Apple Computers, Inc.
Presented By..
Kelvin Chong
Edward Hwang
Hyunsook Yoo
Ching-Hsuan Hong
Agenda
• What is Apple? (Brief Background)
• SWOT Analysis
• GAP Analysis
• Tangible/Intangible Benefits
• Assumption
• Benefit Areas
• Projections
Agenda
• What is Apple? (Brief Background)
• SWOT Analysis
• GAP Analysis
• Tangible/Intangible Benefits
• Assumption
• Benefit Areas
• Projections
What is Apple?
- Founded by Steve Jobs and Steve Wozniak in
California on Jan 3, 1977.
- Survived competition of IBM
- Products:
–
–
–
–
–
Macintosh line of desktop and notebook computers
iPod digital music player
Xserve server
Xserve RAID storage products
MAC Operating System
Apple
• Faced challenges in its early stage;
- Extremely strong competition
• Large investment in R&D
– OS
– System/Hardware technology
– Design
• Invented the GUI Interface
Agenda
• What is Apple? (Brief Background)
• SWOT Analysis
• GAP Analysis
• Tangible/Intangible Benefits
• Assumption
• Benefit Areas
• Projections
SWOT – Strengths vs Weaknesses
Strengths
Weaknesses
•
•
•
•
Brand
Design
Marketing
Loyal
customer base
• Distribution (stores, partners)
• Customer support (service)
•Inventory held
•Narrow range of customers
•SCM (outsourcing)
SWOT – Opportunities vs Threats
Opportunities
• CRM
• SCM
• Globalization
(Multi-Currency
and Languages)
• Growth
• Increase customer satisfaction
Threats
•Strong competition (Dell, IBM,
SONY, IRIVER)
•M&A (Mergers and Acquisition)
•Timing
Agenda
• What is Apple? (Brief Background)
• SWOT Analysis
• GAP Analysis
• Tangible/Intangible Benefits
• Assumption
• Benefit Areas
• Projections
GAP Analysis
“As Is”
Legacy System
High inventory cost
Complicated SCM
- lots of paper work
“To Be”
Lower inventory level
Just In Time (JIT)
Accurate Process
Improved efficiency
CRM
Agenda
• What is Apple? (Brief Background)
• SWOT Analysis
• GAP Analysis
• Tangible/Intangible Benefits
• Assumption
• Benefit Areas
• Projections
Tangible/Intangible Benefits
Tangible Benefits
•
•
•
•
•
•
•
•
Increase market share
Improve data accuracy
Improve HR efficiency
Improve quality
Improve sales efficiency
Invoice processing/Billing
Decrease procurement costs
Improve project management
efficiency
• Improve time-to-market
• Improve on-time delivery
Intangible Benefits
• Improve customer
satisfaction
• Improve employee morale
• Improve receivables
management
• Reactive to changes faster
Agenda
• What is Apple? (Brief Background)
• SWOT Analysis
• GAP Analysis
• Tangible/Intangible Benefits
• Assumption
• Benefit Areas
• Projections
Assumptions
• Apple has legacy
systems, not ERP.
• Apple keeps
inventory in their
shops.
• Apple has a narrow
users
– E.g. Students,
computing
professionals,
graphic
professionals, and
home users.
•Sales expected to
increase after 2006
–Intel will be the
microprocessor supplier
for Apple.
–There will be new SCM
relationships between Intel
and Apple.
Assumptions
•
Sales Profit/Working
Capital
-
Sales will go up (CRM),
Costs will go down. (SCM)
-
Working capital is expected
to increase as profit climbs.
•
Expenses/Costs
Perspective
-
General and administrative
costs will go down
(Automation).
• Inventory
-
After Go-Live in 2006,
Inventory is expected to
go down.
-
Conversion to JIT (Just In
Time) production
-
Due to JIT, inventory
warehouses can be
virtually eliminated
Agenda
• What is Apple? (Brief Background)
• SWOT Analysis
• GAP Analysis
• Tangible/Intangible Benefits
• Assumption
• Benefit Areas
• Projections
Benefit Areas
• Revenue
Improvement
– Increase in sales
due to improved
customer service
• By utilizing the
new CRM, attend
to our customers’
needs, yielding
higher sales
•Globalization
–Global business can
increase the Apple’s
market share.
–Integrated ERP system
allows offices to better…
–Communicate
–Synergize
–international
management via
tools such as multi
currencies and
languages.
Benefit Areas
• Material Cost
Reduction
– Reduce the
purchase price of
materials
(E.g. Eprocurement)
• Throughput
Improvement
– Increase capacity
(E.g. Automated
system, Real time,
Analysis tools,
Right Information at
the right time and at
the right place.)
•Productivity
Improvement
–Reduce finance and
accounting cost (E.g.
Reduce manual input,
Real time information
for more accurate
budgets.)
–Reduce human
resources
administrative cost
(E.g. Increase process
automation.)
Agenda
• What is Apple? (Brief Background)
• SWOT Analysis
• GAP Analysis
• Tangible/Intangible Benefits
• Assumption
• Benefit Areas
• Projections
Inventory – Enhancements (1/2)
Inventory
dollars in millions
250
200
150
100
50
0
2002
2003
2004
2005
Year
2006
2007
2008
Inventory – Enhancements (2/2)
Days of supply in inventory
10
days
8
6
4
2
0
2002
2003
2004
2005
Year
2006
2007
2008
Working Capital
Working Capital
dollars in billions
5
4
3
2
1
0
2002
2003
2004
2005
Year
2006
2007
2008
Sales Profit – Enhancements (1/2)
Millions
Dollars
Dallor ininmillions
Net sales
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2002
2003
2004
2005
Year
2006
2007
2008
Sales Profit – Enhancements (2/2)
Gross margin
Gross Margin
dollars in millions
3,500
3,000
2,500
2,000
Gro
1,500
1,000
500
0
2002 2003 2004 2005 2006 2007 2008
Year
Expenses/Costs – Enhancements (1/2)
Selling, general, and administrative expenses
dollars in millions
2000
1500
1000
500
0
2002
2003
2004
2005
Year
2006
2007
2008
Expenses/Costs – Enhancements (2/2)
Cost of sales
Millions
Dollarsininmillions
Dallor
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2002
2003
2004
2005
Year
2006
2007
2008
uestions??