2016-07-25_Global Operations Consulting_Building Advantaged Operations_Detail_PwC Branded

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Published on November 19, 2016

Author: GabrieleCaragnano

Source: slideshare.net

1. www.pwc.com/operations Global Operations Consulting Building Advantaged Operations July 2016

2. PwC Building Advantaged Operations 2 April 2016Global Operations Consulting

3. PwC Operating models are the enabler of competitive advantage An increasingly dynamic business environment… …is driving companies’ operating models to a tipping point. Leaders must develop future operating models that go beyond cost cutting and implement changes that capitalize on these transformative global trends. Source: PwC, 2014 US CEO Survey, January 2014 Complexity hinders ability to adapt to business and market changes Operating footprint and supply chain not appropriately aligned to future business Increasing in scale creates duplication of functions and lack of agility Business Strategy Where and why we’ll win Operational Strategy How we’ll win Operations Executing to win 3 April 2016Global Operations Consulting

4. PwC Strategically-aligned operating models have a capability system that feature differentiated capabilities Right to Win What do we need to do well to deliver that value proposition? What are we going to sell in this market and to whom? How are we going to create value for our customers in this market? Capabilities-Driven Strategy Capabilities-Driven Strategy delivers a coherent company which strikes a balance where the right product and service portfolio naturally thrives within a capabilities system consciously chosen and implemented to support a deliberate ‘way to play’ within a defined market 4 April 2016Global Operations Consulting

5. PwC Mar 2012 Strategy, Customer, Digital Analytics Sep 2013 Digital Strategy, Analytics, Creative and Technology We have built the premier Operations consultancy providing a powerful mix of strategy, solutions, analytics, and sector depth Aug 2011 Operational Strategy, Product & Service Innovation, Supply Chain Innovation, Customer Experience Mar 2014 Strategy, Operations, Supply Chain, Jun 2009 Technology Consulting Dec 2009 Supply Chain ,Strategic Sourcing, Sustainable Cost Reduction Dec 2010 Capital Projects & Infrastructure Aug 2011 Supply Chain Strategy, Performance Analytics Dec 2011 Supply Chain Management, Multi-Technology Solution Sep 2012 Social Media, Digital Marketing Nov 2010 Strategy, Operations, Customer , Analytics, Technology Consulting Aug 2011 Supply Chain, Finance, Human Capital, Technology Consulting 5 April 2016Global Operations Consulting

6. PwC The Strategy& capstone creates a ‘Category of One’ Business Strategy • Pre-eminent strategic management consulting firm • Explicit focus on pragmatic capability driven transformation and growth • Broad operational design capabilities Operational Excellence • Leading operations strategy consulting firm • Deep expertise in supply chain design and product innovation • Planning, sourcing, and logistics operational expertise Technology Strategy and Implementation • Leading technology strategy and eBusiness design firm • Explicit focus on strategic use of technology (architecture, capabilities) Digital/Omnichannel Leadership • Thought-leading boutiques in social media and digital • Extensive experience in consumer marketing and engagement design Strategy through Execution • Integrated, best-of-breed capabilities and thought leadership • Unique combination of strategy, operations, technology, and marketing capabilities to support future consumer businesses “Category of One” 6 April 2016Global Operations Consulting

7. PwC PwC helps clients transform operations to create competitive advantage and grow profitably We start with the premise that operations should be a strategic capability, not just a cost-effective utility We bring the industry, functional, and technology depth required to close the gap between ideas and results We deliver complete solutions and address C- suite financial objectives all the way to true bottom-line performance We collaborate with our clients and help them build enduring capabilities We architect transformational programs that are sustained and self-funding Our compass and what is unique Our services Technology-Enabled  Tax-Optimized  Risk-Mitigated  Globally Delivered  Genuinely Transformed Advantaged Operations Competitive Manufacturing Strategic Supply Management Differentiated Supply Chains Physical Asset Lifecycle Management Progressive Service Operations Enterprise- Wide Operations Excellence Innovation & Development Excellence 7 April 2016Global Operations Consulting

