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Project Overview

Project Overview. Sun Microsystems Analysis Term Paper Alexander Shusta. Industry Definition and Overview. Enterprise level computer and accessory manufacturers. Major players in the industry – IBM, Sun, Hewlett Packard, Dell and Microsoft. Competition is generally:

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Project Overview

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  1. Project Overview Sun Microsystems Analysis Term Paper Alexander Shusta

  2. Industry Definition and Overview • Enterprise level computer and accessory manufacturers. • Major players in the industry – IBM, Sun, Hewlett Packard, Dell and Microsoft.

  3. Competition is generally: • Through differentiation • Across many markets • Supported by innovation and alliances.

  4. Conclusions: • Intra-industry competition is the number one source of pressure. • Commodification of IT related technologies is eroding margins.

  5. 400000 350000 300000 250000 200000 150000 100000 50000 0 1999 2000 2001 2002 2003 2004 Total Sales for Enterprise Computer Manufacturing In millions of $

  6. Sun Microsystems Profile • CEO: Scott McNealy • Last of the original founders still at Sun • Management style emphasizes company vision and allowing subordinates to create specific strategies • A true believer in technological advantage leading directly to competitive advantage.

  7. Senior Executives • Sun has 5 business units: • Marketing and Strategy • Worldwide Operations • Sun Services • Global Sales • R&D – Hardware, Software, and Storage Systems.

  8. Culture at Sun • Value is placed on innovation and technological solutions. • There is a strong bias against technology that was “not born here.” Use of IT to Gain Competitive Advantage • Driven by a recognized need to improve business processes. • Improved processes with: • tighter integration with suppliers, • better ability to forecast demand, • ability to present a unified face to customers.

  9. Business Process Analysis “It became very clear that we needed to pull the whole company, and all of its systems, to a common base. We needed to have a better handle on our data. We needed to be able to provide Sun Services, our Global Sales Organization, as well as our finance departments with a more macro-level picture of what was going on with our customers at any point in time.” - Michaele Rittenberg, VP of IT Strategy • Results of this Analysis: • Portals for Suppliers, Customers, and Sales Force. • Intranet for developers and production managers to give real-time info. • Sun Sigma program to implement Six Sigma controls on production processes.

  10. Conclusion • Sun’s Use of IT is Characterized by: • An executive team that publicly supports IT initiatives. • Strong employee buy-in of new systems (98% utilization rate for Sales Force Portal). • Funding availability for new IT initiatives. • Sun’s Business Processes have been a problem in the past, changes implemented: • Integration with OS’s besides Solaris: New N1 Services Procurement System runs on Solaris, Linux, and Windows XP Server emphasizing open standards and compatibility. • Acceptance of the value of other vendor’s technology. Ex. Partnership with AMD for new Opteron based servers.

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