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Bizbrain IBP presentation at SAP Insider 2016
1. Speed
and
complexity:
Lessons
learned
and
best
prac5ces
in
implemen5ng
SAP®
IBP
for
companies
of
different
sizes
and
different
business
process
variants
bridging
Business
and
Technology
2. The speakers
Luca
Massasso
Bizbrain
Technologies
co-‐founder.
15+
years
experience
in
enterprise
so=ware.
Eleven
years
of
work
experience
at
SAP
in
various
roles
(SAP®
SCM
Development
Architect,
Business
Development
Manager,
Global
New
Product
IntroducOon
Program
Manager).
Krishna
Mamidipaka
Bizbrain
Technologies
co-‐founder.
20+
years
SAP
experience
in
small
and
large
enterprises.
At
SAP
Krishna
led
the
SAP
the
global
product
launch
of
several
SAP
products,
including
the
latest
SAP®
HANA
soluOons.
Prior
to
SAP
Krishna
was
SVP
at
Freshdirect.
3. Guest speakers
Dus3n
Demmin
Nature’s
Way
Brands
-‐
IT
Director
IT
Project
Lead
For
Nature’s
Way
IBP
ImplementaOon.
16
years
of
IT
experience
in
Consumer
Products,
Health
Care
and
Manufacturing.
DusOn
joined
Nature’s
Way
in
2006
and
has
acted
in
both
his
current
capacity
and
as
project
manager
on
mulOple
projects.
Ma5hew
Flood
VP
of
IT
in
Major
OTC
PharmaceuOcal
25+
years
of
IT
experience
in
OTC
&
Health
Care
and
Manufacturing.
Ma^
held
Senior
Technology
Management
posiOons
at
Taro
and
Purdue
PharmaceuOcals.
4. Introduction
Goals
• Share
lessons
learned
(avoid
pi_alls)
• Walk
away
with
good
ideas
on
how
to
drive
value
using
SAP®
IBP
• Maximize
the
return
of
SAP®
IBP
investment
using
a
progressive
step
by
step
approach
(avoiding
expensive
rework)
Target
Audience
• SAP
Customer/Prospects
interested
in
developing
an
efficient
SAP®
IBP
Roadmap
• Planners/Business
Users
interested
in
maximizing
the
value
of
SAP®
IBP
• IT
Professionals
interested
in
SAP®
IBP
Best
pracOces
5. Outline
Global
or
local
template?
One
or
mulOple
planning
areas?
Demand
Planning
processes
vs
Demand
and
Supply
planning
processes
IT
challenges
for
larger
and
smaller
organizaOons
The
effect
of
data
quality
on
IBP
implementaOons
IBP
Customer
Stories
6. Global or local template?
• Is
your
Supply
Chain
really
global?
• Do
you
have
global
planners?
• Do
you
have
a
global
Supply
Chain
Unit?
• Do
you
plan
consistently
across
Regions/
Line
of
business?
• What
processes
are
you
running
globally?
S&OP?
CollaboraOve
demand
planning?
Integrated
Business
Planning?
7. Are you ready for a global S&OP template?
• Are
certain
Line-‐of-‐business/Divisions/Market
Units
requiring
specific
process
variants?
• Do
you
have
a
diverse
IT
system
landscape?
• Do
you
have
mulOple
ERP
instances?
• Are
you
replacing
other
soluOons?
8. Generate more value out of SAP® IBP: Time horizons
Short
term
-‐
ExecuOon
Mid
term
-‐
TacOcal
Longer
term
–
Strategic/TacOcal
9. Solution/Process mapping by time horizon
Short
term
-‐
ExecuOon
Mid
term
-‐
TacOcal
Longer
term
–
Strategic/TacOcal
SAP®
ECC
SAP®
APO
SAP®
IBP
SAP®
BPC
Corporate
Strategy
Budget
SAP®
PLM
Dashboard/
AnalyOcs
Top
Mgmt
Mgmt
Planners
OperaOons
10. Generate more value out of SAP® IBP: data stack
Master
Data
Key
Figures
OperaOons
Stock
on
hand
and
Projected
Inventory
Costs
Financial
Corporate
Transport
ProducOon
History
Delivery
and
Sales
Inventory
Revenue/Prices
External
Receipts
Capacity
UOlizaOon
Gross
Demand
Net
Demand
Manufacturing
cost
rate
TransportaOon
cost
rate
Inventory
cost
rate
Non
delivery
cost
rate
Op3mizer
costs
Prices
Procurement
cost
rate
Inventory
cost
rate
Projected
Revenue
Projected
Procurement
Costs
Projected
Manufacturing
costs
Projected
ProducOon
Costs
Projected
Overhead
Costs
Business
OperaOng
Plan
Sales
Quota
Budget
Projected
Gross
Margin
Target
Product
Profitability
11. Levers/values made possible by SAP® IBP
• Process
harmonizaOon/standardizaOon
• CentralizaOon
of
informaOon/unique
version
of
the
“truth”
• ReducOon
of
planning
cycles/increased
planners
producOvity
• Faster
management
response
to
planning
changes
12. Outline
One
or
mulOple
planning
areas?
