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Boon To Competitive Agility For Retailers
 

Boon To Competitive Agility For Retailers

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    Boon To Competitive Agility For Retailers Boon To Competitive Agility For Retailers Presentation Transcript

    • Boon to Competitive Agility for Retailers   Keith Yue Business Development Manager ICON Business Systems Limited
    • Agenda
      • Business Intelligence Focus
      Microsoft BI Focus Customer Benefits from BI Office Solution Accelerator – Excel Add-in
    • BI Adoption Focus A Retail Chain Story
      • Corporate Consideration
        • Core Business
          • Retail – mid-market to economical
          • Manufacturing
          • Franchise
        • Geographical Coverage
          • Hong Kong – 18 Outlets
    • BI Adoption Focus
      • Business Level Consideration
        • Brand Positioning – Three Distinct brands for maximum market penetration
          • A leading designer label for both men & ladies high fashion
          • High fashion for modern professionals and executives
          • A collection line for youth
    • BI Adoption Focus
      • Business Level Consideration
        • Point-of-Sales Operation
          • Market Segmentation – Demographic and Behavioral
          • Target on young working adults
          • Competition by high quality/price performance
          • Impact on volume (no of transactions), velocity (frequency on specific time), and value (dollar $)
          • Edge – Unique Design with Limited quantity
    • BI Adoption Focus
      • Marketing Consideration
        • Customer Relationship Management
          • V.I.P. Program
        • Integrated Marketing Communications
          • Sales Promotion with HSBC Credit Card
          • Internet Marketing
          • Product Mix – Stylish and fashionable clothing, belt, accessories and shoes
          • Pricing Strategy – competitive pricing
    • Merging Transaction with Business Analytics Business Intelligence Strategic Focus Customize Data Model Explore Transaction Data Customize Retail Accelerator Build Key Performance Indicators Customize User Perspective Load and Process Data Select User Groups Fine-tuning Execute
    • BI Adoption Focus
    • BI Selection Focus Integrated RDBMS, ETL, OLAP and Management tools Open Data Access APIs, Data Source Connectivity Low Total Cost of Ownership, Easy Customization Competitive Agility Comprehensive Interoperability Time to Market Launch Strategic Focus
    • Strategic Impact = Integration X No. of Users X Complexity
      • Integration with Point-of-Sales and Manufacturing Systems
      • Customized for Senior Management
      • Complex Internal retail operation assessment dimensions
    • BI Technology
    • MICROSOFT COMPREHENSIVE OFFERING SOURCE SYSTEMS (LEGACY) EXTRACTION TRANSFORM LOAD PRESENTATION / OLAP Data Warehouse or Data Mart (dimensional, subject oriented) and Operational Data Store END USER ACCESS AND ANALYSIS DATA WAREHOUSE AND / OR DATA MARTS Ad-hoc Query Tools Reporting Custom Apps Analytical Apps Web Services and Mobile Apps DTS OLEDB DTS SQL Server Oracle IBM OLAP including HOLAP, ROLAP, MOLAP query services; may store atomic data; may be frequently refreshed Data Mining Models forecasting; clustering; scoring OLE DB XML/A OLE DB XML/A Excel / MSDA / Sharepoint / IE Third Party (DWA Q&R) Visual Studio Data Warehousing Alliance Visual Studio OLAP including HOLAP, ROLAP, MOLAP query services; may store atomic data; may be frequently refreshed Data Mining Models forecasting; clustering; scoring SQL Server Analysis Services (OLAP) SQL Server Analysis Services (Data Mining) SQL Server DTS DTS / HIS DTS
    • Selection of Microsoft BI
      • Sophisticated Backend - SQL Server 2000
        • Complete platform with scalable RDBMS, including:
          • Data Transformation Services
          • Analysis Services (OLAP and Data Mining)
          • Metadata Services
          • English Query
      • User-friendly Front-end
        • Excel – built-in PivotTable Service
        • Web components for custom development
        • SharePoint
      • Value Option: Microsoft Data Analyzer
    • Customer Benefits from Microsoft BI
      • S upply Chain Optimization
      • Customized KPI Formulation
      • Integration with other Information Systems
      • Competitive Agility on market opportunities
    • Competitive Strategy Product Development Strategy Information Technology Strategy Finance Strategy Human Resources Strategy Supply-Chain Strategy -Manufacturing -Inventory -Lead-time -Purchasing -Transportation Sales & Marketing Strategy
    • Zone of Strategic Fit Certain Demand Uncertain Demand Implied Uncertainty Spectrum Responsive Supply Chain Efficient Supply Chain Responsiveness Spectrum Supply Chain Optimization
      • Supply Chain Optimization
      • product or supply moving from supplier to manufacturers to distributors to retailers to customers with information and fund flow along both directions.
