Business Making Progress

Defining the “Responsive Supply Chain Executive”

Earthquakes, political uprisings and unforeseen every-day disruptions are just some of the stressful events that supply chain executives face daily. For any supply chain exec – especially those managing networks that span diverse geographies and markets – having visibility into the extended supply chain is a key component to staying on top of issues, improving responsiveness and meeting SLAs. All told, a lot goes into being a responsive supply chain executive in today’s environment. Here are two main must haves:

 

Real-time Visibility

Many businesses suffer from supply chain blind spots, impeding their ability to quickly recover from unexpected events and efficiently re-sequence their extended supply chain. A responsive supply chain executive must have real-time visibility throughout the entire network. This visibility allows managers to effectively “light up” those blind spots and proactively monitor the entire chain (no matter how dispersed it may be) to ensure that all processes are running smoothly through every touch point along the way. It also empowers executives to spot disruptions early, at any point in the system, and respond to them before they snowball and affect end deliverables and SLAs. Which brings us to our next must have…

 

Actionable Insight 

Being able to see the disruption is all well and good, but if you can’t react to it and address it, all benefit is lost. Responsive supply chain executives must have actionable insight, meaning they must be equipped with the ability to correct disturbances rather than simply acknowledge their existence. The ability to quickly respond to out-of-plan events allows execs to rapidly re-sequence their extended supply chain, meeting every SLA.

Until the day when we can correctly predict the future, supply chains will always be hindered by unexpected, uncontrollable events. When confronted with such an event – whether it be a natural disaster, geo-political issue or simple human error – the ability to quickly identify and respond is critical. In the absence of a crystal ball, advanced technology arms us with the ability to sense trouble and respond so we can keep supply chains active and flowing, despite what the world may throw at them.

 

 

Making 'Cents' of the Shifting Business Landscape

Last fall we collaborated with the Economist Intelligence Unit to look at how companies around the world are responding to the rapidly increasing pace of change in business. While I touched on some of the early quantitative results in a post for The Business Insider in September, the Economist researchers recently released some compelling qualitative data that shines a light on the ways organizations are tackling operational responsiveness.

 

A few key points caught my attention:

• Leaders need to be willing to conceive multiple futures and embrace uncertainty

“Companies need leaders who are tolerant of ambiguity and who can make others feel comfortable about that. They have to instill confidence in their teams that they are making the right decisions, even though it’s not clear how the future will evolve.” – Lowell Bryan, McKinsey

• Executives should listen to messages from the frontline 

“One of the most powerful sources of information about emerging adaptive opportunities and pressures lies at the frontline. Employees who interact with customers are always the first to get the clues and early warning signs about new sources of opportunity or competition.”

–      Ronald Heifetz, co-founder of the Center for Public Leadership at Harvard University’s John F. Kennedy School of Government

• Cultures will need to adapt 

“Most people have a bias towards the status quo, so when they are faced with a disruptive opportunity or threat, they see it as a virus they want to kill.”

-       Hal Gregersen of INSEAD

• Setting up a new division can be an effective way of managing disruptive change

“Setting up a separate unit with its own P&L and management allows that unit to focus on the breakthrough disruptive change, while the old unit can be shrunk down and moved to a space in which it can survive.”

-       Clark Gilbert, president and CEO of Deseret News and Deseret Digital, and a former professor at Harvard Business School

 

I encourage you to take a look at the Economist Intelligence Unit’s full report, Game Changer to hear more from these leaders and explore how you can affect change, stay ahead of competition and drive your bottom line.

And for those of you interested in more on the quantitative data, check out this infographic: 

Tweet and Be Damned

The following is an excerpt from Dr. John Bates’ recent commentary on Huffington Post, which discusses Twitter’s ability to predict financial market sentiment. 

Another firm has jumped on the Twitter sentiment bandwagon; Topsy Labs is planning to release a Twitter trading tool to investors later this year. Topsy follows U.K. hedge fund Derwent Capital, which launched a fund last year using a Twitter algo that claims to predict market direction three or four days in advance with nearly 88% accuracy. And U.S. firm Wall Street Birds, which offers a free service for investors to use to make investment decisions based on the analysis of social media data. (It has become so popular that to sign up you must get invited by an existing user.)

