Business Intelligence

2. Business Intelligence Sandana Kichenane Microsoft EMEA EMEA RETAIL INDUSTRY MANAGER sandanak@microsoft.com

3. Agenda Retailers BI needs Market Analysis Smarter Retail Business Intelligence Listen to the customer: Robert Hopkins of Dollond & Aitchison Call to actions, resources Q&A

4. Retailers pains Static systems No enough vertical expertise, solutions! Difficult to create, query and share new KPI Not end user friendly, need IT Batch process oriented Sharing the information No easy collaboration, no flexible role/security settings Too many manual process Data Quality (out dated information, lack of faith on the data…) Reporting Too much paper reporting Training needs and lack of user-friendly tools Expensive BI solutions!

5. Retail Sector Hype Cycle, 2005, Gartner

6. Business Intelligence is Gaining ground!

7. Microsoft Smarter Retail BI proposal What: Better manage retail core systems: exploit the data available Store systems and Supply and demand chain Efficient replenishment, promotions, cross/up selling Out of stock How: Agile BI platform and solutions Empower retailers at all level with the right tools, devices and solutions More real time fact based decision making Friendly tools, intuitive, innovative and training free Efficient sharing of KPI Cost: Best TCO and ROI Engage: Help Retailers to migrate From Oracle/DB2 From competitive BI environment Deploy with our partners BI Client part of the IW business value. Excel/Office components brings integrated value to the BI scenario Better manage the scm: ex of wal*mart flag BI story Efficient replenishment : no OOS BI Client part of the IW business value. Excel/Office components brings integrated value to the BI scenario Better manage the scm: ex of wal*mart flag BI story Efficient replenishment : no OOS

8. Smarter Retail Business Intelligence When you’re in front of your customer, think of these scenarios: Do they have any need in real time data analysis need (Fraud detection, best customer, notification need)? Do they need to provide better information to their store staff? Crm For each scenario, provide: Keypoints/collaterals Compelling events for target people, address the pain points When you’re in front of your customer, think of these scenarios: Do they have any need in real time data analysis need (Fraud detection, best customer, notification need)? Do they need to provide better information to their store staff? Crm For each scenario, provide: Keypoints/collaterals Compelling events for target people, address the pain points

10. 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

11. Microsoft Retail BI ecosystem

13. Welcome Robert HopkinsCentral Systems development Manager Dollond & Aitchison

14. Good afternoon. For the next 25 minutes I will describe how the retail organisation I work for has used Business Intelligence technology from Microsoft and ProClarity; <CLICK TO NEXT SLIDE> I will explain why we use Business Intelligence, how we use Business Intelligence and the many benefits we have realised from using BI technologies ... I am aware that SQL Server 2005 launched next week, but this presentation will cover only our current experienceGood afternoon. For the next 25 minutes I will describe how the retail organisation I work for has used Business Intelligence technology from Microsoft and ProClarity; <CLICK TO NEXT SLIDE> I will explain why we use Business Intelligence, how we use Business Intelligence and the many benefits we have realised from using BI technologies ... I am aware that SQL Server 2005 launched next week, but this presentation will cover only our current experience

15. 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 So, these are the items I will be discussing. Firstly, D&A; who we are, what we do. Secondly …So, these are the items I will be discussing. Firstly, D&A; who we are, what we do. Secondly …

16. 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 2nd oldest retail company in country, founded in 1750 140 (37%) Franchise; 233 (63%) Group owned Specsavers, Boots, Vision Express Very competitive marketplace, so any advantage will do Differentiated by quality, FFS First for Service First to market with CLBP proposition, styleeyes and computereyes, exclusive supplier of nikon lenses? DeRigo manufacture Lozza, Police, Fila, Sting, Givenchy 2nd oldest retail company in country, founded in 1750 140 (37%) Franchise; 233 (63%) Group owned Specsavers, Boots, Vision Express Very competitive marketplace, so any advantage will do Differentiated by quality, FFS First for Service First to market with CLBP proposition, styleeyes and computereyes, exclusive supplier of nikon lenses? DeRigo manufacture Lozza, Police, Fila, Sting, Givenchy

17. D&A Customers You’ll notice that in both of these pictures, Dickens and Darwin are wearing contact lenses. Dickens famous for the odd novel, and it is difficult for me at least to think of Christmas without remembering Scrooge. Darwin also wrote some influential literature. <reveal quote> In the ‘Origin of Species’ he proposed that all living things fight for survival, and do so, if successful, at the expense of their rivals. They do this by adapting to their environment. My hypothesis for this presentation is that like living things, retail organisations like mine and yours, need to adapt to our environments, our marketplaces, need to understand our customers, our operations and what makes our KPI’s perform. We need to do this better than our rivals, otherwise they will be fitter where we are weaker; they will succeed where we fail. We gain this understanding, this organisational ‘fitness’ though BI technologiesYou’ll notice that in both of these pictures, Dickens and Darwin are wearing contact lenses. Dickens famous for the odd novel, and it is difficult for me at least to think of Christmas without remembering Scrooge. Darwin also wrote some influential literature. <reveal quote> In the ‘Origin of Species’ he proposed that all living things fight for survival, and do so, if successful, at the expense of their rivals. They do this by adapting to their environment. My hypothesis for this presentation is that like living things, retail organisations like mine and yours, need to adapt to our environments, our marketplaces, need to understand our customers, our operations and what makes our KPI’s perform. We need to do this better than our rivals, otherwise they will be fitter where we are weaker; they will succeed where we fail. We gain this understanding, this organisational ‘fitness’ though BI technologies

