Asia Pacific OEM

FY11 Thailand Meeting

February, 2011

INDIA

Copyright © 2009 Rockwell Automation, Inc. All rights reserved.

OEM Market Access
Distribution Outlook

Demographics 2010 2014 (est)

Number of APRs 27 >40
Number of Locations 18 >35
Number of Owners 13 <6
% RA India total sales 35% 55%
RA as a % of Distributor sales >90% <70%
Trace / Compliance 100% 100%

Total Distributor Resources FTY10 – 169 22

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CopyrightAutomation, Inc. AllAutomation,
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reserved.
OEM Market Access
Where are we…….

We can still make this B&R

Schneider happen by leveraging our  Team : > 60
 OEM Team : > 80 unique distribution model  Sales :10 MUSD
 Sales : 12 MUSD  MA : Direct
 MA : > 60 SIs
Rockwell
 OEM Team : 10+11
 Sales : 20 MUSD
 MA : > 18 Dist & 50 SIs

Siemens
Mitsubishi  Team : > 100
 Team : > 150  Sales : ?? MUSD
 Sales : 30 MUSD  MA : > Direct + 50
 MA : > Direct + 35 SIs SIs

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 3

Distributors : Key to OEM Success

• Amplifier
– Capacity
– Effort
• Ensure Sustenance
• Enable Growth and Scale up possibilities

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 4

Distributors stake holding
Who Matters for OEM Business?

No. Of FY10 FY11 PLAN %

Distributor APR
Accounts (MUSD) (MUSD) GROWTH

AD Mumbai 25 0.86 1.24 44.7%

• Distributors – 10
• Locations - 13
Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 5
Expectations to Generate Amplification

DISTRIBUTOR RA TOTAL
FY11
FY10
REGION PLAN T1 TT1
(KUSD)
Sales OTC Sales BDM/KAM OTC Sales BDM/KAM OTC (KUSD)

West

10 26
Mumbai (AD) 3 3 1 2 4 5 899 1,505

• Must Achieve to ensure Sustenance, Growth & Scale up

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 6
Role Play of Channel & RA OEM Team
Tier – 1 Account

• Tier -1 Engagement
– Channel OEM Sales & OTC team to take over and help Disengage RA
Sales/GOTCs from Tier – 1 OEMs from existing established annuity………
ATTRIBUTES
‘KEEP’ Machines
– Account Ownership, Sales Discipline, Supplies, Inventory, Spare parts, Support,
Services…. All business deliveries to be owned by Channel OEM Sales
resources supported by Channel OTCs
– Create and maintain clear OEM PROFILES for each of the assigned accounts
and strategize the OEM/Machine share enhancement plan in collaboration with
respective RA OEM Sales Manager
– Channel Sales Resources backed by Channel OTCs to lead effort in enhancing
the OEM/Machine share in component requirements
WAY FORWARD
– RA OEM Team & GOTCs to lead effort in enhancing OEM/Machine share in
Architecture class requirements, including first time conversion
– RA Sales team to support high level engagement, High level relationship and
supervise account portfolio to continually enhance RA foot print
– RA OEM sales Managers will be the first point of escalation for Channel Sales
Resources and the OEM in case of any problem

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 7

Role Play of Channel & RA OEM Team
Target Tier – 1 Account

• Target Tier – 1 Engagement

– Channel OEM Sales resources to follow-up the assigned OEM accounts on
regular basis and create the relationship and first level
ATTRIBUTES
– Channel Sales resources will be responsible for creating and continually
maintaining OEM profiles for all assigned Target Tier -1 OEMs.
– Channel Sales Resources in collaboration with the RA OEM sales Managers will
prepare a clear strategy and action plan based on the OEM profile
• Channel Sales Resources backed by Channel OTCs will lead effort in
Component Class Requirements
• RA OEM sales Managers to lead effort in Architecture class machines,
supported by GOTCs for first time conversion
WAY FORWARD
– Channel sales resources to leverage best practices and proven competencies in
proven applications by way of utilizing the sales tools like SDPs and OVPs
– Channel Sales resources will be responsible to keep efforts on converting the
Target Tier -1 to Tier -1 accounts by way of establishing the annuity in focus
machines/applications.
– Channel sales resources to continually find new customers and add to Target Tier
-1 club to keep a healthy pipe line of development accounts in their respective
APRs
Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 8
 OEM/Machine Share Enhancement
Key to Success

• Typical Machine/OEM Share Matrix

Qty/ $$/ Total
Machine Model Application Year Machine $$ PLC Motion HMI VFD

3-AXIS Logipac-22S Soap 15 9387 140805 RA RA RA RA

4-AXIS WRAPPER 6000-T Biscuit 15 9889 148335 RA RA RA RA

7 AXIS LOGIPAC 51-E Biscuit New 16033 RA RA RA RA
7 AXIS WRAPPER 8000-T Soap New 14979 RA RA RA RA
Wrapper 4000T Biscuit 60 1225 73500 GE GE GE SE
Logipac 11S Small Soap 60 1225 73500 GE GE GE SE
Ipack 21 E Soap 60 1225 73500 GE GE GE SE
Rim Packaging Machine Paper Rim 5 11200 56000 MELCO MELCO MELCO MELCO

