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Life beyond UCSC – ISTM (one example) Management of Technology Seminar UC Santa Cruz Mike Ruggiero October 2007.

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Presentation on theme: "Life beyond UCSC – ISTM (one example) Management of Technology Seminar UC Santa Cruz Mike Ruggiero October 2007."— Presentation transcript:

1 Life beyond UCSC – ISTM (one example) Management of Technology Seminar UC Santa Cruz Mike Ruggiero October 2007

2 Corporate Overview October 2007 2 Overview Who am I – And how did I end up in the ISTM program What am I – My professional career, past, present, and future What’s it all about now - Seagate What the #$@$%! it got to do with you - Testimonials * For first fiscal quarter ended September 28, 2007 ** Includes interns, contractors, and agency temps

3 Corporate Overview October 2007 3 Who Am I - History Information Storage Systems - Chemistry Technician; Drive assembly and test Atari – Video games PCB test and repair BTI and LMSC – Systems Field Service Tandem Computers –Support Specialist, Hardware and Operating Systems SW –SW Developer –New Product Development Manager Sun Microsystems – Solaris Dev. Program Manager Starfish SW – Professional Service Manager * For first fiscal quarter ended September 28, 2007 ** Includes interns, contractors, and agency temps

4 Corporate Overview October 2007 4 Who Am I - History Huffman Letter Subj:Statement of Qualification for Huffman Prize for 2006 Dear Judges, As a nomine for the Huffman Prize for 2006, I must admit that my quest for higher learning can be summarized by a quote from Mark Twain, “I have never let my schooling interfere with my education”. I first attended UCSC in 1974. A transfer student, I was intent on turning my talent for chemistry and electronics into a geology degree. Sadly, my plan was to make lots of money working for the oil companies. Coming to Santa Cruz for university studies changed my fate. I quickly developed a fondness for sailing (or the glamour of adventure it embodied). At the end of the second quarter I dropped out, took my remaining funds, and went in on a three way partnership of a 36’, ocean going catamaran. The plan was to sail to Tahiti. After a year and a half of planning, practice and saving we set sail. The journey took us to San Diego where we stayed far too long, had way too much fun, and spent all our money. I was lucky; I returned to Santa Cruz and began my 25 years of immersion in the exploding information technology industry. During my absence from the university, I lived and breathed computer hardware and software in Silicon Valley. At first I worked for ISS (Information Storage Systems) as a chemistry technician making ferrous metal ingots. These were to be the core material for manufacturing disk read/write heads. After my UCSC and sailing adventures, I worked at Tandem computers for 18 years. Much of this time was spent traveling the world as a senior field support analyst diagnosing both system hardware and operating system software. When I left Tandem I went to work at Sun Microsystems as the Solaris Integration Program Manager. Most recently, I worked at Starfish Software as a professional services project manager. While at Tandem, I played many roles besides that of field analyst. These included software developer, project manager, and development manager. At one point I was a project lead for the roll-out of their world-wide remote support centers. My primary focus was the specification of utilities and processes used to implement the centers. As one of the knowledge experts to engineering, I helped develop remote methodologies (software and hardware) for isolating subsystem failures on live, mission critical, systems and networks. While at Tandem I also documented, designed, and built (stuffed the ICs and wire-wrapped all the connections) my own 6800 based computer system. I developed a rudimentary OS and a memory mapped dart score board application for the game of Cricket, which was all written in assembly language and streamlined to fit in two 8k-byte banks of ROM memory. This was a self-learning project. … As Albert Einstein said, “the devils in the details”. Based on my work experience, I know there is one key skill sorely needed in industry today. It is the ability to take a large, non-convergent problem, extract the relevant data, and massage that data into focused, convergent pieces, pieces to which solid scientific and engineering techniques can be applied to find optimal solutions. I believe my experience here at UCSC has furthered my ability to do exactly that. I leave UCSC with a new lease on my career. It has not been just schooling; it has been a truly educational experience. Michael Ruggiero * For first fiscal quarter ended September 28, 2007 ** Includes interns, contractors, and agency temps

5 Corporate Overview October 2007

6 Corporate Overview October 2007 6 Seagate: Storage Leader Seagate is the world’s leading provider of hard disc drives –Q1 FY2008*: 47.2M drives shipped; revenue of $3.3B Provides storage solutions for Enterprise, Desktop, Mobile Computing, Consumer Electronics and Branded Retail markets –Share leader in Desktop, Enterprise and Consumer Electronics –36% overall market share: highest in the industry –Broadest product offering in the industry – Largest customer base Ownership and vertical integration of critical technologies: heads, media and motors Approximately 54,992** employees worldwide Acquired Maxtor Corporation Acquired Evault Forbes Magazine 2006 “Company of the Year” * For first fiscal quarter ended September 28, 2007 ** Includes interns, contractors, and agency temps

