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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
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tFIND SOLVE LEAD
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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.
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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
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Open Black Box Solutions – Analytics2; Process2; People3
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2 Segment1
Accelerate2
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Open Black Box Solutions – Analytics2; Process2; People3
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2 Simplify1
Standardize2
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Open Black Box Solutions – Analytics2; Process2; People3
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Find1 Solve2
Lead33
Open Black Box Solutions Analytics2 Process2 People3
Most companies older 20< years are optimized for the Supply Economy in a Demand Economy World and Future – Avoid The Chasm Of DOOM
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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
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Value Chain vs …. Supply Chain
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The challenge of financial integration
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WHY –WIIFM/WIIFMB
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Definitions and Models
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proc·ess1
ˈpräˌses,ˈprōˌses/nounnoun: process; plural noun: processes1. a series of actions or steps taken in order to achieve a particular end.
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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"
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1. The action of working with someone to produce or create
something
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The biggest benefit ….... And the biggest client (executive) challenge is IBP is “common sense”
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The
Real
ity T
o Va
lue
Why
CXO
Tea
ms
Are
Excit
ed
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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
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Integrated Business Planning – Opening The Financial Integration Box
Yes!
This is the best answer if credible!!
No!
INVESTOR DECISIONS
Supply
Demand
2
1
3
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Digging Deeper especially with financial drivers
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Are you facing a CHASM OF DOOM
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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
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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
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Positioning “Get It Right” and steps to improve
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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
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Internal Facing with SCOR – OBB Connects ”Outside In” Financial Analytics to Internal
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The
DuP
ont M
odel
–w
idel
y ac
cept
ed a
naly
tical
/dec
isio
n m
odel
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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)
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The DuPont Financial Model –Connecting Stakeholder Outcomes To Financial Statements and Management Actions
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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
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What Does The Future Look Like – How Can Segmentation Help?
On Highway Engines
Off Highway Engines
Rail
Power Generation …......
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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
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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 …......
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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
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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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