    •  
    • Cost Reduction Infrastructure Collaboration Strategic contribution Supply chain Org Demand Driven Capability Building Execution of basic tasks Supplier Reduction Negotiations Mostly forecast driven Qualitty System Outsourcing Supplier Ratings Lead-time reduction JIT/pull arrangement Root cause analysis Item stratification Optimal buys Inter-company improvement Financial sharing arrangements Customer-focused along supply chain Design Changes Postponement strategies Information Exchange Segment Strategies New Product involvement 80-90% demand-driven Supply Chain Systems Basic Capabilities Data timeliness & accuracy Procurement systems Mature Technology deployment (ERP, EDI, forecast tools) Stratified forecasting and inventory practices Web-based technology for information exchange Partner System integration Customized transaction and planning tools Integrated with supply Chain operations Stages of Supply Chain Evolution
    • Cost Reduction Infrastructure Collaboration Strategic contribution Challenges in Stages of Supply Chain Evolution People, Skills, Discipline, Time System support, Knowledge Inertia, Unwillingness to Change partner And their roles Procurement Paradigms, Willingness And/or ability To be creative Barriers between Operations, Engineering & Marketing; Coordination Difficulties; Weak links in chain; Amenability of Supply chain for collaboration
    • Demand-driven Supply Chain Forecast Demand manager persuing forecast. Review by exception Reorder Point & Forecast Order pre-determined batch quantity Order: Manufacturer warehouse replenishment Demand-driven Automatic system. Buyer reviews by exception Recorder Point set in system by line item Reorder pre-determined batch quantity Order: Chain distribution replenishment Demand-driven Automatic. Set by chain system Point of sale system data Refill stock to target levels Order: Store level replenishment Forecast or Demand-driven Responsibility Basis of Decision Decision required Step Retail Chain Distributor
      • Customized Key Performance Indicators
      • Inventory-oriented KPIs
          • Intra store transfer
          • Sensitivity to Sales Promotion
          • Inventory turnover cycle
          • Mark-down Sales
          • Store/location Performance
      • Sales Promotion-oriented KPIs
          • Redemption Pattern
          • Product replenishment Cycle
          • Generation of new VIPs
          • Patronage of existing V.I.P.
          • Impact on Velocity, volume and value (3Vs)
      • Customized Key Performance Indicators
        • VIP-oriented KPIs
          • Brand/Product Category Sales
          • Recency/Frequency/Monetary (RFM)
          • Repurchase pattern
          • Cross-selling & Up-selling association
          • Inter-store service request
          • Coupon Redemption and Usage
        • Product-oriented KPIs
          • Brand/Category/Item performance (3Vs)
          • Product replenishment Cycle
          • Purchase Frequency/Seasonality
    • Top-down Benefits from BI
      • Understand Sales Trends
      • Improve Forecasting accuracy
      • Improve Promotional Effectiveness
      • Heightened customer relationship management
      • Generate awareness on inventory flow
      • Promote inter-store operational efficiency
      • Competitive Agility to Market Opportunities
      • Expanding Market in China
      • - GDP Growth: 2001 2002 2003
      • 7.3% 8% 9.1%
      • -Urban per Capita Income (RMB)
      • 2001: 6,860 8.5% Growth
      • 2002: 7,703 13.4% Growth
      • 2003: 8,473 9% Growth
      • -Consumer Goods Retails Sales (RMB bn)
      • 2001: 3,759.5 9.9% Growth
      • 2002: 4,091.1 8.8% Growth
      • 2003: 4,584.2 9.1% Growth
      • Closer Economic Partnership Agreement
      • - First Mover Advantage
      • - Trade Creation Effect
      • - Opportunities in Trade in Goods
      • Zero import tariff to 374 products of HK origin
      • 18 Services sectors easier access
      • CEPA: Distribution Services
