IBP – Driving Efficiency & Profit

Integrated Business Planning (IBP) is the subject of our latest whitepaper “IBP – Demand Planning & Forecasting”. A recent study showed that 85% of all companies implementing a formal demand management program have generated significant performance improvements. Average gains include 13% improvement in overall forecast accuracy, 24% gain in inventory turns and 5% improvement in gross margin.

We explore how companies that work toward the Demand Driven Value Networks ideal use demand management (e.g. Foresite) as a key differentiating capability, so they can plan, sense and shape in a way that brings profitable balance to the business.

 

Did You Know? – Six Degrees of Separation

Marketeers are very familiar with this concept and use it to great effect. Six degrees of separation is the idea that all living things and everything else in the world are six or fewer steps away from each other so that a chain of “a friend of a friend” statements can be made to connect any two people in a maximum of six steps. Six degrees of separation was once dramatically proved by the BBC Horizon documentary to connect a person in the UK with a totally unrelated lady in China by making only six phone calls i.e. six degrees.

Six degrees was originally set out in 1929 by Frigyes Karinthy (1887-1938), a Hungarian author, playwright, poet, journalist, and translator who revolutionalised the art of humour and satire. He gathered his scientific knowledge not only from books, but also from his scientist friends and also devoted his attention to contemporary philosophers. He said: “The opposite to war is not peace, but the revolution of ideas” – how true that is in today’s technology and business environment.

Courtesy of Wikipedia and the Literary Encyclopedia.

View from the Other Side

We’re always told that it’s good to consider the other persons perspective. Things can look very different from the other side.

We know that better than most, but were nevertheless surprised to discover that we nearly missed a large potential market for Foresite that very recently emerged. The revelation came from Gartner’s “Supply Chain Top 25 for 2017” (24 May2017) which discusses the latest developments in ERP (Enterprise Resource Planning) software towards S&OP (Sales and Operations Planning), citing the emergence of demand-driven leadership as key in promoting supply chains that orchestrate a profitable response to demand.

In short, demand planning, as we know, is the lifeblood that fuels all supply planning and FP&A processes, but what the ERP vendors quickly came to realise was the following:

  • how inaccessible this data is in most companies, even from CRM systems
  • ERP/S&OP therefore uses statistical modelling based on historical data which is unreliable
  • There are vast inconsistencies in how these metrics are calculated and no one can agree

Introduce a little Foresite – we are currently looking to open discussions with several selected vendors to close this important gap.

 

ATTENTION Sales Training Consultants!

At Foresite SPA we are increasingly being asked by our clients to provide sales training and consultancy as FP&A teams are moving away from compliance and optimisation, towards a more strategic, customer-facing, disruptive role. This is raising the importance of both business partnering as well as leveraging the technology to deliver meaningful demand-side and supply-side planning.

YOU CAN HELP! Due to the wide geographical spread of our clients we need to remain focused on delivering our core sales technology which we have found to resonate well with current sales training methodologies from the consultants that we have recently worked along-side. We are therefore interested in partnering with suitable sales training consultancies that could benefit from such an alliance.

If you believe that your organisation can meet this challenge we would love to hear from you. Contact us

 

The Age of the Customer

The customer is the fundamental driver of change and the consequences of a customer-led, digital centric market are becoming very apparent!

Today’s business environment places a premium on understanding customers and knowing how to compete for the future. Empowered customers are driving up revenue risk causing companies to wake-up and get competitive.

So says Forrester Research in their ‘2017 Predictions’ whitepaper, recommending companies to take a hard look at their culture, processes, technology, and business metrics to understand how to compete and win in the age of the customer.

We recommend talking to Foresite SPA to see how Customer Intelligence (CI) might provide the customer centric metrics needed to outperform your markets and competitors and drive down revenue risk in your business.

If Proof Were Needed…

We all seek validation or proof of concept for our ideas and inventions and the same is true for new management techniques. Sales pipeline and performance analytics and S&OP have ever been the tools sought by ambitious and/or investor-led businesses. Indeed, Foresite predominantly operates with such companies to provide these solutions.

Proving the point; we are coming to the end of a three-month marketing campaign directed at UK manufacturing and service companies across a range of sectors and sizes who are in receipt of growth funding from PE houses. Our first wash-up meeting has shown that 70% of companies we approached understood and expressed an interest in the sales planning solutions we provide, and 8% have requested some follow-up action.

Not surprisingly we intend to extend our marketing to a much wider group and will share our more detailed findings in due course – so watch this space!

Foresite Wins BP’s Business of the Week Award!

We are delighted to have been picked as this week’s winner of BrightPig.COM’s  weekly Twitter competition for “Business of the Week”, an award recognised by BBC Dragons Den ‘s Theo Paphitis. Becoming a #BrightPigWINNER is a fantastic opportunity for our business and the recognition of our efforts in supporting ambitious businesses is hugely appreciated. Bright Pig are an award winning marketing company, helping Small Businesses become visible with Search Engine Optimisation (SEO) & Social Media. They say everybody has 15 minutes of fame, so we are ecstatic to receive a whole 10,080 minutes!

Sales Innovation Expo 2017

Foresite has always been a regular attendee and supporter of Sales Innovation Expo, and 2017 was no exception. Although we did not host any seminars this year, we met with many of the exhibitors to get an insight into the latest technical developments and trends in sales innovation. The quality of businesses exhibiting in 2017 was the best we’ve seen to date. We were particularly pleased to see so many companies developing in the S&OP space which is rapidly becoming recognised as the most significant innovation in delivering sales performance improvements. Foresite have led this market for 10 years now, and at the 2015 Expo presented the importance of S&OP demand-side planning as part of an integrated business planning (IBP) process.

The Investors’ Dream Metric

We never cease to be impressed by the range of innovative usages to which clients put a simple single figure metric – the G-Index or growth index.

Developed in 2005 for the Smithfield Corporation, this powerful index gave their investors clear visibility of the value potential being created across their $2.5 billion portfolio in Europe during the restructuring and transformation stage. G-Index fulfilled this requirement so well that we extended its functionality to provide drill-down capability to view the drivers and limiters impacting the index – an investor’s dream!

By comparison other companies have used the G-Index to enhance EBITDA multiples on business disposals and to assess sales synergies on acquisitions.

We see a variety of innovative usages for this smart metric ranging from investment plan validation to performance benchmarking.

It’s time for ambitious businesses and investors to make those dreams come true by adopting the G-Index as their key business capability metric.