Avatar Sphere · Advanced Materials BU DS Products Customers Assets Delivered Cost Simulation EVC / Margins / Advanced Materials BU / Q4 FY2025 Saved queries new Margin-negative combinations Customer portfolio review Q4 P&L bridge Asset utilization outliers Products (7) clear NWV family CMS family ROM family + 4 more Customer accounts All (342 accounts) Sites (90) All plants selected Cost basis Standard Delivered Period Q4 FY2025 Oct 01 — Dec 31, 2025 DATA SOURCES SAP ECC · reconciled MES · 42 sites Cost center master Last sync: 2 min ago Which product-customer combos ran margin-negative at delivered cost? Ask → Avatar Compass Live Answered in 1.2s · 7,400 combinations analyzed · reconciled monthly to ERP ANALYSIS SCOPE 7,400 combinations Product × customer × site, Q4 FY2025 MARGIN-NEGATIVE 47 at delivered cost Hidden destruction · €1.2M / quarter DELIVERED MARGIN DEFINITION CM1 − Consumed Capacity Overhead − Weighted Inventory Cost − CO₂ per product-customer-plant combination · reconciled to ERP master data monthly Top margin-negative combinations — ranked by annual impact # PRODUCT · CUSTOMER · SITE REVENUE STD % DELIVERED IMPACT / YR 1 CMS-2140 · Acct 3140 · Site 02 €8.4M +14.8% −6.1% −€510K 2 NWV-860 · Acct 3082 · Site 01 €6.2M +11.2% −5.5% −€340K 3 ROM-440 · Acct 4210 · Site 01 €2.8M +13.4% −4.3% −€120K 4 SFS-120 · Acct 4455 · Site 03 €1.9M +12.8% −3.9% −€95K 5 CMS-2140 · Acct 3992 · Site 02 €2.1M +10.6% −3.2% −€78K 6 NWV-860 · Acct 4673 · Site 02 €1.8M +9.8% −2.7% −€62K Rows 7–47 · 41 additional combinations margin-negative at delivered cost · aggregate −€95K / quarter 48 PROD-AS17 · Acct 1845 · Site 03 €3.4M +15.1% +11.8% €401K ↓ 7,337 additional combinations · aggregate margin +14.8% CMS-2140 × Acct 3140 — cost breakdown Delivered cost at recipe-asset level · Site 02 · Reactor Line B3 (shared) Polymer feed €12.40/kg Energy €4.80/kg Direct labor €2.90/kg Reactor OH (62% ut.) €4.20/kg Site overhead €1.60/kg Total delivered cost €25.90/kg Revenue €22.10/kg Margin −€3.80/kg −14.7% of revenue −€510K / yr INSIGHT Invisible in standard ERP cost reports. True margin only visible at recipe-asset level, not product-level. Driver: Reactor Line B3 utilization dropped from 85% to 62% after Acct 4210 reduced orders in Q3. Standard cost not updated. COMPASS · PRICING ANALYSIS RESULT 63 of 7,400 product-customer-site combinations run margin-negative at delivered cost. €1.8M/quarter of hidden destruction. Repricing on 0.4–0.7% of BU revenue lifts €3–6M/year. Reconciled to ERP master data at small single-digit variance · updated monthly. Delivered cost = CM1 − Consumed Capacity Overhead − Weighted Inventory Cost − CO₂ Cost · per product-customer-plant Advanced Materials BU · 42 sites · 540 recipes · 94K production orders · FY2025 · reconciled monthly to ERP Avatar Sphere · v2.4.1 · Forge / Compass / Horizon

Value Chain Intelligence

Avatar Engines reconstructs the economics of enterprise value chains in a World Model, so you can see the true value behind every decision — from asset planning to customer margins.

