Mindmap operational-transparency-in-sap-en final
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The document discusses operational transparency challenges in a VUCA (volatile, uncertain, complex, ambiguous) world and how business intelligence tools in SAP can help address them. It notes that companies need visibility to intercept volatility, understanding to combat uncertainty, clarity to reduce complexity, and agility to neutralize ambiguity. The mindmap outlines how providing self-service business intelligence access to users can help by giving them quick answers to their questions and a predictive view to proactively manage changes.
Mindmap operational-transparency-in-sap-en final
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Mindmap for Operational Transparency in SAP SC M SUPPLY CHAIN movement changing requirements more frequent ad-hoc quicker reports better quality predictive Big Data overview talents knowledge management suppliers & distributors worldwide new supply new competitors scarcity natural resources sustainable sourcing alternative materials Growing IT capability (ambiguity) application in the cloud Software as a Service mobile applications/apps defogging drilldown to individual orders standard S&OP reports identification dynamic bottlenecks Gaining understanding use predictive analysis personal view measure indepencies inventory service level actionable information less communication noise operational control 1 2 Company impact Speed of change PLAN 4 3 Implications for operations Real Self-service Business Intelligence Operational Transparency in SAP Act Check DO Need to install additional control more internal regulations Governance Risk Compliance measure analyze act scenarios mitigation strategies roles responsibilities more financial reporting Global focus on core business redesign supply chains coping with demand reducing complexity outsourcing of processes reducing vendors mutual multiple dependency carbon footprint measurement CO2 emissions avoiding additional taxation emission swaps supply chain visibility improve order status overview bottlenecks late orders back orders improving forecasting improving customer service IT dependency systems as risks distrust IT department no overview of IT landscape long IT implementation time importance data quality garbage in, garbage out need for business intelligence Financial volatility stock exchange currency exchange inflation working capital availability Uncertainty more regulation local/regional industry FDA HACP financial IFRS Basel II SOX carbon taxation natural disasters changing demographics globalization Complexity aging people global HR pool attraction of talent talent retention emerging markets new demand demand volatility Cope with uncertainty Overcome organizational silos Changing need for information Changing IT environment improve operations buffer suffer (by choice) inventory capacity time cross-functional checks financial investigation aligning KPIs one number planning sales & operations planning integrated business planning demand planning supply planning financial gap analysis what-if scenarios handling Big Data better quality ability to learn relevant information clean data training staff facilitating systems sourcing manufacturing logistics financials integration of business applications integration of ERP instances SAP SRM Ariba SAP APO SAP ME SAP WM SAP TM SAP EC & ERP SAP BI & BW overview of licenses streamlining releases Creating visibility improved service levels reduced stock levels early bottleneck warnings reduced lead times reduced risks Creating clarity instant dashboard higher speed of calculation reduction of information lead times real-time SAP HANA in-memory remove hidden complexity built-in process knowledge personal customizing Develop IT agility IT compliancy SAP certified quickly implemented add-on low IT investment low organizational resist-user friendly interface function specific frequent use of software improved data quality data cleansing Enabling business users to directly access drill-down Business Intelligence is the solution for optimizing processes in a world which is constantly changing. The military calls this environment “VUCA” and it stands for: Volatility, Uncertainty, Complexity and Ambiguity. Maintain control, as well as flexibility, using smart IT applications that can deliver the required Visibility, Understanding, Clarity and Agility. Supply Chain Movement, along with Every Angle, supplier of a Business Intelligence add-on for SAP software, has created a mindmap with practical route descriptions and warning signs. Mindmap manual In today’s business world, the rate of change is continually increasing. In the military they call such an environment VUCA: Volatile, Uncertain, Complex and Ambiguous. For volatility, all you have to do is look at the financial markets. Uncer-tainty is expressed in increasing regula-tions, but also pertains to the probable introduction of a CO2 tax and unpredicta-ble natural disasters. Globalization, com-bined with the changing composition of the population, causes complexity in busi-ness. The ever-increasing availability of IT solutions creates a sense of ambiguity: is this an opportunity or a threat? A VUCA world forces companies to create a Plan. What does VUCA mean for companies? Companies are forced to utilize an increa-sing number of control mechanisms, such as internal rules and specific financial reports. At the same time, they focus on their core business, integrate acquisi-tions and centralize departments. The redesign of supply chains is a necessary consequence in order to meet the needs of customer demand. The dependence on IT consistently increases. Yes, a plan remains a plan without implementations by Operations, so: Do. In Operations you have three choices for dealing with uncertainty: Improve, Buffer (with supplies, capacity and/ or time) or Suffer (as a choice, not as a consequence). The traditional silos between company departments must be demolished. At the same time, the vari-ous function-oriented SAP applications must be integrated to be able to meet the changing information needs. Check the required information provisions. In a VUCA world, companies need to give the business user access to true self-service business intelligence in order to: intercept volatility with visibility; combat uncertainty with understanding; reduce complexity with clarity (think of dashboards you can set up yourself) and neutralize ambiguity with agility. They can do this through utilizing, for example, a software application that provides business users with quick answers to their questions. A predictive view creates confidence to manage proactively in a changing world: Act. Supply Chain Mindmapping Inventor’s mindmap: SUPPLY CHAIN MOVEMENT , N o . 3 , Q3 2013 36 SUPPLY CHAIN MOVEMENT , N o . 3 , Q3 2013 37