Tag Archives: Planning
Planning at the speed of COVID: P3 Adaptive and Power On
It’s not adversity which defines you, but how you respond to it.
GPS and Steering Wheel
Power BI = GPS. Power On = Steering Wheel.
In 2020 we’ve been talking a lot about how important it is to be both intelligent AND agile in the face of unpredictable business conditions. During “normal” times, you can often get away with guessing that tomorrow will resemble yesterday, and simply following your well-worn business map. But 2020 has thrown all of that out the door, and even though 2021 is hopefully kinder, we all know that it will be far from a return to normal.
To survive and thrive in chaos, you have to SEE changing conditions clearly and quickly, but then also ACT – decisively. And taking action is a team sport – everyone needs to know their new targets. They need to believe in them. And they need to know how their actions play into the new overall plan.
Agile Planning, Integrated with Power BI
Register now for our webinar on agile planning
The velocity at which you need to change plans is unheard of now and as such, planning needs to be nimble and continuous. To facilitate this we need tools that enable faster and more collaborative planning. We’ve been using PowerOn for several years now with our clients and it has performed very effectively in this role, resulting in a more effective and efficient planning process as well as organizational gains.
Organizational planning is a holistic exercise. Changes to forecasts and assumptions can have sweeping impacts across the organization. With our solution utilizing Power BI and PowerOn visual planner we can instantly see how changes to our input assumptions and forecast, impacts everything from financials including the P&L, Balance Sheet, and Cash Flow, to operational functions including inventory, production, headcount, resource load, and training needs.
Planning also cannot exist in a vacuum. We know that as we seek to make planning more agile and continuous we need to make it more collaborative. Of course, in the past, the more collaborative the process, the slower it would be as there would be more versions of the forecast and plans to keep track of and update over time as the actuals changed.
PowerOn’s Visual Planner solution includes a workflow process to review and approve forecasts and add commentary/notes on any data point. This. facilitates a collaborative process that includes input across the organization while not bringing forward movement to a crawl.
The ability to continuously plan and make decisions in an agile, collaborative way is not just a competitive advantage anymore, it is essential to future success.
Want to learn more about how PowerBI and PowerOn can help transform your planning? Please join us on Thursday, December 10th from 12 pm – 1 pm CST for a webinar.
Planning at the speed of COVID: P3 and Power On
It’s not adversity which defines you, but how you respond to it.
GPS and Steering Wheel
Power BI = GPS. Power On = Steering Wheel.
In 2020 we’ve been talking a lot about how important it is to be both intelligent AND agile in the face of unpredictable business conditions. During “normal” times, you can often get away with guessing that tomorrow will resemble yesterday, and simply following your well-worn business map. But 2020 has thrown all of that out the door, and even though 2021 is hopefully kinder, we all know that it will be far from a return to normal.
To survive and thrive in chaos, you have to SEE changing conditions clearly and quickly, but then also ACT – decisively. And taking action is a team sport – everyone needs to know their new targets. They need to believe in them. And they need to know how their actions play into the new overall plan.
Agile Planning, Integrated with Power BI
Register now for our webinar on agile planning
The velocity at which you need to change plans is unheard of now and as such, planning needs to be nimble and continuous. To facilitate this we need tools that enable faster and more collaborative planning. We’ve been using PowerOn for several years now with our clients and it has performed very effectively in this role, resulting in a more effective and efficient planning process as well as organizational gains.
Organizational planning is a holistic exercise. Changes to forecasts and assumptions can have sweeping impacts across the organization. With our solution utilizing Power BI and PowerOn visual planner we can instantly see how changes to our input assumptions and forecast, impacts everything from financials including the P&L, Balance Sheet, and Cash Flow, to operational functions including inventory, production, headcount, resource load, and training needs.
Planning also cannot exist in a vacuum. We know that as we seek to make planning more agile and continuous we need to make it more collaborative. Of course, in the past, the more collaborative the process, the slower it would be as there would be more versions of the forecast and plans to keep track of and update over time as the actuals changed.
PowerOn’s Visual Planner solution includes a workflow process to review and approve forecasts and add commentary/notes on any data point. This. facilitates a collaborative process that includes input across the organization while not bringing forward movement to a crawl.