Products Customers Fabs Delivered Cost Simulation Business Unit Industrial Power Semi Product family (8) clear IGBT-600V · IGBT-1200V IGBT-1700V · SiC-1200V SiC-1700V · Discretes Gate drivers · Modules Customer accounts All (420 accounts) Fabs & sites (5) Fab 01 · 300mm front-end Fab 02 · 200mm front-end Fab 03 · 150mm SiC Site 04 · Package & test Site 05 · Package & test Cost basis Standard Delivered Period Q4 FY2025 Margin — Product × Customer × Fab ANALYSIS SCOPE Combinations analyzed: 8,412 Margin-negative at delivered cost: 62 Hidden destruction: €1.8M / quarter DELIVERED MARGIN DEFINITION CM1 − Fab capacity overhead − Package / test burden − Yield loss Margin % # PRODUCT · CUSTOMER · FAB REVENUE STD MARGIN DELIVERED Δ IMPACT / YR 1 IPM-3300 · Acct 2104 · Fab 02 €7.8M +22.4% −8.2% −30.6pp −€420K 2 SiC-M1200 · Acct 1856 · Fab 03 €6.4M +19.8% −6.4% −26.2pp −€380K 3 IGBT-M1200 · Acct 3082 · Fab 02 €3.1M +17.2% −5.1% −22.3pp −€180K 4 IPM-1700 · Acct 2104 · Fab 02 €2.6M +15.8% −4.2% −20.0pp −€140K 5 SiC-M1700 · Acct 1958 · Fab 03 €2.2M +14.4% −3.8% −18.2pp −€110K 6 IGBT-M600 · Acct 2287 · Fab 01 €2.0M +13.2% −3.1% −16.3pp −€85K Rows 7–62 · 56 additional combinations margin-negative · aggregate impact −€5.9M / year 63 SiC-D1200 · Acct 1856 · Fab 03 €4.1M +28.4% +21.2% −7.2pp €869K 64 IGBT-D1700 · Acct 1195 · Fab 01 €3.8M +24.1% +19.6% −4.5pp €744K ↓ 8,348 additional combinations · aggregate margin +18.4% COMPASS · PRICING ANALYSIS RESULT 62 of 8,412 product-customer-fab combinations run margin-negative at delivered cost. Fab utilization gaps and package-test burden hidden behind standard costing. €7.2M/year destruction. Repricing lifts €3–5M/year on 0.3–0.5% of BU revenue. Delivered cost = CM1 − Fab capacity overhead − Package/test burden − Yield loss · per product-customer-fab Reconciled at small single-digit variance to ERP · Avatar Compass · Industrial Power Semi BU (€950M rev) · 3 fabs · 2 back-end sites · Q4 FY2025
Pricing Precision
Order-level cost attribution reveals the real margin of each product-customer combination.
Software
Avatar Sphere assembles ERP data into a context-driven World Model
/01 Forge

Models production and material flows directly from ERP transactions. Handles multi-instance, multi-site landscapes with automated synchronization and error reconciliation.

Avatar Sphere · Advanced Materials BU Products Value Chain Assets Cost Sources SAP ECC MES · 90 Cost ctrs Demand RECONCILED MONTHLY to ERP Value Chain Context Model 42 sites · 540 recipes · 94K production orders CAT FEED ENERGY LABOR REACTOR B3 62% util CMS-2140 NWV-860 ROM-440 Recipes: 822 Orders: 94K Sites: 90 ● Self-reconciling FORGE · CONTEXT MODEL ERP transactions reconstructed into queryable Value Chain World Model. Avatar Sphere · Forge · Advanced Materials BU · monthly ERP-reconciled

Forge

With Forge every single order becomes traceable to its value drivers: which asset produced it, how much overhead it consumed, what inventory cost was attributed. The result is truly granular cost-to-serve. Reconciled at small single-digit variance to audited financial statements, with monthly updates.

Implemented
Operational Impact
95%
Reduction in error reconciliation work time
Monthly
Reconciliation cycle to audited reporting
/02 Query

Ask any question about the value chain in plain language — margins, cost-to-serve, capacity, customer profitability. Every number traces back to the underlying ERP transactions.

Avatar Sphere · Advanced Materials BU Products Customers Delivered Cost Simulation BU Chem 7 fam Customers 342 accts Cost basis Std Deliv Pricing Precision — Standard vs Delivered ANALYSIS 7,400 combinations analyzed MARGIN-NEGATIVE 47 · €1.2M/qtr hidden PRODUCT · CUSTOMER · SITE STD DELIV IMPACT CMS-2140 · Acct 3140 · Site 02 +14.8% −6.1% −€510K NWV-860 · Acct 3082 · Site 01 +11.2% −5.5% −€340K ROM-440 · Acct 4210 · Site 01 +13.4% −4.3% −€120K SFS-120 · Acct 4455 · Site 03 +12.8% −3.9% −€95K Rows 5–47 · 43 more margin-negative COMPASS · PRICING ANALYSIS 47 combinations destroy margin at delivered cost. Repricing releases €2–4M/yr. Avatar Sphere · Compass · Advanced Materials BU · monthly ERP-reconciled

Compass

Run on-demand analyses that would have taken weeks of cross-system work. Share tables and charts directly with Sales, Ops, and Finance to operate from a common data source. Negotiate with customers and suppliers on the latest numbers and production insights.

