Technology Newsmaker Q&A: Warren Smith
Like this article? Sign up for our enews blasts here.
WHAT ARE THE MAIN BENEFITS INFOR CAN OFFER TO AFTERMARKET PARTS DISTRIBUTORS?
We are industry-specific. We have specific functionality designed for the automotive aftermarket requirements. That might mean, for example, demand planning for advanced forecasting. We have additional data contained within the database that can meet, for example, global requirements. We offer the ability for companies to maintain design control though product lifecycle management. We offer the ability to meet industry specific requirements such as Internet parts ordering and the PIES standard for product information exchange, which are part of lifecycle management. Overall, meeting those industry-specific requirements, as well as the EDI capabilities for aftermarket.
WHAT IS YOUR PROCESS FOR UNDERSTANDING THE INDIVIDUAL NEEDS OF EACH CLIENT?
We first take the industry requirements, and we gather that from our participation in, for example, AASA and AAIA, among other industry trade groups. That is the first step, so now we understand where industry is headed. Then, we do a deep discovery with the customer. We have a value engineering process where we will meet with senior-level executives. Typically that might be two hours, or it might be a day. We meet with the executives to understand the business goals and objectives. What are they trying to accomplish big picture? Is it profitability, growth, internationalization, improving operational excellence? If it is a publically held company, that often ties very closely with their investor analysis.
We do a lot of research before we go in to talk to a customer so we really understand what their position is in the marketplace. If we can get a handle on their financials, we’ll also do financial comparisons for them as well. For example, what are inventory turns as compared to the industry. So we’ll get all that detailed information so we’re armed and ready to talk intelligently to the senior execs. Then we’ll take their lead for recommendations on who in the organization are the folks responsible for these key business areas. For sales growth, we’ll perhaps be talking to a VP or director of sales. If manufacturing oriented, we’ll talk to a VP or director of engineering. We will tie their actions, their goals and objectives, to the corporate goals. Sometimes we find that they are not quite aligned. For example, manufacturing folks aren’t quite as tied together as senior execs believe they are.
Once we do that, then we’ll start getting down into the processes. This can take a few weeks. Normally, we’ll try to go in and do this fairly quickly, and then if a customer wants to do more, we can. We’ll get into the processes, how they are designed to meet those requirements. And then the next and final step is tying the software to meet those goals and objectives. Then we’ll sit back with the senior executives and tie together what the software can do and what the value is, and it is much more than just an ROI.
ROIs are oftentimes misleading. If I take a look from the outside and say, “We can change process X and get you Y savings,” that number is not believable. What we do is we go back to the client and say, “What do you think you are going to save if you are able to achieve this process improvement?” They have to settle that internally. It is their numbers, and we help decide if it is the right place to invest. And not only is it specifically the software in which to make the investment, but where do you focus on the implementation? What are those areas of the software that need deep implementation, and what are those pieces of the software where only a minor influence is needed to meet those goals and objectives? We end up with a truly focused approach for the business.
WHAT ARE SOME OF THE MAIN TECHNOLOGY CHALLENGES INFOR FACES AS A GLOBAL COMPANY?
It is really not about the technology anymore. The technology has almost become ubiquitous. It is an Internet world. Companies like more loosely coupled solutions — the ability to turn on, turn off functionality, the ability to work in real time no matter where they are around the globe. But those things are pretty straightforward. Within the Infor environment, we offer a number of different technologies to meet customers’ desire. For example, we have customers that may be wanting the IBM iSeries, and we have solutions to meet that. We put the solution set for the aftermarket together based on that. I have other customers that are heavy on the Microsoft environment, they like that low cost of ownership. And we have expertise in that area as well. Other companies that like the UNIX environment, and we have a way to meet those needs as well. The processes and the ability to support those markets are all the same. So it’s really not as much about the technology. Oftentimes today, we don’t find IT directors or chief information officers talking about technology. They more often are talking about the business processes that they can support. Fifteen, 10, even five years ago you could find CIOs that were talking technology. Today, it is a chief business process officer, and they are really focused on the business processes. The technology changes so quickly, that you don’t want to couple yourself to a specific technology. Being able to be flexible and changing and evolving as technology evolves is a smart move.
WHAT COUNTRIES OR CITIES DO YOU THINK OFFER THE BIGGEST POTENTIAL FOR TECHNOLOGY ADVANCEMENTS?
We’ve got development centers around the world. We still find the US still very strong in the software market. They still generate the brightest and best students out there for software technology. We still educate the world in that area. We find Netherlands very strong. We have a development center in Barneveld, Netherlands, about 45 miles outside of Amsterdam. There are very good, creative people there. Germany, is very creative especially in automotive market, because it has been a center of the automotive market. We have a development center as well in India that focuses more on the raw coding side of business.
INFOR IS WORKING ON AN INTERNET PARTS ORDERING SYSTEM. CAN YOU TELL US MORE ABOUT THIS AND WHEN IT MIGHT BE READY TO LAUNCH?
We don’t have a specific launch date; we tend not to provide expected launch dates until we are very close to completion. But it is in progress and it will be tied into the Infor ION intelligent open network environment. It will be part of the core fabric that we use for communications between applications. It will be an embedded solution versus and add-on application.
Smith is a business process/strategy and automotive industry consultant, responsible for recommending and selling business ERP and Supply Chain solutions within the Infor Software Solutions portfolio, which are aligned to the client's strategic business goals and initiatives resulting in a high return for the client on investment. Responsible for developing relationships with senior customer leaders (C-Level) and communicating Infor's full business solution portfolio methodology. Leveraging my 20 years as a senior business executive in a global Tier 1 automotive supplier with global business responsibilities. Product expertise in ERP Baan/LN, SyteLine PREVIOUS: Business Process Architect - Affinia Group Business Process Re-engineering / Strategic business analysis and design. Baan, BPCS and multiple ERP solutions background IT Director (CIO) - Victor Reinz Division -Dana Corp. Responsible for all IT business operations of a $500mm organization - annual IT budget of over $3 million. Reported to the division president - Global Engine components manufacturing - Tier 1 Automotive - Manman software, EDI, manufacturing, business operations. Delivered year over year process improvement and cost reductions with IT costs of 1 percent of sales.
Specialties
Executive level:CxO-level, (15+ yrs) Sr. leader & visionary of innovation/advanced business solutions. Business Expertise: Manufacturing, sales, engineering, Supply Chain Management, WMS, Demand Management,ERP, CRM, Financial management. ERP software expertise - Baan/LN SyteLine, SupplyWEB Industry expertise: Discrete/ complex manufacturing, automotive Tier 1 supply 18+ years, automotive, Specialty Vehicle and motor vehicle aftermarket. Memberships in AAIA, SEMA, AIAG and SME
About the Author
Krista McNamara
Krista McNamara is the former Editorial Director for the Vehicle Repair Group at Endeavor Business Media. She oversaw five brands — Motor Age, PTEN, Professional Distributor, ABRN and Aftermarket Business World. She worked in the automotive aftermarket industry for more than 15 years.