SCM & Agile Business Intelligence. Anja Cielen

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1 SCM & Agile Business Intelligence Anja Cielen 19/11/2014

2 Agenda Supply Chain & Today s Challenges Supply Chain Analytics Supply Chain and Agile BI 2

3 SUPPLY CHAIN & TODAY S CHALLENGES 3

4 Supply Chain 4

5 Supply Chain 5

6 Supply Chain Challenges Source: IBM Global Chief Supply Chain Office Study,

7 Supply Chain Challenges Evolution: Business span multiple locations, with multiple product lines or product variants. Growing complexity of global operations Lack of visibilty at various nodes of the Supply Chain Diminishing control over supply chain operating cost Mutiple owners to the process (manufacturing, procurement and commercial customer service) inside the company & outside (distributor, customer (ordering)) 7

8 Supply Chain Complexity Plan Plan Plan Plan Plan Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source Suppliers Supplier Supplier YOUR Organization Customer Customer s Customer Internal or External Return Internal or External GLOBAL VIEW OF PERFORMANCE ACROSS ALL DATA SOURCES ERP CRM AP&S SCM PLM 3PL MES 8

9 SUPPLY CHAIN ANALYTICS 9

10 Why Supply Chain Analytics? Keep the cost of manufacturing and inventory low Supply chain efficiency Improve relationships and partnerships with logistics vendors Need to be able to: Identify negative trends in costs and performance Identify root causes as early as possible to corrective actions Conduct what-if analysis to evaluate trade-offs of different strategies and tactics Should provide a window into the enterprise processes but also into their trading processes as well Forecast accuracy Market Share Analysis Risk Management Inventory Control 10

11 Lot s of Data Sources Data from TMS, SCM, ERP,... Access to data is key GLOBAL VIEW OF PERFORMANCE ACROSS ALL DATA SOURCES ERP CRM AP&S SCM PLM 3PL MES BUT being able to find, understand, and use that data to make strategic decisions that improve supply chain effectiveness is crucial. 11

12 Importance of data Majority of organizations regard data as key strategic asset BI maturity and superior business performance might be correlated New BI capabilities can put companies in a better position to meet today s challenges Leading organizations are more likely to use innovative information technologies Fast changing business demands make agile BI environments essential. Forrester Consulting, April

13 AGILE BI 13

14 Why Agile BI? Getting the right data into the right hands, reliably and securely, requires an enterprisewide agile information management strategy. Lack of agility is a major obstacle to delivering effective BI The BI architectural stack remains complex Implementing BI requires using best practices and building on lessons learned Existing BI support structures often no longer meet the need embed BI in the business 14

15 Why Agile BI? BI requirements change faster than IT can keep up BI application can be outdated the day it is rolled out Even just weeks to design, build and implement a BI application might be too long A BI application s lifespan can be days or weeks as opposed to months or years. THAT S WHY A BI environment needs to be agile in all respects: BI software development BI organization BI technologies 15

16 Agility? Agility is the ability to both create and respond to change in order to profit in a turbulent business environment. - Jim Highsmith

17 Constant change is the new normal Time window for decisions increasingly compressed Fast changing environment Increasing market pressure Customers needs are changing constantly Increasing or changing demand for management information Growing volume of source data/number of sources Certainly applies for the Supply Chain 17

18 Embrace Change Facilitating change is more effective than attempting to prevent it; Learn to trust in your ability to respond to unpredictable events; It's more important than trusting in your ability to plan for disaster. 18

19 The goal of Agile The main goal of agile is: Delivering as much value as possible for the given time and money How? Only make really needed functionality, the highest value first Eliminate waste only add value Mitigate risk show working, production feasible software

20 Scrum: a quick tour Daily scrum Product backlog grooming meeting Sprint meeting 1 day Iteration Demo Retrospective Product backlog Sprint backlog Deployable product 20

21 Waterfall vs Agile Waterfall Agile The user knows what he needs The developer knows how to build it During the project nothing changes The user discovers during the project what he needs The developer discovers during the project how to build it There is a lot of dynamics and changes during the project What s in it for the business? Flexibility Control every 2 weeks Quick added value 21

22 Agile BI Dream or Reality? A key feature of agile development is: everything you do needs to bring immediate added value to the business. Following remark is often heard: An agile approach will be possible for the front-end part but it will not be possible for the back-end (ETL and DWH/Datamarts) 22

23 Agile BI only suited for front-end? Front-end Agile Only 20-30% would be Agile Back-end Water fall 70-80% 23

24 Agile BI is layer driven? First visible result in sprint 5 Sprint 5 Sprint 4 Sprint 3 Sprint 2 Sprint 1 24

25 From source to information Agile is delivering business value! (each sprint) Business Value 25

26 2 ways - Report driven (slicing) 26

27 2 ways Data/information driven (refining) 27

28 Main characteristics of an effective BI delivery environment Ensure an appropriate balans between control and agility Consider and address the risks inherent to agility Verify that information types match decision types Maximize the evolution of BICC into an agile BI solution center Keep data preparation and data usage separate Focus on a simplified semantic layer that offers business the opportunity to work with them 28

29 Balance between BI Control and Agility More control Dictatorship Democracy Less agility More agility Desert Anarchy Less control Build an Agile BI Organization Forrester Research, Inc, January

30 Better-Performing Supply Chain organizations have the most Agile BI environments Forrester Consulting, April

31 Pitfalls No real commitment for a sprint Laying the bar too high Laying the bar too low Too much production-oriented (code communication) No definition of done Change to generic/ flexible solutions too quickly Too little focus on quality (ST solutions) It s not about working harder but smarter Insufficient coordination with stakeholders 31

32 Five key innovations Self-service tools Interactive visualization Predictive analytics Big data analytics Cloud-based delivery models 32

33 THANKS

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