Retail Location Intelligence  Predicting and positioning with location analytics
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Retail Location Intelligence Predicting and positioning with location analytics

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Galigeo enables predictive analytics based on the “where” factor and map-based visualization. Galigeo's Location Intelligence solution reveals relationships, trends, dependencies, and patterns ...

Galigeo enables predictive analytics based on the “where” factor and map-based visualization. Galigeo's Location Intelligence solution reveals relationships, trends, dependencies, and patterns that my have been undetectable in conventional reports. Galigeo improves decision-making and turns your data into powerful, actionable resource that improves predictive models.

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Retail Location Intelligence  Predicting and positioning with location analytics Retail Location Intelligence Predicting and positioning with location analytics Presentation Transcript

  • Predictive Analyticsin Marketing & RetailingsLocation Intelligence: the Benefits of Adding The “Where” Factor to Retail
  • Overview Galigeo Market Partners Clients • Founded in 2001 • SAP Business Objects • 50,000 users • Offices: • IBM Cognos • Selected customers: • New York • Esri • Heineken • Paris • Microsoft • European Commission • Brussels • Navteq • Carrefour • Autodesk • Total The Galigeo Value Proposition – Delivering the “Where” Factor Innovative Directly map multiple Customized location connect to and large- Apply spatial data intelligence enterprise scale toolsets visualization solutions applications datasets & reporting for superior business analytics 2
  • What is Location Intelligence? For Business Users For IT Nature Business of Data Intelligence • Transactional • Operational • Analytical Spatial GIS Geo BI • Aggregated Geospatial Data DB BI Analysis Visualization Non Spatial • GIS • Charts • SOLAP • Graphs • Maps • Plots Non Aggregated Aggregated Level of • Maps Aggregation Location (Source: Université Laval) Intelligence
  • Making Location Intelligencesuccessful in an organization Pro-analytics culture Build the infrastructure Deploy technology widely 46% of “very effective” companies use simulations and 71% of “very scenario effective” development companies employ forecasting tools 72% of “very effective” companies Easy to access data use business reporting, KPI’s and dashboards Practice strong data Test and learn governance Source: Bloomberg Businessweek Research Services , May 2011
  • 3 best practices to de-riskthe implementation of Location Intelligence1. Proof of Value (Concept) Approach B. Preliminary C. Install Galigeo E. Summarize Value A. PoV Definition D. Run PoV Internal Assessment PoV Sandbox Outcomes Estimated Timeframe 1 Day 1-2 Days 1-2 Days 1-3 Weeks 1-2 Days Key Activities • Determine Proof of • Identify data sources • Build data mart (if • Run PoV • Organize results Value objectives and access rights required)  Brief discovery phase • Develop and run • Develop Read-Out • Identify specific Use • Determine need for • ETL Data (if required) reports to support and Executive Case for testing configuration changes identified Use Case Presentation to Galigeo data • Load Galigeo software • Determine target data, connectors on servers report outputs and user group • Determine any ETL • Load GIS software on requirements server • Identify macro-level  Learning via a “demonstration environment” business processes • Validate the ability to • Stabilize and perform impacted access and use the pre-launch tests desired data • Connect to BI data • Develop PoV evaluation criteria sources Key • PoV Objectives • PoV Go/No Go • Stabilized Galigeo • Reports/Map Views & • Presentation to Deliverables decision and sign-off PoV solution Location Analysis Managers PoV Evaluation  Assess software to meet the company’s objectives • Criteria • PoV Launch sign-off • Evaluation Use Case • Presentation to and PoV Objectives Executive Committee2 . Report Design Project Prepare Plan Design Develop Deploy  For high priority reports identify data sources, SOR’s, A • Finalize contracts and SOW • Translate • Facilitate a user visioning session • Identify Use Case • Map the desired use cases & processes • Build the reports based on design and BI sources • Train Galigeo administrator on the LI platform priorities into the and reports • Design the • Review outputs • Launch initial query & report structures key performance indicators • Locate and assess all BI data • Define high level requirements • Determine target standard report structures and parameters • Define the report with user groups and validate • Build standard visualization standard reports and visualization layers • Finalize resource data, report  Determine value-added Location Intelligence visualization sources user group(s) and formats requirements outputs and user delivery options • Confirm GIS group Source • Determine report • Identify impacted schedule/delivery processes requirements elements B • Technical Consultant • Sales Executive • Business Consultant • Technical • Business Consultant • Technical • Business Consultant • Technical • Business Consultant • Technical Consultant Consultant Consultant Consultant • Business  Develop report wireframes for validation Consultant3. Implementation Approach  Repeatable, structured implementation methodology Project and Program Management Risk and Quality Management  Supports install, start-up, Admin and User training and  Planning Project  Definition Design Solution  Develop- ment Stabilize solution  Integration QA & Test  Deployment Finalize  Support Production Mobilization environment environment Testing Production Support initial report development   Project Launch Confirm Server environments & Software for   Develop initial Report Designs Finalize in scope BI and GIS   Configure Solution Implement BI Connectors   Performance Tuning BI Validation and Traceability   Environment Perform End- User Training Execute Cut-   Quality Assessment Post Go Live Review loading architectures over Plan  Saves time and decreases risk for the customer  Implement GIS  User Acceptance  Performance connectors Testing  GO LIVE! Tuning  Prepare Training Materials Knowledge Transfer
  • How leading retailers benefitfrom Location AnalyticsReveals relationships, trends, dependencies, and patterns that my havebeen undetectable in conventional reports and improves decision-making1. Why, what & “Where” 2. Determine the optimum 3. Increase understanding offactors, such as the regional structure of retail territories trends, relationships, anddemographic variables or and market by understanding behavior of customers locatedlocation of competitor coverage, density and in a trade area for moreoutlets, are impacting current distribution of prospect and precise and effectiveoperational performance. customers. marketing activities.4. Gaining improved 5. Plan, manage and 6. Understand how theunderstanding of “where” the optimize the distribution and patterns of incidents orlocation of existing assets and retail system around OEM’s, outcomes from events mayinventories reside, in order to suppliers, Distribution Centers impact supply chains such asbetter manage capital and and Store locations. from severe storms or otherlogistics force majeure challenges.