      Existing Regulations Under CEPA Turnover is reduced to not less than US30 million ; asset value to US10 Million; Min capital at RMB50 million JV for wholesale, JV foreign partner sales turnover > US$2.5 billion ; Asset value > US300 Million; Min. capital requirement of JV is RMB80 million Registered capital reduced to RMB20 million ; JV partner US$10 million trading values JV for trading, registered capital is RMB50 million ; JV foreign partner trading value with China > US$30 million Permitted wholesale trade services on a wholly-owned basis; No geographic restriction Only JV trading and wholesaling companies are allowed; Restricted in Beijing, Shanghai, Tianjin & Chongqing
      • CEPA: Retail Trade Services
      Existing Regulations Under CEPA Turnover is reduced to not less than US100 million ; asset value to US10 Million; Min capital at RMB10 million JV for wholesale, JV foreign partner sales turnover > US$2 billion ; Asset value > US200 Million; Min. capital requirement of JV is RMB50 million Car sales retail (up to 30 outlets) permitted; Allowed wholly-owned franchising Minority shareholding in chain stores (over 30 outlets) selling single brand/category; Restriction on car sale; Legal entities with trademark etc act as franchisers. Permitted to establish wholly-owned ones; allowed at prefectural level, and cities at county level in Guangdong province; HK resident allows set up own stores in GD. Only JV retail enterprises are allowed; only in capital cities of provinces and autonomous regions, centrally administered municipalities
      • Pan Pearl River Delta Regional Cooperation
        • Unified Market
        • Nine provinces (Fujian, Jiangxi, Hunan, Guangdong, Guangxi, Hainan, Sichuan, Guizhou and Yunnan) and two Special Administrative Regions (Hong Kong and Macao)
        • Population: 450 Million
        • GDP 2003: US$630 Billion (40% of China’s GDP)
        • Forecast: 2010 – US$1,000 Billion
        • 2020 – US$2,000 Billion
    • Office Solution Accelerator – Excel Add-in for SQL Analysis Services
      • Benefits
      • Real-time visibility into business trends
      • Increased speed and quality of decision making
      • Streamlined data analysis shortening reporting cycles and saving resources
      • Increased reporting flexibility through rich, highly customized and refreshable reports
      • Access to relevant information from multiple data sources
      • Office Solution Accelerator – Excel Add-in for SQL Analysis Services
      • Key Features
      • Create and maintain live data connections to Multiple OLAP cubes
      • - ensure data consistency and Integrity
      • - combine data from multiple sources
      • Office Solution Accelerator – Excel Add-in for SQL Analysis Services
      • Key Features
      • Conduct detailed analysis using native Excel capabilities, through “What if” and drill through capabilities
      • Office Solution Accelerator – Excel Add-in for SQL Analysis Services
      • Key Features
      • Personalize and refresh report layouts, reducing training costs and reliance on IT
      • Office Solution Accelerator – Excel Add-in for SQL Analysis Services
      • Key Features
      • Personalize and refresh report layouts
      • Office Solution Accelerator – Excel Add-in for SQL Analysis Services
      • Key Features
      • Personalize and refresh report layouts
      • Office Solution Accelerator – Excel Add-in for SQL Analysis Services
      • Key Features
      • Perform free-form and semi-structured reporting
    • More information: http://www.microsoft.com/office/solutions/accelerators
    • Microsoft ® Solutions Day
    • Message Code for Track D Office Solution Accelerator
    • Today’s Activities Preview:
      • Fill in the evaluation form and redeem the souvenir at the redemption counter outside Room 601
      • Visit Intel Wireless Experience Zone and partner exhibitions
      • - Fill in the best solution after you’ve visited the Partner’s Solutions booth, you will have a chance to win a prize of Grand Prix ticket.
      • All Presentations Power Point will be ready to download on July 21. http://www.microsoft.com/hk/office/solutionsday/agenda.mspx
    • © 2004 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.