Business
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Master title Next Steps
Presentation to BU CIOs & Business Leaders
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2015
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Master
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Pat Sarkar, VP-IT & Chief Architect Core Team
Enterprise Longevity or Profitability - Why Care?
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What's an Enterprise?
Are CEOs Enterprise Architects or Enterprise Managers?
Is Profitability an indicator of Enterprise Health?
Enterprise Architecture, Business Architecture and IT
Architecture
Enterprise is static like a "building" or dynamic like a
"human body"?
What are Enterprise Disorders?
Evolution of enterprise concepts in recent times (Peter
Drucker, Jim Collins, John Zachman, etc)
How to manage Enterprise and its Architecture?
Managing Enterprise Stakeholders
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Enterprise Architecture and stakeholders
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Executive perspective - Business
strategy planner
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Business management perspective –
Business process owner
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System perspective – Business logic
designer
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What are the key stages of idea
transformation
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Challenges and opportunities
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Multiple Roles
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Business structure and linkages
Business Process Improvement Using Enterprise Architecture
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Structure of a Business Process
Business process improvement - traditional approach & limitation
How to deconstruct a business process diagram?
How to reconstruct a process from process elements (primitives)?
How to create multiple targets?
How to effectively combine various enterprise variables for process
improvement?
How to handle business goal which demand changes across
multiple departments?
Understand the dependency of processes on underlying systems
Identify business strategies which are affected
How to link "target processes" to Enterprise wide assets
Time to zoom into 65 business processes or more to meet business
goal
TE Connectivity Confidential & Proprietary. Do not reproduce or distribute.
How to Successfully Translate Business Strategy to Results Using
Enterprise Architecture
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What are business strategy "primitives" (strategy building blocks)
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How to identify strategy primitives from existing business
strategies
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Is your business strategy incomplete or inconsistent?
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Quickly assess limitation of your strategy
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How to quickly take corrective measures
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How to assemble strategy primitives to construct new ones
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How to Deconstruct Business Strategy - and Reconstruct New
Ones
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What are Business Capabilities and Business Outcomes?
Why & How to do Business Transformation?
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Why Business Transformation?
When Business Transformation?
How does current enterprise look?
Identify motivation behind business transformation
Understand anatomy of departments such as Sales, Engineering
Identify conflicting strategies, outdated processes
Focus on system and technology complexity
Create enterprise primitives and binary dependency
Case I - cost reduction, improving margin for a product/service
Case II - increase revenue for a product/service in emerging market
Key challenges
A methodology for business transformation
P SARKAR
Four TE Segments & 12 Business Units Are Semi-Autonomous and in
Different Industry Verticals, M&A Inorganic Growth Strategy- $15.0 Billion
Independent Business Units - $1.6 Billion
Industrial Solutions - $4.0 Billion
• Channel
• Aerospace, Defense & Marine
• Subsea Communications
• Energy
• Industrial
• Medical
Communication Solutions - $3.1 Billion
Transportation Solutions - $6.2 Billion
• Appliances
• Application Tooling
• Data & Devices
• Automotive
• Industrial & Commercial Transportation
• Sensor Solutions
3
TE Connectivity Confidential & Proprietary. Do not reproduce or distribute.
P SARKAR
An organization’s Enterprise Architecture
includes its Business and IT Architectures.
Business
Strategy
& Goals
Business Architecture
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Suppliers
Products
Services
Information
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Business Capabilities
People
Inputs
Outputs
Processes
Technology
IT Architecture
Application
Architecture
Information
Architecture
Assets
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TE Connectivity Confidential & Proprietary. Do not reproduce or distribute.
Business
Outcomes
Customers
Products
Services
Information
“IT Savvy” companies* have figured out how to
align their Business and IT Architectures.
IT can be a powerful enabler of an organization’s
future Business Architecture.
* “IT Savvy - What Top Executives Must Know to Go
Infrastructure
Architecture
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Channels
Revenues+
NPS+
CostsCompliance+
From Pain to Gain”,
P SARKAR
Peter Weill & Jeanne W. Ross
Business Capabilities Framework
Business Capabilities
L0
1.0 TE Business Vision and
Strategy (10002)
Business Outcomes:
Number of new
businesses launched
over the past three
reporting periods per
$1 billion revenue
Process Groups
L1
Business Processes Business Procedures
L3
L2
1.1 Define the bus. concept and
long-term vision (17040)
1.1.1 Access the External
Environment (10017)
1.1.1.1 Analyze and evaluate
competition (10021)
1.2 Develop Business Strategy
(10015)
1.1.2 Survey market and
determine Cust. needs (10018)
1.1.1.2 Identify economic trends
(10022)
1.1.3 Perform internal analysis
(10019)
1.1.3.1 Analyze organizational
characteristics (10030)
1.1.4 Establish strategic vision
(10020)
1.1.4.1 Align stakeholders
around strategic vision (10035)
1.1.5 Conduct org restructuring
opportunities (16792)
1.1.5.3 Analyze deal options
(16795)
Tasks
L4
1.1.5.3.1 Evaluate acquisition
options (16796)
1.1.5.3.2 Evaluate merger
options (16797)
2.0 Innovative Products and
Services (10003)
3.0 Brand, Marketing and Sales
(10004)
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2.1 Manage product and
service portfolio (10061)
2.1.1 Evaluate perf of existing
products/ services (10063)
2.2 Develop products and
services
2.2.1 Design, build and
evaluate products (10080)
2.2.1.1 Assign resources to
products/services proj (10083)
3.1 Understand markets, cust &
capabilities (10101)
3.1.1 Perform cust and market
intel analysis (10106)
3.1.1.1 Conduct cust and
market research (10108)
TE Connectivity Confidential & Proprietary. Do not reproduce or distribute.
