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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