The ability to continuously plan and make decisions in an agile, collaborative way is not just a competitive advantage anymore, it is essential to future success.
Want to learn more about how PowerBI and PowerOn can help transform your planning? Please join us on Thursday, December 10th from 12 pm – 1 pm CST for a webinar.
How is Your Bank Planning to Get Ahead of the Coming Wave of Problem Loans?
These are unprecedented times, but we know the wave is coming. Every bank needs a strategy to get ahead of the coming wave of problem loans and work with your borrowers through tough times.
At 2.15% as of Dec. 31, 2019, the percentage of problem loans was at a slightly higher starting point than before the Great Recession. We can expect to see a continued increase in problem loans, but it’s unclear yet if they’ll reach – or even surpass – the peak of that recession. In the first quarter of this year, banks with $ 7 billion-$ 15 billion in total loans have the lowest volume of problem loans at 1.38%, while those with $ 15 billion-$ 50 billion have the highest at 2.49%. You can review more statistics in our report “” including our breakdown of problem loans by bank portfolio size, segment, and more.
As you review more modification requests, see more delinquencies, deal with more workouts you’ll need better communication, better analytics, better processes. can help. This is a specialized, cloud-based loan management software solution for banks and financial services companies that combines our deep industry expertise with the powerful capabilities of Microsoft Dynamics™ 365.
It will help your team:
- centralize all your problem loan data
- drive decisions with granular problem loan data collaborate
- monitor processes and learn from past accounts.
You can benefit from a more consistent approach to problem loans. Crowe Credit360 for Problem Loans can help your team find, monitor, and manage risks in your credit portfolio more efficiently.
- Enhance your problem loan processes.
Drive adoption of problem loan best practices across your organization and create automated reminders on key actions. - Track and mitigate risks.
Keep up with deferrals and late payments on single and multiple loans from your borrowers. - Drive better visibility.
Streamline and aggregate all your problem loan data, and quickly add and categorize new problem loans.
You don’t have to take an ad hoc approach to problem loans. Manage your problem loans with reliability and accuracy with these key features.
- Specific reserve calculation
Quickly and accurately determines your organization’s credit loss reserves. - Comprehensive reporting
Get detailed watched asset reporting and aggregated management reporting, including robust dashboards. - Workflow
Refine the end-to-end processes your organization uses to work through problem loans. - Action items
Keep your team on task with automated tracking and updates on key problem loan activities.
Our product brings your problem loans into clear view.
Stop speculating about when and where your problem loans might pop up. Get a deeper insight into your current and emerging problem loans with our loan management software and expertise.
Get a firsthand look at how Crowe Credit360 for Problem Loans works.
.
Crowe Knows Banking
Crowe has helped banks streamline and expedite workflows by making better use of available technology, organize job roles for better efficiency and customer service, redefine performance metrics and incentives so they support the institution’s long-term strategy, and transform the operational structure to be more responsive and effective.
Fundamentally, we focus on helping banks address complex data and analysis challenges, effectively manage their credit portfolios, and organize their processes for optimal efficiency.
We draw on our wide-ranging experience, banking expertise, and independent perspective to help you gain new insights into industry best practices while offering practical solutions to address your specific needs to help you achieve higher performance.
at crminfo@crowe.com or 877-600-2253.
By Ryan Plourde, Crowe, a Microsoft Dynamics 365 Gold Partner
Follow us on Twitter:
Dan Bongino: Are the Democrats Planning a Post Election Coup?
Well, duh… it’s been planned and executed the last four years, so I’m sure they have a new an improved plan for the next four years.
COVID-19, Business Continuity Planning & Dynamics 365 CRM
This Company Achieved Record Breaking Sales Thanks to COVID-19, but Couldn’t Keep Up. the Right CRM Solution Could Have Made All the Difference
In recent weeks, COVID-19 has had a dramatic impact on businesses in virtually every industry. Many organizations are currently focused on business continuity: they’re concerned with how they can continue operating under these difficult conditions.