P SARKAR
BU Sensors/IoT/Big Data: Basic Business Model
Suppliers
Raw
Material
Suppliers
Products
& Services
Raw
Materials
TE Plants
Supplier
Consignment
Logistics
Std.
Products &
Proprietary
Products
TE.com
TE
Distribution
Center
Raw Materials
Component
Suppliers
Key Suppliers
• Corning
• Supplier B
Key Raw Mat’l &
Components
• Glass fiber
• Comp. B
Components
Contract
Manufacturers
Std. Products
Key Products
• Fiber optic cable
• Undersea
repeaters
• End-to-end
undersea cable
systems
Key DC locations
• Elizabethtown, NJ
• Connecticut
• Singapore
Key Plants & Spec.
• Plant A
• Plant B
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TE Connectivity Confidential & Proprietary. Do not reproduce or distribute.
Key Supplier
Agreements
• Supplier A
• Supplier B
P SARKAR
Customers
Sales
Direct
Sales
Std.
Products &
Proprietary
Products
Customer
Locations
TE-managed
Consignment
Distributors
Key Distributors
• None
Revenue Ratio
• 100% direct
Key Customers
• Google
• Facebook
• Tata Comm.
• Matrix Networks
Customer Products
w/ TE Content
• Google, Facebook
BU Sensors/IoT/Big Data: Key Business Capabilities (TEIS Ranking)
Please force-rank the capabilities (the following are examples, replace them with real BU capabilities):
Capabilities
TEIS
Rank
1. BU active in M&A?
7
For this BU?
NO
2. Innovative products, such as …
[1]
YES
3. Innovative services, such as …
[2]
YES
4. Engineering design of products (maybe patents)
[3]
YES
5. Long-term customer relationships
[4]
YES – (maintenance/emergency repairs)
6. Logistics, e.g., next day fulfilment
N/A – long sales cycle, contracted completion schedules,
projects
7. Distributor Channel, Direct Sales or Both
Direct
8. Customer service (ECE), NPS score is …
N/A
9. Manufacturing capabilities
Undersea cable, repeaters and termination electronics
10. TEOA maturity & quality
No data
11. Sales cycles are long or short?
Very long - years
12. Compliance requirements, highly regulated?
YES-multiple standards, complex international permitting
process.
13. Global? How many countries do we sell in?
Global
14. Advanced Data Science
NO
TE Connectivity Confidential & Proprietary. Do not reproduce or distribute.
P SARKAR
BU Sensors/IoT/Big Data Communications: Goals
Strategy
CEO’s Goals for this BU
Business Outcomes
Portfolio
M&A
None
Growth
Customer Account Growth
Account Growth >= 2%
ECE
NPS Improvement
Execution of ECE actions, STR/STS
NPS >40
STR 93%, up 15bps, STS 95%, up 200bps
Operations
TEOA Deployment
Mfg sites: 3-star (95%), 4-star (55%), 5-star (10%)
Org Structure
Stranded Cost Evolution Post BNS
$18 of $80M stranded cost addressed
Talent
GTM Development Programs: Sales, PM & Eng
Rollout & Part. in GTM Program & Calibration
Strategy
BU’s Goals and Corresponding IT Strategy & Goals
Business Outcomes
Portfolio
Growth
ECE
Operations
Org Structure
Talent
8
TE Connectivity Confidential & Proprietary. Do not reproduce or distribute.
P SARKAR
BU Appliances: Basic Business Model
Suppliers
Raw
Material
Suppliers
Products
& Services
TE Plants
Raw
Materials
Supplier
Consignment
Logistics
Std.
Products &
Proprietary
Products
TE.com
TE
Distribution
Center
Raw Materials
Component
Suppliers
Contract
Manufacturers
Std. Products
Key Suppliers
• E T Horn
• Hope Services
• Henkel
Key Products
Key DC locations
• JCDC
• NCDC
• PADC
Key Raw Mat’l &
Components
• Resins
• Coil alloy
Key Plants & Spec.
