building a roadmap to adopt sap integrated business planning (ibp)

Spinnaker Proprietary & Confidential 2015

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April 21, 2015

Building a Roadmap to Adopt

SAP® Integrated Business Planning (IBP)



Founded in 2002 as a Supply Chain Planning consulting firm,

Spinnaker Management Group has become a holding company for several brands.

350+ resources

200+ clients globally

Spinnaker Overview

ERP & CRM

Maintenance

HQ Denver

Supply Chain

Services

HQ Houston

Technology

Staffing Services

HQ Pittsburgh



Introductions

Jeff BaertSenior Manager

• An SAP-focused supply chain functional consultant with over 25 years of industry and IT experience

• Experience with hands-on cross module requirement analysis, design/development, configuration and client specific training

• Implementation experience in SAP IBP/S&OP, APO DP/SNP/PPDS/TPVS/Alert Monitor, and ECC/MM/PP as well as SAP/BW

Sunil SanghaniVice President

• SAP Practice Lead for Spinnaker

• Over 20 years of industry and consulting experience - supply chain, SAP

• Experience driving supply chain transformations/improvements, including organizational development, process reengineering, and systems implementation

• Specialize in SAP based transformation programs



Integrated Business Planning (IBP) –

One Acronym, Two Definitions

Process-Focused Definition:

IBP is typically used to refer to highly mature (Stage 3-4) Sales & Operations Planning (S&OP)

processes. At this point companies effectively synchronize the overall company and extended

planning process intended to align financial, supply chain, and go-to-market business decisions.

SAP’s Software Definition:

SAP Integrated Business Planning is a suite of planning applications focused on S&OP, Demand,

Supply, and Inventory Planning that provides essential technology support for achieving advanced

IBP capabilities.

S&OP/IBP Maturity Model

STAGE 1REACTING

STAGE 2ANTICIPATING

STAGE 3COLLABORATING

STAGE 4ORCHESTRATING

Development of an operational plan

Demand and supply matching

Internal cross-functional

collaboration and profitability focus

Extended supply chain collaboration and

financial optimization

S&OP/IBP

Strategy

Goals



1. Share Spinnaker’s Point Of View on IBP

– Need for innovation?

– How SAP IBP is different and why it should be considered?

2. Understand how to adopt SAP IBP

– Prioritizing business challenges

– Realities of building a SAP IBP roadmap

– What can you expect from a Roadmap?

Goals For The Session



The Need for Innovation:

Recent Headlines

http://www.theguardian.com/world/japan



The Need for Innovation:

What’s Required

Increasingly demanding customers

SKU and option proliferation

Shortened product life cycles

Challenging market conditions

Increased global competition

Disruptive distribution models

Risk in lengthy global supply chains

Currency volatility

Poor coordination across supply chain partners

Internal disconnects between marketing, sales

operations, and finance

External disconnects with suppliers, customers

and supply chain partners

Ineffective technology enablement

Non-scalable Excel-based planning

Rigid advanced planning systems

Ineffective reporting and analytics tools

Lack of shared metrics

Misaligned incentives across SC partners

Collaborative, cross functional, structured

business processes

Incorporating internal and external inputs

Cross-functionally aligned operating plans

Optimizing against integrated business goals

Enabled by flexible planning technology

Consolidating demand, supply, and inventory

data throughout the supply chain

Supporting scenario modelling, dollarization,

and real-time status updates

Providing a control tower of status and metrics

Balancing critical resources

People

Capacity

Working capital

To achieve key objectives

Enable growth, profitability, quality, and

customer service objectives

Supporting end-to-end goals and incentives

… Require Significant Supply Chain

Planning Capability ImprovementsToday’s Realities....



World-class planning capabilities require integrated processes and

supporting technology solutions across business processes.

Spinnaker’s Structured S&OP ApproachThe Need for Innovation:

Putting It All Together

REVIEW/APPROVESUPPLYDEMAND

Consensus

Demand

Planning

Closed-Loop S&OP

Financial

Analysis

Executive

Review

Demand-

Supply

Balancing

Forecasting

Analytics

Consensus

Demand

Independent

Forecasting &

Customer

Collaboration

Constrained

Supply

Planning

Inventory

Planning

Supplier

Collaboration

& Commits

Supply

Response

Financial

Plan

Scenario

Analysis

Spinnaker Planning Process Framework



Typical advanced supply chain planning tools support only a portion of the

required business processes, forcing companies to use point solutions and

Excel-based processes throughout the planning process.

Spinnaker’s Structured S&OP ApproachThe Need for Innovation:

Where Current Solutions Fall Short

REVIEW/APPROVESUPPLY

Consensus

Demand

Planning

Closed-Loop S&OP

Financial

Analysis

Executive

Review

Demand-

Supply

Balancing

Forecasting

Analytics

Consensus

Demand

Independent

Forecasting &

Customer

Collaboration

Constrained

Supply

Planning

Inventory

Planning

Supplier

Collaboration

& Commits

Supply

Response

Financial

Plan

Scenario

Analysis


APS

Focus

DEMAND



Control Tower An end-to-end view of the supply chain with near real time information and decision making analytics with drill down capabilities, scorecards, and exception management

Supply Develops a time phased constrained or unconstrained multi level production plan using heuristics or optimization with “What If” and scenario planning capabilities.

Inventory Uses scenario and what if analysis coupled with a dynamic statistical approach to determine ideal time phased network inventory strategies.

Demand Supports the demand generation process by managing demand signals via demand sensing, predictive analytics, consensus planning and statistical modeling

Response Generates a short to mid-term supply plan that uses prioritized and categorized demand to support allocations planning, order rescheduling and ATP confirmations.

