april 21 nike webinar final

7/31/2019 April 21 Nike Webinar Final

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2008 IBM Corporation

How An Innovative Organization Enhanced Its InvestmentIn SAP

Nike: A Case Study In Improving Planning AndPerformance Management


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IBM Cognos Business Intelligence and PerformanceManagement for SAP

Karen Kirby

IBM Cognos SAP Market Executive


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3

A Challenging Economic Climate

Industry Structure Can ChangeSignificantly in Crisis

8%

19%

15% 13%

11%12%

11%2.3x

1989 1990 1991 1992 19941993 1995

N= 5,400 companies globally.

Source: The Corporate Executive Board, Executive Guidance for 2009


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Optimizing Performance

Performance

Decision Making

Information

Data


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Growing complexity of business demands for information

Why?

How arewe doing?

What shouldwe be doing?

Analysis

Reporting

Planning

INTERNAL

DATA

EXTERNALDATA

ERP

MAINFRAME

EXTERNAL

BI LLI NG

HR

CRM

Dashboarding

Scorecarding

Budgeting


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Open, enterprise-class platform increases business

adoption and minimizes the burden on IT

Reach all informationreliably and timely

Deliver a complete,consistent view ofthe business

Adopt infrastructure

and adapt to change

Cost-effectivelyscale as user

communities grow


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SAPNetWeaver Portal

SAPNetWeaver Application Server

SAP NetWeaverBusiness Warehouse

IBM Cognos 8 SAP Certifications

Enterprise Portal iViews(EP-BP)

SAPNetWeaver Application Server

(J2EE-DEP)

OLAP BAPI interface

SAP BW (BW-OBI)

Summary of Capabilities

Display Cognos BI content within an SAP NetWeaver Portal

Single sign on and authorization using SAP security

Option to run IBM Cognos 8 on the SAP web application server

Use multiple versions, instances and all structures within the SAP NetWeaver Business Warehouseas a data source for IBM Cognos 8 content. (Patent Pending Next Generation Engine)

SAP NetWeaver Components


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Efficiency: Make better decisions faster

Faster more effective decisions from business user self service

Flexibility: 24/7 Performance Management

Faster reaction to change, less reliance on specialized resources.

Agility: Timely and cost effective execution

Instant on the fly modifications, alterations, and changes to reports, plans and financial modelswithout growing IT service backlogs.

Proven Capabilities: Performance Management today

Turn your SAP infrastructure into a competitive weapon by embracing and extending SAP data to

all business users.

Predictable: High value without hidden costs

Avoid ongoing custom development, data migrations, management and administration of multipleincompatible tools. Leverage your investment in SAP as a competitive weapon.

IBM Cognos 8 Performance Management for SAP


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IBM Cognos 8 Planning for SAP

Cognos 8 Planning: a finance-managed planning, budgeting, and forecasting

solution that supports driver-based plans, rolling forecasts, involving all the

right people as frequently as needed.

Flexible Driver-based Planning

High Participation/High Frequency

Modular

Distributed Global Administration Real-time workflow - enables superior collection, control & collaboration


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Deliver trusted informationwith conformance,compliance and cost-

effective scale

Drive effective,auditable processes

that lead to better

business outcomes

BI and Performance Management Built for All Times

Aligning Finance, Operations, and IT


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IBM Cognos 8 - Differentiators

Unified Platform for Performance Management Lower TCO for development and maintenance

One solution to learn, one place to go for any Performance Management capability

Consistent Solution Roadmap Focused on Innovation Develop today without fear of future redevelopment requirement

Patent-Pending Integration with SAP NetWeaver

Optimized access to SAP NetWeaver BW

Maximized leverage of existing structures and

BEx queries

Data Source Agnostic

Broad heterogeneous application and data support Flexibility to adapt to evolving infrastructure landscape

Business User Self-Service

Increases business agility

Reduces time to decision


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SAP Insider Events

Customer Date Time

Tellabs February 26, 2009 Available for replay on

the SAP Insider siteFirst Energy March 19, 2009 Available for replay on

the SAP Insider site

Nike April 21, 2009 11 AM 12 PM EST

Customer Webinars (registration is required)http://webinars.sapinsideronline.com/index.cfm?session

