6 reitzenstein - bosch - unleash the power of next-generation
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Unleash <strong>the</strong> Power <strong>of</strong> Next-Generation<br />
Artificial Intelligence on NWC<br />
4. Working Capital Management Symposium - BvCM e.V. - Düsseldorf<br />
Björn Reitzenstein<br />
Corporate Finance Transformation Team, Robert Bosch GmbH<br />
C/FIT - Reitzenstein | 2019-06-13<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.
Bosch<br />
Market and figures for 2018 *<br />
Bosch Group<br />
78.5 billion euros<br />
in sales<br />
409,881<br />
associates<br />
268<br />
manufacturing sites<br />
Europe<br />
Asia Pacific 1<br />
Americas<br />
53%<br />
30%<br />
17%<br />
249,964<br />
114,825<br />
45,092<br />
150<br />
77<br />
41<br />
Share <strong>of</strong> sales<br />
Associates<br />
Manufacturing sites<br />
* As <strong>of</strong> 12.18<br />
1<br />
Including o<strong>the</strong>r countries<br />
* Figures adjusted for extraordinary effects resulting from changes in <strong>the</strong> consolidated group<br />
and methodological changes and depreciation and amortization resulting from purchase price allocation.<br />
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C/FIT - Reitzenstein | 2019-06-13<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.
Digital<br />
Finance and Controlling<br />
C/FIT - Reitzenstein | 2019-06-13<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.
Continuous data management,<br />
<strong>the</strong> linking <strong>of</strong> internal and external data sources<br />
as well as <strong>the</strong> use <strong>of</strong> artificial intelligence enable analysis…<br />
in real time – independent from month end closing<br />
with a standardized configuration – using dashboards<br />
for cross functional use<br />
over <strong>the</strong> complete live cycle<br />
including automated ideas for optimization based on artificial<br />
intelligence<br />
… and improving <strong>the</strong><br />
quality, transparency and speed from actions, reactions and implementation <strong>of</strong> measures<br />
5<br />
C/FIT - Reitzenstein | 2019-06-13<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.
Initiative not started<br />
Initiative started<br />
Examples<br />
Legend<br />
2018 - 2019<br />
2020 - 2021<br />
2022 - 2025<br />
6<br />
C/FIT - Reitzenstein | 2019-06-13<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.
NEW FUNCTIONALITY<br />
Automated data integration <strong>of</strong> raw data from all<br />
Bosch data sources<br />
"Single source <strong>of</strong> truth“<br />
Connecting data between different organizational<br />
areas<br />
VALUE<br />
Cleaned and integrated data to be ready for a wide<br />
variety <strong>of</strong> purposes<br />
Insights due to cross-functional network<br />
No discussion about data correctness through<br />
systematic, transparent (data) governance<br />
7<br />
C/FIT - Reitzenstein | 2019-06-13<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.
Advanced Analytics<br />
Classical<br />
BI<br />
Which data<br />
do we have?<br />
1.<br />
Descriptive<br />
What<br />
happened?<br />
Visualization <strong>of</strong><br />
basic features <strong>of</strong><br />
<strong>the</strong> data<br />
2.<br />
Diagnostic<br />
What has<br />
happened?<br />
Root cause<br />
analysis and<br />
identification <strong>of</strong><br />
patterns<br />
3.<br />
Predictive<br />
What will<br />
happen?<br />
Forecast <strong>of</strong> future<br />
values and<br />
simulation / whatif-analysis<br />
4.<br />
Prescriptive<br />
How to make<br />
it happen?<br />
Automatic<br />
suggestion <strong>of</strong><br />
actions<br />
Business Analytics<br />
8<br />
C/FIT - Reitzenstein | 2019-06-13<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.
NEW FUNCTIONALITY<br />
Automatic recognition <strong>of</strong> correlations and potential in net<br />
working capital<br />
Use <strong>of</strong> robust and flexible algorithms<br />
(more than 300 hypo<strong>the</strong>ses are automatically tested)<br />
KI with use <strong>of</strong> unsupervised learning<br />
VALUE<br />
Identify approaches to optimize <strong>the</strong> NWC - based on its<br />
impact on liquidity and pr<strong>of</strong>itability<br />
Automatic display <strong>of</strong> opportunities, probability <strong>of</strong><br />
occurrence and economic impact<br />
Identify and monitor process variants<br />
Quelle: Deloitte<br />
9<br />
C/FIT - Reitzenstein | 2019-06-13<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.
Focus:<br />
Prescriptive Analytics<br />
C/FIT - Reitzenstein | 2019-06-13<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.
