Case studies

Business impact

Gained an estimated 30 percent improvement over the expected outcome of implementing new forecasting and planning systems by using IBM's resources to identify the optimal initiatives and timing.

Issue

The motorcycle manufacturer wanted to increase cost effectiveness, as well as improve market responsiveness and brand image. Its challenges were its slow speed to market, high inventory levels and high transportation costs.

Executive summary

IBM helped this manufacturer overcome many of its challenges by identifying the initiatives that would have the greatest impact on those issues. The client was able to increase the benefits of implementing those new initiatives by using IBM's Business Value Modeling Tool.

What IBM did

After examining the likely causes of the company's problems, a number of potential solutions were identified. IBM helped clarify which applications should be deployed and developed a high-level transformation plan for rolling out the initiatives to business units where they could have the most effective and immediate impact.

IBM researchers and consultants used the Business Value Modeling Tool, which considers operational improvements as well as financial metrics to produce a complete view of the supply chain for various solution scenarios. The result was an analysis that transcended traditional return on investment calculations by considering the broader impact on business performance.

With the analysis generated by the modeling tool, IBM was able to demonstrate that the greatest impact on the business would be achieved by implementing Demand Planning and Supply Network Planning in an initial rollout for two specific business units.

Capabilities applied

IBM Research's expertise in value analysis is based on years of theoretical development and has resulted in numerous issued patents. In the case of the Business Value Modeling Tool, IBM Research's expertise was combined with insight from IBM consultants to create a tool that considers operational improvements as well as financial metrics in its analysis.