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Business Intelligence in Retail

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Title: Business Intelligence in Retail


1
(No Transcript)
2
Business Intelligence
  • Sandana Kichenane
  • Microsoft EMEA
  • EMEA RETAIL INDUSTRY MANAGER
  • sandanak_at_microsoft.com

3
Agenda
  • Retailers BI needs
  • Market Analysis
  • Smarter Retail Business Intelligence
  • Listen to the customer Robert Hopkins of Dollond
    Aitchison
  • Call to actions, resources
  • QA

4
Retailers pains
  • Static systems
  • No enough vertical expertise, solutions!
  • Difficult to create, query and share new KPI
  • Not end user friendly, need IT
  • Batch process oriented
  • Sharing the information
  • No easy collaboration, no flexible role/security
    settings
  • Too many manual process
  • Data Quality (out dated information, lack of
    faith on the data)
  • Reporting
  • Too much paper reporting
  • Training needs and lack of user-friendly tools
  • Expensive BI solutions!

5
Retail Sector Hype Cycle, 2005, Gartner
Key Time to Plateau
Merchandising and Category Analytics and
Optimization
Less than two years Two to five years Five to 10
years More than 10 years
Markdown Optimization
Promotion Optimization
Global Data Synchronization
RFID (Case/Pallet)
Labor Management andScheduling Tools
Technologies of interest to MS X Next-Generation
Retail OS for POS X RFID item X In store
customer deployment X Promotion opt X Mdse
and Ca anal _at_ optim X Rfid asset X
Markdown optim X Global data sync X RFID
case and pallet X Price optim X Corp and
store bus intel X Multi channel integ X
Mobile POS X CRM
Price Optimization
In-Store Wireless Deployment (Customer Facing)
Contactless Payments
Merchandising
Electronic Shelf Labels
Visibility
Integrated Demand and Replenishment Planning
POS
In-Store Wireless Deployment (Store Operations)
Digital Signage
Corporate and Store Business Intelligence
Store task Management
Product Content and Data Management
Multichannel Integration
JAVA based Based POS Software
Retail (Supplier) Extranet
Next Gen retail OS for POS
CRM
Mobile POS
Biometric Id
Collaborative Planning
As of July 2004
Technology Trigger
Peak of Inflated Expectations
Trough of Disillusionment
Slope of Enlightenment
Plateau of Productivity
Maturity
Acronym Key CRM Customer relationship
management RFID Radio frequency identification
6
Business Intelligence is Gaining ground!
Source 15th Annual Retail Technology Trends
Survey conducted by RIS News and Gartner, March
2005
7
Microsoft Smarter Retail BI proposal
  • What Better manage retail core systems exploit
    the data available
  • Store systems and Supply and demand chain
  • Efficient replenishment, promotions, cross/up
    selling
  • Out of stock
  • How Agile BI platform and solutions
  • Empower retailers at all level with the right
    tools, devices and solutions
  • More real time fact based decision making
  • Friendly tools, intuitive, innovative and
    training free
  • Efficient sharing of KPI
  • Cost Best TCO and ROI
  • Engage Help Retailers to migrate
  • From Oracle/DB2
  • From competitive BI environment
  • Deploy with our partners

8
Smarter Retail Business Intelligence
Entreprise Retail applications
9
BPM BI with Business Scorecard Manager
(Maestro)
10
Mendocino Version 1.0
  • Time management
  • Record, review, analyse hours worked and receive
    approvals
  • Budget monitoring
  • Supports managers in fulfilling their cost and
    budget responsibilities, including annual budget
    planning, budget monitoring, cost analysis and
    correction of postings
  • Leave management
  • Requests for leave and receive approvals
  • Organization management
  • Supports managers in their HR related
    administrative and planning tasks. It supports HR
    processes relevant to a managers particular
    tasks
  • Time line
  • Preview end 2005
  • RTM in 2006

11
Microsoft Retail BI ecosystem
12
The data warehouse we created using a Microsoft
solution is helping us manage inventory much more
efficiently. Over the next three years we
anticipate inventory savings totaling
U.S.175million. Whitey Basson, Chief Executive
Officer, Shoprite
Automated Business Intelligence provides
real-time inventory, KPI, reporting accessible
anywhere, anytime, any device
  • Outdated reporting applications were expensive to
    support, lacked flexibility, unreliable
  • Moving from ICL Mainframe to best-of-breed data
    warehouse and reporting solutions
  • Enterprise-grade performance with no unscheduled
    downtime
  • Microsoft SQL Server 2000 for Data warehouse,
    Analysis Services, Reporting Services, and a
    dashboard created using Microsoft Visual Studio
    .NET
  • ProClarity for rich reporting
  • 175 M Inventory savings
  • Accurate and reliable reporting
  • Better and real-time visibility
  • Easy to deploy, to manage, to use

