Summit 2016

Fred Hermans & Sean Culey

10-11-2016

Short history of the Castle:

• April 1st 1852: Jasper Hendrik Baron vanZuylen (Van Nievelt) commissioned to build thecastle. The so-called ‘first stone’ can still befound in the North-West corner of the castle.

• This castle is a National Monument andbelongs to the top-100 Dutch UNESCOmonuments.

• The Castle took the name from the Dutch hero‘Jan van Schaffelaar’. In order to save the livesof his comrades, he jumped off the Barneveldtower in 1492. The owners from this castle werefar descendants of Jan van Schaffelaar andwanted to honour his act of self-sacrifice.

Welcome at Castle De Schaffelaar

• 12.15 Opening by Fred Hermans, CEO of Every Angle

• 12.30 The Future of Every Angle – Business Transformation

Expert Sean Culey and Product Roadmap presentation by Fred Hermans

• 14.00 BPI Award introduction by Jacques Adriaansen

• 14.10 BPI Award pitch by Hitachi

• 14.20 BPI Award pitch by Cargill

• 14.30 Voting for the winner of the BPI Award

• 14.45 Break

• 15.15 BPI Award Ceremony

• 15.30 Breakout session 1

• 16.30 Breakout session 2

• 17.15 Closing by Jacques Adriaansen

• 17.30 Drinks, dinner and live music

Time table

“The world is moving so fast these days that the man who says it can't be done is generally interrupted by someone doing it.”

Elbert Hubbard

Exponential Supply Chain Evolution

Exponential Complexity

Most companies are not prepared…

The end result is what keeps CEO’s awake at night…

Lack of alignment of

management and

operational activities,

metrics and goals.

Disconnects between

functions causing

operational issues, poor

data integrity leading to

poor decision making,

causing service failures,

overstocks and waste.

Increasing level of

regulation, concern

about a lack of true

understanding of what’s

going on at a detailed

level.

Company Culture,

lack of autonomy &

empowerment,

misaligned purpose and

frustration.

Inability toEffectively

Execute Strategy

Control of Value Chain

Performance

Understanding and Controlling

Regulation / Compliance

Attraction, Retention and

Engagement of Talent

Sources:‘The 3 things CEO’s worry about most’ – Harvard Business Review March 16 2015

‘What’s keeping CEOs up at night?’- PwC June 05 2015

‘What Keeps CEOs Up at Night and What Are Their Top Priorities?’ – US Dept. of State presentation, Jon Spector, President and CEO of the Conference Board, New York, NY Feb 24, 2015

If you don’t know where you’re going...

Difficult to align innovation to an unclear strategy

This mindset cascades across the supply chain

ENABLE

(HR, IT, DATA, T&C's, FI, CO, H&S)

Reliable

Low

cost

Quick

Cheaper

Suppliers

PLAN

MAKE

MAKE

Smaller range,

consistent

demand

Less

Complexity &

Longer Run

Times

Less Working

Capital and

SC Costs

PLAN

DELIVER

DELIVER

More

Choice,

shorter lead

times, more

Innovation

Innovative

Bigger

Volumes

The Command & Control disease…

Directors manage

(instead of directing)

Managers supervise

(instead of managing)

Supervisors do

(instead of supervising)

Doers freeze (instead of doing)

Constrains. Demotivates. Slows.

Managing a level too low:

Unclear Purpose and Strategy

One Size Fits All approach

Bureaucratic & misaligned Rules,

Procedures, Systems & Processes

Lack of Ownership & Accountability

Multiple, Misaligned Measures and Targets

Frustrated Talent and Low Trust

If you don’t know where you’re going….

Doomloopof

Disengagement

“Gallup estimates that these actively disengaged employees cost the U.S. between $450 billion to $550 billion each year in lost

productivity.

Gallup ‘State of the Global Workplace’ study; 23 Sep 2013

Disengagement Costs

Gallup Workplace Survey Says 87% of Employees Not Actively

Engaged in Their Jobs- Forbes, 25/03/2014

Think

Differently

New Business Realities need new thinking…

Nicholas Copernicus

1473 - 1543

“To know that we know what

we know, and to know that

we do not know what we do

not know, that is true

knowledge.”

Heliocentric model

(Paradigm shift)

The Copernican Revolution…

Geocentric model

(Conventional wisdom)

Agile Model

(Paradigm shift)

We need a Copernican Business Revolution

Traditional Model

(Conventional wisdom)

The

Firm

The

Firm

Customer

Customer

First do the

Right Things…

…Then do the

Things Right

Unrecognized Needs

Known Desires

Base Expectations

First do the right things…The Customer Hierarchy of Needs

Evangelism

Loyalty

Satisfaction

AEIO: Aligned, Engaged and Innovative Organisations (TM) Sean CuleyEx-Customers

PRESERVE THE CORE VALUES

CONSTANTLY STIMULATE PROGRESS

Embrace the genius of the ‘AND’.Avoid the tyranny of the ‘OR’

MAKE PEOPLE HAPPY

MoviesTheme Parks

HotelsTV shows

Video GamesStores

Preserve the Core, Stimulate Progress

20 Mile Marching: Disciplined Pushing of the Flywheel

Best

Customer

Experience

Customer

Widest

Choice

(Range)

Competitive

Prices

“Our vision is to be earth's most customer-centric company; to build a place where people can come to find and discover

anything they might want to buy online.”

