© 2012 Steelwedge Software, Inc. Confidential. 1 Plan. Perform. Profit.
7 Process and Technology Tips for 2013
Single Line of Sight: Plan, Perform, Profit
© 2012 Steelwedge Software, Inc. Confidential. 2 Plan. Perform. Profit.
Agenda
• Research Roundup • Seven Key Process and Organization Capabilities
for Organizations • Seven Key Technology Capabilities • Summary
© 2012 Steelwedge Software, Inc. Confidential. 3 Plan. Perform. Profit.
The Agility Gap How good are you at responding to rapid change?
90% Agility is crucial to business
27% Are good at agility
*May 15 S&OP Agility Research, Supply Chain Insights
© 2012 Steelwedge Software, Inc. Confidential. 4 Plan. Perform. Profit.
S&OP Progress Rate Your Enterprise’s 2012 S&OP Progress:
23% 56% 13% 08%
A lot A little Not at all We lost ground
*Nov 27 2012 Steelwedge Agility Research
© 2012 Steelwedge Software, Inc. Confidential. 5 Plan. Perform. Profit.
Responsiveness How challenging are mid-cycle changes to your planning process?
27% 41% 31%
Extremely Rather Somewhat No Problem
01%
*Nov 27 2012 Steelwedge Agility Research
© 2012 Steelwedge Software, Inc. Confidential. 6 Plan. Perform. Profit.
Do you connect volume to mix in the planning process?
Mix Management
16% 13% 10%
Yes by cobbling together
spreadsheets
Yes using purpose
built S&OP technology
No we plan at the mix level
No we plan at the volume
level
62%
*Nov 27 2012 Steelwedge Agility Research
© 2012 Steelwedge Software, Inc. Confidential. 7 Plan. Perform. Profit.
How do you facilitate collaboration through your process?
Collaboration
34% 9% 36%
Manual workflow - one set of business
rules
Manual workflow - multiple sets of business rules
Automated workflow
Execution is inconsistent at
present
21%
*Nov 27 2012 Steelwedge Agility Research
© 2012 Steelwedge Software, Inc. Confidential. 8 Plan. Perform. Profit.
Risk Management How effective is your S&OP Process in risk management?
09% 46% 44% Excellent: very
effective at anticipating and
recovering
Very Good: effective at
sensing changes and responding
Good: we’re inconsistent
fundamentally and in our response
Weak: we do not anticipate and respond
well to changes
01%
*Nov 27 2012 Steelwedge Agility Research
© 2012 Steelwedge Software, Inc. Confidential. 9 Plan. Perform. Profit.
Agenda
• Research Roundup • Seven Key Process and Organization Capabilities
for Organizations • Seven Key Technology Capabilities • Summary
© 2012 Steelwedge Software, Inc. Confidential. 10 Plan. Perform. Profit.
Tip #1: Don’t Get Stuck in Control Mindset
The Growth Paradox February 2012
Chris Turner, Principal, Stratabridge
• Genesis of S&OP founded on control. Great in a static environment
• But with volatility and internal change, can you afford a control focus?
© 2012 Steelwedge Software, Inc. Confidential. 11 Plan. Perform. Profit.
Tip #2: Leverage Similarities in S&OP Approach S&OP Agility Webinar
March 2012 Tom Wallace, author, educator and founder TFWallace.com
• Learn from horizontal best practices • Recognize S&OP’s applicability:
– From earnings reporting – To New Product Introduction – To units measurement
• Then, adapt to your specific needs
© 2012 Steelwedge Software, Inc. Confidential. 12 Plan. Perform. Profit.
Tip #3: Balance Your Planning Like an Athlete: Build Flexibility, Strength and Balance
How S&OP Drives Agility May 2012
Research Findings of Lora Cecere, Founder of Supply Chain Insight
© 2012 Steelwedge Software, Inc. Confidential. 13 Plan. Perform. Profit.
• Today, S&OP landscapes are more complex. It is not a bell curve. The average company now has five S&OP processes. Eight years ago there was one.
• Today, a company is 5X more likely to have a supply chain center of excellence than eight years ago. However, there is still a large gap in the effectiveness of S&OP.
• 90% of companies surveyed believe that a mature S&OP improves agility. However, only 13% of companies have effectively tied S&OP planning to execution.
Key Findings
© 2012 Steelwedge Software, Inc. Confidential. 14 Plan. Perform. Profit.
Tip #4: Confront Conflicting Goals
Are Your Ready for the Sea Change in Supply Chain Strategy? April 2012
Roddy Martin, SVP Supply Chain Transformation Competitive Capabilities International
• Balance goals across the organization:
– Finance: control operations – Operations: minimize demand uncertainty – Supply chain: Minimize risk and disruption – Sales and marketing: guarantee product availability
© 2012 Steelwedge Software, Inc. Confidential. 15 Plan. Perform. Profit.
Tip #5: Make Change a Routine Part of Organizational Life
Improving Agility in Business Planning June 2012
Eric Deutsch, Partner Oliver Wight
• Reduce or eliminate organizational trauma that paralyzes
many businesses attempting to adapt to new markets and environments
© 2012 Steelwedge Software, Inc. Confidential. 16 Plan. Perform. Profit.
