Create a Connected Enterprise
• The best performing companies understand the importance of creating a connected and
profitable enterprise.
• Too many companies still have siloed and disparate planning processes and it can take a long
time to understand the impact of a change in operations on your financials.
© 2018 eCapital Advisors, LLC. 3
Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results.
- Andrew Carnegie
Benefits of Connected Enterprise
© 2018 eCapital Advisors, LLC. 4
Alignment
Communication
Timeliness
Accuracy
Collaboration
Problem Solving
8© 2018 eCapital Advisors, LLC.
Challenge Approach
Manual intranet reporting Identify a solution that supports
company sales and margin growth
Limited metrics on reports Identify a solution that supports location
assortment strategies
Reporting required IT support for
changes
Identify a solution increases efficiencies
– central repository for all to access
Process was not scalable for future
growth
Allow quick access to data
Opportunity to be more analytical and
proactive with data
Improved accuracy of reporting
© 2018 eCapital Advisors, LLC. 17
Cross-functional business activities
…allow faster insight to drive business profitability
Business Decision Example Financial Impact Operational Impact
Promotional Timing
change
Decision made to
move major sale to
week later due to
holiday shift
• Financials shift or adjust
• Impact to surrounding
weeks
• Store labor adjustment needed
• Production updated
• Shipping schedules updated
• Advertising change
• Customer Service alerted for staffing update
• Finance updates needed
Retail price increases
based on higher
material costs
Retail prices
increasing due to
market conditions
and manufacturing
cost increases
• Margin impact – rate higher
but need to monitor $
• Possible sales unit impact
dependent on price elasticity
• Average unit sale change
• Merchandise team to update retails
• Stores update signage and possible tickets
• Shipping may have to relabel prior to shipments
• Website to update
• Communication needed to all channels
• Marketing needs to update all advertising/materials
Delivery date moves
out for new
collection
Issues with quality
and product
introduction is
delayed by one
month
• Lost revenue/profitability
• Lost market share
• Shipping adjustment
• Store presentation update needed
• Website to delay introduction
• Marketing adjustments will be needed
• Finance needs to update revised forecasts
Sales trend changes Sales trend below
plan and forecast by
10% due to
economic
conditions
• Negative impact to revenue
and profitability
• Inventory overstocks
(“undersold”)
• Higher carrying cost of
overstocks
• Demand plan updates needed
• Production updates need to be lowered
• Material planning adjustment needed
• Labor adjustment
• Shipping dept to be alerted and update scheduling
• Possible capacity issue in warehouse/stores if overstocks
• Merchandising/Marketing – adjustments needed to change offers
• Finance to update sales and margins and carrying cost of additional inventory
1. Improved in-stocks resulting in increase in sales
2. Reduced overstocks resulting in lower carrying costs and reduced markdowns
3. Greater manufacturing efficiencies, due to higher forecast accuracy
4. Ability to adjust assortment offering, promotion offer or pricing, resulting in higher sales and margins
5. Greater efficiency – >50% time savings
6. Optimized labor – stores, warehouse shipping, due to alignment of cross-functional metrics
Quantifiable Results
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Shoe Sizing…Allen Edmunds Advantage
• Shoe size is more than length. Width is just as important. We have big, small, narrow,
wide and everything in between.
• Because we are the manufacturer, we can handcraft shoes in varying sizes.
Competitive shoe companies make their shoes overseas and to keep inventory low,
they make only "gut" sizes (e.g., 10-12 medium) that supposedly fit everyone. As a
result, most men wear shoes that are too long for their feet as they need the room to
accommodate their foot width. Men who get fitted by a Master Fitter are surprised to
learn they have never worn a proper fitting shoe.
• From size 6 to 16 and narrow AAA to wide EEE, we craft over 100 sizes of shoes.
• Proper fit is important for durability and comfort along with foot and back health.
• To get the best fit possible, our Master Fitters in our stores help you try on any of our
thousands of pairs in each store.
22© 2018 eCapital Advisors, LLC.
Results… Continuous Improvement
© 2018 eCapital Advisors, LLC. 23
Overall Time Savings!