Other Events

http://www.sapinsideronline.com/events.cfm?session

Event Dates Location

SAPPHIRE May 12 15, 2009 Orlando, FL


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Cognos on SAP User Group

Pre-requisites:

Existing Cognos software customer

Mandatory Non-Disclosure agreement

For additional information contact [email protected]

Meetings Dates Location

First Energy March 31, 2009 Akron, Ohio

Cognos Forum May 12, 2009 Orlando, FloridaDisney August 4, 2009 Burbank, CA

US Army ARDEC November 2009 New Jersey


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Case Study: How Nike Is Using IBM Information ManagementTools To Improve Planning And Performance Management

Ron Duckworth

BW/BI Integration Director

Nike, Inc


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What Well Cover

Introduction

Landscape/History

Planning and Reporting

Inputs

Planning

Reporting

Solutions/Success/Next Steps

Q&A


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Nike Inc. Profile

Corporate headquarters in Beaverton, Oregon, USA 30,000+ employees worldwide

$18.5B Revenue


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What Well Cover

Introduction

Landscape/History


Inputs

Planning

Reporting


Q&A


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NIKE System Landscape

SAP is NIKEs strategic partner for ERP and BI

One of SAPs largest SAP R/3 Apparel Footwear Solution clients

NIKE runs 50+ countries on a single code two box instance Large BW installation Finance over 6TB with 600+ users

SAP : NIKE jointly developed SAP Netweaver solution for direct suppliermanagement.

Cognos EP chosen over BPS and IP

Business looked for top-down driver-based tool

Business needed flexible solution


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Nike Cognos landscape

Cognos

Planning (CP) 8.3 (Production)

Used CP for 4+ years, around 40 Models 350+ Planning users, primarily Finance

Two NT Server instances on MS SQL USA & Europe

BI 8.3 (Production)

350+ users against PDM and SAP-BW

Cognos Solutions developed with Cognos and Cognos partners


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Where weve been

The focus since 2004 has been to design, implement, stabilize, and improve our existingfinancial planning processes:

2005 2006 2007 2008 2009 2010

Quarterly Landing Estimates

3 Year Strategic Planning

Headcount Planning

Working Capital Planning

CAPEX Planning

Category Planning


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Nike is progressively building its Cognos Planning footprintmodule by module to meet its planning process

Global CSR

EMEA 3 YrApplication

Category

Planning

Targets

Demand Creation Capital

Headcount

Three Year

Strategic Plan(CSR)

Product Plan24 month

(Six Season)

Annual

Targets& Budget

Orders(Futures &Backlog)

Futures

Backlog

Forecasts(Monthly) LandingEstimate

LandingEstimate

In Excel

& SAP

R/3 at

current

time


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Nike leverages Cognos EP for three key situations

Driver Based Planning

What If capability

Leverage instant currency translation and consolidation

Deployed to multiple users around the globe using Contributor Typically build data requirements in under five business days

Global planning applications such as 3 Year Planning and Target Annual Budget setting

Example: EMEA Planning Application

Data Collection

Collect data / information quickly not held in SAP Replace MS Excel databooks and emails.

Headcount statistics, Capital Planning templates, Quarter End Landing Estimates prior to fiscalclose.

Example: Demand Creation Model

Detailed Business Unit Forecasts (short & long range)

Standardize multiple inputs across multiple time horizons to consistent output

Summary feeds summary inputs to Corporate templates

Example: USA Footwear Model


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Strategic PlanningMonthly Forecasting

& Annual BudgetsOther Planning

Activities

Financial Planning Processes Utilizing Cognos

Planning Solution Current State

3 Year Corporate StrategicReviews (annual & quarterlyviews)

Corporate Planning Model

EMEA Strategic Planning

Americas 8 Season Forecast

Golf Bible

Corporate Target Setting

Headcount Planning CAPEX Planning


10 Year Scenario Planning

Global FW 8 Season

Revenue Forecast

Futures: Gross to Net

Backlog Reporting

Americas Demand Creation

Planning

Quarterly Landing Estimate

10 Year Cash Planning

INITIAL SCOPE


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Strategic PlanningMonthly Forecasting

