The sale of fresh produce is dropping significantly and the ACME supermarkets wish to find out which demographics they should be targeting. The CIO reveals that the company has been collecting sales data and they are able to link a large part of the sales to their customers through their loyalty rewards program “OneACME”. The analytics team of the loyalty program were able to produce the following matrix categorizing frequent shoppers by two demographic indicators, age and occupation.
Your team leader asked that you use your current knowledge and skills of BI tools to design reports that help the team present information to stakeholders at the next meeting.
Discuss in your submission
a. The type of reports you will produce from all or one of the BI tools;
b. What attributes would you include in each of the reports; and
c. Explain why a particular report was chosen and why in a report, those attributes are present and laid out in the fashion you proposed.
To ensure that you discussed (c) properly, you can include visual samples of the reports you will produce for your team, and also include assumptions that you may have made about the underlying data warehouse.
One of the cross-selling initiatives of ACME is to clear products in one channel through another channel so as to keep their inventory across the board “fresh”. One such example cited by the CIO is that any product buildup in their DIY stores are promoted to families, often offering them discounts or incentives such as bonus loyalty points. To do this effectively, the DIY stores need a way to know,
• When a product is selling well and when it isn’t; and
• If a product was cross-sold, how effective was the entire campaign.
The CIO went on to elaborate that the company at the moment deploys different ‘carrots’ for different buyer types. For example, the high-income earners are not so concern about discounts (targeted at low-income earners) but are more interested in incentives such as ‘VIP status’ or invitation to special events so you are to keep this in mind.
Discuss in your submission
a. What are the BI reports (either static or interactive) you will need to produce for the company to manage an effective cross-selling initiative;
b. What are the contents of each BI report; and
c. Explain why a particular report was chosen and why in the report, those attributes are selected and laid out in the fashion you proposed.
Again include visual samples of the reports you will produce for your team, and any assumptions you made for this particular problem.
For financial reporting, the CEO realized that the some of the channels are missing their performance targets. Upon investigation, it was found that many of the reports produced in 2013 were figures that lapsed by up to six months and so any response to the market conditions were very late and no longer appropriate. The investigation also saw that the data warehouse actually contained the required information and could potentially deliver the required performance indicators on time rather than a six month lapse. As a result, the CEO has also asked your team to propose a solution to improve on the company’s ability to track their performance in a more “up to date” fashion
From your team leader’s discussion with the executive team, the following performance indicators common among the different channels were developed for 2014. They include
• Sales revenue over each month, quarter and year for each state, region and suburbs
• Year to date sales versus last year and Year to date profit versus last year
• Top ten selling products (for each channel) and their sales revenue
• Sales for each product category as a proportion of total sales
• Average warehouse hours (for channels with an inventory) in product categories versus last year
Discuss in your submission
a. One BI solution that will meet the needs of this problem;
b. Express (in the form of a diagram) how this BI solution will look like and what components will appear in this BI solution; and
c. Explain your choice of each component in the BI solution for the five performance indicators requested by the CEO and COO. Assume your target audience of this BI solution to be the “sales directors” of each channel within the company.
A much talked about point in the unit is that the BI system must support or align itself to the business needs of the organization. This business needs can be informed and driven by the organisation’s operational needs, strategic plans, and others. Consequently, the notion of “performance management” was later discussed to link and integrate BI with an organisation’s KPIs.
The loyalty program has been a means to reward its customers with gift cards, discounts, and many other items. At the same time, it has provided ACME with a vast amount of data about their customers thus, allowing ACME to perform complex analysis that allows the company to achieve substantially higher returns. This returns are achieved, for example, using marketing campaigns that could be monitored and adjusted in real-time by monitoring the data going into ACME’s enterprise data warehouse. This effectively creates a ‘closed-loop’ system that allows ACME to be very effective in retaining its customers and also potentially, recruit new ones.
Discuss in your submission how this closed-loop marketing system achieves the hallmarks of a BI performance management system that was discussed in this unit?
Standard plagiarism and collusion policy, and extension and special consideration policy of this university apply to this assignment.