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Agenda
1. Retailers BI needs2. Market Analysis3. Smarter Retail Business Intelligence4. Listen to the customer: Robert Hopkins of Dollond & Aitchison 5. Call to actions, resources6. Q&A
Retailers pains
Static systemsNo enough vertical expertise, solutions!Difficult to create, query and share new KPINot end user friendly, need IT Batch process oriented
Sharing the informationNo easy collaboration, no flexible role/security settingsToo many manual processData Quality (out dated information, lack of faith on the data…)
ReportingToo much paper reportingTraining needs and lack of user-friendly tools
Expensive BI solutions!
Retail Sector Hype Cycle, 2005, Gartner
Technology Technology TriggerTrigger
Peak of Inflated Peak of Inflated ExpectationsExpectations
Trough of Trough of DisillusionmentDisillusionment
Slope of Slope of EnlightenmentEnlightenment
Plateau of Plateau of ProductivityProductivity
MaturityMaturity
Vis
ibil
ity
Vis
ibil
ity
Acronym KeyAcronym KeyCRMCRM Customer relationship managementCustomer relationship managementRFIDRFID Radio frequency identificationRadio frequency identification
As of July 2004As of July 2004
Collaborative Collaborative PlanningPlanning
Contactless Contactless PaymentsPayments
Corporate and Store Corporate and Store Business IntelligenceBusiness Intelligence
CRMCRM
Electronic Shelf LabelsElectronic Shelf Labels
In-Store WirelessIn-Store WirelessDeployment Deployment
(Customer Facing)(Customer Facing)
Labor Management andLabor Management andScheduling ToolsScheduling Tools
Markdown OptimizationMarkdown Optimization
MerchandisingMerchandising
Merchandising and Category Merchandising and Category Analytics and OptimizationAnalytics and Optimization
Multichannel Multichannel IntegrationIntegration
Price OptimizationPrice Optimization
Retail (Supplier) ExtranetRetail (Supplier) Extranet
Product Content Product Content and Data and Data
ManagementManagement
Promotion OptimizationPromotion Optimization
JAVA based JAVA based Based POS SoftwareBased POS Software
RFID (Case/Pallet)RFID (Case/Pallet)
RFID (Asset)RFID (Asset)
Biometric IdBiometric Id
In-Store In-Store Wireless DeploymentWireless Deployment(Store Operations)(Store Operations)
Mobile Mobile POSPOS
Global Data SynchronizationGlobal Data Synchronization
Digital SignageDigital Signage
Store task Store task ManagementManagement
POSPOS
Integrated Demand Integrated Demand and Replenishment and Replenishment
Planning Planning
KiosksKiosks
Self-CheckoutSelf-Checkout
Less than two yearsLess than two years
Two to five yearsTwo to five years
Five to 10 yearsFive to 10 years
More than 10 yearsMore than 10 years
Key:Key: Time to Plateau Time to Plateau
RFID (Item)RFID (Item)
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 @ 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
Next Gen retail Next Gen retail OS for POSOS for POS
Business Intelligence is Gaining ground!
11%
11%
12%
13%
19%
12%
19%
15%
16%
17%
0% 10% 20% 30% 40%
Cust Data access forAssociates
Market Basket Analytics
Knowledge Mgt
CustomerIntel/Segmentation
Analytics Dashboards
Will start this year Will start within 2 years
Source: 15th Annual Retail Technology Trends Survey conducted by RIS News and Gartner, March 2005
Microsoft Smarter Retail BI proposalWhat: Better manage retail core systems: exploit the data available
Store systems and Supply and demand chain Efficient replenishment, promotions, cross/up sellingOut of stock
How: Agile BI platform and solutionsEmpower retailers at all level with the right tools, devices and solutionsMore real time fact based decision makingFriendly tools, intuitive, innovative and training freeEfficient sharing of KPI
Cost: Best TCO and ROI
Engage: Help Retailers to migrateFrom Oracle/DB2From competitive BI environmentDeploy with our partners
Entreprise Retail applications
Entreprise Retail applications
Smarter Retail Business Intelligence
ReportingReporting
BusinessPerformanceManagement
BusinessPerformanceManagement
Customer Satisfaction
(CRM)
Customer Satisfaction
(CRM)
DW
DW
OLAP
ReportViews
Real time Retailing
Real time Retailing
BPM: BI with Business Scorecard Manager – (Maestro)
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 manager’s particular tasks
Time line
Preview end 2005
RTM in 2006
Microsoft Retail BI ecosystem
Analysis ServicesAnalysis ServicesOLAP & Data MiningOLAP & Data Mining
IntegrationIntegrationServicesServices
ETLETL
SQL ServerSQL ServerRelational EngineRelational Engine
Reporting ServicesReporting Services Man
agem
ent
Man
agem
ent
To
ols
To
ols
Dev
elo
pm
ent
Dev
elo
pm
ent
To
ols
To
ols
MappointBusiness Scorecard Manager
Internet Explorer
Pro*Clarity Outlooksoft MIS AG Panorama Wincord-Nixdorf Retalix...
Business Consultants / SI
175 M$ Inventory savings
Accurate and reliable reporting
Better and real-time visibility
Easy to deploy, to manage, to use
Microsoft® SQL Server™ 2000 for Data warehouse, Analysis Services, Reporting Services, and a dashboard created using Microsoft Visual Studio® .NET
Pro*Clarity for rich reporting
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
“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
Welcome Robert HopkinsCentral Systems development Manager
Dollond & Aitchison
Microsoft EMEA Retail Technology Conference 2005November 2/3
Presented by:Robert HopkinsCentral Systems Development Manager
The Importance of Business Intelligence
D&A the Opticians
Considerations when adopting new technology - ProClarity
Outline of selected solution – ProClarity
D&A’s experience of deploying ProClarity
The benefits of Business Intelligence
Long-term impacts for our business
D&A the Opticians
Established 255 years ago, D&A 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
D&A 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"
Considerations when adopting a new technology - ProClarity
How would users adopt, and adapt to, new technology?
Interfaces with existing systems?
Offer D&A competitive advantage?
Enable simpler / more effective information dissemination?
Capable of addressing multiple business issues?
Skills, quality and trustworthiness of development partner
Cost & ROI
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
D&A’s 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
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)
Margin Analysis
1 * 10 * 12
£ report
0 * 12 * 365
£ analyse
Paperless Margin Pack
New Weekly KPI’s
Store-level insight
Enable pricing strategies
Margin Analysis – Decomposition Tree
ProClarity Dashboard
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 …
"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"
How fit is D&A?
"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"
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
Smarter Retail BI: Wrap-up and call to actions
Best BI platform and solutions forReportingBusiness Performance Management Integration of many legacy systems : Retail entreprise app.Real-time analysisCustomer satisfaction (CRM)
Customer and partnersLearn more on our Retail BI initiatives: www.microsoft.com/industry/retailTrainings: don’t miss them https://training.partner.microsoft.com/plc Try SQL2005, Microsoft Business Score Card Manager NOW!
EBC/MTC : we want to help youSQL2005, BI specific tracks tomorrow, don’t miss them!!!
Contact me for more informationSandana Kichenane, +33 1 70 99 10 94, [email protected]