Overview on i2 Five.Two SCM Solution Suite Hyun-Woong Jin Global Customer Solution Management i2 Technologies Hyun-Woong Jin Global Customer Solution Management.

Overview on i2 Five.Two SCM Solution Suite

Overview on i2 Five.Two SCM Solution Suite

Hyun-Woong Jin

Global Customer Solution Managementi2 Technologies

Hyun-Woong Jin

Global Customer Solution Managementi2 Technologies

©2002 i2 Technologies, Inc. CONFIDENTIAL

AgendaAgenda

Introduction on i2

Dynamic Value Chain Management

SCM Solution Suite

Implementation Methodology

Case Study

Introduction on i2


SCM Solution Suite


Case Study


i2 Missioni2 Mission

$75 billion of value for the customers by 2005 Based on Value creation The only company that assesses and monitors the values for the

customers $29.9 billion of value as of 2001

$75 billion of value for the customers by 2005 Based on Value creation The only company that assesses and monitors the values for the

customers $29.9 billion of value as of 2001


i2 is the Undisputed Market Leader in SCMi2 is the Undisputed Market Leader in SCM

““Once again, Once again, i2 Technologies is the i2 Technologies is the

onlyonly vendor in the vendor in the Leaders Quadrant…. “Leaders Quadrant…. “

““Once again, Once again, i2 Technologies is the i2 Technologies is the

onlyonly vendor in the vendor in the Leaders Quadrant…. “Leaders Quadrant…. “

““i2 maintains its position by i2 maintains its position by exhibiting exhibiting unrivaled visionunrivaled vision and and delivering deep delivering deep planning solutionsplanning solutions tailored tailored to to vertical industry vertical industry requirementsrequirements””

““i2 maintains its position by i2 maintains its position by exhibiting exhibiting unrivaled visionunrivaled vision and and delivering deep delivering deep planning solutionsplanning solutions tailored tailored to to vertical industry vertical industry requirementsrequirements””

Gartner Group Research 2001


Industry Leaders are i2 Customers : Over 80% of Fortune Top 1000 Companies are i2 Customers Industry Leaders are i2 Customers : Over 80% of Fortune Top 1000 Companies are i2 Customers

Semiconductor

15 out of top 1615 out of top 16

Intel Samsung Elec.Texas InstrumentsMotorola ToshibaPhilipsMicronHynixAdvanced Micro- DevicesAmkorFujitsu IBMNational SemiNEC On SemiSTM

Automotive


GMFordDaimler- ChryslerToyotaVolkswagenRenaultMitsubuishiFiatHondaBMWHyundai Motors

Data Networking


Cisco Nortel 3COMNokiaLucent

Computer


Dell IBM - PSGHP Apple Compaq NECAcer Gateway MicronToshiba

Metal


Nippon SteelPOSCOBritish SteelUS SteelLTVTimken Steel

Chemical

6 out of best 106 out of best 10

du Pont Dow ChemicalMonsantoOxychemUnion CarbideSherwin-WilliamsGE plasticEastman Rohm & HaasPolimeri

Yellow : i2 Customer


i2 Koreai2 Korea

Started on Feb. 1997 Organization : 50 Employees – Pre-Sales / Sales / Localization / Consulting / GCSM Korean Customers :

Started on Feb. 1997 Organization : 50 Employees – Pre-Sales / Sales / Localization / Consulting / GCSM Korean Customers :

Area Year Company Solutions

SCM

1997 SEC SemiConductor SCP, DP, DF, FP, RL

1998

Anam Semi. MANDO SKC LG Elec. PC Div.

FP FP, RL FP FP, RL

1999 SEC Display Div/ SEC AMLCD POSCO

SCP, DP, DF, FP, ADW, RL SCP, DP, DF, FP, ADW, RL SCP, DP, DF, FP, ADW, RL, PO, TO, TM, PP

2000

SEC Home Appliance Div. LG Elec. Display Div. LG I&C HMC

SCP, DP, DF, FP, ADW, RL SCP, DP, DF, FP, ADW, RL SCP, FP, ADW, RL SCP, FP, Sequencer

2001

Hankook Tire Hynix Dongbu Steel LG Elec. DigitalAppliance

FP DF, SCP, FP, ADW, RL FP, RL FP, RL

eBiz 2000 / 2001 / 2002

eNtoB Autoever.com LG Elec. SEC

Private Marketplace : CRM Private Marketplace : SRM Private Marketplace : SRM Private Marketplace : SRM


