what's in your big data? connecting the dots in your sales data to drive growth

©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com©2012 Emcien, Inc. All rights reserved worldwide.

What’s in Your Big Data? Connecting the Dots in Your Sales Data to Drive Growth

Presenters:

Julie Fraser, Principal, Iyno Advisors

Radhika Subramanian, CEO, Emcien Corp.

©2012 Emcien, Inc. All rights reserved worldwide. www.emcien.com

Agenda

• Business strategies• Complexity challenges• Hidden assumptions• Reality• A new frontier• Case Study

A new approach to marketing, sales and business success


Discrete manufacturing business strategies

Add more value

Serve more markets

Be “full line” supplier

UVP per buyer

Sell an “Experience”

Drivers & Objectives Relationship Goal

Upgrade

Support Sell

Educate

Long-termRelationship


Everyone is involved

Service &Support

Marketing

R&D

Planning

SalesFinance

Supply ChainManagement

Manufacturing

Customer


Proliferation of product configurations

Add more value

Serve more markets

Be “full line” supplier

UVP per buyer

Sell an “Experience”

Drivers & Objectives


Desired business outcome

Increased revenues

• Appeal to more customers• Fit their needs better• Make closing a deal easier• Increase revenue per deal• Increase repeat, upsell,

cross-sell• Boost lifetime revenue per

customer

However… there are unintended consequences


Hidden Assumptions

• Configuration per buyer to meet needs

• Customer knows best – they guide, not us

• Profit will be higher

• We can make and ship efficiently regardless of number of variants

• Cost a product configuration by materials and production process

Add additional complexity to generate revenue with no additional cost?


Cost to Serve

Service &Support

Marketing

R&D

Planning

SalesFinance


Manufacturing

Cost to Serve


What is the real impact?

Profit unclear

• May not increase if– Marketing unclear– New products out late– Forecasts are inaccurate– Not selling highest profit

offers or price war– Standard pricing muddled– Suppliers can’t keep up– In-stock mismatch to

demand, long lead-times– Service cannot respond

Costs rise

• Fragmented ineffective• marketing campaigns • Design costs balloon• Planning processes miss detail of

variants• Extra sales and channel training

needed• Special terms per buyer• Materials proliferate, thus cost to

procure & hold rise• Plants inefficient, stuck in chaos

and change• Service costs skyrocket


Marketing & Sales Drive Cost-to-Serve

Service &Support

Marketing

R&D

Planning

SalesFinance


Manufacturing

Customer

Deal Decisions

Product

Managem

ent

Decisions


Struggle to make dramatic gains

Cost of quality as % of revenue Yield Days raw material inventory0%

5%

10%

15%

20%

25%

Achieved over 10% improvement per year

Business Movers OthersSource: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics © 2012 Cambashi Inc. and MESA International Analysis of discrete manufacturers only


Alignment drives performance

Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics © 2012 Cambashi Inc. and MESA International

Others

Business Movers

0% 5% 10% 15% 20% 25% 30% 35%

Operational and business metrics are closely linked


What are we pretending not to know?

Assumption• Configuration per buyer to meet

needs

• Customer knows best – they

guide, not us

• Profit will be higher

• We can make and ship efficiently

regardless of number of variants

• Cost a configuration by materials

and production process

Reality• Many ways to meet needs (80-

20)

• Once you listen, the supplier should guide

• Price may be same and cost is much higher

• Making more variants hurts operational efficiency

• Cost based on impact to business – incentives for big sellers

Additional complexity drives additional cost


Need a new way of working

• New objective: – Serve Customers at

Highest Profitability

• Data-driven, not assumptions

• New metrics• New processes• New culture with

accountability

This is not a one-time project!


What are logical first steps?

• Find executive sponsor• Gather stakeholders• Streamline the portfolio• Prioritize offerings• Empower sales

With a caveat…


May be conflict of opinion

• Each group will have a view• Many based on latest experience• Diverse data sets suggest different paths• Complexity too much to sift through


Requires special-purpose big data analysis

• Must analyze diverse product data in context– sales, marketing, design, financial, operations

• Enterprise portfolio planning– Not just R&D/marketing

• Incent buying high volume configurations

• Guide the sales process

Shape demand, don’t just react to it


• Data-driven decisions• Enterprise-wide impact• Meet demand with a streamlined portfolio

– increase revenues – lower costs

• Guide the sales process• Streamline quoting and sales cycle• Simplify for employees, customers, distributors• Improve profits!

Reduce complexity to improve outcomes


The Problem

Solution Manager

Supply Chain Management

Sales

Product Variety is key driver of

“Cost To serve”


The Orchestra: Sales, Supply Chain, and Solutions Managers

Solution Manager

Supply Chain Management

Sales

“We saw this is an opportunity to bring three departments together onto one solution set. The idea of Solutions Management, Sales and Operations together in one environment to enhance the performance of our new product introduction, improve our sales enablement, and to give the supply chain a better demand signal was really compelling.”

~Mike Groesch, VP of Sales and Operations Planning, NCR Corp.


Case Study: Cashing in on Estimated $110 Million Top-line Impact

What’s selling where; to whom; when and

how often?

Defined Customer Segments; where to

go & what to sell

Optimized performance; margins/pricing, lead-

times, inventory, customer satisfaction

Guided Selling

Buying PatternAnalysis

Go to MarketStrategy

Demand Sensing

& Shaping

1

2 3


Product Management: Create & Maintain Optimal Product Mix

• Optimize Product Mix Based on Customer Buying Patterns– Create better bundled promotions based on actual customer

demand– Improve Go-to-Market programs with increased product accuracy

• Coordinate with Supply Chain– Product Mix Parts Usage

• Coordinate With Sales– Increase customer loyalty and empower the brand based on

reduced lead times and shorter sales cycles– Product Mix Best Availability & Maximum Margin


Product Management: High Resolution, Multi-dimensional View

• Monitor customer buying patterns by product line, region and market segment

• Analytics computes the most popular features groups by market segment

• Trends by product mix, market segment, and features• Product Mix Parts Usage, Inventory Max. Margin

Option Portfolio Chart Optimal Configuration Effectiveness

Average Volume per Configuration


What is Guided Selling?

Customers think of your product in features & “feature sets”

Many ways to fill the order

Guide customer to the best choices at the point of sale

Based on availability and margin

Customer Sales

I need a product that does X, Y,

and Z

I want tospend under

$500

Here are the best choices


Sales: Win the Customer, Increase Revenue

• With Guided Selling Based Sales Can:– Shorten the Sales Cycle/Quote to Cash– Reduce Lead-Times– Increase Customer Satisfaction– Reduce Time to Train New Sales Members– Win Cooperation from Product

Management/Operations


Supply Chain: Improve inventory turns and lead time by aligning with Product Management and Sales

• Supply Chain Planning with product mix detail – What-if scenarios with different product mix – Select best mix based on parts usage, suppliers, lead

time, etc.

• Supply chain can influence Sales based on availability– Guide sales reps to sell the best product – Push choices based on excess inventory – Disallow products that use a part that is not

available


A Systemic Solution

Assess/Supply Chain Plan

Demand Shaping

Demand Sensing

Analyzethe Market

NPI

Sales Supply Chain Management

Product Management

Supply Chain Management & Product Management

Demand Shaping Demand Sensing