Week 1 Unit 1: Trends Impacting

Demand-Driven Business Planning

Trends Impacting Demand-Driven Business Planning

Covered in this unit
Four major trends and their role in the
new world of the customer-centric
supply chain
How you can become more customercentric with demand-driven business
planning
The role of the digital supply chain in
enabling this evolution

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Trends Impacting Demand-Driven Business Planning

Trend 1: Growing middle class in emerging markets

Source: The Chief Supply Chain Officer Report 2014, Sep 2014, SCM World

The first decade of this century witnessed a historic reduction in

global poverty and a near doubling of the middle class, but
71% of the global population still subsists on less than $10 a day,
and 1 billion people live on less than $2 a day.
Source:
Pew Research Center, A Global Middle Class Is More Promise than Reality

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Trends Impacting Demand-Driven Business Planning

Trend 2: Emergence of connected consumers

Millennials

Generation Z is mobile first and mobile only, and they are

nothing like Millennials

Generation Z

2015 SAP SE or an SAP affiliate company. All rights reserved.

Source: Brian Solis, 25 Disruptive Technology Trends 2015 - 2016

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Trends Impacting Demand-Driven Business Planning

Trend 3: Proliferation and convergence of channels

Web Sites

Catalogs

Social Media

Mobile

Smart Devices

Retail
Kiosks

2015 SAP SE or an SAP affiliate company. All rights reserved.

The majority of U.S. consumers are multichannel shopping,

with 69% Webrooming (browse products online and buy instore), and 49% Showrooming (browse products in-store and
buy online).
Source: Harris Interactive, Showrooming and Webrooming in the 2014 Holiday Shopping
Season

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Trends Impacting Demand-Driven Business Planning

Trend 4: Exploding consumer and customer demand data
Demographic Data
Cellular Data
Retailer POS
By
product
itself (such
as 3D
printers)

By
customer
activity
(such as
point-ofsale)

By external
events
(such as
weather)

Sensor Data
Market Share

Distributors
Competitors

BIG
Data

Social Media

Weather

2015 SAP SE or an SAP affiliate company. All rights reserved.

Events
Shipments

Promotions
Forecasts

Three basic types of data

Price

Sales Orders

Examples

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Trends Impacting Demand-Driven Business Planning

These trends are putting the customer at the center, and this customer has new expectations
Customer Centricity in an Omni-Channel Marketplace

Customers expect quality

and value

Customers expect a sense

of urgency and speed of
delivery

Customers expect
consistent and positive
experience across channels

Customers expect choices

and personalized
experience

86% of customers are willing to pay more for a better customer experience
Source: AMEX Global Barometer
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Trends Impacting Demand-Driven Business Planning

Demand-driven business planning enables a more customer-centric business
To become more customer-centric

companies are embarking upon demand-driven business planning

Strategic planning is
more
Align strategic and becoming
comprehensive, but must still
operational plans be aligned and reconciled
with operational plans
Need to be more responsive
Sense short-term
to customers by
understanding near-term
demand
consumption patterns
Need to model the complexity
and manage uncertainty of
Understand the
the entire supply chain (e.g.
demand network
demand network) and not just
your enterprise

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Trends Impacting Demand-Driven Business Planning

Creating a digital supply chain is key to enabling this transformation
Breakthrough digitization technologies
HYPERCONNECTIVITY

are enabling demand-driven business planning

Align strategic and operational plans
Requires world class user experience for
analyzing and determining best plan

SUPER COMPUTING

CLOUD COMPUTING

Sense short-term demand

Requires predictive and prescriptive analytics that
can process demand data at the finest level of
granularity

SMARTER WORLD

CYBER SECURITY

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Understand the demand network

Requires common data platform that harmonizes
all structured and unstructured information

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Trends Impacting Demand-Driven Business Planning

What you learned in this unit
Key Takeaways
Todays customers are more demanding than ever before
due to
rise of the middle class in emerging markets
emergence of connected customers
proliferation and convergence of buying channels
explosion of consumer and customer data
Demand-driven business planning enables customercentric supply chains
Create demand-driven supply chain by aligning strategic
and operational plans, sensing short-term demand, and
understanding the demand network
Breakthrough digitization technologies are key enablers in
the demand-driven journey

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Thank you

Contact information:

open@sap.com

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