Direction of Global Enterprise Architecture. Enterprise Architecture Practitioners Conference

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1 Direction Global Enterprise Architecture Takashi Kawakami General r Enterprise Architecture Nissan Motor Enterprise Architecture Practitioners Conference 1

2 AGENDA 1. Company Overview Business Pns 2. IT Strategy 3. Global l Enterprise Architecture t Program 2

3 Company Overview Revenue: 85.7 billion dolrs, COP: 7.9 billion dolrs Employees: 170,000(World Wide) Product Sa: 3.6 million units (2005) UNITED KINGDOM Europe SPAIN 541 IRAN EGYPT KOREA CHINA JAPAN TAIWAN THAILAND Japan 842 North America UNITED STATES 1,075 MEXICO KENYA SOUTH AFRICA, MALAYSIA GOM 1,111 PHILIPINES INDONESIA BRAZIL FY2005 Actual [Thousand Units] 3

4 Mid-Term Business Pns NRP NISSAN 180 NISSAN Value-Up Revive our company Complete revival on track for pritable growth Value up with sustained performance Pritability in FY00 Operating prit margin>4.5% in FY02 50% debt reduction by FY02 Commitments +1M units by 9/05 8% operating prit margin 0 automotive debt 4.2M units in FY08 Top level operating prit margin ROIC average 20% 4

5 AGENDA 1. Company Overview Business Pns 2. IT Strategy 3. Global l Enterprise Architecture t Program 5

6 IT Organization Four locations supported worldwide: Japan, North America, Europe, GOM 1,100 employees Europe Japan North America 230 GOM / Subsidiaries 310 Affiliated organizations Three datacenters worldwide (Japan, US, UK) Global l Development Center (Japan) Global Strategic Vendors 6

7 IT Benchmarking in 2005 Position Key Findings High Effec ctivenes ss Low Nissan Europe Low Nissan Japan Efficiency World Css Nissan North America High Complexity could hinder IT ability to sustain future business growth High application management costs are driven by application and infrastructure complexity Limited centralization IT ptforms and minimal use internal service level agreements Under-investment in the future technology (architecture strategy) 7

8 Global Nissan IT Strategy: -Introduction B.E.S.T. Program- 8

9 B.E.S.T. Program Structure Engineering SCM MS GRM Time to Market Productivity Production Cost Logistics Cost CS Improvement Sa Increase and Volume Growth Productivity and Business Efficiency BE EST Prog ram Business Alignment Global Investment Prioritization, New Accountability for IS Enterprise S l i T h l Architecture Capitalize Information Asset Application Rationalization Promote Reuse and Appl. Standardization Selective Sourcing Outsourcing Restructuring Insourcing optimization GSE usage expansion Global Vendor ment Technology Simplification IT ptform Standardization Infrastructure Consolidation Seams and Secure Network Infrastructure 9

10 AGENDA 1. Company Overview Business Pns 2. IT Strategy 3. Global l Enterprise Architecture t Program 10

11 Issues and Key Actions for E Issues Information Redundancy Insufficient visibility on Information assets Excessive focus on local specificities Diversity H/W S/W tools Key Actions Capitalize Information Asset Application Rationalization Promote Reuse Application Standardization Major KPI Number Total Applications Application Running Cost Number Reusable Service 11

12 Enterprise Architecture e Roadmap ap Optimized d Measured Defined Opportunity Finding Initial Stware Factory Common SOA Portfolio Optimization i / Rationalization Information Capitalization 12

