Una nuova Enterprise intelligence: fare leva sulle informazioni per migliorare le performance di business. Gianmauro Dehò

Transcription

1 Una nuova Enterprise intelligence: fare leva sulle informazioni per migliorare le performance di business Gianmauro Dehò Associate Partner, & Change, IBM GBS

2 The world is Smaller and Flatter: the reality of living in a globally integrated world is upon us Frozen credit markets and limited access to capital Economic downturn and future uncertainty Energy shortfalls and erratic commodity prices Slowing superpowers and emerging economies Increasingly complex supply chains and empowered consumers Green impact and Corporate Social Responsibility always more relevant Evolution from product to service Risk/opportunity growth Information explosion

3 Let s build a Smarter Planet The new economic environment 4 major IBM initiatives New Intelligence Analytics and Optimization New Intelligence Strategic Profit Improvement Smart work Smart work Green and beyond Green Value Curve Growth Platform Dynamic Infrastructure Legal and Compliance 1 Adherence to law in the countries of production, operation and distribution Strategic Philanthropy 2 Alignment of environmental activities with social issue that supports business objectives Values-based Efficiency Self Regulation 4 3 Measurable cost Corporate policy savings through extending beyond efficient or winwin scenarios the bounds of law Incorporates the company's value system and/or code of conduct and guides internal & external business behavior 5 Access to new markets, new partnerships or product/service innovations that generate revenue

4 The new economic environment forces decision makers on leveraging information rather than be reliant on their intuition Smart work Smart work Do more with less Be more agile Defend market share Intelligent Cost take-out and efficiency Intelligent profitable growth Proactive risk management New Intelligence How often have you made major decisions with incomplete information Always Frequently Sometimes Rarely Never 1 in 3 often do Source: EIU launch survey for IBM BAO, 2009

5 To help companies becoming Smarter Enterprises IBM has launched Enterprise the Analytics & Optimization new Service Line Content BAO Client Value Enterprise Information Information On New Intelligence Advanced Analytics and Optimization Intelligence & Intelligence Information Agenda Information Technology Automation ERP/ Data Warehousing Operational Efficiency Data Warehousing 5X more value realized by organizations using information effectively Maturity of Client Information Use

6 spanning from cost take out to revenue growth Smart work Smart work Possible Action Areas Sample of Opportunities Capital Optimization Working Capital Capex Inventory; A/R; A/P Prioritize, Postpone, Cancel Warehousing & Logistics Intelligent Logistic Network; Inventory Optimization Cost Reduction Manufacturing Product Development Capacity Usage Optimization Simplify; Prioritize Sourcing; Compliance SG&A IT, HR, Finance, Order Mgt Reduce Low-value Add; Outsource Revenue Enhancement Pricing; Marketing Mergers & Acquisitions Dynamic Optimization; New Mktg. Intelligence Target Selection; Post Merger Integration

7 The suggested Strategic Profit Improvement approach... 1 Strategic guidelines 4 Benchmarking on hot components 3 Component Model 5 Company CBM Components evaluation Hot Components Inititatives definition 2 Analysis on key figures (economics) 6 Inititiative qualification and transformation plan

8 ILLUSTRATIVE CBM-OEMAutomotiveMap 3 Component Model Company CBM Components evaluation Hot components Administration Product & Process Development Marketing and Sales Service and Aftersales Corporate/LOB & & Forecasting Portfolio & & Direct Control Execute Organization & Process Policies Alliance Strategies Human Capital Legal & Regulatory Intellectual Property Knowledge & Learning Building/ Facilities & Equipment IT Systems & Operations Capital Appropriation Risk & Internal Audit Treasury Tax Accounting & General Ledger Cost Research & Development Rules & Policies Program Configuration Validation Change Mechanical / Electrical In-vehicle System Process Tool & Build Master Rules & Policies Scheduling Quality Control Plant Operations Maintenance Logistics Inventory Transportation Sales & Promotion Brand Forecast & Analysis Dealer Lease Order Post Vehicle Sales Warranty Quality Parts Vehicle Service End-of-Life Vehicle

