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Managing YourBusiness at theSpeed of the Market
2002년 1월 25일
From Strategy to ExecutionBusiness Intelligence Imperative
2© Deloitte Consulting
22 Business Intelligence with Strategic EnterpriseBusiness Intelligence with Strategic EnterpriseManagementManagement
11 The Challenge- making better decisionsThe Challenge- making better decisions
33 Business Intelligence & tools Business Intelligence & tools –– evolving capabilities evolving capabilities
44 We can help you get there nowWe can help you get there now
Table of Contents
3© Deloitte Consulting
* Source: Deloitte Consulting Survey on Strategy Process
the highest level management or a specialist strategyteam
most managers don’t enjoy
discrete process that happens once a year or lessfrequently
an academic exercise
Operating budgets are developed separately from thestrategic plan(frequently don’t match the “top down”numbers)
“What we get but don’t want….”
Our clients are telling us about their current strategic process*
4© Deloitte Consulting
Our clients are telling us about their requirements related to theirstrategy process*
Clearer link to Value Creation and Shareholder Value
Optimized around possible scenarios
not a single “predicted” future
Dynamic strategies
constantly evolving and quickly responsive to market changes
Effectively communicated and “lived” by everyone in theorganization
Management processes more closely linked
Strategy
Business planning
Performance Measurement
“What we want but don’t get….”
* Source: Deloitte Consulting Survey on Strategy Process
5© Deloitte Consulting
Conventional Strategy ‘Living’ Strategy
The new model : “Living” Strategy
Annual Continuous/Dynamic
Top Down Enterprise-wide
Academic Strategy Action-Oriented Strategy
Slow & Reactive Quick & Anticipatory
Paper Driven Flows Technology-Enabled Flows
Directed / Painful Empowered/Enjoyable
Intuitive Informed
…to make better, quicker, more dynamic decisions.
6© Deloitte Consulting
Performance Management Challenge
management’s objectives and results are aligned with theshareholders’ objectives and results
(주주가치와 경영 관리 지표 연계)
Shareholders’Scorecard
• Dividends• Capital Gains
= Total Shareholder Return
= ? =
Management’s Scorecard
• Quality• Learning
• Productivity• Finance
7© Deloitte Consulting
Links between strategy, business planning and performancemanagement (전략에서 실행까지의 통합)
Top-down oriented targetsettingRigid resource allocation
Setting direction
Deployingdirection
Managing direction
Corporatestrategy
Businessstrategy
Businessplanning
Performancemanagement
Focused on improvement,not on absolute resultsContinuous process
Vital attributes for a Integrated planning process:
8© Deloitte Consulting
Challenge for Information
Speed of Information
Required speed ofdecisions leads toshorter reportingcycles(신속한 의사결정을위한 보고 주기 단축)
Financial marketsdemand hightransparency and ad-hoc information(투명성/적합성)
Complexity of Information
Many Information sources(internal/external)
High amount of internal information availablethrough distribution of ERP Systems
9© Deloitte Consulting
22 Business Intelligence with Strategic EnterpriseBusiness Intelligence with Strategic EnterpriseManagementManagement
11 The Challenge- making better decisionsThe Challenge- making better decisions
33 Business Intelligence & tools Business Intelligence & tools –– evolving capabilities evolving capabilities
44 We can help you get there nowWe can help you get there now
Table of Contents
10© Deloitte Consulting
Business Intelligence Imperative
Not go blindly forwardEquip ourselves with perspective
“Ignorance is the greatest threat to modern business”
“Business Intelligence 는 이를 달성 하기 위한 right path ”
Make sense of the business(Business 이해)Measure performance and project(성과 측정/관리)Improve relationships with stakeholders(주주 가치/관계개선)Create a profit opportunity(이익 창출 기회 도출)
11© Deloitte Consulting
Toward Business Intelligence Enlightenment
Driving the business
Making sense of the business
Insight asThe business
Optimise Stakeholder Relation ship
New revenue sources
RetentionAnd leverage
Efficiency ConsistencyProfitability
Understanding
Change The business
EnhanceThe business
Align The business
Grasp theBusiness
Source:Gartner Research,18 September 2001
12© Deloitte Consulting
Technical Definition
통합 enterprise software applications suitecommon business information warehouse다양한 원천으로부터의 정보 추출(Collating and filtering)
ERPLegacy systemsInternet
가치 중심 경영을 위한 경영진 및 stakeholder에게 필요한information, knowledge,tools 을 제공
Role-based portals
13© Deloitte Consulting
Business Intelligence
4 Main areas
• Linked to decision process(“Make thebetter decisions,faster”)
• People-oriented and personalized
• Contemporary
Decision support
• Carrying through reporting standards
• Overcome heterogeneity of systemsand processes
• Support cross-functional view
Analytical applications for processes
• Reconcile & align information fromvarious internal sources
