Creating

a High Performance Operational Environment

to realise Measurable Performance

April 25, 2012 – LogiPharma Genève

Jacques Adriaansen – Consulting Director Every Angle

j.adriaansen@everyangle.com

Strategic take aways (from the information angle)

● Be conscious about the difference between Corporate Performance

Management (top-down/bottom up, what Finance needs) and

Operational Performance Management (east-west/west east, what SC needs)

2

● Operational Performance Management (as part of SCM) is the key to the

company’s strategic success

● If execution doesn’t execute in line with the strategy, then your strategy is void

help you to distinguish yourselves from the competition

● Bring the ‘question and immediate answer’-power to the business users

● The outside world is changing so fast that the traditional ‘user request – information

manager – IT solution’- approach has become inadequate

● Free up the scarce IT capacity to focus on the relevant strategic solutions

help you to distinguish yourselves from the competition

Practical take aways (from the information angle)

● Please realize that your IT department has a really hard time to provide

you with end to end supply chain information, with frequently changing

information needs

● The traditional BI systems and approaches fail to deliver this insight

● And that’s why you have Excel and Access woods to answer the ‘ad hoc’ questions

3

● Try to figure out how much time and money is spent on building and

maintaining these Excel woods (self-made Operational BI

● Install a “Closed Loop Performance Management Framework”

● The ‘execution people’ must know what to do to avoid ‘red’ or ‘orange’ gauges at the

KPI dashboard

● High level aggregated SC view, combined with the relevant low level operational

details

Contents

4

● About Closed Loop Performance Management 1

Dynamically changing information needs... the bottlenecks

2

● It is possible in an SAP ERP environment 3

● About Every Angle 4

Process experts Analyse results and detect

performance bottlenecks

Define improvement actions

2

Define KPIs

and targets 0 Top management

Strategic KPIs

Measure and

compare with targets 1 Management

Operational KPIs

Closed

Loop

Time &

budget

Different IT for

different purposes

Details,

ad hoc,

variance

Execution Execute, Improve and

facilitate actual action

on the floor

3

Our vision on Closed Loop Performance Management

5

Operational management

Operational KPI

Execution

Analysis

Detect and Act

Performance Management

Control

Process experts

Operational Performance Management

Top management

Strategic KPIs

BI / BW

ERP

Reporting & Analytics Display layer

Performance Management Information

6

Performance Management – Corporate and Operational

Classic / Corporate PM

Vertical, Control oriented

Financial, strategic

Stabile KPIs

Operational PM

Horizontal, process oriented

High detail and diversity

Multi dimensional

High change level

7

SITE 1200 - Dresden SITE 1000 - Hamburg

Every Angle OPM for Supply Chain (eg Pharmaceutical)

In Operational Performance Management it is about the details

and inter-order relationships…

SO

Su

pp

lie

r p

rob

lem

PO

Raw materials

WO

Active ingredient

WO

Packaging Sales order

Box Leaflet

Flask …

Raw materials

TO

Dis

sa

tisfie

d c

us

tom

ers

?

End-to-End Supply Chain Analysis

on millions of detailed order lines

8

Performance Management – Operational… in practice

Classic / Corporate PM

Vertical, Control oriented

Financial, strategic

Stabile KPIs

9

Self-made Operational PM

Reliability and Security?

Dependency on persons?

Maintainability?

Scalability?

Costs?

SE16 SE16 ABAP ABAP SE16 SE16 SE16 SE16 ABAP

Contents

10

● About Closed Loop Performance Management 1

● Dynamically changing information needs... the bottlenecks

2

● It is possible in an SAP ERP environment 3

● About Every Angle 4

Major IT roadblocks for Performance Management

Data Model

Complexity

“Ashby’s law of Requisite Variety” also

applies to ERP

Process Model

Complexity Co-operation

roadblocks

Managers cannot specify

BI experts seldom understand

business needs

Expert brains war zone

Few people have an in-depth cross-functional insight in ERP/process mechanics

Proposed functional solution specifications can be wrong

Process data structures are inherently complex

Interfunctional co-operation is hard

It’s hard to get information out of data (fast & correct)

11

A succesful end-user application has to beat these roadblocks and must be extremely fast

Contents

12

● About Closed Loop Performance Management 1

● Dynamically changing information needs... the bottlenecks

2

● It is possible in an SAP ERP environment 3

● About Every Angle 4

BI / BW

ERP

Reporting & Analytics Display layer

A consistent platform for business analytics in SAP ERP…

Improvement

Action lists

Operational KPI

Measurement

Business Process

Analysis

Standard

content

Ad hoc analysis

13

Operational management

Operational KPI

Execution

Analysis

Detect and Act

Performance Management

Control

Process experts

Top management

Strategic KPIs

What would you prefer to improve your performance?