Amazon’s Virtuous Cycle of Continuous Growth

Exponentially Changing Expectations…

Require Exponentially Changing Supply Chains…

But they deliver exponential results!

Increasing Pressure on Consumers to join

Prime – free delivery, music, video etc

Increasing Pressure on Sellers to use

Fulfilment by Amazon

Increasing Pressure on Competitors to

lower prices to compete

Increasing Pressure on 3PL’s through loss of business

from / to Amazon

Amazon’s flywheel is everyone else’s Vicious Circle

No matter how awesome the idea, it all comes down to how well it is executed…

High

High

Low

Low

Alig

nm

ent

Autonomy

Top Down Aligned Innovation

ChaosMicro Management

Boss

Director

Director

Strategy & Execution, Alignment and Autonomy

If your strategy is to be more agile, then your organisational structures need to be also…

Become ‘T’ Shaped

Develop the DNA of a digital organisation

Lessons from Amazon: The two pizza team rule..

Sell more

because of our

World Class

Reliability

'T' Shaped People in 'T' shaped, segmented Customer Value Chain Teams

ENABLE

(HR, IT, FI, CO, H&S, QM, PM)

We Value

Reliable

Supply!

Reliable

Procurement

Reliable

Manufacturing

PLAN RELIABLE VALUE CHAIN

DELIVERSOURCE MAKE SELL

Reliable Data,

Quality, reliable

plans, inventory

levels etc

Reliable

Suppliers

Reliable

Planning

Reliable

Delivery

Segment into Cross-process Customer Value Teams

Alignment

• Less politics and misaligned agendas

• Value Chain team all on the same page.

• No miscommunications, misaligned priorities or key metrics

Clarity

• Clarity of customer value proposition

• Clarity of strategic direction, priorities, lead times, issues and actions

• Clarity of individual and team measures and contribution

Focus

• Team focuses on reduced number of accounts & products

• Smaller teams work much better together

• Faster identification and resolution of issues

“Zara is possibly the most innovative

and devastating retailer in the world.”

- Louis Vuitton Fashion Director, Daniel Piette

Agile 'T-shaped' teamsneed

Agile 'T-shaped' Tools!

To gain some form of insight into what is actually going on, I.T. departments either:

Built a Business Warehouse

• Time consuming to develop

• Relatively inflexible

• Changes are expensive

• IT is a bottleneck

• Users are constrained to certain cubes

Invest in data visualisation tools

• Requires significant data staging and curation

• IT needs to build and manage the data set

• Doesn’t understand configuration –extract and present

• Lack of insight in data – still reports

Most solutions end up being less magical than expected

What was

promised

What it

required

How it

ended up

Most BI tools = analysis of planes that have

already landed

It’s hindsight; lag measures.

You Cannot Control What You Don’t Understand…

Need to understand

this…

…before achieving

this

UNDERSTAND CONTROL IMPROVE INNOVATERoot Causes of

Issues, Losses and

Disruptions

Business

Performance

New

Business Models

Data integrity,

compliance, human

error, schedule

adherence, process

conformance issues…

Service levels, Inventory

control, supplier

performance, plan

adherence, compliance,

data integrity…

Customer retention,

Operating cost, revenue,

margin, risk prevention,

integrity, cashflow…

Redirect time and

cash from waste to

innovation

Process

Performance

UNDERSTANDING & CONTROL

IMPROVEMENT &

INNOVATION

Embrace the genius of the ‘AND’

It’s not good enough to know that a flight is going to be late…They need to know how late, and what the impact is...

Will passengers

make their

connecting flights?

Will we need to

provide overnight

accomodation?

Do we need to offer

compensation?

Will luggage need

redirecting?

What we need is actionable insight…

The ability to understand and control what’s happening

to the planes in the air in time to take action!

What do ‘’Planes’’ have to do with ‘’Supply Chains”

SO

SO

SO

SO

SO

SO

PO

Another plant

PO

Shipment

WO

WOWO

WOWO

WO

WO

WOWO

WOWO

WO

WO

Landed Planes Closed + Paid Orders History

Planes to land/depart Open + Planned Orders Current + Future

You cannot control what you don‘t understand...

Need to understand

this…

…before achieving

this

UNDERSTAND CONTROL IMPROVE INNOVATE

Root Causes of

Issues, Losses and

Disruptions

Business

Performance

New

Business Models

Data quality issues,

human error, order status

and status, process flow

compliance…

Delivery Reliability, Inventory

levels, supplier performance,

plan adherence, compliance,

quality…

Customer Service, Cost-to-serve

Responsiveness, Revenue,

Margin, Working Capital, Cash

Flow, Risk and Waste

Redirect time and cash from

waste to innovation

Process

Performance

UNDERSTAND

ISSUES & ACT

Understand – The root cause

Purchase CustomerSupplier Production SalesRM FG

Issue:

Our Service Level (OTIF) to customer ‘x’ is terrible

Why?