• Ensure robustness & reliability
Internal data collection & Validation
• Reconcile & align information fromvarious external sources
• Shareholder & Information provider
External Information exchange
14© Deloitte Consulting
ERP system initially focused onenabling operational processes: nowthey are shifting to enablingmanagement processes as well
The “content” ofstrategy
The “process”of strategy
Competitive Business Intelligence는 SEM(Strategic EnterpriseManagement)기반 하에서 보다 성공적으로 실현 될 수 있다
McKinsey is a traditional strategyfirm: they advise clients on whatchoices they should be making
McKinsey &Company
ERPVendors
15© Deloitte Consulting
Combine strategy content and process into a powerful, highlydifferentiated SEM offering
전략수립 및 실행의Process 수립 및 개선
Strategy ManagementProcess
원천정보의 전략적 관리/분석 지원
Enabling Software (SP/ Vendor Applications)
On-going 전략수립 및 실행
Destination“Dynamic Strategy”
통합된 방법론 및 도구:Competitive Strategy, Value Based Management, Creativity
Stimulation, Scenarios and Option Evaluation, BalancedScorecard
“Best of Breed” Strategy Content
16© Deloitte Consulting
BI with SEM is a significant 2nd Wave opportunity
Many companies are seeking to realize additional strategic benefitsby leveraging their ERP systems through ‘second wave’ investments
Strategic Benefits Sought
customer needs 변화 에신속/정확하게 대처하기 위한개선된 통합 정보의 제공
market conditions 과연동된 신속한 사업 방향 변경관리 능력
조직역량의 최적화를 위한전략적 자원으로서의인적자원에 대한 Skill및Behavior 대한 보다 나은이해
58%
52%
47%
35%
29%
Major Focus Areas
Integration &Process
Information
CustomerResponsiveness /
Flexibility
Cost / Productivity
New ApplicationInfrastructure
Indicates % of companies that mentioned focus area of second wave initiative
Source: Benchmarking Partners, Achieving Return on Investment
17© Deloitte Consulting
External DataInternal Data
(operational/financial)Core Business Processes
Commercial& CapitalMarkets
ERP
SEM이란 전략에서 실행까지의 전사적인 경영 프로세스를 역동적이고,가치중심적으로 (dynamic,Value-based enterprise-wide)지원하는 Solution
Execution
DefineOperations
Plans
DevelopProjects
Appraise &Compensate
ManagePerformance
Performance Monitoring
Communication
StakeholderCommunity
StakeholderCommunity
Strategic ActionPlans
Strategy
PositionReview
Insight
Simulation/ ValueProfiling
Visioning/Option
Scenarios
What is Strategic Enterprise Management(SEM) ?
18© Deloitte Consulting
SEM 의 핵심 :VBM principles
Value Based Management (VBM)Principles
Transaction systems
Data Warehouse knowledgebase
Strategic Enterprise Management
Value-focused “content”
A next generation “plan &manage” process
An integrated set of tools
Strategic Enterprise Management
Value-focused “content”
A next generation “plan &manage” process
An integrated set of tools
Planning world(Strategic)
Transactionworld
(Operational)
BW
COMMERCIAL MARKETCOMMERCIAL MARKETCOMMERCIAL MARKET STRUCTURE & RESOURCESSTRUCTURE & RESOURCESSTRUCTURE & RESOURCES
Strategic PositionStrategic PositionStrategic PositionStrategic Position
Competitive PositionCompetitive PositionCompetitive PositionMarket AttractivenessMarket AttractivenessMarket Attractiveness
Scope & ContextScope & ContextScope & Context
Strategic IssuesStrategic IssuesStrategic Issues
InsightInsight ValueValueCreationCreation
Financial PositionFinancial PositionFinancial Position
GrowthGrowthGrowthEconomic ProfitabilityEconomic ProfitabilityEconomic Profitability
Critical Success Factors & Key Performance Indicators Critical Success Factors & Key Performance Indicators Critical Success Factors & Key Performance Indicators
Performance Monitoring & Incentive CompensationPerformance Monitoring & Incentive CompensationPerformance Monitoring & Incentive Compensation
Projects & ResourcesProjects & ResourcesProjects & Resources
CAPITAL MARKETCAPITAL MARKETCAPITAL MARKET MANAGED PERFORMANCEMANAGED PERFORMANCEMANAGED PERFORMANCE
ChosenChosenStrategyStrategy
Scenarios & OptionsScenarios & OptionsScenarios & Options
CreativityCreativityCreativity
Organizational & Technical ArchitectureOrganizational & Technical ArchitectureOrganizational & Technical Architecture
Standardof
Excellence
Return = 19.0%
Return = 14.9%
Return = 10.6%
Return = 6.4%
Nu
mb
er o
f C
om
pan
ies
Fortune 500Median
0% 10% 20% 30% 40% 50% 60%
50
100
150
200
350
300
250
E
B
C
D
A
EDW / Data Mart / Metadata
Legacy
ORACLE Applications
SAPDB2
Flatfiles
19© Deloitte Consulting
VBM:Key Concepts
Starts with the premise that Total ShareholderReturn (TSR) is the ultimate value measure andthat cash flow drives TSR.
-20Total Shareholder Return (Capital Gains & Dividends)
50
100
150
200
250
300
350
-10 0% 10 20 30 40 50 60
19.0%
14.9%
10.6%
6.4%
Num
ber
of C
om
pan
ies
% % % % % % %%
Fortune 500Median
Understands that the long term interests ofcustomers, shareholders and employeesare inextricably linked.
shareholder value is only created by managingcustomer and people value
ShareholderValue
CustomerValue
EmployeeValue
Is realized through an integratedmanagement process.
