Owens-Corning Success Story HP's consulting solutions for Owens-Corning [Figures (if any) appear in document image only] Meeting business needs with the open software environment approach For Owens-Corning Fiberglas Corporation, the Toledo, Ohio-based world leader in fiberglass manufacturing, restructuring operations has helped offset declining product sales volume and prices. Through aggressive cost-cutting and organizational streamlining, the company, which generated $2.8 billion in sales in 1991, continues to improve its productivity and gain market share. Facilitating these changes is the company's recent shift to open, distributed computing. Offering dramatic cost savings, open systems will more importantly transform the company's information systems into a competitive weapon for strategic planning, opening vast new business opportunities. The HP Open Software Environment (OSE) Software Architecture workshop helped Owens-Corning take the important first steps toward open systems. Just 1 year later, Owens-Corning, in partnership with HP, delivered its first object-oriented client/server application operating on a UNIX(R) platform, a goal the company had struggled with for 5 years. Owens-Corning primarily manufactures insulation, roofing, and reinforcement materials in its 54 plants worldwide. A decade of market fluctuations in the construction and industrial markets and a 1986 recapitalization to avoid a hostile takeover led to a complete restructuring of operations. Says Bill Whitten, specialist for technology assessment and planning, "As we began divesting ourselves of various business units and downsizing others, we ran into incredible difficulties getting our mainframe-based systems to adapt." Owens-Corning trimmed one of its distribution operations by 75 percent, but its customer support system was still geared to a large operation. Paring it down cost the company substantial time and money. Owens-Corning could no longer afford information systems that, in effect, limit its business options. Continues Whitten, "We made the decision to migrate to open systems 5 years ago. And for 5 years we saw almost no progress. Like many companies, we run a pretty lean operation. We have had our mainframe-based information systems for nearly 30 years, and most of our work up to now had focused on extending our existing application portfolio. This means we had relatively little opportunity to develop new systems. We knew we wanted to move to open systems, but we didn't know where to start." "We had tremendous support from HP's consultants in actually implementing this system. But above that, the HP OSE Software Architecture workshop identified all the work that had to be done, so we have had very few surprises along the way." Bill Whitten Senior Specialist for Technology Assessment and Planning Leveraging expertise Lacking sufficient resources, experience, and time, Owens-Corning looked outside for help. After talking with several companies, Owens-Corning chose to work with HP because of its reputation for system independence and expertise in nonproprietary systems. By tapping into HP's experience in building open systems, its consulting methodologies, and its global support resources, Owens-Corning ensured that the new system design would address the company's evolving business needs. Says Whitten, "After just a few meetings with HP's consultants, it became clear we were both singing out of the same hymnal, so we signed up for the HP OSE Software Architecture workshop to complete our thinking about open systems and, more importantly, develop a plan on how to get there." Planning for success Working with Owens-Corning information technology planners, HP's OSE consultants assessed the company's current and future information technology needs in the interactive 2-day workshop. Together the team drafted a customized open systems architecture that enables Owens-Corning to more easily scale and change its information systems as business and customer needs dictate. The team also developed a migration plan, which protected the company's past investments in a mixed computing environment of HP 3000 systems, HP 9000 systems, IBM mainframes, and IBM PCs. The plan also maximizes the value of future investments. At the end of the workshop, the team had a comprehensive open systems implementation plan for migrating to a client/server, object-oriented software development and distributed computing environment. This detailed, 2-year plan identified the specific tasks and potential pitfalls for Owens-Corning as it implements its new information systems architecture. Says Whitten, "What really appealed to us about the HP OSE Software Architecture workshop was that it was customized for us, so we could concentrate on the parts of open systems and the migration to open systems that we felt weakest in. Our questions drove the program, and HP's experienced consultants raised other important issues we hadn't even considered. When we left the workshop, we had a clear idea of what we had to do." Enhancing return on investment Following HP's implementation guidelines, Owens-Corning is now working with software vendors to adapt their technologies to this distributed, open architecture. In the long run, this multiyear conversion project is expected to reduce hardware and maintenance costs by 30 to 40 percent. Says Whitten, "Where we believe the real payoff will come is in a major reduction in application maintenance. Right now about 65 percent of our so-called applications development budget is devoted to just keeping our systems running, translating to about $10 million per year. We believe that once we replace our current portfolio, we should be able to drive that to near zero. For the first time, we'll be able to apply consistent, rational management and administration strategies across applications. This will improve our application quality dramatically and expedite the delivery of information systems to address business needs." With increased system reliability, Owens-Corning is now building strategic applications, placing greater emphasis on customer service and more integrated support of its global operations. Concludes Whitten, "We had tremendous support from HP's consultants in actually implementing this system. But above that, the HP OSE Software Architecture workshop identified all the work that had to be done, so we have had very few surprises along the way. And that's remarkable considering that neither we, nor any of our other partners, had any experience outside of large multiple virtual storage (MVS) mainframe installations. On our own, we would have fallen into a lot of traps that the workshop and the planning meetings helped us avoid." HP's added value Owens-Corning used the HP OSE Software Architecture workshop to devise its framework for developing an open systems architecture, along with specific design guides, guidelines for selecting products and standards, and guidelines for incorporating new technologies. HP's consultants worked with Owens-Corning to steer the implementation process and provide technical advice as it was needed, enabling the company to quickly gear up its information systems organization. The workshop enabled Owens-Corning to break the logjam that had stalled its progress for 5 years and delivered a valid blueprint for future product deliverables that promise tremendous cost savings for the company. To find out how the HP OSE Software Architecture workshop and HP's consulting services can help you implement cost-effective open systems, contact your nearest Hewlett-Packard representative today. UNIX is a registered trademark of UNIX System Laboratories Inc. in the USA and other countries. Technical information in this document is subject to change without notice. (c) Hewlett-Packard Co. 1992 Printed with soy-based ink. Printed in USA 07/92 Support 5091-4678E