9 = Strategic = Competitive Parity = Basic Administration Corporate/LOB & Organization & Process Policies Alliance Strategies Human Capital Legal & Regulatory Intellectual Property Knowledge & Learning Building/Facilities & Equipment IT Systems & Operations Administration Corporate/LOB & Organization & Process Policies Alliance Strategies Human Capital Legal & Regulatory Intellectual Property Knowledge & Learning Building/Facilities & Equipment IT Systems = high capital & Operations = high cost = high capital + high cost = immediate priority = medium priority = no action Administration Corporate/LOB & Organization & Process Policies Alliance Strategies Human Capital Legal & Regulatory Intellectual Property Knowledge & Learning Building/Facilities & Equipment IT Systems & Operations Administration Corporate/LOB & Organization & Process Policies Alliance Strategies Human Capital Legal & Regulatory Intellectual Property Knowledge & Learning Building/Facilities & Equipment IT Systems = high capital & Operations = high cost = high capital + high cost & Forecasting Capital Appropriation Risk & Internal Audit Treasury Tax Accounting & General Ledger Cost & Forecasting Capital Appropriation Risk & Internal Audit Treasury Tax Accounting & General Ledger Cost & Forecasting Capital Appropriation Risk & Internal Audit Treasury Tax Accounting & General Ledger Cost & Forecasting Capital Appropriation Risk & Internal Audit Treasury Tax Accounting & General Ledger Cost Product/ Process Portfolio & Research & Development Rules & Policies Program Configuration Validation Change Mechanical In-vehicle System Process Tool & Build Product/ Process Portfolio & Research & Development Rules & Policies Program Configuration Validation Change Mechanical In-vehicle System Process Tool & Build Product/ Process Portfolio & Research & Development Rules & Policies Program Configuration Validation Change Mechanical In-vehicle System Process Tool & Build Product/ Process Portfolio & Research & Development Rules & Policies Program Configuration Validation Change Mechanical In-vehicle System Process Tool & Build Master Rules & Policies Scheduling Quality Plant Operations Maintenance Master Rules & Policies Scheduling Quality Plant Operations Maintenance Master Rules & Policies Scheduling Quality Plant Operations Maintenance Master Rules & Policies Scheduling Quality Plant Operations Maintenance Supply Chain & Logistics Inventory Transportation Supply Chain & Logistics Inventory Transportation Supply Chain & Logistics Inventory Transportation Supply Chain & Logistics Inventory Transportation Marketing & Sales Sales & Promotion Brand Forecast & Analysis Dealer Lease Order Marketing & Sales Sales & Promotion Brand Forecast & Analysis Dealer Lease Order Marketing & Sales Sales & Promotion Brand Forecast & Analysis Dealer Lease Order Marketing & Sales Sales & Promotion Brand Forecast & Analysis Dealer Lease Order Service & Aftersales Post Vehicle Sale Warranty Quality Parts Vehicle Service End-of-Life Vehicle Service & Aftersales Post Vehicle Sale Warranty Quality Parts Vehicle Service End-of-Life Vehicle Service & Aftersales Post Vehicle Sale Warranty Quality Parts Vehicle Service End-of-Life Vehicle Service & Aftersales Post Vehicle Sale Warranty Quality Parts Vehicle Service End-of-Life Vehicle The CBM map is very flexible. We apply different lenses according to the project objective (i.e. strategic view, cost view, performance view, green view, information management view) to prioritize 3 actions which enables profit improvement Component Model Direct Control Execute Administration Corporate/LOB & Organization & Process Policies Alliance Strategies Human Capital Legal & Regulatory Intellectual Property Knowledge & Learning Building/Facilities & Equipment IT Systems & Operations Company CBM & Forecasting Capital Appropriation Risk & Internal Audit Treasury Tax Accounting & General Ledger Cost Product/ Process Portfolio & Research & Development Rules & Policies Program Configuration Validation Change Mechanical In-vehicle System Process Tool & Build Master Rules & Policies Scheduling Quality Plant Operations Maintenance Supply Chain & Logistics Inventory Transportation Marketing & Sales Sales & Promotion Brand Forecast & Analysis Dealer Lease Order Service & Aftersales Post Vehicle Sale Warranty Quality Parts End-of-Life Vehicle Some Some possible possible dimensions: dimensions: Strategical Strategical IT/Information IT/Information leverage leverage Green Green Organizational Organizational Sourcing Sourcing Vehicle Service Strategic perspective Focus on Core Competencies Core Competitive Basic perspective Cost High Medium Low Green Perspective Carbon Mgmt impact High Medium Low Focus applications High Medium Low IT Direct Control Execute Direct Control Execute Direct Control Direct Execute Control Execute Company CBM Components evaluation What is really strategic for? Where are costs? Hot components What impacts on Green? How is IT application coverage?

