Amr-21370 Survey 2008

Supply Chain Planning and Execution
2008 Landscape Series
S&OP Technology Landscape: Evolution to

Integrated Business Planning Is a Work in Progress
by Noha Tohamy and William McNeill
Extending the traditional sales and operations planning process to profitable demand
response requires technology tools that build consensus plans to harmonize supply, demand,
and financial goals. This Report analyzes the S&OP technology landscape and its ability to
support integrated business planning.
Market Services Report

Acronyms and Initialisms
BI Business intelligence PM Performance management
ERP Enterprise resource planning S&OP Sales and operations planning
FTE Full-time equivalent SOA Service-oriented architecture
KPI Key performance indicator
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S&OP Technology Landscape:
Evolution to Integrated Business
Planning Is a Work in Progress
by Noha Tohamy and William McNeill
The
Companies can no longer afford to match supply and demand without
analyzing the effects of tactical decisions on overall business goals.
Bottom
Line
Executive The sales and operations planning (S&OP) process has always been
a battleground for synchronizing supply constraints with demand
Summary opportunities. The measure of a successful S&OP process is its abil-
Vendors featured
in this Report:
ity to create an actionable consensus plan that provides the opera-
Adexa
tional blueprint for profitably matching supply to demand.
AspenTech
Traditionally, S&OP was viewed as a senior management decision-making process that Cognos
ensured tactical plans in all business functions—sales, marketing, and demand and GAINSystems
supply management—were aligned and loosely supported the overall business plan. i2 Technologies
But recently, it has evolved into the concept of integrated business planning, which is ICON-SCM
the process of constantly realigning decisions within these business functions as well as Infor
synchronizing with the strategic financial plans to create a consensus operational plan John Galt
for supply and demand matching. AMR Research introduced this framework in “Next- Kinaxis
Generation S&OP: The Path To Bottom Line Value.” Logility
Oracle
Key takeaways SAP
Steelwedge
• S&OP technology must evolve beyond supply to demand matching in order to offer
Symphony Metreo
integrated business planning: 360-degree integration between supply, demand, finan-
TXT e-solutions
cial goals, and operational plans.
WAM Systems
• To offer integrated business planning, tools must provide foundational functionality in
the demand, supply, and financial areas. The tools must also provide the capabilities
for building a consensus operational plan, communicating the plan for execution, and
monitoring the company’s progress against that plan.
• S&OP applications’ strengths and weaknesses mirror vendors’ heritage, which fall into
four categories: supply chain planning, financial planning and business intelligence,
profitability and tactical demand fulfillment, and response management.
• No one vendor currently offers an end-to-end integrated business planning application.
Few are positioned to provide this functionality through acquisitions or partnerships.
Supply Chain Planning and Execution Report | 2008 Landscape Series © 2008 AMR Research, Inc. 1
Technologies must evolve to support integrated
business planning
From a process point of view, to achieve integrated business planning, companies must
build on the nine-step S&OP process framework AMR Research introduced in 2006 to
encompass the alignment of demand response with financial goals, analyzing the impli-
cations of misalignments between strategic, tactical, and operational plans (see Figure 1).
Figure 1: Reconciling the S&OP technology footprint with the nine-step framework
Nine-Step S&OP Cycle Next-Generation S&OP
Enact and measure Enact and measure

the plan the plan
Publish the plan Publish the plan
Integrated scenario analysis Integrated scenario analysis
Financial
Supply what-if Supply what-if
what-if
Base
Base supply plan Base supply plan
financial plan
Demand consensus Demand consensus
Demand-shaping Demand-shaping
what-if what-if
Base demand plan Base demand plan
Collect sales and market input Collect sales and market input
Source: AMR Research, 2008
2 © 2008 AMR Research, Inc. Supply Chain Planning and Execution Report | 2008 Landscape Series
From a technology standpoint, tools must extend their capabilities to support integrated
business planning. Namely, S&OP tools must do five things:
• Collect demand, supply, and financial insights from disparate functions and har-
monize the data across levels of aggregations, units of measures, time horizons, and
functional areas.
• Build unconstrained demand and juxtapose it against capacity constraints, customer
requirements, and financial goals for maximum profitability.
• Build and maintain a consensus, best-option operational plan that matches supply-
side with demand-side profitably.
• Operationalize the consensus plan into actionable plans and tactical recommenda-
tions in sales, marketing, supply, and demand.
• Measure progress against the consensus plan on an ongoing basis, escalating excep-
tions to appropriate stakeholders.
Building the functional foundation for integrated
business planning
To support integrated business planning processes, technologies must provide func-
tional capabilities in managing demand, supply, and financial activities, which we refer
to as pre-S&OP meeting requirements. Next, the technology must support preparing
and conducting the S&OP meeting, which is essentially the ability to review different
alternatives in the meeting and build a consensus operational plan that reflects all the
pre-S&OP analysis. Finally, the technology must be able to communicate the consensus
plan to multiple functional areas and keep track of progress, which we refer to as post-
S&OP meeting requirements.
Figures 2a through 2c showcase the evolution of S&OP through four phases.
Figure 2a: Phase 1-2 S&OP—localized, rough-cut supply decisions

