creating a high performance operational environment to realise measurable performance every angle...
DESCRIPTION
Sheets of the presentation given at the LogiPharma conference in Geneva in April 2012TRANSCRIPT
Creating
a High Performance Operational Environment
to realise Measurable Performance
April 25, 2012 – LogiPharma Genève
Jacques Adriaansen – Consulting Director Every Angle
Strategic take aways (from the information angle)
● Be conscious about the difference between Corporate Performance
Management (top-down/bottom up, what Finance needs) and
Operational Performance Management (east-west/west east, what SC needs)
2
● Operational Performance Management (as part of SCM) is the key to the
company’s strategic success
● If execution doesn’t execute in line with the strategy, then your strategy is void
help you to distinguish yourselves from the competition
● Bring the ‘question and immediate answer’-power to the business users
● The outside world is changing so fast that the traditional ‘user request – information
manager – IT solution’- approach has become inadequate
● Free up the scarce IT capacity to focus on the relevant strategic solutions
help you to distinguish yourselves from the competition
Practical take aways (from the information angle)
● Please realize that your IT department has a really hard time to provide
you with end to end supply chain information, with frequently changing
information needs
● The traditional BI systems and approaches fail to deliver this insight
● And that’s why you have Excel and Access woods to answer the ‘ad hoc’ questions
3
● Try to figure out how much time and money is spent on building and
maintaining these Excel woods (self-made Operational BI
● Install a “Closed Loop Performance Management Framework”
● The ‘execution people’ must know what to do to avoid ‘red’ or ‘orange’ gauges at the
KPI dashboard
● High level aggregated SC view, combined with the relevant low level operational
details
Contents
4
● About Closed Loop Performance Management 1
Dynamically changing information needs... the bottlenecks
2
● It is possible in an SAP ERP environment 3
● About Every Angle 4
Process experts Analyse results and detect
performance bottlenecks
Define improvement actions
2
Define KPIs
and targets 0 Top management
Strategic KPIs
Measure and
compare with targets 1 Management
Operational KPIs
Closed
Loop
Time &
budget
Different IT for
different purposes
Details,
ad hoc,
variance
Execution Execute, Improve and
facilitate actual action
on the floor
3
Our vision on Closed Loop Performance Management
5
Operational management
Operational KPI
Execution
Analysis
Detect and Act
Performance Management
Control
Process experts
Operational Performance Management
Top management
Strategic KPIs
BI / BW
ERP
Reporting & Analytics Display layer
Performance Management Information
6
Performance Management – Corporate and Operational
Classic / Corporate PM
Vertical, Control oriented
Financial, strategic
Stabile KPIs
Operational PM
Horizontal, process oriented
High detail and diversity
Multi dimensional
High change level
7
SITE 1200 - Dresden SITE 1000 - Hamburg
Every Angle OPM for Supply Chain (eg Pharmaceutical)
In Operational Performance Management it is about the details
and inter-order relationships…
SO
Su
pp
lie
r p
rob
lem
PO
Raw materials
WO
Active ingredient
WO
Packaging Sales order
Box Leaflet
Flask …
Raw materials
TO
Dis
sa
tisfie
d c
us
tom
ers
?
End-to-End Supply Chain Analysis
on millions of detailed order lines
8
Performance Management – Operational… in practice
Classic / Corporate PM
Vertical, Control oriented
Financial, strategic
Stabile KPIs
9
Self-made Operational PM
Reliability and Security?
Dependency on persons?
Maintainability?
Scalability?
Costs?
SE16 SE16 ABAP ABAP SE16 SE16 SE16 SE16 ABAP
Contents
10
● About Closed Loop Performance Management 1
● Dynamically changing information needs... the bottlenecks
2
● It is possible in an SAP ERP environment 3
● About Every Angle 4
Major IT roadblocks for Performance Management
Data Model
Complexity
“Ashby’s law of Requisite Variety” also
applies to ERP
Process Model
Complexity Co-operation
roadblocks
Managers cannot specify
BI experts seldom understand
business needs
Expert brains war zone
Few people have an in-depth cross-functional insight in ERP/process mechanics
Proposed functional solution specifications can be wrong
Process data structures are inherently complex
Interfunctional co-operation is hard
It’s hard to get information out of data (fast & correct)
11
A succesful end-user application has to beat these roadblocks and must be extremely fast
Contents
12
● About Closed Loop Performance Management 1
● Dynamically changing information needs... the bottlenecks
2
● It is possible in an SAP ERP environment 3
● About Every Angle 4
BI / BW
ERP
Reporting & Analytics Display layer
A consistent platform for business analytics in SAP ERP…
Improvement
Action lists
Operational KPI
Measurement
Business Process
Analysis
Standard
content
Ad hoc analysis
13
Operational management
Operational KPI
Execution
Analysis
Detect and Act
Performance Management
Control
Process experts
Top management
Strategic KPIs
What would you prefer to improve your performance?
