strategic challenges
TRANSCRIPT
1Proprietary and confidential. All rights reserved. Copyright © 2020 Vistex, Inc.
STRATEGIC CHALLENGES
José Carlos de Felipe
2Proprietary and confidential. All rights reserved. Copyright © 2020 Vistex, Inc.
Vistex Overview
Closing and Next Steps
Strategic challenges from some of our customers
Agenda
Proprietary and confidential. All rights reserved. Copyright © 2020 Vistex, Inc.
ABOUT VISTEX
▪ Established in 1999
▪ Over 1.300 customers
▪ Global presence – 22 offices
▪ 1.700+ employees worldwide
▪ SAP Solution Extensions Partner
VISTEX IS A GLOBAL PROVIDER OF ENTERPRISE SOLUTIONS & SERVICES
SAP Solution ExtensionsPartner of the YearCustomer Experience (CX)
SAP Solution Extensions
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22+Industries
30+Countries
1.300+Customers
1.700+Employees
21Years in Business
RETAILWHOLESALECONSUMER GOODS
BROAD INDUSTRY SPECIFIC KNOWLEDGE
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Deal Management – End2End
Intelligent revenue management is the key to End2End Go-to-Market success.
GO-TO-MARKET (PRICING + REBATES + INCENTRIVES + ROYALTIES)
Rights & Royalties
Sales Performance
Channel Benefits
Price Management
LIS
T
PR
ICE
INC
OM
E
Price Setting
Business Partner Behavior
Employee Motivation
Unique Offerings
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Eliminate Need for Interfaces
• Native access to SAP Data
• Native integration to SAP Modules
Security & Controls
• Leverage power of SAP security
• Audit Tracking and compliance
Lowest Total Cost of Ownership
• Leverage existing SAP ERP hardware environments & skills
• Leverage scalability and performance of SAP ERP
SAP & SAP Vistex
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… and in S/4 HANA
•Embedded in SAP Core• Similar licensing & names
• Same installation & maintenance
•Available for S/4HANA• Same features & capabilities
• Adapted to SAP Simplifications
• Optimized for HANA
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PRICE MANAGEMENT
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SALES REP.
ON TRADE CHANNEL
CUSTOMERDISTRIBUTOR
Purchasing Rebates
VENDORS
GPO
Incentives & Commissions
CONSUMERS
KEY CUSTOMER
RETAIL POS
Promotions and Rebates
Price and Margin
COMPANY
PRICING PROCESS & COVERAGE
OFF TRADE CHANNEL
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What-if Analysis for changes to the list prices
▪ Annual large scale list price changes
▪ Smaller, budgeted list price adjustments for a Category
Markdown Planning & Clearance
▪ Inventory Correction/End-of-life product markdowns
▪ Inventory Clearance by Store
Helps in List Price Optimization
▪ Estimate relationship between price and demand
▪ Helps identifying Price Shifts before Optimization
Model Selection
Machine Learning approach to identify the best model for the Article/Store
combination
CALIBRATION
Parameters Estimate
Estimated the parameters of the selected demand
models.
ESTIMATION
What-If analysis
Calculate the expected impact of a price change
on the current demand levels.
CALCULATION
VISTEX RETAIL ESTIMATION (VRE) VRE Processes
VRE Estimates relationship between Demand and Price actions using predefined set of Models supporting:
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QUESTION #1
2 T/M 6 NOVEMBER 2020
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PRICE OPTIMIZATION
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DataVistex is embedded in
SAP and SAP is the system of record
The pricing analyst is underserved
Are you trusting a black box?
Are you hooked on analytics as a service?
Vistex does not duplicate data
Is your Data Lake turning into a Data Swamp yet?
Vistex has access to list prices and actual prices
Do your pricing decisions even have traction?
AnalyticsVistex supports the pricing analyst with tactical and
strategic insights
Big Data Eco-SystemVistex leverages SAP’s
Innovation initiatives bringing the analytics to the data
DIFFERENTIATORS FOR VISTEX DATA SCIENCE
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Insight to Actions
▪ Contextual Analytics (What changed?)
▪ Root Cause Analysis (What happened?)
▪ Alerts (Profitability)
▪ Whitespace (Sell More)
▪ Agreement Renewal
Pre-Defined Content
▪ Pricing Analytics
▪ Contract/Agreement Analytics
▪ Rebate Analytics
▪ Sales Trend Analysis
▪ Profitability Waterfall
Predict and Optimize
▪ Vistex Retail Estimation
▪ Price Optimization
▪ Price Guidance & Opportunity
▪ Rebate Forecasting
▪ Range/Ladder Pricing
VALUE PROPOSITION FOR OUR CUSTOMERS
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KEY CHALLENGES ADDRESSED TOGETHER WITH OUR CUSTOMERS
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Hero Articles ReportBusiness Challenge: To show all hero articles (best performing) in a Category of the product hierarchy by Sales revenue and Margin plotted at Category level showing the articles in form of a bubble chart and a grid
Territory Cost ReportBusiness Challenge: Sales, Costs & Simulation data at different places, need to have one view of the same with margins
ITALIAN RETAILER
Response:
Vistex Analytics was able to combine data in an AMDP from Vistex Simulation results and Costs info from SAP to Sales-Costs-Margin by Territory (Sales org/Region).
