game on! sony (scea) plans for profitability with sop technology updated sw2-feedback (3)
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1© 2014 Steelwedge Software, Inc. Confidential.
Single Line of Sight: Plan, Perform, Profit
IndustryWeek Webinar
Game On! Sony Plans for Profitability with S&OP Technology
Game On! Sony Plans for Profitability with S&OP Technology
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PlayStation has the Most Popular Video Games
4
Movie Here
Sony Computer Entertainment America
SCEA is a division of SONY Corp of America
PlayStation® game console introduced in USA 1995.
Responsible for PlayStation brand in USA, Canada, and Latin America.
Platform categories are Hardware, Software, Peripherals, and Digital.
Tough planning cycle with long lead times on Hardware and Peripherals.
PS4 PS3 PSNPS Vita
2010 - Impetus for Change and Current State of S&OP
●We needed to get S&OP going for fall 2013 release of PS4.
●SCEA not organized functionally.●Strategy executed from annual budget.●Reporting is not planning.●No single source of truth.
At 15yrs, we were the world’s oldest start-up!
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S&OP: SCEA’s Journey
Initial Consultation
H1 2010
Education and Initial Assessment
S&OP Roadmap
Foundational Capabilities
H2 2010
Build Foundation Capabilities
Consolidated Item Master
NPI Milestone Review
Detailed Design
H1 2011
S&OP Design Complete
S&OP Process Defined
S&OP Calendar Established
Pilot
H2 2011
Pilot S&OP and Select Technology
Tool Selection and Implementation
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H1 2012
Full S&OP Implemented
Full Senior Exec Team & CEO included in Exec S&OP
Full S&OP
S&OP: SCEA’s Journey (cont.)
Innovation Pipeline
H1 2013
S&OP Process Expansion
Innovation Pipeline Review and DSR
H2 2013
S&OP Process Execution
PS4 Launch Results
ExecutionFinancial Integration
H2 2012
S&OP Business & Scope Expansion
Financial Integration
Telescopic Calendar
H1 2012
Comparative Sales Results at Launch
Hardware 0.9M 2.3M
Software 1.9M 4.8M
Peripherals 1.1M 2.1M
Total Revenue $0.7B $1.3B
Source: NPD US, Nov’13 ~ Jan’14, Nov’06~Jan’07.
First 3 Months of Unit Sales
Crawl-Walk-Run-Sprint: Methodology & Fast Returns
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Phase One with :
• Demand planning and an executive engagement phase of the total sales and operations planning (S&OP) life cycle.
Over the course of four months, Steelwedge worked with SCEA to:
• Automate the data integration process to sync plans into a single view and minimize risk of errors from multiple sources.
• Provide executive-level visibility to the demand forecasts to show the financial impact of changes in forecasts to inform business priority decision-making.
Crawl-Walk-Run-Sprint: Methodology & Fast Returns
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Phase Two with
• Synchronized new forecasting strength via supply planning and collaboration with SCEA corporate suppliers and telescopic planning.
• SCEA enabled Telescopic Planning for easy movement between weekly and monthly planning periods, allowing a much closer, more frequent look at impacts to its supply and demand.
Looping Back to Leap Forward
Demand Signal
Forecast Process
Allocation & Supply Planning
Better Demand Signal
Drives Forecast Accuracy
Improves Supply Planning and Allocation
S&OP Benefits with Steelwedge
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●Profitability SCEA forecast accuracy improvement from 60% to ~85% immediately
drives better profitability. SCEA now has enough data insight to push from SKUs to channels, more
intelligently.
●Market Share Better consensus planning, powered by Steelwedge, helps SCEA make
better Supply, Demand and tradeoff decisions, due to more reliable data. The faster to market, the better the market share potential.
●Scalability The cloud-based solution from Steelwedge allows SCEA to power its
process in scope with its evolving market.
Profitable Supply/Demand Tradeoffs at Sony
“Steelwedge provides the visibility we require to run our business, and delivers it in a way that is intuitive for business users to consume. Steelwedge has the secret sauce of a high performance system that is easy to understand. Steelwedge is planning on steroids. It’s a truly unique offering.”
Sree Vaidyanathan
Director of Business Applications
Sony Computer Entertainment America
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High ~85% forecast accuracy
(up from 60%)
1 million unitsof PlayStation 4
preordered
2.3 million unitsSales of PlayStation 4 sold in first 3 months
Success by the Numbers:
15© 2014 Steelwedge Software, Inc..
Single Line of Sight: Plan, Perform, Profit
Agility Webinar Series
Game On!
Sony (SCEA) Plans Profit with S&OP Technology
16© 2014 Steelwedge Software, Inc..
Agenda
• Problem: The Spreadsheet Approach
• Solution: S&OP Automation
• Key SCEA Success Areas
• Q & A
17© 2014 Steelwedge Software, Inc..
Pre-ESOP
Ground Reality: Trying It With Spreadsheets
Demand Planning, SCM/APS Systems
ERP, Financial, & Transactional
SystemsSAP, Oracle, etc.