9
Components
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Terminals/Splices
Heat Shrink Tubing
Connectors, RAST
Relays
Lickdale, PA
Menlo Park, CA
Qingdao, China
Shenzhen, China
Shanghia, China
Collegno, Italy
TE Connectivity Confidential & Proprietary. Do not reproduce or distribute.
Key Supplier
Agreements
• Supplier A
• Supplier B
Customers
Sales
Direct
Sales
Std.
Products &
Proprietary
Products
Customer
Locations
TE-managed
Consignment
Distributors
Key Distributors
(US/AP/EMEA
Regional Partners)
• Dist. A
• Dist. B
• Dist. C
Revenue Ratio
• 50/50
Key Customers
• ECI, Electrolux,
Emerson, Haier,
Samsung, LG,
Whirlpool, Yazaki,
Delphi, Boeing
Customer Products
w/ TE Content
• Cust. Prod. A
Key customer
agreements
P SARKAR
BU Appliances: Key Business Capabilities (TEIS Ranking)
Please force-rank the capabilities (the following are examples, replace them with real BU capabilities):
Capabilities
TEIS
Rank
For this BU?
1. BU active in M&A?
YES - part of M&A growth plans but no recent acquisitions.
2. Innovative products, such as …
Contactless, 2.00mm Pitch Sig. Conn, High Temp NiFe Term.
3. Innovative services, such as …
4. Engineering design of products (maybe patents)
5. Long-term customer relationships
6. Logistics, e.g., next day fulfilment
Lead time biggest issue w customers
7. Distributor Channel, Direct Sales or Both
Both
8. Customer service (ECE), NPS score is …
[1]
ECE priority (lead time primary objective)
9. Manufacturing capabilities
[2]
S&OP Improving mix & lead time
10. TEOA maturity & quality
[3]
SL4 in all plants working on SL5 in some
11. Sales cycles are long or short?
[4]
Design-in key.
12. Compliance requirements, highly regulated?
13. Global? How many countries do we sell in?
Most global business – like Auto.
14. Advanced Data Science
NO
10
TE Connectivity Confidential & Proprietary. Do not reproduce or distribute.
P SARKAR
BU Appliances: Goals
Strategy
CEO’s Goals for this BU
Business Outcomes
Portfolio
Strategy and M&A pipeline development in Appliances
(share of) >$350 million in M&A in annual revenue
Growth
Customer Account Growth
Account Growth >= 2%
ECE
NPS Improvement
Execution of ECE actions, STR/STS
NPS >40
STR 93%, up 15bps, STS 95%, up 200bps
Operations
TEOA Deployment
Mfg sites: 3-star (95%), 4-star (55%), 5-star (10%)
Org Structure
Stranded Cost Evolution Post BNS
No specific BU stranded cost
Talent
GTM Development Programs: Sales, PM & Eng
Rollout & Part. in GTM Program & Calibration
Strategy
BU’s Goals and Corresponding IT Strategy & Goals
Business Outcomes
Portfolio
Growth
ECE
Operations
Org Structure
Talent
11
TE Connectivity Confidential & Proprietary. Do not reproduce or distribute.
P SARKAR
BU Data & Devices: Basic Business Model
Suppliers
Raw
Material
Suppliers
Products
& Services
TE Plants
Raw
Materials
Supplier
Consignment
Logistics
Std.
Products &
Proprietary
Products
TE.com
TE
Distribution
Center
Raw Materials
Component
Suppliers
Key Suppliers
• BASF
• DuPont
Key Raw Mat’l &
Components
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•
Resins
Plating
Metals
Component Supplier ex.
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•
Sanwa Plastic Industry
Pte Ltd
QingDao GP
Electronics
12
Components
Customers
Sales
Direct
Sales
Std.
Products &
Proprietary
Products
Customer
Locations
TE-managed
Consignment
Contract
Manufacturers
Std. Products
Key Products
Key DC locations
• NCDC
• PADC
Key Distributors
• Dist. A
• Dist. B
Key Customers
• Samsung
• Apple
Key Supplier
Agreements
• Supplier A
• Supplier B
Revenue Ratio
• Dist. Sales vs
Direct Sales
Customer Products w/
TE Content
• Wearables (exiting)
• Mobile Phones
• Datacomm focus
Key customer
agreements
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Antennas
High-speed Data Center
Connectors
Key Plants & Spec.
• Lickdale
Key Eng. Centers:
Harrisburg, PA;Shanghai,
China;Kawasaki, Japan
Contract Mfg ex.
•
Shenzhen Deren
Electronics Co.,Ltd.
TE Connectivity Confidential & Proprietary. Do not reproduce or distribute.
P SARKAR
Distributors
Strategic markets:
• Consumer
• Antenna
• Wearables