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The Next Generation of Demand PlanningIntelligent and Real-TimeShaun Phillips, QAD DynaSysWednesday, May 8, 2019
Safe HarborThe Next Generation of Demand Planning
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This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to significant risks and uncertainties. Actual results and events may differ materially from those set forth in these forward-looking statements. These risks and uncertainties are detailed in QAD’s SEC filings, including its latest Annual Report on Form 10-K and in particular the section titled “Risk Factors” therein and other periodic reports subsequently filed by QAD with the Securities and Exchange Commission.
This presentation contains references to certain financial measures that have been adjusted to exclude certain expenses and other specified items. These financial measures differ from comparable measures calculated and presented in accordance with accountingprinciples generally accepted in the United States of America (“GAAP”) in that they exclude unusual or non-recurring charges, losses, credits or gains. Management believes that financial presentations excluding the impact of these items provide useful supplemental information that is important to a proper understanding of the Company’s results. These presentations should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures presented by other companies.
This presentation is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.
QAD undertakes no obligation to update forward-looking statements.
Sunrise over new Orleans
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Digital Forecast
AgendaThe Next Generation of Demand Planning
The previous generation
The tipping point
The Next Generation
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Before 2007 − Previous GenerationThe Next Generation of Demand Planning
• Inside-Out Planning- Uses stakeholders and data that reside within the four walls
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SalesHistory
StatisticalForecasting
Consensus Planning
PublishDemand
Plan
Widgets ‘R Us
The Year 2007The Next Generation of Demand Planning
Declining Costs in Bandwidth, Storage and Computing
Cos
t of P
erfo
rman
ce
1992 Today
$1,245 per Gbps
$569 per Gb
$222 per million transistors
Bandwidth<$10Storage
<$0.01Computing<$0.06
Sour
ce: D
eloi
tte A
naly
sis
The Tipping PointThe Next Generation of Demand Planning
STORAGE PROCESSING COMMUNICATION
Circa 2007The Next Generation of Demand Planning
STORAGE PROCESSING COMMUNICATION
Since 2007The Next Generation of Demand Planning
MACHINELEARNING 89%
Google ML
Since 2007The Next Generation of Demand Planning
CLOUDBIG DATA
2,7 ZBGoogle Processing
STORAGE PROCESSING COMMUNICATION
Since 2007The Next Generation of Demand Planning
INTERNETOF THINGS+330M
Per Month
STORAGE PROCESSING COMMUNICATION
Since 2007The Next Generation of Demand Planning
MACHINELEARNING
CLOUDBIG DATA
INTERNETOF THINGS
STORAGE PROCESSING COMMUNICATION
STORAGE PROCESSING COMMUNICATION
MACHINELEARNING
CLOUDBIG DATA
INTERNETOF THINGS
ADVANCEDANALYTICS
The Next Generation of Demand Planning
Since 2007
STORAGE PROCESSING COMMUNICATION
MACHINELEARNING
CLOUDBIG DATA
INTERNETOF THINGS
REAL TIMESENSE RESPOND
The Next Generation of Demand Planning
Since 2007
STORAGE PROCESSING COMMUNICATION
MACHINELEARNING
CLOUDBIG DATA
INTERNETOF THINGS
SOCIALCOLLABORATION
The Next Generation of Demand Planning
Since 2007
SOCIALCOLLABORATION
REAL TIMESENSE RESPOND
ADVANCEDANALYTICS
STORAGE PROCESSING COMMUNICATION
MACHINELEARNING
CLOUDBIG DATA
INTERNETOF THINGS
The Next Generation of Demand Planning
Since 2007
A Modern Demand Planning ProblemThe Next Generation of Demand Planning
So much technology
So few insights
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AugmentedReality
MachineLearning
AdvancedAnalytics
Cloud
Data Lake
DigitalTwin
Security
Social
BlockchainBusinessProcess
Management
Mobile
ProcessAutomation
IoT
A Modern Demand Planning ProblemThe Next Generation of Demand Planning
So much data
So few insights
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Promotions Activity
Customer Forecasts
Point ofSale
Macro-Economic Forecast
Historical Events
Demand History
Competitor Activity
SalesHistory
Industry Statistics
Weather
Product Launch
PlanSocial
Sentiment
