Harley Davidson

1
Harley Davidson

• Shifts into Higher Gear

• Done by
• Tran Hoang Bao, Andrew U054140Y
• Koh Tai Tong Allan U057096J
• Duan Tingliang
  U056881W

2
Harley Davidsons Profile

• 1903 William S. Harley and the Davidson
  brothers, Walter and Arthur, handcraft their
  first three motorcycles in Milwaukee, Wis.
  William A. Davidson later joins the enterprise.
• 1969 Merger with American Machine and Foundry
  (AMF). 14,000 motorcycles produced annually.
• Mission Statement
• WE FULFILL DREAMS THROUGH THE EXPERIENCES OF
  MOTORCYCLING, BY PROVIDING TO MOTORCYCLISTS AND
  TO THE GENERAL PUBLIC AN EXPANDING LINE OF
  MOTORCYCLES AND BRANDED PRODUCTS AND SERVICES IN
  SELECTED MARKET SEGMENTS.
• One of the two mass producer of motorbikes
  nowadays in USA (along with Victory)
  Emphasizing heavy bikes designed for cruising and
  known for their distinctive exhaust note.
• Fiscal year 2004 Revenue US 5,015 millions
  Employees 9,000

3
Organization Restructure

• Circles of Leadership 3 standing committees
  totaling 25 executives
• The Create Demand Circle (Customer Department)
• The Produce Products Circle (Production
  Department)
• The Provide Support Circle (Support Department)
• Overlap part LSC Consists of members from
  each circle as well as the CFO and CEO
• ? Decentralized management system

4
Organization Restructure

• Old structure
• Director of IS Rich Kolbe report directly to
  the President
• IS Department is isolated with the 3 main
  Departments
• ? This hierarchical structure did not track with
  Harley Davidsons decentralized mangement system
  Circles of Leadership

• New structure
• David Storms strategic planning
• Reid Engstrom (Kolbe in the past) Director of
  IS for Support
• Laurel Tschurwald Director of IS for Customers
• Mason Director of IS for Production
• All report to David Storm The VP of Planning
• ? Improve the ITs alignment with the Circles of
  Leadership

5
IT Resources Upgrading

• Plan to use IT
• Increase production 150,000 (1998) ? 200,000
  (2003)
• Cut 40 million production and inventory costs
• 1998, IS budget is 50 million 2 of projected
  revenue
• Budget dedicated to new development, funding an
  IP-based corporate network, data warehouse
  project, ect.
• Doubling IT staffing over the past 4 years

6
Support Department

• 2,000 dealerships worldwide sales and services
  for Harleys bikes
• Dealerships are
• Standard-bearers for Harley Davidson traditions
• Local presence to Harleys customer
• Requirement
• Streamline the channel Company Dealerships for
  better information exchange and quality
  management
• Avoid the alienating effects with dealership
  channel while implementing the E-commerce strategy

7
Support Department

• Solution H-D.Net
• An extranet exclusive for Harleys dealerships
  access
• Retrieve products and warranty information from
  the data warehouse DataMirror Server
• Allow dealership channels to execute
  warranty-claim transactions and place parts
  order-entry

8
Support Department

• Benefits
• Faster, cheaper and safer
• Less paperwork, fewer delays, JIT strategy, etc.
• Push and Pull Strategies
• Shift the burden of data tracking and entry to
  the dealership
• Yet maintain a close relationship company
  dealer channels
• Challenge only 1/10 of Harley Davidsons
  dealers make full use of H-D.Net system
• Need to promote the benefits of H-D.Net to its
  dealership

9
Production Department

• Problem Long Processing time.
• Solution
• AS/400 Platform
• use them to support the data warehouse
  development by DataMirror, streamline the
  operations
• Problem Keeping track of Inventory
• Solution
• Marcams Advantis Software
• To manage the inventory
• Keep track of equipments in need of maintenance
  or repair

10
Production Department

• Problem Relationship with the Suppliers
• Solution
• Manugistics Supply Chain Software
• Support users, both internal and external users,
  with the use of Parametrics Pro-E computer-aided
  design and manufacturing software
• Metaphases product-data management software
• Ensure the smooth flow of product information
  internally and externally
• Problem Outdated Warehouse Facilities
• Solution
• Building of new Distribution Center
• New management system
• New shipping system
• Interlakes automated conveyors and other
  warehouse equipments

11
Customer Department

• Problem Dont deal with customers directly.

Depends on 2,000 dealerships worldwide.
Solution a. Coaxing competitive information
from dealers. b. A data warehouse project
First A customer-relationship management.
Next Test warranty and finalcial applications
12
Customer Department

• Problem engaging E-commerce while alienating the
  company's relationship with its dealer channel.

Solution Customers meet on the company's Web
site. Dealerships execute warranty-claim
transactions and parts order-entry over H-D.Net.
One-tenth of Harley-Davidson's dealers take
advantage of H-D.Net.
13
Customer Department

• Problem Whole distribution system is out of time
  and inefficient

Its distribution warehouse was dismal. The
information systems were paper-intensive. 12 days
to fulfill orders while competitors take only 3
days.
Solutions 18 million on construction and
implementation Build a new 250,000-square-foot
distribution center. Implemented a warehouse
management system from Exeter. Shipping system
Pfastship implemented on As/400 platform.
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SIS
15
Inbound Logistics
Manugistics Supply Chain Software to support
both internal and external components
suppliers. Metaphases product-data management
software to ensure smooth flow of product
iunformation
16
Operations Outbound Logistics

• AS/400 Platform to support the data warehouse
  development.
• Marcams Advantis Software to keep track of
  Inventory.

17
Market, sales service

• H-D.Net
• Customers meet on the company's Web site
• Dealerships execute warranty-claim transactions
  and parts order-entry

18
Conclusion

• A famous brand and lots of loyal customers are
  not sufficient enough for a company to survive
  under a competitive environment.
• Must implement latest technology and facilities.

19
Conclusion

• A company should maintain its relationships with
  lots of dealers while implement lasted E-commerce
  strategy.
• A company should value their loyal customers and
  keep them satisfied with IT.

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• Q A