Implemented
Cross-Functional Output
Product margins by customer — Varon Semiconductors
Q3 · margin
HX-7300 · Precision driver IC
18.4%
HX-8100 · Power management IC
12.7%
HX-9400 · Sensor interface IC
5.2%
SHARED WITH
Sales
Ops
Finance
· 3 min ago
/03 Simulate

Simulates pricing, capacity, and portfolio changes before they're committed. Re-runs the full World Model to show how the proposed change affects the whole value chain.

Avatar Sphere · Advanced Materials BU Products Assets Cost Simulation Scenarios Vol shift 40% Capacity reall. New toller Scope NWV-860 Site 01 → 02 Volume shift simulation — 2nd-order impact CURRENT · SITE 01 100% 58% Deliv cost: €17.10/kg Margin: −€2.30/kg P&L: −€630K/yr AFTER SHIFT 40% Site 01 — 60% 49% Site 02 — 40% 94% Blended: €15.56/kg DIRECT SAVING +€148K 2ND-ORDER OH −€215K NET-NET IMPACT −€67K/yr INSIGHT Direct saving looks positive, but B3 drops to 49% — redistributing €4.2M overhead kills the gain. Don't shift. HORIZON · SCENARIO RESULT 2nd-order overhead redistribution invisible in standard planning tools. Avatar Sphere · Horizon · Advanced Materials BU · simulated on reconciled Q4 data

Horizon

Create scenarios from asset planning to customer negotiations and get results in seconds. Simulate overhead reallocation, working capital, and customer-mix shifts across every product, plant, and customer. Scenarios stay live — automatically re-running as new ERP data arrives.

Implemented
Scenario Output
HX-9400 price repositioning — Varon Semiconductors
Scenario · Q4 simulation · price + capacity reallocation
TODAY
€420K
Quarterly contribution
HX-9400 · 5.2% margin
€38.40 · 210K units
PRICE +8% VOLUME −15%
€396K
−€24K vs today
HX-9400 · 5.5% margin
€40.10 · 178K units
Overhead reabsorbs the gain
+ CAPACITY TO HX-7300
€520K
+€100K vs today
HX-9400 + HX-7300 mix
32K wafers shifted
SECOND-ORDER EFFECTS
Freed capacity from 15% volume drop
32K wafers /qtr
Reallocated to HX-7300 · 18.4% margin product
+€128K /qtr
Overhead per unit on remaining HX-9400 · fixed cost spread thinner
+17.6%
Applications
A standardised software to create value in every industry
/01
Advanced Manufacturing
Customer profitability
/02
Chemicals
True margin discovery
/03
Consumer Goods
Minimal inventory
/04
Pharmaceuticals
Asset planning
/05
Semiconductors
Optimal overhead distribution
Serve customers better and negotiate with full margin transparency.
Real customer profitability is hard to gauge across multiple plants around the globe, order patterns, and portfolio mix. Once orders, materials, and production runs are fully linked and identified in the Avatar Sphere model, queries can pull up recent data with precise margin estimates for each customer. Simulate changes to find optimal solutions for you and the customer during negotiations.
Pricing
Quote
new parts at their true expected cost
Portfolio
Incentivize
customers toward higher-margin components or volume adjustments
Product margins by customer — Norven Industrial
Q4 · delivered margin
VFD-75H · Variable drive
16.9%
SWG-1500 · Switchgear
9.8%
MOT-22S · Servo motor
4.8%
DRV-4400 · High-power drive
−6.4%
SHARED WITH
Sales
Ops
Finance
Shared reactors and inventories hide true margins of product-combinations.
Chemical production often distributes overheads and inventory charges through approximated averages with some adjustments. Precise margins are unknown, making it hard for commercial to identify the true profit drivers in their portfolio. Avatar Sphere allows full attribution of capacity consumption and inventory contribution per product and customer, reconciled monthly at small single-digit variance to ERP.
Commercial
Reduce
margin loss from mispriced products and high-cost customers
Strategy
Simulate
changes to the product portfolio and impact on unit costs
Top margin-negative combinations — ranked by annual impact
47 product-customer-site combinations run margin-negative at delivered cost
1 · CMS-2140 · Acct 3140 · Site 02Std +14.8%−€510K
2 · NWV-860 · Acct 3082 · Site 01Std +11.2%−€340K
3 · ROM-440 · Acct 4210 · Site 01Std +13.4%−€120K
4 · SFS-120 · Acct 4455 · Site 03Std +12.8%−€95K
Discover the physical optimum of your production network.
Create a benchmark for the minimum level that inventories can converge to, if current production and distribution patterns are executed with perfection. Once established, this serves as a guideline to monitor supply chain efficiency, spot deviations, and study scenarios for structural changes in product portfolio or asset locations.
Operations
Close
the executable inventory gap at the current network
Strategy
Redesign
portfolio or asset locations to shrink the structural gap
Inventory vs physical optimum — Miklagard Brands
Rolling 12 months · structural benchmark · executable gap
Beverages
€24.2M · gap €5.6M
Household
€31.8M · gap €9.4M
Personal Care
€14.6M · gap €3.4M
Frozen
€9.8M · gap €1.4M
Physical optimum
Current inventory
BENCHMARK · TOTAL GAP €19.8M
€12.1M executable at current network · €7.7M requires structural change.
Compare structural impact of new production line locations.
When network operations run close to the optimum, only structural changes can reduce inventory further. The Avatar Sphere world model recreates past production runs down to single production line capacities and shows where an expansion would have created the most significant relief. You can then go further and include projections or run a full overhead calculation to refine current asset planning.
Footprint
Locate
new production capacity where it relieves the most structural inventory
Inventory
Release
structural working capital by shortening lead-times to demand
New work center placement — Ivrea Biologics
Hypothetical · 12-month horizon · average inventory per product
Nevalin
Orimab
Baseline
€18.4M
€14.2M
+ Raleigh · USA
€8.9M −€9.5M
€11.4M −€2.8M
+ Cork · Ireland
€12.6M −€5.8M
€10.8M −€3.4M
BEST OPTION · RALEIGH USA
Total reduction €12.3M across portfolio, driven by shortened lead-times from US West Coast hub.
Steer pricing, capacity and inventory in one integrated model.
Determine the real cost on individual product-work center combinations. Simulate how adjusting price and volumes break down across the product portfolio. Check what happens if freed fab capacity is redeployed to higher-margin products, and whether higher prices absorb the higher overhead attribution while opening up spare capacity.
Margin
Price
lots by expected inventory cost and true overhead attribution
Capacity
Decide
about capacity allocations on the basis of overhead and margin trade-offs
HX-9400 price repositioning — Varon Semiconductors
Scenario simulation · price + capacity reallocation
TODAY
€420K
Quarterly contribution
HX-9400 · 5.2% margin
PRICE +8% VOLUME −15%
€396K
−€24K vs today
HX-9400 · 5.5% margin
+ CAPACITY TO HX-7300
€520K
+€100K vs today
HX-9400 + HX-7300 mix
Data Core
Starting point for value creation

