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RosettaNet In NOKIA 15 th of Nov’04 Matthias Gehrken
Transcript

RosettaNet In NOKIA

15th of Nov’04

Matthias Gehrken

2 © NOKIA

Content

• s2s, b2bi, System integration….

• Rosettanet in the Nokia Supply Chain Management Strategy

• Why RosettaNet ?

• Conclusion

3 © NOKIA

Internet & XML

•RosettaNet defines processes and a framework for how data gets passed over the Web and certainhandshake criteria.

Company A

SAPERP

Company Specific processing

I2APS

Company BCompany Specific

processing

Translate from Rosettanet standards to Company A system data set.

Translate from Rosettanet standards to Company Bsystem data set.

Partner to Partner Electronic Business Interface

4 © NOKIA

Dialog

human-to-humanbusiness exchange

Partner-to-Partner eBusiness exchange

Alphabet

Grammar

Words

Sound

Business Process

Telephone

Business Process

Telephone

DIALOG PIP™

Ro

setta

Net

Framework

Dictionary

eBusiness Process

XML

Internet

Ecom Application

E-Business Exchange

5 © NOKIA

Business Processes

ProcessPO

Send POCustomer

Send POSupplier

ProcessSales Order

Customer Supplier

Receive POAcknowledge

Send POAcknowledge

Send POResponse

Close

Receive PORequest

SelectSupplier

GenerateRFQ

SendRFQ

Select RFQResponse

SendPO

Close

Send PO

Receive POResponse

Send POResponse

Acknowledge

Receive PO

Send POResponse

Receive POResponse

Acknowledge

Receive PO

CheckCustomer

CheckCredit

CheckAvailability

Create SalesOrder

Receive POAcknowledge

Send POAcknowledge

Send POResponse

Close

Receive PORequest

SelectSupplier

GenerateRFQ

SendRFQ

Select RFQResponse

SendPO

Close

Send PO

Receive POResponse

Send POResponse

Acknowledge

Receive PO

Send POResponse

Receive POResponse

Acknowledge

Receive PO

CheckCustomer

CheckCredit

CheckAvailability

Create SalesOrder

Private process(Company -specific)

Public process(Standard)

Public process(Standard)

Private process(Company -specific)

POCRM

SCM

ERP

Figu

re p

rovi

ded

byV

itria

Sys

tem

s

Nokia Supply Chain Management Strategy

7 © NOKIA

"Extended enterprise"• End-to-end integration of Demand Supply Network• End-to-end efficiency, speed and visibility• Implementation actions - Process integration

• Web based process integration (Extranet portals)• System-to-system integration= Rosettanet

SuppliersSuppliers

ContractContractManufacturersManufacturers

POSPOSHubs &Hubs &LSPsLSPs

ChannelChannelPartnersPartnersFactoriesFactories

BanksBanks

NokiaNokia

Consumer

TelecomTelecomOperatorsOperators

8 © NOKIA

Source: Nokia 2003

100

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Million Units

2002 2003e

Product MixVolatility

30 ramp-downs/upswithin Next 6 Months

One B747 Jumboand 40 trucks daily

8 iHUBs, 9 factories,3 x 3 CEMs

We are in growth market, in complex environment

250 M Componentsper Day

9 © NOKIA

Supplier Integration is a holistic business effort

Organisation and process alignment

world wide Strong drive on implementation

of system to system through

RosettaNet

CEM process integrationas an extension of Nokia

delivery process

”Real time” customerresponse and visibility

to supply networkcapability – weeklysynchronised DSB

Best cost of ownershipthrough iHUB and planning process.

End to End Process Supplier managed availability &

flexibility throughiHUB processes

(Nokia DDU, LSA)

10 © NOKIA

eBusiness Tools for doing business with Nokia

Exists

Inproduction

Underdeployment

Nokia Portals (NGSW, NOL, NOLS)

Webportals are easy to set up and operate, but does not deliver a system to system connection.

Human to System

Rosettanet is a non-proprietary XML protocol

allowing system to system connections. Nokia is committed to integrate business process with Rosettanet standard.