Tip #6: Pick the Right S&OP Practices for Your Organization
7 Practices of Effective S&OP August 2012
Peter Bolstorff, Author and Educator
• Systematic management of ‘master data’ • Synchronized tactical, and execution planning processes &
horizons • Mature collaboration • Data oriented understanding of the inputs to the forecast • Intense focus on ‘point-of-sale’ or ‘sell through’ data • Disciplined product life cycle management process • A continuous improvement approach to understanding consumer
or user behavior
© 2012 Steelwedge Software, Inc. Confidential. 17 Plan. Perform. Profit.
Tip #7: Continue to Gain Value from S&OP Foundation
What Mature S&OP Looks Like: Enterasys Case Study
October 2012 Jack Lyon, Vice President of Operations, Enterasys Networks
• Crawl, Walk, Run methodology for continuing, incremental success
• Master Data Management to connect and harmonize vital on-premise and cloud based data
• Putting the Cloud to work for better scalability
© 2012 Steelwedge Software, Inc. Confidential. 18 Plan. Perform. Profit.
Agenda
• Research Roundup • Seven Key Process and Organization Capabilities
for Organizations • Seven Key Technology Capabilities • Summary
© 2012 Steelwedge Software, Inc. Confidential. 19 Plan. Perform. Profit.
7 Key Technology Enablers Adapt and Automate Your Unique Process Act Faster with Analytics Mobilize your Planning Leverage the Power of the Cloud Reduce Time to Value Create a High Resolution IBP Process Accelerate Time to Value
© 2012 Steelwedge Software, Inc. Confidential. 20 Plan. Perform. Profit.
Adapt and Automate Your Unique Process
Build Your Own Business Planning App
© 2012 Steelwedge Software, Inc. Confidential. 21 Plan. Perform. Profit.
Steelwedge Business Apps
21
Inventory Segmentation
Stocking Strategy
Demand Pattern Segmentation
Inventory Segmentation
Service Level Planning
Demand Policy Company-specific
Processes
Build Your Own Business Apps
© 2012 Steelwedge Software, Inc. Confidential. 22 Plan. Perform. Profit.
Take the efficient approach Understand Complexity and Its Impacts
Volatility
Imp
ac
t
Statistical Forecast with
Exception Monitoring
Collaboration with
Exception Monitoring
Stocking Strategy: Min/Max, Safety Stock, etc. with Exception Monitoring
Steelwedge Business Apps
© 2012 Steelwedge Software, Inc. Confidential. 23 Plan. Perform. Profit.
Act Faster
Analytics Integrated with Planning Data
© 2012 Steelwedge Software, Inc. Confidential. 24 Plan. Perform. Profit.
Cloud Based Analytics: Built for IBP
1. Traditional Performance Summary Dashboards
2. Traditional Metrics Dashboards
3. Dynamic Content Dashboards
4. Dynamic Visualization Dashboards
Bene
fits
Dashboard & Reports Sophistication
Increased User Adoption
Operational Performance
Transparency
Organizational Alignment
Better / Faster Decision-making
© 2012 Steelwedge Software, Inc. Confidential. 28 Plan. Perform. Profit.
Mobilize your planning
Mobile Analytics For Executives and planners: offline dashboards, predictive analytics and exceptions For Mobile Sales: offline and web-enabled demand data
Enterprise Data
Steelwedge Analytics
Model
© 2012 Steelwedge Software, Inc. Confidential. 29 Plan. Perform. Profit.
Leverage the Power of the Cloud
Cloud Based Delivery Platform
© 2012 Steelwedge Software, Inc. Confidential. 30 Plan. Perform. Profit.
Cloud: At Your Service
30
1. Configure
Cloud Delivery Platform
Accelerated Time To Value
2. Integrate
Cloud Integration Portal
Flexible Data Exchange
3. Deploy
Cloud Services Portal
Automated Upgrades
© 2012 Steelwedge Software, Inc. Confidential. 31 Plan. Perform. Profit.
Configure: Cloud Delivery Platform Multi-tenant Configuration Repository
- Industry blueprint & Best Practices
Customer Specific Configuration - Flexibility
Partner/Customer Access Control - Cloud management
Seamless Upgrades - Process flexibility
Rapid Implementation - Time to value
Monitoring and Statistics - User engagement
Steelwedge Cloud Delivery
Platform
Monitor
Rapid Implementation
Seamless Upgrade
Access Control
Customer Specific
Multi-tenant
© 2012 Steelwedge Software, Inc. Confidential. 32 Plan. Perform. Profit.
Reduce Time to Value
Compass Express: Out of the Box S&OP Solution
© 2012 Steelwedge Software, Inc. Confidential. 33 Plan. Perform. Profit.
Compass Express Out-of-the-box S&OP solution
S&OP Sales S&OP Operations Executive S&OP Collaboration
Pre-implemented based on SW best practices Accelerates implementations
Production ready configuration Net change to best practice vs.
blank slate design Solution visibility during design
© 2012 Steelwedge Software, Inc. Confidential. 34 Plan. Perform. Profit.
