Caterpillar: Transforming the Business with a Live Factory Marty Groover, Operational Technology Leader Caterpillar: Non- Confidential Caterpillar Business Transformation Video GROWING TO WIN – BCP’S VISION AND STRATEGY Caterpillar: Non- Confidential Who is Caterpillar? ▪ A Fortune 50 global enterprise ▪ 2016 sales and revenues of ~$40B ▪ Global team of more than 100,000 ▪ Nearly 500 locations in 50 countries (manufacturing, marketing, logistics, service, R&D and dealer locations) ▪ Dealers Network and Products at work in more than 190 countries around the world PRODUCT LINE Caterpillar: Non- Confidential Digitized BCP GLOBAL FOOTPRINT in 80’s Sanford, NC Assembly, Design / Test Center, Stockton, UK Fabrications, Distribution Center, Fabrications Visitor Center Clayton, NC Desford / Leicester, UK Assembly, Design / Test Center, Assembly, Design Center, Distribution Center, Logistics Node Visitor Center Visitor Center Oshima, Japan Assembly Cary, NC Ashiosaki, Japan Administration Office Assembly Yokohama, Japan Waco, TX Design Center Logistics Node Torreon, Mexico Fabrications Goa, India Assembly Wujiang, China Athens, GA Assembly, Design Campo Largo, Brazil Center Assembly, Fabrications Thiruvallur, India Assembly, Fabrications Assembly, Design Center Caterpillar: Non- Confidential Market Share Speed of Change Margin C O M P E T I T I O N P H Y S I C A L C H A N N E L L O YA LT Y 55 competitors in China Outnumbered in physical Customer loyalty 35 in the U.S. channels 8 to 1 is Unacceptable Caterpillar: Non- Confidential Manufacturers Must Adapt to Retail Speed Employees will manage and Managers will see business results take action for their part of the in real time, and perform what if business in real time. scenarios to better manage business. Caterpillar: Non- Confidential Physical Channel First… Then Digital Channels 1 2 Using new digital Physical and digital capabilities to transform channels will be aligned the physical channel with business process and tools, so customers can go in and out of the different channels seamlessly Caterpillar: Non- Confidential Business Transformation Business Transformation Scope Retail Enablement Live Factory Customer Dealer PDC Factory Supplier 1010011010100101010101001101010010101010101R01EA0L10T1IM01E01D0A0TA10101010101010101010101010010101010101010011 Caterpillar: Non- Confidential Business Leaders Must Have Live Digital Board Room Plan Results Results Plan Digital Network Digital Customer $$ Dealer Customer Digital Supply Network Live Factory Digital Core Execution Source/Make/Deliver Retail Strategy Caterpillar: Non- Confidential Business Leaders Must Own Transformation IT Solution Business Transformation • Long Development and Deployment Cycle • Short Projects – Solve Specific Business Goal • About the Technology and Software • About the Customer • Development Focused • Out of the Box Solution • Perfection vs Progress • Results Focused • Perpetuity • Productivity Caterpillar: Non- Confidential