building the consumer driven value chain - www · pdf filethe consumerdriven value chain ibm...
Post on 23-Mar-2018
227 Views
Preview:
TRANSCRIPT
The Consumer Driven Value Chain
IBM General Business, ASEAN
Building The Consumer Driven Value Chain
Raymond MoyRegional Segment Manager, Asean
© 2010 IBM CorporationPage 1© 2010 IBM Corporation
g g g ,Sep, 2010
The Consumer Driven Value Chain
Trivia This is a meat slicer made in 1924. It was sold to meat distributors.Which company produced it? IBM
CluesAlmost went bust in 1990’sHired a CEO from a biscuit co to rescue itCelebrating 100th birthday in 201150,000 patents to dateFortune 500 company5 Nobel Prize winners5 Nobel Prize winners5 most valuable global brands
© 2010 IBM CorporationPage 2
The Consumer Driven Value Chain
Agenda
Building The Consumer
CEO survey – Capitalizing on Complexity
The Value Chaing
Driven Value Chain Roadmap to a consumer driven supply chain
We can help you
© 2010 IBM CorporationPage 3
The Consumer Driven Value Chain
CEOs are confronted with massive global shifts in the New Economic Environment
14%10Mature markets retain economic powerConsumer demand, economic
Rapidly developing markets gain economic powerConsumer demand, economic
76%
Consumer demand, economic power and innovation skewed towards mature markets
Consumer demand, economic power and innovation shifting to rapidly developing markets
14%16%Small government, light regulationMove or return to unrestrained markets with limited state
Big government, heavier regulationGreater government involvement, more regulation and government
70%
16%17%Slow down or reversal of Continued globalization
ownership or regulatory reformg g
as a stakeholder in strategic businesses
67%globalizationIncreased protectionism, dominance of local interests and local requirements
Global capital flows, trade, access to markets, skills and knowledge
© 2010 IBM CorporationPage 4
q
Source: Q8 Which of these future scenarios for the next five years do you consider more realistic? Globalization n=1,515; Markets n=1,502; Government n=1,519
Not at all/to a limited extent To a large/very large extentTo some extent
The Consumer Driven Value Chain
Continued rise of technology as key external factor for CEOs
Th t i t t “ t l” f th t thThree most important “external” forces over the next three years
© 2010 IBM CorporationPage 5
Source: Q1 What are the 3 most important “external” forces that will impact your organization over the next 3 years? n=1,538
The Consumer Driven Value Chain
Standouts capitalize on complexity in three ways
C ti it i #1 l d hi lit• Creativity is #1 leadership quality• Drive change in the organization to
stay ahead of market and use of wide range of communication t l d t lstyles and tools
• Break with status quo of industry, enterprise and revenue models
• Simplify operations and products to
• “Getting closer to customers” is the single most important theme
• Better understand customer needs through collaboration and info sharingp y p p
better manage complexity • Use iterative strategies, make quick
decisions and execute with speed• Integrate globally, increase cost
g g• Exploit the information explosion to
deliver unprecedented customer service
© 2010 IBM CorporationPage 6
g g y,variability and exploit partnering to increase agility
The Consumer Driven Value Chain
“Simplification and standardization are “When things look very simple, you need key strategies that we have been using for several years to reduce existing and future complexity.”
