7207 Sales Analysis for Retail Script

8/20/2019 7207 Sales Analysis for Retail Script

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©SAP AG 2013 / SCENARIO ID: 7207

DOCUMENT CLASSIFICATION: INTERNAL AND PARTNERS

General Information: Industry Name – Retail

Application – Business Objects

Authors: I800032

Date Last Updated: April, 2014

DEMO SCRIPT

SALES ANALYSIS FOR RETAIL


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TABLE OF CONTENTS

1. Demo Script Overview ............................................................................................................. 3

1.1. Demo Description................................................................................................................................ 3

1.2. Intended audience............................................................................................................................... 3

1.3. Protagonists ........................................................................................................................................ 3

1.4. Business Pain Points........................................................................................................................... 3

1.5. Key Messages and Value Proposition ................................................................................................. 3

1.6. Storyflow Summary ............................................................................................................................. 3

2. Technical Requirements ......................................................................................................... 5

2.1. Prerequisites (If Any)........................................................................................................................... 5

2.2. System Access Information ................................................................................................................. 5

2.2.1. System Landscape ................................................................................................................. 5

2.2.2. System Access ....................................................................................................................... 5

2.2.3. Users...................................................................................................................................... 6

2.2.4. Languages Supported............................................................................................................. 6

2.2.5. Data .........................................................................................Error! Bookmark not defined.

2.3. Release for Used Components ............................................................................................................ 6

3. Demo Script .............................................................................................................................. 6

3.1. Story Flow ........................................................................................................................................... 6

3.2. Step-By Step Guide............................................................................................................................. 7

3.2.1. Summary to Route Cause Analysis ........................................... Error! Bookmark not defined.

3.2.2. Performance Drivers ............................................................................................................. 11

3.2.3. Slice and Dice Analysis......................................................................................................... 14

3.2.4. Product Alerts for Retail Stores ............................................................................................. 19

4. Appendix ................................................................................................................................. 23


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1. DEMO SCRIPT OVERVIEW

1.1. DEMO DESCRIPTION

The demo highlights the analytic flow across various roles critical to ensuring inventory coverage for key products.

From high level Summary views to Root Cause Analysis, the solution provides an top to bottom perspective that is

further enriched with the robust analytic capabilities of SAP BusinessObjects Explorer. Dashboards are used to isolateon problem areas with direct links into Explorer to take the analysis to whatever level of granularity is necessary to

diagnose problems and drive earlier course corrections, which ultimately increase sales and profitability for retailers.

1.2. INTENDED AUDIENCE

Please select for which audience this demo script is intended by selecting the appropriate boxes below.

VP Merchandising Category Managers Store Operations (HQ to Store Manager)

1.3. PROTAGONISTS

Users that have the task of analyzing sales data to set action plans to make the most efficient and profitable decisions

for their areas of responsibility.

1.4. BUSINESS PAIN POINTS

1. Retailers have long struggled to leverage the intrinsic value stored within their point of sales transactional history to

better serve customers, better understand buying trends.2. Inadequate workflows results in not being able to tap the real-time nature of the data into any meaningful business

insights.

3. Latency inherent in retail analytics.

1.5 KEY MESSAGES AND VALUE PROPOSITION

1. Industry specific solutions that can be delivered and implemented in 90-120 days (varies depending on customer

data environment).

2. Intended as a “starter kit” with a flexible architecture that enables customization to meet customer specific

requirements.

3. Customer co-innovation and feedback was a guiding force in the development of this solution.4. Drives sales insights across functions and silos.

5. SAP will show the industry that our solutions today can capitalize on this significant data pool by providing

merchandise indicators, promotional program highlights, for example, in a turnkey services offering that is

straightforward and low cost.

1.6 STORYFLOW SUMMARY

The demo starts with a Summary Analysis which provides high level insights to executives regarding potential productproblem areas. Upon learning of these problem areas, the solution provides insights into specific regions and/orcategories to further isolate where the problems reside. From there, an analyst diagnoses potential root causes (e.g.

external factors such as weather and competitor info) to determine appropriate actions. Direct links into more detailed


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product reports or to Explorer enable the user to pull the level of information that is appropriate with no ITintervention required.

