The most comprehensive Oracle applications & technology content under one roof The most comprehensive Oracle applications & technology content under one roof JDE Enterprise One as the focus of WCB's ICT plan Ian Spencer
Jun 12, 2015
The most comprehensive Oracle applications & technology content under one roof The most comprehensive Oracle applications & technology content under one roof
JDE Enterprise One as the focus of WCB's ICT plan
Ian Spencer
The most comprehensive Oracle applications & technology content under one roof
Warrnambool Cheese & Bu5er (WCB) • Established in 1888 and the oldest dairy company in Australia • Only dairy company listed on Australian stock exchange (listed in 2004)
• Approx turnover $500 million • 2 JV’s owned by the company
• Great Ocean Ingredients • Japan sales trading house
h5p://www.wcbf.com.au
h5p://www.dairyaustralia.com.au/
Victoria produces about 2/3 of Australia’s milk; WCB processes about 1/6 of Victoria’s milk
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WCBF Systems Timeline
1993 2007 2008 2009 2010 2011 2012
JDE World
ICT Strat Plan
Me @ WCB
JDE E1 Live
WCB “Annus Horribilis”
BI – S&OP, Sales, Milk
BI – Bud & F/C
S&D Mgt, EIM, PINS
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Original ICT Strategy
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ICT Strategic Plan – 2007 to 2012 • A number of underlying themes:
• Business alignment – strategic context • “Do wells” to achieve strategic outcomes • Inadequacy of then exiseng systems porfolio • Program Governance (eg Steering Commi5ee, SDLC, methodologies) • ICT Organisaeon (range of skills, leadership) • Progressive Implementaeon
• Twenty programs of work, eg JDE ‘Upgrade’, Enhanced Inventory
Management
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Exiseng systems c 2006/7 Func%o
nal Q
uality
Technical Quality 0
10
5
Quadrant 4
Quadrant 2
Quadrant 1
Quadrant 3
10 5
Retail Sales
Accounts Payable Procurement Accounts Receivable
Financial Repor7ng
JDE
Milk Forecast Yield Forecast
Produc7on Forecast
Product Op7misa7on
Sales Forecast
Financial Forecast
Bulk Sales Cost Accoun7ng
Management Repor7ng JDE
Milk Tracking
Supcon
Laboratory Informa7on Management System
Madcap
Shopkeep
Cheese Block Tracking
SCADA
Mex
Transport Pickups
Trident
Document Management CHRIS21
Redesign & Rewrite
Scrap & Replace
Maintain & Enhance
Quadrant Descrip%on
1. Meets users needs but have technical deficiencies
2. Candidate for replacement, poor func7onal and technical quality
3. Have func7onal deficiencies but technically easy to operate and maintain
4. Meets users needs for func7onal support and technically easy to operate and maintain
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Upgrade to Enterprise One “The JD Edwards EnterpriseOne applica%on suite has provided the founda%on for a range of projects that will transform the way WCB operates now and in the future. It will ensure that we can con%nually streamline manufacturing and distribu%on.”
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WCB Strategic Planning Framework – 2011 onward
Initiatives
Strategic Themes / Objectives
Mission / Goals
Values / Beh Stds
Vision
Alignment of individual goals
Team Mobilisation
Excellence; Working together; Contribution by all; Our reputation; Honesty & Integrity; Innovation
To be Australia’s leading Dairy Company
Organisational strategic objective (financial goal)
Objective statements for each of the key functions
Strategic initiatives schedule, business improvement projects
Business plans (various), performance reviews, salary & bonus system
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Vision, Values & Financial Goals 2011-‐14
Initiatives
Strategic Themes / Objectives
Mission / Goals
Values / Beh Stds
Vision
Alignment of individual goals
Team Mobilisation
Vision To be Australia’s leading Dairy Company
Values Excellence; Working together; Contribueon by all; Our reputaeon; Honesty & Integrity; Innovaeon
Goals -‐ Improved financial performance Target ~2.5% improvement in gross profit margins & ~ 2.5% improvement in EBIT margins F10 to F14.
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Key Strategic Planning Principles
– To get to market sooner we can improvise and accept higher cost – but not for long.
– InnovaGon into higher margin products must generate margins that cover the cost of complexity in manufacturing.
– The best strategies well executed will deliver us the best customers. We should be able to name the customers we want.
– The best strategies begin with the end in mind.
– Therefore, our strategic plans should be modeled to determine whether they deliver us what we want.