S&OP Enables an integrated business planning process to achieve desired operational and financial objectives with capabilities such as scenario modeling and collaboration

Not Released

How is SAP IBP Different?

Integrated suite of planning applications covering all processes in the Spinnaker Planning Framework

Hana platform – faster and scalable Cloud-based for rapid deployments Common data model across modules Fully integrated with ERP

Integrated Business Planning

Control Tower

Sales and Operations Planning

Demand InventorySupply Response

2015



Real-Time Scenario Planning & Simulation

S&OP Process

Social Collaboration

Real-Time Analytics

Consensus Demand Planning

Material and Capacity

Constrained Planning

Inventory Target

Setting & Projections

Revenue & Profit Impact

Sales Forecasting

Supply Chain

Finance

Sales

Illustrative Use Cases: Facilitate a consensus planning (demand and

supply) process Integrated Demand and Supply Planning

simulation ("what if”)

Illustrative Use Cases: Improve the accuracy of financial projections and align with

operational forecast to manage demand / supply volatility Provide visibility to inventory projections and monetization to

feed working capital analysis

Illustrative Use Cases: Monetization of the operational

forecast and drive consensus on $$ plans across sales, finance and supply chain

Promotional impact and effectiveness, revenue optimization using price / volume (operational)

Leveraging the S&OP application?



IBP Suite of Applications 2015

S&OP

Control Tower

Demand

Inventory

Supply

Transformation Opportunity

Planning Maturity

STAGE 4

ORCHESTRATING

Extended Supply

Chain Collaboration

and Financial

Optimization

Tech

no

log

y

As SAP’s IBP product matures, it creates an opportunity for clients to optimize

Process, People, Metrics, Policy to achieve planning excellence.

Low High



Both APO and IBP can be leveraged to reap benefits and resolve business challenges? What are your challenges?

SAP IBP Complements SAP APO

SAP APO

Demand PlanningSupply Network

PlanningPP/DS Global ATP


Control Tower

Sales and Operations Planning

Demand Supply Inventory Response

2015

Forecast, Supply Plan

Consensus Plan

Forecast

Optimized Inventory

Levels

Order Visibility

Planned and

Production Orders



Readiness to Transition

Key Considerations:

Prioritize your challenges

Assess process maturity

Evaluate current technology

Consider user skills assessment

and adoption

Create cross functional

sponsorship

Did you know?

• SAP will support APO until 2025

• SAP IBP is new – some applications are

more mature than others



What’s the Right Roadmap for You?

Business Challenge Short-term Solution

S&OP Process AutomationFocus on enabling a cross functional S&OP process by using SAP S&OP

integrated with existing APO (or other) planning solutions

Field Sales ForecastUse SAP S&OP to gather field sales forecast data and manage a demand

consensus processes

No APS, Excel based planningAdopt SAP IBP as a light-weight end-to-end planning solution and build

out advanced capabilities over time

SC VisibilityBegin to explore advanced capabilities such as Control Tower and IBP

capabilities not available in APO or other legacy planning solutions

Business Challenge Intermediate to Long-term Solution

Focused Module

Implementation

Focus on prioritized modules that yield maximum benefits, for e.g.

Inventory Optimization

Full Suite Implementation Replace existing advanced planning solutions

In either path forward, we expect most clients to adopt

a “start small, scale fast” approach.

Companies have the following paths toward adopting SAP’s IBP suite:



SAP IBP S&OP is a mature capability that enables integrated business planning

Step 1:Prioritize applications aimed at solving specific gaps

Step 2:Completely replace existing planning solution

Illustrative Transition to IBP

Prerequisites Well defined S&OP process Organizational readiness Cross functional sponsorship

S&OP

PP/DS

Demand Planning

Supply Network Planning


Existing APS

Prerequisites Existing Planning Data Knowledge of Excel Type

pivot tables Mapping of entire supply

chain

Control Tower

S&OP

PP/DS

Demand Planning

Supply Network Planning

Existing APS

Prerequisites Demand segmentation Production constraints Inventory constraints Customer Service Levels

Control Tower

S&OP

Demand

Inventory

Supply

PP/DS

Existing APS

Integrated Business Planning Integrated Business Planning



Consider the end to end planning framework to align each of the capabilities and deciding

where to start.

Spinnaker’s Structured S&OP ApproachDefining the Right Roadmap for You

REVIEW/APPROVESUPPLYDEMAND

Consensus

Demand

Planning

Closed-Loop S&OP

Financial

Analysis

Executive

Review

Demand-

Supply

Balancing

Forecasting

Analytics

Consensus

Demand

Independent

Forecasting &

Customer

Collaboration

Constrained

Supply

Planning

Inventory

Planning

Supplier

Collaboration

& Commits

Supply

Response

Financial

Plan

Scenario

Analysis




How to Develop a Roadmap

What should you implement, when

and why?

Process, People, Metrics and Policy

improvement opportunities

Cost / Benefit analysis

Key Outputs

Current State Review

Best Practice Gap Analysis

Summary

Future State Design

Future State Roadmap

Prepare benchmarking and best practices report

Define and prioritize gaps

Conduct facility walk-through(s) and review current state processes

Review system design, application and data architecture

Review roles and responsibilities

Review current reports and metrics

Define Future-State High-Level Process Flows

Define Future-State Solution Architecture, Data and Org Requirements

Define Recommended Business Releases

Develop high level dependencies, costs and benefits of each Business Release

Prepare sequenced Business Release roadmap

People Process Technology Policies Metrics



Questions

&

Answers

Thank You

19



Contact Information

Dan LuttnerBusiness Development Manager

412.760.2750

[email protected]

Sunil SanghaniVice President

630.881.1082

[email protected]

Jeff BaertSenior Manager

469.585.3897

[email protected]

building a roadmap to adopt sap integrated business planning (ibp)

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