BI in FMCG Industry - Raj Basu: ©company Confidential
BI in FMCG Industry - Raj Basu: ©company Confidential
BI in FMCG Industry - Raj Basu: ©company Confidential
- Raj Basu
©Company confidential 1
Major changes in FMCG industry
• Indian Consumer changes
• Larger disposable income
• Middle class segment bulging
• Greater global exposure
• Greater appetite & demand for global products
• Differentiated product & service requirements
• Customer Analytics
• Trade Promotion Analytics
• WD Profitability
• Outlet performance
• Channel Analysis
• Integrated Consumer Demand & market performance visibility
©Company confidential 3
Key BI Trends in the FMCG industry
• Major Indian FMCG players are making rapid strides in enabling Business &
Competitive intelligence as a key differentiator
• Most of them are already deep into state of art Business Intelligence
• ability to check on an outlet consumption pattern on a handheld before
meeting the owner
• ability to analyze secondary sales based promotions rather than primary
uptake
• ability to provide outlet based actionables rather than market level inputs
like OOS, poor AVF scores etc
©Company confidential 4
EPM Objectives
FMCG majors are interested in implementing a Performance Management (PM)
program across the enterprise, in order to align goals and strategies with
operational objectives, plans and responsibilities within the organization.
Incr Share
Superior
Holder value
Insight
Consumer
Sustained Effective Model To Identify Capability
Develop
Profitable growth Measure PerformanceDevelopment Needs
Accelerate Improve
Organic Growth Productivity
Key
Business
HR Effectiveness
Benefits
Business
Performance
Strategy Communication
Closed Loop - Feedback
Strategic
Objective
Unit
Objectives
Individual
Objectives Level 2 : Units
©Company confidential 5
Classic Balanced Scorecard Framework
Effect Results
Financial “Profitability” To Satisfy our shareholder, what
financial objectives must
“Return on Capital Employed”
we accomplish
Cause Action
To achieve & maintain our competitive
Learning “Knowledg position, how must the organization
& Growth e” the Organization learn & improve
“Innovatio
n”
Balanced Scorecard incorporates a double loop feedback around both internal business processes and external outcomes
©Company confidential 6
Decision-making challenges at ITC Businesses
Organizational Alignment
• Business Performance Mgmt – Executive, Functional, Unit Level Scorecards
• Employee Performance Mgmt – Personal Scorecards
©Company confidential 7
EPM driven BI at a US Food Distribution Major
Strategic Strategic
Goals Metrics/Scorecards
Some Analysis Areas Some Analysis Areas Some Analysis Areas Some Analysis Areas
• General Analysis • Spend Analysis • Delivery Effectiveness • General Analysis
• Sales Force Effectiveness • Supplier Performance • SKU rationalization • Segmentation Analysis
• Trade Promotion Analysis Effectiveness • Contract Compliance
Effectiveness • Item & Brand Analysis • Backhaul Effectiveness • Business Review Analysis
• Marketing Effectiveness • Bid Analysis • Carrier Performance • Customer Profitability
• Market Analysis • Competitive Analysis Analysis Analysis
Business Functions - Functional Metrics, Reports, Alerts, Scorecards, What-If Analysis, Guided Analysis
©Company confidential 8
A single BI System should support the EPM Model
Performance Management Model
• Scalability
• EPM, Data, BI Model
• System Performance
• Integration
• data linkages
• business rules
Outlet Sales, Invoices, Purchase Orders Business Plan, Forecast, A/R, A/P,
Inventory, Transport Orders, Stock Tr Orders,
Data Warehouse Visual Merch Audit, Production Plans,
Salary Advice, re-distribution Costs (Data Storage) Market Research, Production Jobs
Source Systems
TM&
SAP Visual Audits HR Perf
Sales Force
& CRM WD System Excels PLM HRMS
©Company confidential 9
Some benefits of integrated modeling for FMCG
©Company confidential 10
Typical BI Transformation Roadmap
Major Organization Transformations…..
…Need a Performance Mgmt & BI Transformation to empower & measure effect of transformation !
BI Transformation Roadmap
Define Create
EPM & BI Define BI BI
Performance Mgmt BI Governance BI Value Mgmt
Workshops BI Strategy Implementation Change Mgmt
Model Model
©Company confidential 11
BI Program Change Mgmt Challenges & Strategy
An effective Change Management strategy for BI Program starts at the Kickoff and ends at satisfactory system adoption and positive customer
feedback. However, Change Management is an ongoing process and is part and parcel of an effective BI Governance Model. bringing
people on board, convincing them of the value, goading them to use it the right way, measuring business improvements.
BI, being a non-critical business application needs cultural process changes to leverage the investment, which makes it even more challenging
and critical aspect of achieving success
Key Questions for Change Mgmt Planning
What will change ?
Change Why will it change ?
How will it change ?
Who will change it ?
BI Business Case
Service & Maintenance
Service Model Service
•Unique
Service Sales & Customer view
Service
(Outsource, Vendor Selection •Unique
Quality Spend & vendor
Improvement
view
Managed BI Svc) Management
•Supply chain wastes
•Asset utilization gaps
Governance•Higher
Model employee productivity
•Greater IT ROI
Organization
•Single Analysis
Customer Risk Value Platform across biz
Focus Management Assessment Alignment
areas
•Excel intelligence democratization !
©Company confidential 13