Demand
Planning
processes
vs
Demand
and
Supply
planning
processes
IT
challenges
for
larger
and
smaller
organizaOons
The
effect
of
data
quality
on
IBP
implementaOons
IBP
Customer
Stories
Global
or
local
template?
13. The SAP® IBP Supply model
SCM
Input
Key
Figures
SCM
Adjusted
Key
Figures
SCM
Output
Key
figures
SAP®
IBP
SCM
Planning
Operator
(HeurisOcs
or
OpOmizer)
Input
Output
Master
Data
SAP®
IBP
for
Supply
requires
to
use
an
“API”
comprising
Master
data
and
specific
Key
figures
17. Global Reporting or Global planning
Define
a
“standard”
set
of
Global
Key
Figures
to
steer
the
Top
Management
decisions
(typically
Revenue,
Margin,
Inventory
projecOons)
18. How to manage process variants
Establish
Business
and
IT
governance
Task
the
Business
Process
governance
to
manage
process
harmonizaOon
whenever
possible
and
IT
governance
to
efficiently
model
the
Supply
Chain
19. Governance: Master Data
Master
Data
cannot
be
parametrized:
the
Master
data
structures
MUST
be
the
same
(difference
in
process
variants
can
be
managed
by
a^ribute
redundancies)
20. Governance: SCM Key Figures
Key
Figures
calculaOons
may
have
to
be
parametrized:
establish
an
internal
governance
21. One or multiple Planning Areas? The available options
Master
Data
Planning
Area
Master
Data
Planning
Area
A
Planning
Area
B
Master
Data
1
Planning
Area
1
Master
Data
2
Planning
Area
2
One
Planning
Area
All
the
business
processes
are
supported
by
one
Planning
area
and
one
set
of
Master
Data
tables.
Mul3ple
Planning
Areas
sharing
Master
Data
One
unique
set
of
Master
Data
supports
mulOple
Planning
Areas.
The
Excel
Plugin
allows
the
consumpOon
of
one
Planning
area
data
at
a
Ome.
Independent
Planning
Areas
Independent
planning
areas
are
built
on
independent
set
of
Master
Data
tables.
22. Integration and cost of maintenance
One
Planning
Area
HCI
may
integrate
through
a
common
interface
definiOon,
both
for
Key
Figures
and
Master
Data.
Mul3ple
Planning
Areas
sharing
Master
Data
Should
the
Master
data
have
the
exact
same
number
of
Master
Data
objects,
HCI
may
integrate
through
a
common
interface
definiOon.
Kay
Figures
integraOons
are
potenOally
different.
Independent
Planning
Areas
Master
Data
and
Key
figures
integraOon
are
potenOally
independent.
HCI
HCI
HCI
23. Typical use cases
ONE
Planning
area
Common
MD
With
design
guidelines
for
Planning
area
Dis3nct
Pl.
Areas
With
Design
guidelines
Dis3nct
Pl.
Areas
(silos)
• One
Unique
Planning
area
• Follow
SAP
guidelines
on
Modeling
• MulOple
Planning
area
• Common
Master
data
is
enforcing
common
MD
design
• Common
guidelines
and
governance
must
be
followed
for
Key
Figures
and
Planning
levels
to
bring
this
scenario
to
ONE
Planning
area
• MulOple
Planning
areas
• Common
guidelines
and
governance
provided
for:
• Master
data
• Planning
levels
• Key
figures
Must
be
followed
in
order
to
port
this
case
to
ONE
Planning
area
• MulOple
Planning
areas
without
common
design
guidelines
and
governance
• Convergence
to
ONE
planning
area
may
require
significant
rework
and
it
may
prove
very
challenging
readiness
24. Outline
Demand
Planning
processes
vs
Demand
and
Supply
planning
processes
IT
challenges
for
larger
and
smaller
organizaOons
The
effect
of
data
quality
on
IBP
implementaOons
IBP
Customer
stories
Global
or
local
template?