Electronic Data Interchange

Existing standard. Nokiarecongises that EDI is

needed by some partners,and will be

supported accordingly

11 © NOKIA

SuppliersSuppliers

ContractContractManufacturersManufacturers

POSPOSHubs &Hubs &LSPsLSPs

ChannelChannelPartnersPartnersFactoriesFactories

BanksBanks

NokiaNokia

Consumer

TelecomTelecomOperatorsOperators

Money flow

Inbound fulfilment

Collaborative Forecasting

Nok

ia

InboundHub

3B2 Notify of advanced shipmentProduction line call offs

3B2 Notify of advanced shipment HUB to production line

3C7 Self billing invoice

3C6 Notify of remittance advice

Supp

liers

4B2 Notify of shipment receipt

4C1 Distribute inventory report

4A1 for Rolling Forecast & 4A3 for Demand Visibility4A5 for Response to RF unconstrained & DV constrained

RosettaNet in NMP Supplier Integration

Why RosettaNet?

13 © NOKIA

We want ONE de facto standard

14 © NOKIA

3 key enablers for process and system integration

Internal Readiness: Nokia & partners

-Capability to “walk the talk”-Payback through implementation

Rosettanet adoption-Agreement and commitment on standard

-Critical mass in relevant industries

Nokia S2S Integrationpriorities

-Derived from business models-Clear view what to integrate & why

Rosettanet councils

Members driving together

Rosettanet Milestone Programs

Standard development as needed

Implementation based on

business priorities

15 © NOKIA

Rosettanet structure• Rosettanet Executive board (Nokia)

•Rosettanet overall management and administration

• Supply chain councils•EC, Electronic components (Nokia)•IT, Information Technology •SM, Semiconductor Manufacturing•TC, Telecom (Nokia)

• Solution Provider Board•Service & Solution providers

Rosettanet Executive Board

Supply Chain Boards

LG

IT

SM

TC

Solution Provider Board

Internal Readiness: Nokia & partners-Capability to “walk the talk”

-Payback through implementation

Rosettanet adoptance-Agreement and commitment on standard

-Critical mass in electronic and telecom industry

Nokia S2S Integration Agenda-Derived from business models-Clear view what to integrate &

why

Rosettanet Adoption

Matti Heikkilä, Nokia CMO

VP Business development

Jean-Francois Baril, Nokia CMO

SVP Sourcing & Procurement

EC

16 © NOKIA

Nokia Rosettanet Deployment Status 28th October2004

•Customers: 8 Process Channels (PIPs 3A4, 3A7, 3B2 and 3C3)•5 Customers

•CEM (not CMO): 3 Process Channels (PIPs 3A4, 3A7 and 3B2)•1 CEM

•NET Suppliers: 10 Process Channels (PIPs 3A4, 3A7, 4A1 and 4A5)•5 Suppliers (overlap with CMO)

•CMO Suppliers: 198 Process Channels (PIPs 3C6, 3C7, 4A1, 4A3 and 4A5)•51 Suppliers

•TOTAL: 61 Partners, 222 Process Channels

•Payment Initiation: 1 process channel•1 Bank

Internal Readiness: Nokia & partners-Capability to “walk the talk”

-Payback through implementation

Rosettanet adoptance-Agreement and commitment on standard

-Critical mass in electronic and telecom industry

Nokia S2S Integration Agenda-Derived from business models-Clear view what to integrate &

why

Readiness & implementation

•LSP: 2 Process Channels (PIPs 3B2)•2 LSP

17 © NOKIA

Suppliers

ManufacturerEnd User

Distributor

Retailer

Value-AddedReseller

CorporateReseller

Transition from Linear Supply Chain…

Industry Trends - Supply Chain Transition

18 © NOKIA

….. to Dynamic Supply Chain Networks

Suppliers

ManufacturerEnd User

Distributor

Retailer

FinancingProvider

Publisher

Value-AddedReseller

CorporateReseller

Industry Trends - Supply Chain Transition

19 © NOKIA

Message-centric• Batch

• 10% of B2B processes

• VAN-enabled

• X.12/EDIFACT/JECALS

• Regional

• Large businesses

• Custom industry dictionaries

Information Exchange Standards

Process-centric• Real-time

• 100% of B2B processes

• Internet-enabled

• XML

• Global

• All businesses

• Standard industry dictionaries

20 © NOKIA

What if… we don't drive this?

