Retail Business Intelligence Solution
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1 Retail Business Intelligence Solution TAN Ser Yean Regional Sales Manager Data Servers & Business Intelligence IBM Software ASEAN
2 Retail leaders will enhance traditional intuitive approaches with Advanced Analytics Increased Performance via Systematic Intelligence Customer, operational, and competitive data Market research POS RFID ERP Real-time analytics, decision support, and predictive intelligence Business insights Customers Optimized operations Merchandising Assortment planning Pricing and promotions Enterprise Data Management Store Ops Stores Store design and presentation Employee management In-store monitoring Supply chain Vendor data augmenting traditional creative/intuitive methods Supply Chain Supply Chain Demand forecasting Inventory management Warehouse management Source: IBM Institute for Business Value
3 What Is Business Intelligence? BI is the process of gathering, consolidating, and analyzing data from multiple sources for strategic decision making BI derives new value from your transactional data BI supports strategic planning, monitoring, and efficiency BI delivers knowledge of the customer, suppliers, and sales channels BI unifies the enterprise with a single version of the truth
4 Business Intelligence Architecture Operational Databases Operational Systems Extract, transform, merge, load ETL metadata Information Integration Enterprise Data Warehouse A single version of the truth Line of Business Data Marts Slices of data for departments End User Analytic Tools Data Mining Query & Reporting End user Delivery & analysis
5 The IBM Retail Business Intelligence Solution: Provides a consistent view of information across the enterprise. Delivers advanced analytics and insight into core Retail process areas: Customer Management, Merchandising, Product & Service Management, Store Operations, Finance & HR Enables rapid, phased deployment Offers a packaged, customizable, open environment Leverages a retailer s existing investment in people, process and technology
6 It s all about the Customer Acquire, retain, & extend customer s lifetime value Get the right customers Retain the profitable ones Migrate low profit clients to low cost channels Solution areas Customer segmentation Customer acquisition Retention & Loyalty programs Winback Programs Campaign management Market basket analysis Profitability analysis
7 and Collaborative Commerce Retailer Information Store-level: POS data coupon redemptions inventory information sales forecasts pricing consumer loyalty data extract, transform, load Vendor Sales force data Aggregate & regional demand forecasting Inventory data Order fulfillment & distribution data SKU-level analysis Consumer Loyalty Improved forecasting Category Optimization Reduced inventory costs DB2 Data Warehouse Timely manufacturing Better segmentation Visibility into retailer needs Reduced inventory costs Improved analytics
8 Business Intelligence Architecture Operational Databases Operational Systems Extract, transform, merge, load ETL metadata Information Integration Enterprise Data Warehouse A single version of the truth Line of Business Data Marts Slices of data for departments End User Analytic Tools Data Mining Query & Reporting End user Delivery & analysis
9 The IBM Solution: IBM Information Server Delivering information you can trust IBM Information Server Understand Cleanse Transform Deliver Unified Deployment Understand Cleanse Transform Deliver Discover, model, and govern information structure and content Standardize, merge, and correct information Combine and restructure information for new uses Synchronize, virtualize and move information for in-line delivery Discover, model, and govern information structure and content Parallel Processing Services Standardize, merge, Combine and and correct information Platform Services restructure information for new uses Connectivity Services Metadata Services Unified Metadata Management Administration Services Synchronize, virtualize and move information for in-line delivery Deployment Services Parallel Processing Rich Connectivity to Applications, Data, and Content
10 IBM DB2 Warehouse 9.5 Complete and integrated services Embedded analytics Modeling and design Data mining & visualization Database partitioning In-line analytics Performance optimization Workload management Cubing Services Database management IBM DB2 Warehouse Unstructured Analytics Deep compression Data movement and transformation Administration and control
11 Warehousing Made Simple Common Eclipse Based Design Studio for All Administration Simplicity Control Flow SQL Generated From Data Flow Data Warehouse Project Enterprise Schema Data Flow
12 Deliver inline visualization and analytics Embedded analytics capabilities Can be embedded directly into applications and Web pages Out-of-the-box visualization tools
13 Data Mining Enhancing Business Insight with Predictive Analytics DB2 Warehouse Data Warehouse Selected Data Assimilated Extracted Information Information Select Transform Mine Assimilate Statistician & Data Mining Workbench Business Analyst Easy Mining algorithms Associations Which item affinities ( rules ) are in my data? [Beer => Diapers] single transaction Sequences Which sequential patterns are in my data? [Love] => [Marriage] => [Baby Products] sequential transactions Clustering Which interesting groups are in my data? customer profiles, store profiles Classification How to predict categorical values in my data? will the patient be cured, harmed, or unaffected by this treatment? Prediction How to predict numerical values in my data? how likely a customer will respond to the promotion how much will each customer spend this year? Score data directly in DB2, scalable and real time
14 Introducing IBM Balanced Warehouse TM A fast track to warehousing Balanced Configuration Unit (BCU) Preconfigured, pretested allocation of software, storage and hardware to support a specified combination of function and scale SIMPLE FLEXIBLE OPTIMIZED Balanced Warehouse Simplicity Predefined configurations for reduced complexity One number to contact for complete solution support Flexibility for growth Add BCUs to address increasing demands Multiple on-ramps for different needs Reliable, nonproprietary hardware for reusability Optimized performance Preconfigured and certified for guaranteed performance Based on best practices for reduced risk Better than an appliance