Performance-Linked
Compensation
CorporateGoals and Objectives
Corporate Strategy and
Value Profiling
OperationalPerf. & Cust.Measurement
Corporate Structure andFin. Strategy
Bus. Unit Stat. & Resource
Allocation
Is achieved when a systematic journey isundertaken.
Building a Value Infrastructure
Developing VBM Competency
Value Modelingthe business
Developing value-creating strategies
Definingvalue driversand performancemeasures
Aligningcompensationwith valuecreation
Creating thevalue imperative
20© Deloitte Consulting
Building a Value InfrastructureBuilding a Value Infrastructure
Developing VBM CompetencyDeveloping VBM Competency
TheValue
Enterprise
Making Value the MissionMaking Value the Mission
Value ModelingThe Business
Developing ValueCreating Strategies
Create the ValueImperative
DefiningValueDrivers andPerformanceMeasures
AligningCompensationWith ValueCreation
The Value Journey™A Value Transformation Implementation Program
21© Deloitte Consulting
High-level value drivers 와 operating value drivers의 연계를 통한 Kkeyperformance measures도출
Demand growth
Market Share (+1%)
Pricing Strategy
Payment Method
Leased Lines
Advertising
Maintenance
New Installations
Refurbishment
Site selection
Working Capital Mgmt
Value Drivers
Framework Provides Transparency
Value Driver Model Value Impact
Revenue +$100
Expenses +$60
Investment +$30
IncomeStatement
BalanceSheet
Cash FlowStatement
CFROI+0.5%
AssetGrowth+0.2%
FreeCash Flow
-0.3%
TSR; Share Price
+1%
22© Deloitte Consulting
To generate value-focused content, a hierarchy of value-basedperformance measures is needed. (가치 중심 경영의 성과 관리 지표 구축)
Alignment is Critical!
CFROIRe-investment Rate
Life-Cycle Fade
Operational Measures(A Value Scorecard)Sin
gle
Per
iod
• Have we created value for shareholders?
• What is the best strategy?• Will the strategy create value for
shareholders?
• Where are we creating /destroying value?
• Are we on or off plan?
• Where are we on/off plan?• How do we fix it?
TSR
CMV/TBRMul
ti-P
erio
d
23© Deloitte Consulting
재무정보중심과거지향적통제 중심외부보고 중심
재무 및 비재무 정보전략 연계과거 및 미래 지향경영진을 위한 정보
주주가치 창조현금흐름 중점operational drivers 와KPIs 를 financial valuecreation 연계경영진 및 투자자 모두를위한 정보
Traditionalmodel
BalancedScorecard model
Value BasedManagement
model전략 및비재무정보
자본시장 및기업가치 창조
가치 중심 경영 기반하의 성과 지표의 통합
Balanced Scorecard and Value Based Management/Shareholder Valuerepresents a natural evolution from a traditional performancemeasurement approach
24© Deloitte Consulting
How does it improve the business?
• Peoples behaviour andperformance is not fully alignedto the company’s goals andbudgets(비연계성)
• Reporting is largely financial withlimited linkage tostrategy(재무정보 중심)
• Management information islimited to top management.Individuals cannot see how theirperformance is impacting thestrategy(경영진 중심)
As Is
ScorecardScorecard
• Vision, mission and strategy 은comprehensive set of performancemeasures로 구체화
• Performance and actions 과strategy의 연계
• Reporting is balanced reflecting allkey drivers of value such as peopleand customers:Key Value Driver반영한 Reporting
• Behavioural change를 유도하기위한 individual measures,performance management,reward의 명확한 연계
To Be
25© Deloitte Consulting
Value Driver와 Cost driver 의 통합: ABM
Activities Attributes
ProjectsProjectsPlanningPlanning
EngineeringEngineering
Installation/RemovalInstallation/Removal
Warehouse ManagementWarehouse Management
Moves/RearrangeMoves/Rearrange
TradingTrading
OperationsOperations
Training and EducationTraining and Education
Business DevelopmentBusiness Development
TechnologyTechnology
Policy and StrategyPolicy and Strategy
LiaisonLiaison
External AffairsExternal Affairs
PersonnelPersonnel
Market InvestigationsMarket Investigations
CostCost
Fixed/VariableFixed/Variable
TimeTime
DriversDrivers
Quality ImpactQuality Impact
Value AddedValue Added
ImpactImpact
Volume ImpactVolume Impact
Complexity ImpactComplexity Impact
• Strategic Project Prioritisation
• Service Levels
• Change to Tariffs
Activity Based Management
• Functional costs allocated to activities
• Separation of different types of process
• More effective budgeting
• Faster results
• Understanding of project costs
• “What-If” capability for different operationalscenarios, e.g. new product/service.
Benefits=
+Impact
Allowing better long termplanning, Value Creation
26© Deloitte Consulting
• Forward-looking company resource model• 대안 또는 운영계획에 대한 what-if analysis
• 가격 결정을 위한 break-even analysis
Activity-Based
Management
ProductManagement
CustomerMeasurement
PerformanceSupport
StrategicManagement
OperationsManagement
SCM
• supply chainPerformance 측정
• InternalBenchmarking
• Transaction costbenchmarking
• BSC 및 VBM의Input
How does it improve the business?
