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How is APO consulting market

APO: Advanced Planning and Optimization

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How is APO consulting market

Postby sat_apo » Tue Dec 16, 2003 4:28 am

Hi,
After hectic req. in the Q3, market was pretty dull since beg. of Q4. where as R3/BW market is in full swing even in taild end of year.How my fellow APO folks feel for next Q and next Y.
thanks
sat
sat_apo
 

Postby Parksy » Tue Dec 16, 2003 5:05 am

Sat

I'll agree that it is a funny old time at the moment. Lots of companies want to go down the APO route, but I feel that market conditions are keeping them from committing the spend and time at present.

In the UK, there are a fair number of companies moving into DP side and trying to improve their forecasting processes. It is a natural progression for R/3 customers, but unfortunately for us a slow one nonetheless.

We are starting to see a bit more interest in SNP too, again this seems restricted to clients who have successfully implemented DP and are looking at the next steps in improving their supply chain.

I suppose us poor old PP/DS gurus will have to wait a wee while longer before we are in total demand !! :cry:
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Postby guest_apo » Tue Dec 16, 2003 11:56 am

Hallo ,

I aggree both of you. I don' t think APO market is going to be good in the coming years because concept of optimisation doesn't make sense to most of the people according to my experince. I think CRM and BW concept is going to be the rising stars of the coming years .
guest_apo
 

Postby Haribo56 » Tue Dec 16, 2003 12:58 pm

Parksy,

About time you jumped in to the big bad world of contracting. Forget the sheltered waters of a consultancy. You know you want to!

:lol: :lol: :lol:

Regards

Haribo
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Postby Parksy » Wed Dec 17, 2003 10:20 am

You wouldn't get me being a consultant - before I knew it, I'd be ordering a brand new BMW X3 !! :wink: 8)
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Postby guest_APO » Thu Dec 18, 2003 11:34 am

I would be ordering more of that if anyone warned me.
guest_APO
 

Yepp!

Postby klausg » Mon Dec 22, 2003 6:11 am

What about the X3? It's a fancy vehicle isn't it? :-)
Now, we had a veery slow Q4 this year two, basically because some clients are already doing the new release 4.7 enterprise and can not or do not like to afford any APO at the moment. We have one ramp-up client, he is big-time interested in almost all features. We'll do DP, SNP, PPDS and... tataaaa TPVS. We do not have anyone interested in the SCEM or ICH yet, but we expect to get a project by Q2 next year.

Apprently, BW definetely is a hot item for clients - but so is the Supply Chain performance measurement. We expect that our 'old' clients will come up with the idea, after we question them a little how they are doing with their optimization and forecasting.. and once they realize they do not have a clue how they are doing, we will be rite there... but I guess, we will be using BW for that part.

well, I suppose I rather make this day a non-working day.
have a merry christmas, and more work next year to all of you :-)
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Postby guest_APO » Mon Dec 22, 2003 8:37 am

Just to speculate on DP

honestly does anyone believe on DP?
I dont believe in fact even though I am an APO-DP Consultant.
I wonder how you make the customers believe in these optimization concepts. :)
guest_APO
 

Postby Haribo56 » Mon Dec 22, 2003 9:14 am

a rather interesting concept guest_APO???

If you are only DP, then surely there is NO concept of optimization. It is the pure unconstrained demand that a company should expect to sell over a given period.

It is then left for the heuristics & optimizers in SNP/PP-DS to deal with optimization concepts.
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Postby guest_APO » Mon Dec 22, 2003 12:33 pm

:lol:

Thank you for your your info
That's why there are many SNP, PP/DS projects in live and many companies benefit from optimization. By the way can you please approve how a company benefit from your optimization. I wonder ???
guest_APO
 

Postby Haribo56 » Tue Dec 23, 2003 3:33 am

guest_APO,

I don't understand your question (if there was one in your reply).

Have a good Christmas break.

Haribo
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Postby guest_APO » Tue Dec 23, 2003 3:46 am

Well the question is very clear

How do you make your customer believe in the benefits of your optimization of SNP DP or whatever?

How do you show your benefits, objective results?
guest_APO
 

Postby Haribo56 » Tue Dec 23, 2003 4:11 am

Optimization not really my area of APO sorry, but surey if you can improve customer service, get orders delivered On Time and InFull, Reduce Finished Goods Stocks, Reduce Material write-offs due to producing incorrect stocks, optimize labour (i.e. reduce costly overtime working) then you have gone a long way to doing an ROI of implementing APO, and proving to the customer the benefits of APO.

Get user ID 'Parksy' involved - he is pretty good at the sort of reply you are looking for.
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ROI and the value of APO/ optimization

Postby klausg » Tue Dec 23, 2003 5:55 am

Yep, you are rite when you say it is hard to calculate a definite ROI for APO. I tried, but I was not getting any hard figures. My next attempt was to have a look on logistics and production KPI, looking at the development of trends. And there was quite some development, even management could not deny that.

The optimization is not in DP - why should it be, it is forecasting! - but in SNP for the logistics and capacity planning part and in PPDS for production, sequencing and setup time redutcion. So, if you have a close watch on the bottlenecks, and you actually manage those with APO, then you will find some impressive improvements.

So, I'd say even if a board member or a controller might not like the results of an KPI analysis, you can still give them the hint that by using supply chain or logistics controlling they actually can improve their value and logistics chain, thus decreasing costs in these areas while increasing profitability, flexibility and and overall performance.

Early next year I'll publish a case study with SAP - basically dealing with exactly this kinda approach.
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Postby JamesCraig » Tue Dec 23, 2003 9:01 am

Just been on the new capacity planning course for R3 (I'm regressing down the SAP evolution chain for next year and going into PP). While it was a really badly structured course jumping between R3 and APO it made you appreciate the functionality in APO. There were a few planners on the course as well as IT bods and pretty much every answer to the questions they asked was "well no, in R3 you can't but this next excercise in APO will illustrate the solution..."

They also gave the first good explanation of how the optimisers work and you see why it is NSAT (Never the Same Answer Twice)! If anyone wants I'll post it as a new thread (its the chessboard problem if anyone hasn't seen it).

As to the general market a lot of people are upgrading (we will be next year) or trying to get to grips with their R3 and BW systems (best bloody product SAP do). Next year we're rolloing out R3 4.6 and BW to one division, upgrading the other from 4.0 to 4.7. I'll be working on the 4.6 rollout trying to sort out some difficult planning situations in the plants, hopefully this time next year we'll be planning APO rollin to sort the problems in the plants properly as I now know for sure that R3 won't do everything the planners want but APO probably will....

People still remember the bad days of APO a couple of years ago and are scared off by 4.0, until it's in in a few big sites and really shown to be working reliably will people start to take it seriously again. 2005 maybe?
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