Professional Documents
Culture Documents
Company confidential
Financial Analytics for greater ROCE Working Capital Optimization (C2C Cycle)
Debtor Analytics Payables Analytics Inventory Optimization Treasury Cash Analysis
Company confidential
EPM Objectives
FMCG majors are interested in implementing a Performance Management (PM) program across the enterprise, in order to align goals and strategies with operational objectives, plans and responsibilities within the organization.
Develop Superior Consumer Insight
Strategy Communication
Incr Share Holder value Sustained Profitable growth Accelerate Organic Growth Improve Productivity
Business Performance
Vision
Level 0 : Corporate
Level 2 : Units
HR Effectiveness
Company confidential
Key Imperatives
Key Questions
Customer
Internal Process
Efficiency
Balanced Scorecard incorporates a double loop feedback around both internal business processes and external outcomes
Company confidential
Operational
Exception based operations at the Factories Stock optimization across supply chain nodes Fast tracking complaints from High Value Cust Personnel workload mgmt across stores
Performance Visibility
Promotion & marketing impact tracking Supply Chain bottlenecks SKU velocity Logistics impact on operating margins Store Allocation efficiency Reservation Pipeline vs Forecast 360 deg Customer Views 360 deg Supplier views Cost variance tracking Order-To-Fulfillment, Cash To-Cash, Procure-To-Pay cycle times
Analytical Capability
Outlet Service Route Optimization Outlet Segmentation Analytical Forecasting Six Sigma Analytics Price Elasticity Analysis BCG Portfolio Analysis Human Productivity Analysis Loyalty Analytics
Demand Initiatives
Some Analysis Areas
General Analysis Sales Force Effectiveness Trade Promotion Effectiveness Marketing Effectiveness Market Analysis
Sourcing Initiatives
Customer Initiatives
Business Functions - Functional Metrics, Reports, Alerts, Scorecards, What-If Analysis, Guided Analysis
Company confidential
TM&D HR Perf Sales Finance Planning Perf Category Perf Dist Perf Branch Perf WD Perf AM Perf AE Perf Promo Perf Warehouse Perf Outlet Svc Eff Route Eff Network Eff Logistics Perf Scheduling Eff Carrier Eff Distribution
CBSC, Food, PCB Brand Perf Mgmt Mkt Research Perf NPD Perf Operations Perf R&D Perf
Emp Perf
Finance
HR Perf
Portfolio Perf
Procurement Perf
A common data set populates the entire model enabling : Scalability EPM, Data, BI Model System Performance Integration data linkages business rules
Channel Perf
Plant Perf
Workforce Eff
WSD Perf
Emp Eff
Outlet Sales, Invoices, Purchase Orders Inventory, Transport Orders, Stock Tr Orders, Salary Advice, re-distribution Costs
Data Warehouse
(Data Storage)
Business Plan, Forecast, A/R, A/P, Visual Merch Audit, Production Plans, Market Research, Production Jobs
SAP
Visual Audits
Excels
PLM
HRMS
Company confidential
Company confidential
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Need a Performance Mgmt & BI Transformation to empower & measure effect of transformation !
BI Transformation Roadmap EPM & BI Workshops Define Performance Mgmt Model
Framework Metrics Models Scorecards Alerts Linkages/Alignments Analysis Flows Dashboard Designs Biz Case/ Info Needs Get Mgmt Buy-In
Define BI Strategy
BI Implementation
BI Change Mgmt
BI Value Mgmt
Technology Drivers App Architecture Data Architecture Platform Selection Vendor Selection Initiatives Roadmap Effort Estimation
Training Communication Biz Process Changes Expectation Mgmt Usage Monitoring BI Support Processes Risk mgmt
Company confidential
11
Change
People Participation
Business Sponsorship Business Buy-In, Ownership Identify Business Change Agents Remove Business IT gaps Remove fear of Retrenchment Create Senior Mgmt Champions to spread the message
Processes
Identify and Plan for process changes early on Create effective communication channels and joint project plans with other process owners Cultural and governance change needs to go along with process changes
Systems
Identify & Plan all system changes early on (Frontline systems may need to have more checks and measure to improve data quality) Create effective communication channels and joint project plans with other System owners Communicate all system changes to the Organization
Culture
Business Driven Program Showcase Business Benefits Keep business in loop during change in scope Embed in biz processes like sales review etc Pre-empt business needs Communicate effectively Repeated Multi-media training Measure adoption, usage and publish figures Publish success stories
Company confidential
12
BI Strategy
BI Business Case BI Budget
consistent & actionable information across the enterprise through a common Execution Plan user interface accessible anytime, Implementation anywhere to authorized users, thereby Execution Model Scope Roadmap enabling fact based decision making. (Inhouse/Outsource) Definition Vendor Selection
& Project Plan
BI Business Case
Customer Focus
Company confidential
Unique Sales & Customer view Service Service Quality Unique Spend Improvementview & vendor Management Supply chain wastes Asset utilization gaps Higher Governance Model employee productivity Greater IT ROI Organization Risk Value Single Analysis Platform across biz Alignment Management Assessment areas Excel intelligence democratization !
