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- Owens-Corning Success Story
- HP's consulting solutions for Owens-Corning
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- [Figures (if any) appear in document image only]
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- 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."
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- "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."
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- Bill Whitten
- Senior Specialist for Technology Assessment and Planning
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- 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."
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- 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."
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- 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."
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- 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.
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- UNIX is a registered trademark of UNIX System Laboratories Inc. in the
- USA and other countries.
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- Technical information in this document is subject to change without
- notice.
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- (c) Hewlett-Packard Co. 1992
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- Printed with soy-based ink.
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- Printed in USA 07/92
- Support
- 5091-4678E
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