summit 2016 - every angle...summit 2016 fred hermans & sean culey 10-11-2016 . short history of...
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Summit 2016
Fred Hermans & Sean Culey
10-11-2016
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Short history of the Castle:
• April 1st 1852: Jasper Hendrik Baron vanZuylen (Van Nievelt) commissioned to build thecastle. The so-called ‘first stone’ can still befound in the North-West corner of the castle.
• This castle is a National Monument andbelongs to the top-100 Dutch UNESCOmonuments.
• The Castle took the name from the Dutch hero‘Jan van Schaffelaar’. In order to save the livesof his comrades, he jumped off the Barneveldtower in 1492. The owners from this castle werefar descendants of Jan van Schaffelaar andwanted to honour his act of self-sacrifice.
Welcome at Castle De Schaffelaar
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• 12.15 Opening by Fred Hermans, CEO of Every Angle
• 12.30 The Future of Every Angle – Business Transformation
Expert Sean Culey and Product Roadmap presentation by Fred Hermans
• 14.00 BPI Award introduction by Jacques Adriaansen
• 14.10 BPI Award pitch by Hitachi
• 14.20 BPI Award pitch by Cargill
• 14.30 Voting for the winner of the BPI Award
• 14.45 Break
• 15.15 BPI Award Ceremony
• 15.30 Breakout session 1
• 16.30 Breakout session 2
• 17.15 Closing by Jacques Adriaansen
• 17.30 Drinks, dinner and live music
Time table
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“The world is moving so fast these days that the man who says it can't be done is generally interrupted by someone doing it.”
Elbert Hubbard
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Exponential Supply Chain Evolution
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Exponential Complexity
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Most companies are not prepared…
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The end result is what keeps CEO’s awake at night…
Lack of alignment of
management and
operational activities,
metrics and goals.
Disconnects between
functions causing
operational issues, poor
data integrity leading to
poor decision making,
causing service failures,
overstocks and waste.
Increasing level of
regulation, concern
about a lack of true
understanding of what’s
going on at a detailed
level.
Company Culture,
lack of autonomy &
empowerment,
misaligned purpose and
frustration.
Inability toEffectively
Execute Strategy
Control of Value Chain
Performance
Understanding and Controlling
Regulation / Compliance
Attraction, Retention and
Engagement of Talent
Sources:‘The 3 things CEO’s worry about most’ – Harvard Business Review March 16 2015
‘What’s keeping CEOs up at night?’- PwC June 05 2015
‘What Keeps CEOs Up at Night and What Are Their Top Priorities?’ – US Dept. of State presentation, Jon Spector, President and CEO of the Conference Board, New York, NY Feb 24, 2015
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If you don’t know where you’re going...
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Difficult to align innovation to an unclear strategy
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This mindset cascades across the supply chain
ENABLE
(HR, IT, DATA, T&C's, FI, CO, H&S)
Reliable
Low
cost
Quick
Cheaper
Suppliers
PLAN
MAKE
MAKE
Smaller range,
consistent
demand
Less
Complexity &
Longer Run
Times
Less Working
Capital and
SC Costs
PLAN
DELIVER
DELIVER
More
Choice,
shorter lead
times, more
Innovation
Innovative
Bigger
Volumes
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The Command & Control disease…
Directors manage
(instead of directing)
Managers supervise
(instead of managing)
Supervisors do
(instead of supervising)
Doers freeze (instead of doing)
Constrains. Demotivates. Slows.
Managing a level too low:
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Unclear Purpose and Strategy
One Size Fits All approach
Bureaucratic & misaligned Rules,
Procedures, Systems & Processes
Lack of Ownership & Accountability
Multiple, Misaligned Measures and Targets
Frustrated Talent and Low Trust
If you don’t know where you’re going….
Doomloopof
Disengagement
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“Gallup estimates that these actively disengaged employees cost the U.S. between $450 billion to $550 billion each year in lost
productivity.
Gallup ‘State of the Global Workplace’ study; 23 Sep 2013
Disengagement Costs
Gallup Workplace Survey Says 87% of Employees Not Actively
Engaged in Their Jobs- Forbes, 25/03/2014
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Think
Differently
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New Business Realities need new thinking…
Nicholas Copernicus
1473 - 1543
“To know that we know what
we know, and to know that
we do not know what we do
not know, that is true
knowledge.”
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Heliocentric model
(Paradigm shift)
The Copernican Revolution…
Geocentric model
(Conventional wisdom)
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Agile Model
(Paradigm shift)
We need a Copernican Business Revolution
Traditional Model
(Conventional wisdom)
The
Firm
The
Firm
Customer
Customer
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First do the
Right Things…
…Then do the
Things Right
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Unrecognized Needs
Known Desires
Base Expectations
First do the right things…The Customer Hierarchy of Needs
Evangelism
Loyalty
Satisfaction
AEIO: Aligned, Engaged and Innovative Organisations (TM) Sean CuleyEx-Customers
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PRESERVE THE CORE VALUES
CONSTANTLY STIMULATE PROGRESS
Embrace the genius of the ‘AND’.Avoid the tyranny of the ‘OR’
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MAKE PEOPLE HAPPY
MoviesTheme Parks
HotelsTV shows
Video GamesStores
Preserve the Core, Stimulate Progress
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20 Mile Marching: Disciplined Pushing of the Flywheel
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Best
Customer
Experience
Customer
Widest
Choice
(Range)
Competitive
Prices
“Our vision is to be earth's most customer-centric company; to build a place where people can come to find and discover
anything they might want to buy online.”
