2012

SMA Solar Technology AG – Energy that Changes

Page 14: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG

Disclaimer

14

This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe

for, underwrite or otherwise acquire, any securities of SMA Solar Technology AG (the “Company”) or any present or future

subsidiary of the Company (together with the Company, the “SMA Group”) nor should it or any part of it form the basis of,

or be relied upon in connection with, any contract to purchase or subscribe for any securities in the Company or any

member of the SMA Group or commitment whatsoever.

All information contained herein has been carefully prepared. Nevertheless, we do not guarantee its accuracy or

completeness and nothing herein shall be construed to be a representation of such guarantee.

The information contained in this presentation is subject to amendment, revision and updating. Certain statements

contained in this presentation may be statements of future expectations and other forward-looking statements that are

based on the management’s current views and assumptions and involve known and unknown risks and uncertainties.

Actual results, performance or events may differ materially from those in such statements as a result of, among others,

factors, changing business or other market conditions and the prospects for growth anticipated by the management of the

Company. These and other factors could adversely affect the outcome and financial effects of the plans and events

described herein. The Company does not undertake any obligation to update or revise any forward-looking statements,

whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-

looking statements which speak only as of the date of this presentation.

This presentation is for information purposes only and may not be further distributed or passed on to any party which is

not the addressee of this presentation. No part of this presentation must be copied, reproduced or cited by the

addressees hereof other than for the purpose for which it has been provided to the addressee.

This document is not an offer of securities for sale in the United States of America. Securities may not beoffered or sold in the United States of America absent registration or an exemption from registration under theU.S. Securities Act of 1933 as amended.

Page 15: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG

Solar power continues to become more cost-effective

Sources: Federal Environment Ministry (pilot study 2010), German Solar Industry Association

(PV roadmap)15

Electricity price in euro cents per kilowatt hour

(Germany) > In Germany, in the past 10

years alone, the costs of

generating solar power have

dropped by over 60%.

> Solar power is already more

cost-efficient than conventional

household electricity.

> A long-term, affordable energy

supply requires further

subsidies over the short-term

in order to provide incentives

for additional investments in

system and storage

technology.

� The costs of generating solar power in Germany are already below the household electricity price.

1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary

Page 16: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG

SMA is the global market

and technology leader for

solar inverters:

> Comprehensive product

range

> Global presence

> Flexible production

> Service excellence

> Innovative strength

> Special corporate culture

Company story

16

1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary

Page 17: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG

The inverter is technologically the most important component in intelligent energy management systems

17

Sunny Boy converts direct current into alternating current and provides reactive power to stabilize the grid

Sunny Home Manager controls consumers and Sunny Backup system

Sunny Backup system provides for temporary storage and offers a grid-quality power supply with protection against outages

Bluetooth® radio-controlled socket with measuring function provides for the activation of appliances via the Sunny Home Manager

Bi-directional battery charger

SMA Sunny Portal for energy forecast, remote monitoring and home energy management

.

� With SMA products, solar power can be consumed directly in the place where it is produced.

6 1

23

2

34

5

5

6

4

1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary

1

Page 18: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG

SMA has a defined roadmap to reduce the specific costs of inverters

18

> Analysis of those components

that represent 80% of the

material costs

> Change of assembly and testing

processes

> Increase the speed of switching

and thus reduce the size of

windings

> Highly integrated

microelectronics

> Reduction of housing size and

packages

96%

99%

14%

27%30%

48%

93%

� We strive to reduce by half the specific costs of a solar inverter by 2015.

Cost reduction and efficiency increase Research & development focus

1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary

Page 19: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG 19

SMA is represented in 19 countries all over the globe

� In 2011, we achieved over 50% in sales abroad.

CanadaUSA

Chile

GermanyBelgiumCzech RepublicFranceGreeceItalyPolandPortugalSpainUnited Kingdom

AustraliaChinaIndiaJapanSouth KoreaThailandUnited Arab Emirates

South Africa

1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary

Page 20: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG

Professional sourcing

20

SMA only produces to order

> Weekly forecast meetings

> Global sourcing

> Stock of critical components

� We doubled our annual production capacity to 11.5 GW within three

month and we follow a very fluctuating market.

Flexible production

Inverter output sold (in MW)

+40% −61% +109%

> Low capital intensity

> Outsourcing

> Temporary

employees

1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary

Page 21: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG

The customer clocks the SMA logistics chainThe customer clocks the SMA logistics chain

� Consumption control

where possible, demand

control where necessary

� Supplier Kanban

� Flexible suppliers 1:4

� Electronic supplier

integration

� VMI, C-parts

management

� Consumption control

where possible, demand

control where necessary

� Supplier Kanban

� Flexible suppliers 1:4

� Electronic supplier

integration

� VMI, C-parts

management

� Make to order

� Controlled range and

optimized inventories

� Kanban

� Delivery without storage

� Targeted material flows

� Transport and

production-optimized

packaging

� Make to order

� Controlled range and

optimized inventories

� Kanban

� Delivery without storage

� Targeted material flows

� Transport and

production-optimized

packaging

� Automated order

entry

� Sensible automation

� Forecast with optimal

utilization of customer

knowledge

� Consolidation of

locations

� Freight bundling

� Automated order

entry

� Sensible automation

� Forecast with optimal

utilization of customer

knowledge

� Consolidation of

locations

� Freight bundling

� Coupling of planning for orders, production and material requirements from

customer to supplier through integrated IT systems

� Lean logistics (e.g., minimum handling, short distances, flow principle,

synchronization)

