Developing a Collaborative Integrated Planning …...Integrated Planning Process Bring strategic...

JPK

Gro

up

June 14-15 • Boston, MA

Developing a Collaborative

Integrated Planning Process

Bring strategic planning, finance, supply chain, sales, marketing &product development into a unified planning operating model

June 14, 11:00am

View presentation online at:

https://jpkgroupsummits.com/attendee3

Peter Murray

Managing Director – Solutions and Business Development

at Open Black Box (OBB) Solutions

Kai Trepte – Chief Data Scientist and CTO at Open Black

Box (OBB) Solutions

Business Forecasting and Analytics Forum

Open Black Box Solutions Analytics2 Process2 People3

Open Black Box ( BB) Solutions – JPK Boston SummitSolving complex value chain challenges; Faster and more sustainably with better ROI; building your team’s capabilities

1OBB Solutions All Rights

tFIND SOLVE LEAD


Developing A Collaborative Integrated Business Planning Process à

2:15pmDeveloping a Collaborative Integrated Planning ProcessBring strategic planning, finance, supply chain, sales, marketing and product development into a unified planning operating model to drive transformational performance improvement decisionsHarmonize financial and operational processes with customer demandEnable collaborative, cross-functional business decision making across the product lifecyclesDeliver cross-enterprise alignment of planning and execution processes to improve predictability and financial performance while managing risk

Peter Murray presents an engaging session from his experience in the chemicals, pharmaceutical and materials science industries developing collaborative IBP processes that deliver significant and sustaining results. Building on his experience in delivering success beyond the basic concepts and frameworks; including the use of analytics to both speed results and target the most impactful decisions. Using illustrative examples starting from the external financial drivers relevant to CXO teams, boards and investors, Peter will show how that "outside in" view is one of the strongest drivers of building and a sustaining a robust and collaborative process. The presentation includes:1. An "outside in" financial perspective.2. Segmentation analytics to identify the key areas to target first and fast.3. Examples of driving specific improvement using the leading methods for IBP and associated processes.4. Some examples and ideas on how to renew traditional S&OP processes with IBP and sustain performance over time.


Peter Murray – Presenter: Developing A Collaborative IBP Process With “Outside In” Financial & Strategy Analytics To Develop The Best Implementation Program

• Managing Director Solutions & Business Development – Open Black Box (OBB) Solutions [email protected]

• 20+ years of experience in leadership roles in complex global organizations• Led major programs for IBP and Demand Transformation at DuPont and Dow Chemical• Global speaker and author of numerous articles on IBP, Demand and Supply Chain

• 5+ years solutions, research/publication and consulting• Oliver Wight Certified Practitioner IBP and Demand

• Industry experience and expertise:• Chemicals, Material Science, Bio-Science, Agribusiness• Pharmaceuticals • Consumer Products – Fashion• Industrial Products, Electronics, Automotive

• Long term active member of the Institute of Business Forecasting (IBF.ORG) and APICS.ORG; • SCOR-P Instructor for APICS • Columnist APICS Magazine for S&OP and IBP

• Peter lives in New York City and is an avid climber, power lifter, and cyclist

OBB Solutions All Rights


Open Black Box Solutions – Analytics2; Process2; People3


2 Segment1

Accelerate2




2 Simplify1

Standardize2




Find1 Solve2

Lead33


Big Challenges



Most companies older 20< years are optimized for the Supply Economy in a Demand Economy World and Future – Avoid The Chasm Of DOOM

8

Changing Business World

Supply Economy Demand Economy

Market Segments Homogenous Specialized

Change Rate Supply-constrained Exponential

Products Rationalized On Cost Complexity-Enabled

Segmentation By demographic By Customer Value

Demand Linear, normal Volatile, random

Built with concepts from Robert P. Burroughs “The Market Driven Supply Chain”, 2012 AMACON Books


Value Chain vs …. Supply Chain



The challenge of financial integration


WHY –WIIFM/WIIFMB


Definitions and Models



proc·ess1

ˈpräˌses,ˈprōˌses/nounnoun: process; plural noun: processes1. a series of actions or steps taken in order to achieve a particular end.



col·lab·o·ra·tionkəˌlabəˈrāSH(ə)n/nounnoun: collaboration; plural noun: collaborations1. The action of working with someone to produce or create somethingsomething produced or created by collaboration. "his recent opera was a collaboration with Lessing" 2. Traitorous cooperation with an enemy."he faces charges of collaboration"


1. The action of working with someone to produce or create

something


The biggest benefit ….... And the biggest client (executive) challenge is IBP is “common sense”

14

The

Real

ity T

o Va

lue

Why

CXO

Tea

ms

Are

Excit

ed


Open Black Box Solutions Analytics2 Process2 People315OBB Solutions All Rights


Leadership Business Review / Plan Decision

Driving Strategy Deployment & External Financial Outcomes

New Product / Initiative Review

Demand Chain Network ReviewSupply Chain Network Review

Integrated Reconciliation –Financials & Scenarios

Integrated Business Planning – Opening The Financial Integration Box

16

Integrated Business Planning – Opening The Financial Integration Box

Yes!