The demo also includes a separate use case for Product Alerts leveraged within stores by Managers to identify wherethey have potential product issues with Lost Sales. The dashboard provides supporting contextual information (e.g.orders, promotions, etc.) and enables high-level what-if analysis to determine the sales impact of various actionstaken. Lastly, users direct information to those that need it to correct the problems at hand.


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2. TECHNICAL REQUIREMENTS

3.1. PREREQUISITES/RESTRICTIONS

Please refer to the documentation ‘How to Connect to SAP Demo Cloud’ on the Demo Store:

Demo Store: http://www.sapdemostore.com/ then, search for demo Id = 8024

Main URLs:

BI Launchpad:http://cl1-bieim:8080/BOE/BI

Explorer e views:

http://cl1-bieim:8080/explorer

Mobile:

http://cl1-bieim:7090

Name: BI SAP Demo Cloud (for example, but you can choose your own name)/CMS name: cldvmxwi00059

/Authentication: Enterprise / Username: smithjo / Password: welcome

http://cl1-bieim:7090/explorer

Connection name: BI SAP Demo Cloud (for example, but you can choose your own name) / Username:

smithjo / Password: welcome / System Name and port number: cldvmxwi00059:6400 / Authentication:Enterprise

Note: For Mobile access, please refer to the demo 8024 on the demo store to set up your Mobile apps, with

and without SDC connector.

Info spaces names: BAS Retail Sales Analysis – EN; English, Sales Velocity in Retail – French; BAS Retail

Sales Analysis - DE

3.2. SYSTEM ACCESS INFORMATION

3.2.1. System Landscape

System Landscape, this Process is built in SAP Demo Cloud landscape / BI EIM Cluster

Solution Components used in this Process SAP Business Objects 4

3.2.2. System Access

The German and French Dashboards with embedded links to French and German Webi reports and the Explorer

spaces can be found in the same folder. The Demo flow is the same as outlined in the English version below.

It is recommended to open all three dashboards ahead of time and to use the ALT-Tab function on the keyboard to

switch between the screens and roles.

http://www.sapdemostore.com/http://www.sapdemostore.com/http://www.sapdemostore.com/http://cl1-bieim:8080/BOE/BIhttp://cl1-bieim:8080/BOE/BIhttp://cl1-bieim:8080/explorerhttp://cl1-bieim:8080/explorerhttp://cl1-bieim:7090/http://cl1-bieim:7090/http://cl1-bieim:7090/explorerhttp://cl1-bieim:7090/explorerhttp://cl1-bieim:7090/explorerhttp://cl1-bieim:7090/http://cl1-bieim:8080/explorerhttp://cl1-bieim:8080/BOE/BIhttp://www.sapdemostore.com/


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3.2.3. Users

Predefined User (Role) Password Component

smithjo welcome Dashboards/webi

3.2.4. Languages Supported

Please select the standard languages in which this demo is available (i.e. translated into).

English Portuguese

German Japanese

French Simplified Chinese

Spanish Korean

3.3. RELEASE FOR USED COMPONENTS

3. DEMO SCRIPT

3.4. STORY FLOW

The demo starts with a Summary Analysis which provides high level insights to executives regarding potential productproblem areas. Upon learning of these problem areas, the solution provides insights into specific regions and/orcategories to further isolate where the problems reside. From there, an analyst diagnoses potential root causes (e.g.external factors such as weather and competitor info) to determine appropriate actions. Direct links into more detailedproduct reports or to Explorer enable the user to pull the level of information that is appropriate with no ITintervention required.

The demo also includes a separate use case for Product Alerts leveraged within stores by Managers to identify wherethey have potential product issues with Lost Sales. The dashboard provides supporting contextual information (e.g.orders, promotions, etc.) and enables high-level what-if analysis to determine the sales impact of various actionstaken. Lastly, users direct information to those that need it to correct the problems at hand.


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3.2 STEP-BY STEP GUIDE

3.2.1 SUMMARY TO ROUTE CAUSE ANALYSIS

What to say

(Talking points: Do not forget about technology positioning and integration points when writingRetailers face many challenges, it is a tough business in the best of times, but especially so given the

current economy. They are all striving to get closer to their customer in order to build loyalty and to drive

revenue. A couple key metrics are Out of Stock – where the shelf is empty and Lost Sales - how much you

would have sold if you had the product available. Industry experts agree that the average retailer could

significantly increase sales by converting these out-of-stocks into transactions. Specialty soft goods have

one of the biggest potential wins: solving out-of-stocks would boost their same-store sales 7%, while

department stores could see a 4% jump. Moreover, OOS rates double during promo periods. This

translates into $20 million incremental sales and $8 million in profit, so clearly it is a significant

opportunity.

