It's not uncommon for retailers to invest in BusinessIntelligence (BI) and Corporate Performance Management (CPM) software, only tobe bitterly disappointed. These tools are purchased in the belief that they canbe used by end-users, independently, to gain timely and efficient access todata. The reality is that they are often no more than raw components that bringwith them an IT overhead of programming, integration and support.


Here, Nigel Illingworth, Retail Assist's Product Directorfor the Merret supply chain solution and Dominic Policella, Managing Directorof BOARD, challenge the current BI paradigm, advocate the 'retail-ready'approach, and suggest ways of getting maximum benefit from BI and CPM tools.


Look for integration


Many BI systems are sold as toolsets, comprising disparatemodules such as budgeting, reporting and dashboard, on the promise that thecreated model will be just right for the business requirements. In reality,these modules-often the result of company and product acquisitions-can comewith huge integration issues, long project timescales, high costs and littleflexibility to support change. So, retailers should look to have everything inone integrated environment.


Ease of use is critical


"Most BI platforms are difficult to use, technical andinflexible," says Nigel Illingworth. "As a result, they are oftenkept in the hands of a small number of power users and technicians rather thanthe wider business community who should be their consumers and beneficiaries."


A BI tool needs to be intuitive to use, and to provide fastand accurate answers to organisations that are starved of information. This iswhere programming-free environments come into their own, offering rapidfamiliarity to end-users and enabling them to operate independently.


If the solution is modular, it may take some time to modeldata and craft reports. The best approach is to buy a system that comes withexisting reports 'out of the box', tailored to the retail industry. Even if notprecisely what you require, this will facilitate much faster report creationand deliver faster business benefit.


Retail-ready intelligence


Nigel Illingworth observes: "BI tools are very valuableto a fast-moving industry sector such as retail, where it's necessary to lookconstantly at how the business is performing, monitor the effects of salescampaigns, benchmark market penetration and measure store and productprofitability. A generic tool is simply not up to the job, so retailers shouldlook for BI systems that come with the appropriate retail 'wrapper' that bothdelivers standard, retail-ready reports and offers easy customisation."


Focus on KPIs and exceptions


It's important to differentiate data that you need forinformation purposes only from data that can be used to make a difference andinstigate change. Use of BI should be driven by key performance indicators(KPIs), with emphasis put on highlighting exceptions. KPI thresholds should beeasy to define and display, with graphical representations such as gauges,traffic lights, colour coding and maps. At the same time as revealing the bigpicture, BI tools need to drill down to pockets of problem performance. Anexample would be to look at stores that aren't performing, then to drill downto the lack-lustre products within those stores.


One version of the truth


"BI can represent a single, audited source ofinformation, one version of the truth and, as such, is critical to abusiness," explains Dominic Policella. It should support both analyticaland real-time data and deliver a 'scorecard' encompassing different areas ofthe business, (Financial, Operational, Sales, Customer). It should also be ableto alert users when certain business criteria have been hit, notifying them bye-mail or text message, without the need to be connected to the system.

 

Looking back, looking forward


It's important too that BI doesn't just reveal historical information, but also integrates and manages the Budgeting, Planning and Forecast data needed to drive the business forward. The best BI and CPM tools enable users to model and adjust against plan. In a competitive market such as retail, accurate planning can make a huge difference to profitability. For example, retailers can look to BI to run 'cost to serve' models and work on integrated sales and operational planning to create value and savings across the supply chain.


Pitfalls and disappointment


Trying to do too much too quickly is a common source of disappointed. This is why an integrated tool that supports all areas of BI and CPM is important. Concludes Dominic Policella: "Many projects just don't achieve the results anticipated, often due to the complexity of the system, and so users give up and revert to spreadsheets. BI systems should be simple and rapidly deliver results to the business community. It's also important to be able to easily integrate new sources of information and to change BI models as user requirements evolve."


Cardinal rules


In summary, the cardinal rules for getting the best out of a BI system are:

  • Invest in a 'retail-ready' product which will get you up and running straightway
  • Make sure that business users are involved in the tool selection as well as in defining requirements, and have continual input
  • Look for flexibility. Your chosen system should be able to rapidly support changing business requirements
  • Home in on tools that are fast and easy to use
  • Select an integrated tool, not a mixture of modules from the same vendor which may cause integration issues down the line when the initial scope needs to be extended
  • Make sure the system can support budgeting/planning/forecasting as well as performing historical analysis.


Merret is a complete supply chain ERP solution, widely used in retail. Users can opt for an integrated BI and CPM module that is powered by specialist technology from BOARD, or purchase Merret BI & CPM as a standalone solution.


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