Alta Bering and Enterprise Performance Optimization

An Introduction

5/16/2009

Who Is Alta Bering?

• Enterprise software company based in Berkeley, CA

• Principals have extensive background in performance optimization for a wide range of businesses

• Levend Beriker, CEO– Lifelong entrepreneur and

business manager– 15 years performance consulting

with Global 2000 firms– BS, Industrial Engineering; MBA,

Finance• Mahmut Karayel, Chief Scientist

– PhD in Operations Research from UC Berkeley

– Former Global Head of Analysis, Babcock & Brown

State of the BI Category

• Focus on “what is”– Reporting, visualization

• Inflation of terms– “Planning” is mostly data entry– “Analytics” is mostly visualization– “Optimization” is inconclusive what-if

Alta Bering Delivers True Optimization

• Improved return on capital• “More with less”• From existing BI data

The Opportunity

• Inefficient allocation of resources is costing billions of dollars

• This represents the largest single untapped opportunity for enterprise software vendors

What is at Stake?

•Avon Products Inc. •Beiersdorf AG •Cadbury plc •Campbell Soup Co. •Chiquita Brands International Inc. •Clorox Corporation •Colgate-Palmolive Co. •Companhia de Bebidas Das Americas (AMBEV) •Compania Cervecerias Unidas S.A. •ConAgra Foods, Inc. •Core-Mark Holding Company, Inc. •Cott Corp. •Del Monte Foods Co. •Diageo plc •Dr Pepper Snapple Group, Inc. •Fresh Del Monte Produce Inc. •General Mills Inc. •Groupe DANONE •Hansen Natural Corporation •Hershey Co. •HJ Heinz Co. •Kao Corp. •Kellogg Co. •Kimberly-Clark Corporation •Kraft Foods Inc. •Lion Corporation •L'Oreal SA •National Beverage Corp. •Nestlé S.A. •Parmalat SpA •Pepsi Bottling Group Inc. •Pepsico, Inc. •Procter & Gamble Co. •Reckitt Benckiser Group plc •San Miguel Corp. •Sara Lee Corp. •Seneca Foods Corp. •Shiseido Co. Ltd. •Starbucks Corp. •Unilever NV •Universal Robina Corp. •Wimm-Bill-Dann Foods OJSC. • The Coca-Cola Company

Source Capital IQ- FY08 -

• Just 5% improvement = tens of millions of dollars every year for a typical CPG firm• The gain for these 4 companies is $784M/year • They represent just 4% of total revenues of this group• This type of value creation is how BI companies should be selling

Reasons for Misallocation

• No internal pricing mechanism for resources• Planning process is highly politicized and

dysfunctional• No strong link between financial and operational

planning• BI systems provide too much data for

management teams to utilize• Partial solutions – average-based KPIs and

balanced scorecards – make the problem worse

The Missing Questions

To maximize the return from a set of resources, you need to know:

1. How much improvement is possible?

2. How, specifically, can each business unit achieve it?

Answering them Requires…

• Complex multidimensional analysis and optimization algorithms that act on all available performance data

• Delivered through an interface that any business manager can use easily and quickly

This is Alta Bering EPO™

Enterprise Performance Optimization

The analysis of performance data to maximize the return on any combination of financial and non-

financial resources.

Traditional Planning vs. EPO ProcessMonth 1 Month 2 Month 3 Month 4 Month 5 Month 6

ManualAnalysis

Create KPIs

Publish KPIs

Negotiate KPIs

Performance Period(Quarterly, Sometimes Monthly)

Evaluate/ CompensateTrad

ition

alEP

O “Days, not months”

AutoOptimize

Create IndividualScorecards

Publish Scorecards

Performance Period (1 day+)

3 hours Evaluate/ Compensate

Organizational Benefits• Effectiveness

– Better return on enterprise resources– Bridge budgeting and operational planning– Align strategy and incentive compensation

• Agility– Reduce planning/budgeting from months to days– Respond immediately to any threat or opportunity– No reporting/analysis bottleneck

• Drive Improvement Through the Organization– Automatically create peer scorecards for all organization levels– Identify sub-optimal performers and the factors contributing to poor

performance– Support for “performance bidding”

Proven Across Industries and Functions

• Banking Product Mix– Optimized for profit and strategic

goals– Reduced cycle time by 10x

• Bank Operational Efficiency– Reduced wait times with 10% fewer

people– Better allocation of ATMs

• Pharmaceutical Sales– Optimized rep productivity– Helped re-structure distribution

channels• Retail Grocery

– Monitor performance of 800 stores– Optimized revenue/profit balance

based on rational benchmarks

• Auto Parts Shipment– Reduced parts inventory and shipping

costs while minimizing line stoppage– Saved €10M in first 3 months

• Beginning work with Coca-Cola– Financial & operational optimization

Alta Bering EPO™ Product

• Peer-based optimization system

• Highly visual “no keyboard” environment

• One hour of training to start getting benefits

• If you can talk about the specifics of your business, you can use Alta Bering EPO

Thank You!

levendberiker@altabering.com