Amazon’s Virtuous Cycle of Continuous Growth
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Exponentially Changing Expectations…
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Require Exponentially Changing Supply Chains…
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But they deliver exponential results!
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Increasing Pressure on Consumers to join
Prime – free delivery, music, video etc
Increasing Pressure on Sellers to use
Fulfilment by Amazon
Increasing Pressure on Competitors to
lower prices to compete
Increasing Pressure on 3PL’s through loss of business
from / to Amazon
Amazon’s flywheel is everyone else’s Vicious Circle
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No matter how awesome the idea, it all comes down to how well it is executed…
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High
High
Low
Low
Alig
nm
ent
Autonomy
Top Down Aligned Innovation
ChaosMicro Management
Boss
Director
Director
Strategy & Execution, Alignment and Autonomy
If your strategy is to be more agile, then your organisational structures need to be also…
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Become ‘T’ Shaped
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Develop the DNA of a digital organisation
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Lessons from Amazon: The two pizza team rule..
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Sell more
because of our
World Class
Reliability
'T' Shaped People in 'T' shaped, segmented Customer Value Chain Teams
ENABLE
(HR, IT, FI, CO, H&S, QM, PM)
We Value
Reliable
Supply!
Reliable
Procurement
Reliable
Manufacturing
PLAN RELIABLE VALUE CHAIN
DELIVERSOURCE MAKE SELL
Reliable Data,
Quality, reliable
plans, inventory
levels etc
Reliable
Suppliers
Reliable
Planning
Reliable
Delivery
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Segment into Cross-process Customer Value Teams
Alignment
• Less politics and misaligned agendas
• Value Chain team all on the same page.
• No miscommunications, misaligned priorities or key metrics
Clarity
• Clarity of customer value proposition
• Clarity of strategic direction, priorities, lead times, issues and actions
• Clarity of individual and team measures and contribution
Focus
• Team focuses on reduced number of accounts & products
• Smaller teams work much better together
• Faster identification and resolution of issues
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“Zara is possibly the most innovative
and devastating retailer in the world.”
- Louis Vuitton Fashion Director, Daniel Piette
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Agile 'T-shaped' teamsneed
Agile 'T-shaped' Tools!
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To gain some form of insight into what is actually going on, I.T. departments either:
Built a Business Warehouse
• Time consuming to develop
• Relatively inflexible
• Changes are expensive
• IT is a bottleneck
• Users are constrained to certain cubes
Invest in data visualisation tools
• Requires significant data staging and curation
• IT needs to build and manage the data set
• Doesn’t understand configuration –extract and present
• Lack of insight in data – still reports
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Most solutions end up being less magical than expected
What was
promised
What it
required
How it
ended up
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Most BI tools = analysis of planes that have
already landed
It’s hindsight; lag measures.
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You Cannot Control What You Don’t Understand…
Need to understand
this…
…before achieving
this
UNDERSTAND CONTROL IMPROVE INNOVATERoot Causes of
Issues, Losses and
Disruptions
Business
Performance
New
Business Models
Data integrity,
compliance, human
error, schedule
adherence, process
conformance issues…
Service levels, Inventory
control, supplier
performance, plan
adherence, compliance,
data integrity…
Customer retention,
Operating cost, revenue,
margin, risk prevention,
integrity, cashflow…
Redirect time and
cash from waste to
innovation
Process
Performance
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UNDERSTANDING & CONTROL
IMPROVEMENT &
INNOVATION
Embrace the genius of the ‘AND’
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It’s not good enough to know that a flight is going to be late…They need to know how late, and what the impact is...
Will passengers
make their
connecting flights?
Will we need to
provide overnight
accomodation?
Do we need to offer
compensation?
Will luggage need
redirecting?
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What we need is actionable insight…
The ability to understand and control what’s happening
to the planes in the air in time to take action!
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What do ‘’Planes’’ have to do with ‘’Supply Chains”
SO
SO
SO
SO
SO
SO
PO
Another plant
PO
Shipment
WO
WOWO
WOWO
WO
WO
WOWO
WOWO
WO
WO
Landed Planes Closed + Paid Orders History
Planes to land/depart Open + Planned Orders Current + Future
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You cannot control what you don‘t understand...
Need to understand
this…
…before achieving
this
UNDERSTAND CONTROL IMPROVE INNOVATE
Root Causes of
Issues, Losses and
Disruptions
Business
Performance
New
Business Models
Data quality issues,
human error, order status
and status, process flow
compliance…
Delivery Reliability, Inventory
levels, supplier performance,
plan adherence, compliance,
quality…
Customer Service, Cost-to-serve
Responsiveness, Revenue,
Margin, Working Capital, Cash
Flow, Risk and Waste
Redirect time and cash from
waste to innovation
Process
Performance
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UNDERSTAND
ISSUES & ACT
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Understand – The root cause
Purchase CustomerSupplier Production SalesRM FG
Issue:
Our Service Level (OTIF) to customer ‘x’ is terrible
Why?
