Allied Bakeries Implementing
Corporate Performance Management
The Company
•
•
•
•
•
•
T/o 440m
4500 staff
10 Manufacturing Units
Shared Service Centre
Business Centre
Parent Company “Associated British Foods”
• Recent growth strategy
Business Challenges
• Key Strategic Drivers
• Focus on Brand Value and Volume Growth
• Customer and channel focus
• Business transformation
• Measure plans v performance,
• Analysis of current & future strategies,
• Innovation/new business
Business Intelligence - Classification
Type of
Intelligence
Strategic
Tactical
Operational
Who in the
organisation
Directors /
Strategists
Type of
Information
Historic
KPI’s
Senior
Manager
Analytics
Historic
Senior
Managers
Operations
Real-time
Timescale
Long term
Weeks,
Days
periods, qtrs
Business Intelligence
• Operational BI
• Customer Service
• Organisational Growth
• Business Planning
Approach - Success Map
Improve
Revenue
Mix
Broaden
Product
Range
NPD
X Sell
Products
Educate
Salesforce
Reduce
Wastage
Improve
Operating
Efficiency
Financial
Perspective
On time
In Full
Delivery
Customer
Perspective
Improve
Inventory
Process
Review
Ideas from
Employees
Internal
Perspective
Learning
Perspective
Approach – Work streams
Corporate Performance Management
Review of KPI’s
Technology
Master data
Customer Service & Business Planning
Business Intelligence
• Operational BI
• Customer Service
• Organisational Growth
• Business Planning
Goals
• To implement a full BI infrastructure on the
Microsoft platform.
• Knowledge transfer with the Allied Bakeries
development team.
• Improve the reporting and analytical
capabilities of the Allied Bakeries Customer
Services team.
• Integrate with other Allied Bakeries
strategies (SBV, Core)
Pilot Project Team
• Whole team exposed to all components of
the project delivery but have concentrated
on specific areas.
• ETL Team
• Report Development
• OLAP Development
• Data Modeller
SWOT Analysis -Oracle
Strength
Weakness
Investment in License
Skills in Business Centre
RDB/Oracle/OSA/OFA
PeopleSoft
Proven Capability
Skills in SSC
Cost of Migration
Mergers & Acquisition
Opportunities
Threat
Continuity & smooth migration
Potential for integration
Stable & long term
Relationship with vendor
Loose Commercial advantage
We may be too small
Lock-in
SWOT Analysis Microsoft
Strength
Skills
Cost – (free components)
R&D
BI Commitment
Integration with current apps
More 3rd party SQL usage
Weakness
Migration of Oracle applications
Influence on vendor
Delays in release of 2005 product
News version require support/training
Opportunities
Threat
Standard integration
Quicker to deploy
Relationship with SAP
One vendor
Immature technology
Current Daily Reporting Process
Daily Shortages
Individual site
reports (18)
Spreadsheet
Reason Codes
Local Orders
Legacy Reports
(7013)
Central
orders
Central Team
manual
Spreadsheet
Consolidation
Validation
Process
E.g. all bakeries
submitted on
time
Daily Shortage
Reports
Access Database
Site Reports + others
Customer Service
Report
Daily Interim & Final
Report
Central
shortages
Manual Process
IT Systems
New Architecture
Legacy
12hrs
Legacy
Master Data
User Interface
12hrs
Best of Breed
User Interface
12hrs
Best of Breed
New Architecture
Loosely Coupled
Infrastructure
Legacy
Staging
Server
SQL2005
12hrs
Legacy
Master Data
User Interface
SQL Server
Integration Services
12hrs
Best of Breed
User Interface
12hrs
Best of Breed
Data
Warehouse
SQL2005
New Architecture
Loosely Coupled
Infrastructure
Legacy
Staging
Server
SQL2005
12hrs
Legacy
Master Data
User Interface
SQL Server
Integration Services
12hrs
Best of Breed
User Interface
12hrs
Best of Breed
Data
Warehouse
SQL2005
Presentation
Layer
Microsoft
Balance
Scorecard
Microsoft
Analysis
Services
Microsoft
Reporting
Services
Reuse of Dimensional Model
Date
New
Product
Time series
To Date
Fact
Branch
Order Type
Customer
Reason
Reuse of Dimensional Model
Re-Use
Date
New
Product
Time series
To Date
Fact
Branch
Order Type
Customer
Reason
Semantic Layer
• custom report functionality to users, Simple models, Reports can be saved
Static Reporting
• Static reporting, Deployed to the Report Server, Standardisation of reports
Summary of Key Design Features
• Architecture based on loose coupling to minimise the
impact of system changes outside of the BI
infrastructure.
