Download - E-Capability Strategy August 2012
E-Capability Strategy August 2012
AGENDA
- Completed Actions to Date/Tasks- Scope Clarification - Review Updated Maturity Model - Capability Prioritization - Spider Web Model- 2012-2015-2018 System Flows - CLS Web Strategy- Next Steps Discussion
E-Capability Strategy – Next Steps
Define Business Architecture
Define Future State Priorities
Develop detailed roadmap Execute
Refine
• Innovation: Opportunity Assessment
Charter Created
• Identify Gaps / Pain Points
• Finalize RACI RACI Created
• Finalize global team membership
CLS Wide Business & IT Team Established
Working Team Established
• Initiate creation of metrics supporting design principles
Vision & Principles Created
Strategy Timeline Created
Maturity Model Created Multiple Gartner
Briefings Held to Understand Vendor Strategies
• Assess benefits, costs, risk, & organizational readiness for each initiative
• Sequence the initiatives into a roadmap based on the assessment
• Lay out baseline Roadmap current state & future state
• Establish go forward leadership structure & governance model
• Launch / continue with initiatives in execution plan
Q2 - 2012 Q3-2012Q4 2012 onwards
• Complete application inventory and identify application overlaps
Initial Inventory Created Desired Capabilities
Collected, Prioritized, & Ranked for 2013/2014
• Agreement on priorities from CLS Leadership
• JJ SC CLS Review
• Define the future state processes and organization
• For each prioritized capability(and associated processes) define the high-level future state solution architecture in terms of: application, data, integration, and infrastructure
Creation of System View Roadmaps started
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eCapability CharterScope
• The scope of this project is customer-facing eCommerce, and spans all sectors and countries.
• The tactic will cover electronic data interchange (EDI), B2B portals like Gateway, industry exchanges like GHX, VMI , POU data capture systems (e.g., GHX Physician Preference Items), consigned inventory management, mobile solutions for orders/inventory management/etc., RFID, eIFU, electronic PI's, CSOS, etc.
• It will include B2C and social media where it is necessary to the delivery of J&J products to our end customers.
• eCommerce must be aligned with distribution network strategy and meet channel/geographic/commercial/etc.req's.
Level 1 - Basic Order Management Limited connection
with customers
Level 2 - External/Internal Information
Electronic connection with customers
Level 3 – Growth Platform
Moderate collaboration with customers
Level 4 –One with the Customer
Great collaboration with customers
May include some or all of the following:• Processing manual
orders via phone or fax
• Accepting cash payments
• Simple product catalog
• Basic order capability via portal
May include some or all of the following:• Internal integrations
(Shipment tracking)• Accepting electronic funds
transfers/online order taking• Online portals for self-service
transaction inquiries• Collaborative Planning
Forecasting and Replenishment (CPFR) teams
• Vendor Managed Inventory (VMI), Vendor Managed Replenishment (VMR) Processing Electronic Data Interchange (EDI) orders
May include some or all of the following:• Up-sell/Cross-sell• Video/Audio on Product
Info.• Track n Trace• Dedicated Customer
Focus Teams (CFTs)• In-depth data visibility• Access to customer’s
systems
May include some or all of the following:• Product training• One product catalog
across multiple division
• Strategic collaborative initiatives with customers and business plans
• Multilingual 5
Bridging Connectivity to Collaboration
What Level of Collaboration Do We Have with Our Customers?
CUSTOMERS’ PRACTICAL CO NSIDERATIO NS
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Business Capability Gaps/Pain Points MDD PHARMA CONS
Contract Price File Avail Y X 5 X Y - Top 10ASN Y Y 4 X X - Can use itDisplay Images and rich content in Product Catalog Y Y 2 X E - Existing capabilityePayables = automation of cash apps and 820's Y 5 X 6 X n/a - not necessaryCredit card processing for all E channels X Y 2 XImplantable Device Supply Chain (PPI) GHX offering Y 3 Y 3 Y 2 2013 PriorityContracting Solutions ELOC and Notifications X Y 3 2014 priorityOrder Entry - Portal (Simple Order Entry Platform) E 1 Y 1 EScalable ePlatform Y Y 1 Y 1Scalable EDI replatforming option Y 6 N/A EeInvoicing E Y 2 Y 6E-IFU Y 2 X 7 N/AMobile solutions for Order Entry inventory and consignment mgmnt E/Y 4 X 8 YShipment tracking via portal (link to carrier for POD) X Y 1 X 5Cross Sell/Upsell X X YReporting - Purchase analysis, allocation qty and consumption, cut reporting X/E Y 4 X/E 7Tier/Pallet Recommendations EOQ economic order qtys X N/A Y 3Return Auth and OS&D w Link to DC Dispute X X 6 Y 4Online Support Live Chat Y X 10 YConsolidation of DTC/B2B to single platform E&N/A N/A Y E is for Vision CareCross Sector Businesses (ie McKesson) X X 8 YSuper intelligent truckload build - Substitution/Tier Pallet if their product is not there you recommend a smart substitute based on your COT or past buying habits N/A N/A Y
• Mobile Platforms• DTC integration • CC Payments• X-sector Orders• Save & Subscribe
Capability Roadmap – Web Portal Aug 2012
Orders Intake
Data & Analytics
Sales/ Order
Inquiry & Status
Invoice/ Payment
•Product Catalog• Basic order history reporting, Purchase analysis
• Cut Reporting•CPSIA – Compliance Reporting
•EDI (810, 820, 812) & eInvoice & ePayable CC (MD&D)
•Order Status (Batch) via Phone, Email and B2B Portal
•Shipment tracking linked to carrier• Real-time Status updates• Email status notification (push vs. pull)
•eInvoice•ePayable•Return Authorization linked to Dispute Mgmt.
