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*** Business Opportunities ***

World Class Integrated Business Planning Blueprint…

Markets that 21st century organizations compete in are increasingly dynamic, complex battlefields.

Financial success in such battlefields hinges on developing new levels of planning, execution, and

continuous improvement capabilities. With this basic principle in mind, and building on lessons learnt

from helping hundreds of global corporations deal with operational complexity and variability, we have

formulated a unique set of process & technology innovations. We call this set of innovations the

mPower system for Integrated Business Planning.What are the capabilities that mPower provides to

help an organization become world class at IBP?

A typical global corporation is competing in multiple market segments simultaneously (multiple product

categories, different market regions). Let us consider each "market segment" that the corporation

competes in as a battlefield. The objectives for the market segment can be different at different points

of time, ranging from share growth to profit harvesting. Each market segment has different needs and

requires specific strategies around product (features, variety, cost, time to market), marketing (launch,

advertisement & promotion vehicles, pricing), sales (different channel types, distribution reach), and

supply chain (cost, order lead times, flexibility and product configurability). The mPower approach calls

for a management system that drives the decision making across R&D, Marketing, Sales, Supply Chain

and Finance to be synchronized in a way that achieves the enterprise's goal as a whole in the battles for

every market segment.

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The mechanism to drive this synchronization is the Integrated Business Plan. The Integrated Business

Plan is the financial plan for the enterprise made up of the detailed battle plans for each Market

Segment. The detailed battle plans comprise of sub-plans (functional plans) for Product development,

Marketing, Sales, Supply Chain and Finance with clear ownership established. As battle conditions

change, the system creates rapid synchronization across all the sub-plans to still achieve the objectives

of the overall financial plan and the objectives of the battle plan for each Market segment.For example,

let us say that the battle plan for a particular market segment has been drawn up with a product sub-

plan calling for certain features to be delivered in the upcoming launch of a product. However,

marketing has come up with intelligence that a competitor is bringing in a couple of features that might

change the nature of the battle.

Going after these new features could:

• delay the launch of the product

• add additional component cost

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• delay other product launches by diverting critical R&D resources

What is the right decision?

To make an "Optimal" fact based decision the following questions need to be answered rapidly:

• How much additional revenue (units times price) is sales willing to commit to if the new features are

added (or) how much of current revenue plan is at risk for that market segment if these new features

are not added?

• Can supply chain support additional supply of current version of product to cover the delay? At what

incremental cost?

• How much extra cost would it take for R&D to deliver the product on time?

Making the above decision clearly requires a rapid dialog between Product Development, Supply Chain,

and Sales & Marketing & Finance. Once the decision is made, it has to be reflected in the changed sub-

plans of sales, marketing, product, supply, and finance organizations, with clear accountability.For

another example, let's assume that the finance organization recognizes the need for a 10% reduction in

the budgeted costs because revenue is not trending to plan for a market segment. What is the best

place to make the cost cuts across R&D, Sales, Marketing, Supply Chain, or a combination if the goal is to

minimize the impact on the objectives in the financial plan?How such decisions are made by the various

functions in their sub-plans and rapidly synchronized across the other functional sub-plans in the

enterprise will be the key to winning in the battlefields that are 21st century markets.

With that context, the key elements of the mPower system for IBP are the following:

A.) End-to-End Visibility - Available at the fingertips of management

• Market Intelligence (Customer needs, demand drivers, competitive positions against demand drivers,

size and share positions)

• Supply Base Intelligence (Supplier prices, price plans, capacity issues, distressed suppliers... )

• Plan Status(Execution states against plans

B.) Plan Creation Process - Aligning Market Opportunities, Strategies, Resources, and Initiatives

• Market Segment Battle plan so Market Segment Opportunity Forecasts, Strategy & Objectives

- Product Portfolio Plans

- Marketing Plans

- Sales/Channel Plans

- Supply Chain Plans

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• Financial Plan (Roll up the Market Segment Battle Plans and the supporting functional plans, resources

and spend)

o Corporate financial objectives

o All Market Segment Battle plans, functional plans to support the battle plans rolled up

o Financial objectives vs. Segment Battle plans reconciliation

o Financial budgets allocation

o Shared services plans and allocation

C.) Plan Execution & Plan Adjustments - Quick, Optimal Response to Variations, and Rapid re-

synchronization of plans

• Visibility to Market Intelligence (risks & opportunities relative to plan assumptions)

• Visibility to execution deviations for each sub-plan(threats to plan)

• Visibility to all options/levers available to course correct (playbook)

• Ability to do rapid trade off analysis for each option with financial objectives (scenario planning)

• Consult/collaborate with other sub-plan owners in real time where necessary before decision to

change plan (reduce variability across system)

• Notify all other sub-plan owners of changes (early warning, synchronize)

• Ability to move budgets to where the money is needed most to win the most important battles

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