But shouldn’t just be limited to getting through the difficult times. On the contrary, it’s also important to think about how you’ll continue to keep up in the face of unanticipated success. A recent customer experience I had was the perfect reminder of this.
A Surprising Story in the Face of COVID-19
Like most of us who are stuck working from home, I’ve been doing my best to stay active — and any excuse to get out of the house for a little physical activity is a good thing. With this in mind, I decided to buy a new bicycle. I’d always wanted a classic beach cruiser, and now was the time to finally make that purchase.
When I went online to shop around, however, I was surprised to find that most stores were sold out. I couldn’t even find a used bike for sale in my area, much less a brand new one.
Finally, I found a manufacturer with excellent reviews that produces its bicycles in California. The company had grown from a startup based in the CEO’s then-garage to a business of more than 40 employees and $ 8 million in annual sales. I made my purchase, happy to support a growing domestic business.
CRM Challenges from COVID-19
It’s been over a month, and unfortunately, I still haven’t received my bike.
Of course, businesses all across the country are struggling to meet customer demand in the face of COVID-19. On the other hand, though, the bike was supposed to be in stock, and the company’s website indicated that it would ship within 5 business days.
When I reached out to customer service, I received an auto-response with some disappointing information. First off, the company indicated that it was now receiving 3-4x more emails per day than usual, and was struggling to keep up. Customers with existing orders could expect a delay of 5 days or more before receiving a reply — despite the fact that the bicycle company hired more staff to try to keep up. Further, their outdated inventory system had caused them to sell a number of items that they didn’t actually have in stock, and they had to stop accepting new orders as of April 17th. Finally, they indicated that they hoped to reopen the website and start taking new orders again in May.
Business Continuity with the Right CRM Solution
With so many companies struggling to stay afloat during the pandemic, businesses like this one are the exception to the rule: they actually saw a major increase in demand for their products as a result of COVID-19.
Unfortunately, they weren’t prepared for the spike in sales. As a result, they’re both missing out on sales and damaging their reputation with customers.
As the head of the marketing team at , I know that this business could benefit from . With a scalable cloud solution like they’d be in a better position to keep up with a sudden jump in demand. A solid CRM solution is essential for customer tracking and communication, especially when the unexpected happens.
In the wake of the COVID-19 pandemic, companies are realizing how important it is to have a business continuity plan in place for unpredictable times. If you’re ready to develop a plan of your own, AKA can help: to learn more.
Not sure if this is the right time to start on a new project? Take a look at our recent blog, .
ABOUT AKA ENTERPRISE SOLUTIONS
specializes in making it easier to do business, simplifying processes and reducing risks. With agility, expertise, and original industry solutions, we embrace projects other technology firms avoid—regardless of their complexity. As a true strategic partner, we help organizations slay the dragons that are keeping them from innovating their way to greatness. Call us at 212-502-3900!
Article by: Amy Spencer | 212-502-3900
Amy leads the marketing team that is responsible for go-to-market strategies, messaging, and demand generation for AKA’s financial services and life sciences practices, as well as the company’s cross-industry offerings. She is also responsible for the processes and systems, such as marketing automation and CRM, that the team employs to align marketing with sales for a greater impact. Amy earned a Bachelor of Arts degree in Communications from The College of New Jersey and has 25+ years of experience driving the marketing strategy and execution for technology and professional services firms.
Startups: How to Manage your OEM for Exit Planning
Reading Time: 3 minutes
In the modern-day startup business, an exit to public markets through an initial public offering (IPO) of stock has become increasingly challenging due to regulatory pressures and less-than-desirable market valuations. Look no further than what happened to WeWork. Today, founders and institutional investors of startups are more focused on developing an exit strategy that involves selling to a larger player in the market. During the course of developing a robust exit strategy, most startups often overlook key decisions while building their product that might cause problems downstream, when future acquirers start to value the business for acquisition. In this short article, we examine the topic of software OEM as it pertains to future acquisition consideration.
In my prior article, Focus your Energy on your Application, not your Infrastructure we compared building infrastructure capabilities for an application software startup to using OEM software for accelerating time to market and other efficiencies. Similarly, when it comes to exit planning there are trickle-down decisions that have to be made at the product level and should be carefully considered as it might impact exit valuations.
