Business Value Discovery: What Cash is Hiding Inside Your SAP System?
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Business Value Discovery: Uncover where significant value is lost, trapped or at risk in your business - and how you can free it!
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Transcript of Business Value Discovery: What Cash is Hiding Inside Your SAP System?
Business Value Discovery:Uncover where significant value is lost, trapped or at risk in your business - and how you can free it!
What keeps CEOs awake at night?
Major Issues Keeping CEO’s Awake…
Lack of alignment of management and operational activities, metrics and goals.
Disconnects between functions causing operational issues, poor data integrity leading to poor decision making, causing service failures, overstocks and waste.
Increasing level of regulation, concern about a lack of true understanding of what’s going on at a detailed level.
Company Culture, lack of autonomy & empowerment, misaligned purpose and frustration.
Inability to Effectively Execute
Strategy
Control of Value Chain Performance
Understanding and Controlling
Regulation / Compliance
Attraction, Retention and
Engagement of Talent
Sources:‘The 3 things CEO’s worry about most’ – Harvard Business Review March 16 2015
‘What’s keeping CEOs up at night?’- PwC June 05 2015‘What Keeps CEOs Up at Night and What Are Their Top Priorities?’ – US Dept. of State presentation, Jon Spector, President and CEO of the Conference Board, New York, NY Feb 24, 2015
Frustrated (and scared)
CFO’sFrustrated
Employee’sFrustrated Customers
Frustrated Leaders
What executives seeThe Hidden Cost of Uncertainty
What’s actually going on(The hidden costs of uncertainty and strategic misalignment)
Order ex
peditin
g
Countless unproductive
meetings
Obsolete, short dated or excess
stock
Penalties, lost sales, unplanned discounts
Excessive Overtime
Multiple shipments, partial deliveries &
backorders
Firefig
hting
Frustrated employees
Customer Complaints,FOC orders,
credits
Constant status reporting & data
reconciliation
Significant time spent downloading, and manipulating data
offline (usually in Excel)
Lack of trust in data leading to poor decision
making
Worse, we pay people to manage all this…
Even worse, we often reward them for it!
Results
Buying outside of process
You cannot control what you don‘t understand... you cannot improve what you can‘t control.
Need to understand this…
…before achieving this
UNDERSTAND CONTROL IMPROVE INNOVATERoot Causes of
Issues and Disruptions
BusinessPerformance
New Business Model
Data integrity, compliance, human error, schedule
adherence, process conformance issues…
Service levels, Inventory control, supplier performance, plan adherence, compliance,
data integrity…
Customer retention, Operating cost, revenue, margin, risk
prevention, integrity, cashflow…
Redirect time and cash from waste to innovation
Process Performance
Want to discover how much this uncertainty and frustration is costing your company?
Want to find out without risk?
Want to find out in just five days?
Understand & Control PROCESS
non-conformance
Understand, Control & Improve Conformance AND Performance
Where other tools measure only compliance, Every Angle’s solution enables your team to understand, monitor and report on conformance AND performance.
Understand & Control DATA
non-conformance
Understand & ControlPEOPLE
non-conformance
Scope of the Business Value Discovery
Customer service
Cost-to-serve
Working capital
(inventory / cash)
Quantify the initial and recurring benefits of waste reduction, powered by Every Angle
Economic value
Profit margin Capital efficiency
Revenue ExpenseReturn on Working Capital
Identify “waste”in the processes F2RO2C ITGRCS2DP2P
Data integrity
How do we assess the Business Value?
How do we approach the Quantitative Assessment?
Prepare the EA based analysis figures
R-EA-listic Input generated by angles (discussed and checked by the business experts)
Calculation parametersand assumptionsPessimistic
Optimistic
Discuss and tune the angles findings and actions withthe customer experts
Calculation logic
Pessimistic Realistic Optimistic Business benefit estimates
Present and discuss the findings with the leadership
Initial Value and
Understanding
Recurring Value
Calculate the Every Angle Business Value
The business does IT does
Who benefits?
Improved cashflowReduced # wasteful & risky activitiesBetter planning & decision making
Easier to identify critical issues
Improved data qualityBetter perception of SAP
Greater user satisfaction from IT
Did we mention it only took 5 days?
Did we mention it was risk free?
Or no charge!
