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Reebok Background
Reebok Background
Reebok Background
Reebok Background
Reebok Background
Reebok Background
Reebok Background
Reebok Background
Reebok Background
Reebok Background
Reebok Background
Reebok Background
Reebok Background
Reebok Background
Reebok Background
Reebok Background
One Example: Pump 2.0
One Example: Pump 2.0
Results So Far
Results So Far
Results So Far
Results So Far
Results So Far
Results So Far
Results So Far
Results So Far
Results So Far
Results So Far
Results So Far
Results So Far
Results So Far
Results So Far
The Past
The Past
The Past
The Past
The Past
The Past
The Past
The Past
The Past
The Past
The Past
The Past
Reebok’s New DAMS Process Diagram
Reebok’s New DAMS Process Diagram
Reebok’s New DAMS Process Diagram
Reebok’s New DAMS Process Diagram
Reebok’s New DAMS Process Diagram
Reebok’s New DAMS Process Diagram
Reebok’s New DAMS Process Diagram
Reebok’s New DAMS Process Diagram
Reebok’s New DAMS Process Diagram
Reebok’s New DAMS Process Diagram
Central Repository for Reebok’s Assets
Central Repository for Reebok’s Assets
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The Impact of IT on Product Innovation

содержание презентации «The Impact of IT on Product Innovation.ppt»
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1The Impact of IT on Product 18Example 2: Supplier E-Hub - What is it
Innovation. Peter Burrows Sr. VP/ MIS and ? Web enabled application that can be used
CIO September 27, 2005. September 27, to extend internal ERP and PLM systems to
2005. Boston College. 1. factories, transportation providers and
2Reebok Background. Multiple Brands. other supply chain partners. Can
Multiple Retail Channels. Variety of facilitate: Distribute PO’s electronically
Product Types. September 27, 2005. 2. Publish ticketing and labelling
Boston College. requirements Track work in process Obtain
3Reebok Financials. 2004 Annual Sales = shipping services Creation of advanced
$4 billion An improving financial shipping notices Exchange shipping
performance for the last five years: Five documents. September 27, 2005. 18. Boston
consecutive years of earnings improvement. College.
Compounded annual growth rate of 23.4%. 19Logistics Facts. 40 Main Footwear
Returned $226 million to shareholders in Factories in 8 Countries 600 Apparel
the form of dividends and share Factories in 29 Countries 450 Raw Material
repurchases We have generated $900 million Suppliers 27 Freight Forwarders
of operating cash flow. Our share price Transportation modes include Ship, Truck,
increased more than 400% and during the Rail and Air 34 Custom Brokers Over 5,000
past year it outperformed the S&P 500 purchase orders placed each month.
for the fifth consecutive year. Cash September 27, 2005. 19. Boston College.
position at December 31, 2004, $565 20Past Supply Chain Challenges. Purchase
million On August 3, 2005 Reebok agreed to Order Management Lack of complete purchase
be purchased by Adidas for $59 a share – a order visibility to trading partners
34% premium. September 27, 2005. 3. Boston (sales offices, factory, raw materials
College. supplier, ticketing, consolidator,
4IT Governance. IT Investment Committee transportation, Distribution Center) to
Corporate Executive Management; manage supply chain lead time &
establishes IT capital spending annually; inventory Difficult to extend internal
meets once per year. Mandatory for any systems to link different supply chain
project. September 27, 2005. 4. Boston parties. Difficult to accurately implement
College. customer specific services (e.g. ASN,
5Implementation Methodology of all pre-ticketing, labeling, mark-for-store)
Major Systems Investments. September 27, Transportation Logistics Management
2005. 5. Boston College. Different carriers, different way to trace
6Example 1: Reebok Product Development. & track Non completeness of
Reebok introduces thousands of new consignment check point Manual processes
products as seasons or collections every for smaller carriers, air and exceptions
year To ensure a steady supply of new Last minute inventory management
products we are working on 5-7 active difficult. September 27, 2005. 20. Boston
seasons of products all at the same time College.
