Crafting the Digital Enterprise Internally

Next Generation Digital Enterprise leverage

• The unique methodology to engage and determine the audiences across multiple media platforms
• Active participation and knowledge sharing across various groups
• Interactive initiatives and drives across organization
• New insights that can be obtained from this valuable data
• Know how this new data can be used to demonstrate the value of your audiences and sell more effectively

Executives in all industries are using digital advances such as analytics, mobility, social media and smart embedded devices as well as improving their use of traditional technologies such as ERP to change customer relationships, internal processes and value propositions. It helps to —speed up the day-to-day processes of learning, planning and sharing knowledge delivering all the services online.

—Key Facts of Digital Transformation in Major Industries :

• Roughly 30 per cent of firms are engaging in extension or transformation with mobile, social media or analytics technologies.
• Factories including both mobile and analytics technologies to improve production significantly.
• Analytics is used by 72 per cent of respondents, mobile and social media by 62 per cent of organizations, and embedded devices by 24 per cent, despite their relative nascence within most

Key Facts of M&E (Media & Entertainment) Companies:

• Digital revenue already exceeds 50%  of their company revenue for digital leaders
• 55% of all respondents rate internal use of mobile technology “very” or “extremely” important.
• 57% of top-line revenue will be derived from digital channels by 2015
• 68% say smart mobility will “moderately” or “substantially” drive revenue growth in the next 2–3 years.
• CTOs (24%) and CEOs (23%) have the most responsibility for digital vision and strategy.
• 49% of digital leaders say they are using second-generation mobile technology to develop products and services.
• Only 19% have deployed second generation big data analytics solution in generating revenue
• 64% of digital leaders cite creating a culture of innovation as top strategic priority

Approach for Digital Transformation:

• Establish a Cross Functional Digital council
• Appoint the digital leadership
• Define landscape
• Legal guidance
• Understand company vision & social media strategy
• Benchmark and Measure

Envision of additional features and Recommendations:

• Dashboards for collaboration and resource sharing
• Easy-to-use interface for fast user adoption
• Open API for integrating 3rd party content or self-made tools
• Integration with Management Information Systems
• Innovative project pages, digital tests, online discussion forums, blogs and video recorders 
• News programs, online exercises, encyclopedia searches,  images, videos, white papers
• Automatic reports to save time and effort
• Leverage the internal lessons learned for building client solutions
• Mobile support for all internal applications

Digital Transformation in the Utilities Industry:

• Utilities have only adopted digital technologies in specific areas of the customer  experience
• Analytics is not widely used to enhance either the customer experience or internal operations 
• Untapped opportunities may exist in worker enablement and process digitization
• Data and integration issues may present challenges in other areas
• Utilities’ digital transformation management practices are relatively more mature than their use of digital technologies

Demand Planning

Demand planning is a process of managing all the demands of the products to enable the Master Scheduler / Planner to plan the supply. The two main components of the Demand are ‘Forecast’ and ‘Sales Order’.

Kinds of Demand:

Dependent Demand: It is the demand for the product caused by the demand of other products. E.g. demand for the raw material like steel and rubber increases in case the demand for automobiles is increased.

Independent Demand: If the demand of the product is not dependent on any product, then it is independent demand. Demand for the automobiles in the above example is the independent demand.

Following are the sources for demand:

·         Referrers & Consumers
·         Dealers & Distributors
·         Intercompany
·         Service needs

Demand planning covers the following activities:

·         Forecasting
·         Order entry / Promising,

·         Branch Warehouse Requirements,
·         Interplant / Inter-organizational requirement,
·         Service Parts requirements

Demand planning also helps in long-term and short term process selection, capacity planning and facility planning.

Key Demand Drivers:

Customers: Customers are king in today’s era. Customer preferences, general perception, word of mouth etc. play a key role in demand generation.

Competitors: New competitors, competitor’s differentiation in product and technology are major threats to the business.

Economic Policies: State and Central government policies has major impact on the customer spending and hence on the demand of the products.

Regulatory Policies: Legal guidelines set by the authorities can increase or decrease the demand.

Order winners or Qualifiers: Customer expectations are based on cost, quality, delivery and after sales service are the order qualifiers. If the product / service have special characteristics that attract the customers over competitors are the order winners.

Marketing strategy: Determining the marketing segment, developing market niches, analyzing competition and increasing the market share are some of the key marketing strategies that boost the demand.

Customer Relationship: In today’s cut throat competition, customers are continuously required to be informed about the new products, sales, schemes, annual maintenance discounts and so on to develop loyalty.

Characteristics of Demand:  Trend, Seasonality, Random variations, Cyclical

Demand Planning consist of collation of data, selection of appropriate techniques, forecasting and then taking corrective action if actual demand varies significantly.

Demand Planning objectives:

• Planning of long lead time resources like assembly line installations, capital equipments
• Planning of medium or short term resources like material, human resources etc.
• Shorten customer delivery time

Key forecasting principles:

• Forecast will never be accurate
• Forecast shall include estimate of error
• Forecast is more accurate for shorter periods
• Forecasts are more accurate for a family or group of products

Forecasting Methods:

·         Qualitative Techniques:

o   Grass roots

o   Market research

o   Panel consensus

o   Historical Analogy

o   Delphi Method

·         Quantitative Methods

o  Extrinsic technique: Certain set of external factors are taken into consideration like independent demand, GDP growth, agricultural production, steel production, oil prices, housing sector growth etc.

o    Intrinsic techniques: These use the historical recorded data for future estimates.

§  Average demand

§  Simple moving average

§  Weighted moving average

§  Exponential smoothening

§  Seasonal index

§  Regression Analysis