Maximize Profitability with Operational Efficiency

http://www.mirkin.ru/_docs/book0308_033.pdf

The high-tech industry supply chain is recognized as one of the most complex in the business world.
Semiconductor and electronic component suppliers, distributors and value added resellers (VARs),
electronic manufacturing service (EMS) providers, and original equipment and design manufacturers
(OEM/ODMs) share a co-dependent relationship to bring innovative products to market and drive
profitability in a world driven by pervasive commoditization and complexity.
Global Business Visibility
Managing business operations is a daunting task in such a
complex environment. Companies often face continuing
challenges, such as:
Managing economic cycles and unpredictable demand
variability.
Satisfying demanding and price-sensitive customers.
Gaining visibility into key operational metrics such as
supply, demand, inventory and quality.
Improving return on assets by leveraging existing IT and
people investments.
For a successful high-tech company to thrive in this
environment they must achieve:
Real-time visibility into customer demand and fulfillment;
production operations and quality metrics; on-hand,
work in process (WIP) and in-transit inventory; and
manufacturing, logistics and supplier capacity.
Frictionless supply chain collaboration with suppliers
(including small and medium enterprises or SMEs),
customers, distributors and logistics partners.
Fully automated business processes, such as quote-to-
cash, procure-to-pay, pick-pack-ship, and shop-floor to
enterprise; including human workflow for management
by exception.
Real-time analysis and optimization of key
operational metrics.
webMethods has the experience, products and
implementation methodology to help high-tech companies
achieve world class Operational Efficiency. webMethods’
innovative solution combines proven, mature enterprise
application integration technology with service-oriented
architecture and event-driven capabilities. This solution
enables more than 1,100 enterprise customers worldwide to
run, manage and optimize their business. webMethods
unites this product portfolio with proven manufacturing
industry expertise and a framework for Operational Efficiency
to provide a complete roadmap for success.

Page 2
Solutions – Operational Efficiency
Roadmap to Operational Efficiency
webMethods provides a established roadmap to Operational
Efficiency focusing on five main areas:
Master Data Management – Reduce maintenance costs by
synchronizing vendor, product and customer master data
across disparate systems to provide an integrated view of
customers, suppliers, products, and operational assets to key
stakeholders.
Supply Chain Collaboration – Increase Operational
Efficiency by collaborating with extended supply chain
partners without being encumbered by technology
limitations.
Operations Process Automation – Increase return on
assets and productivity by automating key operational
processes and managing business processes by exception.
Operations Visibility – Enhance operational visibility within
the extended supply chain with role-based operations and
supplier portals.
Operations Optimization – Increase operating margins by
systematically measuring, analyzing and optimizing drivers of
key operational metrics.
The webMethods roadmap delivers the necessary framework
and products to enable high-tech companies to methodically
achieve Operational Efficiency in a phased approach.
Phase 1 – Consolidate Master Data
Master data consolidation is a foundational step to
Operational Efficiency. However, companies possess multiple
data repositories and information systems containing
overlapping fragments of customer, vendor, asset and
product information. Consolidating this information presents
the consumers of this information with a consistent, unified
view of the master data, thus laying the foundation for
sustained Operational Excellence.
webMethods Enterprise Services Platform offers a full
graphical interface to configure services that integrate
systems and synchronize master data as they change across
your enterprise. The platform also provides a full portfolio of
database and application adapters, messaging and
information synchronization technologies and data
translation tools.
Business Benefits: Lowers data maintenance costs; ensures
data integrity across all systems; reduces supply chain costs
due to data accuracy.
Phase 2 – Model Operational Business Processes
The next step in Operational Efficiency is to develop logical
business process models for key processes within the
enterprise. webMethods offers best-practice process
templates and pre-defined document schema for commonly
used standards-based business process scenarios that can be
customized rapidly for any unique environment. Using these
templates and webMethods BPM tools, companies can
model key operational and supply chain processes including
quote-to-cash, procure-to-pay, pick-pack-ship, financial
reconciliation and shop-floor-to-enterprise processes.
webMethods Business Process Management (BPM)
utilizes a graphical interface to configure the details of the
services that will integrate systems and people to make these
business processes work without writing code. This graphical
interface also addresses the logic for integrations that
support external activities by reaching outside the
organization directly to customers, suppliers and logistics
providers.
Business Benefits: Documents and evaluates how operations
and supply chain processes are implemented today and
reduces communication gap between IT and business users.

