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The Impact of IT on Product Innovation
The Impact of IT on Product Innovation
Reebok Background
Reebok Background
Reebok Financials
Reebok Financials
IT Governance
IT Governance
Implementation Methodology of all Major Systems Investments
Implementation Methodology of all Major Systems Investments
Example 1: Reebok Product Development
Example 1: Reebok Product Development
Product Development Re-Engineering Challenges
Product Development Re-Engineering Challenges
One Example: Pump 2.0
One Example: Pump 2.0
Pump 2.0 Facts and Figures
Pump 2.0 Facts and Figures
Product Development Technology
Product Development Technology
Key Attributes of Current Environment
Key Attributes of Current Environment
Key Attributes of Current Environment
Key Attributes of Current Environment
Product Development Technology Portfolio
Product Development Technology Portfolio
Product Development Technology Portfolio
Product Development Technology Portfolio
Product Development Technology Portfolio
Product Development Technology Portfolio
Product Development Technology Portfolio
Product Development Technology Portfolio
Results So Far
Results So Far
Example 2: Supplier E-Hub - What is it
Example 2: Supplier E-Hub - What is it
Logistics Facts
Logistics Facts
Past Supply Chain Challenges
Past Supply Chain Challenges
the Old Way
the Old Way
the New Way
the New Way
Results So Far
Results So Far
Example 3: Digital Asset Management
Example 3: Digital Asset Management
The Past
The Past
Reebok’s New DAMS Process Diagram
Reebok’s New DAMS Process Diagram
Results So Far
Results So Far
Results So Far (cont
Results So Far (cont
Central Repository for Reebok’s Assets
Central Repository for Reebok’s Assets
Advice when using technology to improve product development: Obtain
Advice when using technology to improve product development: Obtain
Advice when using technology to improve product development
Advice when using technology to improve product development

Презентация: «The Impact of IT on Product Innovation». Автор: Reebok International Ltd.. Файл: «The Impact of IT on Product Innovation.ppt». Размер zip-архива: 5856 КБ.

The Impact of IT on Product Innovation

содержание презентации «The Impact of IT on Product Innovation.ppt»
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1 The Impact of IT on Product Innovation

The Impact of IT on Product Innovation

Peter Burrows Sr. VP/ MIS and CIO September 27, 2005

September 27, 2005

Boston College

1

2 Reebok Background

Reebok Background

Multiple Brands

Multiple Retail Channels

Variety of Product Types

September 27, 2005

2

Boston College

3 Reebok Financials

Reebok Financials

2004 Annual Sales = $4 billion An improving financial performance for the last five years: Five consecutive years of earnings improvement. Compounded annual growth rate of 23.4%. Returned $226 million to shareholders in the form of dividends and share repurchases We have generated $900 million of operating cash flow. Our share price increased more than 400% and during the past year it outperformed the S&P 500 for the fifth consecutive year. Cash position at December 31, 2004, $565 million On August 3, 2005 Reebok agreed to be purchased by Adidas for $59 a share – a 34% premium.

September 27, 2005

3

Boston College

4 IT Governance

IT Governance

IT Investment Committee Corporate Executive Management; establishes IT capital spending annually; meets once per year

Mandatory for any project

September 27, 2005

4

Boston College

5 Implementation Methodology of all Major Systems Investments

Implementation Methodology of all Major Systems Investments

September 27, 2005

5

Boston College

6 Example 1: Reebok Product Development

Example 1: Reebok Product Development

Reebok introduces thousands of new products as seasons or collections every year To ensure a steady supply of new products we are working on 5-7 active seasons of products all at the same time The average footwear product takes 18 months to engineer, commercialize and appear on retailer shelves, but quick to market products can move through the same process in less than 90 days. Continuous improvement in materials present an ever increasing list of construction choices that must be tested and approved before being included in any product Despite the availability of digital product representations of products, our industry requires physical product samples to test, approve and sell effectively We out source almost all manufacturing so we must work collaboratively with a network of supply chain partners

September 27, 2005

6

Boston College

7 Product Development Re-Engineering Challenges

Product Development Re-Engineering Challenges

High volume process No exact-fit, off-the-shelf software that can scale to global requirements Geographically dispersed user base Large percentage of users not Reebok employees Desire to add more structure to current processes while reducing cycle times Footwear product development different than apparel and equipment No common workstation platforms due to nature of the work (PC’s, Mac’s, Unix workstations) Employees want to work online/offline at the office and on the road

