fasttrack analytics for consumer goods
DESCRIPTION
Learn how leading consumer goods companies are leveraging analytics to gain market share, improve operations and make better business decisions in challenging economic times. Attendees will gain valuable insights into: •best practices for implementing a robust analytics approach •success stories of leading consumer goods companies that are using analytics effectively •how analytics enables strategic decision-making in challenging economic times •how implementing an analytics solution can be affordable, fast & customizable to your business FastTrack Analytics gives you an opportunity to experience the value of analytics, using your data for a point solution that is customized to your business. FastTrack Analytics is an affordable, long-term solution that can be implemented quickly to fit your immediate needs. With FastTrack Analytics you can get value out of your data now without waiting for the entire enterprise to get onboard.TRANSCRIPT
FastTrack! Analytics for Consumer Goods Webinar
May 5, 2010
22
Contents
Edgewater Overview
• Why Should You Be Considering Analytics?• Potential Consumer Goods Analytics Focus Areas• Consumer Goods Analytics Focus Area Examples
Analytics in Consumer Goods
• What is FastTrack! Analytics• What are the Benefits to FastTrack! Analytics• How does FastTrack! Analytics Work?
FastTrack Analytics – Accelerate Your Use of Analytics
Questions
33
Edgewater’s Corporate Overview
Consulting Firm Advisory Services Vertical Services Enterprise Applications Strategic Technical & Data Services
Founded in 1992 Headquartered in Wakefield, MA 335 Employees Large North American Footprint Focus on Middle and Global 2000 Market Publicly Traded (NASDAQ: EDGW)
44
Sample Consumer Goods Clients
5
Why Analytics for Consumer Goods?
Drive top-line growth
via enhanced
information
Manage bottom
line costs and
efficiency
Fact-based decisions vs. tribal
knowledge
Drive added
value from existing
dataIncrease
competitive stance –
explore options!
Increased visibility
into business drivers
Why should I be considering analytics?
6
FastTrack! Analytics – Consumer Goods Focus Area
Build on the core dimensions by adding 3-5 others to address specific business questions in one of these areas:
Core Dimensions:Customer, Channel
Geography, Product,LOB/BU/Brand
Core Metrics:Sales, Revenue,
Expense
Procurement(Supplier Performance
Scorecarding & Metrics)
Finance(Planning and Budgeting
Metrics, Customer or Item Profitability)
Operations(Efficiency, Planning, Forecasting, Quality
Metrics)
Sales(SG&A % of Sales, Channel Mix, New
Customer or Product Revenues, Thresholds
per Employees)
Customer Service(Customer Performance Scorecarding & Metrics
7
Consumer Goods Analytics – Sales Focus Area
SGA Analysis
Channel Mix
Product Analysis
Forecasting
Potential Sales Analytics Subject Areas
Sample KPI’s
Customer performance by # of sales calls / visits
Order cancellation by reason
Sales costs by key account, by profitability
Sample Questions
Are sales people spending their time in the best way to drive growth?
Why are orders being cancelled and what’s the net impact?
Are we investing wisely in growing the right customers?
Potential Benefits
Increased efficiency
Increases sales (from existing customers)
Increase profitability
Customer
Analysis
8
Consumer Goods Analytics – Operations Focus Area
Efficiency
Planning &
Scheduling
Quality LogisticsBench-
marking Metrics
Potential Operations Analytics Subject Areas
Sample KPI’s
Order fill rate by customer lead times
Freight and other costs per customer, product
Delivery issues by customer, etc
Sample Questions
Are we introducing inventory and customer satisfaction risks by accepting too many rush orders?
Are we allocating freight and related costs / penalties sufficiently to support true profitability analysis?
What are the most common delivery issues and what’s the impact?
Potential Benefits
Increase customer satisfaction
Increase accuracy
Lower costs and exceptions, increase customer satisfaction
9
Consumer Goods Analytics – Customer Service Focus Area
Customer Satisfacti
on
Payments &
Deductions
Ware-housing
LogisticsDelivery & Freight
Potential Customer Service (O2C) Analytics Subject Areas
Sample KPI’s
Actual vs. promised delivery date
Order entry error rate
Customer retention rates
Sample Questions
What is the measured impact of late orders/ shipments, or rush orders?
What is the difference in error rates between electronic and manual orders and how can we reduce manual errors?
Are we retaining the most profitable customers?
