developing and applying constructive analytical intelligence for successful loss prevention
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Developing and Applying Constructive Analytical Intelligence for Successful Loss Prevention. Presented By King Rogers, CEO The King Rogers Group LLC. Definitions. Data Analysis Intelligence Information For Action Video analytics: Video = Data - PowerPoint PPT PresentationTRANSCRIPT
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Developing and Applying Constructive Analytical Intelligence
for Successful Loss Prevention
Presented By
King Rogers, CEOThe King Rogers Group LLC
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Definitions
• Data Analysis Intelligence
Information For Action
• Video analytics:– Video = Data– Software created to make video more intelligent
(i.e.: object left behind, people counting and tracking, people classification [gender, age, etc.], facial recognition, etc.)
IntelligenceAnalysisData
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Definitions (Cont’d.)
• Intelligence Analysts:– Tasked with developing and responding to data
based business intelligence (Big Data) along with many other assignments tossed into their laps by the boss
– 3.7 different roles according to The Data Warehouse Institute
– Many business analysts end up reporting into IT (kiss them goodbye)
– Missing hero potential for Loss Prevention
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Industry Trends
• Security intelligence• Part-time workers• Social media - Brand protection• Video analytics beyond surveillance• Doing more with less• VSaaS• VAaaS (EBR as a Service)
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Business Challenges• Budgets
– R.O.I.• Responsibility for all the negative line items on the Profit
& Loss statement– Food costs as a percent to sales– P.O.S. losses
• Credit fraud• Cash shortages
– Cash-in-transit losses– Shrink– GL/WC– Robberies
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Business Challenges (Cont’d.)
• Part-Time Workers– Pre-employment Screening– On-Boarding– Awareness Programs– Social Media Issues (Branding)
• Technology– Video technology selection and deployment– EBR Software– Network Connectivity
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• A seven year management employee issue was detected, investigated and resolved within two weeks after starting disciplined audit service. Value: $400 a week = about $20,000 per year.
• Manager - Cleared Items Report = annualized loss of $5215.
• Manager – Small Transaction Report = annualized loss of $3671.
Business Case Examples
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Business Case Examples (Cont’d)
• Manager – Reopened Checks Report = annualized loss of $6546.
• Manager - $0 Subtotal Report = annualized loss of $6183.
• Misunderstood discount policy = almost $5000 annualized in one location.
• POS System error created profit erosion to a small chain of $102,000 annualized.
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Business Case Examples (Cont’d)
• Video-based auditing enabling detection of using unauthorized meal discounting (sweethearting) is one of the most frequently detected causes of profit erosion.
• Double discounting quarterly improvement for consecutive quarters was 30% to 36% more in audited restaurants vs. unaudited units.
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Business Case Examples (Cont’d)
• Social Media audits, detection examples:
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Summary
• Rules-based exception software• Maximizing value from video• Analysts: in-house vs. outsourced• Total Cost of Loss Control Ownership
(TCOLCO)
• Why?
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The Why
• P & L negative line item ownership• Brand protection• Profit enhancement
• The five tactics of successful security/loss prevention……………
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Tactics
Recovery Detection
InvestigationResolution
Prevention