8. PwC We help clients build advantaged operations We help companies build operational capabilities that create competitive advantage, drive profitable growth, and respond effectively to risks. We start with the premise that operations can and should be a strategic capability, and we bring the industry, functional and technology depth required to close the gap between ideas and results. Whether it’s creating innovative products, strategically reducing costs, optimizing footprint, becoming more flexible, managing operational risk, improving capital efficiency, or realizing deal value, we are the partner of choice. We deliver complete solutions and address C-suite financial objectives all the way to true bottom-line performance. Common Client Issues • Eroding competitive advantage; gaps in overall cost/value position • Operating model misaligned with market needs; cost structure not competitive • Stalled organic growth and ineffective development capabilities • Overly complex product portfolio • Supply chain slow to respond to customer needs and external events • Outdated manufacturing strategy • Unrealized sourcing opportunity • Poor asset leverage and inefficient deployment • Customer value proposition hurt by poor service • M&A trail resulting in disparate businesses and unrealized value • Under-performing technology investments with unresolved business issues • Data and technology inadequate for managing across the extended value chain • Reactive response to risks and regulations Key Service Offerings Contacts Region Strategy& PwC Americas Eduardo Alvarez Mark Strom Europe Bernd Jung Joe Ippolito Asia Ben Gilbertson Mahesh Singh Innovation & Development Excellence • Innovation Strategy • Product Strategy • Innovation Operating Model & Network • Product Development & Commercialization • Portfolio & Complexity Management • End-to-End Product Management • Design-to-Cost/Value Competitive Manufacturing • Make vs. Buy • Manufacturing Strategy • Manufacturing Operating System • Manufacturing Implementation Physical Asset Lifecycle Management • Asset Strategy & Portfolio Management • Consortium & Strategic Relationship Development • Capital Project & Infrastructure Deployment • Capital Project Delivery Capabilities • Maintenance Operations & Uptime Management Strategic Supply Management • Procurement Operating Model • Sourcing Transformation • Complex Procurement • Category Strategy & Strategic Sourcing • Contract Management & Value Realization • Procurement Excellence Differentiated Supply Chains • Supply Chain Strategy & Complexity Management • Tailored Supply Chains & Segmented Assets • Integrated Business Planning/S&OP • Supply Chain Footprint & Logistics Optimization • Inventory & Working Capital Optimization • Post-Sales Operations Improvement • Supply Chain Risk Management Progressive Service Operations • Customer Experience & Service Strategy • Service Delivery Effectiveness & Efficiency • Middle & Back Office Operations Advantaged Operations • Value Chain Competitive Cost Assessment • Global Operating Model Design • Operating Model Resiliency & Sustainability • Information Technology & Data Strategy • Managing for Value Potential Capture Enterprise-Wide Operations Excellence • Operations Performance Improvement Strategy • Quality & Reliability • Business Process Excellence • Productivity Improvement • Talent Management & Motivator Alignment 8 April 2016Global Operations Consulting

9. PwC Wherever you operate, we have the reach and scale to assist North America 2,500 Operations professionals 3 Countries EMEA 1,900 Operations professionals 50 Countries Latin America 400 Operations professionals 9 Countries 800 Operations professionals 9 Countries AsiaPac Source: PwC internal analysis Headcount estimates as of Dec 31, 2015 9 April 2016Global Operations Consulting

