9 Boxes
The ADA Platform features a 9 Box matrix, which evaluates suppliers based on the probability of negotiation success (y-axis) and cash flow opportunity (x-axis). The matrix comprises 9 Boxes, with the top-right box (Box #1) housing suppliers with the highest potential. The red boxes (Boxes #1, #2, & #4) indicate top priority suppliers, offering users a strategic starting point for focused attention. Users can view metrics of selected boxes on the right side, toggling between supplier, spend, or ultimate parent levels, providing a comprehensive tool for supplier analysis and prioritization.
Introduction to 9-Box Matrix:
- The video introduces the 9-Box matrix, initially created by McKinsey in 1970, which serves as a strategic tool within the ADA Platform.
Matrix Structure:
- The matrix features a two-dimensional representation with the probability of negotiation success on the y-axis and the cash flow opportunity on the x-axis.
Distribution of Suppliers:
- In total, there are 9-Boxes within the matrix, and all suppliers on the ADA Platform are distributed among these boxes based on their assessed combination of negotiation success probability and cash flow impact.
Top Right Box (Box Number One):
- Suppliers with the highest potential, representing an optimal combination of negotiation success probability and cash flow impact, are located in the top right box (Box #1).
Strategic Focus:
- The matrix serves as a strategic starting point for users on the ADA Platform to identify which suppliers should be focused on first, providing a visual guide for prioritization.
Priority Boxes (Boxes One, Two, and Four):
- The red boxes (Boxes One, Two, and Four) highlight the three highest priority suppliers, offering users a clear indication of suppliers that require immediate attention.
Viewing Metrics and Customization:
- Users can select a box to view its metrics on the right side of the platform. Multiple boxes can be selected or deselected, and their metrics will be dynamically added or removed on the right side.
Changing Perspective:
- Users have the flexibility to change the view between the 9boxes, allowing them to assess metrics based on spend lines, suppliers, or ultimate parent entities.The option to toggle between these perspectives is located at the top of the platform.
Interactive ADA Platform Features:
- The platform allows users to interact with the matrix, providing a dynamic and customizable experience for supplier analysis and strategic decision-making.
Highlighted Example:
- The video showcases an example where the focus is on suppliers, indicated by the highlighted red box, providing a practical demonstration of the 9-box matrix in action.
0:00 - First created by McKinsey in 1970, the 9 Box on the ADA Platform is a matrix that has the probability of success on the y-axis and the cash flow opportunity on the x-axis.
0:13 - In total, there are 9 boxes where all the suppliers on the platform are distributed. They are distributed between all the boxes.
0:20 - The suppliers with the highest potential combination of probability of negotiation success and the cash flow impact are in the top right box for box number one.
0:30 - The lowest potential suppliers are in the bottom left box for box # 9. is a good starting point when you're on the ADA Platform to see which suppliers should be focused on first.
0:40 - The red boxes contain the three highest priorities suppliers boxes one two and four. The user can view these 9 boxes either on the supplier, spend or parent levels.
0:51 - If you select a box, you can view the metrics of that box on the right side. You can select multiple boxes and deselect as you please and they will be added to the metrics on the right to change the view between the 9 boxes, to change the view of the 9 boxes between spend lines
1:12 - supplier or ultimate parent. You do that on the top, so you scroll over here and you can say spend lines suppliers or ultimate parent.
1:20 - In this example, we're looking at suppliers, so it's highlighted in red. And that's 9 Box.
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