alcatel access system division mm biztel 5 imt

8/14/2019 Alcatel Access System Division MM BIztel 5 IMT

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Left Wing Group

MM Biztel 5

IMT Bandung, Indonesia

(Abdul-Arif-Ahmad-Dadang-Fera-Krisdiastoro-

Sholahudin-Zaki)

Alcatel Access SystemDivision

Building For The Future


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Problems of Alcatel 1990s

Problems in 1995:Structure: too many independent legal

entities

Resulted in costly duplication of products &services

No real authority of Business Unit over theCountry Units when it came to P&L

decisionsOrganizational Change in 1996:

Response to intrinsic organisationalchallenges & external competitive

pressures


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Business Division Concept8 Business Divisions:Responsible for Strategy and P&L over country unitsCompetence Center : R&D, Product Management, Sales

SupportBetter control over product development:Central Function:

Provide tools, procedures, rules, processes for the local unitsDirection for allocation of resources

Local UnitsResponsible for day-to-day management Logistic, administration (incl. personnel adm)

Managing profitability:Rationalising the number of similar productsStreamlining new product definition efforts &

developmentClosing some of manufacturing units

Reorganisation challenges:

Union constraintsResistance from some of the country heads


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Alcatels MSANThe changes in the telecom environmentLiberalisation

InternetPTO invest in services that would yield

immediate

Previous Access Strategy (ASAN, DORA)No focus of effortsReinventing the wheelNarrowband culture

Uncertainty as to where the market washeading


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Alcatels MSANMSAN:Customer could start with narrowband applications &

gradually plug in broadband upgradesProvide : existing access services (POTS, ISDN, data)

New services (higher speed internet, multimedia, video)

Challenges:Narrowband & Broadband under different divisions, lack of

coordination & agreement Finally agreed on acommonarchitecture & blended to 1 division

Objectives & resources for the project were not alwaysclearTechnical group member were not carefully selected

Attempts to enforce convergence of the effort:Narrowband & Broadband agreed on acommon architecture

Narrowband & Broadband merged into 1 division


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Alcatels MSAN

MSAN Implementation Problems:Lack of market drive

Efforts were not very concentrated

Lack of commitment : Lots of players & localsituations survived


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Recovery for Alcatel (1996)

Positive development of sales & net incomeKey success factors according to the top

management:Sense of urgencyAn integrated view of thingsThe autonomy given to 8 business divisions with

concentration of the core activities per location

Challenges after recovery in 1996:

Further rationalising operations &manufacturing

New technological change :circuit switch packet switch New market : increasing traffic of data

Response to the challenges : High Speed


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High Speed Diary (1997)

High speed passport as a mean ofcommunicating the change

Awareness of the importance of time to

market:Flattening the organisationBetter coordination :ExCom

key business strategies, major projects &investments, long term contracts

Management Council

coordinating business divisions

Strategic Analysis Function

Assist Alcatel management & its business divisions inareas in the strategic & economic evolution


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Feedback of theReorganisationConsistency of business divisions on P&LLack of control instrument for business

divisons to control the productdevelopment

Many decisions still had to be taken at avery high level => bottleneck potential toresponsiveness

Network Integration Division was notsufficiently staffed & lacked any power overthe areas


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Scope of Analysis


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Problems Analysis


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2.A. Structure(Manufacture Order Cycle)

ASPECT PROBLEMS RECOMENDATION

NUMBER Very large & Complexfacility

-> Exibit 28 Business Division6 PC (30 Country)

9 R & D Centers Many units wereoverstaffed

(Job Evaluation)

Reduce number of taskrepetitively Streamline country units :

Regrouping PC Regrouping R&D Steamline Structure of eachcountry unit

Streamline product catalogue

LOCATION Very Distributed (30Countries)

Evaluate Location of BD & CU,Based on :

Suppliers Markets/Customers

Labour & Mgt. CostSPECIALIZATION

VariousProducts/Service

Evaluate Specizlization basedon :

Region Process Product Line Prod. Volume

Streamline Product Catalogue

Tools :

Table 5.1

P. 148


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Table 5.1 Assesing the differences between

alternative ways of focusing a Plant Network

Type of Focus By Region By Product

Key decision

Capacity Utilization

Lay-out

Facility size

Sourcing

Process technology

Workforce

Quality

prod'n run length

performance metrics


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2.B. Infrastructure(Manufacture Order Cycle)

ASPECT PROBLEMS RECOMENDATIONDegree ofCentralization &Policy

High Degree ofdecentralization

Set up policy for commonpolicy Give clear authority forintegratior function :

Business Division Network IntegrationDivision

Table 5.2 (P.157) Implement virtualcompany concept on specific

projects

Measure &Control

Business Division Didnot have tools to control

country units Lack of BusinessDivision consistency onProfit & Loss

Operations monitoring Audit System

Clear Key PerformanceIndicator Definitions &distributions for BusinessUnit & Country Unit Time to Market as one ofmain KPI of Business Division

& Country Unit


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2.C. Governance(Manufacture Order Cycle)

ASPECT PROBLEMS RECOMENDATION

Governance

Strong National/ProductEntities Rationalisation ofOrganization/Employees

Resistance from somecountry Heads NID was not suffientlystaffed

Change Management Improve NID Staffs withsuperior competences


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Process Evaluation(Customer order cycle)

PROBLEMS RECOMENDATION

The Supply ChainManagement failed to meetmarket Requirement

Dora Project

ASAN

Implementing Pull System in SCM &Standarized the process Optimalize it to manage informationflow across the company

Focus on New Technology & IndustryConvergence

Internet BroadbandDuplication of customer

order cycle processes : Country Unit Business Division

Integrate Customer RelationshipProcesses


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Thank you for your attention.Thank you for your attention.

alcatel access system division mm biztel 5 imt

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