creating a connected enterprise - ecapital advisors€¦ · create a connected enterprise • the...

Creating a Connected

Enterprise

Dave Collins

Connie Walsh

11/1/2018 © 2018 eCapital Advisors, LLC.

© 2018 eCapital Advisors, LLC. 2

aligning data, operations & workflow…

driving success

Create a Connected Enterprise

• The best performing companies understand the importance of creating a connected and

profitable enterprise.

• Too many companies still have siloed and disparate planning processes and it can take a long

time to understand the impact of a change in operations on your financials.


Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results.

- Andrew Carnegie

Benefits of Connected Enterprise


Alignment

Communication

Timeliness

Accuracy

Collaboration

Problem Solving

CASE STUDY

Allen Edmunds


Ecommerce

Manufacturing

Concept Stores and Outlets

Wholesale

The Connected ENTERPRISE


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8© 2018 eCapital Advisors, LLC.

Challenge Approach

Manual intranet reporting Identify a solution that supports

company sales and margin growth

Limited metrics on reports Identify a solution that supports location

assortment strategies

Reporting required IT support for

changes

Identify a solution increases efficiencies

– central repository for all to access

Process was not scalable for future

growth

Allow quick access to data

Opportunity to be more analytical and

proactive with data

Improved accuracy of reporting

Financial Planning & Forecasting (FP&A)


Product Mix


Price Optimization


Location & Channel Models


Fulfillment


Promotions & Events


Retail & Location Space



Cross-functional business activities

…allow faster insight to drive business profitability

Business Decision Example Financial Impact Operational Impact

Promotional Timing

change

Decision made to

move major sale to

week later due to

holiday shift

• Financials shift or adjust

• Impact to surrounding

weeks

• Store labor adjustment needed

• Production updated

• Shipping schedules updated

• Advertising change

• Customer Service alerted for staffing update

• Finance updates needed

Retail price increases

based on higher

material costs

Retail prices

increasing due to

market conditions

and manufacturing

cost increases

• Margin impact – rate higher

but need to monitor $

• Possible sales unit impact

dependent on price elasticity

• Average unit sale change

• Merchandise team to update retails

• Stores update signage and possible tickets

• Shipping may have to relabel prior to shipments

• Website to update

• Communication needed to all channels

• Marketing needs to update all advertising/materials

Delivery date moves

out for new

collection

Issues with quality

and product

introduction is

delayed by one

month

• Lost revenue/profitability

• Lost market share

• Shipping adjustment

• Store presentation update needed

• Website to delay introduction

• Marketing adjustments will be needed

• Finance needs to update revised forecasts

Sales trend changes Sales trend below

plan and forecast by

10% due to

economic

conditions

• Negative impact to revenue

and profitability

• Inventory overstocks

(“undersold”)

• Higher carrying cost of

overstocks

• Demand plan updates needed

• Production updates need to be lowered

• Material planning adjustment needed

• Labor adjustment

• Shipping dept to be alerted and update scheduling

• Possible capacity issue in warehouse/stores if overstocks

• Merchandising/Marketing – adjustments needed to change offers

• Finance to update sales and margins and carrying cost of additional inventory

1. Improved in-stocks resulting in increase in sales

2. Reduced overstocks resulting in lower carrying costs and reduced markdowns

3. Greater manufacturing efficiencies, due to higher forecast accuracy

4. Ability to adjust assortment offering, promotion offer or pricing, resulting in higher sales and margins

5. Greater efficiency – >50% time savings

6. Optimized labor – stores, warehouse shipping, due to alignment of cross-functional metrics

Quantifiable Results

19

Game-Changing Capabilities

Allen Edmonds & eCapital

Planning Analytics Implementation

Shoe Sizing…Allen Edmunds Advantage

• Shoe size is more than length. Width is just as important. We have big, small, narrow,

wide and everything in between.

• Because we are the manufacturer, we can handcraft shoes in varying sizes.

Competitive shoe companies make their shoes overseas and to keep inventory low,

they make only "gut" sizes (e.g., 10-12 medium) that supposedly fit everyone. As a

result, most men wear shoes that are too long for their feet as they need the room to

accommodate their foot width. Men who get fitted by a Master Fitter are surprised to

learn they have never worn a proper fitting shoe.

• From size 6 to 16 and narrow AAA to wide EEE, we craft over 100 sizes of shoes.

• Proper fit is important for durability and comfort along with foot and back health.