10. PwC We are a recognized, global leader in operations consulting 10 April 2016Global Operations Consulting Commercial Execution: Channel, Category & Sales Management Consulting An ALM Intelligence Leader [10] Global Risk Management Consulting Services A Gartner Magic Quadrant Leader[12] SAP Applications Implementation Services, Worldwide A Gartner Magic Quadrant Leader[1] Competitive Landscape: Change Management Consulting An ALM Vanguard Leader[15] Strategy Consulting Services, Worldwide An IDC MarketScape Leader [8] Business Analytics Consulting & Systems Integration Services, Worldwide An IDC MarketScape Leader [9] Asset-Intensive Operational Excellence Consulting An ALM Intelligence Leader[11] Manufacturing & Production Strategy Consulting An ALM Intelligence Leader[3] Supply Chain Management Consulting Services An IDC MarketScape Leader [4] Business-Facing & Customer-Facing Service Operations Consulting An ALM Intelligence Leader[2] Supply Chain Risk Management Consulting An ALM Intelligence Leader[5] Business Operations Consulting Services, Worldwide A Gartner Magic Quadrant Leader [6] Operations Digital Strategy Consulting Services, Worldwide An IDC MarketScape Leader [7] Supply Chain Management Consulting in Europe An ALM Intelligence Leader[14] [1] Gartner Magic Quadrant for SAP Applications Implementation Services, Worldwide, Susan Tan, July 23, 2015 [2] ALM Intelligence Research,“Business-Facing & Customer-Facing Service Operations Consulting” © 2016 ALM Intelligence Consulting Research & Advisory, ALM Media, LLC. Reproduced under license.[3] ALM Intelligence Research, “Manufacturing & Production Strategy Consulting,” © 2013 ALM Intelligence Consulting Research & Advisory, ALM Media, LLC. Reproduced under license.[4] IDC, IDC MarketScape: Worldwide Supply Chain Management Business Consulting Services 2014 Vendor Assessment, September 2014, (IDC# 250614), [5] ALM IntelligenceResearch, "Supply Chain Risk Management Consulting June 2016," © ALM Media, LLC. Reproduced under license, Reproduced under license., [6] Gartner Research, “Magic Quadrant for Business Operations Consulting Services, Worldwide”, Michael Dominy, Dana Stiffler, December 03, 2014*, [7] IDC, IDC MarketScape: Worldwide Digital Strategy Consulting Services for Digital Operations Vendor Assessment, September 2015 (IDC #258553), [8] IDC MarketScape, Worldwide Strategy Consulting Services 2014 Vendor Assessment, July 2014, IDC #249462e, [9] IDC, IDC MarketScape: Worldwide Business Analytics Consulting and Systems Integration Services 2014 Vendor Assessment (IDC# 248172), May 2014, [10] ALM Intelligence Research, "Commercial Execution: Channel, Category & Sales Management Consulting" © 2015 ALM Intelligence Consulting Research & Advisory, ALM Media, LLC. Reproduced under license.[11] ALM Intelligence Research, "Asset-Intensive Operational Excellence Consulting” © 2015 ALM IntelligenceConsulting Research& Advisory, ALM Media, LLC. Reproduced under license. [12] Gartner Research, “Magic Quadrant for Global Risk Management Consulting Services 2014”, October 7, 2014*. [13] ALM IntelligenceResearch, "Supply Chain Strategy & Planning Consulting" © 2014 ALM IntelligenceConsulting Research & Advisory, ALM Media, LLC. Reproduced under license. [14] ALM Intelligence Research, "Supply Chain Management Consulting in Europe; ALM Intelligence Consulting Research & Advisory" © 2015 ALM Intelligence Consulting Research & Advisory, ALM Media, LLC. Reproduced under license. [15] ALM IntelligenceResearch, “Competitive Landscape: Change Management Consulting © 2016 ALM IntelligenceConsulting Research & Advisory, ALM Media, LLC. Reproduced under license. [16] ALM Intelligence Research, "Sourcing & Procurement Consulting: Procurement Operations and Next-Generation Sourcing Strategy” © 2015 ALM IntelligenceConsulting Research& Advisory, ALM Media, LLC. Reproduced under license. A recognized, global leader in consulting services that address the full breadth of clients’ operational needs. Supply Chain Strategy & Planning Consulting An ALM Intelligence Leader[13] Sourcing & Procurement Consulting: Procurement Operations & Next- Generation Sourcing Strategy An ALM Intelligence Leader[16]