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Company confidential
Closed Loop Process BEGINS with Analyzing Performance and Opportunities in the Business
2 1 Analyze Performance - During and end of promotions 7 Execute Deals Analyze Opportunities for Brands and Markets 3 Plan, Simulate and Evaluate Scenarios
MARKET INSIGHTS
5 Analytics Operational
Company confidential
15
Despite such large spends, not many manufacturers have succeeded in measuring promotion effectiveness
Only 7% of Manufacturers say that they are highly effective at evaluating promotion productivity.
4 4
Of all investments, promotional spending is the highest whilst knowledge about their return and effectiveness is the lowest. For promotions, the driver is what was done the previous year Most promotions are NOT evaluated in an objective and systematic fashion
3 3 3 3 3
I n n e f f Ne ce tu i vt S r e ao l m e Hw i h g a h t l y E f f e c Et i fv e e c t i v e
Half of all promotional expenditure is wasted ... the problem is nobody knows which half!
William H. Lever, Chairman, Unilever Corporation
Source: Brandweek November 25, 2002/Cannondale Study
Company confidential
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RETAIN
B C B B A B B
EXPAND
A C A A A A A B
profitability
1.5%
(OR IMPROVE)
C
COST MINIMIZE
2.5%
Potential Manufacturer Value Chain Improvement
(as a Percent of Sales) .4-.6% Percent of Sales .2-.3% .2-.4% .3-.6% .1-.2% .2-.3% 0-.1% Up to 2.5%
10.0% ROS
Manufac-turing Labor
Freight
Company confidential
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Promotion ROI
Incremental Revenue less Tactical/Strategic Manufacturer Sales & campaign costs, creative Costing systems costs,
Sales Lift%
Tactical
Brand Manager Account Manager Demand Planner Brand Manager Account Manager Demand Planner
Measure the extent of Sales Drop % cannibalization due to promotion on other SKUs/Stores
% drop in base demand of Tactical non-promoted SKUs in promoted Stores and promoted SKUs in nonpromoted Stores Mismatch between POS Operational sales volume and Store/Account Buy volume during promo period
Store/Account Volume
Company confidential
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Demand Management
Inventory Management
A N A L Y T I C S
Ensure shelf availability Measurement of Sales KPIs Store level, SKU level, Lift%, Drop% Determine and analyse Causals Evaluate Promotions Effectiveness Determine Promotion Costs Evaluate Store/Account Profitability
What happened
Company confidential
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ERP
POS
Inventory
SCM
Customer Analytics
Stock-Out data Consumer Billing Price
CRM
Base Demand
Operational Application
Forecast Accuracy Order Backlog Inventory Availability Retailer Invoice data Total cost of promotion Retailer Promo penetration data
Analytical Application
SYNDICATE DATA
Reports
Exception Alerts
Retailer Applications
What-If Analysis
FMCG TPM Application
Causal Analysis
Third Party Data
Optimisation
TPM Analytics
Company confidential
20
Thanks !
