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QlikTalk Industry Presentation Manufacturing Industries May, 2011.

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Presentation on theme: "QlikTalk Industry Presentation Manufacturing Industries May, 2011."— Presentation transcript:

1 QlikTalk Industry Presentation Manufacturing Industries May, 2011

2 Legal Disclaimer This Presentation contains forward-looking statements, including, but not limited to, statements regarding the value and effectiveness of QlikTech's products, the introduction of product enhancements or additional products and QlikTech's growth, expansion and market leadership, that involve risks, uncertainties, assumptions and other factors which, if they do not materialize or prove correct, could cause QlikTech's results to differ materially from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "predicts," "plan," "expects," "anticipates," "believes," "goal," “momentum,” "target," "estimate," "potential," "may", "will," "might," "could," and similar words. QlikTech intends all such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Exchange Act and the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in such statements due to various factors, including but not limited to: risks and uncertainties inherent in our business; our ability to attract new customers and retain existing customers; our ability to effectively sell, service and support our products; our ability to manage our international operations; our ability to compete effectively; our ability to develop and introduce new products and add-ons or enhancements to existing products; our ability to continue to promote and maintain our brand in a cost-effective manner; our ability to manage growth; our ability to attract and retain key personnel; the scope and validity of intellectual property rights applicable to our products; adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which we operate; and other risks more fully described in QlikTech's publicly available filings with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this presentation represent QlikTech's views as of the date of this presentation. QlikTech anticipates that subsequent events and developments will cause its views to change. QlikTech undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing QlikTech's views as of any date subsequent to the date of this presentation. This Presentation should be read in conjunction with QlikTech's periodic reports filed with the SEC (SEC Information), including the disclosures therein of certain factors which may affect QlikTech’s future performance. Individual statements appearing in this Presentation are intended to be read in conjunction with and in the context of the complete SEC Information documents in which they appear, rather than as stand-alone statements. © 2011 Qlik Technologies Inc. All rights reserved. QlikTech and QlikView are trademarks or registered trademarks of Qlik Technologies Inc. or its subsidiaries in the U.S. and other countries. Other company names, product names and company logos mentioned herein are the trademarks, or registered trademarks of their owners.

3 What are we hearing from the Analysts

4 Critical initiatives to achieve operational excellence over the next 2 years Source: IDC Manufacturing Insights 2010– N=720 LOW MEDIUM HIGH

5 Renewed emphasis on disciplined operations management The volatile world economy has put a renewed emphasis on disciplined operations management –The execution of manufacturing processes is where customer orders are fulfilled, is where customer satisfaction — or dissatisfaction — is originated –Manufacturers are returning back to basics, to their manufacturing roots, and to put a renewed premium on production knowledge and operational excellence Governments better understand that an economy based on service industries alone can’t survive in the longer run. –Every $1 spent for a finished manufactured good, generates $0.55 of GDP in the manufacturing sector and $0.45 in non-manufacturing (Source: US Bureau of Economic Analysis)

6 Today’s Manufacturing Industries Challenges & Solutions

7 Segment Composition – Manufacturing Industries AutomotiveHigh Tech Manufacturing Industries Industrial Machinery Machinery Sector Industry Sub-Industry Aerospace & Defence Oil, Gas & Chemicals Mill Products Natural Resources Components Wood, Pulp & Paper Building Materials Aerospace Defence Contractors Agriculture Mining OEM’s Parts – Tier 1 Suppliers Hardware Software Oil & Gas Chemicals Packaging & Containers Other Transportation Equipment Semiconductors Furniture Consumer Electronics Plastics Communications Equipment Metals.....Subject to review in 2011

8 Diverse Industry... Process Discrete IndustrialConsumer Mfg. IntensiveDistribution Intensive Transportation Equipt. Auto Mfg.. Semi conductors Consumer Electronics Consumer Durables Apparel Personal Care Printing/CDs CPG Chemical Specialty Chemicals Bulk Chemical Pulp & Paper Textiles Telecom Equipment Food Ingredients Consumer Non Durables Refinery Pharma Source: Automation Research Corp. Food & Beverage Note Consumer Good covered in CPDR

9 Leading Business Trends Differentiated product & services innovation Increased collaboration with strategic partners Product assemblers to full solution providers Mass customization with decreased manufacturing cycle times Managing increasing Regulation & consumer demand for sustainability Quality, cost, availability conundrum Seamless, consistent order fulfillment processes Lean initiatives to reduce cycle time and waste

