GeP Solutions:Multi year Product planBabu AppunnyMBA, B Tech, Six sigma black beltBabu_c_appunny@yahoo.com+91 9010 320 471 or +91 40 4026 8845
Note• This presentation is intended to share my thought process in developing Multi year Product plan for GeP’s software suite.• As an outsider I have limited information about your organization’s competencies and product features; hence there is high probability that these ideas have been implemented or considered.
Agenda• Industry trends and software trends• Uncertainty and Impact analysis of the trends• Product ideas• Backup slides
Trends affecting sourcing software industrythe trends of today will become stronger and shape the industry tomorrow Mega Global Forces Competitors & Substitutes Social, Technological Economic, Political, Environmental • M&A in Industry: Large IT Companies’ acquisition specialized supply Chain companies (IBM and• Appreciation of Chinese currency and growth in Emptoris), driving consultancy and Technology sourcing activities from other countries in East Asia support together• Restriction on financial services • Logistics companies’ entry (eg. UPS) in the supply chain optimization Changing Capabilities Customers Competences, Suppliers, Partners & Networks Consumers, Channels, Influencers • Supplier involvement such as “reverse bidding”• Data exchange among multiple MIS systems • Security and legal concerns on SaaP• PaaS (Platform as a Service) • Supplier risk management• Mobile computing • Optimization: Improving overall supply chain efficiency Detailed descriptions on the risks are in the backup slide
Impact and uncertainty analysisHigh impact and high uncertain trends will be the differentiators tomorrow # Trend Name SW Scope High Change is clear hence all players1 Appreciation of Chinese No currency will be prepared to face the 10 11 8 challenges2 Restriction on financial services Yes3 PaaS (Platform as a Service) Yes Tomorrow’s differentiator: 9 Under prepared players loose4 Mobile computing Yes 4 the market share and prepared 2 players surge ahead in market Impact5 M&A in Industry No6 Logistics companies’ entry No7 Data exchange among multiple Yes 7 MIS systems 3 Not Critical8 Supplier involvement, Yes9 Security and legal concerns on Yes SaaP10 Supplier risk management Yes Low11 Optimization: Improving overall Yes supply chain efficiency Low Uncertainty High• The trends that have no impact on Software have been omitted.• Through the price is the most obvious factor in sourcing, the overall value optimization (11) and riskmanagement (10) are most important factors to the customer. Hence the software tools that helps thecustomer to achieve those will win in the market place.
New modules in GeP software suite eRiskManagement and eOptimization addressing critical trends Technology /Module Remarks Description eSpend, eRFX / Existing All existing modules supporting various facets of supply eAuctions, eContract, chain management ePurchase, eCompliance eRiskManagement (Item eSupplier I assume that eSupplier is taking care of this feature. #10 in the trend chart) Currently the companies are managing the risks through static database or spread sheet. The proposed module will continuously “rate” the supplier based on various risk factors considering not just initial parameters but regular deliverables on every measured factors such as price changes, defect rate, forex variations etc. eOptimization (Item #11 New A mathematical modeling software that integrates risk in the trend chart) Module management and operational research and suggests the best possible scenarios for the companies.• Detailed descriptions on the risks are in the backup slide• Other trend items in the “high Impact” and “low uncertainty” should have implementation plans too.As these trends are very visible every player, including GeP, are implementing the changes to meet thecustomer needs out of those trends
Trend description SW# Trend Name Description Scope1 Appreciation of Chinese No Will create the demand for products from certain other countries in the region, currency complicating supply chain process and increasing the supply chain risk2 Restriction on financial services Yes Some countries, such as China and Germany, restricts the flow of financial information to a server outside the their country. This puts some burden on compliance software.3 PaaS (Platform as a Service) Yes Though this model has a potential to change industry as the way saleforce did in CRM, the full PaaS conversion is not expected soon owing to the restrictions and concerns on financial services and contract management modules.4 Mobile computing Yes Existing and new development will have to consider Mobile computing.5 M&A in Industry No Can affect the competitive landscape significantly. Emptoris can leverage technology and process consulting practices in IBM6 Logistics companies’ entry No UPS has taken-up some supply chain improvement works with some of its clients Toshiba for example. UPS, with their existing client base, can be a formidable force in the industry.7 Data exchange among multiple Yes Customer companies expect the supply chain management companies to enable the MIS systems saving though customers’ multiple business units are working on different ERP systems.8 Supplier involvement, Yes Real time data sharing between company and its supplier to create value creation opportunities, including but not limited to reverse bidding.9 Security and legal concerns on Yes Some modules like contract management will remain “on premise” owing to the legal SaaP complexity involved.10 Supplier risk management Yes There is a need for tool that helps the customer to pull-in all risk related information, and create performance report, real time basis.11 Optimization: Improving overall Yes A tool that simulates different scenarios and thus helps the customer to make right supply chain efficiency supply chain decisions.
eRiskManagement and eOptimizationTechnology /Module DescriptioneRiskManagement Price was the first reason for a global supply chain to grow. Global supply chain brings too many risks into the operations of a company such as lead time, quality, continuity, forex, capacity, inventory size, credit terms, financial risk of supplier etc. A spread sheet isn’t strong enough to process complexity of so many diverse parameter set.eOptimization A module that runs different “what if” conditions based on risk probabilities and informs the customer about the possible outcomes. For example how many days of uninterrupted operation is possible if Tsunami were to hit Japan once again.