Strategic
Planning
Rough-Cut
Tactical Volume Plan Innovation
Planning partner
Customer S&OP Supplier
Sell-in = demand
Operational
Planning Product Master Demand Supply Capacity Financial
Mgmt Sched Mgmt Planning Planning Mgmt
(Pre S&OP)
Execution Design, develop, launch, buy, sell, promise, make, ship, return
Figure 2b: Phase 3 S&OP—downstream demand sensing, translation
Strategic
Planning
Rough-Cut Revenue Plan
Integrated
Business S&OP
Planning • Sell through • Supply
• Mix • Capacity
• Price • Sell-in • Product
Operational Product Master Demand Supply Capacity Financial

Planning Mgmt Sched Mgmt Planning Planning Mgmt
(Pre S&OP)
Figure 2c: Phase 4 S&OP—integrated business planning
Strategic • Global • Plan of Record • Product Portfolio • Network Design

Planning
• Local Risk-optimized
what
if profit plan
Tactical
Planning S&OP
• Sell through • Supply
• Mix • Capacity
• Price • Product
Operational Product •Master

Account Demand
• PartSupply Exception-based
number Capacity Financial
Planning Mgmt Sched
• Order Mgmt Planning
• SKU processing
Planning Mgmt
(Pre S&OP) • Quote • Configuration
• Spec • Cost
Below is a detailed explanation of each functional area:
• Pre-S&OP meeting, demand side —This is the foundation of the integrated busi-
ness planning process on the demand side. Functionality includes the ability to
collect sales and marketing data, sense unconstrained demand, develop demand fore-
casts, arrive at demand consensus, and shape unconstrained demand.
• Pre-S&OP meeting, supply side —This analyzes the unconstrained demand plans
from the pre-S&OP (demand side) and analyzes it against production plans, inven-
tory availability, and capacity constraints. It conducts what-if analysis to identify
demand-shaping opportunities that minimize demand shortfall based on constrained
capacity.
• Pre-S&OP meeting, financial side —This is the foundation for integrated business
planning that reconciles operations with financial business goals. It analyzes the out-
put of the demand side and supply side pre-S&OP (that is, supply-side against finan-
cial goals based on revenue and profitability targets, business goals, and customer
service-level commitments). It conducts what-if analysis to identify demand-shaping
opportunities that maximize the profitability of assigning constrained capacity to
customer demand.
• Conducting the S&OP meeting —This is where all the pre-S&OP meeting work
comes together. Functionality includes the ability to review alternative scenarios and
converge toward a consensus plan, collaborative worksheets, tradeoff analysis, and
exception management to pinpoint the effect of different demand, supply, or finan-
cial alternatives.
• Post-S&OP meeting, execution and monitoring —Functionality includes com-
municating the consensus plan to operations as the blueprint for demand and supply
management and financial decisions until the next S&OP meeting or checkpoint.
Monitoring operational progress against the plan and using key performance indica-
tors (KPIs), like forecast accuracy, profitability and revenue variance, inventory vari-
able, or customer service variance, are also included at this stage.
Figure 3: Mapping the functional needs of an integrated S&OP process
Pre-S&OP Work
Financial and Business Strategy
Q: How closely integrated should
each pre-S&OP function be? 1. Develop operational plan
A: Depends on the vertical. 2. Conduct what-if analysis
Pre-S&OP Work
Demand S&OP Pre-S&OP Work
1. Collect sales & marketing data Supply
1. Building the
2. Build demand plan operational 1. Develop operational plan
3. Conduct what-if analysis consensus plan based on supply
4. Build consensus demand plan 2. Conduct what-if analysis
Post-S&OP Work
Execution and Monitoring
1. Communicate the plan
2. Monitor progress
Vendor heritage colors the focus of S&OP applications
The S&OP technology space represents one of the top supply chain IT spending areas
for user companies in 2008 (see “The Supply Chain Management Spending Report,
2007–2008”). Many of the companies we interviewed are still looking for more basic
