APAC CIOOutlook

Advertise

with us

  • Technologies
      • Artificial Intelligence
      • Big Data
      • Blockchain
      • Cloud
      • Digital Transformation
      • Internet of Things
      • Low Code No Code
      • MarTech
      • Mobile Application
      • Security
      • Software Testing
      • Wireless
  • Industries
      • E-Commerce
      • Education
      • Logistics
      • Retail
      • Supply Chain
      • Travel and Hospitality
  • Platforms
      • Microsoft
      • Salesforce
      • SAP
  • Solutions
      • Business Intelligence
      • Cognitive
      • Contact Center
      • CRM
      • Cyber Security
      • Data Center
      • Gamification
      • Procurement
      • Smart City
      • Workflow
  • Home
  • CXO Insights
  • CIO Views
  • Vendors
  • News
  • Conferences
  • Whitepapers
  • Newsletter
  • Awards
Apac
  • Artificial Intelligence

    Big Data

    Blockchain

    Cloud

    Digital Transformation

    Internet of Things

    Low Code No Code

    MarTech

    Mobile Application

    Security

    Software Testing

    Wireless

  • E-Commerce

    Education

    Logistics

    Retail

    Supply Chain

    Travel and Hospitality

  • Microsoft

    Salesforce

    SAP

  • Business Intelligence

    Cognitive

    Contact Center

    CRM

    Cyber Security

    Data Center

    Gamification

    Procurement

    Smart City

    Workflow

Menu
    • Automotive
    • Cyber Security
    • Hotel Management
    • Workflow
    • E-Commerce
    • Business Intelligence
    • MORE
    #

    Apac CIOOutlook Weekly Brief

    ×

    Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from Apac CIOOutlook

    Subscribe

    loading

    THANK YOU FOR SUBSCRIBING

    • Home
    Editor's Pick (1 - 4 of 8)
    left
    Augmented Reality and Virtual Reality

    Shekhar Chhajer, CIO South East Asia, India and CoC Sales Overseas, Mercedes Benz

    The Future of Automotives: Driven By People, Powered By Digital

    Raman Mehta, CIO, Visteon Corporation

    Balancing Information and Technology

    Dhruwa Rai,

    Using IT as a Competitive Advantage

    Klas Bendrik, CIO, Volvo Cars

    Systemize the Entire Solution Cycle

    Dennis Hodges, CIO, Inteva Products

    Innovation Driven by People with Excellent Ideas

    Mattias Ulbrich, CIO, Audi AG

    Technology Interwoven with the Fabric of Cars

    James Seevers, CIO & GM, Toyoda Gosei

    Coupling Predictive Demand Planning with CRM for Improved Visibility

    Aaron Weiss, VP and CIO, Axalta

    right

    Enabling an Automotive Strategy Compliant to Cloud Computing

    David Decker, CIO & VP-IT, Johnson Controls Automotive Seating

    Tweet
    content-image

    David Decker, CIO & VP-IT, Johnson Controls Automotive Seating

    Cloud computing is driving profound changes in the role of the CIO. Traditionally, CIOs were responsible for the day-to-day activities encompassing the entire lifecycle of information technology systems, including development, implementation, hosting, maintenance and renewal. Enabled in large part by the proliferation of cloud computing, our role is now migrating to that of a technical strategist who identifies and selects partners to help deliver information technology services to the business. However, it is important to take a thoughtful and measured approach toward migrating to the cloud. This is especially true in the automotive industry, where tight IT budgets and requirements for extremely high availability may rule out cloud applications in certain areas. Both the business and IT should carefully consider where not to migrate to the cloud. “Even more than in the past, automotive suppliers are being asked by their OEM customers to drive down costs” Even more than in the past, automotive suppliers are being asked by their OEM customers to drive down costs. Margins are continually squeezed and, as a result, budgets for new IT projects are carefully scrutinized. Automotive suppliers typically spend 1-3 percent of revenue on IT. At Johnson Controls, we carefully prioritize our IT work to ensure we spend the allocated budget on only the projects with the highest returns. While cloud computing has been around for years, the term became increasingly popular and CIOs really began to take notice of it in the late 2000s. This was true at Johnson Controls as well. The IT leadership team spent a week in Seattle and Silicon Valley meeting with Microsoft, HP and others to learn everything we could about the benefits and risks of cloud computing. We came back with a

