What Mature S&OP Looks Like: Enterasys Case Study

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Steelwedge Agility Webinar Series

Presenter: Jack Lyon, Vice President of Operations, Enterasys Networks

Enterasys Networks set a strategy for business transformation in 2005 and put in place an S&OP initiative to power it. Within a year, it was reaping multi-million dollar benefits from tighter inventory and better visibility. Seven years later, the company continues to derive powerful incremental value from its S&OP foundation. In fact, Enterasys credits S&OP for ensuring its phenomenal string of q/q growth for the past three years—even when its market suffered a set- back.

Join Jack and Steelwedge for an interactive webinar that looks under the hood that the strategy, execution and union of people, process and technology that keeps Enterasys on a multi-year growth trajectory.

Topics will include:
• Crawl, Walk, Run methodology for continuing, incremental success
• Master Data Management to connect and harmonize vital on-premise and cloud based data
• Putting the Cloud to work for better scalability

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What Mature S&OP Looks Like: Enterasys Case Study

  1. 1. “There is nothing more important than our customers” What Mature S&OP Looks LikeDelivering agility and upside from an Integrated Business Planning strategy A Siemens Enterprise Communications Company
  2. 2. About Enterasys Leader in wired and wireless network infrastructure and security solutions Consistent innovation: 800+ patents Proven: 20,000+ customers Solution selling: 500+ partners Team: 1000+ technology and customer centric employees Global presence: 5 continents, 90+ countries2 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.
  3. 3. 2004 Challenge: Keeping Balance Order delays Global Market Volatility Sluggish market response  Obsolescence Information not timely  Long product or accurate life cycle enough  Excess inventory • Organizational Silos3 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.
  4. 4. Poll #1  What is your biggest planning challenge? 1. Global volatility 2. Demand visibility 3. Supply excess 4. Collaborative planning and engagement 5. All of the above4 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.
  5. 5. Strategy: Better Planning Visibility  Remove Shades of Gray  Lean transformation  Supply/demand balance  Better competitiveness5 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.
  6. 6. Objective: Global Collaborative Demand Plan  Increased forecast predictability  Demand and Supply plans aligned internally and externally  Improved customer satisfaction  Reduced cash spend related to forecasting error Integrated set of IT tools that includes an S&OP software platform6 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.
  7. 7. Embarking on the IBP Journey7 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.
  8. 8. Year One: The Approach Executive-Sponsored Collaboration • Sales, Marketing, Product Management, Sales Operations, Finance and Supply Chain Manage Information, Not Spreadsheets  Normalize Data in Steelwedge • SAP • Salesforce.com • Big Machines Significant and Immediate Changes to the Business • Better demand predictability • Ability to respond to change8 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.
  9. 9. Poll #2 What technology are you using for S&OP? 1. Nothing 2. Spreadsheets 3. Existing ERP, SCM and/or CRM 4. S&OP specific technology 5. All of the above9 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.
  10. 10. Enterasys in the Cloud: Quote to Demand10 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.
  11. 11. Year One: Short Time to Measured SuccessNear Real-Time Data Has it’s Advantages… When products not selling as well as expected:  Drove demand-shaping to stimulate sales When products selling better than forecast:  Reviewed sales data; determine growth sustainability  Faster reaction: checked manufacturers’ capacity to boost short and mid- term production The bottom line: $3-4M saving/quarter from decreased excess and obsolescence inventory11 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.
  12. 12. Setting Up for the Long Term Cadence, Methodology and Measurement for Continued Success  Stay Committed to the Process  Ongoing executive participation  Try, fix, encounter change; try again  Continuous Improvement  Learn from mistakes  Bring lessons learned into new area of the business  NPI  Set Aggressive Targets  Measure  Adjust12 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.
  13. 13. S&OP Working Model: Continuous Delivery Financial Sales/Service Plan Roles & & PM Responsibilities Forecast Collaboration Tools S&OP Business Process SCM Forecast13 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.
  14. 14. Poll #3  How long have you been doing S&OP? 1. Not using it 2. Considering it 3. Less than a year 4. Less than 10 years 5. More than 10 years14 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.
  15. 15. 7 Years Later: Continuing ROI from S&OP  3 years of continuous growth outperforming all other networking companies in 2011  Sustained > 14% growth in Ethernet switching  Sustained > 50% growth in WLAN business  High Net Promoter Score: 8.1  Sustained high global customer satisfaction: 95%15 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.
  16. 16. Implementation & Process: Lessons Learned 1. Take measured steps - Take time to define each level of the process - Secure buy-in from stakeholders - Align to business objectives 2. Early engagement is important - Engage stakeholders up front - Promote active participation - Appoint program champions 3. Manage information - Create common nomenclature - Cross functional metrics and analytics - Integration of information flow 4. Power business process with technology - Technology plays an integral role when adapted to business process - Apply tools/applications to advance the maturity of the process - Continuous improvement ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved. 16
  17. 17. “There is nothing more important than our customers” Thank You! A Siemens Enterprise Communications Company

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