how to increase profit through store benchmarking
DESCRIPTION
Øyvind Stige, CEO at September BITRANSCRIPT
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!