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Driving a new age of connected planning

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Page 1: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

Driving a new age ofconnected planning

Page 2: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

2

1. Need to Connect . . .

.

Page 3: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

Exponential Supply Chain Complexity

Pre 1970s

1970s

1990s

2000s

• Ship & Rail• Inventory Mgmt• “Push”

•MRP & spreadsheets Invented• First WMS & DC• Truck and Air Freight

• ERP Invented• Outsourcing• Large MOQ• Co-planning• SCOR

• Information flow• SC Services• Demand Driven networks• Function-specific Tools • Small MOQ • Design and Service• Digital, Omnichannel

Page 4: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

Collaboration Across The Network

Raw Material Suppliers

ContractedProducers

3rd Party Logistics

DistributionCenter

Warehouse Customer Channel

Customers

Production Facilities

3rd Party Logistics

Channel Partners

Page 5: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

EXECUTION

OrderManagement Purchasing StrategicNetwork

DesignWarehouseManagement

FactoryScheduling

TransportationManagement

DistributionOrderMgmt.

MasterScheduling

MaterialsManagement

Resourcescheduling

SKUProliferation

EscalatingVariability UnevenMarkets Demand

VolatilityLimitedSuppliers

DigitalDIsruption

ShortProductLifecycle RegulatoryChange Emerging

MarketsNatural

Calamities

SUPPLY CHAIN

PLANNINGCustom

REAL WORLD

Value Network Creation

Traditional Planning “Shock Absorbers”

Page 6: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

Typical S&OP / IBP “Solution”

ERP System

MES System

Transportation Management System

Warehouse Management System

MRP System

HCM Tool

Ad-hoc reporting and planning tools

Financial Planning system

CRM Tool

S&OP

ManagementReports

DC / WMIInv Mgmt

MPS

Forecasting Tool

StrategicPricing

Supplier Collaboration Platform

OrderFulfillmentATP

Page 7: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

Business Decisions Increasingly Made Outside ‘Planning’ Applications

ERP CRM HCM Marketing WMS Mfg.TransactionalSystems

BW Essbase MDM BOBJ TableauData & AnalyticsTools

JDA APO HyperionPlanningApplications

Custom Point SolutionDecision Support

Day-to-day operations

Data Collection

Plan Systems of Record

Ongoing Analysis &

Collaboration

Execute against plan

Enable reporting

against plan

Enter the plan during each

period

Periodic decisions & assumptions

Strategy / Innovation Marketing Sales

Finance&

HR/IT/Assets/ Facilities

Supply Chain and OperationsDecision Makers

Page 8: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

Lowest Common Denominator is still …

70%of business users still

rely on spreadsheets for critical portions of

business 1 year after purchasing tool1

1Deloitte; Spreadsheet Management Not What you Figured

Page 9: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

Lowest Common Denominator is still …

2Adapted from Rebus; The Real Cost of Manual Analytics in the Supply Chain

88%of spreadsheets contain formulaic or link errors3

Page 10: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

5%of an entire

organization’s available time is spend on

“updating or using” advanced supply chain

spreadsheets2

Lowest Common Denominator is still …

3Panko, Raymond R; What We Know about Spreadsheet Errors

Page 11: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

5%of an entire

organization’s available time is spend on

“updating or using” advanced supply chain

spreadsheets2

Lowest Common Denominator is still …

70%of business users still

rely on spreadsheets for critical portions of business 1 yr after purchasing tool1

1Deloitte; Spreadsheet Management Not What you Figured 2Adapted from Rebus; The Real Cost of Manual Analytics in the Supply Chain3Panko, Raymond R; What We Know about Spreadsheet Errors

88%of spreadsheets contain formulaic or link errors3

Despite advances in IT tools, 1% of revenue is spent inefficiently making decisions with inaccurate data for supply chain

Page 12: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

How do you spend your time?

70%Preparing Data4

30%Making

Decisions

4CrowdFlower – Data Science Report, 2016

Page 13: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

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Whiletherearemanyplanningsolutions,manyofthemstruggletoofferasuiteofconnectedplanningcapabilities

Today’sPlanningSystemLandscape

SignificantInvestmentRequirementsHeavyupfrontcosts,waterfallapproaches,andlonglead-times/effortbeforegettingupandrunning

SolutiontoProcessDisconnectsDifficult/unintuitivesolutionsrequiringthebusinesstoadapttothevendor’swayofdoingthings

LimitedCapabilitiesInadequatesupportforconnectedplanningwithinandacrossbusinessfunctionsandlackofanalytics

Sub-OptimalCustomSolutionsorXLSSincetheycan’tfindtheperfectsolution,manysettleforhomegrownpointsolutionsorExceltools

ProcessesAreNotStandardizedPointsolutionsandExcelmakeiteasyforsilostodoittheirwayandinhibit“leadingpractice”standardization

Disparate,FragmentedToolsConnectedplanningisneverattempted,muchlessachieved,andmyriadofsolutionsleadtosystemlandscapeexplosion

CommonChallengeswithPackagedSolutions

CommonResponses

Page 14: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

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2. Get Connected . . .

