Cross-Enterprise Integration

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Cross-Enterprise Integration
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Adaptec Inc.

• A 1 billion global manufacturer of network and
  I/O connectivity HW and SW products and is
  competing in an environment of
• Shrinking product lifecycle
• Increasing customer demands
• Decreasing margins
• Major challenges from the vertically integrated
  competitors who have their own fabrication and
  assembly facilities.

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Challenge As A Fabless

• As a fabless semiconductor company, Adaptec
• Removes the need to invest 1.2 billion in their
  own fabrication facility, but
• Increases the need to interact seamlessly with
  their Asian partners

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Adaptecs As-Is

• Method of communication
• Fax
• E-mail
• FTP
• EDI
• All have inherent problems and in combination
  with critical data being stored in multiple
  enterprise systems, lead to delays and long
  lead-times, making them less competitive in the
  market.

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Issues Identified

• Time consuming manual extraction, manipulation
  and coordination of data
• Important information is stored in many systems
• Wide number of types of information to be
  communicated necessitated a variety of methods of
  transfer
• Manipulating and transferring data was a long
  process
• Communication methods were unreliable and prone
  to errors
• Partners have their own heterogeneous systems and
  methods of doing business

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Why Alliance?

• Alliance provided Adaptec with the functionality
  they were looking for
• Automated manual processes
• Enabled cycle time reductions
• Extends Adaptecs enterprise systems and those of
  their partners
• Expandable solution for future extension and
  growth
• Offers secure communications

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Business To Business Processes

• Processes defined and automated with Alliance
  were
• Engineering design
• Demand forecast
• Purchase order/acknowledgement
• WIP update
• Ship notification

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Business To Business Processes

• Multiple automated processes involving multiple
  systems

TSMC
Adaptec
Purchase Order/ Acknowledge
WIP Update
Legacy Order Mgmt.
SAP
Intranet Web Server
Ship Notification
Demand Forecast
PDM
CAD
PDM
Engineering Design Test
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Adaptec A Fabless Semiconductor Company
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Benefits Of Virtual Factory

• The calculated return is 15 times the investment
  in just the first 3 years a one-month payback,
  or an ROI of 1500.
• Reduced cycle times up to 50
• Reduced inventory levels
• Increased visibility to manufacturing processes
• Improved on-time delivery
• Improved new product introductions
• Increased customer satisfaction

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Adaptec 1998
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Adaptec 2000
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B2B Relationship Management

• To manage the internal and external sharing of
  information and the execution of interactions
  between software applications and business
  partners over the Internet.

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Make B2B Simple, Open, Manageable
Integrate and extend applications and business
processes to work with those of Customers,
Partners and Suppliers...
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B2B Architecture Requirements
Reliable. Scalable. Flexible.  
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TSMCVirtual Supply Chain Integration

• Solution TSMC Direct
• Create Virtual Fab environment
• Implement Extricitys Alliance to integrate with
  top customers and back-end test and assembly
  partners
• Automate and synchronize business processes
• Order management - WIP tracking - forecast
  sharing
• Collaborative engineering and test

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TSMCVirtual Supply Chain Integration
Customers
Suppliers
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TSMCVirtual Supply Chain Integration

• The calculated return is 14 times the investment
  in just the first 3 years a five-month payback,
  or an ROI of 1400.
• Reduced product lead time by 25
• Reduction in non-value-add time
• Eliminated manual processes
• Reduced WIP inventory
• Improved capacity planning
• Increased customer satisfaction and loyalty