Brenda Barnes,
to look for a competitive edge. When things are complex, you simplify to get the competitive advantage”
Graeme Liebelt, Chairman and CEO, Sara Lee, United States Managing Director and CEO, Orica Limited, Australia
© 2010 IBM CorporationPage 7
The Consumer Driven Value Chain
Consumers are becoming SMARTER – increasingly g g yinformed, empowered, and demanding
Consumers expect choice and flexibility
They want service whenever, wherever,
however. They set the terms on how they will
interactConsumers demand
timeliness and relevance
Consumers are increasingly informed and
knowledgeable
They demand interactions are relevant to their shopping
relevanceknowledgeable
Armed with information relevant to their shopping occasion and fulfilled in a
timely manner
they seek to maximize personal value
© 2010 IBM CorporationPage 8
The Consumer Driven Value Chain
It’s the product/service, the difference, the experience, the appeal ………the timeless brand
Based on an enduring idea:
Competition Happiness in a bottle
Thinking differently
Innocence Exhilaration
Differentiated Performance Iconic product Steve Jobs’ Storytelling German by:
pethos
y gengineering
Experienced through:
Nike’s advertising
Social interactions
The design of its products
Theme park and movies
The car: The ultimate driving machine
Appeals to: The athlete Optimist The contrarian The child The adventurerin all of us in all of us
© 2010 IBM CorporationPage 9
The Consumer Driven Value Chain
Market ForcesThe Value Chain of Producer or Distributor
Market ForcesBanks
$
SuppliersBusiness Partners
ters
Value Chain Partners
on -
Dis
ast
ManufacturerFactory
Central Dist Centre Regional Dist Centre Internalvalue
d –
Infla
tio
Distributor
valuechains
Dem
and
Wholesaler
Retailer
Hypermart Supermart
Retailer
Consumer
© 2010 IBM CorporationPage 10
Economy – Competition Opportunityor
Threat
The Consumer Driven Value Chain
How it is possible to have Smarter Value Chain? The time is right, it’s time Interconnected
Aggregate vast amounts of structured
InstrumentedIntegrate the physical and
f
IntelligentActionable
information. Sense
we must.
structured (unstructured) data from consumers,
customer, partners, social
information aspects of the supply chain in
order to optimize product lifecycles
Sense opportunities & threats. Analyze
trends & patterns.
+ + =media & within the
company.
p yRespond &
create value.
+ + =An opportunity for consumer products systems
to think and act in new ways.
Drive profitable growth through
Deliver innovation driven by consumer
Operate responsibly with
© 2010 IBM CorporationPage 11
improved collaboration
insights full supply chain visibility
The Consumer Driven Value Chain
External sourcesSocial Media – Discovering what influences your brand
© 2010 IBM CorporationPage 12
The Consumer Driven Value Chain
KRAFT FOODS - Branding
The need
"The work we did with IBM fundamentally changed our business strategy and how we looked at our own
Kraft recognized that there was a whole segment of consumer feedback that was going un-monitored. That segment was user generated content on the web (often referred to as Web 2.0), in Blogs, message boards and other social networking sites. Seeking a better understanding of consumer
brand". “..been the most successful
campaign for Vegemite to date, and that's saying
sentiment ahead of a potential product update, Kraft decided to go on a work with IBM research discovery solutions to identify what was on “The Top fo the minds” of its Vegemite customers worldwide.
The solution date, and that s saying something over 85 years of history.
- Simon Talbot Kraft Australia
The solutionIBM Global Business Services in conjunction with IBM’s Corporate Brand and Reputation Analysis (COBRA) analyze unstructured data across Social Media domain to provide insight and root cause analysis as well as statistical tracking and advanced alerts to events This was the first COBRAstatistical tracking and advanced alerts to events. This was the first COBRA engagement in Australia and was a huge success for IBM and Kraft. The analysis COBRA performed has led to a change in Kraft’s marketing strategy for Vegemite.
The BenefitsThe COBRA analysis helped Kraft Australia identify the strong personal identification that its customers had for Vegemite
Th k ti i lt d i i ifi t i i l ithi
© 2010 IBM CorporationPage 13
The marketing campaign resulted in a significant increase in sales within the first two months, which was the most successful campaign in 85 years.
The Consumer Driven Value Chain
My Coke Rewards – Consumer connection thru social interaction in social media
© 2010 IBM CorporationPage 14
The Consumer Driven Value Chain
Meat products tracking thru RFIDThe SolutionButchers at Germany's METRO Future Store do more than dress roasts. They also apply RFID smart labels in a solution designed with IBM
p g
RFID smart labels in a solution designed with IBM. Each package is identified and recorded when it is placed into the refrigerated display case,
which is fully equipped with readers and antennas to scan the label of each product as it goes in, as it sits on the shelf and as it goes back out with a consumer.
The benefitThe information helps the store maintain fresh products, control the environment in which they are stored and manage inventory levels with real time sales dataare stored and manage inventory levels with real-time sales data.