• Rationalizecustomer portfolio
• Rationalize channelsof distribution
• Modify customerbehavior
• Cost-to-serve 절감
• High cost Businessprocess파악
• SCM Performance분석
• Re-engineering우선순위
• Make or buy의사결정
• Rationalize productportfolio
• Refinemanufacturingstrategy
• Product cost 절감기회 도출
27© Deloitte Consulting
Integrated Planning
Corporatestrategy
Corporate clarity, targets and frames
Businessstrategy
Vision, strategic business goals and KPIs
Businessplanning
Targets, clear responsibilityand accountability
Performancemanagement Shame and glory
Corrective actions
28© Deloitte Consulting
Key Attributes & Objectives
Holistic approach
Top-down
Focused on improved performance
Rigid resource allocation
Continuous process
To make strategy happen
To increase quality of plans
To eliminate planning outside strategic scope
To decrease time spent on number crunching
To ensure clear responsibility andaccountability
Key AttributesKey Attributes
Key objectivesKey objectives
29© Deloitte Consulting
How to develop?
Strategic direction template
Targets
Total Business Return
Cash flow return on investment
Asset growth
Frames
Strategic mode
Capex
Manning
Major Actions/Initiatives:
KPI Target: Up Time
Comments:
KPI and action plan template
Implement "Up Time" measure in all units Upgrade 7 old cracker furnaces to achieve one year of
operation without mechanical cleaning Increase test intervals for equipment 10% Implement statistical process control system (SPCS) in all
units
Action Responsible TimeSGEL
VKVK
03/0006/00
06/0012/00
94.2% in 2000 95.6% in 2002
new measure - no history available93,5
94
94,5
95
95,5
96
1 998 1 999 2 000 2 002
%
Up Time
TargetKPIsStrategic BusinessGoals
Vision
Business planning template
Performance management templateKPIs
KPI # 1 aaaaaaaaa
KPI # 2 sssss ssss
KPI # 3 kjhjh sdhj asdk
High level financials
Revenue #.###.###
Net operating income ##.###
Gross cash flow ###.###
KPI # 10 kjhjh sdhj asdk
30© Deloitte Consulting
Financials are of minor interest
GROSS CASH FLOW ESTIMATE PLAN
NOK million 1999 2000
Gross operating revenue- Operating costs & depreciation, depletion and amortisation= Operating income
+ Depreciation / write down+ Share net non-consol inv. (20-50%), excluding amort. / write
down+ Other cash items, net before tax- Standard calculated taxes (based upon tax rate from
corporate)
= Gross Cash Flow
GROSS CASH INVESTMENTS ESTIMATE PLAN
NOK million 1999 2000
Trade Receivables+ Inventory
- Accounts payable
= Net operating capital
+ Other non-depreciating assets, net
= Non-depreciating assets
Property, plant & equipment excl. land, net
+ Accumulated depreciation PP&E
+ Gross Plant Inflation Adjustment
+ Other Depreciating Assets, net
= Gross cash investments
FREE CASH FLOW ESTIMATE PLAN
NOK million 1999 2000
Gross Cash Flow
- Capital Expenditures
- Increase trade receivables
- Increase inventories
+ Increase in accounts payable
+ Other items, net
= Free Cash Flow
Financial statements 는Business Planning의 목적이아니라, 단지 그 결과물일뿐이다
corporate level의 TSR을위한 CFROINo focus on thefinancial statementsin the business plan reviewmeeting between divisionsand corporate
31© Deloitte Consulting
The most significant benefits come from focusing decision-making onimproving those measures that translate into increased shareholder value .
But it is worth the effort -- benefits can be significant.
Ability to translate overall business strategy into operational actionsand measures that will create value
Ability to link decisions across the company
Reduction in time to locate, access and analyze information
Reduced demand on staff to filter, massage, and cleanse data
Reduced Total Cost of Ownership in data extraction,consolidation and distribution due to enterprise view of informationrequirements
32© Deloitte Consulting
22 Business Intelligence with Strategic EnterpriseBusiness Intelligence with Strategic EnterpriseManagementManagement
11 The Challenge- making better decisionsThe Challenge- making better decisions
33 Business Intelligence & tools Business Intelligence & tools –– evolving capabilities evolving capabilities
44 We can help you get there nowWe can help you get there now
Table of Contents
33© Deloitte Consulting
The tools available to support the Enterprise management processhave tended to be stand-alone niche products.
34© Deloitte Consulting
Consolidation
Multi-segment
Scenario Analysis
Maintenance / Security / Admin
Ease of Use
Actual Upload and Comparison
Support for Modelling
Reporting
Analysis
Plann
ing
Tool
s
OLA
P
Tran
sact
ion
Proce
ssin
g
Datab
ase
Solut
ion
Budge
ting
Tool
sSpr
eads
heet
EIS
Good
Poor or notapplicable
Fair
Illustrative only - not intended to be used for system selection. Individual products may deviate from these illustrative evaluations
The only way to obtain a complete set of functions and features hasbeen by combining tools.
