Retail Business Intelligence

How to increase profit through store benchmarking Øyvind Stige, CEO at September BI

Retail Business Intelligence

Store reporting alternatives

Typical BI challenges

How to increase profit

Examples from successful retailers

What’s in it – ROI

Summary

Solution overview & Company

Intro

Alternative store reporting

• Journal printing at Cash-register or POS A

• POS or back-office reports

• HQ BI B

• BI for all – benchmarking and performance monitoring C

Typical store and HQ reporting without a BI solution

At the HQ

• Each system source for reports

• Manual operation to consolidate

• Vertical perspective – “silo based”

In the store

• Sales reports on POS or back-office

• Limited drill to details

• Different reports on different areas

This means

• Limited insight and overview

• Manual work creating reports

• Lack of benchmarking and analytic capabilities ERP, POS HQ, Time&Attendance, etc.

Typical store and HQ reporting with a HQ BI solution

At the HQ • Consolidated data • Analytical capabilities • Produce store reports “semi manual” • Reports to store by email

In the store • Read reports from HQ

– PDF, Excel, PPT

• Limited drill to details

• No benchmarking This means • Manual work creating reports • The same message to all stores • Limited insight and engagement

• Lack of benchmarking and analytic capabilities Is fixed PDF and Excel reports enough?

ERP, POS HQ,

Time&Attendance, etc.

BI solution

HQ user

InStore BI

At the HQ

• Consolidated data

• Analytical capabilities

In the store

• Dashboard with selected KPI’s

• Drill to details

• Benchmarking

This means

• Better insights

• Better decisions

• Better sales and profit

ERP, POS HQ,

Time&Attendance, etc.

BI solution

All Store Managers + HQ

Challenges: Typical BI vendor approach

Typical BI solutions are designed for HQ users

• “Self service analytics..”

• “Drag & drop…”

• “Create your own dashboard…”

• “Add new sources on the fly…”

Outstanding for a business controller

- but what about a busy store manager?

- Skills?

- Time to invest?

How to increase profit?

Measuring and monitoring is

needed

– every day – in every store!

Just a few selected KPI’s

Small steps and changes in the daily business - in each store

- will create growth in profit for the hole chain

How to increase profit?

The question

What is good performance?

To be better than yesterday,

last month or last year?

Is that good enough?

Benchmarking

Benchmarking the industry, segment or

competitors?

Most powerful benchmarking – internal

Why?

Growing business and success….

Growing business

People is key to make it happen!

How to increase profit?

Benchmarking against the 20% best

Awake the spirit and competitive drive

Daily reminder of the potential

Store performance against the best

Ranking of KPI’s they can influence

Best practice

GAP analysis - show potential

“What if….”

Lets see examples from

Scandinavian retailers

Lets see some examples from Scandinavian retailers - store dashboard

Ranking selected KPI

Sales today versus

budget/goal

Date-picker and Filtering

Sales; week and month

Monitoring selected KPI’s – drill to benchmark reports

ranking the best

Score Store

performance competition

19

Sales per customer

Best performers

Lets see some examples from Scandinavian retailers - store dashboard

Ranked stores – by growth

Result for own store and

change against same period

last year

Sales today

Lets see some examples from Scandinavian retailers - store dashboard

Sales needed to reach

target

Predicted status for day total

Update every 15 minutes

Lets see some examples from Scandinavian retailers - store dashboard

19

Daily update of total

score

Selected criteria's

Examples: Campaigns sales

KPI score Mystery Shopper

Customer Satisfaction survey

Loyalty card share

Etc..

Your results

Lets see some examples from Scandinavian retailers - store dashboard

Ranking selected KPI Own score vs. the best

Sales competition, ranked result

selected Item/SKU

Sales; today, yesterday, week and

month

Score “Store Olympics” –

selected criteria's

Finding out what to do…

Easy access to details is a must

“Why…”

“What to do…”

one click away

Examples from pre-defined

analytics for the store

manager

Finding out what to do…

Chains 3rd best

item ranked 194 in

my store?

Potential!!

My store vs.

Parent level in

store hierarchy

(region,

country etc.)

Finding out what to do…

Rank of all items in

category

Category analysis Sort by: Net Sales Amount

Accumulated total

Accumulated value

Finding out what to do…

Category analysis

Sort by: Net Sales Amount

30 best items create 50% of the value

Category total

475 items

102 items create 80% of the value

Just a few examples of pre-defined analysis

Drill from dashboard

Experience from successful chains

Cowering minimum 80% from basic offering

Freedom to customize

Freedom to use Excel Pivot for ad-hoc analysis at HQ

?

Small changes can make the difference

Lets play with figures and pretend we run a business called

“The Retailer”

Key figures; Net sales = EUR 10 million

Customers = 500 000

Sales per customer = EUR 20

Gross margin products = 30%

Salary cost / sales = 15%

“The Retailer” starts with a store dashboard with benchmarking

Launch a internal campaign with competition to rise Sales per

customer Focus in training and sales meetings

Launch of a “additional sales” product

Monthly winners

What if – simulation ..

What if?

• What if every 10th customer buy the

“additional campaign product” priced

EUR 2?

or

• What if Sales per customer increases 50

cent

This is easy to play with figures ….

– our experience is that retailers make it happen!

IN

TEGRAT IO

N

Staging DWH

Ad-hoc analysis Excel Pivot - PowerPivot

Dynamics NAV

POS data Cube

SQL Server 2008R2/12/14

Solution overview – what we offer

Well proven Microsoft BI solution

Dynamics NAV as source

A lot of pre-defined business logic and WEB content

WEB dashboard &

reports

Microsoft Excel

– ad-hoc

Microsoft SSAS - cubes

Microsoft SQL Server - DWH

Solution stack and complexity vs. number of users

On premise or Azure cloud hosting

Stores & HQ

# of

users

Business Controllers

HQ analystics

IT dep.

Consultance

low

high

complexity

high

low

What can we offer

New Vision and September BI are partners

Focus on InStore BI

Our mission

Enable retailers to implement

Secure value and ROI for our customers

Summary

Our solution enables you to

Share dashboards – updated, fresh and inspiring

Benchmarking and motivation from potential

Drill to pre-defined analysis – “Why and how…”

All kind of sales reports, from category to products and

details

Excel ad-hoc analysis for super users

A taste of how successful Scandinavian retailers

work with BI

Background & company

+ 20 years experience from POS, ERP and BI solutions in the

Scandinavian market

Customers:

Retail Business Intelligence – InStore

We are a BI company with 100% retail focus

Most BI solutions focus on analytics and “self service BI”

for a few business controllers

We believe in “BI for all” and our solutions are designed

for “InStore BI“

Thank you!

os@septemberbi.no