Last year, Research and Markets reported that 900 billion food items will be RFID tagged by 2015, and 824 million livestock will have more sophisticated tags.
© 2010 IBM CorporationPage 15
The Consumer Driven Value Chain
Shrimp products traceability from Farm to Table
RFID is well suited because it is water resistant unlike other technologies such as
p p y
resistant, unlike other technologies such as barcodes.
Trace the entire production process -receiving, cleaning, beheading, sizing,
Shrimp Producer, Thailand
peeling, cooking, freezing, packaging and storage.
RFID placed in trays.Details from documents issued by theDetails from documents issued by the
Fishery Department would be recorded in a database and in an RFID tag.
Guarantee the safety of it products for the European market.
Traceability solution for the food industry, tracking product safety, quality and origin at any point across the entire supply chainany point across the entire supply chain, from farm to table.
Enables retailers and distribution companies to gain automatic access to food
© 2010 IBM CorporationPage 16
safety and traceability information
The Consumer Driven Value Chain
Thailand Chicken & Pork Producer – Premium price with prelevant information to consumer
Sell at 20-30% $$$ higher
Enables customers who buy fresh chicken
Avian/Bird Flu
yand pork stores in Supermarket chains to trace the products
Consumers can discover where products came from the standard farm and productioncame from, the standard farm and production processes through which they passed, the type of goods, farm name and location, age, gender, standard certification, veterinarian, production date and expiry date.
All this from existing Spy on Me kiosks set up to make customers more confident about the quality and safety of the food
© 2010 IBM CorporationPage 17
the quality and safety of the food.
The Consumer Driven Value Chain
GS1, UK Food Supply Chain Research Project
The needIncreasing competition -> growing demand for improved business insight -> build smarter business systems & drive improved decision-making. Address knowledge gap in the grocery industry as retailers and suppliers generally do not have a complete view of the accuracy of their data -> lead to hidden costs within their supply chain and a lack of awareness of the business opportunities.
The solutionIBM collaboration with GS1 UK, independent global supply chain data standards and solutions organization, provide analytical services and technology services for UK Grocery Industry Data Crunch Project ("Data Crunch Project"), which aims to assess the business impact of supply chain data inaccuracies.
The benefitDetailed analysis of product data provided by the participating grocery retailers
© 2010 IBM CorporationPage 18
and suppliers. Industry business impact assessment.
The Consumer Driven Value Chain
Roadmap to a building a Consumer Drive Value Chain
Banks
$
SuppliersBusiness Partners Foundation - Integrating the internal
value chain with industry specific ERP platform & business model that delivers:
Operational excellence thru
$ Partners
Value Chain Partners
1
Operational excellence - thru automation of transactional back-end business processes in Financials, Production, Sales, Procurement & Inventory management This will help
Manufacturermanagement. This will help executives focus on customer centric agendas instead of administrative transactions –less “fire-fighting”, more tactical actionsDistributor actions.Integration of people & processes to improve internal collaboration across all relevant departments, eliminating
Distributor
WholesalerHypermart Supermartp , g
inefficient processes & costly mistakes.Improvement of delivery quality thru visibility of client’s needs in the entire order cycle
Retailer
Consumer
© 2010 IBM CorporationPage 19
the entire order cycle.Consumer
The Consumer Driven Value Chain
Roadmap to a building a Consumer Drive Value Chain
Banks
$
SuppliersBusiness Partners Integrating the entire value chain
that provides total value chain visibility, platform for partner & customer collaboration, building of information assets hence reduces operational
$ Partners
Value Chain Partners
2
pcosts & improves partner relationship significantly.
Synchronize demand & supply accurately & working towards closing the gap between
Manufacturerclosing the gap between planning & execution, hence reducing inventory to fulfill demand with high degree of client satisfaction.