13 Information Capitalization Base map is a static representation business functions commonly used in the vehicle manufacturing industry. MANAGEMENT Enterprise PURCHASING SUPPLIER RELATIONSHI P QCTK Performance Purchasing Define purchasing strategy manage supplier panel PURCHASIN G SUPPLIER Build sourcing gpn and select suppliers RELATIONS HIP supplier contracts supplier chargeback Alliance Base map GENERAL SUPPORT administrative services Define Enterprise strategy shareholders external retionships ENGINEERING OF PRODUCT, PROCESS SERVICES Support technical data management for work in progress product / process / services INBOUND LOGISTICS QCTK Performance inbound logistics Pn and manage inbound parts logistic routes Determine parts INBOUND requirements LOGISTIC S parts orders for optimal transportation pnning and shipping CKD empty packages parts inventory and allocation to pnts, production lines workstations SALES Support Knowledge ment fixed assets Consolidate enterprise financials Support design and digital validation QCTK Performance Engineering g MANAGEMENT cost controls and budget Quality Release technical data for product / process / services ENGINEERING OF PRODUCT, PROCESS SERVICES MANUFACTURING QCTK performance manufacturin g manufacturin g control and execution Support manufacturin g maintenance reliability manufacturin g documentati ti on MANUFACTURING firm production schedule forecasted production schedule QCTK performance sa Forecast sa Pn and schedule commercial supply Support physical product / process validation OUTBOUND LOGISTICS QCTK performance outbound logistics Pn and manage outbound logistic routes QCTK development product and services Conduct Research enterprise BOM for parts, processes and resources AFTER SALES SERVICES QCTK performance after sa services Recycle vehic and components services operations inventory vehic and parts for distribution OUTBOUND LOGISTICS Sell to company company sa contract SALES Invoice Transport and deliver products delivery orders for optimal transportation GENERAL SUPPORT real estate accounting Support warranty AFTER SALES SERVICES orders buy-back Organise, monitor and motivate the dealer network cash Provide invehicle services Support repair maintenance DEALER OPERATIONS QCTK performance DEALER dealer network OPERATIONS dealer's operations (DMS) Sell to final customer Support dealer network Exchange new used cars Finance dealer Network IS/IT QCTK massproduction product services Define products needs Define services needs Report financial performance product pnning PRODUCT STRATEG Y CUSTOMER RELATIONS HIP QCTK performance customer retionship Understand long term market expectations CUSTOMER Measure customer satisfaction RELATION SHIP campaigns customers and potential clients PRODUCT STRATEGY MARKETING Conduct QCTK short-term performance market marketing research Define Develop marketing MARKETIN marketing strategy and pn for product G targeted fering customers Communicate product fering Support environmental compliance and manage security safety human resources 13 Business Functions level 1, 80 Business Functions level 2, shared at Alliance level Level 1 Level 2 13