>50%
Consistency of reporting
Less duplication of workload
More detailed data
readily available
AccuracyFlexibility of Reporting
Breadth and depth of
data
Key Takeaways
© 2018 eCapital Advisors, LLC. 24
• Requirements
• Alignment on metric calculations and hierarchy• No assumptions
• What the business has, what the business needs
Requirements
• DesignFlexibility
• Dedicated implementation team
• Training• Post training
• On-site consultant
Team & Training
• Testing + regression testing
• Test environmentTesting
Competitive
Advantage
MANAGEMENTEXCELLENCE VIA EPM
OPERATIONALEXCELLENCE VIA ERP
1Make Smart decisions with
deep insight
2Gain Agility to adapt, and drive
decisive actions
3Ensure Alignment in the
extended enterprise
4Drive down Cost of processes
and operations
5Improve Quality across the
organization
6Increase Speed of transactions
in the performance network
NEED HEADLINE
© 2018 eCapital Advisors, LLC. 26
Integrated
Analytics
Integrated
Processes
SCM
PLMCRM
ERP
HCM
Financial
Close
Supply
Analytics
Demand
Analytics
Finance/Risk
Analytics
Management
Analytics
Integrated
PlanningOperational
Planning
Profitability
Cost Mgmt
Financial
Planning
Strategic
Planning
NEED HEADLINE
© 2018 eCapital Advisors, LLC. 27
Grander vision
Decision optimization
Greater business impact
Financial performance
Common focus
Cross-functional transparency
Share information…
Enable data access…
Identify outliers…
Operational excellence…
Establish enterprise goals…
Create enterprise analytics…
Finance Analytic Driven Insights
29© 2018 eCapital Advisors, LLC.
▪ Role-based reporting and
analytics; within Finance and
integration to select functions
▪ The right information and KPIs;
“less is more”
▪ Driver-based planning with
streamlined, integrated calendar
▪ Data governance, stewardship,
and management
▪ Aligned talent and capabilities
▪ Integrated technology platform
Today’s “Playbook”
Visualization
Predictive Modeling
Social
Collaboration
MAINSTREAM EMERGINGADVANCED
The Digital Promise
Digital
Analytic
Roles
Data
Integration &
Governance
Cloud
Adoption
Digitally
Accessible
Insights
Big DataRobotics
Partnering with business to develop strategic, operational and financial plans, manage execution to those plans and makes decisions based on insight derived via analytics
Data Management Best Practices
• Common master data management
• Business managed integration processes
• Provide self service data investigation
• Deliver full audit trails and reporting
• Integrate Management & Operational Systems
Common MDM
2XReduction Process
& Rework
30%Reduction Data
Collection
1/3
Information Delivery Best Practices
• Common analytic standards
• Ensure data governance
• Create integrated catalog of KPI
• Link financial & operational data
Fewer Business
Reports
64%Reports from
Central Source
44%Greater Confidence
in Information
70%
Advanced Analytics Best Practices
• Industry specific analytics
• Link revenue & cost to business drivers
• Provide self service data investigation
• Deliver full audit trails and reporting
• Integrate Management & Operational Systems
Increase Predictive
Capability
6XReduction Data
Validation
42%Faster Response to
Ad-hoc Requests
29%
© 2018 eCapital Advisors, LLC.
Where do you go from here?
• Assess where you are today• People, Process & Technology
• Governance, policies, and “why do we do that?”
• What can’t you do today?
• Tie your strategy to company vision
• Plan to Prepare
• Directionally correct and swift decision vs. slow and perfect
• Avoid analysis paralysis
• Expectations for outcomes – What does “success” look like?
• Prioritize short- and long-term goals
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© 2018 eCapital Advisors, LLC.
Where do you go from here?
• Assess
• Company Vision
• Plan to Prepare
• Directionally Correct
• Expectations
• Prioritize
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© 2018 eCapital Advisors, LLC.
Driving Performance Improvement
Transformation
• Strategy
• Program Leadership
• Education
• Change Management
Analytics
• Data Management
• Data Science
• Visualization
Performance Management
• Business Modeling
• FP&A Leadership
• Financial Consolidation
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ANNUAL
REVENUES
25M
EMPLOYEES
80+
CUSTOMERS
300+
ESTABLISHED
2001HEADQUARTERS
MSP
PLATINUM
PARTNER