    significantly more informed view of where Johnson Controls can most benefit from cloud computing, and, perhaps more importantly, where we should stay away. This helped me put together our Automotive IT strategy in relation to cloud computing. In our Automotive Seating Business Unit, we have taken a measured and practical approach to the cloud. Our IT dollars are focused on helping us produce the highest quality automotive seats and seating components at the lowest possible cost. We ship our products, in particular our seats, just-in-time to our OEM customers. To keep costs down, we strive to limit our inventory and therefore assemble our seats just-in-time as well. From the time we receive the broadcast information from our customer’s assembly plant, we typically have only a three- to four-hour window in which to assemble and ship. Therefore it is absolutely critical that all our systems have six-sigma levels of uptime. For this reason we have adopted a strategy of ensuring each plant can continue running, uninterrupted, in the event of a wide-area network outage. And it is for this reason that we are presently avoiding cloud-based computing for our Manufacturing Execution Systems, which provide real-time control and analytics for production of our seats and seating components. Where we do see value, however, and where we are pursuing cloud computing is around employee and productivity systems. In another manufacturing example, our Human Resource business partners came to us to help them resolve a number of issues with a legacy timekeeping system across our JIT seating plants in North America. These were basically stand-alone systems located in each plant, each instance of which required its own server, licensing, maintenance, upgrades, etc. When we took a look at our options, it was an obvious choice to implement the latest cloud-based version of this application. Aside from replacing time clocks in each of the plants, nothing was installed in our manufacturing facilities and all software was in the cloud. Deployment costs and timing were reduced significantly. Not only did we retire 40 servers across the plants, and benefit from the reduced maintenance costs, we avoided spending capital on the associated hardware upgrades. This system has been considered a success for Human Resources and for IT, and I refer to it as our “quietest launch ever.” Another example is our migration to Microsoft Outlook. When Johnson Controls decided to move to a new email and office productivity suite, we debated on-premise vs. cloud. After reviewing the Office 365 product in depth, that’s what we chose. Implementation was significantly easier, as we shifted the burden of hosting, security and managing upgrades to Microsoft. Similarly, when we looked at upgrading our Human Resources management system a few years ago, we chose the cloud-based subscription service from Workday. Once again, this greatly simplified our deployment, and in both cases, new releases are practically a non-event. While industry trade journals and many consultants and vendors are advocating a no-holds barred rush to the cloud, practical CIOs in manufacturing should take a thoughtful and measured approach, considering not only their limited IT budgets, but their business partners’ and customers’ appetites for risk. This will help ensure they remain relevant by adopting cloud computing where it makes the most sense, and by avoiding it where it will put their company, and their customers, at risk.

    tag

    Cloud Computing

    Information Technology

    inventory

    Human Resource

    Weekly Brief

    loading
    Top 10 Automotive Technology Companies - 2019
    ON THE DECK

    Automotive 2019

    I agree We use cookies on this website to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies. More info

    Read Also

    Artificial Intelligence - Myths And Truths

    Artificial Intelligence - Myths And Truths

    Geraldo Pereira Junior, Chief Information Officer, Ypê
    Sustainable Future through Innovative Technology Solutions

    Sustainable Future through Innovative Technology Solutions

    Faisal Parvez, Director, BT Business CIO
    The Future Relies on Augmented AI

    The Future Relies on Augmented AI

    Laurent Fresnel, CIO, The Star Entertainment Group
    Digitalization with the use of digital technologies/Improving business through digital technologies

    Digitalization with the use of digital technologies/Improving business through digital technologies

    Wilbertus Darmadi, CIO, Toyota Astra Motor
    How Marco's Pizza Leaned On Technology To Succeed Amid The Pandemic By Quickly Pivoting To Contact-Free Delivery And Curbside Carryout

    How Marco's Pizza Leaned On Technology To Succeed Amid The Pandemic By Quickly Pivoting To Contact-Free Delivery And Curbside Carryout

    Rick Stanbridge, VP & Chief Information Officer, Marco’s Pizza
    Bunnings  Diy Digital Transformation

    Bunnings Diy Digital Transformation

    Leah Balter, Chief Information Officer, Bunnings
    For a Smarter City: Trust the Data, Ignore the Hype

    For a Smarter City: Trust the Data, Ignore the Hype

    Brad Dunkle, Deputy CIO, City of Charlotte
    Smart Community Innovation for the Post Pandemic

    Smart Community Innovation for the Post Pandemic

    Harry Meier, Deputy Cio for Innovation, Department of Innovation and Technology, City of Mesa
    Loading...
    Copyright © 2025 APAC CIOOutlook. All rights reserved. Registration on or use of this site constitutes acceptance of our Terms of Use and Privacy and Anti Spam Policy 

    Home |  CXO Insights |   Whitepapers |   Subscribe |   Conferences |   Sitemaps |   About us |   Advertise with us |   Editorial Policy |   Feedback Policy |  

    follow on linkedinfollow on twitter follow on rss
    This content is copyright protected

    However, if you would like to share the information in this article, you may use the link below:

    https://automotive.apacciooutlook.com/ciospeaks/enabling-an-automotive-strategy-compliant-to-cloud-computing-nwid-667.html