Please download our webinar to hear how Sony Computer Entertainment America (SCEA) successfully launched the PlayStation 4 video game console in November 2013, connecting all the crucial people, processes, and data to help navigate its biggest product launch ever. During this free IndustryWeek webinar on March 13, learn how SCEA overcame challenges by using Sales & Operations Planning (S&OP), helping it forecast demand, deal with global volatility, and reduce risk. Prior to launching its PlayStation 4 video game console last November, SCEA automated its sales and operations planning (S&OP) to help it overcome many challenges common to manufacturers, such as demand forecasting and non-user-friendly processes built on old databases. Attend this free webinar to uncover how the company improved its forecast accuracy from 60% to 90%+, drove better profitability, and scaled its processes.

1. 1© 2014 Steelwedge Software, Inc. Confidential.
Single Line of Sight: Plan, Perform, Profit
IndustryWeek Webinar
Game On! Sony Plans for Profitability with S&OP
Technology

2. Game On! Sony Plans for
Profitability with S&OP Technology

3. PlayStation has the Most Popular Video Games
3

4. 4
Movie Here

5. Sony Computer Entertainment America
SCEA is a division of SONY Corp of America
 PlayStation® game console introduced in USA 1995.
 Responsible for PlayStation brand in USA, Canada, and Latin America.
 Platform categories are Hardware, Software, Peripherals, and Digital.
 Tough planning cycle with long lead times on Hardware and Peripherals.
PS4 PS3 PSNPS Vita

6. 2010 - Impetus for Change and
Current State of S&OP
● We needed to get S&OP going for fall
2013 release of PS4.
● SCEA not organized functionally.
● Strategy executed from annual budget.
● Reporting is not planning.
● No single source of truth.
At 15yrs, we were
the world’s oldest
start-up!

7. S&OP: SCEA’s Journey
7
H1 2010
Education and Initial
Assessment
S&OP Roadmap
H2 2010
Build Foundation
Capabilities
Consolidated Item Master
NPI Milestone Review
H1 2011
S&OP Design
Complete
S&OP Process Defined
S&OP Calendar Established
H2 2011
Pilot S&OP and Select
Technology
Tool Selection and
Implementation

8. H1 2012
Full S&OP
Implemented
Full Senior Exec Team &
CEO included in Exec S&OP
S&OP: SCEA’s Journey (cont.)
8
H1 2013
S&OP Process
Expansion
Innovation Pipeline
Review and DSR
H2 2013
S&OP Process
Execution
PS4 Launch Results
H2 2012
S&OP Business & Scope
Expansion
Financial Integration
Telescopic Calendar
H1 2012

9. Comparative Sales Results at
Launch
Hardware 0.9M 2.3M
Software 1.9M 4.8M
Peripherals 1.1M 2.1M
Total Revenue $0.7B $1.3B
Source: NPD US, Nov’13 ~ Jan’14, Nov’06~Jan’07.
First 3 Months of Unit Sales

10. Crawl-Walk-Run-Sprint: Methodology & Fast Returns
10
Phase One with :
•Demand planning and an executive engagement
phase of the total sales and operations planning
(S&OP) life cycle.
Over the course of four months, Steelwedge worked with
SCEA to:
•Automate the data integration process to sync
plans into a single view and minimize risk of errors
from multiple sources.
•Provide executive-level visibility to the demand
forecasts to show the financial impact of changes
in forecasts to inform business priority decision-
making.

11. Crawl-Walk-Run-Sprint: Methodology & Fast Returns
11
Phase Two with
• Synchronized new forecasting strength via supply planning and
collaboration with SCEA corporate suppliers and telescopic planning.
•SCEA enabled Telescopic Planning for easy movement between weekly
and monthly planning periods, allowing a much closer, more frequent
look at impacts to its supply and demand.

12. Looping Back to Leap Forward
Demand
Signal
Forecast
Process
Allocation
& Supply
Planning
Better
Demand
Signal
Drives
Forecast
Accuracy
Improves
Supply
Planning and
Allocation

13. S&OP Benefits with Steelwedge
13
● Profitability
 SCEA forecast accuracy improvement from 60% to ~85% immediately
drives better profitability.
 SCEA now has enough data insight to push from SKUs to channels, more
intelligently.
● Market Share
 Better consensus planning, powered by Steelwedge, helps SCEA make
better Supply, Demand and tradeoff decisions, due to more reliable data.
 The faster to market, the better the market share potential.
● Scalability
 The cloud-based solution from Steelwedge allows SCEA to power its
process in scope with its evolving market.

14. Profitable Supply/Demand Tradeoffs at Sony
“Steelwedge provides the visibility we require to run our business, and
delivers it in a way that is intuitive for business users to
consume. Steelwedge has the secret sauce of a high performance
system that is easy to understand. Steelwedge is planning on steroids.
It’s a truly unique offering.”
Sree Vaidyanathan
Director of Business Applications
Sony Computer Entertainment America
14
High ~85%
forecast accuracy
(up from 60%)
1 million units
of PlayStation 4
preordered
2.3 million units
Sales of PlayStation 4
sold in first 3 months
Success by the Numbers:

15. 15© 2014 Steelwedge Software, Inc..
Single Line of Sight: Plan, Perform, Profit
Agility Webinar Series
Game On!
Sony (SCEA) Plans Profit with S&OP Technology