Dynam
ic M
odel
ling
Tool
s
35© Deloitte Consulting
But, the major ERP vendors have moved to introduce integratedBusiness Intelligence suite
Decisions
Information
Data
Business ProcessesBusiness Processes
TransactionsTransactions
Management Processes
ERP정보 등을 이용한management
& strategy processes
지원하는 Business IntelligenceTotal Solution을 제공
통합된 ERP 시스템의 구현을 통한거래처리 업무 프로세스 개선
36© Deloitte Consulting
22 Strategic Enterprise Management (SEM) Strategic Enterprise Management (SEM) –– BBroadly roadly DDefinedefined
11 The Challenge- making better decisionsThe Challenge- making better decisions
33 SEM vendors and tools SEM vendors and tools –– evolving capabilities evolving capabilities
44 We can help you get there nowWe can help you get there now
Table of Contents
37© Deloitte Consulting
““We will help yourWe will help yourorganization to developorganization to develop
and execute betterand execute betterstrategies, faster thanstrategies, faster than
the pace of your marketthe pace of your market””
38© Deloitte Consulting
We can help you get there now
We use proven methods and tools to align SEM content withshareholder value(검증된 방법론 및 지원도구)
We have successfully implemented SEM capabilities and haveadditional projects underway(성공적인 프로젝트 구현 경험)
We can facilitate either a bottom-up or top-down implementationapproach(Industry/Corporate 의 상황에 맞는 다양한 구현 방법 지원)
We bring a toolset that will reduce your time-to-benefit (구현 기간단축을 위한 검증된 Toolset 보유)
39© Deloitte Consulting
Our toolset will decrease your time-to-benefit.
InformationPrintTM 정보화 요구사항 파악,문서화 및 이의최적화를 지원 Tool
StrategyPrintTM 전략 수립 및 전략적 KPI 선정을 지원하는 방법론및 도구
IndustryPrintTM 산업별 선진 상세 프로세스 제공하여,프로세스성과 측정 및 관련 데이터 요구사항 정의/수집 지원 도구IndustryPrintTM
InformationPrintTM
StrategyPrintTM
Information
Consumers
InformationComponents
Bu
sin
ess
Dim
ensi
on
s
ChosenStrategyChosenStrategy
Projects andResources
Projects andResources
PerformanceMonitoring
PerformanceMonitoringFinancial PositionFinancial Position
Strategic PositionStrategic Position
Capital MarketCapital Market
EconomicProfitabilityEconomic
Profitability GrowthGrowth
Commercial MarketCommercial Market
MarketAttractiveness
MarketAttractiveness
CompetitivePosition
CompetitivePosition
InsightInsight CSFs and KPIsCSFs
and KPIsStrategic
IssuesStrategic
Issues
Scope and Context
Scope and Context
CreativityCreativity
Scenariosand OptionsScenarios
and Options
TimeTime
Create & MaintainCustomer Profile
Capture CustomerAccount Structure
Capture OrderInformation
Perform CreditAnalysis
ManageReferenceInformation
Perform OrderRegistration
Perform ServiceProvisioning -
External & Internal
Install & TestCustomer Equipment
Perform OrderCompletion
Develop SupplyChain Strategy (1)
Develop &Maintain
ProcurementPolicies
Forecast Demand
QualitySuppliers
Establish SupplierArrangements
Manage SupplierRelationships
Manage PurchaseRequisitions &
Orders
Procure NetworkEquipment (2)
ManagePayables
Develop SupplyChain Strategy (2)
Manage Inventory
Receive & StoreGoods
Fulfill Orders
ManageReturns
Manage Material& Asset
Disposition
ManageTransportation
Operations
Manage FacilitiesEquipment &
Labour
Manage AncillaryServices
Perform EventCollection &Validation
Perform Bill Certification& Validation
(Revenue Assurance)
Perform BillComputation
Process Payments
Manage InformationSharing
Support CustomerInquiries
Perform CollectionActivities
Manage AccountsReceivablePortfolio
Manage &Monitor theNetwork
Process TroubleOrder
Assess TroubleLocation
Isolate & RepairNetwork Plant
Isolate & RepairCustomer Premise
Network
PerformOperatorServices
PerformDirectoryServices
Assess Markets &Customers
Develop Products& Service Strategy
Enhance ExistingProducts & Services
Withdraw/MigrateProducts & Services
Develop NewProducts & Services
Manage Product/Service Launch
Develop Marketing& Sales Plans
Manage Products& Services
Manage Pricing& Tariffing
Manage Advertising
ManagePromotions
ForecastDemand
Execute Marketing& Sales Plans
Perform OtherMarketing & Selling
Duties
Develop NetworkStrategy
Plan the Network -New Technologies
& Services
Plan the Network -Capacity
Design & Engineerthe Network
Procure NetworkEquipment (1)
Build theNetwork
Perform OtherNetwork Planning
Procuring &Provisioning Duties
Develop/Enhance/Withdraw Products
& Services
Market & SellProducts
& Services
Plan, Design& Build
the Network
Perform OrderManagement
Perform ServiceProvisioning
Procure Materials& Services
ManageLogistics
Perform Billing& Remittance
Perform ServiceAssurance
Provide Operator& DirectoryServices
Our SEM Diagnostic best practices 및 SEM 구현 이슈의 신속한해결을 지원하는, 실제 구현을 통해 검증된 ToolsetSEM
Diagnostic0
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Value-focusUse of MeasuresTarget SettingInformation RequirementsStronglyAgree
StronglyDisagree
Holt Value Associates 의사 결정이 주주 가치에 미치는 영향분석 을 위한 Toolset및 자본시장 데이터베이스정보를 제공해alliance partner
Holt ValueAssociates
40© Deloitte Consulting
Holt Value Associates’ methods and tools
A FA Financial Investm entA eltus Investm ent M gm t., Inc.A lex B row n C apitalA llied Investm ent A dvisorsA lliance C apital M gm t. C orp.A m erican C enturyA m erican C entury Investm entA tlantic C apital M gm t.A tlas C apital, L.P.A rden G roup, Inc., TheA uchincloss & Law rence, Inc.B P A m erica, Inc.B TR C apital M anagem ent, Inc.B ahl & G aynor Investm ent C ounselB ank of A m ericaB ay Isle FinancialB oys, A rnold & C om panyC am biar Investm ent Inc.C anyon Partners Inc.C apital R esearch C o.C apital TechnologyC astleR ock PartnersC hase Investm ent C ounsel C orp.C itibankC lifford A ssociatesC olum bia M anagem ent C o.C om posite R esearch & M anagem entC om pu-V al Investm entsC rabbe H uson G roup, Inc.C ram blit & C arney, Inc.C reekside Investm ent M anagem entC restw ood A sset M anagem entD avis Selected A dvisors, L.P.D avis Skaggs Investm ent M gm t.D ean W itter Intercapital Inc.D elaw are Investm ent A dvisors, Inc.Eagle G lobal A dvisorsEaton C orporationEdw ard Jones & C o.