Company confidential
21
Evolution of BI
Maturity
BI Affordable, Democratized, Mobilized Pervasive BI (Business Planning, Collaboration) Data > Insight, Alerts, Root Cause Analysis Static Reports -> On-The-Spot Answers BI > EPM/CPM BI -> Greater Integration Business Intelligence -> Intelligent Business (Exception based Mgmt, predictive analytics etc)
1990 1995 2000 2005 2015
B1 2.0
MIS/EIS Reports
Increasing
Company confidential
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Evolution of BI
BI 2.0
Excel
Excel
Excel Collaborative BI
Maturity
Increasing
OLAP Reports
EPM CPM
Dashboards Scorecards Alerts Analysis Trails
Predictive Analytics
Mainframes
Data Silos
Packaged ERP BI
1990
1995
2005
2015
Company confidential
23
Unilever Akili
Unilever Global Working together with the business to fulfill consumercustomers Akili : Network : Connects all regional business units and its under one globalfaster pool cheaper whishes better, data and
Global Intelligence Framework Supply Chain Intelligence
Global Consumer, Shopper & RegistryAnalytics Trade Trade Dynamics, promotion management
Enablers
Common Identification Standards Single Platform all regions Global Data Synchronization Standardized Processes & Systems Global Information Service Center
Competitive Intelligence
Supply Chain & Demand Planning Global Manufacturing Integrated Sourcing Hubs
Regional Supply Chain Data Pool Disperse d R&D Regional Demand Planning Regional Distribution Structure
Category & Channel Marketing Collaborative Shopper Value Creation Regional Category Support
Regional Channel Strategy Country Category Development Specific Intelligence By country Brand Activation Plans
Integrators
Company confidential
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Key Initiatives
Supply Chain
Demand Planning Manage risks to targets Global Sourcing Effective hedging Working capital optimization SKU optimization Customer profiling & categorization
Marketing Effectiveness
Consumer & shopper behavior Trade dynamics & channel intelligence Micro Marketing intelligence specific to regional needs Drive operational channel marketing programs
Portfolio Enhancement
By Geography, Category & by Product groups Help to optimize product offerings Identify new opportunity for growth of existing products in the global portfolio
Strategic Partner
Help in M&A Identify Cash Flow issues Currency risks Aid in investment opportunities
Business Benefits
Enables Shared Services Speed to share & Implement & reduces cost of operations new best practices
Company confidential
25
SAP BW
Key Benefits
a. b. c. d. e. Consolidated picture of performance By brand, By Geo, By Period Fact based decision making exception based Supply Chain management Driving accountability across organization metrics ownership from top to bottom Better vendor control vendor scorecarding Improved sharing of best practices within organization visibility across organization
Company confidential
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Client Partner
ITCInfotech Client Management Team BI Program Management Business Analysts BI Support Portal (ITD, FBD, Hotels, LRBD) Complexity Firewall Managed Service Vendor Facilities
Security Control
BI Application
Analytics Services Knowledge Services SME (SCM, CRMetc) Business Analytics Services (Segmentation, Price Elasticity etc) Analytics Experts Business Optimization Services (Stock optimization, Route Opt) Reporting Services Generate OnDemand reports, Alerts, Dashboards Maintain ETL Reporting, Database applications Data Management Services Master Data Management Datacenter Systems & Data Quality Management Infrastructure Services Software Server Management Hardware & network Management Architects BI Engineers ETL Engineers DBA
Company confidential
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Customer Analytics WD Profitability Analysis Retail Outlet Analysis Customer Service Effectiveness
Trade Marketing Analytics Sales Analysis Salesforce Analysis Channel Analysis Category Analysis Trade Promotion Analysis
Project Performance Mgmt Project Planning efficiency Project Spend & vendor Analysis Project Execution effectiveness Project Risk Analysis
Corporate Sustainability Performance Carbon footprint, variance & credit analysis Sustainability Spend Analysis
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HR Perf Sales
TM&D Perf
CBSC, Food, PCB Perf Brand Perf Mgmt Mkt Research Perf Network Eff Logistics Perf Scheduling Eff Carrier Eff Emp Eff NPD Perf Operations Perf R&D Perf
Emp Perf
Distribution
Finance
HR Perf
Promo Perf
Portfolio Perf
Procurement Perf
Channel Perf
Plant Perf
Workforce Eff
WSD Perf
Company confidential
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