Pradeep K Nair

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Agenda

• Why Business Intelligence?• IBM Vision for BI• The Corporate Information Factory (CIF) –Architecture

Principles• Various dimensions of BI in Manufacturing/Auto• Detailed discussion on SCOR – An example of IBM’s

solution• IBM’s Solution Stack (Small-to-Big)

Some of Our clients

Why BI Initiatives – Top Reasons

• Business ReasonsCompetitive Advantage (avoid “Me-Too”)Business InnovationBusiness Optimization (Strategy & Process)Ability to respond to “market opportunities / situations”Identify Trends & New MarketsIdentify New Segments / Applications

• IT Reasons– CIO/CTO as “Innovation Enabler”– Focus on Aligning Business Strategy with IT Strategy (instead of feeding reports)– Core Applications like ERP / SCM / CRM are not designed for “ACTIONABLE INSIGHT”– To meet “Service Levels” of functions

Dr. William Inmon TM

DW/BI – Basic Principles

Decision Making Pyramid – Architecture Considerations

Operational Decision KPI’s

1- 3 Months

Tactical Decision KPI’s

3-6 Months

Strategic Planning

9-36 Months

DW/DM

ODS

DW/EW

Total Performance Management Visibility HIGHER PERFORMANCEHIGHER PERFORMANCE

TYPICAL INFORMATION SOURCES

ERPERP CRMCRM AP&SAP&S SCMSCM PLMPLM 3PL3PL MESMES

GLOBAL VIEW OF PERFORMANCE

Scorecarding& Dashboarding

Scorecarding& Dashboarding

Reporting& AnalysisReporting& Analysis

Planning, Budgeting& Forecasting

Planning, Budgeting& Forecasting

How are we doing? Why? What should webe doing?

Broad Classification of BI

• Performance Management (MBO, MBE, Strategic Management, Executive Scorecards)

• Functional Analytics• Business Optimization• Strategic & Predictive Analysis (Scenarios, What-

IF, Decision Trees, Crystal Gazing)• Customer Knowledge Management

Scope of BI for Manufacturing Cos• Sales & Marketing

– Primary / Direct Sales Analysis– Secondary / Distributor Sales Analysis– Tertiary / Retail Sales Analysis – Analytical CRM (Segmentation, Targeted Campaigns, Customer Loyalty)

• Demand & Supply Chain – Forecasting & Planning– SCOR Metrics, S & OP, Colloborative Demand & Supply Planning– Supplier/Partner Performance– Logistics & Transport Optimisation (Cost & Route)

• Strategic Initiatives– LEAN , 5S , JIT– Six Sigma

• Production/Manufacturing– Work-in-Process Tracking– Plant Performance ( Yield, Safety , Correlation with Demand Plan, Production Scheduling

etc)– Workforce Management

• Financial Management– Financial Planning & Consolidation, Budgeting– Balance Sheet , P & L Ratios– Revenue , COGS, Inventory , – Plan vs. Actuals

Functional Scope of BI in Manufacturing

• Procurement / Materials Management– Inventory Analysis– Cost & Price Management– Supplier Performance– Work-in-Process Tracking– “Stock Out” Prediction and Management

• Quality– Predictive Failure / Failure Analysis– Wastage Analysis– Six Sigma

• Customer Service/After Market– Parts Availability / Replenishment– Stock Demand & Norms– Warranty Analysis (Profit, Customer Satisfaction)

Sell Fulfill DistributeProduceProcure

SUPPLIER MANUFACTURERDISTRIBUTION

CENTER RETAILER

Materials

Information& Funds

Materials

Information& Funds

Materials

Information& Funds

Supply Chain Visibility

Daily, weekly, and Real Time dashboards

BusinessResults

Scorecards

Reports & Analysis

Dashboards

Go! Mobile

S&OP Executive ReviewIntegrated Financial Plan

SCOR Metrics

• ERP• Inventory

Supply ChainLogistics / 3PLCustomerSyndicated Data

• POS Data• Trade Promotion

Results

• ERP• Inventory

Supply ChainLogistics / 3PLCustomerSyndicated Data

• POS Data• Trade Promotion

Results

Operations Data

Operational Planning & ExecutionDemand

FinancialSupply

Event Notification

Manufacturing Performance Management Framework

S&OP Process Enabled by Cognos

Performance Blueprints• Industry

– S&OP– S&OP Executive Review– Trade Promotion Management– Upstream Oil and Gas

• Department or Function– Workforce Planning– Workforce Resource

Management– Sales Compensation Planning– Sales Planning and

Forecasting

• Enterprise Planning– Allocations Planning– Capital Project Planning– Discretionary Capital Expenditure

Planning– Expense Planning & Control– Initiative Planning– Risk Analysis– Strategic Finance– Strategic Long Range Planning

• Financial Management & Control– Close, Consolidate, and Report– Group Consolidation & Corp

Reporting– Management & Financial Reporting

IBM Vision - Information On Demand –Unlocking the Business Value of Information for Competitive Advantage

Better BusinessOutcomes

Other Information& Application Sources

Customer & Product Profitability

Workforce Optimization

Dynamic Supply Chain Multi-channel

Marketing

Financial Risk Insight

Business Optimization

Flexible Architecture for Leveraging Existing Investments

Better understand & optimize business

performance

Establish & manage data and content over its lifecycle

Create a single version of the truth,

managed over time

Optimization

Automation

IBM DW/BI Solution Stack

Datawarehouse + Exploration Warehouse (Information Server)

Extract/Transform/Load (IBM Ascential Range)

Metadata & Quality Management (IBM Ascential Tools)

Dimensional Datamarts (OLAP) (IBM Information Server)

Reporting & Analysis

Cause-Effect Analysis

Performance Management

Strategic Applications

Cognos TM1 Cognos 8 BI Cognos 8 BI Planning & Budgeting

Balanced S

corecard / Executive S

corecards / D

asboards

Portal Based Delivery

Why IBM?• Deep functional & technology experience in the

Manufacturing/Industrial domain – Clear Differentiator !• Thought Leader in “Business Intelligence & DW (started

first project in 1962) – Can you believe that?• Several clients who have seen both Business & IT

benefits• Detailed solution stack which enables all functional and

technical areas that may be implemented• Clear approach to Risk Management• Committed Implementation partners with deep functional,

technical and project management skills