IT Solution for VWSachin Arora

Company Profile

Volkswagen – German car maker having global presence

Employees: 370,000

Production output: 12,500 cars per day across globe

Brands:

VW

Audi

Bentley

Many more ..

Projected YoY growth: 20%

Agenda

Current IT Infrastructure

Current IT Challenges

Proposed Solution

Benefits of Proposed Solution

Growth .. At tremendous rate over the last 4-6 years

Acquired some very strategic brands.

New entities strategic, but running in pre-merger

mode

Separate business functions

Manufacturing

Sales, Marketing, Post Sales

Financial Management, etc

Separate IT infrastructure

Current IT Infrastructure

HR

CRM

ERP

Data Warehouse

Data Mart

Data Mart

Legacy Applications

Data Mart

eMail

HR

CRM

ERP

Data Warehouse

Data Mart

Data Mart

Legacy Applications

Data Mart

eMail

HR

CRM

ERP

Data Warehouse

Data Mart

Data Mart

Legacy Applications

Data Mart

eMail

VW Skoda

Audi

IT challenges

High IT cost

Hardware, datacenter, power

Software licenses

Human capital

Complex IT Infrastructure

Inefficient business planning

Longer time-to-market for new products/initiatives

Lot of Repetitive work

Inefficient customer, supplier, partner interaction

Divided production IT setup - resulting in high raw-

material cost.

Architecture Vision - Objective

Reduce cost on IT – HW, SW & HC – From 5% to 3% of revnue.

Simple, scalable, effective IT and business architecture

Robust Business intelligence – Effective cross brand reporting

Single window to reach customers, dealers, channel partners.

Efficient IT platform to support best-in-class Supply chain management.

B2B integration with suppliers

Green IT, Reusable IT

High level Business functions

– Common Denominator

People, Payroll Management

Manufacturing

Demand Forecasting – how much and what to make?

Supply chain Management – how to make and deliver?

Financial Management

Service Management

Sales, Marketing, dealer/vendor management

Business Intelligence

How to achieve low TCO?

Unification of Business functions resulting in:

Reduced raw-material cost

Better reporting infrastructure

Efficient utilization of Human capital across the

organization

Many more ..

Hardware virtualization resulting in:

Reduced Software licensing cost

Better resource management

Idle < Work

Many more ..

Need for change - App

Stack

We did a review of entire stack of applications that the disparate systems have.

Most of them written as old as 15 years – outdated practices

Not flexible to cater global marketplace, following best regional practices

Constraint based planning? No..

High cost to maintain integration between different business functions.

Upgrade cycle too cumbersome, time consuming and costly.

Over all – High TCO and low ROI

Need for change - Continued..

HR application – PMS and Lawson Payroll used by VW are scalable and can be integerated.

The Demantra Forecast used by Skoda has the

potential and flexibility to be integrated.

These independent systems can be integrated with rest of proposed stack using Oracle SOA

suite.

Consolidation .. Oracle Application Stack

Oracle E-Business suite:

Supply Chain

Management

Financials

Oracle’s Siebel for Customer

relationship Management

VW existing application stack

PMS and Lawson Payroll

Demantra forecast System

Consolidation – contd.Fusion Middleware and

Database Stack

Oracle SOA Suite

Oracle Golden Gate

Oracle Data Integrator (ODI)

Oracle Identity Manager

Oracle Business Intelligence Enterprise Edition

Oracle Database Machine –Exadata X2-2

Partitioning, Data compression

Business stack mapping

Business Function Product

Sales Oracle Siebel CRM

Marketing Oracle Siebel CRM

Services Oracle Siebel CRM

Demand Forecasting DFS (Skoda)

Supply Chain

Management

Oracle EBS

Financial Management Oracle EBS

HR and Payroll PMS, Lawson Payroll(VW)

Business Intelligence Oracle BI EE

Technology Stack mappingFunctionality Product

Database (consolidated for OLTP and warehouse applications)

Oracle Dabaase Machine –Exadata X2-2

Archival and compression in DB Partitioning, HCC compression

Monitoring App, DB, storage stack Oracle Enterprise Manager

Platform to write reusable Web services for inter-application intergeration

Oracle SOA suite (part of Oracle Fusion middleware)