11. PwC Building Advantaged Operations Operations Service Area Drilldown 11 April 2016Global Operations Consulting

12. PwC Advantaged Operations We help clients: • Assess operations capabilities • Design their operating model to deliver their business strategy and then make that operating model a reality • Leverage leading technologies and digital business models • Obtain competitive advantage and drive both business growth and profitability • Develop and implement self-funding, sustained programs Common Client Issues • Eroding competitive advantage; gaps in overall cost/value position • Stalled organic growth • M&A trail resulting in disparate businesses and unrealized value • Operating model misaligned with market needs • Uncompetitive cost structure • Optimized silos, sub-optimal whole • Declining operating performance, but no clear view of underlying issues • Stuck in outdated technology paradigms • Always playing catch-up vis-à-vis the competition What We Do • Value Chain Competitive Cost Assessment • Global Operating Model Design • Operating Model Resiliency & Sustainability • Information Technology & Data Strategy • Managing for Value Potential Capture What Is Different • A strong point of view around “ways to play” and core capabilities • Commitment to building capabilities in self-funded, sustained ways • Consideration of all the relevant dimensions in designing the future- state, including often overlooked areas like tax and risk Client Benefits • Clear view of operations competitive advantage and existing gaps • Customized business operating model accounting for economics and value drivers of the target segment • Increased growth through a coherent operations capability set that supports the strategic agenda • Choices that drive reduced costs and increased flexibility at the right geographic and structural level to manage the business effectively • Improved ability to manage shocks and deliver consistent performance • Organizational alignment linking technology strategy to strategic goals • Improved performance through clear objectives and measures 12 April 2016Global Operations Consulting

13. PwC Innovation and Development Excellence We help clients: • Improve innovation and product development outcomes • Build out specific capabilities to enable improved performance • Optimize business models and innovation strategy • Improve product development speed and quality as well as cost and/or quality performance • Enhance innovation capabilities Common Client Issues • Lack of clarity between business strategy and innovation strategy • Inability to efficiently convert ideas to winning products • R&D portfolio complexity with sub- optimal investment mix • Inefficient R&D and engineering networks • Inefficient global resource management • Complex product offerings and failure to intelligently customize via product platform strategies • Lack of competitive products for emerging markets • Non-competitive product cost due to incremental cost growth • Overruns of schedule and resources in new product development What We Do • Innovation Strategy • Product Strategy • Innovation Operating Model & Network • Product Development & Commercialization • Portfolio & Complexity Management • End-to-End Product Management • Design-to-Cost/Value What Is Different • Unparalleled depth of experience— access to practitioners who have defined industry-leading practices • Commitment to drive both top-line growth and profitability • Follow through from innovation strategy through execution Client Benefits • Increased value and ROI through coherent strategies and differentiated capabilities • Healthier innovation and product development portfolios • Significant R&D/engineering cost savings • Improved profitability with stronger product lifecycle management • Market share and margin gains by embedding design-to-value in product development • Agile/lean product development systems driving dramatic speed-to- market and quality-at-launch improvements 13 April 2016Global Operations Consulting

14. PwC Strategic Supply Management We help clients: • Develop strategies to design and implement a differentiated supply base with an attractive cost and service profile • Transform procurement into a strategic, commercially focused capability • Bring category experience to rapidly realize cost savings while improving supply base operational capabilities • Guide clients through decision and implementation of mission-critical outsourced services and capital programs Common Client Issues • Depressed margins • Disconnects between procurement and the business, even as purchased materials are a large share of operations • Over-the-wall interactions with R&D/engineering • Inadequate IT and data • “Old-school” procurement with limited focus on strategic relationships What We Do Differently • Focus on building sustainable Strategic Operating Models • Employ a knowledge-based sourcing approach with category depth and breadth • Enable an effective design- sourcing interface • Bring deep supplier risk tools and mitigation skills • Drive cross-functional integration Client Benefits • Transformed, best-in-class procurement capabilities • Integrated partnerships across the business • Unlocked value and sourcing savings (incl. tax and regulatory) • Sustainable, strategic, and competitive relationships with healthy suppliers • Successful execution and management of critical contracts 14 April 2016Global Operations Consulting