AgendaAgenda

Introduction on i2


SCM Solution Suite


Case Study

Introduction on i2


SCM Solution Suite


Case Study


Introducing Dynamic Value Chain Management (DVCM)

It is business philosophy

Like “Total Quality Management” was back in 80’s

The main goal is to allow business partners to better collaborate with each other to eliminate the inefficiencies not only within the companies but also between their boundaries to achieve mutual benefits

It embodies workflows, methodology and enabling technology (software) to help value chains better compete in the marketplace

In the end, it is value chains that compete against each other in the marketplace.


Velocity the Key WeaponAgainst VariabilityVelocity the Key WeaponAgainst Variability

How well you fight variability depends on the speed and quality of the following cycle

How well you fight variability depends on the speed and quality of the following cycle

MonitorMonitor

DecideDecideActAct

VelocityVelocity

Speed and quality depend on your internal

capability and the cooperation of your customers

and suppliers


DVCM BasicsDVCM Basics

DVCM monitoring characteristics The ability differentiate important from unimportant

Track variability within your company and outside your company

Focus on tracking the appropriate variables.

Forecast and Predictive monitoring.

DVCM Decision Making Characteristics Integrated decision support at the strategic, tactical and execution level

Decision making response at the speed of business

Constraint driven, multidirectional planning/scheduling

Iterative multi participant planning, supporting what-if scenarios

Event Based Planning to enable realistic commitment

DVCM Execution Characteristics Enable multi company transaction/state management

Enable embedded decision-making within an execution workflow

Enable alerts to facilitate monitoring of execution to close the DVCM cycle

DVCM monitoring characteristics The ability differentiate important from unimportant

Track variability within your company and outside your company

Focus on tracking the appropriate variables.

Forecast and Predictive monitoring.

DVCM Decision Making Characteristics Integrated decision support at the strategic, tactical and execution level

Decision making response at the speed of business

Constraint driven, multidirectional planning/scheduling

Iterative multi participant planning, supporting what-if scenarios

Event Based Planning to enable realistic commitment

DVCM Execution Characteristics Enable multi company transaction/state management

Enable embedded decision-making within an execution workflow

Enable alerts to facilitate monitoring of execution to close the DVCM cycle


Value ChainValue ChainConfigurationConfiguration

Value ChainValue ChainPlanningPlanning

Intelligent Intelligent Value ChainValue ChainExecutionExecution

Dynamic Value Chain Management FunnelDynamic Value Chain Management Funnel


ERP vs DVCMERP vs DVCM

ERP

Single division only

No multi Company processing

Very slow processing

Can not scale

Not open

Antiquated processes

ERP

Single division only

No multi Company processing

Very slow processing

Can not scale

Not open

Antiquated processes

DVCM

Total Company

Total Value chain

Realtime processing

Highly scalable

Service architecture

100% pull system

DVCM

Total Company

Total Value chain

Realtime processing

Highly scalable

Service architecture

100% pull system


Dynamic Value Chain Management:The SolutionDynamic Value Chain Management:The Solution

Metrics

Roles-basedVisibilityRoles-basedVisibility

Content StandardsNetwork and

Network Services

Integrated PlanningTransaction Management

and Execution


Solutionsuites

Business processworkflows

Solutions

DVCMDVCM

i2i2 SCM SCM i2 CRMi2 CRMi2 SRMi2 SRM

Different ways to go to market with i2 Five.Two solutionsDifferent ways to go to market with i2 Five.Two solutions

i2 i2 CollaborativeCollaborative

SupplySupplyManagementManagement

i2 Service i2 Service ManagementManagement

i2 i2 TransportationTransportation

,,Distribution &Distribution &

LogisticsLogistics

i2 i2 CollaborativeCollaborative

DemandDemandManagementManagement

i2 Factoryi2 FactoryPlanning &Planning &SchedulingScheduling

Factory Planning Scheduling

Allocation Planning Master Planning Supply Collab. Profit Opt.

