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Case Studies

Single System Success

Avago and Oracle Consulting handle an accelerated implementation.

By Karen J. Bannan

July 2007

Consulting Story Art
Avago Technologies, which manufactures analog, mixed signal, and optoelectronic components and subsystems for the industrial and automotive, wired infrastructure, wireless communications and computer peripherals markets, faced challenges when it needed to separate its applications and systems from its former company after it was acquired by two private equity firms in 2005. In addition, Avago wanted to upgrade its software to expand its enterprise resource planning (ERP) footprint, streamline operations, and leverage the latest versions of various Oracle applications.

The firm's goals focused on implementing a single system that could provide real-time data throughout its supply chain within a few minutes and provide customers with the best service possible. In 2006, Avago decided to install the latest version of Oracle E-Business Suite with the help of Oracle Consulting. Executives report that they were able to work faster and smarter with Oracle Consulting compared to selecting a third party consulting firm.

Learn how Avago was able to implement Oracle E-Business Suite 11 5.10, before deadline and without going over budget. The software combined with new hardware has enabled Avago to reduce its advanced planning runtime in half and enhance productivity.

While it may be fairly easy to change a company name on a paycheck, changing your software to reflect your current company—and severing ties with your previous company—isn't easy. But last year Avago Technologies, which manufactures analog, mixed-signal, and optoelectronic components and subsystems for the industrial and automotive, wired infrastructure, wireless communications, and computer peripherals markets, faced this exact challenge. Avago started as HP's semiconductor arm and then was spun off as part of Agilent Technologies. In 2005 the semiconductor business was purchased by two private equity firms: Kohlberg Kravis Roberts & Co. and Silver Lake Partners, which called this new business Avago Technologies, coheadquartered in Singapore and San Jose, California. The company needed to separate all of its applications and systems from Agilent's infrastructure as well as upgrade its software to streamline operations, expand its enterprise resource planning (ERP) footprint, and leverage the latest versions of several Oracle applications.

Snapshot
Avago Technologies
Net revenue:
US$1.6 billion, FY 2006

Oracle products and services:
Oracle E-Business Suite, including Advanced Planning Suite, Financials, Procurement, Shop Floor Management, Order Management, Logistics, Warehouse Management, Product Lifecycle Management, and Sourcing; Oracle Consulting

"Avago's primary objective was to become totally independent from Agilent's systems, improve our own capabilities, and improve our system performance," explains Hong Siew Lim, project manager for the ERP Governance and Support Division of Avago, based in Penang, Malaysia. "We had an eight-month implementation plan with a major big bang separation from Agilent from a system and infrastructure standpoint. We upgraded our software at the same time we were expanding our footprint and continuing to maintain our leadership in supply chain performance."

 

A Big Bang

Avago Technologies began 2006 with Oracle ERP and legacy systems that hosted a significant number of applications. Its New Year's resolution was to install the latest version of Oracle E-Business Suite. The company had a goal of providing real-time information throughout its supply chain, explains Hock-Leng Lee, end-to-end manufacturing lead at Avago.

 

"We wanted a single system that could return information within a few minutes—inventory, orders, and related documents. We wanted our customers to have the best service possible, no matter how they contacted us," he says. Avago executives decided to look outside the company for additional expertise.

Avago Technologies (as part of Agilent Technologies) chose Oracle Consulting in the 2000-to-2002 time frame, when it first installed several Oracle ERP applications, so Avago knew that Oracle Consulting could implement software from the ground up. This time the process would be more arduous, but Avago executives were confident because they knew no other company had as much expertise implementing Oracle products, explains Lim.

"In 2000 we knew that the people who would know the most about Oracle ERP and Oracle E-Business Suite 11i would be Oracle consultants," Lim says. "We needed the key consultants who were the most knowledgeable about the ERP modules in Oracle E-Business Suite 11i, especially since we were implementing relatively new modules."

Lee agrees. "We knew we could work faster and smarter if we worked with Oracle Consulting rather than going with a third-party consulting firm," he says. "We have a rather complex business process that touches almost every function—from customer-facing applications to manufacturing to our employees—so we knew we needed someone who would do things right the first time."

Company executives also wanted consultants who were familiar with the semiconductor business—how its environment develops and changes and how its supply chain works. They got that and more, both Lee and Lim say.

Photography by Shutterstock