16. 16© 2014 Steelwedge Software, Inc..
Agenda
• Problem: The Spreadsheet Approach
• Solution: S&OP Automation
• Key SCEA Success Areas
• Q & A

17. 17© 2014 Steelwedge Software, Inc..
Pre-ESOP
Ground Reality: Trying It With Spreadsheets
Demand
Planning,
SCM/APS
Systems
ERP, Financial,
& Transactional
Systems
SAP, Oracle, etc.
Industry
Data
Consolidation,
Review,
Overrides
Data
Collection,
Reconciliation
Consensus
Process ESOP
Operations
Marketing
Sales
Finance
Manual
Complex
Security Risk
Not Scalable
Does this Give Executives
an Agile Decision Making Process?
Systems Landscape

18. 18© 2014 Steelwedge Software, Inc..
Change Your Reality; Drive S&OP Adoption & Values
Time
L1
L2
L3
L4
Q1 Q2 Q3
Step Change
Maturity &
Performance
Avoid Process
Failure
Q4
Value
Accelerated
Time to Value
“Companies can have a hard time getting past basic levels of S&OP without
technologies like Steelwedge to support the process”
-Tim Payne
VP Supply Chain Analysis, Gartner

19. 19© 2014 Steelwedge Software, Inc..
Best Practice S&OP
Aligns People, Process & Systems
“We continue to look at S&OP as an
aspect of business that
needs terrific improvement…
It’s hard to argue this shouldn’t be a
central piece of management software”
–Rob Kugel, Ventana Research

20. 20© 2014 Steelwedge Software, Inc..
Return on Investment is Substantial
Value Levers
50-70% Reduction
15-30% Improvement
20%-25% Reduction
25% Reduction in
Stock-outs
1-2% Lift in Revenue
Typical Results

21. 21© 2014 Steelwedge Software, Inc..
S&OP Success with Steelwedge
Demand
Planning,
SCM/APS
Systems
ERP, Financial,
& Transactional
Systems
SAP, Oracle, etc.
Industry
Data
Single Cross-Functional
Planning Environment
Interactive planning for:
• All S&OP Stakeholders
• Plan Review
• Overrides
• Assumptions
• Scenarios
• Consensus Process
• Pre-S&OP
• Executive S&OP
• Audit Trail
Systems Landscape
Product / Sub-Family
Customer
Revenue
Product / Family
Territory / Region
Revenue
Product / Family
Promotions
Revenue
Product / Family
Region
Units & Revenue
Product
Stock Locations
Units and Inventory
Family / Series
Territory / Region
Revenue, Margin & Cash
Family / Series / BU
Geo
Revenue, Margin & Cash
Product
Production Site
Units and Capacity
Family / Series / BU
Geo
Revenue, Margin & Cash
Family / Series / BU
Geo
Revenue, Margin & Cash
Planning TermsStakeholders
Account Managers
Sales Managers
Marketing
Demand Planners
Supply Planners
Production Planners
Finance
Executives
Customers
Suppliers
Cross-functional
Planning
Environment

22. 22© 2014 Steelwedge Software, Inc. Confidential.
Managing the Translation between Functions
Sales, Marketing,
Product Management,
Demand Planning
Demand
Inventory, Production,
Procurement and
Allocations
Supply
Profit & Loss,
Balance Sheet
Finance
Executive
Dashboards
Executive

23. 23© 2014 Steelwedge Software, Inc. Confidential.
Planning
Dashboard
Steelwedge Enterprise
Enabled Excel
Slice of view
(hierarchy)
Time series of
key figures
Planning data
for review and
updates
Planning Views Combine Planning, Analytics in Familiar UI
Capture institutional
knowledge /
assumptions

24. 24© 2014 Steelwedge Software, Inc. Confidential.
Why Steelwedge?
• 100% S&OP Focus & Best Practices
• Proven Track Record of Delivering S&OP
• Ease-of-use, Flexible & Scalable Solution
• Power of the Cloud to Leverage Big Data
• Leverages Existing Investment in Systems
• Crawl Walk Run Approach
“We’ve built a lot of structure to power our agility with
people, process and technology at Contech.
I need a holistic view and Steelwedge delivers. There are
very few out there that can do what Steelwedge does.”
- Randy Ramsey, Director Supply Chain, Contech

25. 25© 2014 Steelwedge Software, Inc..
Steelwedge is a strong leader in S&OP and IBP
“Steelwedge is an ideal solution for a heterogeneous environment with multiple S&OP processes
with inputs from multiple ERP and APS technologies.”
Lora Cecere
Founder and CEO, Supply Chain Insights
“Steelwedge has grown into one of the market's leading S&OP solutions". “Steelwedge has
proven that it provides a capable and scalable Stage 3 S&OP solution suitable for global
deployments.”
Tim Payne
Research Vice President, Supply Chain Research Group, GARTNER
Steelwedge was among the highest ranked in capabilities scoring and was one of “the vendors
that were notable in portfolio strategy and portfolio benefits delivered.”
Simon Ellis
Supply Chain Practice Director, IDC

26. 26© 2014 Steelwedge Software, Inc. Confidential.
Crawl – Walk – Run Approach
• Key to success is incremental value
• Crawl: plan ahead with end in site
• Walk: implement single solution
• Run: measure, improve, expand
• Sprint: align, integrate, monitor
• Start with quick win as phase 1 & foundation
• Expand the roll-out adding value as you go