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4 Steps to Becoming a Predictive Business

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Why Is Becoming a Predictive Business Important?

2 Reasons:
First, we all know that business is becoming more global and executives need better ways to understand demand from many new and wildly different markets.

Second, technology is finally catching up to the need to be able to predict market demand and then quickly match up resources for production and delivery – to become a predictive business.

Here are 4 ways to do it.

Published in: Business

4 Steps to Becoming a Predictive Business

  1. 1. NO. 62E-Book SAP Center for Business Insight |Brief |Q&A |Case Study |Inquiry |E-Book Steps to Becoming a Predictive Business
  2. 2. E-Book: 4 Steps to Becoming a Predictive Business2 NO. 62©2014 SAP AG or an SAP affiliate company.All rights reserved. Two reasons: First, we all know that business is becoming more global and executives need better ways to understand demand from many new and wildly different markets. Second, technology is finally catching up to the need to be able to predict market demand and then quickly match up resources for production and delivery – to become a predictive business. Here are 4 ways to do it. Why Is Becoming a Predictive Business Important?
  3. 3. E-Book: 4 Steps to Becoming a Predictive Business3 NO. 62©2014 SAP AG or an SAP affiliate company.All rights reserved. Disruptions can be much bigger than a supplier running out of a component. The growing frequency of flooding, droughts, hurricanes, tsunamis, and carbon pollution are cutting into bottom lines, ruining brand reputations, and disrupting business on a global scale. Predictive analytics and automated monitoring tools can be on the lookout for red flags, such as an increase in late shipments or a fire at a plant, and alert the right people before the entire production line grinds to a halt. Read more in The Future of Resource Management: Become Predictive. Predict Disruptions Before They Happen 1 Fewer than have direct connections with suppliers 10% Supply Chain Professionals: Only have information available within 1 day 20%
  4. 4. E-Book: 4 Steps to Becoming a Predictive Business4 NO. 62©2014 SAP AG or an SAP affiliate company.All rights reserved. Determine the Best Actions toTake2 Companies collect tons of data; the big issue is how to make the best decisions from it.NewYork City’s Mount Sinai Hospital ran hundreds of simulations to optimize its patients’first 8–12 hours in the hospital. That analysis helped improve utilization,which had the financial effect of adding 100 new beds – without actually adding a single one. Source: ZacharyTumin, Doing Business the Data-Driven Way (Ariba 2013)
  5. 5. E-Book: 4 Steps to Becoming a Predictive Business5 NO. 62©2014 SAP AG or an SAP affiliate company.All rights reserved. Gilt Groupe, the leader of online flash, or deal-of-the-day, sales, sends 3,000 highly targeted e-mails to its 3.5 million members each day. The messages predict what items members will like based on what they have shopped for in the past and what others who bought similar items like. Gilt updates its predictions daily and shares detailed demographic portraits of who’s buying what with its brand suppliers to help them understand and better target customer demands. Source: ZacharyTumin,Doing Business the Data-Driven Way (Ariba 2013) Act Fast3
  6. 6. E-Book: 4 Steps to Becoming a Predictive Business6 NO. 62©2014 SAP AG or an SAP affiliate company.All rights reserved. Intangible assets – essentially the knowledge embedded in your products, services, processes, and employees – are key factors for building a more predictive business. Here are three strategies for keeping intangibles, and therefore your company, from stagnating: Manage Your Intangibles4 • Don’t create isolated skunkworks. Innovation actually benefits from corporate knowledge. Integrate entrepreneurial teams with staff who are experts on corporate process. • Share intangibles. Partnering might be the optimal path to innovation given the so-called patent cliff when patents expire. Companies can cooperate on innovation and compete on a higher level, such as packaging and design. • Rethink traditional roles. Those who are closest to the data, such as supply chain managers, have the power.Try partnering them with R&D and marketing to bring a real- world perspective to innovation. Read more in The Future of Resource Management: Become Predictive.
  7. 7. To get the full story, download the in-depth report The Future of Resource Management: Become Predictive and the expert Q&A Redefining Resource Management. E-Book: 4 Steps to Becoming a Predictive Business7 NO. 62©2014 SAP AG or an SAP affiliate company.All rights reserved. There’s More The SAP Center for Business Insight is a program that supports the discovery and development of new research-based thinking to address the challenges of business and technology executives.
  8. 8. SAP Center for Business Insight |Brief |Q&A |Case Study |Inquiry |E-Book © 2014 SAPAG or an SAP affiliate company.All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG (or an SAP affiliate company) in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, andSAPAGoritsaffiliatedcompaniesshallnotbeliableforerrorsoromissions with respect to the materials. The only warranties for SAP AG or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP AG or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein.This document, or any related presentation,and SAPAG’s or its affiliated companies’strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP AG or its affiliatedcompaniesatanytimeforanyreasonwithoutnotice.Theinformation in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differmateriallyfromexpectations.Readersarecautionednottoplaceundue reliance on these forward-looking statements, which speak only as of their dates,and they should not be relied upon in making purchasing decisions.

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