From Operational Insights to Business Profitability What do

From Operational Insights to Business Profitability

What do you see?

What This Has to Do With This Session? “ … ”

ADD Ltd – Business Solutions Department 19 years in BI/CPM area 21 Consultans in BI/CPM area 140+ Successfully finished BI/CPM projects Microsoft Country Partner of the Year 2016 Winner FLP 2015 Award for Big Data in EMEA region (Microsoft & HP) Microsoft Gold Data Analytics, Application Development, Cloud Platform Microsoft APS Premier Partner Premier Pyramid Analytics Partner Regional Kepion Partner 24+ Countries with our solutions Microsoft Black. Belt Partner for Application platform (BI, Big Data)

Cross-Vertical Experience Manufacturing Power & Utilities Retail / Wholesale / Omni-channel Digital Transformation Business Consultants & Technology Experts

Where Do You Want To Make Difference?

How to Make the Difference? Revenue +8% Improve Order Conversion Rate Cross-sell/Up-sell OTIF Fill Rate … +1% Expense-4% Improve Yield Operational Efficiency Lower Failures & Defects Lower Scrap and Re-work … Inventory -3% Stock Optimization (overstock, out of stock) Improve S&OP planning … C 2 C -5% Better DSO – 3 days Lower C 2 C cycle Conditions … Source: Supply Chain Transformation: Practical Roadmap to Best Practice Results, Richard Sherman

Where Do We Look for the Difference? Financial (goals & metrics) Operational Efficiency & Effectiveness (goals & metrics) Product Profitability Suppliers Marketing Procurement Customer Profitability Production Sales Research & Development IT & Services Human Resources & Assets Management Logistics & Distribution Customer Service Customers

What We Want to Achieve? Keep focus Get to the bottom Know what to do next Dashboards with Strategic and Operational KPI‘s integrated Budgeting & Forecasting Solutions. Ability to dynamically explore data to find useful business insights and answer what happened and why? Ability to Predict future events and movements, get recommendations on what to do next? Find correlations.

Where To Put All The Sensors?

Understand Customer & Product Profitability From SC level in ERP – Product Level Only Intermediate Profit (FGP) – Product/Customer (Order) Level ALREADY IN ERP TO BE ALLOCATED COGS Of Finished Goods Primary Logistics COGS of Products Bought in for Resale Secondary Logistics Other COGS Marketing (ABL/BTL) Other Commercial Costs Amortization Administration … Automate Calculation Understand Profitability

Step 1: Integrated Core Data Initial Situation Data Integration Ineffective process of Profitability Calculation due to complex and scattered data: Integrated data for allocation using dimensions necessary to allocate – integrate with operational data. § § § § General Ledger, P&L Sales Orders & Shipments Purchase Orders & Receipts Production Volumes Production Consumption Production Work HR … EDWH Manufacturing Framework

Reference Models to Speed up the Process Business Questions Reference Scenarios List of reference Business Questions speed up definition of user requirements. Reference Scenarios help us define relevant use cases for BI solution. Dimensional Models Reference Dimensional Model speed up DW implementation of logical and physical model.

Step 2: Calculation Model (Ao. C) BY WHAT? Allocation Keys WHAT? Input Data Cost Pool Cost Element ON WHAT? Allocated Results

Step 3: Advanced Scenarios & Algorithms § SCADA § Sensors § External Data (weather, demographics, macroeconomics, competition…) Add External, Io. T and AI born data AI Io. T EDWH AI and Machine Learning Models

AI & Io. T Driven BI Value Chain Gains Optimize inventory Monitor Goods Improve Demand Forecast Compare Target Understand Suppliers Marketing Track and score Predict. Maintenance Procurement Production Listen, See, Prevent, Optimize Computer Vision Listen and see Sales Logistics & Distribution Customer Service Customers Improve channels Product mix Digital Twins Generative design

Organize Known & Explore Unknown Known QUESTIONS ke Gartner, 2018 a La Expand Innovation & Understanding. Ma Exploration & Investigate chi ne & Lea AI rn in g Traditional DW BI W D Foundational Establishing e im Value -l t. Core a e R Da t Unknown Not a 1 Technology Challenge Known DATA Unknown

Upskill Current and Onboard New Resources Not a 1 Resource Job Expand Data Scientists Innovation & Understanding Exploration & Investigate. Da ta En g ine er s An Known QUESTIONS Unknown Gartner, 2018 aly s Foundational Casual Core ts Users Known DATA Establishing Value Unknown

Where Are You Today? Unknown Expand Understanding & Investigate Known QUESTIONS Gartner, 2018 Foundational Core Known ? Innovation & Exploration Establishing Value DATA Unknown

How Will You Hunt Tomorrow?