The average footwear product takes 18 21the Old Way. Reebok HQ. Communication
months to engineer, commercialize and Methods: Fax, Mail, Couriers, site visits,
appear on retailer shelves, but quick to EDI, proprietary file transfers.
market products can move through the same Factories. Customs. Label Providers.
process in less than 90 days. Continuous Banks. Country Liaison Offices.
improvement in materials present an ever Transportation Providers. Drop ship
increasing list of construction choices customers. Reebok Trading Hong Kong. Raw
that must be tested and approved before Material & & Component Suppliers.
being included in any product Despite the September 27, 2005. 21. Boston College.
availability of digital product 22the New Way. Business-to-Business data
representations of products, our industry sharing /Vendor Neutral E-Hub/ Hosted
requires physical product samples to test, Environment (ASP model). Workflow, message
approve and sell effectively We out source alerts, backoffice integration with
almost all manufacturing so we must work reporting capabilities. Reebok HQ.
collaboratively with a network of supply Custom-built e-HUB with LINE, a division
chain partners. September 27, 2005. 6. of container port operator, Hutchinson-
Boston College. Whompoa in Hong Kong. Factories. Country/
7Product Development Re-Engineering Liaison Offices. Employees. Banks. Drop
Challenges. High volume process No ship customers. Label Providers. Customs.
exact-fit, off-the-shelf software that can Transportation Providers. Raw material
scale to global requirements & Component supplies. Reebok Trading
Geographically dispersed user base Large Hong Kong. September 27, 2005. 22. Boston
percentage of users not Reebok employees College.
Desire to add more structure to current 23Results So Far. Increased operational
processes while reducing cycle times efficiency through electronic transmission
Footwear product development different of order information directly into the
than apparel and equipment No common factory systems Improved data accuracy
workstation platforms due to nature of the Reduced administration cost through data
work (PC’s, Mac’s, Unix workstations) inheritance Some factories now using same
Employees want to work online/offline at solution for raw material suppliers.
the office and on the road. September 27, Neutral & common platform compared to
2005. 7. Boston College. having different system for each
8One Example: Pump 2.0. Pump 2.0 shipper/carrier Purchase order history and
introduced in April of 2005 The original version control logs benefit factories
pump technology Reebok introduced in the Dashboard design with “To Do List”,
1980's eventually sold more than 20 “Overdue Tasks” and “Alerts” for each user
million pairs Pump 2.0 needs no laces and level Ability to print / re-print purchase
inflates by itself. September 27, 2005. 8. orders on demand Numerous pre-delivered
Boston College. reports to manage PO activity. September
9Pump 2.0 Facts and Figures. The 27, 2005. 23. Boston College.
inflatable bladder and smart valve took 24Example 3: Digital Asset Management.
over four years to develop and perfect in BENEFITS Cost reduction Improved brand
our Advanced Research department 50 image Enable better communication with
additional parts beside the bladder make distribution partners and customers
up this shoe The parts are made from 25 requiring digital images Allows the use of
different materials that had to be tested digital images in all executive dash
and approved by labs located in China, boards. WHAT IS IT? A central repository
Korea and Taiwan. 15 different for all digital assets capable of handling
manufacturers supplied these materials all of Reebok image types (video,
from five different countries Special products, lifestyle) Ability to push
tooling had to be created for digital assets to a channel partners A
manufacturing to support RF welding dies, work flow system that enables a
cutting dies, midsole molds, outsole stream-lined process for creating and
molds, flow molds, hot press molds and approving digital assets. September 27,
injection molds Physical samples of this 2005. 24. Boston College.
shoe had to manufactured for initial 25The Past . . . E-Mail. Manually
product review, prototype, confirmation Archive. to CD. strain on network and mail
meetings, retail and consumer feedback servers. Manually resize all images - low,
meetings, photo-shoots, bulk sales samples med, hi versions. Users requesting images.
for distribution to more than 30 Product Development Centers. US.
countries, 3 rounds of fit and wear Librarian. Print. Catalogs. September 27,
testing and final manufacturing 2005. 25. Boston College.
confirmation Hundreds of product wear 26Reebok’s New DAMS Process Diagram.