But are emotionally laden Twitter messages able to provide reliable bellwethers for market sentiment? As I said in an interview with Advanced Trading in April, I think you can use a Twitter algo to get a sentiment reading on particular topics, but by the time you've got the information it is more of a trailing indicator rather than a leading indicator.

Read the full post from Dr. Bates here. 

 

Improving the Banking Customer Experience - An Internal Perspective

Banking organizations are fraught with silos. Operating this way must feel like looking at the world through a straw, I imagine. With a limited view, your ability to affect change is thwarted by the distortion of the full magnitude of any given situation. With this narrow perspective, you’re vulnerable to errors or worse, fraud and revenue leakage.

Compounding this issue is the increase in customer demands. As expectations rise, tolerance for dissatisfying banking customer experience is at an all time low, and grumbling customers take to social networks to complain.

The good news is: there’s an answer. Banks can reevaluate their operations and gain the critical business level visibility needed to achieve premier levels of customer support. To do this, business leaders should assess four key areas:

• Volume – the number of customer requests coming in through all channels such as call center, online, mobile etc.

• Velocity – the pace of customer expectations (same session service expectations) and the ability to meet big data and customer requirements in real time at the moment they are requested

• Variety – the variety of data and channels we see such as web, mobile, call center, outsourcing services etc. The more channels there are, the harder it is to track, control and resolve issues before they reach the customer. Many institutions now outsource IT needs, etc. making it even harder to control each channel 

• Complexity – having end-to-end visibility into internal transactions despite multiple channels

You simply cannot offer new products and services and maintain consistent customer experience if you have not taken a hard look at your internal operations. The lack of visibility makes the complex dependencies between data sources and channels too hard to see and thus too hard to control.

To hear more about gaining end-to-end visibility in the banking world, check out Bank Systems & Technology’s recent webcast, “Customer Transaction Management - Gaining Visibility, Control and Reliability.” 

 

Straight From the Source: How One of Our ISV Partners Uses SaaS to Improve Business

Almost all businesses—large or small—have a need for a comprehensive human resources (HR) program to serve their most valued resources, employees. Leading integrated benefits, payroll and human resources solutions provider Unicorn HRO provides solutions to manage HR processes with greater speed, scope and depth.

In the ’80s, Unicorn’s on-premise solution addressed approximately half the target market needs, and they knew they wanted to offer more.  Today, Unicorn leverages the Progress OpenEdge SaaS application development platform to help their customers, from mega-corporations like McDonalds to lesser-known SMBs (small-medium businesses), do business with greater efficiency.

I asked Tim Diassi, EVP and GM for Unicorn HRO to share the top reasons they use SaaS and this is what he told me:

• Ability to deliver services via the Web -- Unicorn releases new software upgrades twice a year with updated federal, state and local tax rates. SaaS helps Unicorn keep everything up-to-date so that customers can quickly and easily take advantage of the newest software version to stay compliant.
• Reduced time-to-market – The scalability and flexibility of a SaaS application development platform accelerates the speed with which Unicorn distributes software upgrades. In fact, Unicorn migrated 50 clients over a single weekend, without a hitch.
• Business continuity and disaster processing – Just because your network goes down, doesn’t mean your business can stop running. Unicorn’s service teams have kept customers’ applications up and running during all kinds of crises, including Hurricane Katrina.
• Increased ROI – Thanks to the cloud, Unicorn has experienced double-digit growth for the past 5 years without adding any significant cost of capital investment for the development of new services.

The Progress–Unicorn partnership shows the true power of SaaS. We’re excited to continue to work with such an innovative company as they plan further leverage SaaS for increased efficiency and business process integration.

Thanks and as always, please feel free to drop me a line and let me know what you think.

