Description
A contemporary organization competes in a business environment that is characterized by a massive influx of information.
Business Intelligence for Building
the Competitive Advantage
in Retail Industry
Celina M. Olszak
Oxford Retail Futures Conference
Big Data, Business Intelligence and Real-time Analytics in Retail
Said Business School, Oxford University, 9-10 December 2013
? A contemporary organization competes in a business environment that is
characterized by a massive influx of information (Schick, Frolick and Ariyachandra,
2011). A critical component for its success is the ability to take advantage of all
available information (Cody, et al, 2002; Jordan and Ellen, 2009).
? Business Intelligence (BI) - a solution that may help retail industry to make
informed, intelligent business decisions and to survive in the business world
(Negash and Gray, 2008; (Wixom and Watson, 2010).
? Although BI has been developing for over 20 years, unfortunately, many retail
organizations are not able to make from it an effective tool for decision making
and creating a competitive advantage (Davenport and Harris, 2007).
? The analysis of BI using shows that practical benefits are often unclear and some
organizations fail completely in their BI approach (Clavier, Lotriet and
Loggerenberg, 2012).
? The research questions: „What possibilities offer BI tools for retail industry, what
factors allow to achieve high competences in BI, and consequently to obtain
business success”.
Motivation for the study
3
Business
Intelligence
?Standard reports
?Ad hoc reports
?Query/drill down
?Alerts
?Statistical analysis
?Forecasting/extrapolation
?Predictive modelling
?Optimization
Degree of intelligence
C
O
M
P
E
T
I
T
I
V
E
I
N
T
E
L
LI
G
E
N
C
E
BI 2.0
Web
mining,
Text
mining,
opinion
mining
BI 1.0
BI 3.0
Mobile
mining
BI maturity
models
Asked questions during interviews (n-15)
How do you define BI?
What do you use BI for (reporting, ad-hoc
reporting, analyzing, alerting, predictive
modeling, operationalizing, optimization,
activating, etc.) ?
Does your organization have a defined BI
strategy?
Does your organization have defined business
processes?
Does your organization/department have defined
metrics?
Assess the quality of data used in your
organization (complete, correct, consistent;
high/medium/poor quality data, etc.)
Are you skilled enough in order to take advantage
of BI systems?
Do you use management dashboards?
Is your BI (un)limited to the part/department of
organization?
Are you motivated to use BI (how)?
Do you use BI for analyzing customers, suppliers,
competitors and other business partners?
Who is the sponsorship of BI in your
organization?
What kind of BI software do you use?
Describe some successes/failures from using BI
Indicate some benefits from using BI
Methodology:
(1) critical analysis
of the literature
(2) interviews
with experts
from retail sector
Model of
Analytical
Competition
4
Level Human Organization/process Tools, technology Benefits
Analytically
impaired
(n-2)
Human barriers, poor
skills in BI
Organizations have some desire to
become more analytical; processes
are not defined, data are not complete
and inconsistent
Lack the hardware and
software, simple reporting,
using Excel analysis
Lack the benefit, or poor
benefits
Localized
analytics
(n-4)
The users take the first
BI initiatives;
low support from
senior executives
Traditional approach to management,
focused on the performing the basic
tasks of departments; identification of
basic business processes
Reporting with pocets of
analytical activity ,used data
bases , OLAP, regional data
warehouses
Low benefits limited to
small group of users; better
access to data and static
reporting
Success factors: support from senior management, appropriate BI tools, quality of data, defined business processes and metrics
Analytical
aspirations
(n-7)
BI activities gain
executive sponsorhip,
staff is not enough
educated in BI
Organizations build their first plans of
BI using.; BI is used to perform ad
hoc reporting and to answer questions
related to department’s ongoing
operations
Management dashboards are
used; a centralized data
warehouse is built; ad-hoc
reporting, query drilldown
Benefits limited to
departments and business
units; improvement of
internal business processes
and decision making on
operational level
Success factors: developing corporate culture based on facts, stating clearly BI strategy, implementing training system on BI
Analytical
companies
(n-1)
Users have high BI
capabilities, but often