testers had to be identified, provided September 27, 2005. 26. Boston College.
product and then surveyed for results. 27Results So Far. Central Repository for
September 27, 2005. 9. Boston College. all of Reebok’s digital assets. Reduction
10Product Development Technology. THE / elimination of redundant photo shoots
PAST. Current Environment. Islands of Better control of copyrighted assets -
Information Redundant views of information automated expiration of assets Access to
Technology makes factory participation the correct and most current version of
difficult Manual hand offs between groups assets Store only the core asset; Render
Data integrity issues No visibility or to needed format and resolution
control over process Increasing pace of “on-the-fly”. Self-service model for image
market changes leading to employee stress. requests - Reduction of CD creation costs
Increased investments in automating the Reduction of Shipping Costs Reduction of
product development process Single Product Catalog Printing Costs Instant
database for all product information Only fulfillment – reduced time-to-market.
one version of the truth Internet based to September 27, 2005. 27. Boston College.
allow factory participation Workflow 28Results So Far (cont.). Reduced
agents for electronic handoffs. September network traffic: Automated upload of
27, 2005. 10. Boston College. product assets via FTP and not E-mail View
11Key Attributes of Current Environment. thumbnail and only download high
Single product vault for all product resolution if desired Use of shortcut
information regardless of where the links in emails to reference images,
products are designed or what technologies instead of attaching image file Improved
are used to create them Ability to view worker efficiency by providing a one stop
and comment on aspects of a product location for product images and product
digitally, without the need to have data. Product data from Reebok’s Line
specialized software that might have been Planning System automatically mated with
used to create digital view Every appropriate asset Built in search tools
electronic device used in product Better control of access to assets through
development is connected to the network to user groups and permissions. Browser based
support 100 % flow of information application accessible from any public
Individual products can be grouped into Internet connection and does not require
categories, lines and seasons so the any client install. September 27, 2005.
timelines can be managed as a collection 28. Boston College.
that must be delivered to the market 29Central Repository for Reebok’s
together. September 27, 2005. 11. Boston Assets. September 27, 2005. 29. Boston
College. College.
12Key Attributes of Current Environment. 30Advice when using technology to
Electronic workflow to move all products improve product development: Obtain
through specific process gates defined for executive leadership at the highest
each product type Web browser user possible level Balance top-down objectives
interface Digital product images are used for change with ample benefits for the
in all reports and management dash boards people who work in the process Avoid
Collaboration with supply chain partners long-duration, big-bang implementations
for 7/24 hour global engineering Try to deliver some benefits every 3-6
Management alerts on products not hitting months Initial focus on low hanging fruit
timelines or margin expectations. to gather support and momentum If
September 27, 2005. 12. Boston College. possible, defer most complex technology
13Product Development Technology challenges until team has mastered the
Portfolio. September 27, 2005. 13. Boston technology and gained confidence Retire
College. Legacy modules along the way to increase
14Product Development Technology compliance to new processes/simplify
Portfolio. September 27, 2005. 14. Boston maintenance Do not accept software that is
College. NOT a good fit Influence suppliers if you
15Product Development Technology can/custom build if you cannot. September
Portfolio. September 27, 2005. 15. Boston 27, 2005. 30. Boston College.
College. 31Advice when using technology to
16Product Development Technology improve product development (continued):
Portfolio. September 27, 2005. 16. Boston Fund full-time, business team members in
College. project cost Pay close attention to
17Results So Far. In the sixth inning of systems technical architecture so it can
a nine inning game 15 Complete Seasons in scale and handle performance and allow
footwear and apparel now managed Over secure collaboration outside of the
45,000 electronic files are stored in the firewall Adjust project calendar to
product vault 24 reports and 35 line plan recognize and accommodate seasonal product
views are utilized daily by 64 different development calendars Use the project as
user profiles/roles. 8 footwear and 9 an opportunity to clean up data Adhere in
apparel milestones are tracked as workflow strong project methodology and focus
gates. September 27, 2005. 17. Boston attention on issues and off plan items.
College. September 27, 2005. 31. Boston College.
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The Impact of IT on Product Innovation

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