For most people, fall brings back-to-school rituals, falling leaves, and carving pumpkins. Not for me. During this time, I spend my days on the IT speaking conference circuit. Fall is the busiest period of the year for an industry analyst. As others bob for apples and dress for Halloween, I travel from conference to conference until Thanksgiving. I left my house in August and I will return next week. (Imagine how strange I looked clutching a heavy black winter coat as I got on a plane in 90-degree weather.)
Tonight is a good time to reflect. A lot has changed. Four months is a short time. But in this time of economic change, it seems like a very LONG TIME. August was scary. In August, IT budgets were being slashed and inquiries were desperate cries of help to better manage inventory and benchmark headcount. Some clients were badly stung by the recession. Dupont closed factories for nine months. Logitech, faced with a sharp drop in demand coupled with high distributor inventories, posted a 70% reduction in earnings. Others saw an unprecedented shift in demand. Things could not have been better at Malt O'Meal (a maker of private label cereals) for the brand managers of Listerine at Johnson Johnson or for the factory workers making Lysol at Reckitt Benckiser. The first six months were a roller coaster ride for demand planners at most companies.
Now the dust has settled. Client inquiries have a more positive note. The top five inquiry topics are:
- Downstream data—The use of downstream data technologies has passed the tipping point. There are now three data czars, and inquiry on how to formulate a downstream data strategy has never been higher.
- Making money in the front office—All eyes are on the front office. With the dawn of the digital consumer and the shift to a more granular focus for retail trade spend, inquiries have increased to better understand trade promotion management, marketing analytics, and shopper insight technologies.
- E-commerce is new again—It is not just for retailers anymore. This week my colleague, Allen Johnson, posted an article on Alice.com, a new web offering for home shopping. More and more consumer products companies are investing in e-commerce strategies to reach their target markets, and the inquiries are rising on alternative channels (direct to home).
- Sales and operations planning—Companies cannot learn enough on Sales and Operations Planning (S&OP). This week, 105 supply chain professionals gathered in Boston for our supply chain peer forum. For the fourth forum in a row, S&OP topped the list for companies to focus on.
- Demand sensing is mainstream—We have come full circle. In 2005, we penned the Handbooks of Becoming Demand Driven and coined the terms demand sensing and demand shaping. These concepts are now driving investment.
With Thanksgiving around the corner, I give thanks that things are getting better for most of my clients. We have a new normal, and things are getting more upbeat.
Wish me safe travels getting home. With any luck, I will get snowed in there until New Year's.
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