Evolution of Business Intelligence & Creating Customer Value
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1 Evolution of Business Intelligence & Creating Customer Value
2 94 1st store opened under SEIYU in Bugis Junction, Singapore Seiyu Ltd (Japan) bought over remaining shares Renamed to Seiyu (Singapore) Private Limited 3rd Store opened in Junction 8 Shopping Centre, Bishan th Store opened in The Clementi Mall, Clementi 2nd store opened in Lot One Shopping Mall, Choa Chu Kang Becomes member of Beijing Hualian Group Seiyu (Singapore) Pte Ltd renamed as BHG (Singapore) Pte. Ltd. Established as Seiyu-Wing On Department Store 4th store opened under BHG in Century Square, Tampines th Store opened in The Seletar Mall, SengKang
3 BHG Bugis Junction BHG Bishan BHG Seletar BHG Choa Chu Kang BHG Tampines BHG Clementi Mall
4 SINGAPORE Store Locations
5 The Beginnings of Business Intelligence at BHG Singapore
6 How much is my sales today and yesterday? Am I ahead or behind my budget? How are my products doing on a daily basis? Are my vendors products doing well?
7 How can I cater to all the users requests? What data shall I prepare? I do not understand all the ad-hoc requests
8 BUSINESS INTELLIGENCE TOOLS Selection 98 Started looking for a automated reporting solution 99 Put 4 vendors on Proof of Concept. Automate weekly reports that had been produced manually (re-entering AS/400 data to Excel Spreadsheet) Main Criteria for Selection: Transformation of 3 calendars Financial Calendar, Merchandising Calendar*, Real World Calendar *Retailers use weekly calendars to form periods (4-4-5 week combination) in order to compare same day of week and periods Centralised Metadata Ability to take data from AS/400 and other sources Responsiveness and Ease of Use
9 CALENDARS TRANSFORMATION weeks 4 weeks 5 weeks December November January December
10 CALENDARS TRANSFORMATION Period to Date Year to Date 1 Week To Date 2 Month to Date Year to Date 3 Month to Date Year to Date
11 DATABASE TO CLIENT CONNECTIVITY Intermediate Database DB2 IBM AS/400 JDA MMS
12 + - STRENGTHS Calendar Transformation Able to take in from divergent sources of data Centralised metadata layer ease of development/ maintenance Response time of report generation WEAKNESS No local office in Singapore/ reliant on vendor support (Malaysia) Absence of training availability (trial and error)
13 Track store performance by day and performance vs previous year
14 Track store performance by day, month and location within store
15 DESIGN PRINCIPLES
16 SIMPLICITY OF MEASUREMENT TECHNICAL Single Data Warehouse to stage the data (due to lack of manpower) Choice of DB2 EXAMPLE B EXAMPLE A BUSINESS Principle of the 3: Simplicity, Minimalist - Sales Turnover - Gross Profit $Margin % - Inventory - Dept Efficiency/ Productivity (Sales/Per Sq Ft) - Vendor Performance (Sales/Per Sq Ft) - Inventory Turns (GMROI) by Category
17 BALANCE OF PRIORITIES < /> TECHNICAL vs $ BUSINESS
18 MAIN GOALS Data Quality Timeliness Single Version of Truth
19 SCOPE E-suite business users Sales and Profit Mid-level managers Sales and Merchandising Line staff Sales
20 IMPLEMENTATION Extracting data (how design) Legacy DB to staging area Specific design based on end result Transform data Uses Microstrategy transformation tables
21 TEAM ARCHITECT ERP MANAGE USERS DEVELOPER
22 2015 Fast Forward >>
23 01 03 Change in Business needs From product centric to customer centric Need to understand customers better Intense Competition need to differentiate products & services
24 05 07 Scope of Business Intelligence Project Customer Segmentation Customer Profitability Customer Loyalty
25 CRM ARCHITECTURE Analytical CRM Operational CRM AS/400 MMS
26 UNDERSTAND GAPS IN NEEDS FULFILLMENT GAP ANALYSIS WE CUSTOMERS
27 CRM Entity Relationship Diagram
28 2015 Loyalty Member Contribution
29 2015 Loyalty Member Performance by Department
30 2015 Loyalty Member Sales by Event, Demographics
31 2015 Loyalty Member vs Non-member by sales event
32 2015 Loyalty Member Sales by Income Group
33 2015 Loyalty Member vs Non-Member
34 2015 Loyalty Member vs Non-Member
35 Next Phase: Market Basket Analysis
36 Who are our customers?
37 What are the products they prefer?
38 What are the products they buy together?
39 By season By location
40 Plan marketing campaigns
41 Buying Patterns Plan category buying
42 Plan & manage inventory based on purchase patterns
43 Next Phase Market Basket Analysis (Work in Progress)
44 Looking forward to the future Competitive landscape Targeting the right group of customers Customer centric BI Limited Resources Enabling staff BI enabled smart devices that improve work productivity (replenishment, product placements, vendor and product selection) To be embedded into the company s processes Automating work processes using smart analytics
45 Looking forward to the future Embedding BI into work process
46 Acknowledgements - Special thanks to Ms Jeanette Lau, Dezainwerkz.com For the help in providing the design for this presentation Mr Arun Ragothaman, Microstrategy Singapore For checking my contents and giving inputs Mr Duncan Wu, (ex-colleague, currently in San Jose, USA) For providing historical inputs and all the technical verification My current colleagues at BHG Singapore For patiently answering my questions Freepik.com for infographic graphics Pexel.com for stock images TheNounProject.com for icon graphics
47 Thank you
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