S&OP functionality, but they have the vision of extending to integrated business plan-
ning functionality when their processes reach that maturity level.
In analyzing the vendor landscape, we found a wide array of vendors that offer S&OP
applications. Not surprisingly, the tools approached the integrated business planning
requirements differently, mirroring the functional requirements of vendors. Companies
looking for an S&OP application have a choice among vendors with proven capabilities
in the following categories:
• Business intelligence (BI) and performance management (PM)—S&OP applica-
tions from vendors in this category have traditionally been positioned as an exten-
sion to their BI and PM products. Application strengths include ease of use, flexible
dashboards, exception management, and audit and tracking. Given their BI heritages,
these applications assume that pre-S&OP meeting functionality on the demand and
the supply side will occur outside their tools, which would read the demand fore-
cast and supply constraint as inputs. In our vendor profiles, Business Objects and
Hyperion were not represented separately from Oracle and SAP. Cognos, an IBM
company, participated in this Report.
• Supply chain planning —S&OP applications from supply chain planning vendors
reflect deep domain expertise in demand and supply planning. Strengths mirror the
individual vendor’s strengths in demand management, like Oracle Demantra, or
supply management, like AspenTech. But these applications’ abilities to extend into
financial scenario management visibility, consensus building, and progress monitor-
ing across the strategic, tactical, and operational levels are works in progress. In this
category, Adexa, AspenTech, GAINSystems, i2 Technologies, John Galt, Logility,
Oracle, SAP, and WAM Systems participated in this Report.
• Pricing and profitability—S&OP applications in this category emphasize the
need for profitability planning and financial visibility. Application strengths revolve
around a deep understanding of pricing and how it can be an effective demand-
shaping lever. The products also excel in their abilities to conduct what-if analyses of
the effects of every supply-demand matching decision on financial profitability. Not
surprisingly, vendor software lacks depth in demand and supply planning. In this
category, Symphony Metreo participated in this Report. Maxager was invited, but
was unable to participate.
• Tactical demand fulfillment—S&OP applications in this category reflect unique
vendor approaches in response to continuous variations in supply and demand. The
application strength lies in rich usability and the ability to conduct fast what-if analy-
sis to evaluate different alternatives for matching supply to demand. Strength is also
in the emphasis on real-time collaboration with internal and external stakeholders.
Tools in this category lack the depth in demand planning compared to traditional
SCM vendors. In this category, Kinaxis and ICON-SCM participated in this Report.
• S&OP pure play—Unlike other categories where S&OP tools represent an exten-
sion to a neighboring functional area, applications in this category offer a targeted
S&OP point application. Strengths stem from a fresh approach in solving the S&OP
problem, with a focus on capturing demand insights from disparate functional areas
as well as building and communicating the consensus operational plan. Weaknesses
lie in the ability to conduct complex what-if analyses to evaluate tradeoffs on the
demand, supply, and financial side, as well as lack of supply management functional-
ity. Steelwedge, the dominant player in this category, participated in this Report.
Figure 4: Vendors excel at different time horizons
Business Strategy
Cognos
Quarterly or monthly Steelwedge

financial planning Symphony Metreo
(Executive S&OP)
Adexa
Weekly or monthly AspenTech
Supply and demand GAINSystems
planning John Galt
SAP
Oracle
WAM
i2
TXT
Infor
Tactical or daily Logility
response management
(Supply and demand balance)
ICON
Kinaxis
Execution
Vendor profiles
Table 1: S&OP vendor review
Pre-S&OP—Demand Pre-S&OP—Supply Pre-S&OP—Financial

