Forecasting in a High Tech Firm located in the Silicon Valley

Forecasting product plans in a high tech corporation specializing in high performance servers and storage

Background

FirstQuarter worked with a high tech firm located in the Silicon Valley to implement a forecasting system using CPM technologies. The firm has sales & marketing offices throughout the world and a global manufacturing facility in the heart of the Midwest. The firm needed to transition from a legacy forecasting system to new CPM technology. The forecasting system was mission critical and drove forecasts in excess of $700 million dollars in demand.

FirstQuarter worked with the firm to design, develop, and deploy a new forecasting system using multi-dimensional OLAP technology in concert with Microsoft Excel. In addition to developing a custom user interface, FirstQuarter also developed an interface between the new forecasting system and the firm’s Oracle MRP system. This was a significant aspect of the project which greatly streamlined as-is vs. to-be processes.

Key Benefits

The final system design facilitated the following key benefits:
  • Brought greater discipline in the forecasting process
  • Provided transparency in calculations that allowed forecasters to have greater confidence in the transaction flows through the system.
  • Allowed for increased flexibility to handle changes to product codes
  • Enabled archival of official forecasts thereby allowing comparison of prior forecasts to actual results
  • Streamlined key processes related to the Oracle MRP interface

Project Approach

FirstQuarter worked colleagues in the forecasting and planning functions using the ThinkFirst approach. This disciplined approach to requirements gathering allowed FirstQuarter to quote the project at a fixed price with fixed deliverables. The project was carried out in two key phases – a high level design phase and a delivery/deployment phase. The project was completed on budget and was delayed for one month based on the client’s request to complete additional business process simulations related to the critical interface to the Oracle MRP system. Overall, a major success.

Key Outcomes

The new system is the primary means for collecting and analyzing forecasts before submitting final data to the Oracle MRP system. Overall the system has significantly lower cost of ownership than the legacy system. Additionally, because packaged software was used as part of the solution, the firm has the potential to leverage their investment into key informational reporting applications. Finally, the firm has engaged FirstQuarter to provide ongoing development and support of the application.