  • Galigeo’s value for the retail industrySales/Business Department: Marketing Department: A real time spatial visualization of store performances  Spatial visualization of prospects/current customers, Predictive analysis of where potential customers are supporting distribution of marketing materials located, consumer trends, change of location (leisure,  Address specific marketing promotions to customers work, events…) located within target radius from location (i.e. inactive New site locations in high potential areas the last month/week, customers behavior of X products, Territory Management: loyalty card type, demographic/social changes, etc.).  Efficiency of customer visits for sales force  The quantity/cost of marketing materials sent out/left-  Prioritization list of potential customers by locations overs/new orders for specific target groups/regions  The efficiency of addressing sales force to similar  Evaluate the results from these marketing campaigns customer types/same sector/same location. (the return of customers to shop in the territory)IT Department (BI/GIS): Avoid time-consuming work on extracting, transferring, creation of maps for all types of data (events, factors, time, locations etc.) Get the multidimensional view of all data with direct access to BI/CRM system through the map) Bi-directional connector to BI/CRM and Map (GIS) so that changes in data (BI/CRM) will instantly update the map AND inserted/changes of data in map will update data in BI/CRM system. Avoid the risks and hassles of duplicating data or creating multiple data stores and losing linkage to Systems of Record. Possible to automatically send/receive daily/weakly geo-business reports to the respective departments/users 7
  • Case Study: Global RetailerPredictive Analyticsin Marketing & Retailing
  • Case Study: Geo-Marketing and PredictiveAnalytics at a global retailer • World leader in distribution-15,000 stores with four formats hyper- markets, supermarkets, hard-discount stores, and convenience stores. • 33 countries, 475,000+ employees, 2011 Revenues of 107 billion euros • Integrates rich spatial data (GIS) and business intelligence data into a LI platform to support predictive analysis • Multiple spatial data combined with an intelligent map viewer • Flexible but secure: visibility, data sources, user groups; report types • Easy to use for non literate GIS users • Objectives for the Location Intelligence program: 1. Guide site selection and expansion of the retail presence across countries- defines potential markets and where to set-up new stores 2. Monitor store performance against forecasted sales –target vs. actuals 3. Improve direct marketing efforts and return on investment- campaigns and ROI
  • How the client achieves their business goals &objectives with Galigeo’s solution Site Selection Data Sets • Demographics & profiles Actions • •Demographics & profiles Vertical market-specific • Defines potential market • Vertical market-specific • Defines where to set up new stores Marketing Store Performance Data Sets Data Sets • CRM • Performance Data / BI • Data mining • Store, Customers, Products • Monitors Target vs. Actual • Analyzes and Reports Actions Actions • Campaigns • Monitors Target vs. Actual • Customer acquisition • Analyzes and Reports Document confidentiel
  • Gain a better understanding of the territory• The location of existing assets and inventories in order to manage them more effectively.• The location proximity and patterns associated with incidents or events that impact upon resource allocation.  Why and what external factors, such as the regional demographic variables or location of competitor outlets, are impacting current operational performance at a detailed level.  The optimum way to structure sales territories and strategies through a clearer under-standing of the density and distribution of clients within a territory.  To understand the trends, relationships, and behavior of customers located in a trade area to support precise and effective marketing activity.
