Building a Roadmap to Adopt SAP Integrated Business Planning (IBP)

Spinnaker Proprietary & Confidential 2015
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April 21, 2015
Building a Roadmap to Adopt
SAP® Integrated Business Planning (IBP)

Founded in 2002 as a Supply Chain Planning consulting firm,
Spinnaker Management Group has become a holding company for several brands.
350+ resources
200+ clients globally
Spinnaker Overview
ERP & CRM
Maintenance
HQ Denver
Supply Chain
Services
HQ Houston
Technology
Staffing Services
HQ Pittsburgh

Introductions
Jeff Baert
Senior Manager
• An SAP-focused supply chain
functional consultant with over 25
years of industry and IT
experience
• Experience with hands-on cross
module requirement analysis,
design/development, configuration
and client specific training
• Implementation experience in SAP
IBP/S&OP,APO
DP/SNP/PPDS/TPVS/Alert Monitor,
and ECC/MM/PP as well as
SAP/BW
Sunil Sanghani
Vice President
• SAP Practice Lead for Spinnaker
• Over 20 years of industry and
consulting experience - supply
chain, SAP
• Experience driving supply chain
transformations/improvements,
including organizational
development, process
reengineering, and systems
implementation
• Specialize in SAP based
transformation programs

Integrated Business Planning (IBP) –
One Acronym,Two Definitions
Process-Focused Definition:
IBP is typically used to refer to highly mature (Stage 3-4) Sales & Operations Planning (S&OP)
processes.At this point companies effectively synchronize the overall company and extended
planning process intended to align financial, supply chain, and go-to-market business decisions.
SAP’s Software Definition:
SAP Integrated Business Planning is a suite of planning applications focused on S&OP, Demand,
Supply, and Inventory Planning that provides essential technology support for achieving advanced
IBP capabilities.
S&OP/IBP Maturity Model
STAGE 1
REACTING
STAGE 2
ANTICIPATING
STAGE 3
COLLABORATING
STAGE 4
ORCHESTRATING
Development of an
operational plan
Demand and supply
matching
Internal cross-
functional
collaboration and
profitability focus
Extended supply chain
collaboration and
financial optimization
S&OP/IBP
Strategy
Goals

1. Share Spinnaker’s Point Of View on IBP
– Need for innovation?
– How SAP IBP is different and why it should be considered?
2. Understand how to adopt SAP IBP
– Prioritizing business challenges
– Realities of building a SAP IBP roadmap
– What can you expect from a Roadmap?
Goals ForThe Session

The Need for Innovation:
Recent Headlines

The Need for Innovation:
What’s Required
 Increasingly demanding customers
 SKU and option proliferation
 Shortened product life cycles
 Challenging market conditions
 Increased global competition
 Disruptive distribution models
 Risk in lengthy global supply chains
 Currency volatility
 Poor coordination across supply chain partners
 Internal disconnects between marketing, sales
operations, and finance
 External disconnects with suppliers, customers
and supply chain partners
 Ineffective technology enablement
 Non-scalable Excel-based planning
 Rigid advanced planning systems
 Ineffective reporting and analytics tools
 Lack of shared metrics
 Misaligned incentives across SC partners
 Collaborative, cross functional, structured
business processes
 Incorporating internal and external inputs
 Cross-functionally aligned operating plans
 Optimizing against integrated business goals
 Enabled by flexible planning technology
 Consolidating demand, supply, and inventory
data throughout the supply chain
 Supporting scenario modelling, dollarization,
and real-time status updates
 Providing a control tower of status and metrics
 Balancing critical resources
 People
 Capacity
 Working capital
 To achieve key objectives
 Enable growth, profitability, quality, and
customer service objectives
 Supporting end-to-end goals and incentives
… Require Significant Supply Chain
Planning Capability Improvements
Today’s Realities....