Forecast Collab. Promotions Collab. Merchanidise Planning Forecasting Category Price Opt. Markdown Opt.Products:Products:

Supply CollaborationSupply Collaboration Supply Chain PlannerSupply Chain PlannerMerchandise AllocatorMerchandise Allocator Replenishment PlannerReplenishment PlannerDemand FulfillmentDemand Fulfillment Inventory Visibility and ExecutionInventory Visibility and ExecutionScenario AnalyzerScenario Analyzer

Products:Products:Supply CollaborationSupply Collaboration Supply Chain PlannerSupply Chain PlannerMerchandise AllocatorMerchandise Allocator Replenishment PlannerReplenishment PlannerDemand FulfillmentDemand Fulfillment Inventory Visibility and ExecutionInventory Visibility and ExecutionScenario AnalyzerScenario Analyzer


AgendaAgenda

Introduction on i2


SCM Solution Suite


Case Study

Introduction on i2


SCM Solution Suite


Case Study


Some Trends in Supply Chain Management

Push environment Power with Manufacturers

Enterprise-centric planning Fixed time period planning Made-to-stock supply chains

Buffer inventory to safeguard against demand variability

Inventory managed within enterprise or pushed to suppliers

Competing companies

Pull environment Power with Consumers

Collaborative Planning Event driven planning Hybrid supply chains

Made-to-stock, Made-to-order, Configure-to-order

True understanding of demand shaping factors such as pricing, promotions, and product lifecycle

Collaborative Inventory Management over value chain

VMI, Channel inventories

Competing supply chains

Yesterday’s Critical Success FactorsYesterday’s Critical Success Factors Today’s Critical Success FactorsToday’s Critical Success Factors


ERP vs SCMERP vs SCM

Enterprise Resource Planning

Advanced Planning System

Transaction processing Transaction processing Planning and optimization Planning and optimization

Generating historical reports Generating historical reports Optimal execution with velocity Optimal execution with velocity

Answers “What did we do?” Answers “What did we do?” Answers “What should we do?” Answers “What should we do?”

Designed for internal company use Designed for internal company use Enables multi-enterprise eCommerce Enables multi-enterprise eCommerce

- ERP is a tool providing Backward Visibility by automating Account based Transaction.- APS is a tool providing Forward Visibility by optimizing the utilization of the resources in Supply Chain to maximize the customer satisfaction.


SCM Enabler: APSSCM Enabler: APS

APS(Advanced Planning System) is used to find the “optimal” solutions given competing constraints...

APS(Advanced Planning System) is used to find the “optimal” solutions given competing constraints...

Return on assets

Profitability

Customer service Labor productivity

Overtime

Premium Freight

Sales incentives

Rebates

Production volume

Production mix

Fixed assets

Capacities

Inventories

Lead times

Labor

Government requirements

Supplier capabilities

Process variability


APS is Based on Some Simple Concepts...APS is Based on Some Simple Concepts...

Synchronous manufacturing and the theory of constraints simultaneous consideration of constraints (material, capacity, demand, labor,

setup, etc.) coordinated material release and synchronized schedules at each point in the

process Advanced warning of problems Extensive what-if analysis for dealing with process disruptions (i.e.

downtime, absenteeism, late material deliveries, demand mix and volume volatility)

Interactive problem solving and optimization Marrying the knowledge of the human planner with the speed of the system

Automatic problem solving and optimization leverage existing legacy systems Speed Sequential Planning → Concurrent Planning

Synchronous manufacturing and the theory of constraints simultaneous consideration of constraints (material, capacity, demand, labor,

setup, etc.) coordinated material release and synchronized schedules at each point in the

process Advanced warning of problems Extensive what-if analysis for dealing with process disruptions (i.e.

downtime, absenteeism, late material deliveries, demand mix and volume volatility)

Interactive problem solving and optimization Marrying the knowledge of the human planner with the speed of the system

Automatic problem solving and optimization leverage existing legacy systems Speed Sequential Planning → Concurrent Planning


What is APS (Advanced Planning System)?What is APS (Advanced Planning System)?

APS involves the effective anticipation market demand, the optimal positioning of enterprise resources to meet demand, and the efficient fulfillment of demand as it is realized.

Demand

Fulfillment

Provide fast, accurate, and reliable delivery commitments to customer orders, and manages these commitments in a profitable way.