Collect Develop Conduct Develop Conduct
sales and Develop Build opera- supply opera- financial
market- demand demand Shape tional what-if tional what-if
Vendor ing data plan consensus demand plan analysis plan analysis
Adexa
AspenTech
Cognos
GAINSystems
i2
ICON-SCM (P) (P) (P) (P)

Infor
John Galt
Kinaxis
Logility
Oracle
SAP
Steelwedge
Symphony Metreo
TXT e-solutions
WAM Systems

Area of differentiation
Strong functionality
Competitive functionality
No or limited functionality
(P) Partners for this functionality
Table 1: S&OP vendor review (continued)
S&OP Post-S&OP Meeting

Developing a Communicating
consensus the S&OP Monitor
Vendor operational plan operational plan progress
Adexa
AspenTech
Cognos
GAINSystems
i2
ICON-SCM (P) (P)

Infor
John Galt
Kinaxis
Logility
Oracle
SAP
Steelwedge
Symphony Metreo
TXT e-solutions
WAM Systems

Area of differentiation
Strong functionality
Competitive functionality
No or limited functionality
(P) Partners for this functionality
Adexa
• Summary—With its origins in high tech, Adexa offers a solid S&OP application
with an intuitive user interface.
• Strengths —Its focus is on demand forecasting, building consensus demand, and
supply planning.
• Opportunities —Expanded focus on the integrated business planning that spans
financial, sales, and marketing.
Adexa
URL www.adexa.com
Primary business Planning
Headquarters Los Angeles, CA
Employees 130
Profitable in 2007 Undisclosed
2007 revenue ($M) Undisclosed
2007 S&OP revenue Undisclosed
S&OP FTEs 130
S&OP customers 30
Example customers Fujitsu, Micron, NEC, CNH, Paulaner Breweries
S&OP geographies North America, Europe, Asia-Pacific
S&OP customer segments Large enterprises
S&OP industry verticals High tech (70%)
Technology platform C++, Java
Delivery model Licensed
AspenTech
• Summary—AspenTech’s S&OP application takes advantage of a long history in pro-
cess industries spanning process engineering, manufacturing operations, and supply
chain management.
• Strengths —It has deep domain expertise in decision-support-based demand and
supply planning that caters to unique process industry requirements.
• Opportunities —Further integration on the pre-S&OP financial side. Deeper user
interface to facilitate cross-functional S&OP meetings.
AspenTech
URL www.aspentech.com
Primary business Process optimization
Headquarters Burlington, MA
Employees 1,400
2007 revenue ($M) $341M
S&OP FTEs Undisclosed
S&OP customers 200
Example customers DuPont, Sunoco Chemicals, Westlake Chemicals, NOVA
Chemicals, Bridgestone/Firestone Sinopec, Philip Morris,
SCG Chemicals
S&OP geographies North America, EMEA, Asia-Pacific
S&OP customer segments Large enterprises, SMBs
S&OP industry verticals Chemicals, life sciences, pharma, consumer products
Technology platform Java, .NET
Delivery model On premise
Cognos
• Summary—With heritage in BI and performance planning, Cognos offers a unique
approach to S&OP.
• Strengths —Its focus is on building consensus operational plans and facilitating
executive reviews.
• Opportunities —Together with its heritage in BI and financial analysis, expanding
capabilities in pre-S&OP supply and demand could allow Cognos to offer a robust
integrated business planning application.
Cognos
URL www.cognos.com
Primary business Business intelligence
Headquarters Ottawa, Canada
Employees 4,000+
Profitable in 2007 Yes
2007 revenue ($M) $979M
2007 S&OP revenue Less than $10M
S&OP customers Undisclosed
Example customers Constar
S&OP geographies North America, EMEA
S&OP customer segments SMBs, large enterprises
S&OP industry verticals Varied
Technology platform XML, ActiveX
GAINSystems
• Summary—With a long history in supply chain planning, GAINSystems offers a
proven, easy-to-deploy S&OP application.
• Strengths —Robust statistical forecasting, inventory optimization, and what-if analy-
sis capabilities. Applications present a balanced price-implementation and time-value
combination.
• Opportunities —More depth in building the integrated business plan, spanning
sales, marketing, and financial planning.
GAINSystems
URL www.GAINSystems.com
Primary business Supply chain optimization
Headquarters Oak Brook, IL
Employees 48
2007 revenue ($M) $7M
2007 S&OP revenue $700K
S&OP FTEs 6
S&OP customers 4
Example customers Stuller, Invacare
S&OP geographies North America
S&OP customer segments SMBs
S&OP industry verticals Varied
Technology platform Java
Delivery model Licensed or hosted
i2 Technologies
• Summary—i2 offers a functionally rich S&OP application, with equal depth on the
supply- and demand-planning sides.
• Strengths —Robust scenario management through playbooks and strong capabilities
in operationalizing the plan and monitoring progress.