Potential Benefits
Increased customer satisfaction
Baseline performance to measure and incent meaningful improvement
Focus resources where they provide the greatest value to the business
10
Consumer Goods Analytics – Procurement Focus Area
Supplier Performan
ce
Contracts
Purchasing
External Partner Mgmt
Payables & PPV
Potential Procurement (P2P) Analytics Subject Areas
Sample KPI’s
Supplier performance scorecard
Order fill rates by contract manufacturers
Product sourcing by key material category
Sample Questions
Are we incenting the right supplier performance to achieve the lowest material costs?
How are our contract manufacturers satisfying the details in their contracts?
Do we have sufficient backup suppliers for our most critical materials?
Potential Benefits
Match supplier contracts and incentives against actual performance
Increased quality and true cost visibility
Procurement continuity
11
Consumer Goods Analytics – Finance Focus Area
PlanningBudgetin
g
Customer Profitabili
ty
Product Profitabili
ty
Forecasting
Potential Finance Analytics Subject Areas
Sample KPI’s
Number reporting errors
Margin variation by re-planning frequency
Percentage profit by customer, product
Sample Questions
How much are inaccurate reports affecting daily business decisions?
Are we driving our business from accurate gross margins?
What are the true costs of our top 10 customers (or products) against revenue generated?
Potential Benefits
Improved decision making and accuracy
Increased profitability
Build programs to “clone” or leverage most profitable customers / products
12
Why Clients Haven’t Pursued Analytics
“I’ve heard about data analytics, but don’t really understand what it means or how it would benefit us.”
“It required too large of an investment to get started”
“I’m just too busy and short-staffed to get involved with a major initiative like data analytics”
“I’ve looked at several data analytics software packages, but it doesn’t really fit our unique business”
“I already get all the reports I need, why would I want more?’
1313
What is FastTrack! Analytics?
The FastTrack! Analytics is a customizable, cost sensitive, business-issue focused solution-based approach designed to quickly demonstrate the power of analytics to your business
Not a “shrink-wrapped” product that doesn’t fit your business model
Based on accelerators that can be quickly customized to meet your specific business needs
Allows for expansion at your pace
Designed to provide insights into the your most challenging business questions
Not a generic product that doesn’t always provide the answers you need most
Doesn’t require a high up-front investment (in both dollars & resources)
Designed to leverage current in-house technology Allows for expansion at your pace
Customizable
Business Issue
Focused
Cost/Risk Sensitive
1515
How does FastTrack! Analytics Work?
Business Problem Definitio
n
Design/ Development
Demonstratio
n
Next Steps
Confirm the subject area and business problem(s) in scope
Define/confirm the data visualization capabilities required
Decompose the business problem(s) into required data
Confirm the high-level business-centric data model
Determine which accelerator components to use
Assemble the analytics data mart data model
Design/develop the data visualization/ dashboard
Create required roles
Create load utilities
Conduct testing
Prep for demos
Conduct initial demonstration of FastTrack! Solution with key stakeholders
Conduct up to 2 additional demo’s
Document recommendations for enhancements
Review results of demo(s) with FastTrack! sponsor
Determine next steps
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How do Accelerators Work?
Data Visualization Component Library
Default Analytic Views
Data Model Component Library
Extract Specification Formats
Key Reference Data Listings
Accelerators are a collection of analytics components tailored to specific industries and are designed to significantly reduce the delivery time of
analytic solutions
Dashboard formats, designs & templates
Data visualization components
Analysis specific components
Industry specific Logical groupings of
components for business challenges
Dimensions Attribute lists Default hierarchies Subject areas Metrics groupings &
KPI’s
Dimension extract formats
Metrics grouping extract formats
Look-up values Code lists
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FastTrack! Analytics – Solutions Architecture
Source Data
Data Integration
Data Storage
Metadata
User Interface / Presentation
Source Data
Extract files will provide the source data on which the defined presentation and analytics capabilities will ultimately be based.
Data Integration
Load utilities will be used to load extracted source data into the primary data storage structures and components, which will be
accessed by the presentation and analytics capabilities.
Data Storage
Star schemas with flattened hierarchies will structure the underlying data to enable and facilitate the defined analytics capabilities.
Metadata
Metadata and dictionary will provide the business rules and other metadata needed to enable the defined analytics capabilities.
User Interface / Presentation
A basic interactive interface for end-user access, capable of integrating later with an enterprise portal or intranet.
Graphical and tabular presentation of data. Ability for end-user to “drill-down” to deeper, underlying levels of granularity.
1818
Extending FastTrack! Analytics
AdditionalIntegrated
Subject Areas
More Analytical
Views
More Sophisticat
edAnalytics
AdditionalUsers/Roles
ExpandedMetrics
AdditionalData Sets
ExpandedDimensions
Extended to Other
Departments
The FastTrack! Analytics pilot can be extended in many different ways towards the creation of an enterprise analytics platform