10 Common Performance Issues Manufacturing Industries Developing Innovative Products & (Aftermarket) Services Manufacturers are under great pressure to innovate products and services to deliver value and growth. To succeed, organisations must develop processes, supported by appropriate insights and business information based on business intelligence encompassing internal information / data and detailed customer insight. There must be tight alignment across people, processes and products to ensure optimal return on innovation investment Traditional product features such as functions, quality, design, and cost are largely commoditized today, and manufacturers need to differentiate by providing valuable aftermarket services and managed product operations on top of their "physical" products. Companies must manage innovation and accelerate collaborative product development across global design teams to improve time to market and reduce costs which means building new alliances with joint performance goals to manage innovation across boundaries and accelerate time to market

11 Common Performance Issues Manufacturing Industries Collaboration to Deliver Supply Chain Efficiency A highly agile and responsive production line is critical, but it needs to be matched by an equally sophisticated approach to gaining the information and actionable insight needed to better understand, manage and forecast orders. That requires greater real-time visibility of the factors that will shape and determine demand. Much of that intelligence rests with the customer so a collaborative approach is needed. Key information may already exist within the manufacturing business itself, but isn’t connected or consolidated meaning that internal collaboration and visibility across sites (plants and warehouses) is essential. The supply chain has become a competitive differentiator. Manufacturers who fail to adapt to this new collaborative partnership model will see their market share eroded by more dynamic and collaborative competitors. Those who do build sustainable supply chain visibility and collaboration will be able to offer real-time innovation at a competitive price

12 Common Performance Issues Manufacturing Industries Mandatory Compliance to Green Business Compliance can be seen as a costly burden. There are however, opportunities to use compliance as a competitive differentiator – especially in the area of environmental responsibility/sustainability. Managing compliance is seen simply as part of the ‘cost of doing business’. Companies have sought to automate as many of the related processes involved as possible to streamline the administrative burden and enhance accuracy. Most partners in a supply chain typically pass upstream only the basic compliance data that is required of them to participate, in order to minimise their costs and retain tight control of IP. Manufacturers are sitting on an opportunity to become ‘more attractive’ to do business with if they could mobilise and share more of the rich compliance information they have. The greatest opportunity to drive competitive differentiation undoubtedly lies with those markets that can command premium prices for products based on their provenance.

13 Common Performance Issues Manufacturing Industries Operational Excellence Manufacturers face continued pressure on profitability from rising input costs and the need to compete with competitors operating in low cost regions of the world. They continually need to balance priorities and to deliver innovation, quality & sustainable products and services whilst reducing costs and improving operational efficiency. Companies have focused efforts on procurement strategies to gain sourcing efficiencies with consequent reductions in costs & have driven costs from the supply chain through enhanced collaboration and risk sharing. Manufacturers differentiate themselves from competitors by providing a unique customer experience & achieving customer-centricity is a way to retain customers which has a major impact on cost. Manufacturers have focused on Lean concepts which go beyond production planning and look to eliminate waste in both products and processes to drive the dual objectives of efficiency and enhanced quality. Many processes & activities have been outsourced with companies focusing on developing their core competencies.

14 Automotive Suppliers

15 Key Business Challenges – Automotive Real-time visibility Respond quickly to customer demand Continuous service improvement Capture new opportunities Collect cost data automatically as production progresses Reduce inventory and improve coordination within the supply chain Shorten the time required to introduce new products Meet compliance requirements for environmental protection, safety, and materials Track key metrics to avoid penalties for poor performance Manage rising material and transport costs Manage complex after-sales service opportunity Share risk and reward in development Focus on innovation, specifically the need to develop fuel-efficient vehicles Monitor Supplier performance Vehicle Manufacturers (VMs) dominate supply chains

16 Chemical Manufacturers

17 Need for continuous product & Service Innovation Need for continuous product development Increasing regulations and compliance Competition from emerging low cost regions Monitor and manage aging asset infrastructure Commodity pricing & rising energy and feedstock costs Improve customer responsiveness and service Shortage of skilled workers Optimize portfolio planning & management Complex & long supply chains Operational excellence – plant efficiency and utilization Innovation Integrate Demand & Supply Plan – Measure - Refine Collaborate – Joint Ventures Challenging Business Environment – Chemical Manufacturers