ABM - 1000 Soap 100 450 45000 MELCO NA MELCO MELCO

M800 Focus : Component M800 + K300 Focus :

Existing RA Share to KEEP : Architecture Class : To be Component Class Machine to
Class Machine to be lead by
Channel Sales Resource to Lead by RA OEM Sales be lead by channel OEM Sales
Channel OEM Sales
own Managers Resource
Resources

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 9

Competency Development
Channel Sales Resources

• OEM Team will support develop competency for channel Sales

Resources in the following areas –
– Orientation on Customer profile sheets
– Orientation on using SDPs (Solution Development Prompters) and OVPs (OEM
Value Propositions)
– Commercial Good Practices Orientation
• OEM Rate Contracts
• Holistic OEM Account Management

• Product & Soft skill trainings will not be part of RA OEM Team
responsibility

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 10

Competency Development
Channel OTC Resources

• OEM Engagement Team will run following Trainings to develop channel

OTC competencies –
– “Channel OTC Workshops” once in every quarter to develop application expertise
(Application training and not product training)
– Motion basic fundamentals and usage of Motion Analyzer to empower create
optimized OEM application solution
– Power Programming fundamentals and structured programming code approach as
part of best Technical practices
– RA OEM Application development and execution process orientation to ensure
consistent execution methodology/delivery across RA as well as channels (FDS, Off
Line Programming, Simulation Tools, On Machine Execution, Project Scheduling
and management tools……..)
– Orientation on SDPs & OVPs

• Product Trainings Will not be part of OEM Engagement Team

Responsibility
Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 11
OEM Agenda

3. The Process to follow for SUCCESS

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 12

OEM What is the “ideal” Tier 1 OEM
strategy?
• Base criteria needs to be that it fits our basic Annuity OEM model :
(“Repeatability”, "Standardized", "Repetitive", "Preferred Vendor").
• Revenue - Annual Potential in Automation is significant ($200K+)
– Annual Potential = $/Machine X Estimated Machines/Year
• OEM’s servicing focused segments in A-P: M&A; CPWT; Packaging.
• OEM’s servicing Global Accounts and Tier 0’s.
• OEM’s exporting outside their country (ideally U.S., others good).
• Important RA customer in one geography moving into a new country/geography
(i.e. LMW, ELGI, ATS, many others). Our competition does not do this well.
• Identified as a Machine Builder with mechanical capability to become an industry
leader (automation can be a differentiator).
• GOTC or OTC evaluation and/or engagement.
• Extended Team analysis: GOTC Lead & country OEM Sales Mgrs:
– OEM Profile with a mutually agreed upon Business Plan
• Case-by-case consideration of significant Components and other opportunities
(i.e. we must leverage good automation OEM’s for safety, pushbuttons, terminal
blocks, etc.) Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 13
OEM Life Cycle of an OEM Annuity
Engagement
• BDM has identified application within account / potential volume/value in vertical (part of the larger list)
• In a quarterly review with Sales & OEM Team decision was made to put this account into the Target List
• Account Manager is assigned to scope account
– Typically 3-6 months effort with 1-2 Visits per month
– Establish Account Plan (introduction of Products, Technologies, Rockwell way of operation in OEM)
– Determine coaches – Sales, Engineering, Purchasing
– Identify Business Model of OEM
– Determine Differentiator (find pain points of customer or use differentiation from other OEM reference cases – OEM website access for all
ACMs?)
• At respective Intervals we plan reviews (quarterly / on a by-call basis) of the Business Cases
– At review we plan decision for Engagement yes-no (Account Manager, RSM, OEM Sales Manager, Project Manager / GOTC-Lead)
– KPIs acknowledged and agreed by customer / Commercial – Account Manager / Technical Project Manager / GOTC Lead
• Engagement is managed by GOTC-Lead with n GOTCs
– Account Manager stays engaged, oversees KPI’s Commerical are met
– GOTC-Lead reviews Technical KPIs and leads GOTCs’ assignment

Machine
& Account Profiling /
Targeting Qualification Engagement
Prioritization
Identification

OEM Target Database Profile Database Funnel Database

Funnel Quality Parameters

• Customer Access
• Return vs. Invest
• Support Strategic Vertical
• Strategic Application

• Drive OEM Market Share

• Accessible Volume

FY08 1000 Targets  FY09 5000 Targets FY08 200 new Opportunities  FY09 1000 Opportunities FY08 60 new Engagements  FY09 200 Opportunities
BDM

OEM Business Manager (Country)

Industry Sales Manager

RSM / Branch Manager

Account Manager

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 14

OEM Ideal Scenario (Sample)
Step I – Identification/Profiling

• Account Manager has an OEM as a Target customer to develop:

– The following Data should be established through the first set of meetings (1-3):
• The Key Contacts
• The Business Opportunity (Volumes / Markets / Infrastructure) / the Business
Model of the customer
• A Coach within the customer
• An interest with the customer (References / Some Technology and Market
Benefits conveyed to the customer)
• Supported by BDM’s/OEM Sales Mgr /BU – TC/Channel/ …
• Ideally, result is 80% of the Profile Data established / Good Feeling to
succeed at this customer
• Before we proceed further into the OEM development cycle an OEM Profile
must be completed and reviewed with the OEM Team.

