Many people are stressing the importance of digitization in SCM. Haven't we been trying to represent the real supply chain on the digital model for the last 25+ years? What's really new to supply chain management if we implement the digital enterprise? More importantly, what's the real opportunities from the supply chain management perspective?

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Digitization:
What does it mean to Supply Chain Management?
Hae-Goo Song
Ph.D., VP of Supply Chain Solutions at o9 Solutions
Add Digital Speed and Intelligence to Your Decision Making Processes

2. The information contained in this presentation is confidential and proprietary to o9 Solutions. All unauthorized use and reproduction or distribution is prohibited.
dig·i·ti·za·tion
noun COMPUTING
“the process of converting information into a digital format”
“the representation of an object, image, sound, document or signal (usually an analog signal) by
generating a series of numbers that describe a discrete set of its points or samples.”

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Drivers for Digitization
What are their practical impacts?
Cloud
IoT
Big Data
Social Media
Mobile
Drivers
Data Sensing & Exchanging
Data Sharing
Data Processing & Analysis
Data Consumption
Impact
Variety, Volume, Velocity
Changes
Customer’s Behavior
Business Model
Process

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Digitization in SCM System
The Changes
SCM
Process
Consumer Data
Consumption Data
Assumptions
Risks & Opportunities
Operating Data
Initiatives (Marketing, etc)
More Input More Accurate Output
Prediction
Plan
Correlation
Decision
……
Insight
Faster & Better Processing
Effectiveness, Efficiency, Speed

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Digitization in Supply Chain
Innovation Cases
Logistics Planning
Design &
Production
Simulation
Assortment Plan
Replenishment Plan
Demand Sensing
Production
Automation
Real-Time
Monitoring
Predictive
Maintenance
Value-Added
Services
Sell/UseBuy/Make/Move
Planning
Execution
• Smart Vending Machine – Coca
Cola
• Smart Shelves – Kraft, Kroger
• Tire Navigator – Bridgestone
• Smart Diapers – Pixie, Kimberly-
Clark
• Instant Ink - HP
• Smart Port – Hamburg
Port Authority
• Production Line
Simulation - Maserati
• Connected Toothbrush – P&G,
Kolibree
• Connected Cars (Maintenance,
Accident, Concierge)
• Smart Farms – Caterpillar, John
Deere
• Assembly Automation –
Maserati Ghibli
• Automated Assembly
• Fleet Tracking – UPS
• Logistics Monitoring –
Fedex (SenseAware)

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Value Added Products
Smart Diapers

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Connectivity: Real-Time Monitoring
SenseAware
• Current Location
• Accurate Temperature
• Light Exposure
• Relative Humidity
• Barometric Pressure
• Shock
• Route Alert
• Location Alert

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Factory Automation
Smart Factory - KL
http://www.smartfactory-kl.de/

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Demand Sensing
Assortment planning based on market intelligence
Target Customer
Segments
(Personas)
Attributes
Analysis by Zip
Code
Attributes
Mapping for
Product Category
Trade Area
Clustering
Product A Product B Product C
Median Income Income Income
Median Age Age Age
Graduation Ratio Female Spending Graduation Ratio
Married Factor Gender Ratio No. of Females
Married with kids<6 Pollution Levels (A,
B, C..)
Female Income
Married with kids >6 Allergy (37, 50, 80) Total Population
Total Population Couples Children <18
§ Median income, age
§ Education level
§ Marital status
§ Family structure
(# of persons, kids, etc)
§ Gender
§ Owner / Renter
§ Pollution, Allergy
Store Coverage &
Performance
Analysis
High Potential Stores
§ Competitive
assortment review
§ Identify uncovered
potential stores
§ Identify low
performance high
potential stores
Assortment Plan
Recommendation

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What about Core Planning Processes?
What are potential opportunities?

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What were Challenges?
Lessons learnt from the customers
Fast Decision
Making
(Planning)
Business
Insight
A Day in the Life
of Planner
(DILOP)
Beyond
Numbers
Qualitative Intelligence
§ Assumptions behind the Numbers
§ Risks & Opportunities
§ Reason Code(Drivers) for Gaps
§ Initiative Management
Fast Response, Scenarios, &
Collaboration
§ Fast Planning
§ Scenario Planning / What-if Simulation
§ Intelligence Propagation
§ Real-time Collaboration
Comprehensive Workflows
§ Data Management (Master,
Dynamic, Business Rules)
§ Data Validation
§ Plan Dashboard & Analysis
§ Interactive Planning
§ Guided Problem Resolution
§ Exception Management
Intelligent Analytics
§ Root-cause Analysis
§ Demand Shaping Opportunities
§ Capacity Risks
§ Inventory Risks
§ NPI/EOL Risks