Avatar Sphere establishes a new data core that brings all transactions across the value chain into one consistent World Model, usable for planning and reconciled with the reality of your ERP. Previously infeasible profitability improvements such as order-based costing and bottom-up asset simulation compound the value of the World Model over time.

Monthly reconciliation with ERP
Shared access via link to text queries
Inclusion of order book and forecasts
VALUE CHAIN WORLD MODEL Portfolio Rationalization Minimal Inventory DAY 1 Pricing Precision DAY 1 Inventory Cost DAY 1 Asset Planning DAY 1 Customer Mix Steering Campaign Strategy CO₂ Attribution
Day 1 — Lead cases
Expansion path
Company
Context for the world's enterprise data
Context is the hardest problem for AI in the modern enterprise. ERP systems store transactions, not reality. Instances are not properly synchronised, material flows are approximated, contextual relationships are lost — and with them, the ability to see where value is truly created and destroyed.
Our World Model for Value Chains is the result of years of work solving this problem: reconstructing real context and values from enterprise data, to serve as a foundation that transforms AI and ERP systems into immediate bottom-line impact.
Dirk Schulte
Co-Founder & CEO
Dirk Schulte
Dirk holds a Master in Quantitative Economics & Finance from the University of St. Gallen. He and Jann have collaborated for years on simulation projects with clients in manufacturing and financial services. Work with an enterprise client on value chain modelling eventually led him to develop the concept of world models for enterprise value chains.
Dr. Jann Fridolin Müller
Co-Founder & CTO
Dr. Jann Fridolin Müller
Jann holds a PhD in Artificial Intelligence from University College London. In addition to his collaboration with Dirk, he has extensive experience leading projects in cryptocurrencies and blockchain. During his work on the value chain model, he designed the architecture required to implement a world model at enterprise scale.
Contact us about your value chain
Address
C8, 1 68159 Mannheim