13
Welcome Robert HopkinsCentral Systems
development Manager
  • Dollond Aitchison

14
Microsoft EMEA Retail Technology Conference
2005 November 2/3 Presented by Robert
Hopkins Central Systems Development Manager
15
The Importance of Business Intelligence
  • DA the Opticians
  • Considerations when adopting new technology -
    ProClarity
  • Outline of selected solution ProClarity
  • DAs experience of deploying ProClarity
  • The benefits of Business Intelligence
  • Long-term impacts for our business

16
DA the Opticians
  • Established 255 years ago, DA is the oldest
    retail chain on the high-street
  • 370 stores
  • One of four major high-street optical retailers
  • First for Service
  • Provide clinical eyecare services, aftercare,
    spectacles and contact lenses to over four
    million active customers
  • Previous (no longer active) customers include
    Charles Darwin and Charles Dickens

17
DA Customers
"In the struggle for survival, the fittest win
out at the expense of their rivals because they
succeed in adapting themselves best to their
environment. The expression often used by Mr.
Herbert Spencer of the Survival of the Fittest is
more accurate and convenient"
18
Considerations when adopting a new technology -
ProClarity
  • How would users adopt, and adapt to, new
    technology?
  • Interfaces with existing systems?
  • Offer DA competitive advantage?
  • Enable simpler / more effective information
    dissemination?
  • Capable of addressing multiple business issues?
  • Skills, quality and trustworthiness of
    development partner
  • Cost ROI

19
Outline of selected solution - ProClarity
  • Invited 3rd party OLAP application vendors to
    demo
  • ProClarity / Rockport impressed
  • Dashboard metrics added bonus to OLAP analysis
  • Consolidate on ProClarity over Reporting Services
    and Analysis Services in next few years
  • Easier support development
  • Cheaper

20
DAs experience of deploying ProClarity
  • Original priorities overtaken by immediate
    deliverables
  • Training on Dashboard only 15 mins per colleague
  • Need more flexibility functionality to
    configure Dashboard
  • Need support of experts in initial phase / first
    few deliverables
  • How replace tried, tested and trusted MIS
    Intranet?
  • Regional restructure migration very simple and
    quick
  • Senior management buy-in

21
The benefits of Business Intelligence
  • Microsoft SQL Server Analysis Services,
    Reporting Services, DTS
  • Dynamic thin-client information delivery /
    analytical capabilities
  • Rapid analysis of business issues
  • Different presentations to suit teams /
    colleagues
  • More professional data information presentation
  • Savings (Time / Cost) increased productivity
    (Margin Analysis)

22
Margin Analysis
  • 1 10 12
  • report
  • 0 12 365
  • analyse
  • Paperless Margin Pack
  • New Weekly KPIs
  • Store-level insight
  • Enable pricing strategies

23
Margin Analysis Decomposition Tree
24
ProClarity Dashboard
25
Long-term impacts for our business
  • Single portal into Management and Operational
    information
  • Quicker, more effective decision making
  • Enable branch managers to be challenged on
    performance
  • Timely information delivery
  • Business Intelligence Lower costs/more profit
    increased market share better customer
    retention improved customer service care
    react more quickly to best-selling/highest margin
    lines cross selling supply chain
    efficiencies/less shrinkage

26
How fit is DA?
"In the struggle for survival, the fittest win
out at the expense of their rivals because they
succeed in adapting themselves best to their
environment. The expression often used by Mr.
Herbert Spencer of the Survival of the Fittest is
more accurate and convenient"
"In the struggle for survival, the fittest win
out at the expense of their rivals because they
succeed in adapting themselves best to their
environment. The expression often used by Mr.
Herbert Spencer of the Survival of the Fittest is
more accurate and convenient"
27
Reactions to OLAP/ProClarity
  • OLAP has given us the ability to understand our
    future customer demand position and to cut it
    immediately into the views we need to make daily
    decisions by individual store on resource
    allocation. Previously this work would have
    taken six people the best part of a morning to
    complete-now it is only two clicks away and their
    time can be reinvested on taking action. Andy
    Ferguson, Chief Executive

28
The importance of Business Intelligence
  • Thank you
  • robert.hopkins_at_danda.co.uk

29
Smarter Retail BI Wrap-up and call to actions
  • Best BI platform and solutions for
  • Reporting
  • Business Performance Management
  • Integration of many legacy systems Retail
    entreprise app.
  • Real-time analysis
  • Customer satisfaction (CRM)
  • Customer and partners
  • Learn more on our Retail BI initiatives
    www.microsoft.com/industry/retail
  • Trainings dont miss them https//training.partne
    r.microsoft.com/plc
  • Try SQL2005, Microsoft Business Score Card
    Manager NOW!
  • EBC/MTC we want to help you
  • SQL2005, BI specific tracks tomorrow, dont miss
    them!!!
  • Contact me for more information
  • Sandana Kichenane, 33 1 70 99 10 94,
    sandanak_at_microsoft.com
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