• To get the best fit possible, our Master Fitters in our stores help you try on any of our

thousands of pairs in each store.


Results… Continuous Improvement


Overall Time Savings!

>50%

Consistency of reporting

Less duplication of workload

More detailed data

readily available

AccuracyFlexibility of Reporting

Breadth and depth of

data

Key Takeaways


• Requirements

• Alignment on metric calculations and hierarchy• No assumptions

• What the business has, what the business needs

Requirements

• DesignFlexibility

• Dedicated implementation team

• Training• Post training

• On-site consultant

Team & Training

• Testing + regression testing

• Test environmentTesting

Creating the Connected

Enterprise

Competitive

Advantage

MANAGEMENTEXCELLENCE VIA EPM

OPERATIONALEXCELLENCE VIA ERP

1Make Smart decisions with

deep insight

2Gain Agility to adapt, and drive

decisive actions

3Ensure Alignment in the

extended enterprise

4Drive down Cost of processes

and operations

5Improve Quality across the

organization

6Increase Speed of transactions

in the performance network

NEED HEADLINE


Integrated

Analytics

Integrated

Processes

SCM

PLMCRM

ERP

HCM

Financial

Close

Supply

Analytics

Demand

Analytics

Finance/Risk

Analytics

Management

Analytics

Integrated

PlanningOperational

Planning

Profitability

Cost Mgmt

Financial

Planning

Strategic

Planning

NEED HEADLINE


Grander vision

Decision optimization

Greater business impact

Financial performance

Common focus

Cross-functional transparency

Share information…

Enable data access…

Identify outliers…

Operational excellence…

Establish enterprise goals…

Create enterprise analytics…

Finance Analytic Driven Insights


▪ Role-based reporting and

analytics; within Finance and

integration to select functions

▪ The right information and KPIs;

“less is more”

▪ Driver-based planning with

streamlined, integrated calendar

▪ Data governance, stewardship,

and management

▪ Aligned talent and capabilities

▪ Integrated technology platform

Today’s “Playbook”

Visualization

Predictive Modeling

Social

Collaboration

MAINSTREAM EMERGINGADVANCED

The Digital Promise

Digital

Analytic

Roles

Data

Integration &

Governance

Cloud

Adoption

Digitally

Accessible

Insights

Big DataRobotics

Partnering with business to develop strategic, operational and financial plans, manage execution to those plans and makes decisions based on insight derived via analytics

Data Management Best Practices

• Common master data management

• Business managed integration processes

• Provide self service data investigation

• Deliver full audit trails and reporting

• Integrate Management & Operational Systems

Common MDM

2XReduction Process

& Rework

30%Reduction Data

Collection

1/3

Information Delivery Best Practices

• Common analytic standards

• Ensure data governance

• Create integrated catalog of KPI

• Link financial & operational data

Fewer Business

Reports

64%Reports from

Central Source

44%Greater Confidence

in Information

70%

Advanced Analytics Best Practices

• Industry specific analytics

• Link revenue & cost to business drivers

• Provide self service data investigation

• Deliver full audit trails and reporting

• Integrate Management & Operational Systems

Increase Predictive

Capability

6XReduction Data

Validation

42%Faster Response to

Ad-hoc Requests

29%

© 2018 eCapital Advisors, LLC.

Where do you go from here?

• Assess where you are today• People, Process & Technology

• Governance, policies, and “why do we do that?”

• What can’t you do today?

• Tie your strategy to company vision

• Plan to Prepare

• Directionally correct and swift decision vs. slow and perfect

• Avoid analysis paralysis

• Expectations for outcomes – What does “success” look like?

• Prioritize short- and long-term goals

33


Where do you go from here?

• Assess

• Company Vision

• Plan to Prepare

• Directionally Correct

• Expectations

• Prioritize

34


Driving Performance Improvement

Transformation

• Strategy

• Program Leadership

• Education

• Change Management

Analytics

• Data Management

• Data Science

• Visualization

Performance Management

• Business Modeling

• FP&A Leadership

• Financial Consolidation

35

ANNUAL

REVENUES

25M

EMPLOYEES

80+

CUSTOMERS

300+

ESTABLISHED

2001HEADQUARTERS

MSP

PLATINUM

PARTNER

Thank You!

ecapitaladvisors.com

creating a connected enterprise - ecapital advisors€¦ · create a connected enterprise • the...

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