Supply

Planning

Ensure that the enterprise is prepared to meet the forecasted demand by generating a constrained, optimal supply plan

Demand

Planning

Develop an accurate, reliable view of market demand by identifying market trends and predicting changes in customer preferences.

Visibility

Value

Velocity


AllocationPlanning

ForecastNetting

New Orders, Promise Information

Demand Planning

Supply Planning

Demand Fulfillment

Latest Available To Promise

DemandForecasting

OperationalPlanning

OrderPlanning

Forecast Supply Allocation

NettedForecast

Supply Plan/Allocations

Supply Plan

Frozen Plan

SCPFPFP

SCPFPFP

DF

DP

DFOrder

Promising

OrderCreation

DF

Forecast and Manage the accurate and reliable market demandMake an optimized

Supply plan against the given demand (Product,Material,Capa, Logistics..)

Production and material replenishment plan per each line/facility

Allocation and Order Promising based on customer classification

SCM Solution FootprintSCM Solution Footprint


Benefit

Improved forecasting accuracy based on consensus.

Reduction of the inventory

Objective Develop an accurate, reliable view of market demand based on the

understanding how products are organized and how they are sold

Characteristics Providing the global visibility.

Multi-Dimension view

Multi-Hierarchy view

Collaboration to make the consensus. Statistical Estimation or Simulation

Pick Best

Tracking Forecast adjustment

Demand PlanningDemand Planning


Benefit Improved Profitability Improved Facility Efficiency Reduced WIP

Objective Generate an optimal supply plan (Global Capacity Plan, Product Mix,

Material Plan, MPS, Logistics Plan) that helps the enterprise to position its resources to meet the forecasted demand generated by demand planning process

Characteristics Planning Validity and Optimality

including production, distribution, transportation, procurement.

Planning Velocity memory resident architecture to

execute the planning calculation iterative What-if simulation considering diverse objective (facility

utilization, inventory, order promising, etc.)

Master Planning


Demand Fulfillment

Benefit

Improved Order Promising Capability

Improved Customer Service

Objective Provide fast, accurate, and reliable delivery date response to customer orders,

and to manage this activity in a profitable way.

Characteristics Dynamic Order Fulfillment

promise on a dynamic, real-time supply plan

Various Model for Customer/Product Allocation

customer/product based allocation to manage the order in a profitable way

Forecast Netting prioritizing demands for the optimal

allocation


Production Planning / Scheduling

Benefit Improved Facility Efficiency Prompt response on Changed

Order Reduced Cycle time Reduced WIP

Objective Provide PCT for each order and the detailed schedule for each facilities by

considering all the constraints on facilities, tools, materials.

Characteristics Generating a plan considering

multiple constraints. Facility Capacity, Tool, Order Priority,

Alternate Material, Batch, etc. Scheduling Issuing Work Order

Daily, Shift, Facility Considering Setup time

Sequence dependent setup time What-if Simulation


Average Quantified Benefits Range of SCM (Industry General)

Reduce inventory (raw, WIP, FG) 10% to 25%

Reduce planning cycle times 70% to 95%

Reduce order lead times 10% to 40%

Reduce production lead times 10% to 50%

revenues expenses

assets

ROA

Increase customerservice 5% to 15%

Increase throughput 2% to 5%

Reduce operating expenses10% to 50%

Reduce logistics spend 5 – 20%


AgendaAgenda

Introduction on i2


SCM Solution Suite


Case Study

Introduction on i2


SCM Solution Suite


Case Study


New innovation methodology

Tinkering Approach

Transforming Approach

To-BeProcessDesign

VisioningSolutionPackageSelection

ProjectImplementation

Process Consulting Firm’s Involvement

Solution Provider’s Involvement

Process Consulting Firm’s Involvement

Solution/Concept Provider’s Involvement

Visioning

To-BeProcessDesign

SolutionPackageSelection

ProjectImplementation


Establish implementation strategy through Value Assessment (VA) or Strategic Opportunity Assessment (SOA)

Presents As-Is analysis and implementation road map Presents implementation benefit analysis (by specific value)

Phase implementation strategy by Business Release Methodology Break down implementation project into manageable phases which are called Business Release (BR): 3~6

months Each BR defines clear Business Target (ex: inventory reduction) Rapid implementation strategy which focuses on realization of specific business value-return

Use of Template Provides industry specific SCM solution template Best Practice, Test Plan, Data, and Documents Reduces implementation period