Let’s explore this further with a startup M&A example
Company A and Company B both compete with each other in a hotly contested startup market for next-generation, artificial intelligence (AI)-driven HR software that employs machine learning and lots of data integration. Both companies, A and B, have raised nearly the same amount of venture capital, enjoy similar market success, and both have very good teams. Company C, a large publicly-traded company is now looking to “fold in” a market-leading AI technology into their existing HR application software and has decided to buy either Company A or Company B.
While going through initial product exploratory calls with Company A and Company B, the acquirer puts a small table together that might look like this:
| Category | Company A | Company B | Risk |
| Product Completeness | 95% | 90% | N/A |
| Technology | Ruby on Rails | Node.JS | Minor as both products are mature |
| Infrastructure | Homegrown | OEM | Company A has an older version and a lack of permissible licenses. Need to drill down. |
The CTO of Company A always insisted on using the “best” engineered solution, even if the long-term consequences were not fully vetted. In the case of Company A, the CTO chose to use a myriad of open source tools and homegrown, customized adaptations to address the data integration requirements for their HR solution, which often needed to connect with multiple ‘cloud’ solutions like Salesforce, and ‘on-premises’ solutions like PeopleSoft. In building everything in-house, engineers in the trenches of development made suboptimal choices. When incorporating open-source tools that lacked permissible licenses and also require heavy customization, Company A made it difficult for Company C to merge with their infrastructure. Moving off those investments when an acquisition happened would not be easy for Company C (or any other company for that matter) and would perhaps require a triage-based re-architecture approach at different levels of the infrastructure software stack.
In comparison, Company B has a Founder/CTO who is a pragmatist who continuously optimized for speed to market along with scale and cost of ownership. As such, Company B employed OEM-based tools to address infrastructure needs for connectivity, analysis, and so forth. In addition, the OEM tools have “assignable” contracts, which means they could be easily incorporated into Company C, with little legal risk. They also put in place strict measures behind selecting and using open-source tools without explicit permission from the CTO.
As evident in the above example, the good intention of Company A’s CTO results in a scenario where, after years of product development, the acquiring Company C has to rip and replace core infrastructure elements of the product to de-risk the acquisition. This will result in a longer path to market after post-merger integration. Given this situation, Company C decides to reduce the valuation for Company A by 30%, which doesn’t sit well with the founders and investors of Company A, and in the end, results in Company B being acquired.
No one approach is the perfect way to grow your software infrastructure investments. There are always pros and cons. That said, it is wise to keep a couple of sacrosanct best practice rules in place as follows:
- Insist on using permissive licenses, especially when incorporating open-source software
- When incorporating OEM software into your startup software, insist on “assignable” contracts, so that at the time of acquisition the acquirer can take ownership of the contract with the least amount of legal friction
The best way to think through your infrastructure investment is to consider a balanced strategy that considers speed to market, customer needs, and future acquirer objections that might arise.
Learn how TIBCO’s deeply embedded OEM solutions can help you get your tech start-up’s infrastructure right and allow you to focus your energy on your applications.
New Year’s Resolution: How About a new Approach to Budgeting and Planning?
Posted by Rami Ali, Senior Product Marketing Manager
Congratulations are in order! You finally wrapped up the annual budget during the craziness of the holiday season. Talk about multi-tasking.
Each year, organizations scramble through multiple iterations and approvals to finalize the annual budget before the yearly deadline. The process kicks off as early as June, and accounting and finance teams hope to wrap up the annual budget by November/December so they can effectively track and manage organizational performance in the new year.
Everyone is now firming up their New Year’s resolutions. From more exercise to less screen time, resolutions are all about improvement. So, when it comes to professional or organizational goals, why not put a better budgeting and planning process on the list this year?
Reflecting on last year’s budgeting process
With the budgeting season over, let’s take a moment to reflect. It’s easy to jump to the next order of business and forget about the unbearable pain and lengthy hours spent back and forth with stakeholders. While it’s fresh, what are some key takeaways that can be used for improving your next planning and budget cycle?
- How would you compare the process (from beginning to end) to the prior year?
