Analytics Initiatives and the Push-Pull Strategy

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1 Because every life has a purpose Analytics Initiatives and the Push-Pull Strategy Information Systems Management Council Meeting Fall 2016

2 Our Mission & Vision Mission to see to it that men and women may work in safety and that they, their families and their communities may live in health throughout the world. Vision to be the world s leading provider of safety solutions that protect workers when life is on the line. 2

3 Our Values have been at the core of every MSA success story since our founding in Values are important to an organization because they define and clarify what an organization expects of itself and its associates. We are, quite simply, an organization built on Integrity. 3 William M. Lambert President and CEO

4 Our History Established in 1914 U.S. Bureau of Mines Search & Rescue Team Leaders Two mining engineers saw the dangers First Major Product: Flameless Electric Cap Lamp developed with Thomas Edison John T. Ryan George H. Deike 4 MSA Cap Lamp

5 Who We Are Headquarters in Cranberry Township, Pennsylvania, USA Research & Development Centers on three continents 4,600+ associates worldwide Sales = USD 1.1 Billion MSA Corporate Center John T. Ryan Memorial Laboratory (R & D) N.A. Customer Service Department 5

6 Annual Sales By Region Growth Markets China Southeast Asia Eastern Europe Middle East South America Growth Strategy 1. Focus on Core Safety Products that are the Strength of MSA 2. Penetrate Emerging Markets where Demand is Growing 3. Achieve Operational Excellence to Enhance Performance, Productivity and Customer Satisfaction South America & Africa Emerging Europe Asia & Pacific Rim 13% 7% Western Europe 19% 11% North America 54% 6

7 Long Term Global Presence 7

8 Focus on Safety Solutions MSA Product Lines Respiratory Protection Head, Eye, Face Protection Fall Protection Portable Gas Detection Fixed Gas & Flame Detection Hearing & Communications Thermal Imaging 8 MSA products are built with "integrated system" capability

9 Markets Oil, Gas & Petrochemical General Industrial Applications Metal Works (Steel, Aluminum) Environmental & Hazmat Utilities & Nuclear Mining Fire Service Construction Military/Police Pulp & Paper Shipbuilding Retail 9

10 OGP MSA Upstream FlameGard 5 Flame Detector ULTIMA OPIR-5 Open Path Gas Detector Fire Helmet & Breathing Apparatus PremAire Escape Breathing Device 10 Head & Hearing Protection Latchways Sealed Self-Retracting Lanyard GASONIC OBSERVER-i Ultrasonic Gas Detector

11 OGP MSA Downstream ULTIMA XIR Gas Detector ALTAIR 2X Gas Detector Fall Protection & Head Protection 11 PremAire Combination Supplied-Air Respirator PrimaX P Gas Transmitter SUPREMATouch Controller

12 Construction MSA on the Jobsite V-Gard 500 Hard Hat Latchways Mini-PFL Head, Face & Hearing Protection Workman Fall Protection 12 Advantage 400 Respirator Fas-Trac III Suspension ALTAIR 4X Multigas Detector

13 First Responder MSA on the Streets Gallet F1XF Fire Helmet Cairns Fire Helmet MSA G1 Self-Contained Breathing Apparatus Self-Contained Breathing Apparatus EVOLUTION Thermal Imaging Camera 13

14 Because every life has a purpose

15 Push and Pull Strategy Strategy that originated in supply chain management Suppliers can push products to consumers before they are required E.g. Ford continually manufactures cars and pushes them to dealerships 15 Consumers can pull products from suppliers when they are required E.g. Tesla manufactures a car only after an order is received

16 Supply Chain Strategy for IT? IT can leverage push and pull strategy to drive innovation IT can push solutions to business problems before they are required E.g. IT proposes ways in which technology can solve business problems 16 Business can pull solutions to solve problems when they are required E.g. IT builds desire in the business to solve problems using technology

17 The Role of IT in Push IT primarily plays an educational role in push strategy Identify innovative solutions that might be useful and showcase them Aim to solve real business problems and not just adopt technology 17 Inform executives of what problems can be solved and how Share ideas to influence business strategy and investment decisions

18 The Role of IT in Pull IT primarily plays a supporting role in pull strategy Work closely with business to connect needs with solutions Use innovation to solve persistent problems or create new opportunities 18 Inspire the business to seek out innovative solutions to problems Identify and work with the right people to foster demand

19 Our Approach to IT Innovation Leverage push and pull together for maximum effect 1. PUSH - Start the innovation process with a small push Aim to solve a real business problem 2. PUSH/PULL - Deliver quickly with short-term, visible results Speed is essential; avoid the business losing interest 3. PUSH/PULL - Communicate early and often to get the word out Inform the business that IT has a new innovation that solves a problem PULL - Establish a business partnership Manage the shift in demand as success builds credibility

20 Pushing Analytics Scouted the business for opportunities where it could help Various systems generating data made global analysis challenging Difficult to consistently answer simple questions quickly Identified business units that might have the energy and appetite Component of business strategy focused on inventory optimization Supply Chain team struggling to get data to support decision making 20 Kicked off a pilot project with the Supply Chain team Build a data warehouse to integrate data from various systems Provide the information needed to help drive inventory reduction

21 Getting the Word Out Global Inventory Analytics launched after a few short weeks Solved a real business problem and produced highly visible results Communicated the value of analytics to raise awareness Promoted the business value delivered by the pilot Provided executives with a thorough understanding of analytics Used business language to link results to business objectives Leveraged Supply Chain team to build interest in other business units 21

22 Keeping the Momentum Planted seeds that would hopefully build an audience for analytics Still early and market for analytics still developing Found another opportunity and pushed another project Built an executive dashboard for incoming orders Self marketing solution provided information needed by executives 22 Highly successful second push increased traction and credibility Started to receive unprompted requests from the business

23 Establishing a Partnership Requests from the business began to outstrip IT capacity Required a clear and consistent approach to evaluate and prioritize Inaugurated the Analytics Steering Committee Cross-functional team of business representatives Aligns business unit needs with the overall business strategy Ensures that IT involved early in business efforts to pull analytics Allows the business to own initiatives (including financing) 23

24 Analytics Today Enabling evidence-based decision making across all business units Customer Service, Finance, Marketing, Operations and Sales Providing centralized and self-service analytics Empowering business users to explore data and build their own analytics Stimulating change actions that drive measurable business value E.g. data-driven pricing decisions leading to higher revenues and margins 24 Highly regarded by the BOD and Executive Leadership Team Incorporated into the business strategy

25 Lessons Learned Understand the business objectives Do not put technology before need Be opportunistic first and then strategic Solve a problem quickly to get attention Create, don t replicate Address unsolved business problems Communicate early and often Do not allow a return to business as usual 25 Reputation might be more important then ROI Important for people to believe

26 Because every life has a purpose Thank you! Any questions? 26

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