SAP BusinessObjects Sales Analysis for Retail is a new analytic application that focuses on providing

visibility to the Out of Stock issues and reducing lost sales. This easy-to-use application comes readyequipped with BusinessObject’s leading BI technology to deliver its retail specific content. The application

is designed to be implemented in 90 days with the flexibility to be easily tailored to each retailers needs.Cheat Sheet:

Tough Econ Goal close Cust 2 key measures – OOS & Lost Sales Def. Measures OOS Avg 4%, specialty 7%, cons electronic even higher = $20 mil Avg

SA4R new AA focused on OOS Easy to use, fully equipt w/BOBJ best BI 90 day impl / flexible


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What To Do

Login to BOE system:

http://cl1-

bieim:8080/BOE/BI

using smithjo/welcome

Then, click ondocument tab, then onthe accordion menu‘folders’ tab

then, navigate your way

throughPublic Folders/BI-EIM/Retail/Sales Analysis forRetail/EN/Dashboards/

Double click on“Summary”

In the top left quadrant,point out Total Sales,Gross Margin and LostSales.

In the top rightquadrant, we can seethat plan and target forTotal Sales are not thatfar off.

Jay Merchant, the VP of Merchandising, periodically checks the health of the business todetermine if there are areas of opportunity to improve on same store sales. Specifically,the VP pays very close attention to Lost Sales due to stockouts than can be minimizedwith improved planning and execution. Upon review of current performance information,he notices that Lost Sales appears to be increasing in an environment where growth ishard to come by.

Lost sales are at a -16.6%. Total sales are up 5.3%, but gross margin is actually on thedecline. Jay needs to put an action plan in place to increase his sales and profitability(especially his profitability).

Point out the top rightquadrant titled RollingTime Period Trend,and click on totalsales rows, top leftquadrant

In the top right quadrant, we can see that plan and target for Total Sales are not that faroff.

A quick look at the Total Sales indicates sales were exceeding plan until they hit week38.

http://cl1-bieim:8080/BOE/BIhttp://cl1-bieim:8080/BOE/BIhttp://cl1-bieim:8080/BOE/BIhttp://cl1-bieim:8080/BOE/BIhttp://cl1-bieim:8080/BOE/BI


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Point out the lowerleft quadrant titledRegionalPerformance.

Point to the emailbutton to speak tocommunication withthe CategoryManager

A closer inspection reveals that the South Region seems to be the geographic hot spot

and two highly profitable departments, Home and Electronics, are really struggling withLost Sales.

The VP decides to reach out to the VP Store Ops – South Region and the

Merchandising leads for these products to gain a better sense of what is happening and

what might be done to correct the problem.

Additonally,emails the Category Manager for Electronicsand requires further action.


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3.2.2 PERFORMANCE DRIVERS

What to say(Talking points: Do not forget about technology positioning and integration points when writing yourtalking points!)

What To Do What to Say (include necessary Screenshots)

Close this dashboard

Double click on“Performance Drivers”

Highlighted total salesin the bottom left box.

Click on Lost Sales inthat same box.

The Category Manager reviews to determine specific drivers of product issuesdiscovered by VP.

The Category Manager can view their Key Performance Indicators, Rolling Trends overtime, Product Analysis and Drivers all in the analytic area.

Click on ‘electronic’bar, left bottomquadrant to see thebottom right quadrantdisplay details aboutelectronics dept.

Click on bottom leftquadrant radio button‘Lost sales’

A review of the Electronics Department reveals that 42 LCD 1080P TV’s sales aregrowing but Lost Sales seem to be an issue.


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Click on South in theRegion field.

Click on Electronics inthe Department field,then televisions in thecategory field

Highlight the TotalSales under Product Analysis

He/she notices that although sales are good, lost sales are also high. There is a large

sales opportunity being lost due to lost sales.

Click on Lost Salesunder Product Analysis.

Hmm, what is causing this out-of-stock./lost sales situation? Let’s delve deeper!


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Click on Promotionsin the Driver Analysisbox.

He/she notices an opportunity in the South and suspects a very effective Back-to-

School promotion with insufficient stock during week 37 as a likely stock-out culprit.