September 27, 2005

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Boston College

8 One Example: Pump 2.0

One Example: Pump 2.0

Pump 2.0 introduced in April of 2005 The original pump technology Reebok introduced in the 1980's eventually sold more than 20 million pairs Pump 2.0 needs no laces and inflates by itself

September 27, 2005

8

Boston College

9 Pump 2.0 Facts and Figures

Pump 2.0 Facts and Figures

The inflatable bladder and smart valve took over four years to develop and perfect in our Advanced Research department 50 additional parts beside the bladder make up this shoe The parts are made from 25 different materials that had to be tested and approved by labs located in China, Korea and Taiwan. 15 different manufacturers supplied these materials from five different countries Special tooling had to be created for manufacturing to support RF welding dies, cutting dies, midsole molds, outsole molds, flow molds, hot press molds and injection molds Physical samples of this shoe had to manufactured for initial product review, prototype, confirmation meetings, retail and consumer feedback meetings, photo-shoots, bulk sales samples for distribution to more than 30 countries, 3 rounds of fit and wear testing and final manufacturing confirmation Hundreds of product wear testers had to be identified, provided product and then surveyed for results

September 27, 2005

9

Boston College

10 Product Development Technology

Product Development Technology

THE PAST

Current Environment

Islands of Information Redundant views of information Technology makes factory participation difficult Manual hand offs between groups Data integrity issues No visibility or control over process Increasing pace of market changes leading to employee stress

Increased investments in automating the product development process Single database for all product information Only one version of the truth Internet based to allow factory participation Workflow agents for electronic handoffs

September 27, 2005

10

Boston College

11 Key Attributes of Current Environment

Key Attributes of Current Environment

Single product vault for all product information regardless of where the products are designed or what technologies are used to create them Ability to view and comment on aspects of a product digitally, without the need to have specialized software that might have been used to create digital view Every electronic device used in product development is connected to the network to support 100 % flow of information Individual products can be grouped into categories, lines and seasons so the timelines can be managed as a collection that must be delivered to the market together

September 27, 2005

11

Boston College

12 Key Attributes of Current Environment

Key Attributes of Current Environment

Electronic workflow to move all products through specific process gates defined for each product type Web browser user interface Digital product images are used in all reports and management dash boards Collaboration with supply chain partners for 7/24 hour global engineering Management alerts on products not hitting timelines or margin expectations

September 27, 2005

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Boston College

13 Product Development Technology Portfolio

Product Development Technology Portfolio

September 27, 2005

13

Boston College

14 Product Development Technology Portfolio

Product Development Technology Portfolio

September 27, 2005

14

Boston College

15 Product Development Technology Portfolio

Product Development Technology Portfolio

September 27, 2005

15

Boston College

16 Product Development Technology Portfolio

Product Development Technology Portfolio

September 27, 2005

16

Boston College

17 Results So Far

Results So Far

In the sixth inning of a nine inning game 15 Complete Seasons in footwear and apparel now managed Over 45,000 electronic files are stored in the product vault 24 reports and 35 line plan views are utilized daily by 64 different user profiles/roles

8 footwear and 9 apparel milestones are tracked as workflow gates

September 27, 2005

17

Boston College

18 Example 2: Supplier E-Hub - What is it

Example 2: Supplier E-Hub - What is it

Web enabled application that can be used to extend internal ERP and PLM systems to factories, transportation providers and other supply chain partners. Can facilitate: Distribute PO’s electronically Publish ticketing and labelling requirements Track work in process Obtain shipping services Creation of advanced shipping notices Exchange shipping documents

September 27, 2005

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Boston College

19 Logistics Facts

Logistics Facts

40 Main Footwear Factories in 8 Countries 600 Apparel Factories in 29 Countries 450 Raw Material Suppliers 27 Freight Forwarders Transportation modes include Ship, Truck, Rail and Air 34 Custom Brokers Over 5,000 purchase orders placed each month

September 27, 2005

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Boston College

20 Past Supply Chain Challenges

Past Supply Chain Challenges

Purchase Order Management Lack of complete purchase order visibility to trading partners (sales offices, factory, raw materials supplier, ticketing, consolidator, transportation, Distribution Center) to manage supply chain lead time & inventory Difficult to extend internal systems to link different supply chain parties. Difficult to accurately implement customer specific services (e.g. ASN, pre-ticketing, labeling, mark-for-store) Transportation Logistics Management Different carriers, different way to trace & track Non completeness of consignment check point Manual processes for smaller carriers, air and exceptions Last minute inventory management difficult