18. 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 How easy is it to use? Will it complement existing technologies and ways of working / what are the training and support overheads? Does the technology sit well on chosen DWH / DSS platform -  note improvement in response times of Q&R tool once migrated to SQL Server ProClarity designed with Microsoft / development partner with access to latest Analysis services technology The greater the advantage, the fitter we will be compared to our rivals Particularly to field-based colleagues via browser-based technology Margin analysis, branch accounts, colleague KPI’s, product and customer segmentation Rockport clearly understood our business issues and were able to prove succinctly and with great effectiveness how ProClarity could address our business needs How quickly can it pay for itself – difficult to calculate but with ProClarity we have been able to do thisHow easy is it to use? Will it complement existing technologies and ways of working / what are the training and support overheads? Does the technology sit well on chosen DWH / DSS platform - note improvement in response times of Q&R tool once migrated to SQL Server ProClarity designed with Microsoft / development partner with access to latest Analysis services technology The greater the advantage, the fitter we will be compared to our rivals Particularly to field-based colleagues via browser-based technology Margin analysis, branch accounts, colleague KPI’s, product and customer segmentation Rockport clearly understood our business issues and were able to prove succinctly and with great effectiveness how ProClarity could address our business needs How quickly can it pay for itself – difficult to calculate but with ProClarity we have been able to do this

19. 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 Needed to move BI systems and processes forward, OLAP followed Q&RMoved to SQL server to take advantage of Analysis servicesConsolidated Q&R community over previous 3 years Based on understanding of industry leaders in OLAP applications over Analysis Services (newsgroups, monthly literature, seminars) Rockport were able to understand our business needs and realise them in a very professional demo at our offices with our data in less than 2 weeksIt was clear that Rockport were familiar with the kinds of issues we were facingDemo proved that moving the BI strategy forward by implementing OLAP was the right thing to do, and could be done quickly with instant deliverablesWith OLAP we could drill from group annual sales to individual daily store-level transactions, SKUs, purchase orders etc within a few clicks. Simple intuitive navigation – exactly what we wanted and expected from an OLAP system Above & beyond multidimensional analysis capability, a new much more powerful way to deliver information Once Reporting Services has matured to the point where we feel we can migrate from current Q&R tool to ProClarity/RS based solution we will becauseRS, like AS, ships with SQL Server It will save on licence costs of Q&R tool as most of users will have ProClarity too Support and development on single platform easier & less time consuming Needed to move BI systems and processes forward, OLAP followed Q&RMoved to SQL server to take advantage of Analysis servicesConsolidated Q&R community over previous 3 years Based on understanding of industry leaders in OLAP applications over Analysis Services (newsgroups, monthly literature, seminars) Rockport were able to understand our business needs and realise them in a very professional demo at our offices with our data in less than 2 weeksIt was clear that Rockport were familiar with the kinds of issues we were facingDemo proved that moving the BI strategy forward by implementing OLAP was the right thing to do, and could be done quickly with instant deliverablesWith OLAP we could drill from group annual sales to individual daily store-level transactions, SKUs, purchase orders etc within a few clicks. Simple intuitive navigation – exactly what we wanted and expected from an OLAP system Above & beyond multidimensional analysis capability, a new much more powerful way to deliver information Once Reporting Services has matured to the point where we feel we can migrate from current Q&R tool to ProClarity/RS based solution we will becauseRS, like AS, ships with SQL Server

20. 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 Budgeting and forecasting fell behind dashboard and margin once MIS cube had been delivered to prove concept to wider audience Simple to use Let-down by lack of functionality to alter size and shape of views and KPI sections Rockport Software – quality of development partner ensured good start to project once ProClarity had handed over responsibility for product to them How persuade of benefits of new system to those reluctant to change MIS Intranet Visible & important project went smoothly – cube restrucutre, migrating from test to live environments This is essential – champion at board level who understands immediate and future business benefits – match vision with financial commitment Budgeting and forecasting fell behind dashboard and margin once MIS cube had been delivered to prove concept to wider audience Simple to use Let-down by lack of functionality to alter size and shape of views and KPI sections Rockport Software – quality of development partner ensured good start to project once ProClarity had handed over responsibility for product to them How persuade of benefits of new system to those reluctant to change MIS Intranet Visible & important project went smoothly – cube restrucutre, migrating from test to live environments This is essential – champion at board level who understands immediate and future business benefits – match vision with financial commitment

