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4:28 min
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Hi, I'm Robert Kugel, executive director with ISG.
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Thank you for joining us today.
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We're gonna be discussing data complexity
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and the challenges that go with that, with David Marmer,
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senior Vice President from board.
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Hi David. Great to have you join the conversation today.
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Hey Robert. Thanks for having me. Appreciate it.
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ISGs research identified product
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and process complexity as well as data silos, as major
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barriers for companies in managing their supply chains.
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For example, the research found
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that supplier complexity is common.
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81% of companies have more than a hundred suppliers.
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42% have more than a thousand.
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And as for products, 79% have more than a thousand SKUs.
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And data for its part is scattered between systems
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and often only kept in spreadsheets.
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So, David, given that, how should companies begin
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to address these challenges
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and what's possible with today's technologies?
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So, that's a great point. So I'm gonna start
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by just bringing onto
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what I think is a fairly familiar pain point.
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Uh, refer to it as integration debt Over time,
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many organizations just accumulate
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dozens of disconnected systems.
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They may have one for demand, they'll have another one
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for supply and another one for finance.
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And each of these need constant maintenance
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and frankly, manual data reconciliation.
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Uh, and the integration debt is this hidden cost
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of the complexity that they've created.
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It drags, um, and slows down the business
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and the ability to really respond
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and make any meaningful change.
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And it shows up as inconsistent data.
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It shows up as redundant processes
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and endless it projects just to try
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to keep the systems talking to each other.
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And in today's volatile supply chain, that kind
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of friction can be the difference between agility and chaos.
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And so when we think about the type of systems that need
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to be in place, um, I, I think
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that the answer really lies in the idea
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of a unified planning model.
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And that's what the technology of today can bring.
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A single integrated environment that connects all the layers
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of planning, demand, supply, and finance.
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Instead of stitching together data
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through custom integrations, uh,
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they model everything really in one place
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where all assumptions, all forecasts,
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all key performance indicators stay synchronized.
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And this eliminates the need for
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that manual reconciliation I spoke about earlier
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and builds a foundation for true end-to-end visibility.
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And it's not just about connecting systems,
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it's about aligning the entire organization
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and how the plans are executed.
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So David, what's the first thing you recommend
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that organizations do to begin
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to address the challenges of complexity?
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Yeah. And so this is an important part
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of understanding how to get started.
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So I think the first thing that companies really need
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to look at organizations need to look at is
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to access their integration landscape.
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Um, you know, what are the biggest bottlenecks
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and where do the redundancies exist?
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'cause as you mentioned, with all the spreadsheets
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that exist, there's guaranteed to be redundancies there.
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Second, they should prioritize the highest impact use cases
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they wanna focus on, like demand and supply chain alignment
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or sales and operations planning,
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where this integration debt is causing the most pain.
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And third, they should adopt a more unified data model
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and really start to harmonize, uh,
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and look at the master data
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so everyone can be speaking the same language.
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And then last I'd say is they want to, they,
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they should be really thinking about implementing
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iteratively, right?
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Move one business unit as a time
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or one process at a time into the unified model.
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Otherwise they risk things getting out of control again.
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And finally, they need to embed
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some level of governance over this.
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Someone has to define ownership for the planning data
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and then keep the business
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and the IT organization aligned
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as the systems evolve over time.
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Great. Well, thank you David,
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for your perspective and insights.
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I really enjoyed our conversation.
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Well, thank you Robert. I appreciate it. Thank you.
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Thanks again for joining us.
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We invite you to listen to our other experts from board in
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this series on unified continuous planning for supply chain.
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We are confident that you'll find them informative
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and well worth your time.