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.

1. 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
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SUPPLY CHAIN MOVEMENT , N o . 3 , Q3 2013
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