September 27, 2005

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Boston College

21 the Old Way

the Old Way

Reebok HQ

Communication Methods: Fax, Mail, Couriers, site visits, EDI, proprietary file transfers

Factories

Customs

Label Providers

Banks

Country Liaison Offices

Transportation Providers

Drop ship customers

Reebok Trading Hong Kong

Raw Material & & Component Suppliers

September 27, 2005

21

Boston College

22 the New Way

the New Way

Business-to-Business data sharing /Vendor Neutral E-Hub/ Hosted Environment (ASP model)

Workflow, message alerts, backoffice integration with reporting capabilities

Reebok HQ

Custom-built e-HUB with LINE, a division of container port operator, Hutchinson- Whompoa in Hong Kong

Factories

Country/ Liaison Offices

Employees

Banks

Drop ship customers

Label Providers

Customs

Transportation Providers

Raw material & Component supplies

Reebok Trading Hong Kong

September 27, 2005

22

Boston College

23 Results So Far

Results So Far

Increased operational efficiency through electronic transmission of order information directly into the factory systems Improved data accuracy Reduced administration cost through data inheritance Some factories now using same solution for raw material suppliers. Neutral & common platform compared to having different system for each shipper/carrier Purchase order history and version control logs benefit factories Dashboard design with “To Do List”, “Overdue Tasks” and “Alerts” for each user level Ability to print / re-print purchase orders on demand Numerous pre-delivered reports to manage PO activity

September 27, 2005

23

Boston College

24 Example 3: Digital Asset Management

Example 3: Digital Asset Management

BENEFITS Cost reduction Improved brand image Enable better communication with distribution partners and customers requiring digital images Allows the use of digital images in all executive dash boards

WHAT IS IT? A central repository for all digital assets capable of handling all of Reebok image types (video, products, lifestyle) Ability to push digital assets to a channel partners A work flow system that enables a stream-lined process for creating and approving digital assets

September 27, 2005

24

Boston College

25 The Past

The Past

. .

E-Mail

Manually Archive

to CD

strain on network and mail servers

Manually resize all images - low, med, hi versions

Users requesting images

Product Development Centers

US

Librarian

Print

Catalogs

September 27, 2005

25

Boston College

26 Reebok’s New DAMS Process Diagram

Reebok’s New DAMS Process Diagram

September 27, 2005

26

Boston College

27 Results So Far

Results So Far

Central Repository for all of Reebok’s digital assets. Reduction / elimination of redundant photo shoots Better control of copyrighted assets - automated expiration of assets Access to the correct and most current version of assets Store only the core asset; Render to needed format and resolution “on-the-fly”. Self-service model for image requests - Reduction of CD creation costs Reduction of Shipping Costs Reduction of Product Catalog Printing Costs Instant fulfillment – reduced time-to-market

September 27, 2005

27

Boston College

28 Results So Far (cont

Results So Far (cont

Reduced network traffic: Automated upload of product assets via FTP and not E-mail View thumbnail and only download high resolution if desired Use of shortcut links in emails to reference images, instead of attaching image file Improved worker efficiency by providing a one stop location for product images and product data. Product data from Reebok’s Line Planning System automatically mated with appropriate asset Built in search tools Better control of access to assets through user groups and permissions. Browser based application accessible from any public Internet connection and does not require any client install.

September 27, 2005

28

Boston College

29 Central Repository for Reebok’s Assets

Central Repository for Reebok’s Assets

September 27, 2005

29

Boston College

30 Advice when using technology to improve product development: Obtain

Advice when using technology to improve product development: Obtain

executive leadership at the highest possible level Balance top-down objectives for change with ample benefits for the people who work in the process Avoid long-duration, big-bang implementations Try to deliver some benefits every 3-6 months Initial focus on low hanging fruit to gather support and momentum If possible, defer most complex technology challenges until team has mastered the technology and gained confidence Retire Legacy modules along the way to increase compliance to new processes/simplify maintenance Do not accept software that is NOT a good fit Influence suppliers if you can/custom build if you cannot

September 27, 2005

30

Boston College

31 Advice when using technology to improve product development

Advice when using technology to improve product development

(continued): Fund full-time, business team members in project cost Pay close attention to systems technical architecture so it can scale and handle performance and allow secure collaboration outside of the firewall Adjust project calendar to recognize and accommodate seasonal product development calendars Use the project as an opportunity to clean up data Adhere in strong project methodology and focus attention on issues and off plan items.

September 27, 2005

31

Boston College

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