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 15

OEM Ideal Scenario (Sample)
Step 2 – Profiling/Business Case

• Second stage of profiling is to provide all data required for a Business

Case (only if Step 1 is promising and agreed upon by all)
– The following Data should be established through the next set of meetings (1-3):
• The key opportunity to access (specific machine)
• Our competitive situation (architecture/benefits/solutions analysis)
• An Understanding of our likelihood of success. Do we have a good chance?
• An Understanding of the work that needs to be done / An Understanding of
our values that we will create (Commercial and Technical KPI’s)
• A proposed game plan (Account Plan, internal) to win and sustain the OEM for
the long-term. Sales & GOTC to develop a Value Proposition
• A strong interest within the OEM to work with RA. Does OEM agree with our
Value Proposition?
• Supported by BDM / OSM / Channel / GOTC-Lead / GOTC / Project Manager
• Result is 100% of the Profile Data established / A White Paper of the
Application / Architecture Drawings / Some Key Functionalities / Sizing / BOM
completed / Account Plan for the next 2 years (tentative)
Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 16
OEM Ideal Scenario (Sample)
Step 2 – Business Case / Decision to Engage

• The OEM Sales Mgr and GOTC-Lead will drive the decision to engage
– Based on the Business Case / Resource Availability / Success Factors
– Supported by Account Mgrs / GOTC’s / Project Mgrs

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 17

OEM Ideal Scenario (Sample)
Step 3 – Engagement

• We have made the decision for investment and to engage GOTC

– The GOTC-Lead or PM lead the Engagement Process linked with the Account Mgr
• Investment Time is measured within Time@Work
• Investment $$ is quantified by GOTC-Lead
• Account Mgr supervises the engagement and monitors “his” investment
• Account Mgr has to “own” the customer and take responsibility for scope
– Changes of Architecture / Scope / Functionality
• Are identified and decided by the GOTC / GOTC-Lead
• Are communicated back to the Account Mgr
– Typical Timing
• 6 months – 12 months (but time and scope limited)
• Supported by Channel (in the later stages)
• Continuation model beyond Investment already identified

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 18

OEM Ideal Scenario (Sample)
Step IV – Continuous Account Handling

• Continuous Account Management

– Owned by the Account Manager
• No GOTC Time without working with GOTC Lead
• GOTC should work on identified scope or development stages
• Account Mgr and GOTC should create separate Business Cases for
expanding (Z1 or Z2 opportunities) the work at the account
• Machine Share is critical. Get the next machine, the next machine, the……..
• Have a plan in place to get the next machines.
• It is much, much easier to get new business from an existing customer than to
find and develop new customers

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 19

OEM Do’s and Don’ts for Account Mgr

• Do’s
– Profiling of opportunity
– Must stay engaged during Technical
Engagement Process
– Develop Business Value Proposition (get
help from BDM/ISM or GOTC if needed)
– Commits, promotes and sells the GOTC
Value to Account
– Understand the Market / Competitors /
Business of the Account and the
Commercial Value of a Machine sold by
the customer
– SPRA Owner
– Channel Owner
– Logistics Owner
– Looks for more opportunities in the
account for Z2 and Z1 expansion
• Don’ts
– Never, ever make a quotation during the
first 3 visits (typically)
– Commits lump sum time of GOTC to
account (e.g. 4 weeks for free)
– Needs to understand the functional detail
of a specific machine
– Stops visiting the customer during
technical engagement
– Relies on channel to manage the
account

Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 20

OEM Do’s and Don’ts GOTC
• Do’s
– Owns a Technical Engagement
– Develops best Practices
– Helps develop a Commercial / Technical Value
Proposition, owns the technical part of the
development
– Holds presentations
– Supports generation of BOM / Architecture,
will in absence of SBU Technical Consultant
also create a BOM on his own (supported by
Regional Team / focus on future build-out of
SBU resources)
– Will involve Subject Matter Experts where
required through GOTC Lead or Project /
Program Managers
– Will be involved in the Commercial
Presentation
– Understands and communicates Business
Values
Copyright © 2009 Rockwell Automation, Inc. All rights reserved.
• Don’ts
– Is a free service to the customer
– Starts a technical engagement without
analysis
– Starts a technical engagement without
agreement with the Commercial Owner
– Will always update the Commercial
Owner throughout his work in the
complete lifecycle of the engagement
(bi-directional exchange)
– Will be the Technical Support Desk for a
customer
– Will prepare every BOM for the customer
during or after the Engagement Cycle
21
 Thank You

Copyright © 2009 Rockwell Automation, Inc. All rights reserved.