Page 15: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

What is connected planning?

Thenewwayconnectedplanning

Anewwaytorunyourbusiness

Across one department or area

Across the company

One business processSingle, secure source of planning and decision dataData

People

Plans

Greater collaboration, deeper insights, faster alignment

Dynamic, continuous planning for any area of your business

Page 16: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

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OrganizationalSilos

• Lackofvisibilityofplansacrossfunctions• Legacykingdomswithlimitedsharingofdata

Flexibility• Dynamicchangesandvaryingtimeframesforproductplanning• Difficulttobuildflexibilitytocoverdifferentplanninglevelsordiversecategories

WorkFlow• Differentplanninglevels,horizonsandcycletimes• Inabilitytoquicklychangeplans,performwhat-ifs,flowchanges

Data• Dataavailability,inconsistencyandqualityissues•Multiplesourcesofdatachallengingtoreconcile

Technology•Manuallyintensivetocoordinate,consolidate,andsharedata•Multiplepurposebuilttoolsthatcannotbealigned

WhyisConnectedPlanningSoUnattainable?

Therearefivekeybarriersthatneedtobeaddressed:

Page 17: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

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ConnectedPlanning– FundamentalDifferences

IntelligentCapabilities

FlexibleBuild&ModifyCapabilities

Anaplan

§ Cloud-based,in-memoryengine- real-timeplanningatscale§ Intuitive,rolebasedspreadsheet-likeuserexperience

§ Automatedrecommendationstoaccelerateplanningprocess§ User-friendlymanagementandin-modulescenarioplanning

PackagedSolutions

§ Slowtechnologiesthatdonotalwaysreflectreal-timechangesacrossbusinessunits

§ Modificationsareoftenlostorleadtoduplicated,inaccurateinformation

§ Limitedadvancedandpredictiveanalyticscapabilities§ Limiteddashboardsandexceptionmanagementlogic

StandardReports

§ Allreportsupdateinreal-timebasedonchangesmadewithinplanningmodules

§ Easy-to-developadhocreportscomplementstandardreports

§ Reportingislimitedornon-existentinthesolution§ Reportingisadhoc/individualized§ Tendencytodropintoxls tomarrymultipledatasets,

drivingeffortanddegradingtrust

ConnectedSolution

§ ModelsandreportscanbemodifiedspecifictoeachBU/division/geographywithoutdisconnectingplans

§ Aggregationcanbedoneacrossmultipleplansanddimensions(likeaccount,category,andproductattributes)

§ Platformsaredisparateand/orbusinessunit-specific,limitingcross-teamintegration

§ TendencyformanytostilldoheavyliftinginExcelorcopy/pasteintothesolution

Page 18: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

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§ Mobile

§ Collaborative

§ Cloud-based

§ Scalable

§ Processingpower

FINANCIALS OTHER

HRCRMERP

PLM

§ Real-time

§ Userdriven

§ Connectedacrosstheenterprise

§ Modeling&PredictiveCapabilities

FINANCE

WORKFORCE

MARKETING

SALES

SUPPLY CHAIN

MERCHANDISING

Integrateandconnectmultipledynamicdatasourcesinreal-time

Infuseanalyticalcapabilitiestodrivebetterplanningthatmatchesdemand

Collaboratewithinandacrosschannelsandbusinessfunctions

ConnectsingleversionofthetruthforplansacrossfunctionsandtowhichtheCompanyisexecuting

Dynamicallyconnect,reconcile,andtrackplans(e.g.,topdownandbottomup)

Reduceoreliminatemultipleplanningsolutionsandofflinespreadsheets

Aligne

dandLinkedConnectedPlanningBenefits

Page 19: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

Proven Benefits of Connected Planning

Speed Agility Visibility

Uncovered $15M in “missing” inventoryHigh Tech Manufacturer

Reduced Planning Cycle Time 80%(2 wk to 2 d)Food & Beverage Manufacturer

Increased OM capacity by 150% in 8 weeksHigh Tech Manufacturer

Reduced functional FTE requirement for impacted processes by 40%High Tech Manufacturer

Reduced Order Processing Time 55% from 7 to 2 DaysHigh Tech Manufacturer

Effectively Planned 55% incremental demand via new bundlesHigh Tech Manufacturer

Enabled SKU-level, cross SKU bundles, planningHigh Tech Manufacturer

1.5% sustained increase in Net IncomeGlobal Apparel Manufacturer

Page 20: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

Connect - Streamline Decision Making

ERP CRM HCM Marketing WMS Mfg.TransactionalSystems

Business WarehouseMaster Data Mgmt

BOBJ TableauData & AnalyticsTools

JDA APO HyperionPlanningApplications

Day-to-day operations

Data Collection

Plan Systems of Record

Ongoing Analysis &

Collaboration

Execute against plan

Combine analytics &

decision making

Complement or replace

legacy tools

Ongoing analysis and decision making

Data People Plans

Strategy / Innovation Marketing Sales

Finance&

HR/IT/Assets/ Facilities

Supply Chain and OperationsDecision Makers

Page 21: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

How could you spend your time?