7 Corporate Overview October 2007 7 Seagate’s Global Presence Emeryville, Fremont, Milpitas, Sunnyvale, Scotts Valley, CA Oklahoma City, OK Ang Mo Kio, Science Park & Woodlands, Singapore Bangkok & Korat, Thailand Minneapolis, MN Penang, Malaysia Wuxi, China Longmont, CO Springtown & Limavady, N. Ireland Shrewsbury, MA Paris, France Drives and Components Regional HQ’s and Sales Shanghai, China Tokyo, Japan Beijing, China Delhi, India Pittsburgh, PA Suzhou, China Taiwan Design Customer Support Bray, Ireland Amsterdam, Netherlands Seagate Services Toronto, Canada

8 Corporate Overview October 2007 8 Technology Leadership –Own and develop underlying technology –Industry-leading investment in R&D Product Leadership –Industry’s broadest product line Vertical Integration –Own the key components that drive product strategy Scale and Leverage –World class manufacturing and flexible supply chain Seagate Leadership Model

9 Corporate Overview October 2007 9 Seagate’s Product Line 8 Markets 40 Products 100% Revenue Access 8 Markets 40 Products 100% Revenue Access Handheld Gaming Auto DVR Notebook Desktop External Enterprise

10 Corporate Overview October 2007 10 Network Infrastructure Content Aggregators Content Enjoyment Content Creation Storage Industry Trends - Digital Content Landscape Forming

11 Corporate Overview October 2007 11 Q1 Financial Highlights EPS* $0.69 Margins Revenue Net Income* Shipments Inventory $3.3 billion $385 million 47.2 million Under 3 weeks 25% * Non-GAAP

12 Corporate Overview October 2007 12 R&D Investment (last 4 consecutive quarters) $ Millions

13 Corporate Overview October 2007 13 Q1 FY08 132.4M Units Q4 FY07 111.2M Units Source: Seagate Market Research Market Share Estimates Total Market - All Form Factors - Preliminary Growth Y/Y = 15% Q/Q = 19%

14 Product Update

15 Corporate Overview October 2007 15 Q1 Product Highlights Consumer Electronics – shipped 5.7 million units DVR shipments rose 35% year-over-year Mobile Computing – shipped 7.9 million units 50% of shipments were 120GB or more Enterprise Products – shipped 4.6 million units 2.5-inch drive shipments reached 1.8 million units Desktop Products – shipped 29 million units Shipped 1.5 million 750GB products Branded Products Refreshed and redesigned Maxtor OneTouch Family

16 Corporate Overview October 2007 16 Mobile Computing Products Market leading technology The world’s first 2.5-inch notebook drive using perpendicular recording Capacities up to 160GB and spin speeds up to 7200 RPM Momentus 5400 Full Disc Encryption (FDE) prevents unauthorized data access Hybrid technology increases performance, reliability, and battery life Free-fall protection for beefed-up laptop durability Momentus

17 Corporate Overview October 2007 17 Seagate continues as #1 supplier of hard drives for DVRs The highest capacity—1TB—hard drive for DVR systems DVR market shipments to reach over 54 million units in 2010 to drive a compound annual growth rate of nearly 20% through the forecast period Consumer Electronics Products - DVR DB35 High-Definition DVR Digital Video Recorder/ DVD Combination LG PY2DR

18 Corporate Overview October 2007 18 Handheld Products 60GB for handheld audio and video devices G-Force protection for toughest 1.8-inch hard drive on the market Worldwide 2005 - 2009 compound annual growth rate (CAGR) for Portable Media Players is 95%* Lyrion *Source: IDC, 2005

19 Corporate Overview October 2007 19 Ruggedized Products EE25 EE25 Series meets rugged demands of the automotive, industrial, aerospace and marine tech markets 2.5 drive designed for operation at environmental extremes – high vibration, high humidity, wide-ranging temperatures Up to 80 Gbytes

20 Corporate Overview October 2007 20 Consumer Electronics Products – Surveillance First hard drive specifically engineered for commercial video security market 1TB = up to 32 days of high-quality, continuous recording Unique combination of features improves performance, power management and reliability Global video surveillance camera revenue will grow to more than $9 billion by 2011 with 13.2% CAGR, up from $4.9 billion in 2006 (iSuppli, March 2007) Global market for network video surveillance technologies expected to reach $2.6 billion by 2010 (IMS Research, January 2007) SV35