World-class planning capabilities require integrated processes and
supporting technology solutions across business processes.
Spinnaker’s Structured S&OP ApproachThe Need for Innovation:
Putting It AllTogether
REVIEW/APPROVESUPPLYDEMAND
Consensus
Demand
Planning
Closed-Loop S&OP
Financial
Analysis
Executive
Review
Demand-
Supply
Balancing
Forecasting
Analytics
Consensus
Demand
Independent
Forecasting &
Customer
Collaboration
Constrained
Supply
Planning
Inventory
Planning
Supplier
Collaboration
& Commits
Supply
Response
Financial
Plan
Scenario
Analysis
Spinnaker Planning Process Framework

Typical advanced supply chain planning tools support only a portion of the
required business processes, forcing companies to use point solutions and
Excel-based processes throughout the planning process.
Spinnaker’s Structured S&OP ApproachThe Need for Innovation:
Where Current Solutions Fall Short
REVIEW/APPROVESUPPLY
Consensus
Demand
Planning
Closed-Loop S&OP
Financial
Analysis
Executive
Review
Demand-
Supply
Balancing
Forecasting
Analytics
Consensus
Demand
Independent
Forecasting &
Customer
Collaboration
Constrained
Supply
Planning
Inventory
Planning
Supplier
Collaboration
& Commits
Supply
Response
Financial
Plan
Scenario
Analysis
APS
Focus
DEMAND

Control Tower An end-to-end view of the supply chain with near
real time information and decision making analytics with drill
down capabilities, scorecards, and exception management
Supply Develops a time phased constrained or unconstrained
multi level production plan using heuristics or optimization with
“What If” and scenario planning capabilities.
Inventory Uses scenario and what if analysis coupled with a
dynamic statistical approach to determine ideal time phased
network inventory strategies.
Demand Supports the demand generation process by managing
demand signals via demand sensing, predictive analytics,
consensus planning and statistical modeling
Response Generates a short to mid-term supply plan that uses
prioritized and categorized demand to support allocations
planning, order rescheduling and ATP confirmations.
S&OP Enables an integrated business planning process to
achieve desired operational and financial objectives with
capabilities such as scenario modeling and collaboration
Not Released
How is SAP IBP Different?
 Integrated suite of planning
applications covering all processes in
the Spinnaker Planning Framework
 Hana platform – faster and scalable
 Cloud-based for rapid deployments
 Common data model across modules
 Fully integrated with ERP
Integrated Business Planning
Control Tower
Sales and Operations Planning
Demand InventorySupply Response
2015

Real-Time Scenario
Planning & Simulation
S&OP Process
Social Collaboration
Real-Time Analytics
Consensus
Demand
Planning
Material and
Capacity
Constrained
Planning
Inventory
Target
Setting &
Projections
Revenue &
Profit
Impact
Sales
Forecasting
Supply Chain
Finance
Sales
Illustrative Use Cases:
 Facilitate a consensus planning (demand and
supply) process
 Integrated Demand and Supply Planning
simulation ("what if”)
 Improve the accuracy of financial projections and align with
operational forecast to manage demand / supply volatility
 Provide visibility to inventory projections and monetization to
feed working capital analysis
 Monetization of the operational
forecast and drive consensus on $$
plans across sales, finance and supply
chain
 Promotional impact and effectiveness,
revenue optimization using price /
volume (operational)
Leveraging the S&OP application?

IBP Suite of Applications 2015
S&OP
Control Tower
Demand
Inventory
Supply
Transformation Opportunity
Planning Maturity
STAGE 4
ORCHESTRATING
Extended Supply
Chain Collaboration
and Financial
Optimization
Technology
As SAP’s IBP product matures, it creates an opportunity for clients to optimize
Process, People, Metrics, Policy to achieve planning excellence.
Low High

Both APO and IBP can be leveraged to reap benefits and resolve business challenges?
What are your challenges?
SAP IBP Complements SAP APO
SAP APO
Demand Planning
Supply Network
Planning
PP/DS Global ATP
Control Tower
Sales and Operations Planning
Demand Supply Inventory Response
2015
Forecast, Supply Plan
Consensus Plan
Forecast
Optimized Inventory
Levels
Order Visibility
Planned and
Production Orders