  • Objective #1: Site Selection- Measuring the potentialof the Retail Trade Area The analyst gets the accurate location of the opportunity
  • Objective #1: Site Selection- Measuring the potentialof the Retail Trade Area Widgets to measure potential store square footage via satellite view
  • Objective #1: Site Selection- Enter Potential NewStore Criteria to Model Store Performance
  • Objective #1: Site Selection- Measuring the potential of the Retail Trade AreaTravel radius to measure thepotential of the trade area which is acombination of drive time (or walktime) with demographics. Benefit: Adds proximity context to scenario planning models and shows the outcomes in a visual manner that makes it easy to grasp the implications
  • Site Selection: Interrogating additional data leads to refinement of the RTA boundariesRTA is taking into accountthe potential, competition,cannibalization with otherstores Benefits: Analysis is informed by business data presented in enhanced visualization layers, and supports improved decision making. More mature site planning teams collaborating with store operations and marketing can spin off predictive analytics loops to forecast business outcomes early in the market development effort
  • How the client achieves their business goals &objectives with Galigeo’s solution Site Selection Data Sets • Demographics & profiles Actions • •Demographics & profiles Vertical market-specific • Defines potential market • Vertical market-specific • Defines where to set up new stores Marketing Store Performance Data Sets Data Sets • CRM • Performance Data / BI • Data mining • Store, Customers, Products • Monitors Target vs. Actual • Analyzes and Reports Actions Actions • Campaigns • Monitors Target vs. Actual • Customer acquisition • Analyzes and Reports
  • Gain a better understanding of the territory• Why and what external factors, such as the regional demographic variables or location of competitor outlets, are impacting current operational performance at a detailed level.• The optimum way to structure sales territories and strategies through a clearer under-standing of the density and distribution of clients within a territory.  The location of existing assets and inventories in order to manage them more effectively.  The location proximity and patterns associated with incidents or events that impact upon resource allocation.  To understand the trends, relationships, and behavior of customers located in a trade area to support precise and effective marketing activity.
  • Objective #2: Store Performance- BI “reports” movedfrom crosstabs to maps bring “Where” to life Benefit: Extends existing BI functional richness where client does not have pre-existing GIS capability. Dynamically blends powerful GIS spatial context with business rich data to deliver easy to understand information
  • Store Performance: Location Intelligence with visualization rapidly synthesizes combinations• Measures of competition and customer density• Dynamic geographic sales information needed to efficiently respond to the changing nature of customers Benefit: Reveals relationships, trends, dependencies, and patterns that would have been undetectable in conventional reports.
  • How the client achieves their business goals &objectives with Galigeo’s solution Site Selection Data Sets • Demographics & profiles Actions • •Demographics & profiles Vertical market-specific • Defines potential market • Vertical market-specific • Defines where to set up new stores Marketing Store Performance Data Sets Data Sets • CRM • Performance Data / BI • Data mining • Store, Customers, Products • Monitors Target vs. Actual • Analyzes and Reports Actions Actions • Campaigns • Monitors Target vs. Actual • Customer acquisition • Analyzes and Reports
  • Gain a better understanding of the territoryTo understand the trends, relationships, and behavior of customerslocated in a trade area to support precise and effective marketingactivity.• Why and what external factors, such as the regional demographic variables or location of competitor outlets, are impacting current operational performance at a detailed level.• The location of existing assets and inventories in order to manage them more effectively.• The location proximity and patterns associated with incidents or events that impact upon resource allocation.• The optimum way to structure sales territories and strategies through a clearer under-standing of the density and distribution of clients within a territory.
  • Objective #3: Market Action- Leverage Location Intelligence to predict marketing campaign outcomes Benefit: Targets and aligns sales and1. Selection of the trade area to define where spend marketing budget where it ismailings have to be distributed easy to reach the most customers2. Apply a management rule; Consolidation,Destabilization or Conquest3. Optimize direct marketing actions, such asdistributing weekly circulars according to thestore strategy
  • Results1. Tools in the hands of decision-makers to respond to changing business dynamics This Global Retailer has implemented a bottom-up approach to GeoMarketing by providing store managers with the dynamic geographic sales information needed to efficiently respond to the changing nature of customers2. Added the "where" factor to its analysis methodology The GeoMarketing platform provided the capabilities that the Global Retailer required to add the "where" factor to its business intelligence and CRM. By developing a bottom-up approach, Global Retailer has gained greater efficiency in responding to the changing spatial nature of customers behavior.3. Enables new data sets to support outcomes based analysis and predictive modeling Offers the opportunity to integrate new data content directly into the database. This innovative functionality lets the operation level feed and enrich the database with information related to its store.
  • Implementing a Location Intelligencestrategy; Traditional architecture vsGaligeo’s architecture
  • Traditional ArchitectureBI Platform GIS Platform • Mapping of BI data; linking Geo-Spatial layers to Map Reports various data types: Services  Transactional  Operational  Analytic  Aggregated Map Server BI • Avoiding duplication of data Server • Security and access rights GIS • Seamless, bi-directional Desktop data exchange/update Manual Enterprise ETL GIS Database Data Bases
  • How Galigeo’s Solution Solves the ProblemBI Platform GIS Platform Reports Map Geo-BI Services Interactive Map Viewer BI Map Server GALIGEO Connector (API) Server Galigeo’s Value Added Functionality • Thematics, historgrams, pie charts • Isochrone, spider charts, pop-up windows Enterprise • Mini-maps, publishing to PDF/PNG GIS Database Data Bases • Advanced - Heatmap, Spatial Time slider, Geo clustering
  • For more informationwww.galigeo.com.