Orders are

constantly

delivered short

Why?

Items are not available

to be picked in time to

meet the delivery date

Why?

Certain components in the BOM for

these products are constantly

unavailable in the required quantity

Why?

The suppliers of these

components constantly

deliver late

Why?

Constant schedule

adherence issues in

production on these SKU’s

Understand - Difference between Hindsight and Actionable Insight

Issue: Our Service Level (OTIF) to customer ‘x’ is terrible

DATA

• We have 100

overdue

purchase orders

INSIGHT

• 50 purchase orders contain

items that have sufficient

stock to meet current demand

• 45 purchase orders contain

items that have excess stock

or no demand planned

• 5 purchase orders contain

items that are contained on a

BOM for a production order,

for a finished product

contained in customer ‘x’ sales

orders

INFORMATION

• These are the

purchase orders

that are the

most overdue

‘ACTIONABLE INSIGHT’

• Reschedule out the first 50

• Cancel the 45

• Expedite the 5

Then work with suppliers to

understand and resolve the

structural issue causing their

poor delivery performance!

Why? – Because the supplier of vital components for these items constantly delivers late

Question: Are there any purchase orders that may cause future service issues?

Do we have

enough

resource

coverage?

How much

money have we

lost due to

misallocated

discounts?

Are we buying

things we don’t

need? Can we

delay any

purchases?

What is

causing

backorders?

Un

de

rsta

nd

Issu

es a

nd

Ac

t

What is the

likely service

level of open

orders?

Do we have any

bottlenecks affecting

our ability to supply

current & future

demand?

Do we have

enough

incomping

supply?

What purchase

orders will affect

customer service

if they are late?

Will our assets

be operational

when we need

them?

How much

cash is tied

up in excess

inventory?

Are we

retaining our

best people?

How accurate is

our master and

transactional

data?Are we exposed

to any

Segregation of

Duty risks?

Plant

MaintenanceSupply ChainProcurement Finance People

Risk &

ComplianceMaster DataOrder to

Cash

Understanding .............. by all personas across all processes

CONTROL

PROCESSES

UNDERSTAND

ISSUES & ACT

IMPROVE

OUTCOMES

• CUSTOMER SERVICE

• RESPONSIVENESS

• WASTE

• INVENTORY (WORKING CAPITAL)

• COMPLIANCE

• COST-TO-SERVE

CONTROL

PROCESSES

UNDERSTAND

ISSUES & ACT

Air Traffic control vs Business Control

Every Angle

Control Towers

Landed Planes Closed + Paid Orders Planes to land/depart Open + Planned Orders

- Service

- Inventory

- Data Quality

- Waste

- GRC

- ….

Gartner’s Bi-Modal Approach to BI

IT:

Data Reliability,

Governance and

Control

BUSINESS:

Flexibility, agility,

self-service

Past Present

Content and schedule is

predetermined and pushed to the

customer on one device.

The maker is in control.

Customer is in control.

They decide what they watch,

where, when and how.

The Every Angle Software Suite

PUSH to

other

systemsUSER

INTERACTION

Business Suite

Any DB

DATA

ACQUISITION

model serverCONTENT/

DATA

ENRICHMENT

+

4 core USPs

The 3 “Concerns/Questions’’ most received about Every Angle

Every Angle is not real-time

Every Angle is SAP only

Every Angle is not necessary any more after S4 HANA

1

2

3

Concern 1 – Every Angle’s position on real-time

Real-time

=

blurred image &

constantly moving target

Near real-time

=

precise understanding

Concern 2: Every Angle’s position on SAP only

(Operational) Business Process Execution

Datawarehouse

NON SAP

Transaction

systemsERP

Transaction system

‘’BI-environment” for Enterprise

Performance Management

Concern 3 – EA is not necessary any more with S4 HANA

Topic Every AngleS/4HANA Embedded

analytics

Analysis on detail level, Operational Analytics YES YES

Enticing graphical presentation YES YES

Fast, in-memory database YES YES

On–request, dynamically build up of statistics YES YES

Cross-process Built-in intelligence YES LIMITED

Business users create their own (ad-hoc)

reports/analysisYES NO

Real-time R2018 YES

Every Angle Software Suite – vision for the future

Feed

EA-data

to BI

Replicatedmodel server

R2016/7

ECC

Any DB

incl. HANA

CONTENT/

DATA

ENRICHMENT

USER

INTERACTION

DATA

ACQUISITION

Feed EA-

data to BI

Replicated modelserver

R2018/x

RealtimeSQL-modelserver

ECC

Any DB

incl. HANA

HANA

S4/HANA or

ECC on

HANA

Other data

sources

Other data

sources

Extract

Enhance the

Content

Simplify

User

Experience

Advance

the

Architecture

Every Angle Virtuous Cycle of Innovation

customer