Beyond sensing and shaping... Beyond supply and demand

What is your primary goal as a supply chain professional? It’s not about demand sensing, demand shaping or even supply planning and demand planning. At the end of the day, it’s about profit optimization. Albeit important, demand sensing and shaping are only a piece of the equation and if isolated, decisions can be detrimental. You can manipulate demand and send it skyrocketing, but destroy your profits and your customer service. You can increase your supply and create a glut of inventory. You can improve your supply and demand of the “wrong” product and sub optimize your profits.

In a previous post I discussed the importance of demand sensing and shaping within the context of improving supply chain performance. With these activities, profit optimization is really the main objective.

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You snooze, you lose.....

This was probably my favorite of the myth-busters webcasts I have been spewing about, and now I definitely want to meet James Dallas so we can discuss and nod emphatically at each other’s insights on this topic!

The “You can’t have analytics without IT” myth is the fourth myth covered in the webcast series that busts four analytics myths. The series features Keith Collins SAS CIO and James Dallas, former CIO of Medtronic. It also features interview clips from IT peers in multiple industries.

As I've stated before, with technology being so prevalent in every line of business, as well as in our personal lives, today's IT leaders have to come to the table with more than just geek knowledge.  The IT leader must understand how to drive significant change with technology as an enabler. But the change management required to move to a data driven analytics culture is much more difficult – and important.

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Series: Understanding analytics' role in BCBS 239 - Conclusion

Three months ago, I introduced the SAS series on the Principles of BCBS 239 written by my colleagues.  We wrote the series to help banks in their compliance with the Principles of BCBS 239.

An integrative, consistent process reaching across all banking disciplines is now the desired goal of many banks primarily due to the advent of BCBS 239. Today's high-performance technologies offer all the capabilities not only to support effective risk data aggregation and risk reporting, but also to implement it in a truly cost-effective way. Adopting such technologies is the only reliable and fast way to achieve genuine competitive advantages, and SAS can help you do just that.

The 14 Principles of BCBS 239

The 14 Principles of BCBS 239

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Solving the scholastic chess facilitation puzzle

Young digital natives are learning chess at an unprecedented rate. Three-year-olds learn chess from the tablet and quickly become more knowledgeable than their parents. But unlike most tablet games, chess is a gateway to Science, Technology, Engineering and Mathematics (STEM) education. We grown-ups must optimize the chess-to-STEM pipeline, but how?

Consider this scenario -- you are helping out at a local elementary school chess club. You hear a tussle at one of the boards. It’s two of the second graders. The conflict: is it checkmate? An easy question if you are an avid chess player, but what if you are not? There is so much demand for scholastic chess that there are not enough experienced chess facilitators to go around.

Could technology help? Here are some forward-looking possibilities: Read More »

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Data visualization dos and don’ts

Data visualization tools are a great way to create impactful reports.  A well designed report can give users an understanding of their data quickly and easily.  And with tools like SAS® Visual Analytics, users can now quickly visualize and understand vast amounts of data.  However, with all the visualization options available within these tools, creating a report that quickly and effectively delivers information can be a daunting task.  This is especially true for those users new to creating these types of reports.

Recently I was working with a group of SAS Visual Analytics customers who were fairly new to creating reports using visualization tools.  While they had been creating reports in other tools, especially Excel, they struggled with how to leverage a data visualization tool.  They were excited by the sheer number of visualization options available to them, but they quickly fell into the trap of trying to do too much in a single report.

In order to continue on with their report creation, we had to take a step back and start with some ground rules.  This process led to the following list of Do’s and Don’ts.  While this is in no way meant to be an exhaustive or all-inclusive list, it is a great foundation to help guide report creation. Read More »

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How to dilute the value of analytics

Business Intelligence (BI) can mean many things to many people, but generally BI is associated with business reports. When you fold business analytics (BA), especially advanced analytics that are predictive or prescriptive, under the BI umbrella you inherently dilute the value proposition that analytics can provide to an organization.

Why is this important? Because everyone knows analytics is hot, so everyone today is selling some kind of analytics. When we allow business analytics to be synonymous with BI, we allow everyone's claims that they can "do analytics" appear to ring true.

Let's look at some typical BI terms and measurements:

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What is a better decision worth?

loginThe word “analytics” is widely misused and misunderstood.  While SAS arguably invented the advanced analytics and predictive analytics categories more than 38 years ago, other software vendors have used the term to describe things like reporting, monitoring, and tracking what happened.  The value of these more simple capabilities are easily understood and quantified – learning what is happening in near real time helps corrective action – reducing cost or increasing profitability. Knowing what happened historically can help plan resource needs and project profitability – thus optimizing the cost of doing business. 

Advanced and predictive analytics, however, tell a brand new value story. These technologies help answer the questions of “What is likely to happen?” and “What is the best thing that can happen?”  But, how do you communicate the value of making better decisions?

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Series: BCBS 239 - Principle 14

Principle 14Principle 14:
Home and host cooperation - Supervisors should cooperate with relevant supervisors in other jurisdictions regarding the supervision and review of the Principles, and the implementation of any remedial action if necessary.

The financial crisis underscored the importance of data quality and data latency in the area of risk management. Regulators were quick to react by enacting regulations around data quality in most jurisdictions. For example, US regulators enacted the Comprehensive Capital Analysis and Review (CCAR) monthly and quarterly data reporting and the regulators in Europe enacted changes to the capital requirements directive (CRD) and capital requirements regulation (CRR).  The BCBS 239 principles (see SAS’ series on the Principles of BCBS 239) can provide an overarching framework for many of these regulations from a risk data perspective. However, a key factor for success is appropriate cooperation between home and host regulators.

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Elementary my dear Watson….. Analytics and digital policing

Advanced analytics has been used by commercial organisations for a number of years now. It may be a bank making better lending decisions, a credit card company protecting customers from fraud, a mobile phone operator making the right marketing offers to its customers or a retailer making sure it has the right products in stock.

However, what we’re starting to see are other types of organisations taking advantage of analytics. One exciting example is a new partnership between  SAS UK & Ireland and British Rowing. We will use the data they collect and analytics to maximise performance of the GB Rowing Team. This will "make the boat go faster" and ensure that the Olympic Games in Rio 2016 will be as successful as London 2012.

I came across another example this week when I attended a workshop with the Metropolitan Police in London. They are embarking on a Big Data programme and will use analytics to make them more efficient and deliver a better service to Londoners. The whole initiative is called “Digital Policing” – making full use of data, being truly mobile and being able to act in real-time. So what do they plan to do?

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Achieve your goooooooal!!! ... with strategy

World Cup 2014Like many people around the world, Americans have caught World Cup fever. The early success of the USA national team has contributed greatly to this spike in interest, but so too have the high level of competition, the intense passion of the teams and their fans, the drama of pressure-filled games, and the strategy deployed by the coaches.

I see strong parallels between the importance of strategy on the football (or soccer) field and in the corporate board room.

Whether USA coach Jurgen Klinsmann selecting the right players and determining the correct approach for each match or business executives developing a plan to achieve their organization’s objectives, the right strategy is crucial.

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