- How long did it take to reach the first draft or submission of the budget?
- How many iterations did the budget go through before being finalized?
- How many levels of approval did the budget have to go through?
- How many approvers required visuals or ‘less-numerical’ ways of presenting the budget?
- How many approvers asked for additional insight into historical data?
- What tools and systems did you use in the process?
Budgeting and Planning in 2020
Now let’s set goals for improvement. Were there any identifiable risks or bottlenecks in the process? What would the executives like to see more or less of? What about other stakeholders? This is, after all, a partnership.
Goals could be potentially look like:
- Reduce the budgeting cycle time by up to 90%
- Reduce the number of levels of approval
- Increase the amount of executive involvement
- Enable stakeholders/approvers to access data themselves
The tools to get there
Finance teams need to take a hard look at the tools, systems, and steps in the overall process to map out new tactics in realizing these goals. Here are a few recommendations:
- Single source of data: Data moves through systems and tools. Any time data passes from one system to another, there is room for human error. Integrating systems and data can enable finance to have a single place to view the entire business and how the pieces fit together as they build out their annual budgets.
- Enforce new deadlines with stakeholders: The annual budget process involves many partners and stakeholders across the organization. Communication of deadlines is critical to producing the budget on time. Why not introduce new deadlines that enable your team more time to finalize their own analysis and recommendations? Make the process and expectations clear to all parties involved prior to the budgeting season.
- Leverage rolling forecasts: A continuing trend in the world of financial planning and analysis, rolling forecasts enable teams to have greater flexibility in their planning process. Typically, a rolling forecast extends 4-6 months into the future, giving businesses the agility to better allocate resources.
- Adopt new budgeting and planning technology: Most of the challenges in the budgeting and planning process stem from leveraging the wrong tools. Organizations rely too heavily on multiple spreadsheets that get lost in the shuffle of the season. Budgeting and Planning software [NF1] exists to help organizations streamline the budgeting process by bringing together systems and stakeholders in one controlled environment.
How NetSuite could help?
NetSuite Planning and Budgeting facilitates both company-wide and departmental planning with modeling capabilities, approval workflows and reporting within one collaborative, scalable solution. A cloud-based planning and budgeting solution makes data accessible, in real-time, to everyone who needs to see such information. Accessibility boosts participation and accountability, making it easier to get meaningful input and engagement.
Learn more about NetSuite Planning and Budgeting.
by NetSuite filed under
3 Ways to Fine Tune Your Budgeting and Planning Processes for the New Year
Posted by Rami Ali, Senior Product Marketing Manager, NetSuite Planning and Budgeting
Financial Planning and Analysis (FP&A) teams play a crucial role supporting major corporate decisions of the CFO, CEO, the Board of Directors and department heads. Unlike accountants who are in charge of recordkeeping, financial analysts are charged with examining, analyzing and evaluating the entirety of a corporation’s financial activities and mapping out the company’s financial future.
The FP&A function is under constant pressure to provide more strategic value and insights for its organization. With many groups finishing up, or still working on, their 2020 planning cycle, the pain and struggles are still top of mind. Now is the time to fine tune the approach to planning and budgeting for the new year.
Here are three ways to get more out of your budgeting and planning process:
1. Increase collaboration.
When it comes to business, collaboration is vital. After all, no single department can do its job for long without the other departments pulling their own weight. But for some reason, when it comes to the numbers it can feel like every department is on its own. Data is often stuck in departmental or functional silos, making it difficult or even impossible for other departments to get the information they need to do their jobs well—to understand potential risks and opportunities for the business. Financial collaboration becomes easier when you stop relying on static spreadsheets. It starts with getting the entire team working with one, trusted set of numbers, and building on a foundation of accurate, up-to-date data. Teams should collaborate to eliminate version control issues and establish role-based permissions that enable process owners to control who can access and edit data.