• Opportunities —Deeper financial planning and what-if capabilities. Offering the
application as managed services to help with change management. Presenting flexible
payment options to be more price competitive.
i2 Technologies
URL www.i2.com
Primary business Supply chain management
Headquarters Dallas, TX
Employees 1,200+
2007 revenue ($M) $260M
S&OP customers Undisclosed
Example customers Dell, Motorola, Grupo Modelo, LG
S&OP geographies Americas (60%)
S&OP customer segments Undisclosed
S&OP industry verticals Undisclosed
Technology platform Java, C++
ICON-SCM
• Summary—The ICON S&OP application revolves around its strong pre-S&OP
meeting supply functionality. It partners with Steelwedge for most of the remainder
of integrated business planning functionality.
• Strength—Rich functionality in supply planning and demand fulfillment, as well as
conducting fast what-if analysis and using flexible hierarchies.
• Opportunities —Taking advantage of its technical depth to build its pre-S&OP
demand and develop a consensus operational plan. Expanding presence in the U.S.
market.
ICON-SCM
URL www.icon-scm.com
Headquarters Karlsruhe, Germany
Employees 50
2007 S&OP revenue 60% of total revenue
S&OP FTEs 40
S&OP customers 9
Example customers HP, Western Digital, Honeywell
S&OP geographies North America (60%)
S&OP industry verticals High tech, automotive
Technology platform Java, C++, Python
Infor
• Summary—Infor delivers S&OP functionality through supply chain planning,
service-oriented architecture (SOA) technology, and integrated analytics.
• Strength—Focus on building demand consensus and pre-S&OP supply area. Offers
visibility across its enterprise applications within its customer base.
• Opportunities —Providing deeper analytics to analyze data and generate reports.
Offering enhanced pre-S&OP financial capabilities.
Infor
URL www.infor.com
Primary business ERP
Headquarters Alpharetta, GA
Employees 9,200
2007 revenue ($M) $2.1B
S&OP customers 300
Example customers Dentsply, Ansell, Fort Dodge, Organon, HJ Heinz
S&OP geographies North America, EMEA
S&OP industry verticals CPG, life sciences
John Galt
• Summary—John Galt offers S&OP functionality either as a standalone module or
as part of its Atlas planning module.
• Strengths —Its S&OP application represents the right price-value combination.
Speed of implementation and a straightforward user interface makes this application
perfect for small and midsize companies.
• Opportunities —Additional functionality on the supply and financial planning sides
for companies looking for end-to-end integrated business planning capabilities.
John Galt
URL www.johngalt.com
Primary business Supply chain planning and consumer-centric planning
Headquarters Chicago, IL
Employees 35
S&OP FTEs 6
S&OP customers 30
Example customers Volkswagen, Wells Lamont, Bayer Crop Science, Hasbro,
Smithfield Farms, Hartz Mountain, Method Home
S&OP geographies Undisclosed
S&OP industry verticals CPG, manufacturing
Technology platform .NET
Kinaxis
• Summary—Kinaxis parlays its unique approach to demand fulfillment and response
management into the S&OP functional area.
• Strengths —Focus on collaboration, consensus building, and conducting fast what-if
analysis of tradeoffs in matching demand to supply.
• Opportunities —Extending strong collaboration features into sales and marketing,
as well as increased focus on profitability and pre-S&OP financial capabilities.
Kinaxis
URL www.kinaxis.com
Headquarters Ottawa, Canada
Employees 135
S&OP FTEs 135
S&OP customers 50 to 100
Example customers Flextronics, Honeywell, Jabil, John Deere, Qualcomm
S&OP geographies North America, Europe, Asia-Pacific
S&OP industry verticals Electronics, high tech, A&D, consumer goods
Technology platform .NET, Java
Delivery model Hosted
Logility
• Summary—Continuing its success in the supply chain planning space, Logility
offers a strong S&OP application for small and midsize businesses to its 100+
customers.
• Strengths —Depth in demand forecasting, including attribute-based planning, depth
in supply planning, and the ability to operationalize S&OP plans and monitor
progress.
• Opportunities —Stronger data harmonization with external data sources and deeper
functionality in the pre-S&OP financial area to offer an integrated business planning
application.
Logility
URL www.logility.com
Headquarters Atlanta, GA
Employees 141
2007 revenue ($M) $43.7M
S&OP FTEs 141
S&OP customers 100+
Example customers Remy International, Shaw Industries, Honeywell ECC
S&OP geographies North America , EMEA, South America, Asia-Pacific
S&OP industry verticals CPG (50%), varied
Oracle