10 The combination of the applied lenses will drive the the Hot Components ILLUSTRATIVE 3 Company CBM Component Model selection of Components evaluation Hot Components Consumer Manufacturing Inventory and Distribution Administration Direct Category/Brand Category/Brand Brand P&L Assessing Satisfaction Manufacturing /Materials Development & Inventory Network & Asset Configuration Distribution Oversight Corporate Corporate Alliance Corporate Governance Control Matching Supply and Marketing Development and Effectiveness Product Ideation Insights Account Manufacturing Oversight Control Inbound Transportation Outbound Transportation External Market Analysis Organization and Process Legal, Tax and Regulatory Compliance Execute Concept/Product Testing Product Development Product Marketing Execution Consumer Service Product Directory Value-Added Services Account Servicing Retail Marketing Execution In-store Inventory Mgmt Directory Product/Component Manufacturing Assemble/Pkg. Products Plant Inventory Manufacturing Distribution Center Operations Transportation Resources En route Inventory Treasury & Risk Mgmt Accounting & Reporting Indirect Facilities & Equip Mgmt Resource Development HR Administration IT Systems & Operations Consolidate Optimize Re-engineer Outsource

11 Benchmarking on hot components The analysis will be based on facts: we will provide figures from the IBM Benchmarking Program 4 IBM has partnered with APQC and other leading organizations to form the Open Standards Benchmarking Collaborative (OSBC) APQC s PCF standard enables fair comparison, with clear and common definitions for business processes and activities The IBM Global Benchmarking Program includes: - > 18,000 companies in 80 countries, of which: 90% of the Dow Jones Industrial companies - >1,500 Key Matrix (KPI) available - >700 leading practices supported by: > 1,500 case studies During 2008: - > 3,600 new companies joined the Program through IBM - > 56,500 Benchmark inquiries on the KPI

12 In the following we summarize some IBM assets useful to address Cost Take Out and Working Capital Optimization 5 Inititatives definition Possible Action Areas Sample of Opportunities Capital Optimization Cost Reduction Working Capital Capex Warehousing & Logistics Manufacturing Product Development Inventory; A/R; A/P Prioritize, Postpone, Cancel Intelligent Logistic Network; Inventory Optimization Capacity Usage Optimization Simplify; Prioritize Sourcing; Compliance SG&A IT, HR, Finance, Order Mgt Reduce Low-value Add; Outsource Revenue Enhancement Pricing; Marketing Mergers & Acquisitions Dynamic Optimization; New Mktg. Intelligence Target Selection; Post Merger Integration

13 Some initiative are focused on cost reduction as the IBM s Dynamic Inventory Optimization Solution (DIOS) What is and how it works? 5 Inititatives definition Developed by IBM Zurich Research Centre and Center for Optimization Uses a combination of scientific approaches to manage inventory Uses patented algorithms and advanced programming techniques Provides an item by item analysis of the current product range Identifies where inventory is too high or too low and recommends stock levels for each product Aids with the development of plans to reduce overall inventories Generate demand forecasts and replenishment signals % of Inventory Reduction Achieved Annual Usage Value (Million $ ) Note: Annual Usage Value (AUV) = annual value of the goods distributed from the warehouse.

14 In order to optimize distribution network performances IBM labs developed SNOW (Supply Network Optimization Workbench) Decision-Support Functionality - Facility location - Sourcing strategy - capability allocation - Distribution strategy - Service territory assignment - Make vs. Buy - Global tax exposure minimization Raw Data Baseline Model Modeling Considerations - Investment capital - SCM cost - Sales revenue - Service level - Capacity - Lead times Optimal Network Optimization

15 In the following we summarize some IBM assets useful to address Revenue Growth 5 Inititatives definition Possible Action Areas Sample of Opportunities Capital Optimization Cost Reduction Working Capital Capex Warehousing & Logistics Manufacturing Product Development Inventory; A/R; A/P Prioritize, Postpone, Cancel Intelligent Logistic Network; Inventory Optimization Capacity Usage Optimization Simplify; Prioritize Sourcing; Compliance SG&A IT, HR, Finance, Order Mgt Reduce Low-value Add; Outsource Revenue Enhancement Pricing; Marketing Mergers & Acquisitions Dynamic Optimization; New Mktg. Intelligence Target Selection; Post Merger Integration

16 The Pricing Optimization solution is based on price-volume curve & price elasticity analysis to model consumer demand and identify the best price for a product/category to maximize profit 5 Inititatives definition Pricing effectiveness analytics Rules-based pricing Price maintenance Everyday price optimization Promotion optimization Markdown/clearance optimization Lifecycle price management Understand Price Response Curve/Elasticity (change in volume due to change in price) Understand cannibalization effect at SKU level of a price or promotion change Profit per Unit The solution provides the best price to increase demand on more profitable products and to forecast future demand based on causals and individual drivers 12% 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% -12% Unit Sales

17 5 Reputation is easy to be tarnished, but hard to regain. Reputation is Simply Not Worth Risking. Inititatives definition senior executives responsible for managing risk, reputational risk emerged as the most significant threat to business Reputation: Risk of Risks, The Economist Intelligence Unit 2005.strong correlation between a 57% increase in unfavorable articles in the spring of 2003 and Companies weak stock price. What Price Reputation, Week July, 2007