2. Become more agile.
With the rising volume and complexity of data, automating manual tasks will allow FP&A professionals to truly rethink how they work every day. They can spend less time and energy on repetitive, manually intensive work, such as collecting, consolidating and reconciling spreadsheets, and free up more time for to serve as valued business partners. And to be a valued business partner, FP&A teams need to be able to tell management teams what the data means and make recommendations so the business can act on it, whether that’s a new product launch, customer segmentation initiative or supply chain inefficiency. Once the data collection process has been completely automated and data integrity is ensured, you end up with a harmonized and accurate view of the business. Not only will this save time but will also allow information to get to stakeholders more quickly and accurately.
3. Enrich your data analysis.
Businesses perform more efficiently when they are able to adapt and respond to the business climate. Using modeling techniques, predictive analytics, multiple ‘what if’ scenarios and rolling forecasts as part of the planning and budgeting process can help minimize uncertainty in the business. FP&A professionals are able to be more responsive in a fast-moving market and are able to deliver reliable analysis and operational reports to more accurately facilitate decision-making.
How to accomplish this?
As great as spreadsheets are for some things, collaboration, agility and analysis aren’t words you think of when describing that tool. Yet, many FP&A teams continue to rely on spreadsheets to manage the planning and budgeting process. With spreadsheets it’s easier to introduce errors and harder to be collaborative, and they are unsuited for the complex dynamic planning and reporting organizations require. FP&A ends up spending the bulk of its time verifying that the numbers are up to date and accurate. As a result, the team doesn’t have time to work with stakeholders to deliver insightful analysis that will really help in planning for company growth.
NetSuite Planning and Budgeting facilitates both company-wide and departmental planning with modeling capabilities, approval workflows and reporting within one collaborative scalable solution. A cloud-based planning and budgeting solution makes data accessible, in real-time, to everyone who needs to see such information. Accessibility boosts participation and accountability, making it easier to get meaningful input and engagement.
For more information on planning and budgeting, download the e-book, High Impact Planning and Budgeting for all Types of Growth.
by NetSuite filed under
Integrated Business Planning For High Tech: How Platforms Improve Execution And Drive Differentiation
In the vocabulary of today’s digital economy, “high tech” and “innovation” are virtually synonymous. This emphasis on innovation has driven a dramatic expansion in the definition of what high tech as an industry delivers to customers.
Today, it’s not just the computer on your lap and the phone in your pocket. It’s also the car you drive and the gadgets that control your home. It’s appliances with touch screens, shoes with sensors, watches with GPS. Across an ever-increasing range of possibilities, the high-tech industry prides itself on delivering products that change the way we live and work.
Innovation is so deeply ingrained in the high-tech industry that customers expect it. Innovation has become the norm – a commodity in itself. This, in turn, is making customer experience and service into an increasingly important differentiator.
Yes, coming up with the next big product is essential to staying relevant. But at the same time, the pressure is relentless to drive down costs, increase efficiency, and maximize ROI across all areas of operations – even in the face of ever-growing infrastructure, development, and research efforts.
Differentiation, in other words, is not exclusive to product innovation in the high-tech industry. It is also increasingly dependent on excellence in areas such as manufacturing, logistics, and supply chain management – and one of the keys to success across all of these areas is to develop an integrated business planning platform that helps tie all relevant activities together.
Platform considerations
For brand owners in the high-tech industry, you have to start somewhere – and this somewhere is typically a demand forecast, which becomes the drumbeat of your extended supply chain network. With expensive critical components and long lead times, even the smallest change in the demand picture can wreak havoc in the high-tech industry – particularly when there’s significant lag time between the actual change and the detection of it. And in an industry where demand is volatile and fluctuations are the norm, the ability to respond to short-term changes is critical.
Leading brand owners and manufacturers, therefore, put a premium on platforms that facilitate the ability to detect demand changes in real time and then respond effectively. Such platforms help you standardize and integrate supply chain processes, not only for demand and supply planning but also for collaboration with partners such as contract manufacturers, critical component and commodity suppliers, distribution partners, and customers. With the integration of disparate systems and the ability to handle the big data volumes associated with a global supply chain, you can realize the operational and planning efficiencies that help to drive down costs and improve performance.
A platform up to the task for high-tech brand owners and manufacturers should support the following:
- Collaborative sales and operations planning (S&OP): Today, S&OP needs to move from an insular process executed within planning silos to one that reaches out to include all planning constituencies on a more continuous basis. A robust platform helps to pull all relevant partners – inside and outside of the organization – into the planning process where quick collaboration can happen based on a single source of trusted data.