15. PwC Competitive Manufacturing We help clients: • Drive competitive advantage by developing global manufacturing strategy that supports and influences the business strategy • Take a market-back view of what manufacturing needs to do well • Make the right choices about make/buy, manufacturing technology, plant footprint (scale, scope, number of plants, locations) • Break down silos to truly optimize the end-to-end global value chain, not just the manufacturing footprint • Define the right operating system that is required to run, manage, and change manufacturing Common Client Issues • Lack of clarity on how manufacturing can be used as a competitive weapon • Outdated manufacturing footprint that is out of synch with business and market changes • Intense pricing pressure from competitors • Fragmented manufacturing network with low utilization • Uncompetitive service levels • Prevalence of numerous tools and CI methodologies with no consistent method of operating the facilities and managing the network • Poor implementation due to lack of experience and sub-par program management What We Do • Make vs. Buy • Manufacturing Strategy • Manufacturing Operating System • Manufacturing Implementation What Is Different • Strong linkage between capability- driven business strategy and manufacturing • Deep understanding of manufacturing ecosystem economics • Unique approach and unparalleled experience driving global manufacturing and supply chain programs • Unparalleled ability to drive decision making to a net profit level, including tax implications Client Benefits • Manufacturing strategy that bolsters business strategy and growth • Improved profitability • Competitively-advantaged capability with superior flexibility and service levels • Fact-based understanding of fundamental economics and trade- offs to guide decisions • Advantaged footprint that meets current needs and is robust enough to meet future undefined needs • Focus on manufacturing technology strategy and competency development • Customized manufacturing operating system to run, manage, and change manufacturing to meet business goals 15 April 2016Global Operations Consulting

16. PwC Differentiated Supply Chains We help clients: • Develop supply chains that deliver superior performance and competitive advantage • Define the supply chain strategy market-back to ensure that assets are aligned to market needs and demand characteristics • Identify and embed the key capabilities and information technology necessary for successful and consistent execution • Establish ongoing monitoring, performance management, and planning to manage risks and drive continuous improvement • Achieve growth, cost, asset efficiency, and sustainability goals while also delivering superior customer service Common Client Issues • Supply chain not viewed as a strategic asset • Operating costs not improving with volume (potentially increasing) • Assets demonstrate declining efficiencies • High inventories with stagnant or falling service levels • Demand consistently met with supply chain “heroics” • Painful new product ramp up and missed new product revenue/margin goals • No clear understanding of supply chain risks—vulnerability to severe disruptions What We Do • Supply Chain Strategy & Complexity Management • Tailored Supply Chains & Segmented Assets • Integrated Business Planning/S&OP • Supply Chain Footprint & Logistics Optimization • Inventory & Working Capital Optimization • Post-Sales Operations Improvement • Supply Chain Risk Management What Is Different • Dynamic view of supply chain changes • Deep, industry-specific experience • Support of supply chain capabilities with rich tools and industry-leading technology Client Benefits • Alignment between supply chain and business strategy • Increased revenue through new product and channel opportunities • Ability to quickly scale up for growth • Reduction in lost sales and damage • Improved operating cost and asset productivity • Reduction in inventory and stock- outs • Industry-leading on-time delivery • Improved service levels and customer satisfaction • Achievement of sustainability objectives • Improved resiliency with faster recovery from supply chain disruptions 16 April 2016Global Operations Consulting

17. PwC Physical Asset Lifecycle Management We help clients: • Improve installed asset base and capital expenditures through capital portfolio management, effective project selection, and robust asset management strategies • Execute major projects and programs, starting with consortium formation and strategic relationship development • Address the entire cycle of complex greenfield or brownfield projects—from planning through decommissioning • Improve capabilities for upkeep of vital assets by applying leading practices and technology for asset management and reliability analytics Common Client Issues • Poor return on capital assets • Idiosyncratic capital investment decisions; inadequate portfolio management • Missed deadlines, excessive change orders, cost overruns on major projects • Strained /adversarial contractor relationships • Unknown and/or unmitigated risks on mission-critical projects • Ineffective internal capability to manage large programs • Asset reliability/availability below target • “Seat of pants” management of asset risk • Excess maintenance costs with unplanned spikes • Weak enterprise asset management and project management technology infrastructure • Sub-optimal , non-integrated business processes resulting in inefficient operations What We Do • Design and Implement Asset Strategy & Portfolio Management • Advise Consortium & Strategic Relationship Development • Control Capital Project & Infrastructure Deployment • Improve Capital Project Delivery Capabilities • Implement Integrated Asset and Work Management and Analytics Capabilities • Deliver Maintenance Operations & Availability/Reliability Improvements What Is Different • Unparalleled asset lifecycle experience in private and public sectors • Strategy-to-execution capabilities for mega projects, including leading risk management practices and tools • Ability to deploy leading asset and project management technologies Client Benefits • Increased capital asset productivity • Robust asset strategy and capital portfolio management • Strategy, infrastructure, and hands- on management to deliver mega projects on time and on budget • Increase capital efficiency through enhanced project delivery • Visibility and proactive management of critical risks • Rapid recovery of troubled projects • Development of internal capabilities, tools and repeatable processes for successful mega project execution • Management of asset risk (safety, environment, production) • Improved asset uptime and utilization • Asset-related opex and capex optimized over asset life-cyle • Risk-informed allocation of asset capex 17 April 2016Global Operations Consulting