70%Making Decisions

4CrowdFlower – Data Science Report, 2016

30%Preparing Data

Page 22: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

Brand, Portfolio, Platform Planning

Contrib. Margin Analysis

Commercialization& Ramp Planning

ProjectPlanning

ResourceConstraint Mgmt

DemandPlanning

Forecasting(Multi-method)

Demand Sensing& Shaping

Collaborative Planning & Fcst

Merch. & Assort. Planning

Supply Planning

Capacity Planning

Inv. Planning & MEIO

Dist. & Network Planning

Capable to Promise

Product Planning

Demand Management

S&OP/ IBP

Supply Chain Solutions

TradePromotion Mgmt

Best Practice Implementation / Roadmap

Connected Planning Solutions for Supply Chain

NPI / EOL / Cannibalization

S&OP Inventory & Service Policy

What-If Analysis

Margin Management

Scenario Planning

Supply Management

Production Planning

KPIs & Reporting

Page 23: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

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Anend-to-endprocessandsolutiontoconnectacrossalldimensionsandbetweenallfunctions

FinancialPlans

Strategy&Hindsight

CategoryPlans

AccountPlans

DemandForecasts

PLM

AssortmentPlans/PDLinesPlans

POs

Size/Pack

Promo&MDPlans

BuyPlan

Sourcing

SpacePlans

SupplyChainPlans

Allocations

FinancialTargets

MarketingPlans

MasterData

IllustrativeFootprint

OTB

Replenishment

Pre-Season In-Season

Clearance

AnaplanEnabledProcessInput LinkedSystemMultipleConnections

ConnectedPlanningFootprint

Page 24: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

Fast

Focusedaroundshort,quickreleasesdelivering

rapidvalue

Iterative

Foundationstakeformearly,allowingforiterativerefinement

Collaborative

Focusedoncustomerenablementthroughout

thejourney

What does an Anaplan implementation look like?

Page 25: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

Accelerating Success

App

App App App App App App

Single Use Case Multiple Independent Use Cases

Multiple Connected Use Cases

Customer LeadingAnaplan / SI Support

Anaplan Journey

Delivery Model

Evolution

1. Establish 2. Operationalize 3. Scale

• Deploy 1st project successfully• Identify key roles - Executive Sponsor, COE

Lead, Anaplan Architect, Business Lead• Form delivery team• Establish Sprint Cadence

• Establish Data Governance• Identify functional and regional business

owners• Designate overall Solution Architect /

Technical Owner• Identify and train model builders – business

or IT• Define demand management process for

new model requests

• Define COE career path and goals• Adjust centralized vs regional model builder

capacity• Drive Anaplan adoption by identifying

appropriate use cases• Invest in additional Anaplan training for key

COE resources

HUB HUB

Page 26: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

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3. Stay connected . . .How to be good at change . . .

• Speed• Flexibility• Visibility• Ability to experiment

Page 27: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

Source:HBRsurvey,2016

75%Expect they will

need to planmore frequently

81%Agree – plans change

during execution

5%Strongly agree they

are effective at ongoing course-

corrections

Page 28: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

Anaplan Centre of Excellence Model

Move to self sufficiencyDrive improvements in capabilityEnsure resilienceMaintain Consistency & Governance

Data & Meta DataModel designProcessesUser experience

Share learningEmpower organic growth of the business to expand the connections Create a ‘service’ for the business to become more efficient

Page 29: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

The Centre of Excellence Model

Self-Sufficiency

Data governanceand integration

Direction and governance

An Anaplan ‘savvy’

Access to support

Access to Knowledge and Best Practices

An implementation approach

Skills and expertise

Change management

Page 30: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

Anaplan recognition

2016 CTO Award for Innovation

2017 LEADER

Sales Performance Management Magic Quadrant

2016 VISIONARY

Strategic Corporate Performance Management Magic Quadrant

2016 HYPE CYCLE

Human Capital Management Software, Workforce Planning & Modeling

LATEST MARKET GUIDE

Trade Promotion Management and Optimization

LATEST MARKET GUIDE

Sales and Operations Planning

Page 31: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

Sales & Operations Planning

End to End Supply Chain Planning

Supply Planning

Operations

Demand Planning

Trade Promotion

Merchandise Planning

Page 32: Driving a new age of connected planning...13 While there are many planning solutions, many of them struggle to offer a suite of connected planning capabilities Today’s Planning System

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§ Aconnectedplanningapproachresultsinbetter,morecollaborativelycreatedplansthatareresilientinthefaceofchange

§ Anaplanisauniqueplatformtodevelop,integrate,reconcile,refine,andmanageplans

§ Anaplancapabilitiescanbeimplementedquicklyusingagileprocesses

§ Anaplanishighlyscalableandsupportsverycomplex,financial,productandsupplychainplanningmodels

Keytakeaways Questions