• Strategic Customer Programs (loyalty programs)
• Tier/Pallet Order Recommendations
• Multi-lingual • Integrated Sales reporting
• On-line Chat
Strengthen Customer Trust: make it easy to do business with J&J and enhance the customer experience while ensuring a safe and secure
supply chain
• CC Acceptance (Cons)
• Debit Memo posting
• Mobile access using Internet• DTC leverage opportunities• Real time pricing (Bracket/ Promotions)
• International Affiliate Order
• B2B Portal (Gateway/ELMO, POL, ISA, VisionCare)
• Manual (Phone, Fax, email)• DTC (3rd party/CC)• Business on Behalf• List Price • International Trade Order
• Allocation qty & Consumption reporting
• Product Availability (ATP)
Now (2012 – 2013) Later (2014- 2016) Future (2017-2019)
•Link to approved images and rich content
• Up Sell & Cross Sell – New Item launch
• Customers of Distributor Access
• Linkage to internal brand sites
• Ratings/ Reviews
Messaging/Marketing
•Broadcast messaging
•X-sector Platform ? – GXS/GHX/Crossgate/SI
Capability Roadmap – EDI & GDSN Aug 2012
Orders
Invoice/ Payments
Order Status
•810 (Invoice)•820 (bank Payment)•812 (Credit/Debit memo)
•945, 947, 944, 940 – Internal WH Movements•852, 830 – DC to Customer DC and Customer Product movement
• Carrier (214, 204)• 870 • 856 (ASN)
•860 Automatic PO Change• 861 Reverse ASN (Receipt Discrepancy)
• Carrier status and ASN linked to B2B portal
• Debit Memo posting to B2B Portal
Strengthen Customer Trust: make it easy to do business with J&J and enhance the customer experience while ensuring a safe and secure
supply chain
• Eliminate redundant Data Warehousing of 852 & 830 Data across Functions
• Sterling/GHX/wM•EDI 850/855 – • 816 – Customer Locations•867 – Military rollup•879 - Pricing
• cLect off of Mainframe
•
Now (2012 – 2013) Later (2014- 2016) Future (2017-2019)
•Price Synchronization
Data Transfer
• VAN/AS2 Communication•GDSN via One Sync (product attributes)
• WERCS (manual)
Inventory Movements
• Improve Forecast technology – SNC?
•Cross Sector Customer Collaboration
Capability Roadmap – CPFR, VMR, VMI Aug 2012
VMR/VMI
CPFR
Data & Analytics
• Store Level Data from few customers
•Receipt of 830 & 852 into APO and ISIS
Brio, ISIS, BW
•Better tools to analyze POS data from Customer
• 830 integration to demand Planning
• Improve Forecast technology – SNC?
• Cross Sector Customer Collaboration
• Eliminate redundant Data Warehousing of 852 & 830 Data across Functions
Strengthen Customer Trust: make it easy to do business with J&J and enhance the customer experience while ensuring a safe and secure
supply chain
• Planning via Manugistics, Customer Systems,
• POS Data from Customer
Now (2012 – 2013) Later (2014- 2016) Future (2017-2019)
OrganizationS&OP & Demand Planning
eCapability Roadmap High-Level Overview
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Point of Use
Hospital ERP
MobileCabinet
RFID
Alternative Devices
All MD&D Demand Globally
Pharma
Consumer
VMICPFR
ENGINE
Order TypeZORZDEL
US = GHXLA = VAN
GHX
3rd Party(Sterling)
3rd Party(Sterling)
EDI
Auto Fax
Web Portal
Manual Direct Orders
3rd PartyJ&J Portal
MicrositeMicrosite
E-IFU
Manual Converter
FaxEmailExcel
SAPBack to Basics
WMS TMS
CCI Xrds
MDM GS1
APO SFA
TPM CRM
852
QA Document Mgmt. Sys
2012 2018
Business Intel.
11
2018
HCS MD&DCustomer
Order
EDIWEBGFAX
MD&DSAP
VMI
DePuy Ortho GHX/EDI PRMS
2012
Mob
itor
GH
XMob
ile
2012
LFS Customer
GXS
GHXJDE
EDI
GFAX
GHX MemberEDI Outsource/GHX
GHX PortalGFAX
2015
Decision Point?
GHX Model
2015LFS
Back to BasicsSAP
MD&DBack to Basics
SAP
2012 2018
Order/Inventory Transactions
Consumer Cust EDI Order
Gen Tran Mainframe
Web MethodsELMO Order
JDA/VMR Orders
Consumer SAP
Consumer
EDI On Sterling SI ELMO on SAP PortalVMI/CPFR on JDA
B2C Archway integration w/SAP
ConsumerBack to Basics
SAP2018-2020??
Alt. DeviceMobileCabinet
RFID
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13
CLS Web Strategy
Proposed Roadmap
• Adopt a strategy to migrate the highest risk functionality off the current technology platform first
• As functionality is migrate off current platform apply the most appropriate technology solution to maximize efficiency and lower future risks
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Current State
16
Future State
17
Harmonized Customer
Experience
Best TechnologySolution –
allows flexibility
Short Term Proposal
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Build this first3 Sector Core CapabilityAddresses highest risk
functionality
Johnson & Johnson Health Care Systems inc. Confidential & Proprietary InformationSubject to ongoing Legal and Regulatory review. For Internal Use Only. Not for Distribution.
Next Steps:
1. Is our scope clarified?
2. Are our capabilities prioritized?
3. Group the larger list of capabilities (some are technology focused) on slide 6 into larger groups
4. Continue to work on, and enhance, the Capability roadmaps
5. According to our milestones, we need to define the future state processes and organizations for these capabilities. How can we best achieve this?
6. Will these capabilities now address our current pain points, gaps, and customer experiences?