21 Corporate Overview October 2007 21 Consumer Electronics Products – Seagate D.A.V.E. Technology Platform Delivers the best way to move, store and connect your digital life, wirelessly connecting mobile devices. Up to 60GB of storage Powerful Bluetooth 2.0 and Wi-Fi connection Highly customizable: Designed to be easily branded by mobile device manufacturers, network carriers, automotive companies, and others

22 Corporate Overview October 2007 22 Who Am I - Now Seagate, Sr. Global Supply Analyst –Supply Optimization –Supply Allocation –Supply Revenue and Linearity alignment Progenitor of 2 tools –HeatMap: Supply/Demand reconciliation –Demand Signal: Optimized forecast for production planning Lead for Optimization Tool * For first fiscal quarter ended September 28, 2007 ** Includes interns, contractors, and agency temps

23 Corporate Overview October 2007 23 Allocation Overview  Vision  Daily and Weekly Execution Deliverables  Allocation Ownership  Judgment Process  Forecasts Accuracy and Reality (SSD)  Reporting Content  Functional Interaction  Open Items / Actions

24 Corporate Overview October 2007 24 Vision – Allocation Management Escalation path for customers to gain additional supply for demand coverage Production planning remains step one in supply issues Owns forecast alignment to the revenue plan PLM is consulted in any forecast gaps to the revenue plan Owns the forecast that drive 6 months of factory planning Responsible for prioritizing any builds that result in customer or revenue trade-offs Communication vehicle for field sales to get reliable and prompt supply status

25 Corporate Overview October 2007 25 Daily / Weekly Execution  Who’s Short Report - Daily -Verify entries and target response/closure within 48 hours -Communicate back to AM/Sales on ability to close  Judged Demand Signal – Weekly: Tuesday COB  BU and PLM issues – Weekly / Monthly -Status updates -Transition calls and qualification issues -Substitution Matrix  Retail Supply Line and Forecasting Management - Weekly  Ad hoc supply issues and Reporting - Daily  Factory calls: materials, manufacturing, launch & quality – Weekly  Master Schedule analysis

26 Corporate Overview October 2007 26 Allocation Ownership Allocation Management  Allocation for WW customers and all Business Segments  Optimization of build plans to align supply to demand as well as message supply opportunity positioning  Support the current quarter revenue plan across all BU’s  Align to the Inventory Targets (turns) while effectively messaging the importance of customer agreements, buffers and supply continuity Current Quarter  Reactive - Who’s Short Report identifies field sales shortages  Proactive - Heat Map  Ownership of all allocation / revenue trade-offs with inputs from Sales Management Future Quarter  Heat map (next) proactively analyzes by ST model, 9-digit and customer  6 Month view “Supply Status” tests MBS plans against Judged Demand and Buffer requirements

27 Corporate Overview October 2007 27 Allocation - Functional Interaction Functional Groups Issues and Escalations

28 Corporate Overview October 2007 28 HeatMap – User Views & Interfaces Drilldown Configure Pivot Data Main Pivot Table Limit Query Data Configure Pivot Table 1 2 3

29 Corporate Overview October 2007 29 Simple: Linear Programming A Linear Program (LP) is a problem that can be expressed into a standard form as follows: Minimize or Maximize cx (Objective Function) subject to Ax = b (Constraints and variables) Where x>=0 The word "Programming" is used here in the sense of “planning". Find the best solution in Feasible Region

30 Corporate Overview October 2007 30 Optimization Model Components  Current Demand (by Month and 9 Digit Model)  AUP, AUC (6 Digit)  Customer Ranking (Strategic Importance, Pricing Tier, Loyalty, and Mgmt Commitment factors) Customer Specific (constraints)  Maximum Profitability, Net Revenue, or Market Share Business Goals (objective or constraints)  MBS (6 Digit)  Material Availability (# of Discs by Mth) Supply Specific (constraints)

31 Corporate Overview October 2007 31 Profit Maxi. Goal Supply Constraint Dmd by Mth by 9-Digit AUP/AUC by Customer by Model Customer Ranking Sample Optimization Model

