22nd Oct 2016

Supply Chain Analytics

Prahlad Karnam
SC Consulting and Consumer Products Industry.

2016

New business models

are disrupting the industry.
Is that a business problem
or a technology problem?
CIO, Banking and Financial Markets, Singapore

What CXOs are saying

expect to have customer

oriented real-time
capabilities in the next 2-5

Social
Mobile

years
Analytics

Organizations
must embrace
disruptive
technologies to
drive innovation

say they will use real-time

Cloud

predictive demand
capabilities in the next 2-5
years

Only
3-D Printing

Biotech
Nanotech
3

have an integrated

digital-physical strategy
2016

Consumer adoption and use of digital, mobile and

social media throughout the world is changing the
nature of the debate

Two billion people

online

Global mobile
explosion

In 2010, over of the global

population - 2 billion people
- were on the internet

Over 5 billion mobile devices

are being used globally

Social networking
giant

Data explosion

If Facebook were a country, with over

600 million members it would be the
3rd largest population in the world

Every two days we create as much

information as we did between the
dawn of civilization up until 2003

Smart device
everywhere
There could be 50bn mobile
devices connected to the
internet by 2020

Appification of
everything
There are expected to be 77bn
mobile apps downloads in 2014

2016

Analytics

2016

The next wave will be all about connecting dots and

correlating data to produce actionable insights.
CIO, Retail, United States

We need insight or foresight, but todays dashboards only

provide hindsight
CIO, Government and Public Services, Canada

There is a big deluge of data and

Velocity

Volume

12

terabytes

of Tweets created daily

Analyze product sentiment

350

billion

meter readings per annum

Predict power consumption

7
8

Variety

100s

million

trade events per second

Identify potential fraud

500

million

call detail records per day

Prevent customer churn

video
feeds

from surveillance cameras

Monitor events of interest

80%

data
growth

are images, video, documents

Improve customer satisfaction

2016

Organizations need deeper insights into this data

deluge

2016

Big Data and Analytics Our View

9
8

2016

Analytics optimizes and elevates practices to drive insight and

integrate activities across the value chain
Analytics Sophistication
How do you get INSIGHT?
DESCRIPTIVE Analytics
Dashboards
Foundational Visibility
Multiple Data Sources

How do you ANTICIPATE?

PREDICTIVE Analytics
Modeling

What
happened?

How many,
how often,
where?
What
exactly is
the
problem?

10

PRESCRIPTIVE Analytics
Collaborative Business Processes
Recommended Actions

What
trends will
continue?
Forecasting

What
actions are
needed?

What will
happen
next if?
Predictive
Modeling

Descriptive
Analytics

Predictive
Analytics

Automated Alerts

How do you OPTIMIZE?

What could
happen if?
Simulation

How can we
achieve the
best outcome?
Optimization

How can we
achieve the
best outcome
and address
variability?
Stochastic
Optimization
Prescriptive
Analytics

2016

High level scope of Analytics in Supply Chain

Performance
Management
Cost minimization
Profit Maximization

Spend Analytics
D
Vendor management
Account receivables/ payables
Sourcing optimization
Catalog optimization
PR
Pricing / buying decisions

D
PR

- Maximize Profits ,
Revenue (sales)
- Minimize Costs ,
Working Cap
- Optimize Inventory,
Schedule, Workload
(key constraint
Serviceability & Cost)

Forecasting/ Demand
Planning
Forecast Accuracy /
Variability

11

PD

PR

PR

Inventory optimization
Assembly Run / process
optimization (Capacity
optimization)

PD

Warehouse optimization
Fleet Optimization
Route Optimization
PR

2016

Restless re-invention of IBMs supply chain

12
8

2016

Cloud Business

13

2016

Cloud changes the game by enabling new

business models based on unlimited and
ubiquitous computing power
A Business Model Inflection Point

Business models
defined by
limited and
centralized
computing power

14

Business models
defined by
unlimited and
ubiquitous
computing power

2016

Cloud computing is a model for enabling

convenient, on-demand network access to a
shared pool of configurable computing resources

15

2016

Mobility

16

2016

Mobile Is Changing Interactions Across

Industries

1/3 of citizens

access federal
government website
by logging in from
phones or tablets

17

25% of all

online search for

travel comes from
a mobile device

2016

And Ultimately Changing How Individuals Are

Getting Things Done

47%

use devices
to read
and write
docs

18

62%

use devices
for work
related email

41% use
devices to
access work
related apps

2016

Mobile Transformation

19

2016

Social Media

20

2016

Think About How You Are Capitalizing On Social

Media Data Today
More than 1 billion unique users visit Youtube.com each month
watching over 6 billion hours of video

More than 388 million people view more than 12.7 billion blog
pages each month

There are 500 million tweets daily thats 5,700 per second

50% of Facebook.com users check it daily there are more

than 1 billion users world wide

21

2016

Social Media : Actionable Social Insights

Social
Data

Fuels Insights

15
25

Who are my brand

advocates, fence sitters
and adversaries?
Are my employees
effective at engaging
with customers?
What customers are likely
to defect to my
competitor?
How are my customers
and prospects engaging
with my products &
services?
What is the consumer
sentiment regarding my
brand?
What new products and
features does my
customer desire?
What issues are
surfacing that threaten
my business?

That Enable

For the
Enterprise

Higher Sales
Conversion Rates
Improved
Customer Service
Sales

Higher Loyalty
Marketing

Enhanced Online
Advocacy

Customer Service

New Product
Innovation

Product Development

New Demand
Generation

Workforce Optimization

Risk Mitigation

Operations & SCM

2016

Internet of Things

23

2016

The importance and need for IoT

34
24

2016

25

2016