• Summary—Oracle offers a robust S&OP application with Advanced Supply Chain
Planning and Demantra Demand Management.
• Strengths —Proven functionality in demand forecasting and consensus, what-if
analysis, and communicating and monitoring the operational plan.
• Opportunities —Potential to offer a true end-to-end integrated business planning
application, taking advantage of the Hyperion acquisition.
Oracle
URL www.oracle.com
Primary business Enterprise software
Headquarters Redwood Shores, CA
Employees 80,219 as of Q3 Fiscal 2008
2007 revenue ($M) AMR Research estimates $20B+ for calendar 2007
S&OP customers 100+ S&OP customers
Example customers VTech, Motorola, Organic Valley, Baxter
S&OP geographies North America, Asia-Pacific, EMEA
S&OP customer segments Large enterprises, SMB
S&OP industry verticals High tech, industrial, CPG, media,
Technology platform Java, Oracle
SAP
• Summary—Though SAP’s S&OP product is brand new, its customers have relied on
Advanced Planner and Optimizer, Business Planning and Consolidations (previously
Outlooksoft), and Business intelligence–Integrated Planning for their S&OP needs.
• Strengths —Integration with ERP allows for data harmonization, with a better abil-
ity to communicate the plan and monitor progress.
• Opportunities —Potential to offer integrated business planning by taking advantage
of OutlookSoft and Business Objects, while enhancing consensus building and per-
formance management.
SAP
URL www.sap.com
Primary business ERP
Headquarters Walldorf, Germany
Employees 43,800
2007 revenue ($M) $12.4B
S&OP customers More than 100 using APO for S&OP
Example customers Colgate
S&OP geographies EMEA, North America
S&OP industry verticals CPG, high tech, life sciences
Technology platform SAP NetWeaver
Steelwedge
• Summary—Steelwedge’s S&OP application focus stems from its expertise in sales
planning and PM.
• Strength—Depth in S&OP functionality for collaborating with sales and marketing
and building consensus plans.
• Opportunities —Expanding functionality in demand shaping and what-if analysis
on demand based on supply constraints and financial goals.
Steelwedge
URL www.steelwedge.com
Primary business S&OP
Headquarters Pleasanton, CA
Employees Less than 100
S&OP FTEs 100%
S&OP customers 100%
Example customers Spansion, nVidia, Honeywell, Tellabs, Harley-Davidson
S&OP industry verticals High tech, varied
Symphony Metreo
• Summary—Symphony Metreo’s financial S&OP stems from a heritage in profitability
management and optimization.
• Strengths —Its strong focus on conducting profitability what-if analysis, as well as
understanding the financial implications when matching supply to demand and on
building consensus plans.
• Opportunities —Expanded functionality in pre-S&OP work on the supply and
demand side to conduct profitability tradeoff analysis on a more granular level.
Symphony Metreo
URL www.symphony-metreo.com
Primary business Revenue management
Headquarters Palo Alto, CA
Employees 110
S&OP FTEs 29
S&OP customers 2
Example customers Linksys
S&OP industry verticals Manufacturing, CPG, auto, EHT, healthcare
TXT e-solutions
• Summary—Using Microsoft technologies, TXT offers a robust S&OP application
through TXT Demand and TXT Plan suites.
• Strengths—Its strong capabilities in building consensus plans for demand and opera-
tions. Very robust implementation and tracking of the progress of the operational plan.
• Opportunities—Offering richer functionality in the pre-S&OP supply side and con-
tinuing efforts to strengthen its presence in North America.
TXT e-solutions
URL www.txtgroup.com
Headquarters Milano, Italy
Employees 568
2007 revenue ($M) $81M
2007 S&OP revenue $11M
S&OP FTEs 300
S&OP customers 50
Example customers Cadbury Schwepps, Gemalto, Caviro, Fresenius
S&OP geographies EMEA
S&OP industry verticals CPG, life sciences
WAM Systems
• Summary—With a focus on process manufacturing, the company offers robust S&OP
functionality in chemicals, oil and gas, pharmaceutical, and food and beverage.
• Strengths—Has depth in demand planning, conducts tradeoff analysis based on sup-
ply constraints, and operationalizes the consensus plan.
• Opportunities—Expanded functionality to strengthen the integration with finance,
sales, and marketing areas.
WAM Systems
URL www.wamsystems.com
Headquarters Plymouth Meeting, PA
Employees 44
S&OP FTEs 44
S&OP customers 50
Example customers Basell, Lyondell, Solvay, Celanese,
S&OP geographies North America, EU, Asia
S&OP industry verticals Chemicals, oil and gas, pharma, food and beverage
Delivery model On premise
Additional noteworthy S&OP application categories
Consider the following two additional S&OP application categories:

