Manufacturing Strategies For The New Economy

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Manufacturing Strategies For The New Economy
Major Horton Senior Vice President
CFO Rackspace Managed Hosting
Major.Horton_at_Rackspace.com
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Not Your Traditional Manufacturing Guy

• Last 9 Years in New Economy Companies
• 10 yrs in manufacturing companies 4 yrs
  consulting
• Career includes manufacturing engineering,
  manufacturing management, supply chain, lean
  manufacturing, total quality mgmt six sigma
• Currently manage finance, supply chain,
  information technology, real estate/building
  management, security, and change management
• BS in Mechanical Engineering from Kettering U.
  with focus on process engineering and robotics
• MS in Management from MIT with focus on
  technology management and applied economics

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New Economy vs. Old Economy

• As little capital as possible
• Heavy information technologies
• Data centers as manufacturing sites
• Work organized as workflows
• Focused on process collaboration

Heavy capital investments Heavy manufacturing
technologies Factories as manufacturing
sites Work organized as functions Focused on
process control
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Change Forces For Manufacturers

• Globalization
• Ease of Information Flow
• Quality Expected As a Basic
• Ever Shortening Supply Chains
• Customer Focus on NOW

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Kano Model for Customer Expectations

Satisfaction
Time

• Delighters

• Satisfiers

Performance

• Basics

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Meet The NOW Economy

• Information flows rapidly through demand and
  supply chains
• Business processes are continuously monitored and
  trigger rapid reactions
• Shifts in customer preferences are monitored
  nearly real time
• New offerings to meet customer demands are
  quickly developed and brought to market
• Enterprises THINK in real time

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Start With Your Customers

• What do they REALLY want?
• Develop the next delighters while fixing the
  basics
• Be brutally honest with them
• Focus and simplify around what really matters to
  your best customers
• Organize around customers

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Success Attributes in the New Economy

• Highly efficient workflows and processes
• Use information technology as a weapon
• Focused on responsiveness
• Just in time capital spending
• Customer service engineered products
• Employees trained across the entire workflow
• Super engaged employees

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Whats Different About Rackspace

• FANATICAL Support
• Managed Growth in Our Sweet Spot
• Experts in Customer Service Economics
• High Capital Efficiency
• RACKER Culture

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Staying Ahead of the Curve

• "With the internet economy almost doubling each
  year, no business will go untouched. I believe
  these new changes dictate a new focus on
  information technology infrastructure and its
  role in the future of your business."

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Manufacturing Strategies For The New Economy
Major Horton Senior Vice President
CFO Rackspace Managed Hosting
Major.Horton_at_Rackspace.com