leverage analytics for decision support and improved retail performance
DESCRIPTION
In an industry with razor thin margins, being profitable requires leaders to make the best use of every resource available. When you join this Webcast you’ll hear how retailers like Romano’s Macaroni Grill are using Business Analytics to manage strategic direction using actionable reports, scorecards, dashboards, and financial/operational plans for greater performance and profitability.Webinar attendees will learn how the Macaroni Grill, a leader in upscale casual dining with more than 220 locations, is supporting decisions with analytics and moving beyond basic financial reporting using Perficient’s Retail Pathways™ solution. You will hear how they evaluate leading indicators and use analytical processes to efficiently produce actionable information for improved corporate performance.In this webinar, learn how Perficient's Retail Pathways is helping companies like Macaroni Grill use business analytics for:Market Basket AnalysisStore/Restaurant PerformanceExecutive, Operational & Sales DashboardsCustomer Ad-Hoc Analysis ReportingBenchmarking, Ranking & ScorecardsInter-Departmental CollaborationLabor, P&L and General Ledger Planning and InsightsPerficient’s Retail Pathways™ solution is a three-time award-winning analytical solution built on IBM’s Cognos10 platform. Retail Pathways™ incorporates pre-defined reports and dashboards around a common data architecture and is supported by Perficient’s retail practice group, an inter-disciplinary team, composed of individuals with backgrounds in retail, business process, systems architecture and design.SpeakersTim Dungan, V.P. of Planning and Analysis for Romano’s Macaroni GrillMacaroni Grill recently completed an overhaul of reporting and analytic systems using Cognos Express product solutions. Mr. Dungan has over 20 years of operations, accounting, and finance experience in the hospitality space with Planet Hollywood, Dave & Buster’s, and Ruth’s Hospitality Group. Erik Duffield, Director of IBM Business Analytics Retail Practice, PerficientMr. Duffield specializes in Retail Performance Management and Corporate Finance. He leads the Retail Practice organization for Perficient and works extensively with organizations looking for material change in performance. His expertise is developing organizational metrics to drive performance through a more effective, analytical understanding of the business.TRANSCRIPT
AGENDA
PERFICIENT
• Retail Industry & Drivers for Analytics• Market Basket Analysis• Retail Pathways™ & PerficientROMANO’S MACARONI GRILL
• Store/Restaurant Performance • Executive, Operational & Sales
Dashboards • Customer Ad-Hoc Analysis Reporting • Benchmarking, Ranking & Scorecards • Inter-Departmental Collaboration• Labor, P&L and General Ledger Planning
and Insights
Erik DuffieldDirector, Retail & Finance Analytics
[email protected] 303-629-9206
Tim DunganVice President Financial Planning& Analysis
Perficient Profile
Ideally positioned as the GO TO Partner for IBM
An IBM “5-Star Premier” Business Partner since 1997 SVP, SVI and VAP Authorized Reseller across all Brands in U.S. Healthcare and Retail Industry Authorized Solution provider IBM Lab Services (ISSL, ISSW and ISSIM) go-to market partner IBM Education Authorized Training Partner/ATP and Training reseller
Thriving and Growing Organically and via Acquisition Public, NASDAQ: PRFT 1700 Colleagues $250 M 2011 Revenue Run Rate Local Sales/Delivery offices Offshore Development Center in Hangzhou
China
IBM Recognition Business Analytics Award Winner - 2012 IOD Best of Show “Retail Pathways – 2011 Lotus Most Distinguished Partner – 2006, 2008, 2011 2010 IOD Industry Warehouse Pack Partner of the Year 2010 Impact Smarter Decision Management Award Winner 2010 Lotusphere Best WebSphere Portal Solution – Finalist
Areas of Work
•
Analytics / Strategy
• Best Practices• Predictive Models
Information Delivery
• Portals / Mobile• Dashboards • Reporting
Data Modeling• Analytic Structures• Standardization• Performance
Data Integration• Cleansing• Quality• Performance• 3rd Party Data
Data Discovery• Profiling• Gap Analysis • Availability / Perform.
Governance & Competency Center
Financial Transformation
• Benchmarking• Process Engineering
Consolidations & Reporting
• Compliance• Governance
Budgeting & Planning
• Best Practices• Demand Planning• Risk Mgmt
Retail, CG, Hospitality, Restaurants
Finance Transformation
Improve Close / Consolidations
Driver Based Planning
Ladder PlanningOpen-To-Buy
Labor Planning
Managerial AnalysisRetail Analytics
Market Basket AnalysisChannel Profitability
With/ InfoSphere, RBIS
Operations Management
Speed of Service MetricsRestaurant Scorecards
BICCData Management
Annual Budgeting
Financial PlanMerch / Revenue
PlanningFinancial Analysis
Customer / Promotion
Customer Seg. ModelMarketing Promotion
Mgmt
Others:
The intersection of high volume, multivariate data with financial models.
