SC MSUPPLY CHAIN movemeNt
changing requirements
more frequent ad-hocquicker reports better quality predictive
Big Data
overview talents knowledge management
new supply suppliers & distributors worldwidenew competitors
scarcity natural resources sustainable sourcing alternative materials
Growing IT capability (ambiguity) application in the cloud
Software as a Service mobile applications/apps
defogging
drilldown to individual orders
standard S&OP reports identification dynamic bottlenecks
Gaining understanding
use predictive analysis personal view
measure indepenciesinventory
service level
actionable information
less communication noise
operational control
Company impaCt
Speed of Change
1 2
impliCationS for
operationS
real Self-ServiCe
BuSineSS intelligenCe
4 3
operational
tranSparenCy
in Sap
AcT
check
PLAN
DO
Need to install additional control
more internal regulations
Governance
Risk
compliance
measure analyze act
scenarios mitigation strategies roles
responsibilities
more financial reporting
Global focus on core business
redesign supply chains
coping with demand
reducing complexity outsourcing of processes reducing vendors mutual multiple dependency
carbon footprint measurement cO2 emissionsavoiding additional taxationemission swaps
supply chain visibility improve order status
overview bottlenecks
late ordersback orders
improving forecasting improving customer service
IT dependency
systems as risksdistrust IT department no overview of IT landscape long IT implementation time
importance data quality garbage in, garbage out
need for business intelligence
Financial volatility
stock exchange currency exchange
inflation working capital availability
Uncertaintymore regulation
local/regional
industryFDA
hAccP
financialIFRS
Basel II SOX carbon taxation
natural disasters
changing demographics
globalization
complexity
aging people
global hR pool attraction of talent
talent retention
new demand emerging markets demand volatility
cope with uncertainty
Overcome organizational silos
changing need for information
changing IT environment
improve operations
suffer (by choice)
bufferinventory capacity time
cross-functional checks
financial investigation
aligning kPIs
one number planning
sales & operations planning
integrated business planning
demand planning supply planning
financial gap analysis what-if scenarios
handling Big Data
better quality
ability to learn
sourcing
manufacturing
logistics
financials
relevant information clean data
training staff facilitating systems
integration of eRP instances
integration of business applications
SAP SRM AribaSAP APO SAP Me
SAP WM SAP TM
SAP ecc & eRPSAP BI & BW
overview of licenses streamlining releases
creating visibility
improved service levels reduced stock levels
early bottleneck warnings reduced lead times
reduced risks
creating clarity
instant dashboard
higher speed of calculation
remove hidden complexity
reduction of information lead timesreal-time
SAP hANA in-memory
built-in process knowledge personal customizing
Develop IT agility
IT compliancy SAP certified
quickly implemented add-on low IT investment
low organizational resist-
user friendly interface function specific
frequent use of softwareimproved data quality
data cleansing
Enabling business users to directly access drill-down Business Intelligence is the solution for optimizing processes in a world which is constantly changing. The military calls this environment “VUCA” and it stands for: Volatility, Uncertainty, Complexity and Ambiguity. Maintain control, as well as flexibility, using smart IT applications that can deliver the required Visibility, Understanding, Clarity and Agility. Supply Chain Movement, along with Every Angle, supplier of a Business Intelligence add-on for SAP software, has created a mindmap with practical route descriptions and warning signs.
Mindmap for Operational Transparency in SAP
mindmap manual
In today’s business world, the rate of change is continually increasing. In the military they call such an environment VUcA: Volatile, Uncertain, complex and Ambiguous. For volatility, all you have to do is look at the financial markets. Uncer-tainty is expressed in increasing regula-tions, but also pertains to the probable introduction of a cO2 tax and unpredicta-
ble natural disasters. Globalization, com-bined with the changing composition of the population, causes complexity in busi-ness. The ever-increasing availability of IT solutions creates a sense of ambiguity: is this an opportunity or a threat? A VUcA world forces companies to create a plan.
What does VUcA mean for companies? companies are forced to utilize an increa-sing number of control mechanisms, such as internal rules and specific financial reports. At the same time, they focus on their core business, integrate acquisi-tions and centralize departments. The redesign of supply chains is a necessary consequence in order to meet the needs
of customer demand. The dependence on IT consistently increases. Yes, a plan remains a plan without implementations by Operations, so: do.
In Operations you have three choices for dealing with uncertainty: Improve, Buffer (with supplies, capacity and/or time) or Suffer (as a choice, not as
a consequence). The traditional silos between company departments must be demolished. At the same time, the vari-ous function-oriented SAP applications must be integrated to be able to meet the changing information needs. Check the required information provisions.
In a VUcA world, companies need to give the business user access to true self-service business intelligence in order to: intercept volatility with visibility; combat uncertainty with understanding; reduce complexity with clarity (think of dashboards you can set up yourself) and neutralize ambiguity with agility. They can do this through utilizing, for example,
a software application that provides business users with quick answers to their questions. A predictive view creates confidence to manage proactively in a changing world: act.
Supply Chain Mindmapping
Inventor’s mindmap:
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