Change data capture Oracle Golden Gate

Transformation and loading for BI,warehouse requirements

Oracle Data Integrator

Business Analytics Oracle Business Intelligence

Identity Management Oracle IM

From Current IT Infrastructure

HR

CRM

ERP

Data Warehouse

Data Mart

Data Mart

Legacy Applications

Data Mart

eMail

HR

CRM

ERP

Data Warehouse

Data Mart

Data Mart

Legacy Applications

Data Mart

eMail

HR

CRM

ERP

Data Warehouse

Data Mart

Data Mart

Legacy Applications

Data Mart

eMail

VW Skoda

Audi

New Infrastructure – Physical

Users (Browser

or thick client)

Load

BalancerApplication Tier Database Tier

New Infrastructure – Logical

Business layer

CRM

EBS – SCM, Financials

Demand Forecasting

HR and Payroll

S e

c u

r it y

Bu

sine

ss

Inte

llige

nc

e

Physical Layer

Application servers

Database Machine

Additional storage

HR Admin Fin Admin Factory Admin Employees

Management

Users

Supplier

Dealer

iStore

OGG

ODI

OBIEE

DMZMZ

Why Exadata? Extremely powerful machine – 96 cores, 1,152 GB Memory, 5 TB

smart flash cache, 224 TB disk storage, 40Gb/s Infibands links.

It virtualizes all the database requirement from various application

Comprehensive enough to handle both OLTP and warehouse requirement

One stop solution to cater enterprise wide database consolidation

Faster time to market.

Key Features

Smart scans – Intelligent Storage server

Hybrid columnar compression, typically provides 10x or higher compression

Smart flash cache – intelligent data caching – providing data at the speed of buffer cache. Exadata

Integration of various functions

of Oracle apps

EBS modules can talk with its own

module seamlessly.

Ex: SCM can communicate with

Financial module.

To communicate with business

function outside EBS, it needs SOA

architecture to integrate.

Home written, third party apps can

be integrated with SOA.

SOA

EBS

CRM

HR & payroll

DF

Business Intelligence BI collects the data across

different business functions

The data is extracted using Oracle Golden gate.

Using Oracle ODI, loading and transformation happens

BI will use Exadata machine as its DB storage and query processing.

OBIEE - the platform to generate complex cross function reports,

BI

CRM

HR & Payroll

EBS

- SCM

- Finance

B2B Integration with Supplier

Why?

• Real time data communication with Suppliers for speedy

order management.

How?

• Oracle B2B(SOA platform) can be effectively used to build

web services to communicate both ways from Oracle ERP

(Supply chain module) to third party supplier’s legacy/erp

applications.

• Leverages EDI and XML-based industry standard protocols

SOA Enterprise Bus

Supplier

Role based provisioning - OIM

User provisioning is a critical problem, dealing with how to give users access to resources.

OIM assists with access management, role management, directory services, entitlement management and more.

OIM Connectors are pre-packaged solutions that integrate target applications with OIM

OIM connectors are available for Siebel, EBS

(Not just)Monitoring – Oracle Enterprise Manager

Capable of monitoring, resolving the complete stack from disk to application

Manages Oracle applications and technology from a single console

EBS, Siebel etc

Single solution for Fusion Middleware 11g management Oracle WebLogic Server

Oracle SOA suite & Service Bus Oracle Coherence

Oracle Identity Management Suite

Oracle Business Intelligence

Oracle WebCenter

Best database Management

Critical metrics

Diagnostic and repair

Business Continuity

Oracle Data Guard is

failover solution at the

Database layer

The database machine can

be of same or trimmed

down of primary

Application server could be

same or trimmed down of

primary

Failover time < 10 mins

How to move to new?

It’s a journey – not a switch

Entails Costs, Effort and Time

Phased or Big Bang – Phased!!

Costly but safe

Business functions to move 1-by-1 depending

upon their criticality and interdependence.

Business continuity must be maintained all

throughout.

1st Phase – Need of the time

Important to integrate important functions early to reap post-merger benefits

Oracle SOA suite again for rescue.

This gives business to fulfill short term goals

Management is able to see some sort

aggregation at presentation layer.

Way to Integration

1- Financial and Payroll

2 - Supply Chain Management, Supplier Integration

3 – CRM – Sales, Marketing, Services

4 - HR

5 - BI

Time: 24 months

Common practices that should be

followed

Core business functions first, dependent later

Thorough business, operational, functional and performance testing

Implementing from low impact geography to

high impact regions

Pay-as-you-grow – both Hardware and Software

licenses