Distributor Building strong partnerships between suppliers, customers & consumers by mutual sharing of information.Traceability of goods across the
Distributor
WholesalerHypermart SupermartTraceability of goods across the value chain to ensure safety & quality.Reduce transactional costs with suppliers & distributors thru
Retailer
Consumer
© 2010 IBM CorporationPage 20
ppprocess automation.Consumer
The Consumer Driven Value Chain
Roadmap to a building a Consumer Drive Value Chain
Banks
$
SuppliersBusiness Partners Business insights which creates
value & growth, sensing opportunities & threats by aggregating vast amounts of data (from consumers, customers, partners, suppliers, social media) &
$ Partners
Value Chain Partners
3
p , pp , )turning it into actionable information to create value.
Insights to consumer demand, action on accurate execution of inventory levels to distributors
Manufacturerinventory levels to distributors.Insights to inefficiencies (in value chain), action on refining processes in the value chain.Insights to brand perceptionDistributor Insights to brand perception, action on refining customer experience.Insights to consumer needs, action on development of new
Distributor
WholesalerHypermart Supermartp
or improvement of products/services.Insights to market segmentation, action on strategies to address these
Retailer
Consumer
© 2010 IBM CorporationPage 21
strategies to address these segments (eg price).
Consumer
The Consumer Driven Value Chain
We can help.IBM can help the Consumer Products Producers or Distributors develop a roadmap towards a Consumer driven value chain, a competitive weapon to sense with speed to market opportunity or external threat by integrating IBM products services and businessmarket opportunity, or external threat, by integrating IBM products, services and business solutions in ways others simply can’t match, so that it can respond with speed to create value.
This significantly helps increase growth, profitability & market share, generate cash for working capital & deliver an enduring brand. The journey is a long one & it needs to begin now.begin now.
Why IBM? IBM walked the supply chain transformation journey & tasted success beforebefore….
Began own supply chain transformation journey 1993Before: 30 supply chains costing $45B.After (in 2005):After (in 2005):
Supply chain helped gain market share, grow revenue & profit, improve cash flow & enhance customer satisfaction. Generated $600M in cash.Reduced cost by $6B
© 2010 IBM CorporationPage 22
Reduced cost by $6B.Improved sales productivity by 25%.
The Consumer Driven Value Chain
IBM Consumer Products Solutions MapIBM Consumer Products Solutions MapISV
ERPSolution
SCM MES Traceability (PLM)Warehouse Advanced Planning
T T k
Strategy Systems Integration Application ManagementCustomer Driven Supply ChainShared Services
ERP SCM MESFin Proc Sales Prod HR
BIERP SCM MESConsulting
Partners
GBSRamco
Trace Tracker
Corp brand reputation
Acceval
Shared ServicesGIE Transformation
Fin, Proc, Sales, Prod, HRSupply ChainPLM
Advanced planningSupplier management
Performance Mgmt
ERP SCM MES
Sales & Ops Planning
Consulting
Software Master Data Integration
Integrated Information
Plant
Talent Mgmt Partner Collaboration Asset MgmtLotus Cognos Lotus Webshpere TivoliCognos/SPSS/Websphere/iLOG
SWG
reputation analysis
Sales & Ops PlanningDemand Driven ReplenishmentTrack Promotion Management
Software Master Data IntegrationConsumer InsightsCategory Management
PlantMaintenance
CollaborationKnowledge
sharing
Workforce Perf Mgmt & Analysis
B2B Collaboration
e/M-Commerce
STG
I f t t il bilitDynamic
I f t t
ServerSWG
StorageDynamic allocation
I f i Connectivity to integrate Infra mgmt
Biz Resiliency Network EUS OptimizationOptimizing
TivoliFast
iTS
Infrastructure availabilityto support supply chain activities
Infrastructure of processing resources as per appdemand
Information lifecycle mgmt
Connectivity to integrateinternal & external supplychain
Infra mgmt out-tasking
Optimizing infra to addresssupply chain needs
Fast secureddatabackup
Financing to improve working capital & cash flowTh h d f d j i li d
Financing
IGF
IT InfrastructureManaged Business Process
Finance Procurement HROutsourcing
Thru stretched payment, fund projects as cost savings are realized
SO
© 2010 IBM CorporationPage 23
Finance Procurement HR
The Consumer Driven Value Chain
© 2010 IBM CorporationPage 24
The Consumer Driven Value Chain
© 2010 IBM CorporationPage 25
top related