� Coupling of planning for orders, production and material requirements from

customer to supplier through integrated IT systems

� Lean logistics (e.g., minimum handling, short distances, flow principle,

synchronization)

Components of the SMA logistics strategy

Suppliers Production Customers

1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary

21

Page 22: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG

Order and Product Workflow

22EPC = Engineering-Procurement-Production, SPC = Sunny Pro Club

Final User

SMA production

EDI

Order Manageme

nt

OrderWholesalers/EPCSAP

ERP /CRM

OOC - Websphere Commerce

fax / phone

Sunny Pro Club - Websphere

Commerce

Installer

1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary

Page 23: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG

Target Markets

23Source: SMA Order Processing und SPC ;

MPS = Medium Power Solutions, OGS = Off-Grid Solutions, SPC = Sunny

Pro Club

AsiaAmerica

Europe

Australia

America

> Wholesalers/EPC MPS/OGS

> Installer (SPC)

Europe

> Wholesalers/EPC MPS/OGS

> Installer (SPC)

Asia

> Wholesalers/EPC MPS/OGS

Australia

> Wholesalers/EPC MPS/OGS

Sunny Pro Club Members

(Installer)

Wholesaler/EP

C

Africa

Africa

> Wholesalers/EPC MPS/OGS

> Installer (SPC)

1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary

Page 24: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG

Milestones

24

StartMo 06.12.10

EndDi 11.12.12

January April July January May July October

Planning finishedMi 16.02.11

OOC-I IntersolarMi 08.06.11

OOC-I (R1.1)Do 14.07.11

OOC-I (R1.2)Fr 07.10.11

OOC (R2.0 Beta)Di 01.05.12

OOC (R2.0) IntersolarMi 12.06.12

OOC (R2.1)Mo 23.07.12

OOC (R3.0) MPS USADi 27.11.12

Today

> November 2010: Project idea: a call from a board member

> December 2010: Pre-Project Start

> February 2011: Pre-Project Decision for IBM WebSphere Commerce

> February 2011: Project Start with Scrum

> June 2011: Presentation Online Order Center at Intersolar 2011 as a Information

portal

> July 2011: Go Live for registered Customer

> October 2011: New Features and Languages

> May 2012: R2 beta Shop for SMA-Subsidiaries (incl. orders from sold to)

> June 2012: R2 Shop for Wholesalers MPS, OGS, Subsidiaries RoW (without

USA)

> From July 2012: Start Subproject for USA, enhance functionality (document

management, payment)

MPS = Medium Power Solutions, OGS = Off-Grid Solutions, SPC =

Sunny Pro Club

1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary

Page 25: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG

Project Start

Classic Project Approach

25

Database LayerDatabase Layer

Application LayerApplication Layer

Presentation LayerPresentation Layer

Pro

ject T

ime

L

ine

Pro

ject T

ime

L

ine

SMA internal Customer review

1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary

Page 26: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG

SCRUM – agile project realization

26

1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary

Page 27: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG

Scrum Project Approach

27

Project Start

DBDB

Appl.Appl.

Pres.Pres.

DBDB

Appl.Appl.

Pres.Pres.

DBDB

Appl.Appl.

Pres.Pres.

DBDB

Appl.Appl.

Pres.Pres.

DBDB

Appl.Appl.

Pres.Pres.

DBDB

Appl.Appl.

Pres.Pres.

DBDB

Appl.Appl.

Pres.Pres.

1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary

Page 28: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG

Summary

28

S T R E N G T H S

> SMA : Where you have an B2B and B2C business

> SMA : Process automation

> Customer : Better visibility of order history, tracking, ….

> Scrum : When you have to be flexible during the project

> Scrum : Better teamspirit – higly motivated team

W E A K N E S S E S

> Where Websphere Commerce ist not the leading system

> SMA : Well supported customer

> SMA : Element of the logistic strategy

> Customer : Processintegration

> Scrum : When integrate and trust the SCRUM-Team

> Scrum : Better stakeholder feedback / interaction

> SMA : Integrate the project into an e-business strategy

> SMA : Integrate the Order Processing and Logistic Team

> SMA : Complex technical enviroment

> Customer : Security issues (2 Factor)

> Scrum: Missing understanding of agility in adjected groups

O P P O R T U N I T I E S T H R E A T S

1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary

Page 29: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG 29

Thank you for your interest!

Page 30: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG 30

Page 31: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG

Project outlook according to Gartner Hype Cycle

31

1. Renewable Energies | 2. Company Story | 3. Technology | 4. Markets | 5. Logistics strategy | 6. E-commerce project | 7. Summary

Page 32: Deployment of smarter commerce concepts in B2B electronics environments

SMA Solar Technology AG

System Context

32

Page 33: Deployment of smarter commerce concepts in B2B electronics environments

33

Agenda

Industry Introduction1

Smarter Commerce in a BtB Electronics worldSmarter Commerce in a BtB Electronics world2

Smarter Commerce @ SMA Solar Technology AG3

Q & A4

Page 34: Deployment of smarter commerce concepts in B2B electronics environments

Q&A

34©

2012

Page 35: Deployment of smarter commerce concepts in B2B electronics environments

Join us in the Demo Zone at 18:30 on Tuesday to meet our

industry GM and other electronics execs

Ask Thorsten after the session if you would like to see a

demonstration of Smarter Commerce in action for

Electronics

Find out more…