18 IBM has created a solution that detects early reputation risk indicators and converts risks into potential opportunities 5 Identify Topics and Issues to monitor Inititatives definition User interacts with data to discover insight Source User defines analytical models (Rule Editor) Trend Topic by vs Entity month Co-occurrence Analytics Clustering Sentiment Topic Classification new topics Brands Only selected segments snippets of an article which discussed the intersection of the topic are selected Issue Extract Blogs, Boards, News sources, Forums, Complaints, NGO s, CRM, and Internal structured data Dashboard Analysis Reporting Trending and Sentiment Analysis Strong, Weak, Emerging Signal Alerts

19 The House of Carbon supports the analysis of where the carbon is generated across the business, enabling focus on priority areas and adoption of solutions to reduce carbon emission and costs 5 Inititatives definition Where should we focus our carbon reduction efforts? How integrated is our carbon strategy with our business strategy? Do we have an integrated programme of action? How do we finance our carbon programme? and product How do we communicate our green credentials to our customers? What are the new green market opportunities and how do we exploit them? How can we design our products to be more carbon-friendly? How do we optimise these benefits throughout the full product lifecycle? Supply chain How can we make our end-to-end operations more carbon-efficient: Sourcing Manufacturing Shipment Transportation Reverse Logistics Spare Parts Post Life Cycle People How do we establish and implement effective green HR policies:? Travel? Home working? How do we engage with our employees on the green agenda? How do we enable and sustain behaviour change across our organisation? IT How do we reduce carbon in our IT: Data centres? Distributed IT? How do we optimise to get more IT capacity for less carbon? How do we address immediate capacity/power issues? How can we manage IT to minimise energy consumption? Property How do we reduce carbon in our: Buildings and offices? plant? Distribution centres? How does the property portfolio contribute to our carbon footprint and how can we improve it? How do we work towards a more sustainable property portfolio? Information How do we measure and monitor information on carbon consistently and efficiently? How do we demonstrate regulatory and policy compliance? Do we have a carbon scorecard and key performance measures?

20 Best impacting opportunities will be described and quantified in order to prioritize short term/medium term strategic bold actions 6 6 Inititiative qualification and transformation plan Case Prioritization Matrix $70 $60 $50 $40 $30 $20 $10 $0 -$10 $6 -$11 -$13 $16 -$7 12-month spend 12-month benefit Cumulative net benefit $26 -$6 $34 $124 $166 $42 $42 $42 $180 $160 $140 $120 $100 $80 Cumulative net benefits ($ millions) $60 $40 $20 $0 High Benefit $20 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Time (years from project launch) Phases 1 & 2 return on investment Phase I Phase II complete complete 5-year ROI = 126% (24 months) (48 months) 7-year ROI = 241% -$20 Low Low Ease of Implementation 7 High C um ulative Predicted Value ($M M ) $4.38M Reduced Logistics & Transport Benefit Realization Plan $28.76M Reduced & Manufacturing $38.39M Reduced Deductions & Returns $45.00 M IT Savings $56.27M Inventory Savings ONGOING* $68.24M Inventory Savings ONE TIME* * Includes Working Capital, Carrying Costs, & Reduction in Lost Sales $140.64M Reduced Costs $382M Total Impact Implementation Plan Executive summary The high-level implementation plan with key enabling actions FY 02 FY 03 FY 04 FY 05 FY 06 Beyond FY Beyond 2006 Configuration planning Propose physical network configuration that is consistent with proposed strategy Develop detailed transition plan & costs for proposed physical network Undertake consultation as required Update plan & commence implementation Network reconfiguration Increase productivity at retained sites Transfer volumes to retained sites Close sites not suitable for retention Network expansion(timings as required) Identify general locations for RDCs/NDCs New NSW and new VIC on-line by Plan general layout & operation FY 06 based on current predictions Develop RDCs/NDCs as required to cope with Additional NSW RDC/NDC Volume-based decision review volume growth as it occurs [Current volume projections indicate that Additional VIC RDC/NDC Volume-based decision review additional NDC and RDC capacity will be Earlier or later, based on actual volume growth required from some time in FY'06] Enabling actions (1) Upgrade SC planning & replen. systems (2) Implement effective communications & mgt. processes (S&OP) esp. with Logistics See the next -level plan for key (3) Roll-out e-commerce enabling actions (4) Address SC organisation, people and KPIs (5) Implement programme office to manage combined strategy and tactical projects Stakeholder & Risk Estimated Benefits

21