1. BI Experiences at Harrods (Anything is Possible) 25 th October 2006 Martin Draper

3. BI Experiences at Harrods (Anything is Possible) 25 th October 2006 Martin Draper

4. Anything 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 …

5. Anything is Possible

6. 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

7. 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

8. Welcome 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

9. Harrods Multi Channel Direct Mail Harrods.com Airports

10. Retail 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?

11. Harrods Drivers ‘Anything is Possible’ Multi-Function / Multi Channel Product / Brand / Service / Experience Diversification

12. HIS 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

13. BI 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)

14. BI 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

15. BI 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.

16. BI 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)

17. Culture 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.

18. So What!! Sales Stock Orders OTB Plans footfall Productivity Commissions CRM Margin Brand, Style, Size Weather Sell Through Payment Types Payment Regions Cross Sell KPI Refunds

20. The Future Harrods Business insight Programme –Direct to strategy –SQL 2005 Core –Third Party Providers –64bit AMD Architecture

21. 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

22. Operational & 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)

23. Operational & Performance Insight Microsoft SQL 2005 Server & Analysis Services Integration Services Reporting Services Office 2007 PerformancePoint Server –Scorecard –Analytics –Planning

24. Milestones Customer Insight –End 2006 Merchandise Insight –2007 Operational & Performance Insight –On going 2 streams Technical ETL Solutions

25. Lessons 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)

26. Questions ?