High Resolution IBP Process
Big Data Powered S&OP
© 2012 Steelwedge Software, Inc. Confidential. 35 Plan. Perform. Profit.
Bigger Demand/Supply Network = Bigger Data
Manufacturers
Wholesale Distributors
Suppliers
Customer Demand
Info
Goods Contract
Manufacturers
Logistics Providers
Virtual Manufacturers
Retailers
Internet/ Portals Internet/
Portals Internet/ Portals
Source: Rich Sherman, Keeping SCOR in the Supply Chain
© 2012 Steelwedge Software, Inc. Confidential. 36 Plan. Perform. Profit.
Impacts of an Interdependent Network
• Less control and visibility
• Increased lead-times • Planning collapsing into
execution • More risks • More change in the
business environment
Data required to monitor and control
these processes has grown 70% in the last
year
© 2012 Steelwedge Software, Inc. Confidential. 37 Plan. Perform. Profit.
The Best S&OP is Powered by Big Data
• Steelwedge: – powers Global 1000 planning – understands supply chain complexity – enables processes – manages growing data…
© 2012 Steelwedge Software, Inc. Confidential. 38 Plan. Perform. Profit.
The Best S&OP is Powered by Big Data
• Single unified data model for supply, demand and finance
• Ability to do global scenario management across the supply, demand and finance
• Extremely rich collaborative capabilities supported by Enterprise Enabled Excel
Demand
Supply
Finance
© 2012 Steelwedge Software, Inc. Confidential. 39 Plan. Perform. Profit.
Data
volu
me/c
ompl
exity
Business Value
20-100X
2-10X
X
Combinatorial Explosion of Data Requires Advanced S&OP Technology
• Volumetric and financial • Cross instance reporting • Planning across operational and strategic time horizons in single environment • Global supply-demand scenarios • Real-time integration to back end systems
• Volumetric and financial • Detailed planning • Improved system integration • Scenario management for functional areas
Advanced S&OP: Measures units/dollars and also links Supply, demand and finance
Big Data Powered S&OP: Measures units/dollars, links departments and time horizons and delivers multiple supply scenarios….. • Volumetric (not financial)
• Limited detail visibility • Limited system
integration • No scenario management Traditional S&OP: Measures units
© 2012 Steelwedge Software, Inc. Confidential. 40 Plan. Perform. Profit.
Power High Resolution S&OP The Hierarchy of Supply
Chain Metrics Source: Gartner
Demand Forecast
Perfect Order
SCM Cost
AP Inventory Total AR
Cash-to-Cash
Supplier Quality
Supplier On-Time RM Inv Purch
Costs Dir. Mtl. Costs
Cost Detail
Production Schedule Variance
Plant Utilization
WIP+FG Inventory
Order Cycle Time
Perfect Order Detail
Diagnose
Assess
Correct
BIG DATA
From Unfocused S&OP……
© 2012 Steelwedge Software, Inc. Confidential. 41 Plan. Perform. Profit.
Power High Resolution S&OP The Hierarchy of Supply
Chain Metrics Source: Gartner
Demand Forecast
Perfect Order
SCM Cost
AP Inventory Total AR
Cash-to-Cash
Supplier Quality
Supplier On-Time RM Inv Purch
Costs Dir. Mtl. Costs
Cost Detail
Production Schedule Variance
Plant Utilization
WIP+FG Inventory
Order Cycle Time
Perfect Order Detail
Diagnose
Assess
Correct
BIG DATA
To High Resolution S&OP……
© 2012 Steelwedge Software, Inc. Confidential. 42 Plan. Perform. Profit.
Accelerate Time to Value
Technology Enabled Process Design
© 2012 Steelwedge Software, Inc. Confidential. 43 Plan. Perform. Profit.
Steelwedge Test Drive
Why Test Drive Live System = Real User Input = Real Proof Point Validate Requirements Assumptions (Customer & SW) Validate Data Health and Availability (Customer & SW)
What is a Test Drive Compass Express “Best Practices” platform hosted by SW One time data load 8 hours of Hands-on Training
Optional: Integrated Planning Assessment / Design workshop
© 2012 Steelwedge Software, Inc. Confidential. 44 Plan. Perform. Profit.
Agenda
• Research Roundup • Seven Key Process and Organization Capabilities
for Organizations • Seven Key Technology Capabilities • Summary
© 2012 Steelwedge Software, Inc. Confidential. 45 Plan. Perform. Profit.
A New Age of Business Agility Has Arrived REACT through synchronized global planning & risk sharing Coordinate with partners, customers and suppliers by leveraging the power the world’s only rapid-to-implement, and scalable cloud-based collaborative planning platform
GROW through integrated business planning Analyze supply, demand, finance, asset and workforce tradeoffs; understand the impact of alternate pricing, sourcing, mix, and volume scenarios
DECIDE by leveraging the power of data to gain insight Leverage the scalability of an elastic cloud-based planning platform to power predictive analytics that provide visibility.