21. 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) In-built (free-ish) functionality of SQL Server Allow us to support field team better – unprecedented access to dataThey are more productive with better access to much richer and dynamic informationTime saved enables more time to be spent analysing results and challenging teamInformation and knowledge can be shared between field teams Why has disp% fallen, which is best selling SKU, where and why Move from Q&R tool to ProClarity over Reporting and Analysis services KPI Indicators – traffic lights on dashboard Margin reporting took 7.5 days per period – now refreshes in minutes overnight, will be available daily rather than at period end - enable action on informationAutomated process rather than manual – eliminate human errorField teams spend 2 hours each Sunday copying and pasting data from intranetBranch visit page makes field teams instantly more productivesegment product – saves days Branch accounts more secure and quicker to produce reports and analyseBudgeting and forecasting quicker and simpler to do Very rough figures. I am not keen on quoting £ saving as they are not real figures e.g. Sandie won't have her contract moved to a part-time basis due to having 7.5 days less work! Obviously we didn't purchase Proclarity to save money but to improve decision making and access to information in order to drive sales and profit. That is where the main benefit will come from but obviously you wouldn't expect me to quantify that so I won't! Regards Keith To: Keith Dowall/Dollond & Aitchison/GB@Dollond & Aitchison cc: Subject: time and £ savings because of ProClarity implementation Keith, would you mind guesstimating the time and £ saved (or anticipated) each period once we have implemented the following functions with ProClarity. Thanks as ever. project time saved per period £ saved per period Margin analysis & reporting 7.5 days £750 Dashboard (Field teams spend 2 hours each Sunday copying and pasting data from intranet) 5.5 days £550 Branch visit page makes field teams instantly more productive new nil segment product (skus) for analysis 8 days £800 Branch accounts more secure and quicker to produce reports and analyse min 3 days £150 Budgeting and forecasting quicker and simpler to do branch budget saving offset by time spent nil producing plan by branch by day. In-built (free-ish) functionality of SQL Server Allow us to support field team better – unprecedented access to dataThey are more productive with better access to much richer and dynamic informationTime saved enables more time to be spent analysing results and challenging teamInformation and knowledge can be shared between field teams Why has disp% fallen, which is best selling SKU, where and why Move from Q&R tool to ProClarity over Reporting and Analysis services KPI Indicators – traffic lights on dashboard Margin reporting took 7.5 days per period – now refreshes in minutes overnight, will be available daily rather than at period end - enable action on informationAutomated process rather than manual – eliminate human error

22. Margin Analysis 1 * 10 * 12 £ report 0 * 12 * 365 £ analyse Paperless Margin Pack New Weekly KPI’s Store-level insight Enable pricing strategies 1*10*12 = 1 person 10 days per period to produce old margin pack = static report 0*12*365 = (no people) system generated in 12 minutes overnight = analytical cube If we pay an analyst £30pa, then £2,500 per month, £1250 to produce a static report and they aren’t being employed to produce reports, they are paid to analyse and understand the why’s. = £15k per annum saved, plus ? Added value because they are doing what they are paid for Make Margin pack paperless – via dashboard New weekly (not monthly KPIs) Allow detail to be viewed at branch level Pricing strategies based on demonstrable low-level margin detail – enable lens mix and trading-up Excel and MS Access based process. Import data from DWH (distributed DB) 1*10*12 = 1 person 10 days per period to produce old margin pack = static report 0*12*365 = (no people) system generated in 12 minutes overnight = analytical cube If we pay an analyst £30pa, then £2,500 per month, £1250 to produce a static report and they aren’t being employed to produce reports, they are paid to analyse and understand the why’s. = £15k per annum saved, plus ? Added value because they are doing what they are paid for Make Margin pack paperless – via dashboard New weekly (not monthly KPIs) Allow detail to be viewed at branch level Pricing strategies based on demonstrable low-level margin detail – enable lens mix and trading-up Excel and MS Access based process. Import data from DWH (distributed DB)

23. Margin Analysis – Decomposition Tree

24. ProClarity Dashboard

25. 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 … Single interface into single source of business data Collaborative interactive environment, talking same language Field teams can understand branch colleagues performance more readily Automated many processes – OLAP offers instant query results In our experience BI has helped us to achieve and offers Single interface into single source of business data Collaborative interactive environment, talking same language Field teams can understand branch colleagues performance more readily Automated many processes – OLAP offers instant query results In our experience BI has helped us to achieve and offers

26. How fit is D&A? In using BI, D&A has become a fitter organisation, better able to compete with our rivals because we have been able to adapt to our changing environment.In using BI, D&A has become a fitter organisation, better able to compete with our rivals because we have been able to adapt to our changing environment.

27. 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

28. The importance of Business Intelligence Thank you robert.hopkins@danda.co.uk

29. Smarter Retail BI: Wrap-up and call to actions Best BI platform and solutions for Reporting Business Performance Management Integration of many legacy systems : Retail entreprise app. Real-time analysis Customer satisfaction (CRM) Customer and partners Learn more on our Retail BI initiatives: www.microsoft.com/industry/retail Trainings: don’t miss them https://training.partner.microsoft.com/plc Try SQL2005, Microsoft Business Score Card Manager NOW! EBC/MTC : we want to help you SQL2005, BI specific tracks tomorrow, don’t miss them!!! Contact me for more information Sandana Kichenane, +33 1 70 99 10 94, sandanak@microsoft.com