We stay in the middle of the JUNGLE:Manage different StandardsDeal with many Interfaces

-More Cost-More Support-More Time

21 © NOKIA

RosettaNet has what it takes

Open and Global

Standard

Controlled Process

Integrated Back-end Process

Real Time CommunicationCollaborative

Development

Thank You

Back-up Slides

24 © NOKIA

Why RosettaNet is called RosettaNet?The name of RosettaNet originates from

The Rosetta StoneThe Rosetta Stone (196 BC), which provided the key to solve the mystery of hieroglyphs. The Rosetta Stone is the only surviving fragment of a stella bearing a decree written in three languages: Greek, Demotic and Hieroglyphs.

Hieroglyphs

Demoticthe everyday script of literate Egyptians

Greekthe language of the government

The Rosetta Stone was probably originally erected at the temple of the city of Sais, later in the medieval period moved to Rosetta (akael-Rashid), where it was discovered in July 1799 by Pierre François Xavier Bouchard.

The Rosetta stone is now located at British Museum in London.

25 © NOKIA

RosettaNet Partners (2003)

Americas 158

Europe 46

Japan100

Korea29

Taiwan94

Malaysia62

Singapore48

Philippines18

China

26 © NOKIA

From Strategy to S2S ImplementationCase Nokia

Functionality (PIPs)Roadmap

System FunctionalityPriorisation (S2S)

Processes

Business model

Business strategy

27 © NOKIA

Nokia PrioritiesS2S Integration Agenda

Transaction volume

Strategic importance-Business value-Critical components-Critical Information

Low High

Low

High

Automation of manual work

Elimination of human errors

Realtime information

High priority

Business Partner AND process priorisation

28 © NOKIA

S2S Integration AgendaCustomer Interface Functionality

Transaction volume

Strategic importance-Business value-Critical components-Critical Information

Low High

Low

High3C3 Invoice

Business Partner AND process priorisation

3A4 Order Placement2A1 Product Catalog

3A7 Order Conf

3B2 Despatch Adv

29 © NOKIA

SuppliersSuppliers

ContractContractManufacturersManufacturers

POSPOSHubs &Hubs &LSPsLSPs

ChannelChannelPartnersPartnersFactoriesFactories

BanksBanks

NokiaNokia

Consumer

TelecomTelecomOperatorsOperators

Money flow

Inbound fulfilment

Collaborative Forecasting

Nok

ia

InboundHub

3B2 Notify of advanced shipmentProduction line call offs

3B2 Notify of advanced shipment HUB to production line

3C7 Self billing invoice3C6 Notify of remittance adviceSu

pplie

rs

4B2 Notify of shipment receipt

4C1 Distribute inventory report

4A1 for Rolling Forecast & 4A3 for Demand Visibility4A5 for Response to RF unconstrained & DV constrained

RosettaNet in Supplier Integration

Product Data Management2A13 Distribute Material Composition Information

30 © NOKIA

Nokia approach for Gathering Material Composition

• Implement RosettaNet Material Composition PIP in line with our business process development with suppliers

• Gather data from our suppliers. The requirement to provide material composition is included in Nokia Supplier Requirements

• Material Composition will be stored in our PDM –systems as a part of normal component/part technical data

• User can be e.g. component engineer, so this action is not limited to environmental specialists

31 © NOKIA

The Usage of Material Composition• The data is used for:

• Ensuring that our products meet applicable requirements• Environmental• Consumer safety• Other safety (e.g. safety in manufacturing)

• Controlling proactively and reliably material contents of our products • Analysing design alternatives / decisions during design• Producing necessary information for our stakeholders, e.g. our product

eco-declarations (see: www.nokia.com / About Nokia)

• Nokia asks “as complete as possible” –data in order to ensure the ability to meet previous targets

• Limited list based approaches lead easily to repeated data gathering rounds increasing workload, unnecessary delays and needed management actions

32 © NOKIA

RosettaNet PIP® for Material Composition• Content

• Includes necessary definitions and documents for information exchange and software development and implementation

• Data model is flexible -> Enables simple and complex type declarations• Data model and the content are totally separated (e.g. PIP does not

include any definitions concerning individual substances, thresholds, etc.)

• 1st phase development will be completed this year

• Two PIPs (2A10 & 2A13)• The choice depends on companies’ supply chain and RosettaNet

strategies as well as existing and planned capabilities• Information available: www.rosettanet.org (Material Composition)

• Nokia is currently testing PIP 2A13 and preparing for roll-out in 2005

33 © NOKIA


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