Response:
ViZi dashboard showing the best selling articles by category and key metrics of sales revenue, volume and margin depicted in a quadrant
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General Overview of PerformanceBusiness Challenge: Business Challenge: A performance dashboard was required by business to analyze sales and margins on weekly basis by store, sales org and category.
Point of Sale IndicesBusiness Challenge: To analyse margins pre and post simulation using weighted indices by customer hierarchy, store and category
ITALIAN RETAILER
Response:
ViZi dashboard built to show pre and post indices and margins by store and store role, calculate variance in both indices and margins for analysis.
Response:
ViZi dashboard with graphs and grid showing Sales Value, Sales Qty, Margin and Index by Calendar Week; both KG and Pcs UoM
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Sales and Margins No PromoBusiness Challenge: Report by Store, Supplier, Prod. Hier, should show total cost, sales value, margins, quantity, promotion by margins date range in selection from date - to date; showing aggregated data and ability to drilldown by week
Margin Trend AnalysisBusiness Challenge: Required a report showing articles performing below a threshold in terms of Margins at store and article level
ITALIAN RETAILER
Response:
ViZi dashboard showing the actual and simulated margin analysis and performing articles below the threshold of rules in graph/chart and grid
Response:
ViZi dashboard required combining SAP condition data with BW to produce such report. The challenge was to read condition records using a function based on a condition value in ECC
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Price Level Shifts and Elasticity Business Challenge: Analyze price points and price level shifts over the period of 3 years at article, category and cluster level to identify number of price changes
Vistex Retail Estimation ReportBusiness Challenge: Estimate price demand at article > category > cluster level and forecast the new volume based on past 52 weeks
RETAILER IN UK – VISTEX PRICE DEMAND ESTIMATION
Response:
Part of Vistex Price Demand Estimation solution using machine learning algorithms on sales history of 3 years to calculate and estimate the price demand and consume the same in Vistex simulation and forecasting
Response:
Part of Vistex Price Demand Estimation using elasticity values from Price Demand Estimation to produce analysis on how many price points a category had in 3 years to see the shifts in prices and volumes showing the arc elasticity.
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Agreements ReportBusiness Challenge: Agreement analysis with request pipeline, profitability and utilization
Vendor RebatesBusiness Challenge: Business Challenge: Vendor Rebate analysis showing trends, margins and profitability
NORDICS ELECTRONICS RETAILER
Response:
ViZi standard content dashboard showing Vendor rebates comparing current and last yar by category, product group, extl material group etc.
Response:
ViZi standard content dashboard showing all Agreement analytics
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QUESTION #2
2 T/M 6 NOVEMBER 2020
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PRICE GUIDANCESALES SUPPORT
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Segment Level Price Guidance
▪ Floor, Target, and Expert prices for each specific micro-segment
▪ Updates on derived attributes (features), such as customer size, transaction size, and propensity to buy in a certain product group
▪ Alerts for unusual changes in the market
Real-Time Price Guidance
▪ Customer specific Floor, Target, and Expert prices as a response to a price request
▪ Can incorporate spot market index, costs, competitor rates, freight rates …
▪ Peer group of successful responses to similar requests
PRICE GUIDANCE, REFERENCE PRICES & PRICE ENVELOPE
Determines the best reference prices for a price request, based on successful responses to similar requests by similar customers under similar conditions.
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Reference based pricing
▪ Only successful deals
Churn based pricing
▪ Renewals, with automatic win/loss assessment on product level
Win/Loss based pricing
▪ For one time and/or first time deals, requires wins and losses
▪ For digital channels, loss data will be consistent
PRICE GUIDANCE: BIGGER PICTURE
Different model options depend on the type of deal data you retain:
Vistex supports all three models – because your deal data differs by line of business, and your deal data will change
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PRICE GUIDANCE
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PRICE GUIDANCE
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QUESTION #3
2 T/M 6 NOVEMBER 2020
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SALES REVENUE
BACK & FRONT
MARGIN
COMPLEXITY COST
PROFITABILITY
When you have solid information and a detailed view of your Go-To-Market performance, you have all the elements needed to make the right decisions that leads to successful actions
REFERENCE FRAMEWORK
BUSINESS PROPOSAL
Program Charter & Profitability
Calculation
True visibility with forecasting, planning and
profitability modelling
One single point of truth
Share reliable information across
the company
Financial Visibility & Accuracy
Be more efficient, identify deviations and secure margins
Real Time Visibility
Allow business to make faster
decisions for better time to market
Simplification of Architecture
Lower TCO and avoid data spread across multiple systems
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Copyright: Vistex®, Go-to-Market Suite®, ViZI® and other Vistex, Inc. graphics, logos, and service names are trademarks,registered trademarks or trade dress of Vistex, Inc. in the United States and/or other countries. No part of this publicationmay be reproduced or transmitted in any form or for any purpose without the expressed written permission of Vistex, Inc.The information contained herein may be changed without prior notice. © Copyright 2017 Vistex, Inc. All rights reserved.
SOFTWARE SERVICES ON PREMISE IN CLOUD
Vistex GmbHAltrottstrasse 3169190 Waldorf, Germany
José Carlos de FelipeSales Director m: +34 616 975 278e: [email protected]