18. PwC Progressive Service Operations We help clients: • Deliver the desired customer experience efficiently and effectively • Harmonize customer interface, customer engagement, service delivery, and back office operations to fulfill the service mission, drive customer loyalty, and meet regulatory requirements in a cost-efficient and effective manner • Achieve excellent service through our combined industry depth and understanding of leading practices across healthcare, financial services and government, as well as the service function of product companies Common Client Issues • Low growth and increasing margin pressure from intensified competition and regulatory mandates • Disjointed and fragmented service operations due to rapid growth and/or acquisitions • Rapidly evolving industry dynamics that raise service model questions • Inconsistent customer experience and service levels • Unsuccessful cost reduction efforts • Poor workforce productivity • Lack of leadership and system-thinking to drive improvement • Technology not aligned to business needs or improving customer experience What We Do • Customer Experience & Service Strategy • Service Delivery Effectiveness & Efficiency • Middle & Back Office Operations What Is Different • Proven ability to translate “consumerization” megatrend into the right operational and customer service agenda • Capability-driven approach to service operations improvement • Deep understanding of the interplay between leading technologies and service operations • Deep industry sector experience to understand unique attributes and service needs Client Benefits • A service model supporting growth strategy and creating differentiation • Improved service quality, speed, and efficiency, with higher customer satisfaction • Leverage of state-of-the-art technology to enable new customer experiences, new channels, and improved productivity • Increased labor utilization and efficiency through improved staffing models and streamlined processes • Leadership and culture that drive continuous improvement in both customer experience and service delivery productivity 18 April 2016Global Operations Consulting

19. PwC Enterprise-Wide Operations Excellence We help clients: • Develop capabilities required to achieve operational excellence across the value chain • Assess unique needs of the industry and their business model to design tailored improvement program • Get to the root of issues affecting performance, and identify and implement best practices • Achieve sustainable performance improvement through changes in operating model, culture, and capabilities • Drive large, complex operations excellence programs that span functions and are global in scope Common Client Issues • Need for large-scale business transformation requiring a re- architecting of core processes, organization structure, and IT systems • Customer needs and profitability goals not met, and no understanding of root causes • Inability to internally source, prioritize, structure, and execute improvement opportunities • Incoherent performance measures and weak ability to align performance from top to bottom • Leadership, culture, and management system not conducive to continuous improvement What We Do • Operations Performance Improvement Strategy • Quality & Reliability • Business Process Excellence • Productivity Improvement • Talent Management & Motivator Alignment What Is Different • Ability to “lean” operations while building new capabilities • Operations excellence embedded and sustained at global scale • Systems approach to driving transformation, including leadership and culture • Deep, industry-specific experience in driving large-scale change and getting results Client Benefits • Clear target operating model and infrastructure to enable breakthrough performance • Rapid results—immediate transition from benefit identification to benefit realization • Initiatives and actions grounded in customer benefit • New capabilities and skills for leadership and staff—equipped for tomorrow’s challenges • Staff engagement and cultural change for enduring results • Robust measures and performance management that align major business processes, organizational units, and individual behaviors with corporate objectives 19 April 2016Global Operations Consulting