Classic / Corporate PM

Vertical, Control oriented

Financial, strategic

Stabile KPIs

Operational PM

Horizontal,

process oriented

High detail and

diversity

Multi dimensional

Extremely volatile

an unstructured, risky

Excel-wood

an easy-to-end-use,

out-of-the-box solution

or

15

Contents

16

● About Closed Loop Performance Management 1

Dynamically changing information needs... the bottlenecks

2

● It is possible in an SAP ERP environment 3

● About Every Angle 4

Quick Introduction of EveryAngle Software Solutions

● International software company with HQ in NL

● 14 years of experience in BI

● Thoughtleader in „in Memory“ technology

● Specialized on Business Performance Management

based on SAP ERP

● SAP certified since 2001

● Mature product, used by more than 50 SAP

customers in more than 30 countries globally

● Further expansion to USA, Latin America,

and APA

● GARTNER :

„Cool Vendor 2011“ in the SAP Ecosystem

17

What is Every Angle About?

Every Angle is about Business Analytics on SAP-databases

● Out of the box SAP add-on, live within 48 hours (plug & play)

● Based on SAP-ERP-data as a source

● Using master data, transactional data as well as customizing settings of the SAP system

● Object oriented “In Memory” technology for very quick analyses

● Prime focus is to enable business analytics

● Enables the business user

Pre and Post Implementation Uses

● Process Performance Management

● Data cleansing / Data governance

● Project support (e.g. Go-Live Support)

Results

● Quick ROI by :

Compliance , Data quality , Service level , working capital

18

Enthousiastic ‘installed base’

19

Food, Pharma

& Chemicals

Wholesale, Retail

& Fashion

Utilities & Energy

Discrete Manufacturing

• Increase the operational Performance of your

company through an incredible transparency

• Improvement of compliance, since the analysis comes

directly from company data within SAP and not from Excel

• Reduced TCO by increasing the data quality of master data

as well as transactional data in ERP

• Quick ROI by fast implementation (48h) as well as

existing content based on Best Practice

• Supports decisions of the enterprise on all levels

• Increase acceptance and SAP user satisfation

• SAP partner solution, secures your investment in SAP

• Reliable standard solution which is already implemented

at more that 50 global customers

Benefits using Every Angle

20

Every Angle harmonizes your day-to-day Business Analytics jungle

21

Business benefit

‘Get in control’ of your information and improve your business results.

“I want an agile system that works for me (data collection & interpretation), and that supports me to take

decisions that improve our business performance”

How it probably is now

Every Angle – Business Analytics made easy for SAP

How it can be

IT Benefit

‘Get in control’ of your IT landscape and save costs.

“I want a stable, easy to manage operational reporting system, that fits in my IT landscape and saves us time

and money”

Every Angle gets you in control ...

22

ERP-dB

Management

Measure

Process

experts

Analyse

Execution

Improve

Actions

EA-client SAP-ZEA03

Alternatives

Predefined

Standard

Angles

Every Angle automatically extracts SAP data and

transforms it into business content which is available

easily and superfast for business users through

an EA-client GUI, through ZEA03 and through alternative

publishing modes

Customer

Specific

Angles

Get your answer – 3 sec

Ask any new question – 3 min

Install and train users – 3 days

The proof is in the pudding...

24

Improve

CS

levels

Active use

of classifi-

cation info

Remove

bottlenecks

Prevent

problems

before they

occur

Reduce

Working

Capital

...

How it can work...

an example

Plan and Execute

Enterprise Performance Management

Corporate Performance Mgt

● Budget performance

● Actuals versus Budget

● Analysis of Variances=>Actions

● Characteristics of report content

● Results of closed processes

● Functional domain (one module)

● Aggregated – Static

● Technology

● Datawarehouses

● Business Intelligence

Operational Performance Mgt

Observe and Respond

● Process performance

● Process goal fulfilment

● Root Cause Analysis =>Actions

● Characteristics of report content

● Interdependencies of open processes

● P2P, O2C, End to End process (cross module)

● Details – Ad hoc – Dynamic/Agile – Visibility

● Technology

● Definitely in memory...

● Business Analytics