One
or
mulOple
planning
areas?
27. Recommendations while following a phased approach
• Follow
the
SAP
Standard
• Design
the
“Demand”
process
looking
at
the
“Supply”
side
to
avoid
future
rework
• Set
up
currency
from
day
one
for
currency-‐dependent
key
figures
• Set
up
Unit
of
measures
• Consider
the
“Realignment”
requirements
28. Outline
IT
challenges/
advantages
for
larger
and
smaller
organizaOons
The
effect
of
data
quality
on
IBP
implementaOons
IBP
Customer
Stories
Global
or
local
template?
One
or
mulOple
planning
areas?
Demand
Planning
processes
vs
Demand
and
Supply
planning
processes
29. IT challenges for larger and smaller organizations
• Alignment
across
LOBs
is
paramount
for
process
definiOon:
you
MUST
achieve
alignment
before
you
start
the
configuraOon
• Small
companies
need
educaOon
on
cloud
soluOons
• Tendency
of
interpreOng
SAP®
IBP
as
reporOng
tool
vs.
planning
tool
• Understanding
the
role
of
SAP®
IBP
in
their
soluOon
stack
(planning
tool,
not
scheduling
tool
or
data
harmonizaOon
tool)
30. IT advantages for larger and smaller organizations
• Short
deployment
Omes
(12
weeks!)
• Faster
SAP®
HANA
adopOon
• Faster
value
realizaOon
drives
IT
credibility
to
the
business
community
• Hassle-‐free
Upgrades
and
patches
• Cloud
soluOons
increases
IT
producOvity
as
IT
can
release
resources
from
system
maintenance
and
support
31. Outline
The
effect
of
data
quality
on
IBP
implementaOons
IBP
Customer
Stories
Global
or
local
template?
One
or
mulOple
planning
areas?
Demand
Planning
processes
vs
Demand
and
Supply
planning
processes
IT
challenges
for
larger
and
smaller
organizaOons
32. Impact of data quality on IBP implementations
• Realignment
• ReconciliaOon
of
the
data
(make
sure
data
matches
in
all
systems)
• Lack
of
data
understanding
leads
to
project
delays
• MulOple
Backend
systems
(i.e.
mulOple
SAP
ECC):
SAP®
IBP
is
not
an
harmonizaOon
tool
• Data
harmonizaOon
is
done
outside
SAP
IBP
• Master
data
governance
must
be
in
place
to
enforce
the
rules
across
systems
and
LOBs
Any
of
the
above
items
WILL
delay
your
deadlines!!
33. Outline
IBP
Customer
Stories
Global
or
local
template?
One
or
mulOple
planning
areas?
Demand
Planning
processes
vs
Demand
and
Supply
planning
processes
IT
challenges
for
larger
and
smaller
organizaOons
The
effect
of
data
quality
on
IBP
implementaOons
34. OTC : Business Issues
• Sales
and
OperaOon
Process
was
completely
manual
–
Excel
– No
easy
access
to
the
enOre
data
set
– Data
disconnected
from
the
planning
tools
• Develop
Sales
Budget
and
Quotas
–
3-‐4
weeks
to
complete
• Current
business
process
stagnated
business
growth
and
acquisiOons
• Processes
was
extremely
slow
• BW
reports
were
slow
–
remote
access
even
slower
• End
result
was
difficult
to
achieve
accurately
–
many
spreadsheets
to
analyze
and
consolidate
• Manual
process
–
high
rate
of
errors
35. Overall IBP Project
• Started
with
12
week
project
–
monthly
forecasOng
Phase
1
only
• Project
went
so
well
–
Sales
OperaOons
Planning
team
decided
to
construct
our
enOre
SOP
on
IBP
–Project
went
to
5
Phases
including
HCI
–
11
months
–Phased
ImplementaOon
criOcal
-‐
easier
to
manage,
test,
train
users
and
go
live
• Sales
Quota
–
brand/customer
required
decrease
–
IBP
calculaOon
engine
would
redistribute
quotas
to
other
customers
automaOcally
• Monthly
Forecasts
–
instantaneous
access
to
previous
forecasts
• As
phases
were
implemented,
users
trust
with
the
system
grew
36. OTC : Key Benefits Achieved
• Centralized
tool
where
teams
can
collaborate
in
the
development
of
yearly
plans
with
real
Ome
visibility,
updates
to
the
enOre
management
team
• Improved
data
accuracy
and
consistency
with
a
consolidated
and
standardized
process
• Leading
to
trusted
and
reliable
input
from
Sales
and
MarkeOng
• Be^er
data
accuracy
and
less
rework,
shorter
Ome
to
compleOon
• Smooth
transiOon
due
to
use
of
familiar
tool
-‐
Excel
• Consensus
of
Sales
,
MarkeOng
and
Demand
Planning
was
now
possible
and
Quotas
planning
went
from
3-‐4
weeks
to
hours
• Provided
foundaOon
for
M
&
A
–
IntegraOon
in
days
&
ERP
agnosOc
• IBP
templates
run
in
a
minute
37. OTC : Lessons Learned
• Data
Quality
and
Data
Life
Cycle
• IBP
is
not
reporOng
tool
• Change
management
• Plan
sufficient
Ome
for
IntegraOon
and
business
simulaOon
tests
• So=ware
life
cycle
management
(Patches
and
Plugin)
38. Up
to
7
BOM
levels
Internal
and
External
Manufacturing
and
Packaging
1800+
finished
goods
planned
>>
Process
Management
&
Collabora3on
Clear
Visibility
to
monthly
planning
process
and
collaboraOon
uOlizing
SAP
JAM.