20. PwC Building Advantaged Operations Client examples 20 April 2016Global Operations Consulting

21. PwC For a global document management company, we assessed operational complexity and drivers of declining volumes. The transformation initiative spanned multiple functions and revamped the supply line, field services, and shared services. Impact: Realized >$400MM savings across business units and regions in <2 years. Developed key capabilities to enhance future competitiveness. For a major utility looking to better manage the full lifecycle of assets and inventory, we drove an aggressive strategic sourcing program. The initiative included realizing savings in key categories, addressing organization design issues, and strengthening procurement capabilities. Impact: Achieved >$125MM savings and enabled early engagement of procurement in the sourcing process. For a large consumer finance business, we assessed channel profitability and developed a broad-based program to optimize processes across client portfolios while mitigating fraud risk. We applied Lean and Six Sigma techniques to improve core processes. Impact: Drove 15% operating income improvement in Year 1. Simplified statement operations saving 32% in annual expense. For a major beverage company struggling with increased demand volatility and product portfolio complexity, we assessed supply chain capabilities and potential for competitive advantage. We re-architected and tailored the supply chain around customer segments. Impact: Realized 20% cost savings while enabling commercial strategy and growth. Increased agility for more effective new product launches. Building enduring capabilities, delivering value Advantaged Operations Differentiated Supply Chains Strategic Supply Management Customer-Centered Service Operations For a data processing company, we assessed the impact of cycle times on competitive advantage in an increasingly commoditized market. We mapped value streams, established key performance indicators, and drove the Lean-based program to engage the organization in driving improvements. Impact: Reduced order-to-cash cycle time by 58%, error rate by 89%, wait time by 61%, and floor space by 52%. Enterprise-Wide Operations Excellence For a global energy company, we deployed a reliability program and embedded improved maintenance planning, scheduling, and execution work processes across North American refineries. Program objectives were to improve availability, maintenance efficiency, and supply chain leverage. Impact: Improved gross margin by $100MM and generated >$230MM in annual savings in the first year. Physical Asset Lifecycle Management 21 April 2016Global Operations Consulting

22. PwC For a global industrial products client with multiple product lines, we developed the make/buy strategy based on what is core to the business. We then optimized the global manufacturing footprint to rationalize capacity and reduce costs while maintaining or improving service levels. Impact: Achieved >$230MM cost reduction (8% of cost base). Positioned manufacturing for competitive advantage. For a global technology company, we assessed how the supply chain could deliver more customer value and profitability. Workstreams included sales and operations planning, sourcing, and customer fulfillment. Capability development included talent, processes, metrics, and IT. Impact: Realized >$50MM annual savings with improved inventory turns, customer fulfillment, and supply chain responsiveness. For a rapidly growing Latin American utility, we led a transformation across the entire footprint in 6 countries and 40 business units. We defined ways to win in the market and designed an operating model to extract synergies and achieve corporate growth objectives. Impact: Identified $300MM in annual synergies. Built the operating model for self-funded 2X growth in 4 years. For a technology equipment service provider, we assessed the end-to-end R&D portfolio, innovation capabilities, and cost of complexity. We redesigned the innovation operating model and helped the client build robust innovation and portfolio management capabilities. Impact: Unleashed >$50MM in run- rate savings, enabling top-line growth and ability to invest 10% of R&D spend on high potential big bets. Competitive Manufacturing Innovation & Development Excellence Differentiated Supply Chains Advantaged Operations For a telecommunications equipment company experiencing margin compression, we assessed the overall cost structure and developed and drove a broad-based EBITDA improvement program addressing both COGS and SG&A levers. Impact: Achieved sustainable 300- basis point EBITDA improvement while delivering on the customer value proposition and service levels. Advantaged Operations For a global service client struggling with costs and client satisfaction, we deployed a capacity management and performance improvement program across front and back offices. The initiative addressed culture and leadership required to engage the organization and sustain improvements. Impact: Increased productivity with 20% effective capacity increase on the same cost base. Implemented a self-reinforcing management system. Customer-Centered Service Operations Building enduring capabilities, delivering value 22 April 2016Global Operations Consulting