18 High Tech Manufacturers

19 Globalization and Outsourcing Value chain complexity and risk Commoditiza tion Design anywhere, build anywhere Internal and external collaboration Intense competition Product quality and innovation Shortening product life cycles Competition and shifting partnerships Retail Complexity Rising cost of development and testing Challenging Business Environment – High Tech Manufacturers Changing government regulations Cost and margin pressures Changing demographics

20 Key Business Challenges – High Tech Manufacturers Accelerate innovation for speciality markets Collaborate to reduce risk Spend more time with and respond more quickly to high value customers Centralize information and increase visibility across sales, marketing and engineering Implement best sustainability and lean practices Minimise costs of shorter life cycle complex products Complex Supply Channels Rapidly Introduce Products Prioritize Customers Sustainability Market responsive ness Efficient Innovation Develop “green tech” and “clean tech” products and services Increase responsiveness in the value chain Innovate and market sustainability as a competitive advantage Identify and retain profitable customers Establish value in new markets

21 Machinery Manufacturers

22 Industrial Machinery Manufacturers Provide specialized and standard products and services to a wide range of customers who value: Market Knowledge Technological Expertise High quality customer management Products that efficiently use energy & floor space Optionally configurable modules Integration into factory control systems Quality and Reliability Competitive Pricing Agility and Flexibility Support and Services

23 Solution & (After) market expansion Innovation – market demand for new products and service offerings Collaboration / joint ventures Highly configurable products with long sales cycles Complex sales & distribution channels Complexity – cost structures / supply chain Drive for cost control – Rising materials and transport costs Regulatory & environmental compliance After market services Increased focus on energy consumption and efficiency Globalization – emerging economies Challenging Business Environment – Machinery Manufacturers

24 Key Business Challenges – Machinery Manufacturers Match production and procurement to real demand Collect cost data automatically as production progresses Reduce inventory and improve coordination within the supply chain Ensure timely proposals that are based on accurate cost data Shorten the time required to introduce new products Identify opportunities for new service offerings Control Costs Improve Visibility Enable Growth Service Excellence Profitable Innovation Win New Business Centralised pricing, configuration and component information Insight into service costs and profitability over long product life cycles Service and maintenance efficiency Customer and partner satisfaction and loyalty Collaboration between sales, production and engineering

25 High cost & long timescales to introduce new products Government influence, involvement & participation Traceability & quality Maintenance, repair & overhaul Legislative & regulatory environment Highly complex products Fluctuating demand Highly developed supply chain Innovating value added products & services Product support required over very long life time High R&D costs Challenging Business Environment – Aerospace

26 Common challenges we hear from our Manufacturering customers Achieve revenue & profit goals Up-sell & cross-sell products & services Improve accuracy of sales planning, forecasting & budgeting Build profitable customer & partner relationships Build profitable sales channels & routes to market Sales & Customer Management Segment & identify profitable markets, products & services Improve effectiveness of campaigns & incentives Better manage the innovation process Use Portfolio Planning to manage product lifecycle Marketing & Product Management Maximize plant efficiency & improve manufacturing uptime performance Reduce waste & re-work in the factory Ensure that all asset are effectively maintained Support demand “Pull” methodologies to reduce waste, drive quality & reduce costs Enable Quality initiatives Plant Operations Manage Logistics Operations -Warehouse, Transportation, Vehicle & Load/Route planning Handle increasingly complex documentation for shipments Manage shorter shelf-life products, increased product variety & increased customer expectations Consistently achieve Customer Service Levels & SLR’s Logistics & Distribution

27 Common challenges we hear from our Manufacturering customers Supply Chain Management & Procurement Manage cash & working capital Streamline planning, budgeting & financial reporting Improve governance, operational risk management, sustainability & financial compliance Ensure plant meets regulations for workers, environment, health & safety & other industry regulations or requirements Improve insight into costs, assets & markets, for better investing and divesting decisions Finance, Governance & Executive Provide flexible analysis capabilities Improve usability & quality of data & analytics Optimize IT management & controls across the enterprise Implement & roll out new analysis capabilities Provide visibility & control over workforce remuneration, benefits, development, training & recruitment/retention IT & HR Manage After Market spare parts inventory Provide analysis of service costs & trends Monitor and reduce issue resolution & response times Measure and maximizes customer satisfaction Manage the Warranty process to measure & minimise costs & eliminate fraud Aftermarket Service & Support Manage inventory Improve forecasting & planning Optimize supply chain network design Manage supplier contracts/trading agreements Measure supplier performance

