1© 2014 Steelwedge Software, Inc. Confidential.
Single Line of Sight: Plan, Perform, Profit
IndustryWeek Webinar
Game On! ...
Game On! Sony Plans for
Profitability with S&OP Technology
PlayStation has the Most Popular Video Games
3
4
Movie Here
Sony Computer Entertainment America
SCEA is a division of SONY Corp of America
 PlayStation® game console introduced in U...
2010 - Impetus for Change and
Current State of S&OP
● We needed to get S&OP going for fall
2013 release of PS4.
● SCEA not...
S&OP: SCEA’s Journey
7
H1 2010
Education and Initial
Assessment
S&OP Roadmap
H2 2010
Build Foundation
Capabilities
Consoli...
H1 2012
Full S&OP
Implemented
Full Senior Exec Team &
CEO included in Exec S&OP
S&OP: SCEA’s Journey (cont.)
8
H1 2013
S&O...
Comparative Sales Results at
Launch
Hardware 0.9M 2.3M
Software 1.9M 4.8M
Peripherals 1.1M 2.1M
Total Revenue $0.7B $1.3B
...
Crawl-Walk-Run-Sprint: Methodology & Fast Returns
10
Phase One with :
•Demand planning and an executive engagement
phase o...
Crawl-Walk-Run-Sprint: Methodology & Fast Returns
11
Phase Two with
• Synchronized new forecasting strength via supply pla...
Looping Back to Leap Forward
Demand
Signal
Forecast
Process
Allocation
& Supply
Planning
Better
Demand
Signal
Drives
Forec...
S&OP Benefits with Steelwedge
13
● Profitability
 SCEA forecast accuracy improvement from 60% to ~85% immediately
drives ...
Profitable Supply/Demand Tradeoffs at Sony
“Steelwedge provides the visibility we require to run our business, and
deliver...
15© 2014 Steelwedge Software, Inc..
Single Line of Sight: Plan, Perform, Profit
Agility Webinar Series
Game On!
Sony (SCEA...
16© 2014 Steelwedge Software, Inc..
Agenda
• Problem: The Spreadsheet Approach
• Solution: S&OP Automation
• Key SCEA Succ...
17© 2014 Steelwedge Software, Inc..
Pre-ESOP
Ground Reality: Trying It With Spreadsheets
Demand
Planning,
SCM/APS
Systems
...
18© 2014 Steelwedge Software, Inc..
Change Your Reality; Drive S&OP Adoption & Values
Time
L1
L2
L3
L4
Q1 Q2 Q3
Step Chang...
19© 2014 Steelwedge Software, Inc..
Best Practice S&OP
Aligns People, Process & Systems
“We continue to look at S&OP as an...
20© 2014 Steelwedge Software, Inc..
Return on Investment is Substantial
Value Levers
50-70% Reduction
15-30% Improvement
2...
21© 2014 Steelwedge Software, Inc..
S&OP Success with Steelwedge
Demand
Planning,
SCM/APS
Systems
ERP, Financial,
& Transa...
22© 2014 Steelwedge Software, Inc. Confidential.
Managing the Translation between Functions
Sales, Marketing,
Product Mana...
23© 2014 Steelwedge Software, Inc. Confidential.
Planning
Dashboard
Steelwedge Enterprise
Enabled Excel
Slice of view
(hie...
24© 2014 Steelwedge Software, Inc. Confidential.
Why Steelwedge?
• 100% S&OP Focus & Best Practices
• Proven Track Record ...
25© 2014 Steelwedge Software, Inc..
Steelwedge is a strong leader in S&OP and IBP
“Steelwedge is an ideal solution for a h...
26© 2014 Steelwedge Software, Inc. Confidential.
Crawl – Walk – Run Approach
• Key to success is incremental value
• Crawl...
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Game on! sony (scea) plans for profitability with sop technology updated sw2-feedback (3)

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  • VIDEO! Let’s hear a little love for for PlayStation!
  • Company Overview – Discuss Platforms, PS4 Nov 15th, Three Product categories – HW, SW, PE

    In 1994, Sony Computer Entertainment America (SCEA) was founded as the North America division of Sony Computer Entertainment Inc. Taking approximately four years to develop, the PlayStation® game console was introduced in the United States in 1995.