& Annual BudgetsOther Planning

Activities

Financial Planning Processes Utilizing Cognos

Planning Solution Future State

3 Year Corporate StrategicReviews (annual & quarterlyviews)

EMEA Strategic Planning

Americas 8 season forecast

Golf Bible

Corp Target Setting

Headcount Planning

CAPEX Planning Working Capital Planning

10 Year Scenario Planning

Global FW 8 seasonRevenue Forecast

Driver-based models alignedacross like businesses:

Wholesale Business Model(FW, AP, EQ)

Licensed Business Model

Retail Business Model

All models include:

Rev/Cogs Planning

Demand Creation Planning

Functional OverheadSpending


Investment / Project Planning

Quarterly Landing Estimate

10 Year Cash Planning

NEW


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Solution being considered leverages the reports already developedusing our current suite of tools

Planning Analyst / Power User - Use IBM Cognos 8 BI for direct access on the Planning Datamart

Actuals Analyst / Power User Use existing SAP NetWeaver Business Warehouse reporting tool

suite


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What Well Cover

Introduction

Landscape/History


Inputs

Planning

Reporting


Q&A


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REPORTINGINPUTS PLANNING


Getting data intoCognos for

Planning

Reporting of planand actuals data for

analysis


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History

Manual excel uploads (decentralized)

SAP Netweaver BW queries loaded via copy/paste

(centralized)SAP Netweaver BW queries loaded to SQLpublished to CP

Tested CP integration with SAP Netweaver BWExcel add-on for Contributor

Cognos BI running on SAP Netweaver BW

INPUTS


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Key Learnings

Align masterdata dimensions Minimize manual data loading Centralize the data staging required for planning Automate the data movement Reduce duplicate data storage

Flexible filtering framework Maximize performance

INPUTS


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History

Driver Based PlanningData collectionDetailed business unit forecasts (short & long range)

PLANNING


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Key Learnings

Focus on the regional requirements Create consolidation activities to roll regional models to

global models Enable the planning process to move from Forecast to

CSR to Budget to Forecast Excel enabled

PLANNING


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Financial Business Intelligence requires alignment of the three

key Finance processes

Reporting& Analysis

To deliver a world-class solution requires alignmentof Actuals (transaction data) with Plan (business planning data)

Reporting tools only effective if integrated

with Business Planning and Transactional Processing

BusinessPlanning

TransactionalProcessing &Consolidation

Reporting& Analysis

BusinessPlanning

TransactionalProcessing &Consolidation

REPORTING


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Key Learnings

Certified reporting enabled Ad-hoc capabilities Standardized reporting available throughout the

planning process Simple, easy to use experience

Maximize performance

REPORTING


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Solutions for these challenges have been identified,

but additional work is still required for success

Integration withSAP NetWeaver

Business

Warehouse

OutputsInputs

SOLUTIONS IBM Cognos 8 BI


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What Well Cover

Introduction

Landscape/History


Inputs

Planning

Reporting

There is no finish line

Q&A


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Key Successes

Target setting / scenario planning that provides:

Transparency of assumptions Version management & control

Limited IT dependence (quick turn-around for those ad-hoc urgentrequests)

Distributed model development allowing users to takeadvantage of capabilities of Cognos Planning

Instant consolidation of inputs & workflow mgmt

Minimal, if any, training required for Contributors


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Change is needed now because

Our current planning processes are not integrated across businessplanning timelines (seasons)

Our current planning processes are inefficient, inaccurate and nottimely

Planning the business through a globally defined category view inaddition to a geographic and product engine view increases the

number of dimensionsthis cannotbe supported by currentprocesses and technologies


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We will eliminate redundancies and inefficiencies by changing the timing

From separate timelines

across Finance and theCategory Game Plan

. . . to integrated timelines


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and both the frequency and level of detail in our financial forecastprocesses