Our WorkIndustry Expertise
Information Management Business Analytics Financial Performance
Polling solutions for reliable, cost saving data acquisition
Analytical data models supporting industry best practices analysis
3rd party data in for mystery shop, web comments, demographic data, etc…
GL integration
Transaction level Market basket / affinity Customer / loyalty Food cost reporting Labor Fraud / Discount Revenue assurance Speed of service Menu placement Bundling & “your way” Marketing and promotions Pricing Multi channel Competency Center
development
Budgeting / forecasting Demand planning / sales
forecasting Capex / new store models Franchise models Cannibalization models Finance organization
benchmarking
Perficient’s Retail Pathways™ utilizes IBM Cognos Analytics for Finance, Operations & Market Analysis
Basket & Traffic
Metrics
Customer Grouping &
Loyalty
Operational & Financial
KPI Tracking
Up-sell & Cross-sell Evaluation
IBM Retail Industry
Authorized
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Data to Information
General Ledger
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Analytical Pathways
SSS: + 0.55%
Traffic : (0.33)%
Avg. Ticket: + 0.88%
Mix : (1.56)%
Price : +2.44%
Marketing Spend
Secret Shopper
Speed of Service
Scenario: You take pricing on selected items amounting to a weighted average 2.44% - based on the current mix.
Your Retail Pathways systems alerts you that your +2.44% price increase was off set by a (1.56)% in Mix shift and a 0.33% decline in Traffic resulting in only a +0.55% SSS increase and negative trends in Traffic and buyer behavior.
Having the relationships of leading indicators defined and the information visible enables proactive management.
Strategic Context
Baseline Trajectory
Strategic Plan
@RiskPlan
Specific initiatives to drive discontinuous change
Financi
al
Perf
orm
ance
History Future
Specific metrics to watchin managing risk
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Romano’s macaroni grill
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Established in 1988
Former Brinker Portfolio Concept (Chili’s, Maggiano’s, On The Border)
Purchased in 2008 by Golden Gate Capital (Private Equity Firm)
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182 Company / 36 Franchise
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Multi-million brand renewal
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Menu refresh
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Mezzo prezzo
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Why bi? Why IBM Cognos?
• Reporting post-Brinker– New point-of-sales, back office, and Accounting systems
• Reporting Void – Dark for 3 months ~ zero reporting – Consolidation issues ~ rollups by Region, etc.– Manual processes
• IBM Cognos Express– Previous experience with IBM Cognos
• Finding Perfect Consulting Partner - Perficient
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How are we set up?
A. Planning & Analysis maintains Cognos Framework
B. IT Mantains Polling Responsibility
C. Executive or Operations Mandate Dashboard Content
D. Content Accessible thru internal Intranet
E. Ad-Hoc Analysis performed by Finance
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What are we doing today?
A. Providing Business Users value added content
B. Dashboarding for Executive Team
C. Dashboarding for Operations Team
D. Analysis Team more Customer oriented with Ad-Hoc
E. Inter-Department Collaboration
Romano’s macaroni grillReporting and analytics - current
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Balanced scorecard
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Mac grill - Sales dashboardSales Dashboard provides Leadership Team quick access to Sales related statisticsby Region, Area, State, DMA, Marketing Tier, and Restaurant levels.
Mac grill – sales reportingReporting allows Leadership Team ability to see results across organizationby day, week, and defined time periods customized for brand.
Mac grill – benchmarkingFor a Company of our size, Benchmarking becomes the emphasis forcomparison purposes. You gain insight from category leaders.
Mac grill – rankingCompliment to Benchmarking is Ranking. Allowing Leaders to see how they stack up against similar volumes. Adds healthy competition.
Mac grill – picturesPictures or Graphs, technically. Some would rather view charts thentables with numbers. That capability exisits with our current dashboarding.
Mac grill – menu reportingUntil recently, we were unable to view menu performance on a consolidatedbasis. We now have insight at enterprise, region and restaurant level. Allowingfor better labor and procurement planning.
Mac grill – complimentary transactionsIn all restaurant operations there is a level of discounting and complimentarytransactions taking place. Leadership can now view these types of transactionsat the lowest level.
Mac grill – check detailEasy to view Check detail across system for all locations.
Mac grill – ad hoc queryAd Hoc for Team is critical to answer Leadership questions on the fly. Expressprovides flexibility and access to data that wasn't present before.
Mac grill – general ledgerAs part of System transition, General Ledger processing was moved to third party.With Express we now have flexibility to provide robust P&L analysis that neededto be contracted out with third party.
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scorecard
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Plans for the future?
A. Expanding Source Data
B. Enrich Team Member Experience with Training
C. Develop Planning Models
C. Increasing Users
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Conclusion
Erik DuffieldDirector, Retail & Finance Analytics
www.macaronigrill.com