14 To Analyze Application Inventory, Coverage, and Redundancy Redundancy COVERAGE Of APPs INVENTORY by LEVEL2 14

15 To Understand Data Sharing Fond de carte fonctionnel des Systèmes d'information Functional Base map Information Systems MANAGEMENT MANAGEMENT Piloter l'entreprise Piloter l'entreprise Enterprise Enterprise Définir Définir stratégie stratégie d'entreprise d'entreprise dentreprise Défine Défine Enterprise Enterprise strategy strategy retions retions avec avec actionnaires actionnaires parties parties prenantes prenantes shareholders external shareholders external retions retions le le reporting reporting financier financier Report Report Finance Finance Consolider Consolider Consolidate Consolidate Contrôler Contrôler Control Control Piloter Piloter Qualité Qualité Quality Quality le le QCD QCD Développement Développement Produits Produits QCD QCD Development Development Product Product le le QCD QCD Production Production Produits Produits QCD QCD Mass-Production Mass-Production Product Product ACHATS RELATIONS FOURNISSEURS PURCHASING SUPPLIERS RELATION Mgt Support achats retions fournisseurs Mgt support purchasing supplier retion Pilotage PilotageQCDK du dumétier Achats Achats QCDK QCDK Steering Steering purchasing activity activity INGENIERIE PRODUIT PROCESS SERVICE PRODUCT,PROCESS SERVICE ENGINENERING Mgt Support de l'ingénierie Engineering Mgt support Pilotage Pilotage QCDK QCDK Ingénierie Ingénierie QCDK QCDK steering steering engineering engineering Officialisation Officialisation des des données données de de l'ingénierie l'ingénierie Engineering Engineering data data ficialisation ficialisation Gestion Gestion de de nomencture nomencture Entreprise Entreprise Enterprise Enterprise BOM BOM ment ment Gestion des données de Conception Gestion des données de Conception (P/PR/S) (P/PR/S) Gestion Gestion de de l'activité l'activité liée liée à à validation validation physique physique Work in Progress Work in Progress ment ment activities activities bound bound to to the the physical physical validation validation (Product/Process/) (Product/Process/) Conception Conception Validation Validation Système Système Conception Conception Validation Validation Process Process Conception industriel industriel (CAPE) Conception Validation Validation Service Service (CAPE) Service Pnt Pnt yout yout Design Design Validation Validation Process Process Design Design (CAPE) (CAPE) Validation Service Design Design Validation Validation Validation Recherche Recherche Research Research Conception et validation du Conception et validation du Style Style Style Design validation Style Design validation Conception Conception et et validation validation Produit Produit (CAD) (CAD) Product Product design design (CAD) (CAD) validation validation Définir Définir besoins besoins produits produits Define Define products products needs needs Définir Définir besoins besoins Define Define needs needs Mgt Support Produit Mgt support Product le le pn pn Produit Produit Product Product pnning pnning Mgt Support Service Après Vente Recycler RELATION LOGISTIQUE AMONT Mgt Support Fabrication Recycler véhicu véhicuet et composants Mgt support After Sa Mgt support Manufacturing QCDK QCDK Recycle Recycle vehic vehic CLIENT components Pilotage QCDK AV INBOUND LOGISTIC Pilotage QCDK AV components QCDK Mit Pilotage Mgt Support Logistique amont Pilotage QCDK QCDK Maintenance et et Fiabilité QCDK steering steering A.S. A.S. Fiabilité CUSTOMER fabrication Mgt support inbound logistic Industrielle Fournir des QCDK QCDK steering steering Manufacturing maintenance Provide Fournir Provide E-vehicle des e-services E-vehicle services services RELATION Pilotage QCDK logistique manufacturing Pilotage QCDK logistique reliability reliability SERVICES FINANCIERS QCDK QCDK steering steering logistic logistic documentation de Réparer, Réparer, Entretenir de Repair, Entretenir FINANCING SERVICES Pilotage QCDK retion client Repair, maintain maintain Pilotage QCDK retion client production Mgt Support Service Fin. QCDK steering customer Définir QCDK steering customer Définir stratégie d achat d achat Organiser Organiser et et gérer gérer documentation documentation technical technical retion logistique flux pièces documentation Garantie Garantie Mgt support Financing et retion et gérer gérerle le panel panel fournisseur logistique flux pièces Warranty Warranty Define Organise Organise manage manage documentation documentation Pilotage QCDK Fin. Define purchasing strategy strategy manage logistic logistic flows flows parts QCDK steering Fin. manage supplier supplier panel panel parts Mesurer Mesurer satisfaction satisfaction client SERVICES A.V. client Pilotage tôl Measure Measure consumer consumer satisfaction Pilotage contrôle contrôledes des flux flux de Financer le réseau Financer ventes de satisfaction Organiser et adapter transports fabrication Finance network Finance sa Organiser et adapter transports A.S. SERVICES pièces Manufacturing pièces flows flows steering steering Construire sourcing Organise Traiter Traiter et et suivre suivre Organise adapt adapt transport transport parts control pns, parts control Organiser pns, Consulter Mgt Support Logist. aval Mgt Support Réseau documentation de Log. récmations récmations et et incidents Sélectionner Mgt support inbound logistic Mgt support Network incidents le le fournisseur Approvisionner Approvisionner usines usines clients clients postes de travail ordres ordres de de fabrication aval Build Build sourcing sourcing pns, pns, RFx RFx postes de travail tracking tracking consumer Physically consumer Physically supply supply goods goods or or services services to Manufacturing Order Pilotage QCDK logist. aval Organise manage Select Order QCDK documentation outbound to steering outbound Pilotage Pilotage QCDK QCDK Réseau Réseau Select supplier supplier QCDK requests requests compints pnts compints pnts WS logistic logistic QCDK steering steering out. out. Network Network WS flux logistique CKD Pnifier Pnifier l'activité l'activité des des usines usines Transporter / Livrer flux logistique CKD Schedule Schedule pnts pnts activity Organiser et adapter Transport activity / Deliver Dealer Dealer Vendre Vendre au au client client final final contacts et (hors flotte) t logistic logistic flows flows CKD transports logist. aval CKD stocks comm.corporate ment (hors flotte) contacts et contrats contrats Organise adapt transport Dealer campagnes corporate commercial Dealer Sell Sell to to final final customer customer fournisseur campagnes outbound customer customer contact contact embalges embalges vides logistic ment inventory (out (out fleet) fleet) vides supplier supplier contracts contracts campaign empty empty package package campaign le le recours recoursfournisseur supplier supplier chargeback Fond de carte Base map V9.3 10/05/04 Pnifier Pnifier l'approv. l'approv. Pièces Pièces Organes Organes Schedule Schedule supply supply parts parts and and components components Mgt Support Ventes Mgt support Sa Pilotage Pilotage QCDK QCDK Ventes Ventes QCDK QCDK steering steering Sa Sa Piloter Piloter suivre l'activité suivre track l'activité commerciale track commercial activity activity FABRICATION MANUFACTURING Pnifier Pnifier programmer demande demande commerciale Pn Pn Schedule Schedule commercial demand demand Prévoir Prévoir ventes ventes Forecast Forecast sa sa LOGISTIQUE AVAL OUTBOUND LOGISTIC commandes Orders Orders VENTES SALES Reprise Reprise Buy Buy Back Back Animer Animerle le réseau réseau Animate Animate Network Network Fournir Fournirle le support support produit produit service service au au réseau réseau Support Support network network services services and and process process RESEAU NETWORK Vendre Vendre Sell Sell Facturer Facturer Invoice Invoice bourses bourses d'échange d'échange Exchange new new used used cars cars FONCTIONS SUPPORT investissements l'environnement GENERAL SUPPORT immobilisations investissements biens biens physiques physiques Tenir Tenir comptabilité comptabilité trésorerie connaissances connaissances savoir savoir trésorerie faire faire environnement, l'is/it l'is/it sécurité sécurité santé santé Gestion Gestion administrative administrative générale générale general general administration administration immobilisations investments investments fixed fixed assets assets Real Real Estate Estate accounting accounting cash cash Knowledge Knowledge Know Know how ment how ment IS/IT IS/IT l'environnement, environment, environment, security security healthcare healthcare Comprendre Comprendre attentes attentes des marché Long Terme. des marché Long Terme. Understand Understand market market expectations Long Term expectations Long Term PRODUIT PRODUCT MARKETING MARKETING Présenter Présenter l'fre l'fre Comprendre Comprendre attentes commerciale attentes commerciale CT du marché Present CT du marché Present commercial commercial Understand Understand ST ST market market fer fer expectations expectations Assister Assister communications Décider et décrire l'fre lfre communications Décider et décrire l'fre commercia commerciale commercia commerciale Assist Decide Decide and and describe Assist commercial commercial describe communications commercial fer communications commercial fer Mgt Support Marketing Mgt support Marketing Pilotage QCDK Marketing Pilotage QCDK Marketing QCDK QCDK steering steering Marketing Marketing ressources humaines ressources humaines human human resources resources 15