Enright Financial C onsultantsEquinox C apital M anagem entEveans, B ash, M agrino & K lein, Inc.
Farm ers Insurance G roup of C om paniesFirst N ational B ank, SW O hioFlem ing C apital M anagem entFrontier Investm ent M anagem ent C o.Frost N ational B ankG M G /Seneca C apital M anagem entG EM Land C om panyG eneral A ccident Insurance C o.G eneral M otors Inv. M gm t. C orp.G lobeFlex C apitalG oefen & G lossberg, Inc.G reenleaf C apital M anagem ent G ries Financial C orp.G uardian, TheH G K A sset M anagem ent, Inc.H otchkis & W ileyH ow ard H ughes M edical InstituteH ughes Investm ent M anagem ent C o.H utchens Investm ent M anagem entInvestm ent A dvisors, Inc.
Investm ent C ounselors, Inc.JanusJohnson Investm ent C ounsel, Inc.Jurika & V oyles, Inc., Investm ent M gm t.K PM Investm ent M anagem ent, Inc.K alm ar Investm ents, Inc.K anaw ha C apital M anagem entK em pner C apital M anagem ent, Inc.K ennedy C apital M anagem entK unath K arren R inne & A tkin, Inc.Legacy C apital M anagem entLegg M ason C apital M gm t., Inc.Leonard M anagem ent G roupLockheed M artin C orp
Logan C apital M anagem ent, Inc.Luther K ing C apital M gm t.Lutheran C hurch, TheM cM urrey Investm ent A dvisors, Inc.M ercantile TrustM eridian Investm ent C om panyM errill Lynch A sset M anagem entM esirow FinancialM ississippi V alley A dvisorsM ontag M anagem entN ational C ity B ankR ubber & Plastices #1 Securities L.P.N oroian C apital M anagem entN orw est C apital A dvisorsN W Q Investm ent M anagem ent C o.O ppenheim er C apitalO ppenheim erFunds, Inc.O ppenheim er M anagem entPacific A lliance C apitalParnassus Fund, ThePeregrine C apital M anagem entPhilip V . Sw an A ssociatesPioneering M anagem ent C orp.Plaza Investm ent M anagers, Inc.Prudential M utual Fund Investm entPSA FinancialPutnam C om panies, Inc.R C M C apital M anagem ent, LLCR M Investm ent M anagem ent, Inc.R ichard B lum & A ssociatesR oberts, G lore & C o.R obertson Stephens & C o.R oger H . Jensw old & C o., Inc.R oulston & C om pany, Inc.Salom on B rothers A sset M anagem entSand H ill A dvisors, Inc.Schneider C apitalSC I C apital M anagem entScholtz & C om pany
Securities M anagem ent & R esearchSeligm an, J.W . & C o., Inc.Sentinel Trust C o.SM C C apital M anagem entSheffield Investm ent M anagem entShields/A llianceSignet A sset M anagem entSm ith B arney Investm ent A dvisorsSoros Fund M anagem entSovereign A dvisors, Inc.Spears B enzak Salom on & FarrellSpero Sm ith Investm ent A dvisers, Inc.Stafford Trading Standard Pacific C apital LLCStar B ankStarbuck, Tisdale & A ssociatesState of N ew JerseyState Street R esearchStein R ow & FarnhamSterling Ltd.Stonebridge C apital M anagem ent Inc.Stoneleigh Investm ent C ounselingStrong C apital M anagem ent, Inc. Sturdivant & C om pany, Inc.Sum m it Investm ent M anagem entSun Life of C anadaTiger A sset M anagem entT. R ow e PriceTexas C om m erce B ankTR U SC O C apital M anagem entTrust C om pany of the W estU SA A Investm ent M anagem ent C o.V A R etirem ent SystemW .D . H utchinson & A ssociatesW ashington Investm ent A dvisorsW eiss, Peck & G reer Investm entsW ellington M anagem ent C om panyW oodside A sset M anagem ent
Fidelity Investm ents
Invesco C apital M anagem ent.
