BI Experiences at HarrodsBI Experiences at Harrods

(Anything is Possible)

25th October 2006

Martin Draper

BI Experiences at HarrodsBI Experiences at Harrods

(Anything is Possible)

25th October 2006

Martin Draper

Anything is PossibleAnything is Possible

• Recent Marketing Campaign

• Update of Harrods Motto– Omnia Omnibus Ubique – – All Things, For All People, Everywhere

• Capturing the essence of THE customer experience that is Harrods

• Examples …

Anything is PossibleAnything is Possible

• Martin Draper– Business Insight (BI) Controller, HIS– 16 Years in BI (3 at Harrods)

• BI Changes in– Technology– Solutions– Cost (Uptake – “BI for the Masses”)– Terminology

• Little change in Implementation Challenges

What is Business Intelligence ?What is Business Intelligence ?• “Cleverness”, “Working Smart”

• Intelligence in context of– Military, Government, Central..

• Intelligence = knowledge = Power– The Fact that I may know something that you

don’t gives me an edge!!

• Good Intelligence – Makes a Difference

• Bad Intelligence – Catastrophic

• Business Insight

Welcome to HarrodsWelcome to Harrods

• Annual Revenues ~ 610M GBP (in a single store)

• 1.2m sq ft of Retail Space

• 5.25M Visitors Annually (wide demographic)

• 700 – 1,000 Till points deployed

• > 330 Departments generating– 24M Transaction Lines per year

Harrods Multi ChannelHarrods Multi Channel

• Direct Mail

• Harrods.com

• Airports

Retail Drivers TodayRetail Drivers Today

• Margins– Thin margins, Low product profitability– Cost Control

• Competition– Innovation– Customer Service– Mix / Global brands

• Rapid Information Sharing– What, When, Where, How Much?

Harrods DriversHarrods Drivers

• ‘Anything is Possible’

• Multi-Function / Multi Channel

• Product / Brand / Service / Experience Diversification

HIS ChallengesHIS Challenges

• Historically a support service– Tills, Infrastructure etc

• Almost purely a cost, a ‘necessary evil’

• No direct relationship with the business or its strategy.

• Us and Them

• Low Risk ROI

BI HistoryBI History

• Born out of necessity– SAP Replacement RIS not Supported

• SAP B/W– Too expensive– Too time consuming

• Microsoft BI Accelerator (2000)– SQL Server 2000– Analysis Services 2000– Proclarity (300 Users)

BI HistoryBI History

• DW Architecture developed in 3 months– Still the foundation for DW Best Practice at

Harrods

• Training and Workshops conducted over 2 months – Early resistance

BI FactsBI Facts

• Harrods Data Warehouse– Merchandising (Sales, Stock, Inventory,

Orders) 120M Facts– By day, Article, Site….

• Harrods Retail Analytics– Sales (24M rows per year)– By hour, Article, Site, Till, Assistant etc.,

payment.

BI Technical ChallengesBI Technical Challenges

• Article Dimension– 2.0 M active members (4M Catalog)– Memory limitations for incremental update

• Multi-Server deployment– Due to resource limitations

• Processing window– More data, less time (Sunday trading and

extended hours)

Culture ChangeCulture Change

Deployment of Business Intelligence on Microsoft Platform has been one factor leading to the recent change in the perception of IT at Harrods because we now we can

– SUPPORT STRATEGIC PROJECTS– Deliver Quickly– Offer LOW TCO, HIGH ROI– Demonstrate New, innovative Capabilities– Deliver to the Desktop, maintain ease of use.

So What!!So What!!

SalesStock

Orders

OTB

Plans

footfall

Productivity

Commissions

CRM

Margin

Brand, Style, Size

Weather

Sell Through

Payment Types

Payment Regions

Cross Sell

KPI

Refunds

The FutureThe Future

• Harrods Business insight Programme– Direct to strategy– SQL 2005 Core– Third Party Providers– 64bit AMD Architecture

Customer Insight

•Single Customer View•Campaign Management•Contact Management (CRM)•Segmentation & Profiling•Basket Analysis•Harrods Rewards

Merchandise Insight

•Merchandise & Assortment Planning•Revenue Optimisation

Performance Insight

•KPI Dashboard / Scorecard•Profitability Analysis•Forecasting & Planning

Operational Insight

•Data Warehousing•OLAP Reporting•Loss Prevention•Fraud Analysis

Business

Insight

Operational & Performance InsightOperational & Performance Insight

• Build on Current BI understanding– Robust, Reliable, Scaleable, Affordable

• Redevelop ETL

• Single source for all analytical data

• Better Desktop integration

• Portal Capability (best tool for the job)

Operational & Performance InsightOperational & Performance Insight

• Microsoft SQL 2005 Server & Analysis Services

• Integration Services• Reporting Services• Office 2007• PerformancePoint Server

– Scorecard– Analytics – Planning

MilestonesMilestones

• Customer Insight– End 2006

• Merchandise Insight– 2007

• Operational & Performance Insight– On going 2 streams

• Technical ETL• Solutions

LessonsLessons

• Be Brave, OK to start small or even by stealth or accident

• Prepare to be a Victim of your own Success• Don’t be afraid to educate & innovate, POC is

the best tool for visualisation. • Aim to support strategy, no-one can complain

(well almost). Helps with ROI• Anything is Possible (just don’t tell everyone)

QuestionsQuestions

?