12. The information contained in this presentation is confidential and proprietary to o9 Solutions. All unauthorized use and reproduction or distribution is prohibited.
Digitization: New Enablers for SCM Transformation
Technology roadblocks on SCM transformation are gone
• Leverage Mobile (Insight at
your Fingertips)
• Promote Collaboration
(People to People)
• Real-time Visibility (Across
Regions, Networks,
Functions)
Connectivity
• Consumption (Usage) Based
Replenishment
• Intelligence Sensing &
Propagation (Smart Alerting
& Sharing)
• Data & System driven
S&OP (Reports Automation)
Automation
• In-Memory Platform (Speed)
• Cloud Computing (Fast
Deployment & Adaptation )
• Open Platform Architecture
(Expandability & Flexibility)
Technologies

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Add Insights to SCM Decision Making Processes
3W-Insights Framework for SCM Process
What
Happened
and Why?
3W-Insights
What should
we do?
What is likely
to happen?
Post-Game Analysis
• Gap Drivers
• Reason Codes
• Guided Analysis
Risks & Opportunities
• Assumptions & Pulses
• Smart Alerts
• Anticipated Risks &
Opportunities
Proactive Corrective-Actions
• Counter-Measures
• Collaborative Scenario Planning
• Rapid Exceptions Management

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Digital S&OP
System driven and insight rich meeting
Market Insight Driven
Integrated Business Planning Process

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Implement Glo·calization
Add regional excellence to global governance
SA Europe APJ Middle East
Demand Network
NA
Supply Network 2Supply Network 1 Supply Network 3
Global Federation Model
Implement Global Demand-Supply
match by Product line (Business Unit)02
Implement Regional Incremental
Demand-Supply Match across
product lines (business units)
(Segment Planning)
03
Build Solutions on a Single Platform04
Implement Global Integrated
Demand Planning Process and
System
01

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Adopt All-In-One Planning Solutions
Real-Time plan visibility across the board: single view
One View, Real Time, Connected System with Data Integrity
CEO
Executives
Managers
Planners
CEO
Executives
Managers
Planners
Report v1.0
Report v3.0
Report v10.0
W
e
e
k
s
~
M
o
n
t
h
s
Filtering
Tweaking

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Unconstrained Forecast Driven Constrained S&OP Plan Driven
$ ↔ Volume Disconnect $ ↔ Volume Synchronization
No Early Warning Mechanism Smart Alert, Risks & Opportunities Visibility
Finger Pointing & Blame Game Sharing the Facts and Solving the Issues Together
Slow and Infrequent (Quarterly, Monthly) Fast and Frequent (Monthly, Weekly)
“After the fact” based Corrective Action “Preventive” Corrective Action
Traditional S&OP New Generation S&OP
Unidirectional Reporting Workflows Multi-directional, Real-time, Collaborative Decision Workflows
Challenge on Data Integrity Focus on Data Insight
Aggregated Snapshot Information Live Information with Aggregation and Drill-Down Capability
Upgrade Your S&OP Process
Leapfrog your S&OP capability

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Reduce Decision Making Lead Time
Achieving the near-zero latency in your decision making process
Value
Lost
Action Time
Value
Time
Propagation
Latency
Data
Transfer
Latency
Decision
Latency
Risk & Opportunity Event
Shared Visibility
Scenarios Evaluated
Decision
Taken
Data Ready for Planning
Source: Dr. Richard Hackathorn, Bolder Technologies Inc.
Planning
Latency
Real-Time Propagation & Collaboration
Integrated
Email
Smart
Alert
Smart
Collaboration
Integrated Task
Management
All Planning Processes on single Platform
Business
Graph
High Performance, Analytics
& Planning Engine
Decision Support with Scenario Planning & Insight
Scenario
Planning
Visual Management
Digest
Approvals
Forecast
Assumptions
Ideas to
Initiatives
Linked Plan
Updates

19. The information contained in this presentation is confidential and proprietary to o9 Solutions. All unauthorized use and reproduction or distribution is prohibited.The information contained in this presentation is confidential and proprietary to o9 Solutions. All unauthorized use and reproduction or distribution is prohibited.
Digital Decision Management Platforms
Visibility Ÿ Analytics Ÿ Planning Ÿ Collaboration Ÿ Learning
Q&A