Game on! sony (scea) plans for profitability with sop technology updated sw2-feedback (3)

1© 2014 Steelwedge Software, Inc. Confidential.

Single Line of Sight: Plan, Perform, Profit

IndustryWeek Webinar

Game On! Sony Plans for Profitability with S&OP Technology

Game On! Sony Plans for Profitability with S&OP Technology

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PlayStation has the Most Popular Video Games

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Movie Here

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 start-up!

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S&OP: SCEA’s Journey

Initial Consultation

H1 2010

Education and Initial Assessment

S&OP Roadmap

Foundational Capabilities

H2 2010

Build Foundation Capabilities

Consolidated Item Master

NPI Milestone Review

Detailed Design

H1 2011

S&OP Design Complete

S&OP Process Defined

S&OP Calendar Established

Pilot

H2 2011

Pilot S&OP and Select Technology

Tool Selection and Implementation

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H1 2012

Full S&OP Implemented

Full Senior Exec Team & CEO included in Exec S&OP

Full S&OP

S&OP: SCEA’s Journey (cont.)

Innovation Pipeline

H1 2013

S&OP Process Expansion

Innovation Pipeline Review and DSR

H2 2013

S&OP Process Execution

PS4 Launch Results

ExecutionFinancial Integration

H2 2012

S&OP Business & Scope Expansion

Financial Integration

Telescopic Calendar

H1 2012

Comparative Sales Results at Launch

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

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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 SCEA to:

• 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-making.

Crawl-Walk-Run-Sprint: Methodology & Fast Returns

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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

Demand Signal

Forecast Process

Allocation & Supply Planning

Better Demand Signal

Drives Forecast Accuracy

Improves Supply Planning and Allocation

S&OP Benefits with Steelwedge

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●Profitability 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

intelligently.

●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.

●Scalability 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.”

Sree Vaidyanathan

Director of Business Applications

Sony Computer Entertainment America

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High ~85% forecast accuracy

(up from 60%)

1 million unitsof PlayStation 4

preordered

2.3 million unitsSales of PlayStation 4 sold in first 3 months

Success by the Numbers:

15© 2014 Steelwedge Software, Inc..

Single Line of Sight: Plan, Perform, Profit

Agility Webinar Series

Game On!

Sony (SCEA) Plans Profit with S&OP Technology


Agenda

• Problem: The Spreadsheet Approach

• Solution: S&OP Automation

• Key SCEA Success Areas

• Q & A


Pre-ESOP

Ground Reality: Trying It With Spreadsheets

Demand Planning, SCM/APS Systems

ERP, Financial, & Transactional

SystemsSAP, Oracle, etc.

IndustryData

Consolidation,Review,

Overrides

Data Collection,

ReconciliationConsensus Process ESOP

Operations

Marketing

Sales

Finance

?

Manual

Complex

Security Risk

Not Scalable

Does this Give Executives an Agile Decision Making Process?

Systems Landscape


Change Your Reality; Drive S&OP Adoption & Values

Time

L1

L2

L3

L4

Q1 Q2 Q3

Excel/Manual S&OP

Step Change Maturity &

Performance

Avoid Process Failure

Q4

Valu

e

Accelerated Time to Value

“Companies can have a hard time getting past basic levels of S&OP without technologies like Steelwedge to support the process”

- Tim Payne VP Supply Chain Analysis, Gartner


Best Practice S&OP Aligns People, Process & Systems

“We continue to look at S&OP as an aspect of business that

needs terrific improvement…

It’s hard to argue this shouldn’t be a central piece of management

software”

–Rob Kugel, Ventana Research


Return on Investment is Substantial

Planning Cycle Time

Forecast Accuracy

Inventory

Customer Service

Revenue and Margin

Value Levers

50-70% Reduction

15-30% Improvement

20%-25% Reduction

25% Reduction in Stock-outs

1-2% Lift in Revenue

Typical Results


S&OP Success with Steelwedge

Demand Planning, SCM/APS Systems

ERP, Financial, & Transactional

SystemsSAP, Oracle, etc.

IndustryData

Single Cross-Functional Planning Environment

Interactive planning for:• All S&OP Stakeholders• Plan Review• Overrides• Assumptions• Scenarios• Consensus Process• Pre-S&OP• Executive S&OP• Audit Trail

Systems LandscapeProduct / Sub-FamilyCustomerRevenue

Product / FamilyTerritory / RegionRevenue

Product / Family PromotionsRevenue

Product / Family RegionUnits & Revenue

ProductStock LocationsUnits and Inventory

Family / Series Territory / RegionRevenue, Margin & Cash

Family / Series / BUGeoRevenue, Margin & Cash

ProductProduction SiteUnits and Capacity



Planning TermsStakeholders

Account Managers

Sales Managers

Marketing

Demand Planners

Supply Planners

Production Planners

Finance

Executives

Customers

Suppliers

Cross-functional Planning

Environment


Managing the Translation between Functions

Sales, Marketing, Product Management, Demand

Planning

Demand

Inventory, Production, Procurement and

Allocations

Supply

Profit & Loss, Balance Sheet

Finance

Executive Dashboards

Executive


Planning Dashboard

Steelwedge Enterprise Enabled Excel

Slice of view(hierarchy)

Time series of key figures

Planning data for review and

updates

Planning Views Combine Planning, Analytics in Familiar UI

Capture institutional knowledge / assumptions


Why Steelwedge?

• 100% S&OP Focus & Best Practices

• Proven Track Record of Delivering S&OP

• Ease-of-use, Flexible & Scalable Solution

• Power of the Cloud to Leverage Big Data

• Leverages Existing Investment in Systems

• Crawl Walk Run Approach“We’ve built a lot of structure to power our agility with

people, process and technology at Contech. I need a holistic view and Steelwedge delivers. There are

very few out there that can do what Steelwedge does.”

- Randy Ramsey, Director Supply Chain, Contech


Steelwedge is a strong leader in S&OP and IBP

“Steelwedge is an ideal solution for a heterogeneous environment with multiple S&OP processes with inputs from multiple ERP and APS technologies.”

Lora Cecere Founder and CEO, Supply Chain Insights

“Steelwedge has grown into one of the market's leading S&OP solutions". “Steelwedge has proven that it provides a capable and scalable Stage 3 S&OP solution suitable for global deployments.”

Tim Payne Research Vice President, Supply Chain Research Group, GARTNER

Steelwedge was among the highest ranked in capabilities scoring and was one of “the vendors that were notable in portfolio strategy and portfolio benefits delivered.”

Simon EllisSupply Chain Practice Director, IDC


Crawl – Walk – Run Approach

• Key to success is incremental value• Crawl: plan ahead with end in site• Walk: implement single solution• Run: measure, improve, expand• Sprint: align, integrate, monitor

• Start with quick win as phase 1 & foundation

• Expand the roll-out adding value as you go

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Game on! sony (scea) plans for profitability with sop technology updated sw2-feedback (3)