• ETL process designed to maintain history of all
master data within staging database.
• Cube with a number of measure groups, customer
services focused including time based analytical
functionality.
Business Intelligence
• Operational BI
• Customer Service
• Organisational Growth
• Business Planning
Objective & Scope
• Propose a replacement system for:
•
•
•
•
Planning/Budgeting/Forecasting
Event Management
Balance Scorecard
Dashboard
• Scope
• Finance
• Commercial
• Marketing
ALLIED BAKERIES FORECASTING PROCESS
Agree promotion
timing with
customers
depending on
status
Weekly:
Assumptions &
Understanding
Base Level Volume
Effect of NPD
launches
Distribution
Changes
Listings & Delistings
Price Changes
Capacity Limits
Losses,
commercial,
operations, bakery
waste &
unaccounted.
History = prior yr,
current yr, 2 year
outturn.
Quarterly/
latest
Re-forecast
KPI PROCESS
4 wkly forecast
Budget
Capacity
Planning
Model
Rolling Weekly Sales Forecast
(vol+price+margin)
Revise promotional
plan against
CompetitorActivity
Review success of
Promotions History
Opportunity Analysis
Measure variances against budget/i.e.
forecast planning model
aggregation by NAM
territory/plan fascia
aggregated by KPI
figures for each NAM
Analysis of forecast
promotional spend vs f'cast
volume
Review
additional
promotions
spare
capacity
operations
commitment
lack of
capacity
review &
4 wkly sign off
rolling weekly/period/
quarterly sales forecast (by
SKU)
(vol+price+mgn)
Full P & L by budgeted stds
Multiple
snapshots/
scenarios
PRODUCTION PLANNING PROCESS
situation if
limitied
capacity
rolling weekly sales
forecast (by SKU)
(vol+price+margin)
Reformat for
interface to
production
planning
2/4-weekly
forecast by
product by
day
12 weekly
forecast by
product by
branch by
week
production
planning
system
Material usage
requirements
Scoring & Functionality “extract”
Overall Rankings
Ranking
Vendor A
Cost £
Vendor B
Vendor C
Vendor D
Vendor E
3
4
5
6
8
Business Planning
1
1
1
1
1
PRICING
1
1
1
1
1
Data Validation and Audit
1
1
1
1
1
FORECAST/EVENTS
PROCESSING
1
1
1
1
1
Number of modules required
6
1
7
1
8
Fit with other applications
1
1
1
1
1
Fit with infrastructure
1
1
1
1
1
Skills fit
2
2
2
2
1
total
39
31
31
31
31
Rank
5
1
1
1
1
Functionality fit
Bu
dg
et
s
&
Fo
Bu
re
dg
ca
et
st
ry
/E
C
ve
on
nt
tro
s
Pr
l
oc
es
si
ng
Pr
of
it
Pr
&
ic
L
Sc
in
os
g
en
s
Su
ar
io
m
m
W
ar
ha
y
ti
fA
na
ly
sis
A
St
ll o
at
ca
is
tio
tic
ns
s
&
Tr
en
Bu
di
si
ng
ne
ss
Tr
en
ds
Sc
al
ab
ili t
y
General System Requirements
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Vendor A
Vendor B
Vendor C
Summary Matrix
Vendor A
Vendor B
Vendor C
Functionality
1
2
3
5 Yr Cost
Summary
2
3
1
Future
Development/
integration
2
1
3
Stability / Risk *
2
1
3
Implementation
speed / support *
2
1
3
Total
9
8
15
Summary of Process
Make Selection &
Approve Funding
Reference Site
Demonstration
/Costs/IT Fit
Scores
Weighting
Functionality
RFI
Requirements
Gathering
Current process is
at this stage
Re-run of this stage
for new Project
Sponsors
Risks
• Implementing
• technology not available
• commitment
• resources
• Not Implementing
• No infrastructure to move legacy applications
• Constraints on the availability of information
• Unable to monitor business performance
Summary
• Quick to be deploy
• Ongoing Value
• Faster end user adoption