Orders are
constantly
delivered short
Why?
Items are not available
to be picked in time to
meet the delivery date
Why?
Certain components in the BOM for
these products are constantly
unavailable in the required quantity
Why?
The suppliers of these
components constantly
deliver late
Why?
Constant schedule
adherence issues in
production on these SKU’s
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Understand - Difference between Hindsight and Actionable Insight
Issue: Our Service Level (OTIF) to customer ‘x’ is terrible
DATA
• We have 100
overdue
purchase orders
INSIGHT
• 50 purchase orders contain
items that have sufficient
stock to meet current demand
• 45 purchase orders contain
items that have excess stock
or no demand planned
• 5 purchase orders contain
items that are contained on a
BOM for a production order,
for a finished product
contained in customer ‘x’ sales
orders
INFORMATION
• These are the
purchase orders
that are the
most overdue
‘ACTIONABLE INSIGHT’
• Reschedule out the first 50
• Cancel the 45
• Expedite the 5
Then work with suppliers to
understand and resolve the
structural issue causing their
poor delivery performance!
Why? – Because the supplier of vital components for these items constantly delivers late
Question: Are there any purchase orders that may cause future service issues?
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Do we have
enough
resource
coverage?
How much
money have we
lost due to
misallocated
discounts?
Are we buying
things we don’t
need? Can we
delay any
purchases?
What is
causing
backorders?
Un
de
rsta
nd
Issu
es a
nd
Ac
t
What is the
likely service
level of open
orders?
Do we have any
bottlenecks affecting
our ability to supply
current & future
demand?
Do we have
enough
incomping
supply?
What purchase
orders will affect
customer service
if they are late?
Will our assets
be operational
when we need
them?
How much
cash is tied
up in excess
inventory?
Are we
retaining our
best people?
How accurate is
our master and
transactional
data?Are we exposed
to any
Segregation of
Duty risks?
Plant
MaintenanceSupply ChainProcurement Finance People
Risk &
ComplianceMaster DataOrder to
Cash
Understanding .............. by all personas across all processes
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CONTROL
PROCESSES
UNDERSTAND
ISSUES & ACT
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IMPROVE
OUTCOMES
• CUSTOMER SERVICE
• RESPONSIVENESS
• WASTE
• INVENTORY (WORKING CAPITAL)
• COMPLIANCE
• COST-TO-SERVE
CONTROL
PROCESSES
UNDERSTAND
ISSUES & ACT
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Air Traffic control vs Business Control
Every Angle
Control Towers
Landed Planes Closed + Paid Orders Planes to land/depart Open + Planned Orders
- Service
- Inventory
- Data Quality
- Waste
- GRC
- ….
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Gartner’s Bi-Modal Approach to BI
IT:
Data Reliability,
Governance and
Control
BUSINESS:
Flexibility, agility,
self-service
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Past Present
Content and schedule is
predetermined and pushed to the
customer on one device.
The maker is in control.
Customer is in control.
They decide what they watch,
where, when and how.
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The Every Angle Software Suite
PUSH to
other
systemsUSER
INTERACTION
Business Suite
Any DB
DATA
ACQUISITION
model serverCONTENT/
DATA
ENRICHMENT
+
4 core USPs
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The 3 “Concerns/Questions’’ most received about Every Angle
Every Angle is not real-time
Every Angle is SAP only
Every Angle is not necessary any more after S4 HANA
1
2
3
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Concern 1 – Every Angle’s position on real-time
Real-time
=
blurred image &
constantly moving target
Near real-time
=
precise understanding
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Concern 2: Every Angle’s position on SAP only
(Operational) Business Process Execution
Datawarehouse
NON SAP
Transaction
systemsERP
Transaction system
‘’BI-environment” for Enterprise
Performance Management
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Concern 3 – EA is not necessary any more with S4 HANA
Topic Every AngleS/4HANA Embedded
analytics
Analysis on detail level, Operational Analytics YES YES
Enticing graphical presentation YES YES
Fast, in-memory database YES YES
On–request, dynamically build up of statistics YES YES
Cross-process Built-in intelligence YES LIMITED
Business users create their own (ad-hoc)
reports/analysisYES NO
Real-time R2018 YES
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Every Angle Software Suite – vision for the future
Feed
EA-data
to BI
Replicatedmodel server
R2016/7
ECC
Any DB
incl. HANA
CONTENT/
DATA
ENRICHMENT
USER
INTERACTION
DATA
ACQUISITION
Feed EA-
data to BI
Replicated modelserver
R2018/x
RealtimeSQL-modelserver
ECC
Any DB
incl. HANA
HANA
S4/HANA or
ECC on
HANA
Other data
sources
Other data
sources
Extract
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Enhance the
Content
Simplify
User
Experience
Advance
the
Architecture
Every Angle Virtuous Cycle of Innovation
customer