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BI Challenges of a Multi Banner Retailer

BI Challenges of a Multi Banner Retailer. July 2010. Agenda. Introduction to SuperValu Business Challenges of Multi Banner Environment Technology Challenges and Solutions Business Results of Solutions Questions?. p. 2. Agenda. Introduction to SuperValu

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BI Challenges of a Multi Banner Retailer

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  1. BI Challenges of a Multi Banner Retailer July 2010

  2. Agenda • Introduction to SuperValu • Business Challenges of Multi Banner Environment • Technology Challenges and Solutions • Business Results of Solutions • Questions? p.2

  3. Agenda • Introduction to SuperValu • Business Challenges of Multi Banner Environment • Technology Challenges and Solutions • Business Results of Solutions • Questions? p.3

  4. Introduction to SuperValu • SuperValu Facts: • $39 Billion in Revenues, $29 B in retail and $10 B in supply chain • 3rd Largest Food Retailer in the US, approx. 20% market share • More than 2,500 stores, 800+ in-store pharmacies, 100+ fuel centers • SuperValu operates 12 Banners • Banners located across East, Midwest and West Coast • Banners have multiple retail formats, including full convenience stores, limited assortment merchandizing, convenience/fuel stores & specialty food retail • Banners are powerful brands & operated independently before being acquired • Banners have market positioning, from ‘Hi-low’ to ‘EDLP’ and everything in between p.5

  5. Agenda • Introduction to SuperValu • Business Challenges of Multi Banner Environment • Technology Challenges and Solutions • Business Results of Solutions • Questions? p.6

  6. BI Challenges – Business Perspective • Multiple ‘independent’ banners mean multiple sources of data • Sales data (hosted in D/W’s supporting banners) • Financial planning information (hosted in platform) • Banner level data (hosted in platform) • Multiple ‘traditional’ banners bring multiple business cycles • For 4 Banners, the Fiscal Week is Fri-Thurs • For remaining 7, the Fiscal Week is Sat-Sun p.7

  7. BI Challenges – Business Perspective • Multiple ‘Retail Formats’ means • Product Assortment • Supported by Product Hierarchies • with Customer Offering • Product Hierarchies in SuperValu • Organizational: 6 level Hierarchy relating to Product responsibility by position. • Legacy Merchandise: 6 level hierarchy unique by legacy banner. than Organizational Hierarchy • External Vendor: 7 level hierarchy based on Common Hierarchy but requires manual alignment. • General Ledger: Department level only by banner. • Wholesale Hierarchy: 6 level hierarchy unique by distribution center • POS Hierarchy: Unique by banner with variants by store. p.8

  8. BI Challenges – Business Perspective • Lets try answering the following Question: • How many eggs did we sell last quarter: • In DW1, Eggs are in Grocery dept, in DW2 Eggs are in dairy dept • Our weekend challenge • DW1 has a Thursday week end, • DW2 has a Saturday week end and • So on • DW1 identifies Eggs via system generated ITEM CODE, DW2 has UPC code • With multiple D/W’s, we had to extract each & every instance and aggregate results to generate meaningful output p.9

  9. Agenda • Introduction to SuperValu • Business Challenges of Multi Banner Environment • Technology Challenges and Solutions • Business Results of Solutions • Questions? p.10

  10. Challenges and How Did We Solve ? • Data-Models One Data Model • Banner Wise Hierarchies All Product Hierarchy accommodations • Users of Same Data Enterprise Level of Common Reports • BI Tools Common Enterprise Tool Set • Design Strategies Analyzed & Chose the best and feasible Design Strategies from multiple existing systems • Banner Wise Tools Quick win solutions to enable Enterprise wide information p.11

  11. Product Hierarchy Accommodation Banner 3 Banner 1 Banner 2 Product Hierarchy Product Level 1 Product Level 5 = Product Level 10 Product Level 14

  12. Users of Same Data Point in Time Data Used by DWH Users ( Active Data) EDW As it Was Data As it Is Data Data Used by Analytics & Marketing ( History Data)

  13. Problem Solved • One Data Model and Product Hierarchy accommodations • Enterprise Level of Reporting • Common Enterprise Tool Set • Analyzed & Chose the best and feasible Design Strategies from multiple existing systems • Banner Wise tools replaced to Standard Operational/Analytical Reports with BI Tools and proposed some quick win solutions to enable Enterprise wide information

  14. Technology / Tools • Issues • Different Tools • If on Same Tools then Different Versions • Maintenance Overhead • Challenges • Figure out the Right Set of BI Tools • Effective Ways of Using it • End User Sees everything the same Way • Retire Unused Tools Tools / Technology Databases: Teradata V12 Oracle 10 G SQL Server ETL: Informatica 8.6 Analytical Reporting: Microstrategy 9 Operational Reporting: Microsoft Reporting Services D/W 3 D/W 2 D/W 1 D/W 4

  15. Problem Solved • One Data Model and Product Hierarchy accommodations • Enterprise Level of Reporting • Common Enterprise Tool Set • Analyzed & Chose the best and feasible Design Strategies from multiple existing systems • Banner Wise tools replaced to Standard Operational/Analytical Reports with BI Tools and proposed some quick win solutions to enable Enterprise wide information

  16. Design Strategy ETL Architecture ELT ETL ENGINE TRANSFORM EXTRACT EXTRACT TARGET DATABASE TARGET DATABASE LOAD LOAD E- LT Architecture SOURCES TRANSFORM SOURCES Leveraging Target Database Power

  17. Problem Solved • One Data Model and Product Hierarchy accommodations • Enterprise Level of Reporting • Common Enterprise Tool Set • Analyzed & Chose the best and feasible Design Strategies from multiple existing systems • Banner Wise tools replaced to Standard Operational/Analytical Reports with BI Tools and proposed some quick win solutions to enable Enterprise wide information

  18. Technology Solutions • Enterprise level tools such as • Category Management and Financial Planning (Oracle RPAS tool) • Centralized Promo Sales & Anticipated Vendor funds (eEMS) • Centralized Finance Vendor funds tool (ePromo ) • Marketing Analytics tool using Micro strategy reporting • Common Hierarchy Item Alignment: (CHIA) • Advanced Dynamic Advertisement Planning tool (ADAPT)

  19. Problem Solved • One Data Model and Product Hierarchy accommodations • Enterprise Level of Reporting • Common Enterprise Tool Set • Analyzed & Chose the best and feasible Design Strategies from multiple existing systems • Banner Wise tools replaced to Standard Operational/Analytical Reports with BI Tools and proposed some short term quick fixer tools

  20. Agenda • Introduction to SuperValu • Business Challenges of Multi Banner Environment • Technology Challenges and Solutions • Business Results of Solutions • Questions? p.21

  21. Business Impact • The BI solution implemented allows me to now answer the following questions for business • Should we include eggs on the front cover of August 1st printed ad?” • For what price should we list the eggs? • When we list the price as X, we get Y% basket penetration, but if we list the price as Z, we get W% basket penetration • Does the price have any effect on overall basket size ($)?  Does it actually drive increased traffic to the store? • Should we list national brand or own brand eggs?

  22. Agenda • Introduction to SuperValu • Business Challenges of Multi Banner Environment • Technology Challenges and Solutions • Business Results of Solutions • Questions? p.23

  23. Thank You

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