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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
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
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
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