    We make advanced hardware that enables the most talented developers to produce vanguard titles and set new standards in interactive entertainment. Our goal is to make a family of products that completely changes the definition of home entertainment.
  • Why did we call SW2 in the first place?

    Understanding SOP is a horizontal process. Cuts across all the silos and business functions.

    Get one dataset, single source of truth, organized and primed and functionally aligned.

    This is when we got direction to get our S&OP house in order.

    PS4 – time to put your big boy pants on.

    2010 – heads up for PS4
  • 2010
    S&OP Education
    Assessment of IBP2 Foundational Capabilities
    S&OP Roadmap
    Consolidated Item Master
    NPI Milestone Review
     
    2011
    S&OP Process Defined
    S&OP Calendar Established
    Supporting Technology Software Selection
    Supporting Technology Design and Development (Go-Live Fall 2011)
    S&OP Meeting Pilots
    Jul – Exec S&OP Pilot
    Aug – Consensus Workshop, Ops Review Pilot
    Sep – Full Monthly Cycle Pilot
    Oct-Dec – Partial Senior Exec Team & CEO included in Exec S&OP
     
  • 2012
    Full Senior Exec Team & CEO included in Exec S&OP
    Jul – Financial integration established in S&OP meetings
    S&OP Business & Scope Expansion
    Supporting Technology Enhancements, including telescopic calendar (Design & Development)
    NPI Milestone Review Enhancements
    Executive Green Light Process Design and Implementation
     
    2013
    S&OP Process Expansion
    NPI & Executive Green Light Expansion
    Supporting Technology Enhancements Go-Live
  • Call out Units versus $$
  • Automate the data integration process to sync plans into a single view and minimize risk of errors from multiple sources.
    Additional Info on the point above:
    This involved connecting fragmented demand planning components from disparate sources including Access databases and Excel spreadsheets with back-end ERP data from Oracle.

    As a result, the SCEA executive team can now see more tightly aligned demand forecasts on a monthly basis.
  • As a result of phase two, today Sony can look at data at the store level, with point of sale information to show exactly what happened. That demand signal repository is coupled with telescopic planning to get a weekly review of data, which provides even better visibility to the sales team.
  • Improving S&OP Performance. When we started, we could not have known it would take us here.
  • Planned vs sold (for 2.3 millions)
  • 3.0 Minutes

    Most companies today …
    … find themselves driving the S&OP process …
    … in a multi-faceted systems environment.

    Important information needed for S&OP lives in …
    … ERP or financial systems …
    … Demand planning or SCM systems …
    … CRM systems for Opportunity data …
    … reference data coming from 3rd party systems …
    … and the list goes on.

    So for each planning cycle …
    … Stakeholder groups extract the information they need and put it into Excel.
    The Sales teams extract it by revenue and customer.
    Marketing by market and revenue.
    Operations units, capacity and cost.
    Finance by revenue, margin and inventory investment.

    They each then reconcile and consolidate their own data …
    … and now …
    … well into the planning cycle …
    … they can begin planning.
    Management reviews the plans and makes a few changes.

    Then the consensus process …
    … to align Sales, Marketing, Operations and Finance.
    This takes a few rounds …
    … and a fair amount of time spent arguing …
    .. about whose numbers are right.
    Each round requires translation back to the terms of the original plan.

    Then they put it all together …
    … to tell a reasonable story about the business …
    … and the options available to executives to close the gaps.

    If that were the end …
    a business intelligence system could take care of rolling all the plans up.

    But inevitably someone will ask a hard question …
    … and that’ll trigger updates or changes at the beginning of the process.
    And that’s followed by a series of changes, consolidations and transformations …
    … restating the plan to answer the Exec’s question.

    The whole process is manual and very time consuming.
    Its complex and so the risk of error is high …
    … and it is definitely not scalable.
    On top of that, there’s no change history …
    … the whole process likely to show up in the auditor’s report.

    But the real question is whether it gives the Executives the tools they need to run the business.

    This is a challenge to sustaining the value of S&OP.
    After a while …
    … it just becomes too painful …
    … and difficult to keep the people and the process going …
    S&OP momentum declines.

    To achieve the benefits of S&OP …
    S&OP technology is required.