Establish implementation strategy through Value Assessment (VA) or Strategic Opportunity Assessment (SOA)

Presents As-Is analysis and implementation road map Presents implementation benefit analysis (by specific value)

Phase implementation strategy by Business Release Methodology Break down implementation project into manageable phases which are called Business Release (BR): 3~6

months Each BR defines clear Business Target (ex: inventory reduction) Rapid implementation strategy which focuses on realization of specific business value-return

Use of Template Provides industry specific SCM solution template Best Practice, Test Plan, Data, and Documents Reduces implementation period

i2 Implementation Methodology:TMPM (Trade Matrix Project Methodology)i2 Implementation Methodology:TMPM (Trade Matrix Project Methodology)

VA /VA /SOASOA MobilizeMobilize DesignDesign DevelopDevelop AcceptAccept Go LiveGo Live SIASIA

Business Release ActivitiesBusiness Release Activities

Less than 6 MonthsLess than 6 Months


i2’s Approach to Integrationi2’s Approach to Integration

Through its 9000+ customer implementations, i2 has built a good understanding of various aspects associated with integration.

i2 has come up with a framework that integrates not only i2 internal systems such as SCM, CRM and SRM but also external systems such as ERP and Legacy systems.

Integration needs to be flexible and should allow

Specification of the workflow steps to follow

Configuration at each stage in the workflow based on specific business needs

Integration needs to be extensible

Objective is not only to deliver fully integrated solutions of i2 products covering SCM, CRM and SRM, but also to provide a solution to integrate seamlessly with other packaged applications and legacy infrastructure

The goal is to adopt an integration approach and architecture for integrating diverse systems that will become an integration advantage to customers

Through its 9000+ customer implementations, i2 has built a good understanding of various aspects associated with integration.

i2 has come up with a framework that integrates not only i2 internal systems such as SCM, CRM and SRM but also external systems such as ERP and Legacy systems.

Integration needs to be flexible and should allow

Specification of the workflow steps to follow

Configuration at each stage in the workflow based on specific business needs

Integration needs to be extensible

Objective is not only to deliver fully integrated solutions of i2 products covering SCM, CRM and SRM, but also to provide a solution to integrate seamlessly with other packaged applications and legacy infrastructure

The goal is to adopt an integration approach and architecture for integrating diverse systems that will become an integration advantage to customers


Common Integration ServicesCommon Integration Services

CIS Framework is an i2 abstraction on top of many underlying integration platforms (such as webMethods, Informatica)

It is a set of services enabling enterprise applications to participate in integrated environment

List of services: communication, logging, monitoring, data transformation, workflow design & runtime, single sign-on, etc.

Complete integration framework to interact with any i2 product or 3rd party system.

It is specifying common meta-data format used to simplify TMAPI based collaboration.

CIS Framework is an i2 abstraction on top of many underlying integration platforms (such as webMethods, Informatica)

It is a set of services enabling enterprise applications to participate in integrated environment

List of services: communication, logging, monitoring, data transformation, workflow design & runtime, single sign-on, etc.

Complete integration framework to interact with any i2 product or 3rd party system.

It is specifying common meta-data format used to simplify TMAPI based collaboration.


i2 Integration Architecturei2 Integration Architecture

PlanningSub-system

SCM

CustomerManagementSub-system

CRM

Design SourceSub-system

SRM

ERPSub-system

(SAP)

ODS Explore

Role based Common User Interface

LegacySub-system

(OS390)

OMx IMx

ETL-Bulk Data Transfer (back) Bus

Exchanges Hosted ServicesContent

FreightMatrix

TMOCN

Trading Partners

Common Integration Services

…

TransactionalPlatform

Enterprise Messaging (front) Bus

Workflow

Firewall

……

Public Interne

t

Public Interne

t


AgendaAgenda

Introduction on i2


SCM Solution Suite


Case Study

Introduction on i2


SCM Solution Suite


Case Study

Overview on i2 Five.Two SCM Solution Suite Hyun-Woong Jin Global Customer Solution Management i2 Technologies Hyun-Woong Jin Global Customer Solution Management.

Documents

rl fp fp

i2 customer slide

i2 customers semiconductor

confidential i2 korea

confidential i2 mission

rl scp

digitalappliance fp

value creation