15 IBM Balanced Warehouse Solution Classes The IBM Balanced Warehouse can be broken down into 3 different solution classes that each target and serve a distinct warehousing market segment. Application Solutions Growth Solutions Enterprise Solutions Class Name Segment C-Class D-Class E-Class Entry-point for Smaller Warehousing Applications and Reporting Tools Advanced Departmental Data Marts and Smaller Data Warehouses Highly Scalable Enterprise Data Warehouses Price Range $10 to $150K $200K to $300K (With 1 BCU) $800K to over $1.5M (With 1 BCU) Scalability Limited High - BCU Very High - BCU Size 50GB to 1TB 1TB to 5TB* 1TB and Up Users Performance Up to 200 Users No Hard Limits NOTE: * Can scale higher if needed
16 Business Intelligence Architecture Operational Databases Operational Systems Extract, transform, merge, load ETL metadata Information Integration Enterprise Data Warehouse A single version of the truth Line of Business Data Marts Slices of data for departments End User Analytic Tools Data Mining Query & Reporting End user Delivery & analysis
17 Retail Data Warehouse Model Contains : Flexible System of Record Commonly-required Summaries Sample Analysis Schemas Feedback Area Intended to be customized Approx 80% of Customer s Requirements for a Central Warehouse Low-level flexible model Generic One-step from Physical Enterprise-wide Logical Model Entity-Relationship Consists of over 71 Subject Areas, 671 Entities, 4067 Attributes Fully defined and documented
18 The RDW Architecture Physical Design Logical Design Data Warehouse design specific for Retail Organizations gives full enterprise DW blueprint EDW designed for Retail Organizations can be generated over a series of manageable phases Sources POS Front Office Accounting Inventory HR Other Sources Mapping between BSTs and RDWM enable rapid scoping Enterprise Data Warehouse Staging Area System Of Record Classified Sources Summary Analysis Feedback ETL/Messaging Cube Server ROLAP OLAP Server * Relational Other Warehouse Management & Administration Metadata Management & Metadata Repository Data Mart Structures RSDM provides overall corporate model with common language & terms Data Mart Templates for Retail Organizations, enable fast accurate requirements gathering Data Mart DB design can be generated from Templates Business Applications Customers Merchandizing Products Store Ops Data Analysis & Reporting Data Mining Predictive Modeling Mgt Reporting
19 Retail Business Solution Templates What are the Business Solution Templates? The Retail Business Solution templates are a grouping of measures and dimensions that satisfy a particular business requirement. What are measures? Measures are facts that are used to quantify business performance indicators. These measures may be made up of other measures (known as sub-measures) in the context of the measure to which they contribute. An example of a Measure is 'Number Of Customers' What are dimensions? Dimensions consist of criteria or segments by which the measures may be broken down. Dimensions consist of at least one level of Dimension Members. An example of a Dimension is 'Time Period'
20 What do the RBSTs Cover? - Overview Customer Management Campaign & Promotion Analysis Cross Purchase Behavior Analysis Cross Sell Analysis Customer Attrition Analysis Customer Complaints Analysis Customer Credit Risk Profile Customer Delinquency Analysis Customer Interaction Analysis Customer Lifetime Value Analysis Customer Loyalty Customer Movement Dynamics Customer Profile Analysis Customer Profitability Involved Party Exposure Lead Analysis Market Analysis Market Basket Analysis Product Purchasing RFQ Analysis Purchase Profile Analysis Target Product Analysis Merchandising Management Products & Services Management Assortment and Allocation Analysis Inventory Analysis Physical Merchandising / Space Management Analysis Pricing Analysis Promotion Analysis Business Performance Analysis Planning and Forecasting Analysis Product Analysis Product profitability Service Delivery Analysis Transaction Profitability Analysis Vendor Performance Analysis Store Operations Management Activity Based Costing Analysis Location Exposure Location profitability Loss Prevention Analysis Non Performing Loan Analysis Organization Unit Profitability Performance Measurement Staffing Analysis Store Location Analysis Store Optimization Analysis Suspicious Activity Analysis Corporate Finance Management Capital Allocation Analysis Credit Risk Analysis Financial Management Accounting Income Analysis
21 Our Retail Industry Software Customers
22 Case Study Mass Merchant Challenge: To create support across the company for an enterprise data warehouse solution in an environment that is highly silo d To develop an enterprise view of financial profitability across all business areas, products and departments (Consumer Credit, Merchandising and Store Operations) Solution: IBM s Retail Business Intelligence Solution with the REDW Data Model Services to support customization of the model to stress financial reporting issues DB2 Warehouse solution Benefits: Now able to see the complete profitability picture $46B+ Mass Merchant Retailer 1337 Stores in 47 States
23 Case Study Specialty Apparel Challenge: Integrate and operate new Disney Store acquisition Develop enterprise view of store and product information in short time frame (6 months or less) Deliver transaction level information to end users which can be leveraged by the Finance, Marketing and other business functions within the organization Leverage, not re-do, processing and technology that is already being done by the finance and marketing teams Solution: Retail Business Intelligence Solution with Retail Enterprise Data Model DB2 Warehouse Alphablox Benefits: Short time frames can be met and analytics leveraged Marketing and Finance able to work on same page $1.2b specialty retailer focused on children 0-10 Completed Disney Store acquisition in 2005
24 Summary Retailers are heading into the next generation of advanced analytics with a global perspective More and more they are incorporating close to real time decision capabilities ROI is mature so that adding more BI capabilities inside the enterprise is common A common foundation for supporting all of these activities is derived through an enterprise model
25 The IBM Retail Business Intelligence Solution Retail Business Intelligence Reference Architecture and Enterprise Data Warehouse Model Retail Optimized Business Intelligence Infrastructure (server, storage and software) Retail specific templates for quick start analytics and reporting for Store Operations, Merchandising, Customer Management, Product Management and Multi-Channel Retail Design and Implementation Services to help retailers prioritize their high business impact areas and allow for an easy deployment
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