16 To Understand Application Interaction Source: Global EA Website [MEGA Active Content] IMPACT Diagram 16

17 To Analyze Impacts Impact Analysis What happens if an interface between applications change? Application goes down? Or upgraded? d? 17

18 Enterprise Architecture e Roadmap ap Optimized d Measured Defined Opportunity Finding Initial Stware Factory Common SOA Portfolio Optimization i / Rationalization Information Capitalization 18

19 Portfolio Optimization 4 metrics were used to capture existing portfolio. High 5 High 5 Business Value C Application B Application A A 1 D B Application C Application D Application E 4 3 Functional Quality 2 1 Application E Application D Application B Application C Application A Low High COST A : maintain B : Freeze or Sunset C : Detail Analysis D : Low Low Low High Technical Quality Build Roadmap for healthy portfolio 19

20 Result Global Application Portfolio Engineering SCM MS GRM Total JAPAN North America EUROPE High 5 5 High Busin ness Cr riticalne ess Functi ional Quality Low High Cost Low Low Low High Technical Quality 20

21 Project Review by EA Guidelines Every projects are reviewed in several development mitones based on the EA standard guideline. Application development process 0.Kick f preparation 1.Basic concept 2.Basic design 3.External design 8.After implementation Examine the scope and risk from EA viewpoint Check added value the application to the reted business Check compliance with IS strategy Check discrepancy / overp with other applications / projects Check added value the application to the reted business Check compliance with IS strategy Input necessary information (from PID) in EA repository Check compliance to EA guidelines (approval process, responsible, ) Check the alignment with IT Architecture, Security Guidelines Check consistency between PID and basic design specification Input necessary information (from PID) in EA repository Input necessary information (from PID) in EA repository Check consistency between PID and external design specification Final EA check Input necessary information (from PID) in EA repository Check k consistency between PID and results 21

22 Role Architect Architect has an important role in the system development cycle. Nissan is promoting to get TOGAF 8 Certification to every Architects as their skill training program. Users Architect Project Pn Build Operate Requirement development Portfolio optimization Project design Architecture Validation Activity 22

23 F Y 0 7 F Y 0 8 F Y 0 9 F Y 1 0 EA Cycle Whole Enterprise Architecture cycle is considered as continuous approach, in order to promote standardization. - Project Review - Update Information (repository, roadmap, portfolio) - Portfolio/Roadmap - To-Be system map Pn Build - Reference Architecture - Process 23

24 THANK THANK YOU YOU 24

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