- Response and supply planning: To respond more effectively to demand fluctuations and supply disruptions, platforms should allow you to mix multi-level demand and supply matching and rough-cut capacity planning with embedded analytics and exception management – including the identification of gating factors. This can help you better prioritize demand, generate effective allocations based on promises to deliver, and improve response management.
- Inventory optimization: A platform that supports multi-echelon inventory optimization can drive down working capital investments and drive up service levels by helping you plan more effectively regarding inbound raw materials and finished goods in distribution centers. For outsourced manufacturing, this can also drive down off-balance-sheet liabilities. Support for demand-driven material requirements planning (DDMRP) with advanced analytics also makes it possible for you to develop better profiles of decoupling points and related buffer stock positions while generating a continuous flow of goods – thus reducing the MRP nervousness that is prevalent in the extended supply chains of the high-tech industry. This can help reduce the risk of stock-outs, optimize inventory carrying costs, and reduce the dependency on forecasts that are never perfect.
- Demand planning and sensing: By mixing data on historical trends and seasonal patterns with, say, live data from sell-in and sell-through data (even down to point-of-sales systems), you can sense shifts in demand in real time. Statistical models can help you develop accurate mid-term forecasts, while demand-sensing capabilities enable you to react to near-term demand changes as they occur. You can also use machine learning technology to identify correlation patterns and automate the detection of demand changes.
- Multi-tier supply chain collaboration: Most high-tech supply chains rely on multiple tiers of trading partners that need to be aligned effectively. As opposed to regular physics, information in supply chain networks typically flows easier upstream than downstream. So, next to communicating forecast and demand information upstream to multiple tiers of manufacturers and suppliers, it is important to also obtain more real-time information of manufacturing status, inventory on-hand, and on-order positions of trading partners to make better and more informed decisions. Highly effective companies leverage the power of business networks to achieve scalability and lower the hurdle of onboarding or switching suppliers – thereby increasing resiliency and automation.
- Real-time monitoring: To help tie all activities together and monitor events in real time, you also need some sort of visibility layer – a dashboard, cockpit, or control tower. Such a layer should enable you to not only track critical KPIs but also drill down into the details without having to jump over to separate systems. From such a monitoring environment, you should also be able to manage alerts, run simulations, and even collaborate with partners as needed.
As high-tech brand owners and manufacturers continue to seek out ways to compete more effectively in crowded markets, the ability to execute on business plans and respond with agility to changing market dynamics is becoming an increasingly valuable point of differentiation. A proper, integrated business planning platform that helps you consolidate your view of all relevant data and act on that data with confidence can help you improve decision-making, speed your execution, and – ultimately – enhance the customer experience with quality products that meet demand.
To learn more about best practices for integrated business planning in the high-tech industry, download the IDC report on digital business planning.
Integrated Business Planning For High Tech: How Platforms Improve Execution And Drive Differentiation
In the vocabulary of today’s digital economy, “high tech” and “innovation” are virtually synonymous. This emphasis on innovation has driven a dramatic expansion in the definition of what high tech as an industry delivers to customers.
Today, it’s not just the computer on your lap and the phone in your pocket. It’s also the car you drive and the gadgets that control your home. It’s appliances with touch screens, shoes with sensors, watches with GPS. Across an ever-increasing range of possibilities, the high-tech industry prides itself on delivering products that change the way we live and work.
Innovation is so deeply ingrained in the high-tech industry that customers expect it. Innovation has become the norm – a commodity in itself. This, in turn, is making customer experience and service into an increasingly important differentiator.
Yes, coming up with the next big product is essential to staying relevant. But at the same time, the pressure is relentless to drive down costs, increase efficiency, and maximize ROI across all areas of operations – even in the face of ever-growing infrastructure, development, and research efforts.
Differentiation, in other words, is not exclusive to product innovation in the high-tech industry. It is also increasingly dependent on excellence in areas such as manufacturing, logistics, and supply chain management – and one of the keys to success across all of these areas is to develop an integrated business planning platform that helps tie all relevant activities together.
