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.
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)
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.
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.
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.
And here’s the reason … … the ROI is tremendous. These are typical of our customer’s benefits.
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 …
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.
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.
Game on! sony (scea) plans for profitability with sop technology updated sw2-feedback (3)
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
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
S&OP: SCEA’s Journey
Education and Initial
Consolidated Item Master
NPI Milestone Review
S&OP Process Defined
S&OP Calendar Established
Pilot S&OP and Select
Tool Selection and
Full Senior Exec Team &
CEO included in Exec S&OP
S&OP: SCEA’s Journey (cont.)
Review and DSR
PS4 Launch Results
S&OP Business & Scope
Comparative Sales Results at
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
Crawl-Walk-Run-Sprint: Methodology & Fast Returns
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
•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-
Crawl-Walk-Run-Sprint: Methodology & Fast Returns
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.
Looping Back to Leap Forward
S&OP Benefits with Steelwedge
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
● 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.
The cloud-based solution from Steelwedge allows SCEA to power its
process in scope with its evolving market.
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.”
Director of Business Applications
Sony Computer Entertainment America
(up from 60%)
1 million units
of PlayStation 4
2.3 million units
Sales of PlayStation 4
sold in first 3 months
Success by the Numbers: