Efficiency Improvement & Cost Reduction through Business Intelligence (BI) in Fertilizer Sector. - A presentation by Sanjay Mehta, CEO, MAIA Intelligence at The Fertilizer Association of India (FAI) WORKSHOP ON ICT FOR IMPROVING EFFICIENCY IN FERTILISER AND AGRICULTURE SECTORS held from March 16-19, 2009 at Manali.

1. Improve Efficiency &
MAIA Reduce Costs through ICT
in the Fertiliser Sector
Intelligence
Sanjay Mehta, CEO
Presented by
sanjaymehta@maia-intelligence.com

2. Company Profile
• 2006 – Business Intelligence Product Company established
• 2007 - Featured in NASSCOM 100 IT Innovators
• 2007 - MAIA in ATRE, a Global technology Summit hosted by Red Herring
• 2008 - 1KEY Agile BI Suite featured in Microsoft Solution Directory
• 2008 - 1KEY is the only Indian BI to be recognized by National Informatics Centre
Services Inc. (NICSI)
• 2008 - Gartner’s Hype Cycle for ICT in India, Report mentioned MAIA
• 2008 – Red Herring Asia Finalist 100
• 2008 – India’s Most Trusted IT Vendor by a CIO Survey by The CTO Forum
• 2009 – Named ‘Most Successful Startup’ to watch out for by the readers and
editorial board of I.T. Magz
• 2009 – NIC BIDW division recommends MAIA 1KEY for Technology Development
Board’s National Award
• 2009 – Featured in Gartner’s BI Market Trend Report
March 06, 2009

3. “Not everything that can be
counted counts, and not
everything that counts can be
counted.”
~Albert Einstein
January, 2009
March 06, 2009

4. Business Challenges
• On-Time Delivery
• On-Time availability of Financial Information
• Excess Inventory
• Disparate System Co-existing
• Tracking and timely Reporting
• Vendor Management
March 06, 2009

5. .. The Real Challenge
• Bitten more than what we could chew..!!
• Managing change
• Long Implementation cycle
• Process v/s department view of the organization
• Adaptability of the system to changing business
processes
• Integration with other software
• High post implementation costs
March 06, 2009

6. Two Distinct Worlds
Finance
Julia,
Systems
Operations
Arun,
Marketing
Kevin,
Account Mgr.
Sales & Marketing
Sara,
IT
CFO
Inga,
Purchasing
Business Personal
Process Productivity
Automation
March 06, 2009

7. Today’s Fertilizer Business Environment
Issue IT Impact
Limited access to data
Business systems are Poor interoperability
disconnected Complex support and manageability
Decision makers lack Reporting is time-consuming
and costly
real time business Must support multiple tools and
insights formats
Complex deployment and
customization
Difficulty managing the IT Escalating support costs
lifecycle Inflexible for future change
March 06, 2009

8. Analyzing Fertilizer Business
Issue Solution
People need access to accurate data Support decision making across entire
and analysis to make day-to-day enterprise at every level:
business decisions strategic, tactical, operational
Implement a real-time analytical engine
Business data is not easily accessible
and embed BI into critical business
and is often “lost” in line of business
processes
applications
Deliver one version of the
Always viewing business information in
truth with advanced analytics including
hindsight, with little ability to forecast
powerful data
future activity
mining tools
March 06, 2009

9. Enterprise Reporting for Fertilizer
Issue Solution
Implement reporting solution that
Reports are in-flexible, not available
delivers reports anytime, anywhere, in
when and where needed, and
the format you require
difficult to interpret
Reports take too long to get Get real-time, refreshable reports
and are often out-of- without having to rely on IT to run
date, limiting their usefulness them every time
Implement a single, integrated
Users require flexibility in report enterprise solution for the entire
format and layout
reporting cycle
March 06, 2009

10. Key questions to:
Improve Efficiency & Reduce Costs
Protect the existing Be Effective and Uncover Future Growth
business Efficient Opportunities
• Which lines of • What are we currently • Can we plan multiple
business are most spending and what growth scenarios for
profitable? can we safely cut ? next year?
• Who are my most • What is the impact of • Which product line
profitable customers? those cuts ? grew last year ?
• Where is my revenue • Will a saving in one • What trends are there
coming from? place have a knock on in buying patterns?
• How can we increase • effect in efficiency in • Which suppliers are
sales? another place? giving us the best
deal?
• What risk exposure do • How can we increase
we have? productivity?
March 06, 2009

11. Where BI Fits
OLTP
Intra/Extra/Internet
Competition
Business
Information Business
Resources Needs
Intelligence
Knowledge Management
Regulation
Project A Project B
Politics of Pain 5 3
Level of Pain 3 4
Sustainability of Pain 3 5
Time to market 2 5
Team experience 2 3
Resources required 4 5
# of users 1 3
# of user locations 4 3
# users in pain 2 4
Average 2.89 3.89
DW / DM
Median 2.94 3.94
March 06, 2009

12. Simplistic BI Data Flow - Fertilizer
Customer Data
HR
Data Mart
Production Data
DATA Performance
WAREHOUSE Data Mart
HR Data
Customer
External Data Data Mart
Warehouse Level Analytical End User
Operational Data Level
Level
Analysts
Collect, cleanse, organize and
OLTP, ERP, external data query, reportin Managers
distribute
legacy applications g
Inventory Detail Records & analysis
HR Records
March 06, 2009

13. The End Result
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14. Key Performance Indicators
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15. KPI for Fertilizer
Increase productivity and value Farming Systems Compliance with Quality
added services Standards
• Dryers
• Permits / licenses • Particulates
• Nurseries for seedling
• Increase in production
production • Prescribed burning
• Number of demonstration plots
• Drains de-silted • Air emissions
• Total quantity of
• Drains constructed • Air quality
fertilizers, chemicals and other
agro-inputs • Drainage works completed • Wastewater discharge
• Crop development programme • Farm roads upgraded • Waste discharge
• Hybrid varieties planted • Lots bund leveling
• Crop extension projects completed
completed satisfactory
• Farm roads graveled
• Total land irrigated
• Access and availability of
• Total area of land cultivated
land
• Estimated production potential
• Milling efficiency
• Social Impact
• Culverts installed
March 06, 2009

16. KPI for Fertilizer
• Environmentally favorable extensification of farming
• Low-intensity pasture systems
Technical Services • Landscape preservation
• High-value habitats conserved
• Estimated soil moisture
• Irrigation return interval
Irrigation • Irrigation scheduling coefficient
• Rate of applied volume of water
• Efficient use of water use
Manage • Land and water utilization rate
Administrative • Transportation system and logistics
• Availability of resources
Services
March 06, 2009

17. KPI for Fertilizer
• Return to shareholders
• Profitability
Finance • Cash flow
Management • Investments evaluation
• Quality and timely policy advice
• Management structures and
Personnel systems
• Attention to customer
Management • Training programs
March 06, 2009

18. Trade Spend Analytics
Roles
• Trade Spend V
Budget
• Trade Spend
Efficiency &
Effectiveness
• Trade Send Uplift
– Sales & margin
• Spend by
Marketing
Metrics & Dimensions
Merchandize
Manager;
Method
Customer Account
• Promotion ROI
Managers; Sales
• Promotion Execs; Finance;
OverUnder- Promotional
spend Volume; Revenue (& growth); Total Promotion Profit; Targets; Market
Analyst; Business
(volume $s); Market Share; Price; Margin %; Trade Spend; Promotion
• Promotion Impact Unit Heads;
ROI; Promotional Uplift; Order Fulfillment %; Consumer pass
– Cannibalization Category
through%; Stock Cover Customers; Events; Sales Channels; Products;
& Halo effect Manager; Brand
Brands Categories; Promotion; Media types; Time; Locations
Managers
March 06, 2009

19. Manufacturing Management
Analytics
New
Production Inventory
Product
Goals Management
Life Cycle
Product Product
Inventory Inventory
Development Milestone
Capacity QC Reject Inventory
Ageing Days ABC Analysis
Back Log %
Lead Time Plan V/s
Utilization % Rate % Turns Ratio %
% Value
Days Variances
March 06, 2009

20. Customer Profitability Analytics
Incorrect information about
customers The real value is not in the
money saved, but how you
profitability, efforts to grow
Find which customers are
use information to adapt in
sales directed toward
destroying profits, eating
customers that are challenging environments
away your earnings.
such as today’s economic
unprofitable. In
situation
reality, earnings will be low
even with growth
Customer = King or Customer = Liability
March 06, 2009

21. Financial Management Analytics
Asset Efficiency
Balance Cash Flow Treasury
Sheet Goals Goals Goals
Capital Debt to Net Cash Working Net
Borrowing Investment
Employed Equity Flow Value Capital Liquidity
ROCE % AR in Days
Cost % Yield %
Value Ratio % % Ration % Value
March 06, 2009

22. Expense Management Analytics
Supply Chain Operations Cost Overhead
Cost Index Index Cost Index
On Time Delivery IT Vendor Benefit Cost
Goals Management Goals Goals
Average IT Project SLA
Order Fill On Time IT Lead time Benefit Cost Benefit
Lead Time in Completion Performance
Rate % Unit Delivery in days Increase % Payroll %
days % %
March 06, 2009

23. Financial Analytics
Brokerage
Revenue Goals Costing Goals
Goals
Revenue Brokerage SQ Off V/s
Cost per Exchange
V/s Cost V/s Delivery
Top Top Top Top
customer wise
per Funding Brokerage
Customers Branches Channel Product
acquisition Brokerage
Employee Cost pattern
March 06, 2009

24. Reduce Costs & Improve Efficiency with integrated BI
Operations
Sales and
Marketing
Finance
Single View reporting of Enterprise-wide Data
March 06, 2009

25. The Need for Better Insight and Visibility
Exists Throughout the Organization
Chief executive officer (CEO)
“I need to know that the people in my
organization have the right goals in place to
understand and execute on the strategic
initiatives of the company.”
VP, operations VP, sales and marketing
“I need better visibility into my “I need better visibility into our
cost of operations so I can pipeline performance so I can
target specific cost reduction focus on deals that help me grow
opportunities that won’t have business with my most profitable
a negative impact.” customers.”
Chief financial officer (CFO)
“I need to improve our analytics capabilities so we can
understand our current business performance and do a
better job of planning for the future.”
Sales rep
Customer support rep
“I need to have the right demographic
“I need better access to information to
information so I can better target my
opportunity prospecting.” make better decisions on cross-sell and
up-sell opportunities.”
March 06, 2009

26. BI Vision and Strategy
Complete and integrated end-to-end BI Suite
offering
Widespread delivery of solutions through
expert channel partners
Enterprise grade and affordable
March 06, 2009

27. Enable Confident Decision Making & Improve
Efficiency
Right Information, Right Time, Right Format
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28. March 06, 2009

29. March 06, 2009

30. 30
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31. March 06, 2009

32. Analytical Reports = Business Intelligence
Asset / Inventory and
Bills
Weekly &
Monthly
Budget &
Production Records Planning
Executive Dashboard
Historical Sales Trend Analysis
Trends
March 06, 2009

33. The product
•Accommodate thousands of users with ease of affordability
without prohibitive software license costs.
•Provide highly interactive interface, flexibility, most intuitive
reporting that improves decision making.
•Access any or multiple enterprise data source.
March 06, 2009

34. Our Customers
March 06, 2009

35. MAIA Intelligence
2/319, Millennium Business
Park, Sector 1, Mahape, Navi-
Bombay Maharashtra 400 701 |
INDIA
Tel: +91 22 66 888 999
Fax: +91 22 66 889 000
sales@maia-intelligence.com
March 06, 2009

36. MAIA Thank you
Intelligence
sanjaymehta@maia-intelligence.com
Corporate Office:
2/319, Millennium Business Park, Sector 1, Mahape, New Mumbai, India – 400 701
Tel: 91-22-66888999 | Fax:91-22-66889000