Readiness toTransition
Key Considerations:
 Prioritize your challenges
 Assess process maturity
 Evaluate current technology
 Consider user skills assessment
and adoption
 Create cross functional
sponsorship
Did you know?
• SAP will support APO until 2025
• SAP IBP is new – some applications are
more mature than others

What’s the Right Roadmap forYou?
Business Challenge Short-term Solution
S&OP Process Automation
Focus on enabling a cross functional S&OP process by using SAP S&OP
integrated with existing APO (or other) planning solutions
Field Sales Forecast
Use SAP S&OP to gather field sales forecast data and manage a demand
consensus processes
No APS, Excel based planning
Adopt SAP IBP as a light-weight end-to-end planning solution and build
out advanced capabilities over time
SCVisibility
Begin to explore advanced capabilities such as ControlTower and IBP
capabilities not available in APO or other legacy planning solutions
Business Challenge Intermediate to Long-term Solution
Focused Module
Implementation
Focus on prioritized modules that yield maximum benefits, for e.g.
Inventory Optimization
Full Suite Implementation Replace existing advanced planning solutions
In either path forward, we expect most clients to adopt
a “start small, scale fast” approach.
Companies have the following paths toward adopting SAP’s IBP suite:

SAP IBP S&OP is a mature
capability that enables
integrated business planning
Step 1:
Prioritize applications aimed at
solving specific gaps
Step 2:
Completely replace existing
planning solution
IllustrativeTransition to IBP
Prerequisites
 Well defined S&OP process
 Organizational readiness
 Cross functional sponsorship
S&OP
PP/DS
Demand Planning
Supply Network Planning
Existing APS
Prerequisites
 Existing Planning Data
 Knowledge of Excel Type
pivot tables
 Mapping of entire supply
chain
Control Tower
S&OP
PP/DS
Demand Planning
Supply Network Planning
Existing APS
Prerequisites
 Demand segmentation
 Production constraints
 Inventory constraints
 Customer Service Levels
Control Tower
S&OP
Demand
Inventory
Supply
PP/DS
Existing APS
Integrated Business Planning Integrated Business Planning

Consider the end to end planning framework to align each of the capabilities and deciding
where to start.
Spinnaker’s Structured S&OP ApproachDefining the Right Roadmap forYou
REVIEW/APPROVESUPPLYDEMAND
Consensus
Demand
Planning
Closed-Loop S&OP
Financial
Analysis
Executive
Review
Demand-
Supply
Balancing
Forecasting
Analytics
Consensus
Demand
Independent
Forecasting &
Customer
Collaboration
Constrained
Supply
Planning
Inventory
Planning
Supplier
Collaboration
& Commits
Supply
Response
Financial
Plan
Scenario
Analysis

How to Develop a Roadmap
What should you
implement, when
and why?
Process, People,
Metrics and Policy
improvement
opportunities
Cost / Benefit
analysis
Key Outputs
Current State
Review
Best Practice
Gap Analysis
Summary
Future State
Design
Future State
Roadmap
 Prepare
benchmarking
and best practices
report
 Define and
prioritize gaps
 Conduct facility
walk-through(s)
and review current
state processes
 Review system
design, application
and data
architecture
 Review roles and
responsibilities
 Review current
reports and metrics
 Define Future-
State High-Level
Process Flows
 Define Future-
State Solution
Architecture,
Data and Org
Requirements
 Define
Recommended
Business Releases
 Develop high level
dependencies,
costs and benefits
of each Business
Release
 Prepare sequenced
Business Release
roadmap
People Process Technology Policies Metrics

Questions
&
Answers
ThankYou
19

Contact Information
Dan Luttner
Business Development Manager
412.760.2750
dluttner@spinnakermgmt.com
Sunil Sanghani
Vice President
630.881.1082
ssanghani@spinnakermgmt.com
Jeff Baert
Senior Manager
469.585.3897
jbaert@spinnakermgmt.com

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