Your major investors may be using Holt tools and methods!
41© Deloitte Consulting
How do I growprofitably?
How do I allocateresources?
How do Icontinuously
improve?
Deloitte Consulting overall Framework
CompetitiveCompetitiveIntelligenceIntelligence
BusinessBusinessPlanning &Planning & Simulation Simulation
StakeholderStakeholderCommunicationCommunication
PerformancePerformanceManagementManagement
SegmentedSegmentedBusinessBusinessReportingReporting
Link the Link the planningplanning world world
with the with the transactiontransaction
worldworld
Valuation ToolsValuation Tools
StrategyStrategyDevelopmentDevelopment
Functionality Delivered bySEM tools
42© Deloitte Consulting
Iimplementation approach(구현 방법-예시)∞Strategy Formulation
Strategy Execution
Bottom-Up Top-Down
Refine business strategy &identify KSFs
Refine business strategy &identify KSFs
Define new KPIs & implementPerformance measurement
Define new KPIs & implementPerformance measurement
Design & implementcustom DW cubes for KPIs
Design & implementcustom DW cubes for KPIs
Implement standard DWcubes
Implement standard DWcubes
Refine standardERP reporting facilities
Refine standardERP reporting facilities
Use DW information to reviewbusiness strategy
Use DW information to reviewbusiness strategy
Implement PerformanceMeasurement to deliver
current KPIs
Implement PerformanceMeasurement to deliver
current KPIs
Design & implementcustom DW cubes
Design & implementcustom DW cubes
Implement standard DWcubes
Implement standard DWcubes
Implement core ERP modulesImplement core ERP modules
Source & extract data fromexternal sources
Source & extract data fromexternal sources
Source & extract data fromexternal sources
Source & extract data fromexternal sources
43© Deloitte Consulting
The Roadmap to ExcellenceS
tart
Implement systemfor financialconsolidation &managementreporting
Implementsystems forenterpriseplanning,budgeting &performancemeasurement
Implementsystem forimprovedsourcing ofexternalInformation
Implementdynamicbusiness strategysimulation tool
Train managers inVBM
Reengineer strategyformulation, planning &performancemeasurement
Re-definecompensationschemes
SE
M D
iag
no
stic 1 2 3
1 2 3 4
Skills &Process
Infrastructure
44© Deloitte Consulting
구현사례
SaskPower
Barclays Bank
Global Food/Beverage Company
Vodafone UK Financial Institution
Marconi
US West BAT
Norwegian Conglomerate
Microsoft
Ipalco
Telecom Italia
ABN Amro
Other Financial Services
PfizerMajor UK Retailer
Rinascente
45© Deloitte Consulting
Vodafone - slide 1 of 4
Project is to implement a new financial performance managementprocess
The key client requirements are:How to build a framework / infrastructure today for the uncertainty ofthe futureHow to ‘decouple’ the cost of obtaining the necessary information fromthe cost of major system replacementHow to move to a forward looking system - even if it is not 100%accurateFinancial performance to be integrated within and overall distributedmanagement reporting architecture(통합성 제고)How to align the performance measures (KPIs) with the strategy of theorganisation(전략과 연계된 성과 관리)
46© Deloitte Consulting
Vodafone - slide 2 of 4
Client benefitsprofitability & lifetime value 중심의 KPIs정보 제공profitability and an economic model of the businessCustomer and product lifetime value analysisVisibility of “Group” projects and their relationship to the business planSpeed, flexibility, reliability and integrity of informationProduct, project, segment, tariff and customer viewsBenchmark against external measures as far as possible“Reporting :proactive agent of change rather than a matter ofhistorical record”Enhanced and simplified forecasting
47© Deloitte Consulting
Vodafone - slide 3 of 4
Financial Performance Management Project - Phase 1 ReportFinancial Performance Management Project - Phase 1 Report
Profitability Engine
Network Model
ABC Attributes
Life Time Value Model•Products•Segments
Source transactionalsystems
Financial data
NonFinancial
data
Database (RDBMS)
ExtractRoutines
XLSextracts
Reports BSC OLAP
Web-based Executive Information System
Cube
And finally, the KPIs and other reporting information is madeavailable via a web-enabled set of reporting tools
Subscriber Admin
Segmentation
Retail Billing
Wholesale BillingProjects
Supply ChainCRMCall Centre
Network Performance
Pre-pay acct.manager
HR
Finance
ODS
48© Deloitte Consulting
Norwegian conglomerate - slide 1 of 6
Client backgroundA Norwegianconglomerate….