• S&OP applications from service providers —Consulting companies like IBM,
Accenture, Capgemini, Deloitte, as well as the S&OP-centric Oliver Wight have
developed assets and toolkits that are used in conjunction with their services to
enable S&OP processes. Using these assets, companies enjoy the domain expertise
of system integrators in process definition and organization realignment, which are
two critical prerequisites in establishing a successful, integrated, business planning
process. Indian system integrators like Infosys, TCS, and Wipro also offer S&OP
toolkits and services to their customers, using in-house-developed applications or
through partnerships with SCM software providers.
• Long-term, integrated, business planning applications —Most notable in this
category are vendors like Jonova and Equazion. Unlike tactical S&OP application
vendors, this group focuses on analyzing the long-term effect of strategic alternatives
on finance, R&D, operations, and sales and marketing. For example, what are the
effects of the decision to manufacture in Brazil versus China on profit margins, ser-
vice levels, and tax structure? The strength of this category stems from the ability to
conduct simulation-based, what-if analysis to quantify the long-term financial, strate-
gic, and supply chain effects associated with various product, channel, and customer
portfolios.
Recommendations
For users
In addition to the standard recommendations for implementing any enterprise

technology—securing executive sponsorship, allocating adequate in-house resources,
soliciting the help of system integrators, measuring user adoption, and so forth—we
recommend the following for companies looking to implement a successful S&OP
technology tool:
• Assess your S&OP process and organizational readiness. Given the cross-functional
nature of integrated business planning, it is imperative that companies understand the
maturity levels of their S&OP processes and the readiness of their organizations before
making technology investments. Without cross-functional stakeholder buy-in, the tool
will undoubtedly face poor user adoption. Companies with successful S&OP technol-
ogy deployment assigned an S&OP leader that gauged the performance gaps in current
processes and worked cross functionally to improve organizational awareness.
• Analyze data availability, quality, and integrity. The most recurring hurdle to suc-
cess for companies is data unavailability, fragmentation, or poor quality, according to
our research. This comes as no surprise, since much of sales, marketing, and supply
chain data still resides in individual spreadsheets and disparate ERP systems. Cleansing
and harmonizing enterprise data before deploying S&OP technology will improve user
trust in the data, which will in turn lead to higher levels of user adoption. Companies
with successful implementations allocated ample time and resources before their tech-
nology implementations and conducted data availability and quality audits.
• Find out if you already own a tool that can enable S&OP. If you have deployed tech-
nology in BI or supply and demand planning, determine if any of these tools offer
S&OP functionality. Granted, those specific tools might not meet your future vision
of integrated business planning, but they can provide a cost-effective application for
your initial S&OP needs. Talk with your IT department or current vendors to assess
what applications are already available. Companies most satisfied with their S&OP
technology predominantly started the process by extending an incumbent tool to
meet initial needs.
• Wean your users off spreadsheets gradually and carefully. Remember that there
is a reason why spreadsheets are so popular: they’re easy to use, customizable, and
reliable. Their limitations in performance, version control, and data harmonization
typically do not minimize their appeal to individual users. Expect user resistance in
migrating to the new platform. To help with this transition, insist the S&OP tool
that will serve as the system of record can offer a user experience comparable to
Excel. Also, ensure that users can easily export, import, and work interchangeably in
the S&OP tool and MS Excel.
For software providers
The need for integrated business planning will only grow, as companies realize the ben-
efits of synchronizing demand response across all functional areas. For S&OP vendors
to capitalize on this growing demand, they should focus on the following:
• Sell within current customer base. Many user companies indicated that after con-
ducting a tool search for S&OP technology, they decided to go with the incumbent
demand planning or supply planning vendor. They believed their incumbent vendors
understand their business goals and challenges, and that the vendor S&OP tools
would provide the fastest time to value as well as the easiest transition for their users.
To ensure you capture these upsell opportunities, proactively present your clients with
the value proposition of extending current applications with S&OP functionality.
• Enhance the usability, collaboration, and consensus-building capabilities of
your applications. In a number of interviews, companies stated that the final tool
selected won for its ease of use and ability to harmonize data streams across flexible
hierarchies. This need trumped more analytical needs, like depth in simulation or
demand forecasting. Of course, every client’s needs are unique, but given the S&OP
process is ultimately about the convergence of insights from varied stakeholders,
capabilities like consensus building, collaboration, and a friendly user interface will
always play a key role.
• Insist on process and organizational readiness. It’s in the best interest of vendors
to be realistic about their prospects’ current abilities to implement S&OP technology,
especially since selling a technology tool that far exceeds client process and organi-
zational readiness will result in failed projects and dissatisfied customers. Offer your
professional services or partner with a systems integrator to resolve fundamental pre-
requisites like stakeholder buy-in and data harmonization.
• Partner to build end-to-end integrated business planning. Coming from different
backgrounds, S&OP software providers have distinctive strengths and weaknesses.
But to offer an integrated business planning application, a provider must possess a
tall order of domain expertise in demand, supply, and financial management as well
as collaboration, usability, and exception management. Finding a partner that helps
you fill in your functional white space can allow you to go to market with an inte-
grated application faster than your competitors.
Notes
Notes
Notes
Research and Advice That Matter
AMR Research is the No. 1 independent
advisory firm serving supply chain, operations,
and technology executives. Founded in 1986,
AMR Research focuses on the intersection
of business processes with value chain and
enterprise technologies. We provide our
clients in the consumer products, life sciences,
manufacturing, retail, and technology sectors
with subscription advisory services and
expert-led Peer Forums. To learn more about
our research and services, please visit
www.amrresearch.com.
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Supply Chain Planning and Execution