This is the best answer if credible!!

No!

INVESTOR DECISIONS

Supply

Demand

2

1

3

45


Digging Deeper especially with financial drivers



Are you facing a CHASM OF DOOM

18

The ”chasm” needs to be overcome to scale profitably and the place where “bad” complexity can grow out of control

Visible Inputs, with uncertainly of outcome

Visible Weaker Than Desired Outputs

OBBSOLUTIONS.COM ALL RIGHTS

Accelerating future capability to deliver shareholder future value investment

11/17/15 !X

OBBSolutions Drives CXO Value/Support Earlier

River Logic – EO+

Move E

O

capability

Majority of Companies Stalled

Investor Impact

Largest market is at this level EO tool are not commonly used


Positioning “Get It Right” and steps to improve

19

IS GIR HERE?

IS GIR HERE?

We optimized this pull

Architecture designed to move

vertically and horizontally for improvement

All OTC Drivers/ Root Cause and Solutions are in this architecture

Address “NVAW” & Value at Every Step and

Level


Internal Facing with SCOR – OBB Connects ”Outside In” Financial Analytics to Internal

20


The

DuP

ont M

odel

–w

idel

y ac

cept

ed a

naly

tical

/dec

isio

n m

odel

21

Investor Value – DuPont Model

Balance Sheet

Income Statement

ROAReturn on Net Worth

Financial Leverage

Profit Margin

Net Profit

Sales

Total Expense

Taxes

Gross Profit

Net Sales

COGS

Fixed Expense

Inventory Expense

Variable Expense

Asset Turns

Sales

Total Assets

Current Assets

Fixed Assets

A/R

Other Current

Inventory

ROE = (Profit margin)*(Asset turnover)*(Equity multiplier) = (Net profit/Sales)*(Sales/Assets)*(Assets/Equity)= (Net Profit/Equity)• Profitability (measured

by profit margin)• Operating efficiency

(measured by asset turnover)

• Financial leverage (measured by equity multiplier)


The DuPont Financial Model –Connecting Stakeholder Outcomes To Financial Statements and Management Actions

22

Investor Value

Balance Sheet

Income Statement

ROAReturn on Net Worth

Financial Leverage

Profit Margin

Net Profit

Sales

Total Expense

Taxes

Gross Profit

Net Sales

COGS

Fixed Expense

Inventory Expense

Variable Expense

Asset Turns

Sales

Total Assets

Current Assets

Fixed Assets

A/R

Other Current

Inventory

• Performance To Plan

• Managing Dynamics/Options

• Transparency• Operating/Financial

Translation


What Does The Future Look Like – How Can Segmentation Help?

On Highway Engines

Off Highway Engines

Rail

Power Generation …......

OBBSolutions.com All Rights 23

More Market Driven Value Chains Adds Complexity

Changing Geographic Growth Focus

Segmented Supply Chains Drive Differentiated Strategies

Improves Synchronization and Coordination for Planning & Execution

Increases Agility

IBP Excellence Effectively Deploys Strategy across platforms and segments

Supply Chain

Corporate Manageme

nt & Finance

Commercial / Go To Market

Integrated Demand Management Is Critical


Big Questions

What are you going to do with what you learned:

1. Tomorrow.2. When you get back to the “office”3. Tell who ever paid you to come here.4. In 3 months5. In 6 months …......



Kai Trepte – Presenter and Facilitator: Powering Your IBP Process With Data Science – How To Get Started Workshop

• Chief Data Scientist and CTO – Open Black Box (OBB) Solutions• [email protected]

• Deep experience developing and applying analytics and data science for Demand, Supply Chain, Finance and Integrated Business Planning across the value chain. Noted expert in delivering effective and efficient education and training of advanced analytics to business professionals.

• Industry experience and expertise:• Chemicals, Material Science, Bio-Science• Consumer Products and Agribusiness• Federal agencies and public sector organizations• Planning & Analytics software development

• MIT PHD Supply Chain Analytics• Long term active member of the Institute of Business Forecasting (IBF.ORG)• Co-Founder John Galt Solutions

• Developer of “Forecast X”• Led JGS consulting

• Kai and his family live in the Boston, MA area



Final Questions

New Digital Book all we talk about in more detail and with direction to learn more – For A Complimentary Copysend an email to [email protected], your name, firm, role, JPK BostonShould be available in early / mid JulyAlso on our website www.obbsolutions.comThank you!


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