Platform considerations
For brand owners in the high-tech industry, you have to start somewhere – and this somewhere is typically a demand forecast, which becomes the drumbeat of your extended supply chain network. With expensive critical components and long lead times, even the smallest change in the demand picture can wreak havoc in the high-tech industry – particularly when there’s significant lag time between the actual change and the detection of it. And in an industry where demand is volatile and fluctuations are the norm, the ability to respond to short-term changes is critical.
Leading brand owners and manufacturers, therefore, put a premium on platforms that facilitate the ability to detect demand changes in real time and then respond effectively. Such platforms help you standardize and integrate supply chain processes, not only for demand and supply planning but also for collaboration with partners such as contract manufacturers, critical component and commodity suppliers, distribution partners, and customers. With the integration of disparate systems and the ability to handle the big data volumes associated with a global supply chain, you can realize the operational and planning efficiencies that help to drive down costs and improve performance.
A platform up to the task for high-tech brand owners and manufacturers should support the following:
- Collaborative sales and operations planning (S&OP): Today, S&OP needs to move from an insular process executed within planning silos to one that reaches out to include all planning constituencies on a more continuous basis. A robust platform helps to pull all relevant partners – inside and outside of the organization – into the planning process where quick collaboration can happen based on a single source of trusted data.
- Response and supply planning: To respond more effectively to demand fluctuations and supply disruptions, platforms should allow you to mix multi-level demand and supply matching and rough-cut capacity planning with embedded analytics and exception management – including the identification of gating factors. This can help you better prioritize demand, generate effective allocations based on promises to deliver, and improve response management.
- Inventory optimization: A platform that supports multi-echelon inventory optimization can drive down working capital investments and drive up service levels by helping you plan more effectively regarding inbound raw materials and finished goods in distribution centers. For outsourced manufacturing, this can also drive down off-balance-sheet liabilities. Support for demand-driven material requirements planning (DDMRP) with advanced analytics also makes it possible for you to develop better profiles of decoupling points and related buffer stock positions while generating a continuous flow of goods – thus reducing the MRP nervousness that is prevalent in the extended supply chains of the high-tech industry. This can help reduce the risk of stock-outs, optimize inventory carrying costs, and reduce the dependency on forecasts that are never perfect.
- Demand planning and sensing: By mixing data on historical trends and seasonal patterns with, say, live data from sell-in and sell-through data (even down to point-of-sales systems), you can sense shifts in demand in real time. Statistical models can help you develop accurate mid-term forecasts, while demand-sensing capabilities enable you to react to near-term demand changes as they occur. You can also use machine learning technology to identify correlation patterns and automate the detection of demand changes.
- Multi-tier supply chain collaboration: Most high-tech supply chains rely on multiple tiers of trading partners that need to be aligned effectively. As opposed to regular physics, information in supply chain networks typically flows easier upstream than downstream. So, next to communicating forecast and demand information upstream to multiple tiers of manufacturers and suppliers, it is important to also obtain more real-time information of manufacturing status, inventory on-hand, and on-order positions of trading partners to make better and more informed decisions. Highly effective companies leverage the power of business networks to achieve scalability and lower the hurdle of onboarding or switching suppliers – thereby increasing resiliency and automation.
- Real-time monitoring: To help tie all activities together and monitor events in real time, you also need some sort of visibility layer – a dashboard, cockpit, or control tower. Such a layer should enable you to not only track critical KPIs but also drill down into the details without having to jump over to separate systems. From such a monitoring environment, you should also be able to manage alerts, run simulations, and even collaborate with partners as needed.
As high-tech brand owners and manufacturers continue to seek out ways to compete more effectively in crowded markets, the ability to execute on business plans and respond with agility to changing market dynamics is becoming an increasingly valuable point of differentiation. A proper, integrated business planning platform that helps you consolidate your view of all relevant data and act on that data with confidence can help you improve decision-making, speed your execution, and – ultimately – enhance the customer experience with quality products that meet demand.
To learn more about best practices for integrated business planning in the high-tech industry, download the IDC report on digital business planning.