32 Corporate Overview October 2007 32 BY MODEL BY CUSTOMER Sample Optimization Outputs

33 Corporate Overview October 2007 33 What’s It Mean to You Testimonials –Jason:Sr. Analyst, Revenue Planning –Kevin:Account Manager –Colin:Manufacturing Program Manager –Ming:International Trade Analyst – Finance/Accounting –Mai:Sales Operations, Pricing Analyst * For first fiscal quarter ended September 28, 2007 ** Includes interns, contractors, and agency temps

34 Corporate Overview October 2007 34 Summary Jason D Demant/Seagate My current role is a revenue planning analyst in our Branded Solutions BU. I own our quarterly revenue plans, which includes getting forecasts from Sales, hosting meetings to lock on prices and then crunching through quite a few numbers to give our BU and corporate group visibility into the current quarter and 4 quarters out. During off cycle times, I typically do ad-hoc reports and excel reports. I spend my time primarily analyzing data and doing various things in Excel. This role is more of a finance type role. For this role I've created basic SQL queries which I learned at UCSC. Primarily though I use basic business knowledge acquired there as well. This is my second position at Seagate. I started in Customer Service as a project manager. The primary project I worked on was creating a new returns process for our end-users. We now incorporate eCommerce into the returns process and sell upgrades, advanced replacement and expedited shipping to customers via the returns process. Thanks, Jason Demant Sr. Analyst, Revenue Planning Seagate Branded Solutions (SBS)

35 Corporate Overview October 2007 35 Summary -Kevin K Wang - In my first 2 years at Seagate I have been one of the Account Managers on our Corporate Accounts ( Big 6, accounts for approx 60% of revenue), Sun Microsystems. This job really focuses on Supply Chain Management and is really the heart of how to manage supply vs demand. As an Account Manager you are the customer facing agent that has to work customer upsides/ mix changes/ as well as any other opportunities customers will throw at you. Account Managers deal with every part of the company from understanding customer requirements to knowing the details of how a HDD work so you can relate things back to your engineering team. As an Account Manager you are fulfilling the new build production side of the business meaning that weather its IBM, DELL, EMC, HP, or Sun Microsystems, we sell Hard Drives to all of them! Account Managers are the supporting force of sales. Sales makes the deals and Account Management makes those deals happen. Even though it is tough to deal with high demanding customers day-in and day-out, it does require lots of attention to detail as well as a complete understanding of how your customer's business works, because at the end of the day you are as successful as your customer is. The skills that I have used from my days at UCSC would have to be all primarily from ISM 225, only because my role dealt strictly with SCM. One eye opener for me was that all the case studies that Subhas reviewed in class were just that, "case studies". After being deployed into the real world I soon came to figure out that not EVERY works how it was planned to work. For example EDI signaling demand are not always processed through, another example could be that due to weather conditions your product will not arrive due to airports being shut down, etc. It is not until you experience all these real life situations that you realize how difficult it really is to keep big Corporations running the way they do.

36 Corporate Overview October 2007 36 Summary Kevin - continued Now I have just taken on a new position as a Senior Planner working in Sales Operations. This job will focus primarily at take manual processes and creating automated tools to help eliminate the time needed to perform these manual tasks. My new role will be focusing on taking current processes and streamlining them to allow our internal team to spend more time analyzing data rather than spending the time pulling it. I will also be attacking the customer side of this as well by making all these improvements more of a collaborative effort to help both parties in the long run. One thing that I wish the program did touch more on was Microsoft skills (i.e. Access and Excel). I had no idea how much these tools could do until I started using them in the real world. I used some very basic and beginner functions in excel but never used it to the extent I do today (one example being Pivot tables). This I think would be very beneficial for anyone going into Corporate America where Microsoft tools are the norm and everyone has to adapt to use them (regardless of how horrible they are). Other than that I think the courses and work load in this major fits into the high tech industry being that more and more companies are now looking for those who are business savvy and have a technical background. With this kind of combination you become a very valuable asset to any company. Best Regards, Kevin Wang Account Manager Business Management Seagate Technology, LLC

37 Corporate Overview October 2007 37 Summary Colin Lee/Seagate 1) Global Supply Chain Analyst I'll leave this for you, since we were in the same group. 2) Materials Factory Manager Responsible for all aspects of managing the ODM. Own materials & buffer management, tooling capacity and production, demand forecasting, Ramping product production, Mass production, End Of Life Management, packaging, cost negotiations, and ODM relationship. ISM 225 really helped in that I use buffer calculations, formula and forecasting frequently in my day to day tasks. It also helped open my eyes to new buffer strategies and helped me build custom strategies for my ODM's different products. Thanks, Colin Materials Factory Manager Seagate Branded Solutions

38 Corporate Overview October 2007 38 Summary


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