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Click on the ExplorerLink to do some moredetailed analysis.

3.2.3 SEARCH AND EXPLORE ANALYSIS

Step 1.0

What to say(Talking points: Do not forget about technology positioning and integration points when writing yourtalking points!)



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Talk about metricsavailable and pull thescroll bar over to theright to show all of thedimensions.

Select Lost sales

If product Name is notalready selected,please change theDimension selected inthe graph by ‘Product

name:

Open the ‘best guess’

drop down list, select‘Product Name, clickok

All of the metrics can be robustly and easily sliced and diced based on all of theattributes and dimensions associated with the products, and any level of the hierarchyanalyzed.

Under Region, click

on South.

Under Department,

click on Electronics.

Which specific SKUs are creating the issue?

What specific stores are struggling?

The Category Manager can leverage Explorer to drill to the level of granularity required

for the answers.

Let’s drill through the Product Hierarchy to find the exact SKUs/models driving Lost

Sales.


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Choose Category

instead of Product

Name on the chart

view at the bottom.

We can see that computers are the largest contributor to lost sales in Electronics.

Click on thepercentage box in thegraph area (left ofchart) and choose thepie chart alternative.

We can see that Televisions represented $701,502 of the total lost sales dollars forElectronics.

To visually see what percentage that is to the total, we simply click on the percentage

box and ask for a pie chart.

The results are that 45.23 % of the total is in Televisions.


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Click on the arrownext to Lost Sales.

In the drop down box,put a check mark nextNet Sales.

We now want to see a side by side comparison of net sales to lost sales.

Switch from Categoryto Product Name ,click OK

We want to see specifically which products are causing our lost sales to occur.

What we find is that 42 LCD 1080P TVs represent our biggest lost sales area, totallyover 28% of the category at a value of $434,482. We have to do a much better job ofbeefing up the inventory to support our demand.

But what stores should we be concentrating on? Are there just a few culprits, or arethey all losing business?


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Double Click on 42LCD 1080P TV in thePie Chart to filter (drilldown) on this product,

Then, change theanalyzed dimensionto ‘store’.

Click OK

We are going to choose to drill into 42 LCD 1080P TVs.

Email

If Outlook client is notset up, please set itup quickly bychoosing not to use

an email account, andkeep on without emailsupport.

Now we have not only answered the question of which stores and products needattention, but we also have insight into the product and the store that we should beconcentrating on.

I can now email this to the appropriate person for action. Click on the envelope icon, top

of the screen.

You can also show the different sharing options (export function, next to email)


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3.2.4 PRODUCT ALERTS FOR RETAIL STORES

Step 1.0

What to say


Close Explorer.

Close the previousdashboard and open“Product Risk”

Store Managers have near real time visibility into product outliers not moving off theshelves at the expected velocity across all Departments and Categories. The view isintended to be analysis lite so that managers can quickly assess the hot spots andinitiate the corrective action process. To that end, managers leverage a graphicalinterface to navigate to problem areas where they are provided with inventory and salesvelocity information as well as ordering and promotional information related to theselected product.


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Click on icon

‘television’ on top of

the screen:

Highlight Product 42”

LCD 1080PClick “Analyze” to drillinto more detailed dataon that product

Directly from the dashboard the manager can capture the reason behind the issue androute it to the appropriate group for the appropriate next steps (e.g. local sourcing ofproduct, substitute product, etc.). The dashboard can easily be extended to DepartmentManagers to provide the same visibility into Categories selling in their respective areas.

The manager can see that the core product, the 42 LCD 1080P, has had the largest out-of-stock and lost sales numbers.

Show the emailbutton at the bottom

but do not execute

it.

Alerting can easily be customized to a Customer’s needs…everything from non-complex sales exceptions to more sophisticated predictive algorithms can be employed

to identify “at-risk” products.

The store manager puts an action plan into place and emails his recommendation to theCategory Manager.


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Sales Analysis for Retail offers needed data to users without the heartache of having tosift through large amounts of data. It offers powerful insights to all levels of the

organization.

Additionally, the organization working towards common goals and they are executingagainst the strategies put in place to drive improvements.

2. APPENDIX

4.1 DOCUMENT UPDATES NOTES

July, 2011

Dec 2012

April 2014

Revisions for multilingual (EN, DE, FR)

Update BI4 SP5

Template Update

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