A Siemens Enterprise Communications Company

“There is nothing more important than our customers”

What Mature S&OP Looks Like Delivering agility and upside from an Integrated Business Planning strategy

©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.2

About Enterasys

Leader in wired and wireless network infrastructure and security solutions

Consistent innovation: 800+ patents

Proven: 20,000+ customers

Solution selling: 500+ partners

Team: 1000+ technology and customer centric employees

Global presence: 5 continents, 90+ countries

©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.3

2004 Challenge: Keeping Balance

Informationnot timelyor accurateenough

Order delays

Sluggish market response

Excess

inventory

Long product

life cycle

Obsolescence

• Organizational Silos

Global Market Volatility

©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.4

Poll #1

What is your biggest planning challenge?1. Global volatility

2. Demand visibility

3. Supply excess

4. Collaborative planning and engagement

5. All of the above

©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.5

Strategy: Better Planning Visibility

Remove Shades of Gray

Lean transformation

Supply/demand balance

Better competitiveness

©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

Increased forecast predictability

Demand and Supply plans aligned internally and externally

Improved customer satisfaction

Reduced cash spend related to forecasting error

Integrated set of IT tools that includes an S&OP software

platform

6

Objective: Global Collaborative Demand Plan

©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.7

Embarking on the IBP Journey

©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.8

Year One: The Approach

Executive-Sponsored Collaboration • Sales, Marketing, Product Management,

Sales Operations, Finance and Supply Chain

Manage Information, Not Spreadsheets Normalize Data in Steelwedge

• SAP• Salesforce.com• Big Machines

Significant and Immediate Changes to the Business• Better demand predictability• Ability to respond to change

©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.9

Poll #2

What technology are you using for S&OP?1. Nothing2. Spreadsheets3. Existing ERP, SCM and/or CRM4. S&OP specific technology5. All of the above

©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.10

Enterasys in the Cloud: Quote to Demand

©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.11

Year One: Short Time to Measured Success

Near Real-Time Data Has it’s Advantages…

When products not selling as well as expected: Drove demand-shaping to stimulate sales

When products selling better than forecast: Reviewed sales data; determine growth

sustainability Faster reaction: checked manufacturers’

capacity to boost short and mid- term production

  The bottom line:

$3-4M saving/quarter from decreased excess and obsolescence inventory 

©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.12

Setting Up for the Long Term

Stay Committed to the Process Ongoing executive participation Try, fix, encounter change; try again

Continuous Improvement Learn from mistakes Bring lessons learned into new area of the business

NPI

Set Aggressive Targets Measure Adjust

 

Cadence, Methodology and Measurement for Continued Success

©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.13

Financial Plan

SCM Forecast

S&OP

Sales/Service & PM

ForecastRoles &

Responsibilities

Too

ls

Business Process

Co

llab

ora

tion

S&OP Working Model: Continuous Delivery

©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.14

Poll #3

How long have you been doing S&OP?1. Not using it

2. Considering it

3. Less than a year

4. Less than 10 years

5. More than 10 years

©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

7 Years Later: Continuing ROI from S&OP

15

3 years of continuous growth outperforming all other networking companies in 2011

Sustained > 14% growth in Ethernet switching

Sustained > 50% growth in WLAN business

High Net Promoter Score: 8.1

Sustained high global customer satisfaction: 95%

©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.16

1. Take measured steps- Take time to define each level of the process- Secure buy-in from stakeholders - Align to business objectives

2. Early engagement is important- Engage stakeholders up front - Promote active participation- Appoint program champions

3. Manage information- Create common nomenclature- Cross functional metrics and analytics- Integration of information flow

4. Power business process with technology- Technology plays an integral role when adapted to business process- Apply tools/applications to advance the maturity of the process- Continuous improvement

Implementation & Process: Lessons Learned

A Siemens Enterprise Communications Company

Thank You!

“There is nothing more important than our customers”