Life beyond UCSC

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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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Overview

• Who am I And how did I end up in the ISTM
  program
• What am I My professional career, past,
  present, and future
• Whats it all about now - Seagate
• What the _at_! it got to do with you -
  Testimonials

For first fiscal quarter ended September 28,
2007 Includes interns, contractors, and agency
temps
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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
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
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Corporate OverviewOctober 2007
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Seagate Storage Leader

• Seagate is the worlds 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
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Seagates Global Presence
Springtown Limavady, N. Ireland
Minneapolis, MN
Bray, Ireland
Amsterdam, Netherlands
Emeryville, Fremont, Milpitas, Sunnyvale, Scotts
Valley, CA
Paris, France
Beijing, China
Toronto, Canada
Tokyo, Japan
Shrewsbury, MA
Wuxi, China
Pittsburgh, PA
Suzhou, China
Delhi, India
Shanghai, China
Oklahoma City, OK
Bangkok Korat, Thailand
Taiwan
Longmont, CO
Penang, Malaysia
Ang Mo Kio, Science Park Woodlands, Singapore
Drives and Components Regional HQs and Sales
Seagate Services
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Seagate Leadership Model

• Technology Leadership
• Own and develop underlying technology
• Industry-leading investment in RD
• Product Leadership
• Industrys broadest product line
• Vertical Integration
• Own the key components that drive product
  strategy
• Scale and Leverage
• World class manufacturing and flexible supply
  chain

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Seagates Product Line
Handheld
Notebook
8 Markets 40 Products 100 Revenue Access
Gaming
Desktop
Auto
External
DVR
Enterprise
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Industry Trends - Digital Content Landscape
Forming
DVRs, HH, Gaming, Cars, Backup...
Video, Photos, Movies, Music...
Content Enjoyment
Content Creation
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Q1 Financial Highlights
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RD Investment (last 4 consecutive quarters)
Millions
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Market Share Estimates
Total Market - All Form Factors - Preliminary
Growth Y/Y 15 Q/Q 19
Q1 FY08 132.4M Units
Q4 FY07 111.2M Units
Source Seagate Market Research
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Product Update
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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

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Mobile Computing Products
Momentus

• Market leading technology
• The worlds 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

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Consumer Electronics Products - DVR
DB35

• Seagate continues as 1 supplier of hard drives
  for DVRs
• The highest capacity1TBhard 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

Digital Video Recorder/ DVD Combination
LG PY2DR
High-Definition DVR
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Handheld Products
Lyrion

• 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

Source IDC, 2005
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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

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Consumer Electronics Products Surveillance
SV35

• 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)

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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

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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
Allocation Overview

• Vision
• Daily and Weekly Execution Deliverables
• Allocation Ownership
• Judgment Process
• Forecasts Accuracy and Reality (SSD)
• Reporting Content
• Functional Interaction
• Open Items / Actions

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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

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Daily / Weekly Execution

• Whos 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

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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 BUs
• Align to the Inventory Targets (turns) while
  effectively messaging the importance of customer
  agreements, buffers and supply continuity
• Current Quarter
• Reactive - Whos 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

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Allocation - Functional Interaction

• Functional Groups
• Issues and Escalations

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HeatMap User Views Interfaces
Configure Pivot Data
2
Main Pivot Table
Drilldown
1
3
Limit Query Data
Configure Pivot Table
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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
xgt0 The word "Programming" is used here in the
sense of planning".
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Optimization Model Components
Customer Specific (constraints)

• Current Demand (by Month and 9 Digit Model)
• AUP, AUC (6 Digit)
• Customer Ranking (Strategic Importance, Pricing
  Tier, Loyalty, and Mgmt Commitment factors)

Business Goals (objective or constraints)

• Maximum Profitability, Net Revenue, or Market
  Share

Supply Specific (constraints)

• MBS (6 Digit)
• Material Availability ( of Discs by Mth)

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Sample Optimization Model
AUP/AUC by Customer by Model
Supply Constraint
Customer Ranking
Dmd by Mth by 9-Digit
Profit Maxi. Goal
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Sample Optimization Outputs
BY MODEL
BY CUSTOMER
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Whats 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
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
  fromSales, hosting meetings to lock on prices
  and then crunching through quitea few numbers to
  give our BU and corporate group visibility into
  thecurrent quarter and 4 quarters out. During
  off cycle times, I typically doad-hoc reports
  and excel reports. I spend my time primarily
  analyzing dataand doing various things in Excel.
  This role is more of a finance typerole.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 aproject manager. The
  primary project I worked on was creating a new
  returnsprocess for our end-users. We now
  incorporate eCommerce into the returnsprocess
  and sell upgrades, advanced replacement and
  expedited shipping tocustomers via the returns
  process.Thanks,Jason DemantSr. Analyst,
  Revenue PlanningSeagate Branded Solutions (SBS)

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Summary

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

36
Summary

• Kevin - continued                               
                 
• Now I have just taken on a new position as a
  Senior Planner working inSales Operations.  This
  job will focus primarily at take manual
  processesand creating automated tools to help
  eliminate the time needed to performthese manual
  tasks.  My new role will be focusing on taking
  currentprocesses and streamlining them to allow
  our internal team to spend moretime analyzing
  data rather than spending the time pulling it.  I
  will alsobe attacking the customer side of this
  as well by making all theseimprovements more of
  a collaborative effort to help both parties in
  thelong 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 Istarted using them in the
  real world.  I used some very basic and
  beginnerfunctions in excel but never used it to
  the extent I do today (one examplebeing Pivot
  tables).  This I think would be very beneficial
  for anyonegoing into Corporate America where
  Microsoft tools are the norm andeveryone 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 intothe high
  tech industry being that more and more companies
  are now lookingfor those who are business savvy
  and have a technical background.  Withthis kind
  of combination you become a very valuable asset
  to any company.Best Regards,Kevin
  WangAccount ManagerBusiness ManagementSeagate
  Technology, LLC

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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 andforecasting frequently in my day to
  day tasks. It also helped open my eyesto new
  buffer strategies and helped me build custom
  strategies for my ODM'sdifferent
  products.Thanks,ColinMaterials Factory
  ManagerSeagate Branded Solutions

38
Summary