2008 Landscape Series

S&OP Technology Landscape: Evolution to

Market Services Report

ERP Enterprise resource planning S&OP Sales and operations planning

FTE Full-time equivalent SOA Service-oriented architecture

KPI Key performance indicator

© Copyright 2008 by AMR Research, Inc.

Nine-Step S&OP Cycle Next-Generation S&OP

Enact and measure Enact and measure

Publish the plan Publish the plan

Integrated scenario analysis Integrated scenario analysis

Demand consensus Demand consensus

Base demand plan Base demand plan

Source: AMR Research, 2008

Figures 2a through 2c showcase the evolution of S&OP through four phases.

Figure 2a: Phase 1-2 S&OP—localized, rough-cut supply decisions

Customer S&OP Supplier

Operational Product Master Demand Supply Capacity Financial

Figure 2c: Phase 4 S&OP—integrated business planning

Strategic • Global • Plan of Record • Product Portfolio • Network Design

Operational Product •Master

Source: AMR Research, 2008

Source: AMR Research, 2008

Figure 4: Vendors excel at different time horizons

Quarterly or monthly Steelwedge

Source: AMR Research, 2008

Table 1: S&OP vendor review

Pre-S&OP—Demand Pre-S&OP—Supply Pre-S&OP—Financial

ICON-SCM (P) (P) (P) (P)

Source: AMR Research, 2008

S&OP Post-S&OP Meeting

ICON-SCM (P) (P)

Source: AMR Research, 2008

Consider the following two additional S&OP application categories:

In addition to the standard recommendations for implementing any enterprise

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AMR Research, Inc.

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