The Automotive Journey Into the Cloud

The Automotive Journey Into the Cloud
OESA CIO Board
December, 15, 2015

Emtec, Inc. Proprietary & Confidential. All rights reserved 2013.
Cloud Service & Deployment
Software As A
Service
Platform As A
Service
Infrastructure As
A Service
• Single Tenant
• Multi Tenant
• Toolkit to build and Operate Software
• Public – Application Customer Control
• Private – Software provided
• Private ( Firm or 3rd Party)
• Public ( Sold by a Company)
• Community ( Firm or 3rd Party)
• Hybrid ( Combo of any above)

Three Recent Automotive Journeys in the Cloud
The Good, The Bad, and the Ugly

Automotive Supplier #1
Key Considerations:
MES systems integration,
Cloud Dependability,
Amazon Cloud vs other
Need for immediate cost reductions
Key Considerations:
Fill a GAP(India Plant -- QAD),
Peripheral Systems (HR, Quality, EH&S)
Infrastructure Cloud

Overview of Results
The Good
• Over $25 million in investment savings
• Achieved total IT Footprint within 15
months – transitioning from 123
applications to 23
• Vendor partner – Experienced Business
staff
• Automatic capacity increase when
required by user demand
• Smaller SaaS applications integrated well
with core systems
• Took the time to plan
The Bad & Ugly
• Business process weaknesses. Needed more
time on workshops
• Eastern Europe and Asia connection latency
• Homegrown MES systems should have been
replaced
• Data mapping from old legacy systems
• Resistance from Old School IT Staff
• No such thing as an “Automotive Template”
• Control over Outside Vendor Staff
• Skill Set of Outside Vendor Staff
• Contract Negotiations

Automotive Supplier #2
Key Considerations:
Relatively simple manufacturing process,
Total Re-design of Business Processes
Positioning for Growth
Improved Demand Forecasting

Overview of Results
The Good
•Manufacturing Module better than
expected from SaaS
•User training -- great user
experience, intuitive modules
•Immediate Mobile capability
•Accelerated Implementation
•Small scale SaaS applications
effectively integrating with core
systems
The Bad & Ugly
•Reliance upon Product SI Team
•No such thing as an “Automotive”
Template
•Moved too rapidly through
Workshops and Discovery Phases
•Internal SMEs not consistently
engaged and not capable of larger
vision
•Customer Staff augmentation
required
•Contract Negotiations
•Need for Shadow SI Team

Technology Supplier -- Automotive
Key Considerations:
Invest in Innovation – not hardware
Capacity flexibility to experiment
IT Staff to enable new product Development
Key Considerations:
Continuous Best in Class Updates
Total Mobile and Web Access
User Experience
Full set of Collaboration Tools

Overview of Results
The Good
•Fully engaged user community
identifying needs
•Methodical selection process
•Business process improvement
prior to selection process of ERP
application
•Cross functional SME effort
•Taking the time to Plan
The Bad & Ugly
•Start and Stop delays
•A critical core functionality not
directly available in SaaS versions
•Existing Third Party Infrastructure
Host Provider – inconsistent service
and support

Automotive Industry
IT and Related Business Process Trends

IT Trends
•A number of disruptive technologies have come together to change the way
people behave and expect to interact at home and at work
•Businesses are having to respond and identify new opportunities for their
customers and their employees
Appification
Collaboration
Cloud
Internet
Big Data & Analytics

Emtec, Inc. Proprietary & Confidential. All rights reserved 2013.Emtec, Inc. Proprietary & Confidential. All rights reserved 2013.
Trends in Automotive Space -- Cloud
•All Market Leading Application Vendors are shifting their R&D
Resources toward SaaS or some other form of Cloud.
•Smart Machines, Advanced Machine Learning, Industrial Robots,
Internet of Things requiring larger infrastructure capacity
•Algorithmic BI – Relationship & Predictive Analytics requiring real time
data and fully connected systems
•Mobile Everything & User Expectations to work remotely, perform key
reviews and approvals while traveling – Web Interface requirement
•Cloud Technology allowing small & medium size companies IT capacity
and back office services equal or better than larger companies

Trends in Automotive Space -- Cloud
•Significant use of SaaS for “Peripheral” Applications as compared to
core ERP and MES Systems – Human Resource, CRM, PLM, Quality,
EH&S, Forecasting, BI.
•Companies realizing significant short term savings and increased
computing capacity in moving infrastructure to 3rd Party Private Clouds –
Infrastructure as a Service
•Mid size Automotive Suppliers beginning to perform ERP SaaS studies
but will primarily hold off on final decisions until SAP provides a good
SaaS solution. Infor, Oracle, QAD, and Plex aggressively pursuing
Automotive

Avoiding the “Bad” and the “Ugly” in Cloud
Key Questions

Key Questions to Ask Before SaaS
•What are your firm’s key Business Processes which define the
business and keep it competitive? For example, Inventory
Management, Procurement, Financial Consolidations, Supplier
Management, Product Development …
•What is the corporate infrastructure and application footprint and
strategy? Need for Outside Viewpoint?
Process & Infrastructure

•What are the skill sets of the IT Staff ? Are they prepared to manage
outside resources ?
•“Millennial Factor” --Where can Mobile Applications and Multiple Device
usage benefit the firm and solve known issues?
Collaboration
Appification

•What are the needs and wants of your Marketing and Sales Teams?
•What new requirements are your Customers requesting in terms of
information and data management?
•How many IT Innovation Projects are planned or underway?
•How do teams collaborate? What tools and applications are used?
Big Data & Analytics
Collaboration

•Do resources exist to perform effective and extensive contract
negotiations ?
•What are my current application vendors spending their R&D money on?
How soon will I have to change or be left behind?
•What changes are my competitors making to their applications and
infrastructure?
Internet

•What internal Business Groups require the most customizations in
the present applications?
•What is the total cost of ownership of the present system? Include
Opportunity Cost.
•Do you have time to plan the strategy?
Collaboration

•Where does Real Time Data exist in the present system? Is there
a Big Data Strategy?
•When will the Manufacturing groups require more infrastructure
support for smart machines?
•Is there an exit strategy from SaaS?
Cloud

Gartner Insights
On The Horizon

Gartner: Top 10 Strategic Technology Trends for
2016
•The Device Mesh: Sensors embedded in technologies and devices
which will work together and share information, leading to greater
insights into manufacturing patterns, daily life patterns …
•Ambient User Experience: Using the sensors and devices to gather
contextual data along with “direct” data, to better frame the information.
Smart cars one example.
•3-D Printing Materials: Tesla building engine parts and Space X
creating rocket parts.
•Information of Everything: By 2020, 25 billion devices will be
generating data on almost every topic. Making sense of this data will be
the prize.

2016
•Advanced Machine Learning: Machines and applications will be able
to collect and learn from information collected, allowing applications to
perform initial analysis of data.
•Autonomous Agents of Things: Robots mastering and surpassing
human tasks. Autonomous cars is one example.
•Adaptive Security Architecture: Tools going on the offensive to
prevent security breaches, using predictive modeling to protect
themselves.
•Advanced Customer Architecture: Making technology mimic human
brains. Facebook’s Deepface facial recognition technology.

2016
•Mesh App and Service Architecture: Apps built to be plugged together
with the value of the combination much greater than the sum of the
parts.
•Internet of Things Architecture and Platforms: The providers of
Internet of Things platforms are fragmented and will work toward a
better ecosystem where data is shared more easily.

The Automotive Journey Into the Cloud

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