>>
Harmonized
Data
Model
for
Demand
and
Supply
Quickly
react
to
changes
in
demand
while
balancing
inventory,
rough
cut
capacity,
and
revenue.
>>
Mul3-‐Level
Supply
Planning
for
internal
and
external
produc3on
and
procurement
View
demand
and
sourcing
changes
and
their
impact
on
costs,
inventory
and
capacity
in
real
Ome.
>>
Built
on
SAP
HANA
Real
Ome
updates
to
plan
with
ability
to
aggregate
and
disaggregate
to
any
level
SOLUTION
HIGHLIGHTS
>>
Accelera3on
of
Nature’s
Way’s
S&OP
Process
Maturity
Defined
CollaboraOon
and
Process
cadence
with
measurable
tasks.
>>
Visibility
to
Demand
&
Supply
in
a
single
solu3on
Sales,
MarkeOng,
OperaOons
and
Finance
working
from
a
single
plan.
>>
Real
Time
Scenarios
anywhere
in
Supply
Network
Real
Ome
What-‐If
Scenarios
in
Supply
Planning
give
quick
insight
to
adjustments
required
to
meet
demand.
>>
Real
3me
analy3cs
support
key
decisions
Access
to
key
decision
making
data
with
defined
&
add-‐hoc
analyOcs
and
planning
views
.
KEY
BENEFITS
Key
Considera3ons:
IBP
Processes
involve
all
Departments
C-‐Level
Sponsorship
is
CriOcal
Cross
funcOonal
teams
are
key
to
success
Execu3ve
Support
Stack
Successes
Grow
SoluOon
with
your
Process
Maturity
Implement
in
Phases
Manageable
Phases
Define
IBP
data
needs
Determine
Data
IntegraOon
Frequency
Commit
to
Clean
Master
Data
Know
your
Data
Know
your
business
and
process
Consider
Ome
constraints
of
project
team
Include
Ome
for
Corporate
Change
Management
Realis3c
Timelines
Process
and
SoluOon
Engineering
in
Parallel
will
increase
scope
and
risk
Draw
from
experienced
implementaOon
team
Build
a
team
with
Diverse
Skillsets
Experience
Ma5ers
Brands
Including:
Nature’s
Way,
EnzymaOc
Therapy
and
IntegraOve
TherapeuOcs
Retail,
Mass,
PracOOoner
and
InternaOonal
Business
Units
Nature’s Way: Integrated Business Planning Journey
40. Abstract
Speed
and
complexity:
lessons
learned
and
best
prac3ces
in
implemen3ng
SAP
IBP
for
companies
of
different
sizes
and
different
business
process
variants.
This
session
will
detail
the
main
differences
of
an
SAP
IBP
implementaOon
within
companies
of
different
sizes
and
different
business
process.
For
a
successful
and
effecOve
adopOon
of
SAP
IBP,
come
and
hear
real
project
experience
covering
the
following
dimensions:
• S&OP/IBP
global
templates
rollouts
vs
one
instance
implementaOons
of
mulOple
process
variants
• Global
roll-‐outs
of
Demand
Planning
challenges
vs
Demand
and
Supply
balance
processes
• Integrated
planning
implementaOons
(i.e.
with
SAP
PPDS)
vs
stand-‐alone
SAP
IBP
• Planning
vs
ReporOng
• How
to
support
IT
organizaOon
in
smaller
or
larger
organizaOons
• Data
quality
and
governance
