implementierung eines globalen sales planning … merck is not the same as merck merck kgaa and the...

© 2013 IBM Corporation

Implementierung eines globalen Sales Planning Tools für die Merck Gruppe

Thomas Ulmer

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Agenda

1. The Merck Group – Company overview

2. Project overview and key functionalities of Tool

3. Project plan

4. Live demonstration of tool

5. Operating Model & support concept

6. Summary

Merck is a leading pharmaceutical, chemical and life science

company that conducts its operations in four divisions:

– Merck Serono: Prescription medicines of both chemical andbiological origin in specialist indications

– Consumer Health: Over-the-counter pharmaceuticals forpreventive health care and self-treatment of minor ailments

– Performance Materials: High-tech performance chemicalsfor applications in fields such as consumer electronics, lighting,coatings, printing, plastics, and cosmetics

– Merck Millipore: Products and services for the life science industry, used in research and analytical laboratories as well as in pharmaceutical manufacturing

�Approximately 39,000 employees in 66 countries

�Merck manages its operating activities under the umbrella of Merck KGaA, which was listed on the Frankfurt Stock Exchange in1995 and admitted to the DAX® in 2007

�Around 30% of the total capital is publicly traded, while the Merck family, as general partner, indirectly holds around 70%

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Merck at a glance

Pützer Tower and Pyramidat Darmstadt headquarters

www.merckgroup.com

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Merck is not the same as Merck

� Merck KGaA and the U.S. pharmaceutical company Merck & Co.

have been two independent companies since 1917.

� Common historical roots: – 1891 Merck & Co. founded in New York by Georg Merck, a member

of the Merck family

– As a consequence of World War I, Merck & Co. was expropriatedand became an independent company.

� Today, Merck & Co. holds the rights to the name within North

America. Merck operates there as EMD and holds the rights to the name Merck in the rest of the world.

– Outside North America, Merck & Co. operates as Merck Sharp and Dohme (MSD) or MSD Sharp & Dohme.

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Corporate structure

Group functions

Div

isio

ns

Merck Group

Group functions

Merck

Serono

Div

isio

ns a

nd

their b

usin

esses

Consumer

Health

Merck

Millipore

Performance

Materials

Local subsidiaries

Oncology

Multiple Sclerosis

Fertility,Endocrinology &General Medicine

Mobility

Everyday healthprotection

Women‘s andchildren‘s health

Cough and cold

BioScience

Lab Solutions

Process Solutions

Liquid Crystals

Pigments & Cosmetics

6

Merck Group

Divisions 2012

Sales: € 10,741 million

Note:

* excluding Corporate and Other

EBITDA pre one-time items*: € 3,175 million

€ million € million

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Merck Group sites worldwide

A presence at 158 locations in 66 countries

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Agenda



3. Project plan



6. Summary

9

Current situation:

• Heterogeneous

picture across

countries and

divisions

• Various planning

templates being

circulated between

countries, regions

and global

• Long shadow

processes to plan

sales

2. Sales Planning Project OverviewA Journey Towards a Global / Divisional Planning Approach

Introduction of a

harmonized Sales

Planning approach…

Objective:

• Introduction of a

new Sales

Planning workflow

to support Sales

submission in OP /

Forecast

• Global Sales

Planning tool will

support a

simplification in

Sales Planning

• Improved ability to

model and explain

Sales drivers

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2. Sales Planning Project Overview Focus is on Improving the Planning Process

Planning Simplification:

- All data to be available on a SKU level but ability provided to go simple where needed via Splashing functionality (Plan on SBU, automatic breakdown to SKU level)

- Ability to plan at different levels (BF, Country, SKU)

Easy Scenario Planning (“Sandboxing”):

- New tool will enable scenario building using Splashing functionalities at any stage of the to be defined planning workflow. Different scenarios can be saved and reloaded at a later point in time.

Integrated Reporting:

- Adhoc and Standard Reports available to keep track of your planning numbers (incl. Price/Volume Analysis)

Scenario A

Scenario B

Scenario C

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Complexity meets simplicity

(splashing function):

• Top-down based on specific rules

• Bottom-up from SKU and customer

Actual Sales Data

(Gauss. finance)

Actual Sales Data

(Gauss. finance)

Pre-fillingPre-fillingDivisional /

Group Forecast

Divisional / Group

Forecast

In Scope for First Release:

• Ongoing business discussion

• Forward looking view on Sales

• Price Volume

• Reporting (local/global)

• OP Sales Planning

• Quarterly Forecast

BU / SBU / Country / Region

Forecast

BU / SBU / Country / Region

Forecast

CorrectionsFlexibility to enter:

• Country

• Regional

• Global

Input responsibility:

• New products

• Customer

• Prices

2. Sales Planning Project Overview Process workflows to be defined

• Volumes

• Territory

• Other input

Out of scope for First Release:

• Cogs, Opex and Cost Centre Planning • Midterm Plan and Strategic Plan• Target Setting and Preview

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OP Sales Planning Process

Data Entry

2. Possible Sales Planning Process for a DivisionSales Submission for Operative Planning

Release / Approval

Countries

Validation/Review

Reopen/Adjust

Regions/BU/BF

Release / Approval

Validation/Review

Reopen/Adjust

DIV/Global

Release / Approval

Prefilling

Business / Finance

Finance/ Business

• The Sales Planning Tool comes with an integrated workflow • Each division can decide on their particular requirements to avoid sending

spreadsheets between planers and approvers

Local Finance/ Business

Local Finance/ Business

Business / Finance

Business / Finance

Business / Finance

Business / Finance

Business / Finance

2. Why IBM Cognos TM1

13

Key Deciding Factors for IBM Cognos TM1:

