Optimizing BI ROI In Retail
With such high competitive pressure in the retail industry, it
imperative that return on investment [ROI] be measured at both functional
and corporate level.
This is especially true for technology investments, yet many retailers
are not effectively exploiting technology to optimize their ROI.
They tend to focus on single point solutions that are designed to
solve a particular objective. The opportunity to fulfill multiple
needs with a common solution is often overlooked.
This could apply to a point of sale system or an operational transactional
system. Whilst each may adequately fulfil their respective functions,
the ROI is not fully optimized if the information captured cannot
be extended to other parts of the business, to support consistent,
single version of the truth analysis and planning.
Without such an integrated approach, the system is not able to
be leveraged to provide retail business intelligence throughout
An integrated Business Intelligence solution identifies questions
across the company, the answers of which address its:
- Operational planning
- Marketing - advertising, promotions
- Vendor analysis
- Supply-chain collaboration
The real value of business intelligence lies in improved productivity
and better analysis. Well executed it reverses the 80/20 information
challenge - where previously a business user would expect to spend
80 percent of their analysis time extracting information, and 20
percent on the actual analysis. A BI system reduces the time to
get the information, and instead allows a much greater amount of
time to analyse and act on information gained.
A retail system that combines merchandising, operational and financial
reporting with payroll analysis and planning in one common analytical
platform can reduce the time taken to produce its monthly management
reports from five days to only two hours.
Being able to evaluate results and then make decisions in near
real time is extremely valuable for any business.
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More Detail on Retail BI Strategy, Program & Technology
Index | BI Strategy | Complexities
| Barriers | Retail
IT Systems | BI IT Optimisation
| BI Evolution | Integrated
Retail BI | Implementation
| Business Benefits | RMS