Data based<br />
analysis<br />
Selection<br />
Source (DPO)<br />
Make (DIO)<br />
Deliver (DSO)<br />
Correlations<br />
Drivers<br />
Analysis<br />
Patterns<br />
Simulation<br />
Clusters<br />
Results<br />
Personal<br />
knowledge<br />
based analysis<br />
Known usecase<br />
(Problems/Potentials are familiar)<br />
Results<br />
11<br />
C/FIT1-Reitzenstein - | 2019-06-13<br />
05/07/2019<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.
Titel des Kapitels<br />
<br />
<br />
<br />
<br />
<br />
Runs on raw data extracted from ERP<br />
Big Data Tool with semantic setup, no data modeling<br />
Robust and flexible algorithms deal with all kinds <strong>of</strong> data<br />
and data in all states <strong>of</strong> quality<br />
Autonomous detection <strong>of</strong> correlations and potentials for<br />
improving NWC and pr<strong>of</strong>itability<br />
Automated analysis <strong>of</strong> complexity (process variants) and<br />
economic complexity reduction potential<br />
10 12<br />
C/FIT1-Reitzenstein - | 2019-06-13<br />
05/07/2019<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.<br />
<br />
<br />
Based on over 300 SAP ERP tables (mainly SD, FI, MM)<br />
3 TB <strong>of</strong> Data transferred to HANA native DB (5 ERPs)<br />
Line items: 21 199 288 838<br />
Information: 2 204 116 912 649<br />
Calculated opportunities: 411 704<br />
Significant opportunities: 14 630
COST PROGNOSIS PROJECT 2016<br />
<br />
<br />
<br />
13<br />
Analysis <strong>of</strong> cost resulting from purchase/ internal orders<br />
Database created on basis 2008 – 09.2016 (SGA)<br />
(cost volume: cash out <strong>of</strong> 30 mEUR p.a. covered)<br />
Investment: 180h Controlling + 60h PJ-DM<br />
TRUFA<br />
C/FIT - Reitzenstein | 2019-06-13<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.<br />
<br />
<br />
<br />
Analysis <strong>of</strong> cost resulting from purchase/ internal orders<br />
Database incl. Data from whole POE (Focus SGA)<br />
No additional investment<br />
Analyze time in tool: 5min + 10h Development
STARTING POINT<br />
<br />
<br />
<br />
Trufa proposal for NWC opportunity on inventory<br />
data based analysis.<br />
Curve shows statistical connection btw. KPI and<br />
driver.<br />
Patterns analysis identifies relevant filter criteria<br />
to focus fur<strong>the</strong>r activities.<br />
ANALYSIS RESULT<br />
<br />
Reduction <strong>of</strong> safety time might lead to significant<br />
decrease in inventory, focus actions on plant level.<br />
14<br />
C/FIT - Reitzenstein | 2019-06-13<br />
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STARTING POINT<br />
Sales controlling is very much aware <strong>of</strong> late<br />
paying customer due to monthly standard reports.<br />
….. Are <strong>the</strong>y?<br />
ANALYSIS RESULT<br />
<br />
<br />
Graph shows clearly that <strong>the</strong> customers tend to<br />
pay quicker when <strong>the</strong> end <strong>of</strong> <strong>the</strong> month is near.<br />
Adjusted <strong>of</strong> dunning cycles necessary.<br />
15<br />
C/FIT - Reitzenstein | 2019-06-13<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.
STARTING POINT<br />
<br />
ABC analysis <strong>of</strong> default payments with highest<br />
working capital.<br />
ANALYSIS RESULT<br />
<br />
<br />
Customer enterprise group engineered different<br />
payment terms for specific companies and<br />
used at time for <strong>the</strong>ir benefit.<br />
Accounts receivable realigns terms.<br />
16<br />
C/FIT - Reitzenstein | 2019-06-13<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.
Finance<br />
Payments,<br />
….<br />
Plant<br />
TRUFA<br />
„Center“<br />
Purchasing<br />
Inventories<br />
Discount<br />
losses<br />
IT<br />
Sales<br />
Logistic<br />
Business task<br />
17<br />
C/FIT - Reitzenstein | 2019-06-13<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.<br />
Value add for Bosch
Thank you for your attention!<br />
18<br />
C/FIT - Reitzenstein | 2019-06-13<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.
Bjoern Reitzenstein<br />
Senior Manager (C/FIT)<br />
bjoern.<strong>reitzenstein</strong>@de.<strong>bosch</strong>.com<br />
+49 174 3193295<br />
19<br />
C/FIT - Reitzenstein | 2019-06-13<br />
© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in <strong>the</strong> event <strong>of</strong> applications for industrial property rights.
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