IndustryData
Consolidation,Review,
Overrides
Data Collection,
ReconciliationConsensus Process ESOP
Operations
Marketing
Sales
Finance
?
Manual
Complex
Security Risk
Not Scalable
Does this Give Executives an Agile Decision Making Process?
Systems Landscape
18© 2014 Steelwedge Software, Inc..
Change Your Reality; Drive S&OP Adoption & Values
Time
L1
L2
L3
L4
Q1 Q2 Q3
Excel/Manual S&OP
Step Change Maturity &
Performance
Avoid Process Failure
Q4
Valu
e
Accelerated Time to Value
“Companies can have a hard time getting past basic levels of S&OP without technologies like Steelwedge to support the process”
- Tim Payne VP Supply Chain Analysis, Gartner
19© 2014 Steelwedge Software, Inc..
Best Practice S&OP Aligns People, Process & Systems
“We continue to look at S&OP as an aspect of business that
needs terrific improvement…
It’s hard to argue this shouldn’t be a central piece of management
software”
–Rob Kugel, Ventana Research
20© 2014 Steelwedge Software, Inc..
Return on Investment is Substantial
Planning Cycle Time
Forecast Accuracy
Inventory
Customer Service
Revenue and Margin
Value Levers
50-70% Reduction
15-30% Improvement
20%-25% Reduction
25% Reduction in Stock-outs
1-2% Lift in Revenue
Typical Results
21© 2014 Steelwedge Software, Inc..
S&OP Success with Steelwedge
Demand Planning, SCM/APS Systems
ERP, Financial, & Transactional
SystemsSAP, Oracle, etc.
IndustryData
Single Cross-Functional Planning Environment
Interactive planning for:• All S&OP Stakeholders• Plan Review• Overrides• Assumptions• Scenarios• Consensus Process• Pre-S&OP• Executive S&OP• Audit Trail
Systems LandscapeProduct / Sub-FamilyCustomerRevenue
Product / FamilyTerritory / RegionRevenue
Product / Family PromotionsRevenue
Product / Family RegionUnits & Revenue
ProductStock LocationsUnits and Inventory
Family / Series Territory / RegionRevenue, Margin & Cash
Family / Series / BUGeoRevenue, Margin & Cash
ProductProduction SiteUnits and Capacity
Family / Series / BUGeoRevenue, Margin & Cash
Family / Series / BUGeoRevenue, Margin & Cash
Planning TermsStakeholders
Account Managers
Sales Managers
Marketing
Demand Planners
Supply Planners
Production Planners
Finance
Executives
Customers
Suppliers
Cross-functional Planning
Environment
22© 2014 Steelwedge Software, Inc. Confidential.
Managing the Translation between Functions
Sales, Marketing, Product Management, Demand
Planning
Demand
Inventory, Production, Procurement and
Allocations
Supply
Profit & Loss, Balance Sheet
Finance
Executive Dashboards
Executive
23© 2014 Steelwedge Software, Inc. Confidential.
Planning Dashboard
Steelwedge Enterprise Enabled Excel
Slice of view(hierarchy)
Time series of key figures
Planning data for review and
updates
Planning Views Combine Planning, Analytics in Familiar UI
Capture institutional knowledge / assumptions
24© 2014 Steelwedge Software, Inc. Confidential.
Why Steelwedge?
• 100% S&OP Focus & Best Practices
• Proven Track Record of Delivering S&OP
• Ease-of-use, Flexible & Scalable Solution
• Power of the Cloud to Leverage Big Data
• Leverages Existing Investment in Systems
• Crawl Walk Run Approach“We’ve built a lot of structure to power our agility with
people, process and technology at Contech. I need a holistic view and Steelwedge delivers. There are
very few out there that can do what Steelwedge does.”
- Randy Ramsey, Director Supply Chain, Contech
25© 2014 Steelwedge Software, Inc..
Steelwedge is a strong leader in S&OP and IBP
“Steelwedge is an ideal solution for a heterogeneous environment with multiple S&OP processes with inputs from multiple ERP and APS technologies.”
Lora Cecere Founder and CEO, Supply Chain Insights
“Steelwedge has grown into one of the market's leading S&OP solutions". “Steelwedge has proven that it provides a capable and scalable Stage 3 S&OP solution suitable for global deployments.”
Tim Payne Research Vice President, Supply Chain Research Group, GARTNER
Steelwedge was among the highest ranked in capabilities scoring and was one of “the vendors that were notable in portfolio strategy and portfolio benefits delivered.”
Simon EllisSupply Chain Practice Director, IDC
26© 2014 Steelwedge Software, Inc. Confidential.
Crawl – Walk – Run Approach
• Key to success is incremental value• Crawl: plan ahead with end in site• Walk: implement single solution• Run: measure, improve, expand• Sprint: align, integrate, monitor
• Start with quick win as phase 1 & foundation
• Expand the roll-out adding value as you go