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Three Levels of Planning
Mission& Goals
Strategic themes & objectives
Initiatives & projects
1. High level business strategic objecGves: ü Specific, aspiraGonal, give clarity of direceon ü Top line financial measure of performance ü Measurable & easily communicated
2. FuncGonal business plans; 1 x each GM ü Headed by an objeceve statement for the funceon ü Contains the aceons & operaeonal plans that support
business objeceves ü These aceons are supported by the business plans of
reporeng managers – cascading effect
3. Business improvement iniGaGves & strategic projects list ü Projects that link directly into strategy execuGon ü Not operaeonal or conenuous improvement type inieaeves,
these are important but belong in business plans ü Generally significant in size, require cross funcGonal
resources to achieve & are transformaGonal in nature
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Business Plan CFO 2012 – other GMs same format
FuncGonal Business Plan -‐ CFO KPIs
CFO Corporate Inieaeves
CFO KPIs
2012 Aceon Plans
Stability & Predictability 1 2
Incremental Change/Conenuous Improvement 1 2
Transformaeonal Change ‘Projects’ -‐ Flow from ‘Strategic inieaeves’
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Barston Consuleng Review – April 2011 Challenges in Delivering the ICT Strategy Possible ResoluGon Leadership • Execueve view on ICT Strategy fit • Free up SMEs for ICT projects
• Communicaeon, involvement & sponsorship
Roadmap • Develop an agreed ICT “To Be” picture, • Guidelines for Steering Commi5ee use to approve WCB-‐wide ICT projects
• Agree the ICT “To Be” picture • Confirm the technology and standards in “To Be”
IT OrganisaGon Need aceve ICT funceon to support Steering Commi5ee
• Review current roles, capabiliees and accountabiliees & ownership
Current ICT Environment • Too many un-‐integrated “best of breed” systems
• Focus on JDE & integraeon
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BIS Strategy – 2011 onward
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To Be – Focus for future BIS Projects The agreed focus on future BIS projects is:
• Increased use of JDE Enterprise One for Supply Chain
• Enhance and integrate (where appropriate) “best of breed” solueons
• Conenue development of BI (in TM1 and Calumo)
• Invest in Oracle Fusion middleware to integrate as required
• Limit investment in “new” applicaeons (non JDE/Oracle)
• Maintain and develop exiseng “stand alone” applicaeons (e.g. MEX, CHRIS21)
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BIS Strategic Projects & Inieaeves Strategic AcGviGes Stability/
Predictability Incremental Change
TransformaGonal Change (People, Processes & Systems)
Named Items
Higher Margin Products – move up the Value Chain
Enhanced Inventory Management ** -‐ Produceon & Inventory Tracking -‐ LIMS/E1 Integraeon
Sungold Range & Capacity Expansion
Sales & Distribueon Management -‐ Bulk Order Taking (CSS) -‐ Contra Billing -‐ Electronic Invoicing
Milk Intake/Supply Milk Management System, Milk Tracking System & Plant Informaeon System (all intertwined)
** Linking E1, LIMS, 3PLs & BSM
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Enhanced Inventory Management Applicaeons
Oracle Fusion Middleware OSB
JD Edwards Manufacturing Inventory Sales Procurement Quality
LIMS Laboratory Test Results
Paperless Warehousing
WHM Scanning Inventory Sales Quality
BSM Transporta7on Containerisa7on Inventory
MPS/MRP & Scheduling
Manufacturing Batching Lots
Excel & Make Sheet
Planning Scheduling Repor7ng
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Possible BIS Goals for Enhanced Inventory Mgt BIS Funceon Goals Support the Powders Strategy 2011/14 through: • Facilitaeng Fusion Middleware understanding / knowledge • Enabling Fusion Middleware skills development in-‐house • Building & having approved the business case BIS -‐ Technology Goals • Develop Fusion Middleware skills in-‐house • Review E1 & other Applicaeon Security requirements arising from EIMS BIS – People & Process • Develop procedures & implement to integrate Supply Chain apps • Integrate JDE E1 #PL Warehousing & LIMS
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Sungold Strategic Inieaeve – BIS Impacts
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Sales & Distribueon Mgt – Solueon Matrix
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Schemaec of preferred opeon – Sungold/BIS
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Resuleng BIS Goals for Sales & Distribueon Mgt BIS Funceon Goals Support the Sungold Range & Capacity Expansion Strategies 2011/14 through: • Providing Customer Self Service (CSS) knowledge • Developing CSS skills in-‐house by end Apr 2012 • Business case / CER development & approval BIS -‐ Technology Goals • Develop CSS/EDI skills in-‐house • Review E1 & other Applicaeon Security BIS – People & Process • Develop procedures & implement to integrate with JDE E1
-‐ Order taking/confirmaeon processes -‐ Contra processing -‐ Email invoicing Customer Self Service
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BIS Approach to Goals • All of the above needs to be in the context of value • Delivering the value is the reason for doing the project Jed Simms (from Totally Opemized Projects*) noted in a recent “post” • In the eme – cost -‐ scope “iron triangle”, scope is most usually sacrificed • The project then runs to eme & cost but business outcomes suffer • The missing dimension – value – is compromised • This doesn’t make sense, we all do projects to derive value (benefits) We aim to avoid compromise & “go for value” in line with WCB strategy. (* see www.totallyopemizedprojects.com for more)
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Questions……
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Australian Dairy Stats
Table from ‘Australian Dairy Industry In Focus 2010’, Dairy Australia