  • 2.25 Minutes

    SW’s cloud based approach …
    … provides a cross-functional collaboration platform to drive S&OP.
    All plans are available in a single integrated environment …
    … where Stakeholders analyze, explore scenarios and finalize plans.
    Plan changes flow seamlessly to related plans.

    With SW …
    … companies begin planning on the first day of the cycle.
    Rather than beginning the data collection and reconciliation process.

    We see three key benefits of a SW powered S&OP.

    Accelerated time to value.
    Because SW is cloud solution …
    … Customers are up, running and realize value quickly.
    SW is typically deployed in 3 to 6 months.
    Upgrades are seamless and don’t require reimplementation.

    2. Step Change in Maturity and Performance
    The value of increased S&OP maturity is clear.
    It translates directly to the P&L and Balance Sheet.
    SW enables companies to align across the organization …
    … evaluate opportunities, run scenarios and choose the best approach.
    SW Customers realize more S&OP value sooner.

    3. Avoid Process Failure
    S&OP is a collaborative process that depends on stakeholder alignment and continuity.
    That’s challenging where the tools are difficult to use …
    … or difficult to integrate and result in data silos.
    In that case, stakeholder adoption is low …
    … and the initiative risks failure.
    SW is intuitive and provides a “ready to plan” environment.
    Users get real value from the powerful and flexible planning views
    User adoption is high …
    … along with IBP success.

    Industry analyst and experts agree …
    … as Tim Payne the VP of Supply Chain Analysis at Gartner says here,
    … with-out technology like Steelwedge,
    … its difficult to get past basic levels of S&OP maturity.



  • 0.25 Minutes

    In fact …
    Rob Kugel of Ventana Research goes so far to say…
    … terrific improvement is needed …
    … and S&OP technology is a central piece of management software.
  • 0.5 Minutes

    And here’s the reason …
    … the ROI is tremendous.
    These are typical of our customer’s benefits.
  • 1.0 Minute

    Why are companies successful with Steelwedge?

    Steelwedge works across that same systems landscape …
    … and enables S&OP Stakeholders …
    … to plan and collaborate in the same environment.

    That’s the key to success …
    … because each Stakeholder have their own planning terms.
    Account Manager
    Demand Planner
    Supply Planner
    Finance
    And External Trading Partners.

    In that cross-functional planning environment …
    … the Stakeholders need to be able to …

    These were key success areas for SCEA …
  • 0.5 Minutes

    SW enables all stakeholders to plan in a single application.
    From the Demand side
    To the Supply side
    To Finance and the C-Suite
    All seamlessly collaborating on the same plan,
    … and the scenarios recommended to address opportunities or close gaps.
  • 1.0 Minute

    The SW Planning View for each role provides a familiar and intuitive planning environment.
    Enterprise Enabled Excel combines the power of an enterprise class application
    With an intuitive Excel planning environment.
    Built in analytics users can simulate plan changes for the best result.
    And the planning dashboard provides an at-a-glance view of key metrics.
  • 1.0 Minute
  • 0.5 Minutes
  • 1.0 Minute
  • Game on! sony (scea) plans for profitability with sop technology updated sw2-feedback (3)