not aligned with right
role
Business process management based
on facts , establishing a fact-based
culture , clear BI strategy, building
analytical capabilities
High-quality data; have BI
strategy; using more complex
prediction and modeling tools;
advanced data mining, CRM,
SCM
They do not compete
through BI; integrated
analysis for sale, finance,
logistics, improvment of
CRM, SCM
Success factors: support from CEO, motivation of users for collecting, analyzing and using information
Analytical
competitors
(n-1)
Users have
capabilities and time
to use BI; skill
training in BI; users
are encouraged to
collect, process,
analyze and share
information
The common BI approach is used in
the whole organization; dynamic
analytical capabilities, hard to
duplicate, unique, adaptable to many
situations
Enterprise-wide BI
architecture largely
implemented; customized
reports; web mining, opinion
mining, business and BI are
aligned and cooperative
Benefits for the whole
environment; competing
through BI (acquiring new
customers, lunching new
products, new channels of
sale); new ways of doing
business
Success factors: strong support of CEO, effective HRM and all user’s trust in BI
Model of Analytical Competition - Results and Discussion
Conclusions and recommendations
(1) BI may be a key (trigger) for making more effective decisions,
improving business processes and business performance, as well as
doing new business.
(2) The factors that allow retail organizations to achieve business
benefits with BI, include first of all: management leadership and
support, corporate culture, expressed by effective information
resources management, clearly stated strategy and objectives, and
use of appropriate BI technologies.
(3)Additionally, the important factors are: clearly defined business
processes, business performance measurement, incentive system to
encourage collecting, analyzing information and knowledge sharing,
appropriate resources (financial, intellectual), training and education
on BI and knowledge management.
(4) Retail industry needs to turn to new generation of BI tools (web
mining, text mining, opinion mining, search based applications, multi-
agent technology, etc.). They enable to better understand the
business and the environment. Regardless of the tools used: „BI and
business (retail) must be aligned and cooperative”.
THANK YOU…
QUESTIONS?
[email protected]
doc_217698958.pdf
A contemporary organization competes in a business environment that is characterized by a massive influx of information.
Business Intelligence for Building
the Competitive Advantage
in Retail Industry
Celina M. Olszak
Oxford Retail Futures Conference
Big Data, Business Intelligence and Real-time Analytics in Retail
Said Business School, Oxford University, 9-10 December 2013
? A contemporary organization competes in a business environment that is
characterized by a massive influx of information (Schick, Frolick and Ariyachandra,
2011). A critical component for its success is the ability to take advantage of all
available information (Cody, et al, 2002; Jordan and Ellen, 2009).
? Business Intelligence (BI) - a solution that may help retail industry to make
informed, intelligent business decisions and to survive in the business world
(Negash and Gray, 2008; (Wixom and Watson, 2010).
? Although BI has been developing for over 20 years, unfortunately, many retail
organizations are not able to make from it an effective tool for decision making
and creating a competitive advantage (Davenport and Harris, 2007).
? The analysis of BI using shows that practical benefits are often unclear and some
organizations fail completely in their BI approach (Clavier, Lotriet and
Loggerenberg, 2012).
? The research questions: „What possibilities offer BI tools for retail industry, what
factors allow to achieve high competences in BI, and consequently to obtain
business success”.
Motivation for the study
3
Business
Intelligence
?Standard reports
?Ad hoc reports
?Query/drill down
?Alerts
?Statistical analysis
?Forecasting/extrapolation
?Predictive modelling
?Optimization
Degree of intelligence
C
O
M
P
E
T
I
T
I
V
E
I
N
T
E
L
LI
G
E
N
C
E
BI 2.0
Web
mining,
Text
mining,
opinion
mining
BI 1.0
BI 3.0
Mobile
mining
BI maturity
models
Asked questions during interviews (n-15)
How do you define BI?
What do you use BI for (reporting, ad-hoc
reporting, analyzing, alerting, predictive
modeling, operationalizing, optimization,
activating, etc.) ?
Does your organization have a defined BI
strategy?
Does your organization have defined business
processes?