Jun- 08 Jul- 08 A ug -08 Sep -08 Oct -0 8 No v- 08 Dec -08 Jan- 09 Feb -09 Mar- 09 A pr- 09 May -09

FA '08

HO '08

SP '09

SU '09

FA '09

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SP '10

SU '10

FA ' 10

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SP '11

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FA ' 11

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SP '12

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C

urrentFinance

P

rocesses

FY

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FY

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FY

11

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From detailed forecast

updates every month

to detailedforecasts only

quarterly

Jun- 08 Jul- 08 A ug -0 8 Sep -0 8 Oct -08 Nov -0 8 Dec- 08 Jan- 09 Feb- 09 Mar- 09 A pr- 09 May -09

FA '08

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ew

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We will standardize and align finance and operational planning processes

Financial Inputs & Outputs for Category Gameplan


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We will create profitability driver-based solutions:3 Year Strategic Planning

Revenue Drivers Financial MetricsCONSUMER

Sport Participation ratesMarket Size / ShareMarket GrowthPrice Points (Good, Better, Best)Frequency of Purchases (volume)Silhouette Trends

DISTRIBUTION

New DoorsExisting Doors Comp DoorsExisting Doors Door ExpansionAverage Sales per doorUnits per doorDiscountsMarketing Spend (retail fixtures, co-op)

By CategoryBy Country

By CategoryBy CountryBy ChannelBy Account (maybe)By BU

FuturesAuto ReplenishmentAt OnceCancellations----------------------------Net Demand----------------------------

Discounts

ClaimsReturnsCloseoutsLicensee----------------------------Net Revenue----------------------------

Net RevenueRevenue Growth %

Cost DriversMACRO MARKET INDICATORS

Cost of OilLaborFXLocal for LocalDutiesRaw Materials

PRODUCT MIX

New Innovations% of Carry Over productAirfreight assumptions

Financial MetricsFOBDutyFreight In----------------------------Product Cost----------------------------

Product CostGPM%

By BU (maybe)

By CategoryBy RegionBy BU

ILLUSTRATIVE

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Focus on highest priority key drivers

Demand Creation DriversBRAND CONCEPT MAP

Initiatives (e.g. Cold Weather Pro,Nike +, World Cup)

Consumer Insights / TrendsRevenue Projections (CO-OP, etc)

SPORTS MARKETING

Existing Contracts (Terms)Potential New DealsRenewalsMajor Athlete / Term PerformanceBonusesProrations

Divestments

Financial MetricsRetail Brand MarketingAdvertisingDigitalBrand EventsPublic RelationsOther---------------------------------Brand Demand Creation---------------------------------

Base ExpenseBonusCompEvents-------------------------------Total Sports Marketing

-------------------------------

------------------------Demand Creation------------------------

Demand CreationDemand Creation as a % of RevenueDemand Creation Growth %

By CategoryBy CountryBy Medium

By CategoryBy RegionCommittedvs. PlannedIL

LUSTRATIVE


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We will create profitability driver-based solutions:Performance Mgmt Quarterly Updates

Focus on bookings & invoiced sales plus the related

costs to support the business

P&L Statemen t

Direct Indirect Fully Alloc

Revenue

Gross Sales

Discounts and claims

Net Revenue

COGS

Product Cost

Warehousing

RD&D

3rd Party Royalty

Other COGS

Gross MarginGross Margin %

Gross Pricing Margin %

Net Pricing Margin %

SG&A

Demand Creation - Sports Marketing

Demand Creation - all other

Operating Overhead

Total SG&A

Other (income)/Expense

EBIT

as % of revenues

Balance Sheet Direct Indirect Fully AllocInventory (DII)

In-line

Close Out

k

Seasonal Fiscal

Quarterly Forecast


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Benefits to the Business


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Question & Answer

Contact Information:

[email protected]


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Copyright IBM Corporation 2008 All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS ISwithout warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothingcontained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms andconditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they

will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBMs sole discretionbased on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, Cognos, theCognos logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Othercompany, product, or service names may be trademarks or service marks of others.

april 21 nike webinar final

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