    1. 1. 1© 2014 Steelwedge Software, Inc. Confidential. Single Line of Sight: Plan, Perform, Profit IndustryWeek Webinar Game On! Sony Plans for Profitability with S&OP Technology
    2. 2. Game On! Sony Plans for Profitability with S&OP Technology
    3. 3. PlayStation has the Most Popular Video Games 3
    4. 4. 4 Movie Here
    5. 5. Sony Computer Entertainment America SCEA is a division of SONY Corp of America  PlayStation® game console introduced in USA 1995.  Responsible for PlayStation brand in USA, Canada, and Latin America.  Platform categories are Hardware, Software, Peripherals, and Digital.  Tough planning cycle with long lead times on Hardware and Peripherals. PS4 PS3 PSNPS Vita
    6. 6. 2010 - Impetus for Change and Current State of S&OP ● We needed to get S&OP going for fall 2013 release of PS4. ● SCEA not organized functionally. ● Strategy executed from annual budget. ● Reporting is not planning. ● No single source of truth. At 15yrs, we were the world’s oldest start-up!
    7. 7. S&OP: SCEA’s Journey 7 H1 2010 Education and Initial Assessment S&OP Roadmap H2 2010 Build Foundation Capabilities Consolidated Item Master NPI Milestone Review H1 2011 S&OP Design Complete S&OP Process Defined S&OP Calendar Established H2 2011 Pilot S&OP and Select Technology Tool Selection and Implementation
    8. 8. H1 2012 Full S&OP Implemented Full Senior Exec Team & CEO included in Exec S&OP S&OP: SCEA’s Journey (cont.) 8 H1 2013 S&OP Process Expansion Innovation Pipeline Review and DSR H2 2013 S&OP Process Execution PS4 Launch Results H2 2012 S&OP Business & Scope Expansion Financial Integration Telescopic Calendar H1 2012
    9. 9. Comparative Sales Results at Launch Hardware 0.9M 2.3M Software 1.9M 4.8M Peripherals 1.1M 2.1M Total Revenue $0.7B $1.3B Source: NPD US, Nov’13 ~ Jan’14, Nov’06~Jan’07. First 3 Months of Unit Sales
    10. 10. Crawl-Walk-Run-Sprint: Methodology & Fast Returns 10 Phase One with : •Demand planning and an executive engagement phase of the total sales and operations planning (S&OP) life cycle. Over the course of four months, Steelwedge worked with SCEA to: •Automate the data integration process to sync plans into a single view and minimize risk of errors from multiple sources. •Provide executive-level visibility to the demand forecasts to show the financial impact of changes in forecasts to inform business priority decision- making.
    11. 11. Crawl-Walk-Run-Sprint: Methodology & Fast Returns 11 Phase Two with • Synchronized new forecasting strength via supply planning and collaboration with SCEA corporate suppliers and telescopic planning. •SCEA enabled Telescopic Planning for easy movement between weekly and monthly planning periods, allowing a much closer, more frequent look at impacts to its supply and demand.
    12. 12. Looping Back to Leap Forward Demand Signal Forecast Process Allocation & Supply Planning Better Demand Signal Drives Forecast Accuracy Improves Supply Planning and Allocation
    13. 13. S&OP Benefits with Steelwedge 13 ● Profitability  SCEA forecast accuracy improvement from 60% to ~85% immediately drives better profitability.  SCEA now has enough data insight to push from SKUs to channels, more intelligently. ● Market Share  Better consensus planning, powered by Steelwedge, helps SCEA make better Supply, Demand and tradeoff decisions, due to more reliable data.  The faster to market, the better the market share potential. ● Scalability  The cloud-based solution from Steelwedge allows SCEA to power its process in scope with its evolving market.
    14. 14. Profitable Supply/Demand Tradeoffs at Sony “Steelwedge provides the visibility we require to run our business, and delivers it in a way that is intuitive for business users to consume. Steelwedge has the secret sauce of a high performance system that is easy to understand. Steelwedge is planning on steroids. It’s a truly unique offering.” Sree Vaidyanathan Director of Business Applications Sony Computer Entertainment America 14 High ~85% forecast accuracy (up from 60%) 1 million units of PlayStation 4 preordered 2.3 million units Sales of PlayStation 4 sold in first 3 months Success by the Numbers:
    15. 15. 15© 2014 Steelwedge Software, Inc.. Single Line of Sight: Plan, Perform, Profit Agility Webinar Series Game On! Sony (SCEA) Plans Profit with S&OP Technology
    16. 16. 16© 2014 Steelwedge Software, Inc.. Agenda • Problem: The Spreadsheet Approach • Solution: S&OP Automation • Key SCEA Success Areas • Q & A