Inventories lag as sales grow - supply chains balancing act

While many on the economic front were drawn to two numbers - the unemployement rate which was lowered to 8.5% the lowest it has been in 3 years and consumer spending/confidence was inching upwards - two signs that the economy is slowly moving upwards. There is another report, less heralded, but just as interesting: inventory levels. The wholesale inventory levels barely grew at the end of 2011, yet the sales for wholesale did well. For the month of November, the inventory level grew by only 0.1%, yet sales in October grew at 0.8% and in November 0.6%. Is there a disconnect there? Clearly the wholesale supply chain did not properly plan the growth of inventories to keep up with demand. Granted, it is not as simple as turning on a faucet and producing more inventories. Add to this the strain on inventory that certain companies such as Toyota suffered due to natural disasters and there is invariably going to be a drop in the availability of inventory.

What it does remind us, is the fact that we are still stuggling to close the loop between planning and execution.The growth in sales in October coupled with the upcoming holiday season, should have been signals that inventories needed to be ramped up. Now maybe the plans did not forecast a continued growth trajectory, but with a better tuned ability to sense, these companies could have done better responding as well.

I am fairly certain that we will see inventory levels grow a more rapid pace over the next few months to catch up with the demand. I also realize that there is a lag time between inventory and demand. The situation remains a good example and reminder of the importance of closing the window between sensing and responding to changes and shifts in demand.

Maybe it is time to buy some stock in manufacturing companies!

Greetings 2012 – Say Hello to OpenEdge 11

As was mentioned in mid-December, the latest update to our OpenEdge platform is now shipping, and I am pleased to say that it is enabling hundreds of our customers and ISV partners to securely develop and deploy applications across any platform, any mobile device, and any Cloud.

One of the highlights of OpenEdge 11.0 is our patent-pending Multi-tenant Tables, in which data is physically (not virtually) separated in the database - providing greater security and control for Cloud deployments. Multi-tenancy is a critical component and key differentiator for our customers and partners, along with our multi-Cloud deployment options, business process-enabled development, and support for mobile devices.

Feedback has been very positive and many customers are migrating to OpenEdge 11.0 sooner than expected to take advantage of the increased security in the Cloud, greater deployment flexibility, reduced costs, and faster time to market. Let me share some of that feedback with you now.

Security and Flexibility through Multi-Tenancy

Jeffrey Brown, Senior Development Project Manager at Infor notes, “Progress provides us with the technology to power our Infor10 Distribution Business, a distribution application specifically designed to help distributors with complex business models run an efficient, end-to-end operation. We are interested in the new multi-tenancy capabilities in the OpenEdge platform that could provide us with the flexibility to add an additional level of security and separation of data at the database level that is unique in the industry.”

Reducing Cost While Speeding Time to Deployment

Another Progress partner, a global medical software and services provider, used OpenEdge to develop an order management system for internal call centers. Multi-tenant Tables in OpenEdge 11 provide a viable solution for compliance with data security regulations customary to the healthcare industry. Moreover, it facilitates the roll-out of their order management system to all companies they acquire moving forward, which will be deployed in a fraction of the time, for a fraction of the cost, and with better security measures.

Efficiency and Moving Down Market with SaaS

Over in Germany, EDV-Software-Service AG (ESS), a provider of ERP software and services for the mid-size housing and real estate market, is leveraging OpenEdge 11 Multi-tenant tables to move to Software-as-a-Service (SaaS) to gain efficiency and expand into new markets. Their CIO Michael Förster explained, “Progress Software understands the needs of medium-sized businesses and helps us provide value to our customers and accelerate our time-time-market with new solutions. We took part in the OpenEdge Early Adopter Program and Multi-tenancy Workshop, and in only five days were given the tools and expertise needed to get our new release ready for launch in early 2012.”

I look forward to hearing more about how our customers and partners are taking advantage of OpenEdge 11.0. For more information on OpenEdge 11.0, please review the “What’s New in OpenEdge 11.0” feature highlight.

Here’s to a great start to 2012!

Thanks and as always, please feel free to drop me a line and let me know what you think.