Classic / Corporate PM
Vertical, Control oriented
Financial, strategic
Stabile KPIs
Operational PM
Horizontal,
process oriented
High detail and
diversity
Multi dimensional
Extremely volatile
an unstructured, risky
Excel-wood
an easy-to-end-use,
out-of-the-box solution
or
15
Contents
16
● About Closed Loop Performance Management 1
Dynamically changing information needs... the bottlenecks
2
● It is possible in an SAP ERP environment 3
● About Every Angle 4
Quick Introduction of EveryAngle Software Solutions
● International software company with HQ in NL
● 14 years of experience in BI
● Thoughtleader in „in Memory“ technology
● Specialized on Business Performance Management
based on SAP ERP
● SAP certified since 2001
● Mature product, used by more than 50 SAP
customers in more than 30 countries globally
● Further expansion to USA, Latin America,
and APA
● GARTNER :
„Cool Vendor 2011“ in the SAP Ecosystem
17
What is Every Angle About?
Every Angle is about Business Analytics on SAP-databases
● Out of the box SAP add-on, live within 48 hours (plug & play)
● Based on SAP-ERP-data as a source
● Using master data, transactional data as well as customizing settings of the SAP system
● Object oriented “In Memory” technology for very quick analyses
● Prime focus is to enable business analytics
● Enables the business user
Pre and Post Implementation Uses
● Process Performance Management
● Data cleansing / Data governance
● Project support (e.g. Go-Live Support)
Results
● Quick ROI by :
Compliance , Data quality , Service level , working capital
18
Enthousiastic ‘installed base’
19
Food, Pharma
& Chemicals
Wholesale, Retail
& Fashion
Utilities & Energy
Discrete Manufacturing
• Increase the operational Performance of your
company through an incredible transparency
• Improvement of compliance, since the analysis comes
directly from company data within SAP and not from Excel
• Reduced TCO by increasing the data quality of master data
as well as transactional data in ERP
• Quick ROI by fast implementation (48h) as well as
existing content based on Best Practice
• Supports decisions of the enterprise on all levels
• Increase acceptance and SAP user satisfation
• SAP partner solution, secures your investment in SAP
• Reliable standard solution which is already implemented
at more that 50 global customers
Benefits using Every Angle
20
Every Angle harmonizes your day-to-day Business Analytics jungle
21
Business benefit
‘Get in control’ of your information and improve your business results.
“I want an agile system that works for me (data collection & interpretation), and that supports me to take
decisions that improve our business performance”
How it probably is now
Every Angle – Business Analytics made easy for SAP
How it can be
IT Benefit
‘Get in control’ of your IT landscape and save costs.
“I want a stable, easy to manage operational reporting system, that fits in my IT landscape and saves us time
and money”
Every Angle gets you in control ...
22
ERP-dB
Management
Measure
Process
experts
Analyse
Execution
Improve
Actions
EA-client SAP-ZEA03
Alternatives
Predefined
Standard
Angles
Every Angle automatically extracts SAP data and
transforms it into business content which is available
easily and superfast for business users through
an EA-client GUI, through ZEA03 and through alternative
publishing modes
Customer
Specific
Angles
Get your answer – 3 sec
Ask any new question – 3 min
Install and train users – 3 days
The proof is in the pudding...
24
Improve
CS
levels
Active use
of classifi-
cation info
Remove
bottlenecks
Prevent
problems
before they
occur
Reduce
Working
Capital
...
How it can work...
an example
Plan and Execute
Enterprise Performance Management
Corporate Performance Mgt
● Budget performance
● Actuals versus Budget
● Analysis of Variances=>Actions
● Characteristics of report content
● Results of closed processes
● Functional domain (one module)
● Aggregated – Static
● Technology
● Datawarehouses
● Business Intelligence
Operational Performance Mgt
Observe and Respond
● Process performance
● Process goal fulfilment
● Root Cause Analysis =>Actions
● Characteristics of report content
● Interdependencies of open processes
● P2P, O2C, End to End process (cross module)
● Details – Ad hoc – Dynamic/Agile – Visibility
● Technology
● Definitely in memory...
● Business Analytics