….. with globaloperations
49© Deloitte Consulting
Norwegian conglomerate - slide 2 of 6
The objectives of the project were to:
현재의 Performance Management model 평가 후,improved model 을 개발 :
Better reflect management’s requirementsImprove business decisionsReduce complexity and improve performance in otherfinance processes
Finance related processes에 대한 획기적인 개선 Plan개발
Transaction ProcessingReportingBudgeting
50© Deloitte Consulting
Norwegian conglomerate - slide 3 of 6
A Strategic Enterprise Management model was implemented, based onValue Based Management and Balanced Scorecard principles:
Focus everyone on creating value for the group as a wholeClarify responsibilities and hold people accountable for things they cancontrolCorrelate financial performance with the capital market
Focus on CFROI as the primary financial value measure
Value Modeling 을 통한 KPI framework 제공Value creation을 제공하는 controllable operational drivers and KPIs도출
decision making and planning 지원 도구 제공
value creation을 위한 management processes구축Strategy, Capital Allocation, Target Setting & Business Planning,Performance Management
51© Deloitte Consulting
Norwegian conglomerate - slide 4 of 6
Value creation
CFROI Growth
InvestmentCash Flow
OperatingCosts
RevenueWorkingCapital
AssetProductivity
Drivers & KPIsVolumePriceCustomerRetention%
Drivers & KPIsVariableCapacityIndirectHES
Drivers & KPIsInventory daysA/R daysA/P days
Drivers & KPIsUp timeUtilisationEmployeeTraining
Value modeling
Strategy
Capital A
llocatio
n
Perform
ance
Measure
ment
Target Setting
& Bus. Planning
52© Deloitte Consulting
Norwegian conglomerate - slide 5 of 6
Key activities in the SEM engagementBusiness planning process에 대한 Detailed designdivisions and business units 에 위한 Business planning templatesIntegrated Planning및 KPI선정을 위한 Value ModelsExtensive training (over 500 managers)Business planning databaseKPI best practice repositoryKPI and action plan databaseHelp-desk service
53© Deloitte Consulting
ABN AMRO - slide 1 of 2
Projectnew costing methodology 구축
Cost Budgeting and Planning & Control Cycle을 개선하기 위한 Data 및 businessarchitecture 구축
The objectives were to:Branch compensation, benchmarking and cost reduction purposes에대한 Model 개발기업의 전략적 목적에 부합하는 Proactive information infrastructure구축
Deliverables:
Activity Based Costing modelsmanagement information 에 대한 Data warehouseIT strategy
54© Deloitte Consulting
ABN AMRO - slide 2 of 2
Client benefits - The integration of aggregate information for decisionmaking retrieved from existing information sources realized thefollowing benefits:
New information capabilities are delivered to the organization (newviews)No duplication of information entering (reduce re-keying)Leverage on existing investments (use what has been built)Time and quality improvements (only one version of the truth)
The whole process has ensured that the company:Can ensure that the performance measures are in line with strategicobjectivesCan plan an incremental approach to the technical delivery of datathrough the global data warehouse
55© Deloitte Consulting
Singapore Telecom – slide 1 of 2
pilot customer and product profitability (CPP) system구축
CPP information을 senior management 제공 목적
Front-end activity-based costingSystem 구축
Network Model(plotting logicalnetwork diagrams andcalculating the cost driver fortraffic-sensitive networkelements): 딜로이트 컨설팅 모델 사용
Data storing을 위한 datawarehouse 구축
client’s OLAP reporting 요구충족을 위해 다수의 multi-dimensional data cubes 구축
profitability, revenue drill-down,cost drill-down, and unitrevenue/cost reports
CPPDatabase
ReportingTools
DataMart
Reports
PC
Network Model
PC
ABC Model
FinancialSystem
Pilot Customer and Product Profitability System
56© Deloitte Consulting
Singapore Telecom - slide 2 of 2
CPP Data Mart
(OracleExpressServer)
NetworkModel
ODBC
OracleExpressAnalyzerFront-end
SNAPI
ABCApps
NT Server
NT Server
WIN’98 PC
WIN’98 PC
WIN’98 PC
OD
BC
ExportTables
FACTTables
Network Model Tables
ABC Tables
Control Tables
CPPDatabase(Oracle 8i)
CP
P L
inks
CPP OLAPTools
Visual BasicFront-end
User
User
#
Data[SAP-FI-SL,Excel files]
Excel Files
ABC Links
WIN’98 PC
NOTE: Reports generationpoints are indicated by #
Use
r
WIN’98 PC
VBNM Data[Excel files]
New ABC Model
VB NetworkModel (VBNM)
CPP Database &Data Mart
OLAP ReportingTools
#
57© Deloitte Consulting
Telecom South Africa Ltd
business issues 및 regulatory reportingobligations충족 목적을 위한 financialinformation system 구축
regulatory reporting requirementssophisticated business unitinformation needs to control andmanage costsaddress network expansion decisionsimprove pricing capabilities
Stand-alone pilot system 구축integrated system design 및 developmentGuideline제공
Conceptual Data Flow Model
Change LeadershipChange Leadership
• Activitybasedcosting
• Networkcosting
• Processmodelling
• Activitybasedcosting
• Networkcosting
• Processmodelling
ExistingExistingDataData
SourcesSources(Billing,(Billing,
Financial,Financial,etc.)etc.)
Data
ware
house
Deci
sion S
upport
Exe
cutiv
e I
nfo
rmatio
n
Financial/Non-Financial
58© Deloitte Consulting
구현 사례를 통한 Key Success Factor
Top management support
Client ownership
Commitment of full-time quality resources from client
Linkage to competitive strategy, especially quality and continuousimprovement programs
Training, education and more training
Start with a scoping and planning stage and then a pilot
Overcome resistance to change
Consensus and clarity of objectives of the project - Define your destination!