TM1 is perceived as a flexible tool with good standard planning

functionalities

Easy to use (Excel- and web-based)

Good performance through in-memory technology

TM1 offers good workflow functionalities

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Agenda



3. Project plan



6. Summary

3. From Start to Prototype to finish line

•Develop the requirements regarding functionality of tool

•How to do data entry

•What kind of reports

•Derive data dimension

• Structures and data available

• Splashing, Phasing, Prefilling, Calculations implemented

• Input masks are implemented

• Reports are implemented

Mock-Ups

Prototype I

•Build data architecture (back-bone of Sales Planning Tool)

•1st set of data loaded

•Validate dimensions to ensure it matches data entry /report requirements of users

Prototype II

Feb 13 Apr 13 May13

Go-live

version

User-

Accepta

nce T

est

Role

-out pre

para

tion / C

ut-

over

Jun /Jul 13

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Agenda



3. Project plan



6. Summary

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Agenda



3. Project plan



6. Summary

5. Support concept and Operating model

• 300 users(MS 150; CH 50; PM 50; MM 50), structured support process

required

• Sales Planning Tool provides general functionality across all divisions, but has

been tailored to meet the divisional needs in areas such as workflow, input

masks, valid hierarchies (customers/products/territories), processes, etc.

• Prerequisite for go-live: Sales Planning Tool fully working, UAT passed

• Questions in 3 areas (content, technical and material master data)

• Learnings from other projects indicate that users have difficulties to

differentiate between the 3 areas and want quick support

• After the initial bug-fix, the vast majority of questions are regarding content

General assumptions

5. Roles and Responsibilities Post Go-LiveSupport Model

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User has a Problem

2nd Level Support:

3rd Level Support:

Content: CO-B

Technical: AC-S /IS

Product Master Data: Div. Data Manager

1st Level Support:

Country / Regional Key User (ratio: 10:1)

• Knows tool (Navigation, data entry, reports, workflow)

• Understands key functionality (Pre-filling, Splashing )

• Understands FAQs, log incident

Divisional Power User (ratio: 60:3)

• Administrate divisional workflows during and before a

planning cycle, User management (approve / reject users)

• Able to distinguish between content/ technical and master

data questions and solve divisional content

• All other questions

Distributed Information

Training Material available permanently in Sales Planning Section on Finance Connect

Targeted availability of Final Version: May 20th

E-Learning

E-Learning courses to be prepared using TT Knowledge Force. Link to E-Learning available on Finance Connect

Targeted availability of Final Version: May 20th

WebexSessions

Weekly Webex sessions to be offered

Targeted start of regular trainings: June

Classroom Sessions (2-3h each)

1. PM-L Heads of Customer Service 21. May

2. CH Controller Meeting 9./10. July

3. Regional Controlling Workshops:Singapore 22./23. MayBoston 28. /29. MayBarcelona 13./14. June

4. Other Trainings tbd. (Darmstadt + Worldwide)

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5. Timing & Availability of Trainings

Availability of Training Elements will follow below Schedule

All dates

tbd.

Provided by CO-B

Provided by CO-B

5. User authorization

• User authorization (via workflow tool):

• User requests change of user access / new access

• Approval by line manager

• Validation and approval/rejection by divisional power user and

inclusion into divisional workflow

• Validation and automated set-up of user in tm1 through the

functionality of the workflow tool (AC-S has a governance role)

• Confirmation to User and Power user that user has been set up /

changed

How to get access to the tool?

• Important to note:

• The tool will have single-sign, e.g. with your windows password

• As a prerequisite to get access to the tool you have to complete the e-learning

5. Who should work with the tool

• Data entry to

be done

together by

business and

local finance

• Local finance

governance

role

MS

• Critical assumptions:

• The tool should streamline the OP process

• Divisions/local decide on who is best suitable to do the data entry

• Approximately 2 write license per division by country, additional read users

• Data entry to

be done

together by

business and

local finance

• Local finance

governance

role

CH

• Data entry to

be done by

business

• Local finance

business

partner &

governance

role

PM

• Data entry to

be done by

business

• Local finance

business

partner &

governance

role

MM

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Agenda



3. Project plan



6. Summary

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• Expected decrease of time to collect, change and validate of Sales

Planning data during the Operative Planning / Forecasting

• Increased business user productivity due to better organizational collaboration

• Enhanced planning functionalities and integrated reporting

(Scenario building, Allocation functions, Workflow management)

• Ability to plan on a management view (country) irrespective of which legal entity is selling

• Integrated workflow which replaces the shadow process of pre-aligning

sales figures before submission to headquarters

• Improved ability to explain key drivers of sales plans(Volume, price and product mix, territories, etc.)

• Reduction of operational IT costs (No more investments associated with existing Sales planning tools)

• Develop a basis for a global Planning / Forecasting Tool

6. What we promised and what we delivered

© IBM Corporation 2013. All rights reserved.

References in this document to IBM products or services do not imply that IBM intends to make them available in every country.

Trademarks of International Business Machines Corporation in the United States, other countries, or both can be found on

the World Wide Web at http://www.ibm.com/legal/copytrade.shtml.

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