    17. 17. 17© 2014 Steelwedge Software, Inc.. Pre-ESOP Ground Reality: Trying It With Spreadsheets Demand Planning, SCM/APS Systems ERP, Financial, & Transactional Systems SAP, Oracle, etc. Industry Data Consolidation, Review, Overrides Data Collection, Reconciliation Consensus Process ESOP Operations Marketing Sales Finance Manual Complex Security Risk Not Scalable Does this Give Executives an Agile Decision Making Process? Systems Landscape
    18. 18. 18© 2014 Steelwedge Software, Inc.. Change Your Reality; Drive S&OP Adoption & Values Time L1 L2 L3 L4 Q1 Q2 Q3 Step Change Maturity & Performance Avoid Process Failure Q4 Value Accelerated Time to Value “Companies can have a hard time getting past basic levels of S&OP without technologies like Steelwedge to support the process” -Tim Payne VP Supply Chain Analysis, Gartner
    19. 19. 19© 2014 Steelwedge Software, Inc.. Best Practice S&OP Aligns People, Process & Systems “We continue to look at S&OP as an aspect of business that needs terrific improvement… It’s hard to argue this shouldn’t be a central piece of management software” –Rob Kugel, Ventana Research
    20. 20. 20© 2014 Steelwedge Software, Inc.. Return on Investment is Substantial Value Levers 50-70% Reduction 15-30% Improvement 20%-25% Reduction 25% Reduction in Stock-outs 1-2% Lift in Revenue Typical Results
    21. 21. 21© 2014 Steelwedge Software, Inc.. S&OP Success with Steelwedge Demand Planning, SCM/APS Systems ERP, Financial, & Transactional Systems SAP, Oracle, etc. Industry Data Single Cross-Functional Planning Environment Interactive planning for: • All S&OP Stakeholders • Plan Review • Overrides • Assumptions • Scenarios • Consensus Process • Pre-S&OP • Executive S&OP • Audit Trail Systems Landscape Product / Sub-Family Customer Revenue Product / Family Territory / Region Revenue Product / Family Promotions Revenue Product / Family Region Units & Revenue Product Stock Locations Units and Inventory Family / Series Territory / Region Revenue, Margin & Cash Family / Series / BU Geo Revenue, Margin & Cash Product Production Site Units and Capacity Family / Series / BU Geo Revenue, Margin & Cash Family / Series / BU Geo Revenue, Margin & Cash Planning TermsStakeholders Account Managers Sales Managers Marketing Demand Planners Supply Planners Production Planners Finance Executives Customers Suppliers Cross-functional Planning Environment
    22. 22. 22© 2014 Steelwedge Software, Inc. Confidential. Managing the Translation between Functions Sales, Marketing, Product Management, Demand Planning Demand Inventory, Production, Procurement and Allocations Supply Profit & Loss, Balance Sheet Finance Executive Dashboards Executive
    23. 23. 23© 2014 Steelwedge Software, Inc. Confidential. Planning Dashboard Steelwedge Enterprise Enabled Excel Slice of view (hierarchy) Time series of key figures Planning data for review and updates Planning Views Combine Planning, Analytics in Familiar UI Capture institutional knowledge / assumptions
    24. 24. 24© 2014 Steelwedge Software, Inc. Confidential. Why Steelwedge? • 100% S&OP Focus & Best Practices • Proven Track Record of Delivering S&OP • Ease-of-use, Flexible & Scalable Solution • Power of the Cloud to Leverage Big Data • Leverages Existing Investment in Systems • Crawl Walk Run Approach “We’ve built a lot of structure to power our agility with people, process and technology at Contech. I need a holistic view and Steelwedge delivers. There are very few out there that can do what Steelwedge does.” - Randy Ramsey, Director Supply Chain, Contech
    25. 25. 25© 2014 Steelwedge Software, Inc.. Steelwedge is a strong leader in S&OP and IBP “Steelwedge is an ideal solution for a heterogeneous environment with multiple S&OP processes with inputs from multiple ERP and APS technologies.” Lora Cecere Founder and CEO, Supply Chain Insights “Steelwedge has grown into one of the market's leading S&OP solutions". “Steelwedge has proven that it provides a capable and scalable Stage 3 S&OP solution suitable for global deployments.” Tim Payne Research Vice President, Supply Chain Research Group, GARTNER Steelwedge was among the highest ranked in capabilities scoring and was one of “the vendors that were notable in portfolio strategy and portfolio benefits delivered.” Simon Ellis Supply Chain Practice Director, IDC
    26. 26. 26© 2014 Steelwedge Software, Inc. Confidential. Crawl – Walk – Run Approach • Key to success is incremental value • Crawl: plan ahead with end in site • Walk: implement single solution • Run: measure, improve, expand • Sprint: align, integrate, monitor • Start with quick win as phase 1 & foundation • Expand the roll-out adding value as you go

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