Does your organization/department have defined
metrics?
Assess the quality of data used in your
organization (complete, correct, consistent;
high/medium/poor quality data, etc.)
Are you skilled enough in order to take advantage
of BI systems?
Do you use management dashboards?
Is your BI (un)limited to the part/department of
organization?
Are you motivated to use BI (how)?
Do you use BI for analyzing customers, suppliers,
competitors and other business partners?
Who is the sponsorship of BI in your
organization?
What kind of BI software do you use?
Describe some successes/failures from using BI
Indicate some benefits from using BI
Methodology:
(1) critical analysis
of the literature
(2) interviews
with experts
from retail sector
Model of
Analytical
Competition
4
Level Human Organization/process Tools, technology Benefits
Analytically
impaired
(n-2)
Human barriers, poor
skills in BI
Organizations have some desire to
become more analytical; processes
are not defined, data are not complete
and inconsistent
Lack the hardware and
software, simple reporting,
using Excel analysis
Lack the benefit, or poor
benefits
Localized
analytics
(n-4)
The users take the first
BI initiatives;
low support from
senior executives
Traditional approach to management,
focused on the performing the basic
tasks of departments; identification of
basic business processes
Reporting with pocets of
analytical activity ,used data
bases , OLAP, regional data
warehouses
Low benefits limited to
small group of users; better
access to data and static
reporting
Success factors: support from senior management, appropriate BI tools, quality of data, defined business processes and metrics
Analytical
aspirations
(n-7)
BI activities gain
executive sponsorhip,
staff is not enough
educated in BI
Organizations build their first plans of
BI using.; BI is used to perform ad
hoc reporting and to answer questions
related to department’s ongoing
operations
Management dashboards are
used; a centralized data
warehouse is built; ad-hoc
reporting, query drilldown
Benefits limited to
departments and business
units; improvement of
internal business processes
and decision making on
operational level
Success factors: developing corporate culture based on facts, stating clearly BI strategy, implementing training system on BI
Analytical
companies
(n-1)
Users have high BI
capabilities, but often
not aligned with right
role
Business process management based
on facts , establishing a fact-based
culture , clear BI strategy, building
analytical capabilities
High-quality data; have BI
strategy; using more complex
prediction and modeling tools;
advanced data mining, CRM,
SCM
They do not compete
through BI; integrated
analysis for sale, finance,
logistics, improvment of
CRM, SCM
Success factors: support from CEO, motivation of users for collecting, analyzing and using information
Analytical
competitors
(n-1)
Users have
capabilities and time
to use BI; skill
training in BI; users
are encouraged to
collect, process,
analyze and share
information
The common BI approach is used in
the whole organization; dynamic
analytical capabilities, hard to
duplicate, unique, adaptable to many
situations
Enterprise-wide BI
architecture largely
implemented; customized
reports; web mining, opinion
mining, business and BI are
aligned and cooperative
Benefits for the whole
environment; competing
through BI (acquiring new
customers, lunching new
products, new channels of
sale); new ways of doing
business
Success factors: strong support of CEO, effective HRM and all user’s trust in BI
Model of Analytical Competition - Results and Discussion
Conclusions and recommendations
(1) BI may be a key (trigger) for making more effective decisions,
improving business processes and business performance, as well as
doing new business.
(2) The factors that allow retail organizations to achieve business
benefits with BI, include first of all: management leadership and
support, corporate culture, expressed by effective information
resources management, clearly stated strategy and objectives, and
use of appropriate BI technologies.
(3)Additionally, the important factors are: clearly defined business
processes, business performance measurement, incentive system to
encourage collecting, analyzing information and knowledge sharing,
appropriate resources (financial, intellectual), training and education
on BI and knowledge management.
(4) Retail industry needs to turn to new generation of BI tools (web
mining, text mining, opinion mining, search based applications, multi-
agent technology, etc.). They enable to better understand the
business and the environment. Regardless of the tools used: „BI and
business (retail) must be aligned and cooperative”.
THANK YOU…
QUESTIONS?
[email protected]
doc_217698958.pdf