28 Typical types of QlikView applications for Manufacturers Operational BI Plant Efficiency & Optimization Analysis Quality Control Management & Six Sigma/Process Analysis Production Planning, Scheduling & Management Analysis Preventative Maintenance (MRO) Analysis Waste & Re-Work Analysis Plant Operations Inventory Analysis Order Management Analysis Order Fulfillment Analysis Transportation Analysis Product Launch Planning Segmentation Analysis Product Portfolio (Lifecycle) Analysis Campaign & Promotion Analysis Product Profitability / Price Waterfall Analysis Distributor Sales Performance Analysis Sales Planning & Performance Analysis Customer Profitability/Contribution Analysis Forecast Accuracy Analysis Logistics & Distribution Marketing & Product Management Sales & Customer Management Sales Channel Analysis

29 Typical types of QlikView applications for Manufacturers Operational BI Employee Training & Development Analysis Infrastructure Planning/Sizing Analysis Workforce & Benefits Analysis IT Service Level Reporting Analysis Software Asset Management (SAM) IT & HR Compliance – Regulatory, Environmental, EH&S Reporting & Analysis Financial Analysis for P&L Management Reporting Financial Consolidation Reporting & Analysis Executive Dashboards – Balanced Scorecard, Performance Analysis Field Service & Contact Centre Cycle Time Analysis Warranty/Entitlement Claims Analysis Spare Parts Inventory Analysis Product Defect Analysis Service Contract Management Analysis Demand & Supply Planning Analysis Collaborative Planning & Forecasting – S&OP/CPFR Analysis Sourcing & Procurement Optimization (Procurement & Spend) & Risk Analysis Strategic Supplier Sourcing/Performance Analysis Finance, Governance & Executive Aftermarket Service & Support Supply Chain Management & Procurement Supplier Network Optimization Analysis

30 Leading manufacturer of sheet fed offset printing machines for commercial and industrial customers. Challenges Couldn’t handle new reporting demands and ad hoc analysis Needed complementary analysis capabilities for SAP BW data Solution Deployed more than 200 QlikView applications, including: Sales analysis Financial analysis IT analysis Results Business users make better, more informed decisions through flexible, ad hoc analysis on SAP BW data Complete integration of SAP BW, Access, Excel, Navision, and Sage data

31 Consumer electronics and technology products giant. Challenges Existing BI tools required expert skills to use No visibility of each site's operating ratio, component losses, human resources structures, and cost/performance analysis Solution Deployed QlikView for: Integrating with strategic business process re-engineering Delivering real-time shop-floor data visualization to local and international offices User-level interaction allows rapid data drill-down on productivity metrics Results Zero-wait visibility of each site's operating ratio, component losses, human resources structures, and cost/performance analysis ZERO-WAIT SHOP FLOOR DATA VISUALISATION

32 Subsidiary of PepsiCo, Inc. and manufacturer of industry-leading sports drink Gatorade. Challenges Sought real-time sales data to proactively respond to market changes Wanted to improve reporting time Needed to handle tens of millions of data records Solution Deployed QlikView to analyze: Sales and profitability by account Sales expenses Billing Results Reduced reporting time from 1-4 hours to 3 minutes, saving $237 per employee, per report Gained real-time visibility of company-wide sales performance Realized full return on investment in four months

33 World leader in 3D design, engineering and entertainment software. Challenges Link departmentalized BI efforts under one corporate umbrella Grow a strong BI competency center Provide more intelligence, deliver more data and allow for velocity through the user base, without traditional BI’s years or months of waiting Solution Deployed QlikView as the company’s worldwide enterprise standard for: Functional dashboards across the enterprise Results 56 dashboards in less than one year for more than 800 business users Consolidated over 25 years of customer and product data from multiple sources, including SAP, into QlikView Increased visibility for more strategic sales, customer service and revenue opportunities 56 GLOBAL DASHBOARDS IMPLEMENTED WORLDWIDE

34 Thank you! David.Telford@Qlikview.com


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