Page 3
Global Business Visibility
Phase 3 – Automate Operational Business Processes
After the business processes are modeled, the next logical
step is to integrate them with applications, databases and
people to fully realize business process automation.
The webMethods Enterprise Services Platform provides
the system connectivity necessary to integrate modeled
processes to systems. People are often necessary in processes
for audit, control and exception handling purposes;
webMethods BPM provides the capability to integrate
human-driven steps into the business process. Together,
these webMethods technologies enable end-to-end business
process automation.
Business Benefits: Improves employee productivity through
automation; enables management by exception; increases
process efficiencies resulting in higher operating margins.
Phase 4 – Implement Business Activity Monitoring
Operational Efficiency requires high availability of both
hardware and software. A delayed or missing transaction
could translate to millions of dollars in lost assets and
opportunity costs and even incur regulatory fines. Immediate
visibility into disruptive events after they happen, or even
before they occur, ensures companies the highest quality of
service (QOS). To gain such visibility, the next logical step is to
implement business activity monitoring to address key
operational processes:
Functional monitoring: “What is the in-flight status of
our production processes?”
Systems management: “What is the operating status of
our physical integration systems?”
Key Performance Indicator (KPI) monitoring: “How are
we doing against delivery schedules? Order fulfillment?”
Failure-prediction: “Based on historical and current
trends, tell me if something can go wrong with my
operations.”
webMethods Business Activity Monitoring (BAM)
provides both real-time and historical views of run-time
performance. These graphical views provide operational
visibility into the business process components running on
webMethods, and are designed to maximize high availability
of systems to enforce key service level agreements (SLAs).
webMethods BAM also provides powerful activity
monitoring and reporting to deliver relevant metrics to all
levels within a corporation. This capability gives business
executives and business operations managers the ability to
make real-time decisions based on relevant data and insight
specific to their operations.
Lastly, webMethods BAM can detect disruptive events
based on historic fingerprinting and statistical analysis of KPI
trends and alert operations managers to possible future
failures.
Business Benefits: Provides a solid foundation for Operational
Efficiency based on monitoring and analysis of design KPIs
and partner SLAs.
Phase 5 – Implement Executive Dashboards
Once business processes are automated and business activity
monitoring is implemented, key business performance
indicators are measured as they relate to Operational
Efficiency. Valuable information can then be presented to
operations and supply chain managers for analysis and
business insight.
webMethods BAM provides visibility via real-time analytics,
reports, and alerts of integrated process metrics and Key
Performance Indicators (KPI).
Business Benefits: Enables a real-time view into the present
state of the business and context-sensitive information for
timely decision-making.

Page 4
High Tech
Solutions – Operational Efficiency
©2004 webMethods, Inc. All rights reserved. The webMethods logo and Global Business Visibility are trademarks or registered trademarks of webMethods, Inc.
in the United States and other countries. All other names mentioned are trademarks, registered trademarks or service marks of their respective companies. 052104
Global Business Visibility
    Worldwide Headquarters
3930 Pender Drive
Fairfax, VA 22030
Tel: 703 460 2500
Fax:703 460 2599
www.webMethods.com
Phase 6 – Implement Self-Service Portals
Though processes may be uniform, each person in an
organization has different roles and responsibilities. The
complexity of numerous applications, systems, and
information sources can slow decision-making and reduce
operational visibility. A presentation layer that enables a
single, personalized, role-based command and control of
operations can significantly improve the efficiency of each
person in an organization.
Implementing self-service portals for customers, suppliers and
operations managers insulates them from the complexity of
the business operations and IT systems and presents a simple
and intuitive user-interface.
webMethods Composite Application Framework (CAF)
provides the visualization layer that enables secure access to
business applications, syndicated content and collaboration
tools, based on user roles and access privileges. This layer is
presented via traditional web-browsers or through mobile
devices like wireless laptops, cell phones and PDAs. This
includes internally facing interfaces for employee self-service,
or externally facing customer self-service scenarios.
Business Benefits: Lowers call-center costs; improves
customer satisfaction; provides opportunity for targeted
customer up-sell initiatives.
Phase 7 – Optimize Your Business Processes
With the business and IT infrastructure in place to model,
automate and measure business processes, the benefits of
business optimization initiatives such as Six Sigma
enablement, Total Quality Management, Continuous Process
Improvement, and Enterprise Performance Measurement are
quickly realized.
When changes are required to business processes or systems,
this change is managed in an incremental, non-intrusive
manner—to minimize disruptions in business operations.
Now instead of taking months, business process
improvements can be deployed in days. This is the end game
for Operational Efficiency. This is the agile hightech
enterprise. This is Operational Efficiency delivered!
Operational Efficiency with webMethods
Many of the world’s leading high-tech companies have
achieved Operational Efficiency using webMethods products
in the following areas:
Quote-to-Cash Automation – webMethods streamlines the
quote-to-cash process via automated EDI and RosettaNet e-
business and self-service customer portals.
Collaborative Planning and Forecasting – webMethods
provides companies with automated collaborative planning
and forecasting, including RosettaNet transactions and
integration to supply chain management systems from i2,
SAP, J.D. Edwards, etc.
Work in Process and Inventory Management –
webMethods provides companies with integrations solutions
to MES / ERP / Inventory Management systems and sharing of
information via RosettaNet transactions.
IT Infrastructure Consolidation – webMethods provides a
unified EDI and XML B2B gateway and reduced or eliminated
VAN charges.
Achieving Operational Efficiency with webMethods
With webMethods, high-tech companies quickly move
toward Operational Efficiency. webMethods offers the
infrastructure, applications and tools necessary to increase
operating margins across the supply chain; improve customer
and supplier relationships; enhance enterprise agility with
real-time operational visibility and control; and improve the
ability to manage the demand variability and cyclical nature
of the high-tech business. With Operational Efficiency in
place, high-tech companies will be able to maximize
profitability and maintain competitiveness.