23. PwC For a large healthcare provider system losing money due to funding challenges and cost pressures, we designed a systemic transformation program. Performance improvements were implemented across the revenue cycle and across supply chain, clinical operations, HR, and IT functions. Impact: Achieved $190MM benefit. Positioned the system to succeed in the new environment and drive year- over-year net income improvement. For a rapidly growing technology company, struggling with fragmented organization and processes from acquisitions, we drove a thorough change program addressing the global R&D capability. The program included organization, footprint, governance, team structures, and processes. Impact: Aligned innovation by product and skill set. Defined plan for 40% footprint consolidation. Reduced time-to-market by 2 months. For a complex holding company portfolio seeking to harness collective buying power, we built an effective leveraged purchasing capability. We analyzed spend and supplier contracts, prioritized categories, worked across organizational silos, and established the required organization and processes. Impact: Drove >$150MM in annual savings and $1B in market value. Established a capability which will scale as the portfolio evolves. For the US Department of Defense, we helped apply leading practices from the private sector to improve supply chain and transportation performance. The program involved 30 focused costs savings and process improvement initiatives. Impact: Achieved >$300MM in annual costs savings and >$1B of program-to-date savings while improving service levels 10-20%. Advantaged Operations Differentiated Supply Chains Innovation & Development Excellence Strategic Supply Management For a client undertaking a multi-billion dollar power generation program, we implemented industry-leading governance, control, technology, and process improvements. We also provided transparent, timely decision support from project level to board level. Impact: Drove achievement of critical schedule and cost objectives; improved schedule accuracy 50% while reducing cost overruns. Physical Asset Lifecycle Management For a diversified industrial company needing to change its cost structure and invest in growth, we assessed manufacturing economics, service-level needs, and footprint options. We developed the strategy to consolidate footprint and optimize the distribution network. Impact: Achieved >$50MM EBITDA improvement (35% conversion cost reduction). Identified >$20MM inventory reduction potential. Competitive Manufacturing Building enduring capabilities, delivering value 23 April 2016Global Operations Consulting

24. PwC For a leading aircraft manufacturer seeking dramatic operations performance improvement, we design a thorough Lean/Six Sigma program and 3-year transformation involving over 60 discrete projects. The program fully engaged the organization in driving change. Impact: Achieved 30% cost reduction and reduced build time from 27 to 12 days. Changed culture and instilled performance management discipline. For an engineered equipment company, we conducted a thorough assessment of over 40 manufacturing operations worldwide. We developed a new strategy and footprint which addressed a strategic misalignment with customer needs and under-utilized, poorly performing assets. Impact: Consolidated footprint by 40% with >$650MM NPV while shortening customer lead times and creating competitive advantage. For a leading health plan operating across 20 states in the US, we developed a target operating model in the health care management space. The model addressed the organizational design, technology, and capacity required to enhance market position and financial performance. Impact: Captured $350MM in increased annual revenue. Created a competitive differentiator in the client’s target payer sector. For a global financial institution, we led a multi-year, enterprise-wide transformation of the client’s core business by changing a high-cost, bespoke, labor-intensive model into a global, self-service, digital model that is flexible and scalable. Impact: Achieved >$650MM in annual run-rate savings and delivered an additional $700MM in the business digitization plan. Building enduring capabilities, delivering value Enterprise-Wide Operations Excellence Advantaged Operations Competitive Manufacturing Advantaged Operations For a major consumer products company, we drove a collaborative process to identify supply chain innovations that would generate breakthrough savings on top of traditional, incremental improvements. The approach challenged the status quo with perspectives from different industries. Impact: Identified 5 transformations with >$1B cost savings and increased flexibility. Changed thinking from “we can’t” to “why not?” Differentiated Supply Chains For a leading national health payer, we assessed operational efficiency and causes of declining margins. We drove a rapid turnaround through a back office productivity initiative which included workforce management and process improvements. Impact: Identified 15-30% savings across work centers. Developed roadmap and priorities to guide the initiative and realize results rapidly. Customer-Centered Service Operations 24 April 2016Global Operations Consulting

25. PwC Global Operations Consulting Regional Leadership United States Eduardo Alvarez eduardo.alvarez@strategyand.us.pwc.com Chicago, IL United States Mark Strom Mark.strom@us.pwc.com Irvine, CA Australia Ben Gilbertson Ben.gilbertson@strategyand.au.pwc.com Southbank, VIC China Mark Gilbraith Mark.gilbraith@cn.pwc.com Shanghai, China United Kingdom Joe Ippolito joseph.ippolito@uk.pwc.com London, UK Germany Bernd Jung bernd.jung@strategyand.de.pwc.com Dusseldorf, Germany 25 April 2016Global Operations Consulting Italy Gabriele Caragnano Gabriele.Caragnano@it.pwc.com Milan, IT

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