Making SenseThe Next Generation of Demand Planning
Look outside the four walls Embrace the extended supply chain
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SalesHistory
StatisticalForecasting
Consensus Planning
PublishDemand
Plan
Widgets ‘R Us
Making Sense − Data InputsThe Next Generation of Demand Planning
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SalesHistory
StatisticalForecasting
Consensus Planning
PublishDemand
Plan
SalesHistory
• Orders• ForecastsCustomers
• Pricing, Promotions, • RecallsCompetitors
• Social sentiment• Point of SaleConsumers
• Customs. Import/Export Volumes• Statistics Bureau. Interest rates, FOREX
RegulatoryBodies
Making Sense − Data InputsThe Next Generation of Demand Planning
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SalesHistory
StatisticalForecasting
Consensus Planning
PublishDemand
Plan
Customers
Competitors
Consumers
RegulatoryBodies
Customers
Competitors
Consumers
RegulatoryBodies
Making Sense – Plan GenerationThe Next Generation of Demand Planning
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SalesHistory
StatisticalForecasting
Consensus Planning
PublishDemand
Plan
StatisticalForecasting
• Correlation Causation Analysis• Ignores non-correlated data
MachineLearning
• Cluster by behaviour, not by brandIntelligentClustering
• Predict Launch BehaviourProductIntroduction
• Identify short term demand signalsDemandSensing
Making Sense – Plan GenerationThe Next Generation of Demand Planning
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SalesHistory
StatisticalForecasting
Consensus Planning
PublishDemand
Plan
Customers
Competitors
Consumers
RegulatoryBodies
MachineLearning
IntelligentClustering
ProductIntroduction
DemandSensing
Customers
Competitors
Consumers
RegulatoryBodies
MachineLearning
IntelligentClustering
ProductIntroduction
DemandSensing
Making Sense – Consensus PlanningThe Next Generation of Demand Planning
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SalesHistory
StatisticalForecasting
Consensus Planning
PublishDemand
Plan
• Drive fact based decision making• Identify Actionable Insights
AdvancedAnalytics
• Social Feed Synchronisation• One forum, many subjects
SocialCollaboration
• Multi-enterprise collaboration• Communicate vertically
End to EndCollaboration
• Calendar/Task Synchronisation• Coordinate processes vertically
SmartWorkflow
Consensus Planning
Making Sense – Consensus PlanningThe Next Generation of Demand Planning
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SalesHistory
StatisticalForecasting
Consensus Planning
PublishDemand
Plan
Customers
Competitors
Consumers
RegulatoryBodies
MachineLearning
IntelligentClustering
ProductIntroduction
DemandSensing
AdvancedAnalytics
SocialCollaboration
End to EndCollaboration
SmartWorkflow
Making Sense – The Next GenerationThe Next Generation of Demand Planning
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SalesHistory
StatisticalForecasting
Consensus Planning
PublishDemand
PlanBig
DataMachineLearning
SocialCollaboration
PublishDemand
Plan2007 2019
Customers
Competitors
Consumers
RegulatoryBodies
MachineLearning
IntelligentClustering
ProductIntroduction
DemandSensing
AdvancedAnalytics
SocialCollaboration
End to EndCollaboration
SmartWorkflow
BigData
MachineLearning
SocialCollaboration
PublishDemand Plan
What Does it Take?The Next Generation of Demand Planning
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Summary
The proliferation of available data requires different technology.
Machine Learning is a method – not an outcome. The data & people required to make insightful decisions are
no longer inside the company. Disruption will continue. Technology is a source of competitive advantage. Leverage of data is a source of competitive advantage.
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The Next Generation of Demand Planning
Next Steps
1. Do not be fearful.2. Break down the 4 walls when it comes to data and people.3. Challenge de-coupled trading relationships. 4. If it doesn’t add value – move on.5. Your supply chain actors are already collaborating.
Can you harness the value.6. Leave process automation till last.
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The Next Generation of Demand Planning
Questions?The Next Generation of Demand Planning
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Shaun PhillipsProduct Manager