Retail Power Product Overview March 2008 Table of Contents Retail Market Overview ...................................................................................................... 4 Retail Power Product Overview.......................................................................................... 4 Command Center ................................................................................................................ 6 Operational Performance Management .......................................................................... 6 Strategic Management Analysis ..................................................................................... 7 Market, Customer and Product Survey ........................................................................... 8 Supply and Demand Analysis ......................................................................................... 9 Strategic Business Discovery........................................................................................ 10 Operations Center ............................................................................................................. 11 Product Value Management .......................................................................................... 11 Retail Floor Performance Optimization ........................................................................ 12 Retail Profit Analysis & Customer Value Management ............................................... 13 Sales Analysis ............................................................................................................... 15 Key Retailer / Hot Store Analysis ................................................................................. 15 Localized Product Assortment ...................................................................................... 16 Marketing Center .............................................................................................................. 17 Visual Behavioral Marketing ........................................................................................ 17 Customer Retention & Acquisition............................................................................... 18 Promotion & Incentive Analysis ................................................................................... 19 Command Post .................................................................................................................. 21 Active Customer Manager ............................................................................................ 21 Active Customer Service .............................................................................................. 22 Active Customer Self-Service....................................................................................... 23 seePOWER Masters .......................................................................................................... 25 seePOWER Confidential Page 2 of 44 Appendix A ....................................................................................................................... 26 Command Center PowerView Family .......................................................................... 26 Time Stripe Visualization .......................................................................................... 26 Enterprise Visualization ............................................................................................ 27 Supply and Demand Visualization ............................................................................ 28 Product Performance Visualization........................................................................... 29 Strategic Contour Map Visualization ........................................................................ 30 Strategic Hexagonal Map Visualization .................................................................... 31 Strategic Grid Visualization ...................................................................................... 32 Segmentation Discovery Map Visualization ............................................................. 33 Financial Performance Visualization ........................................................................ 34 Network Map Visualization ...................................................................................... 35 Segment Ecosystem Map Visualization .................................................................... 36 Budget Performance Visualization............................................................................ 36 Command Center PowerView Family .......................................................................... 37 Descriptions of Operations Center PowerView Family ................................................ 38 Operations Center PowerView Templates .................................................................... 40 Descriptions of Marketing Center PowerView Family ................................................. 41 Marketing Center PowerView Templates ..................................................................... 42 Descriptions of Command Post PowerView Family .................................................... 43 Command Post PowerView Templates ........................................................................ 44 seePOWER Confidential Page 3 of 44 Retail Market Overview Retailers today are collecting more information than ever from many different sources, including barcodes, scanning systems, Point-of-Sales, Self-checkout, and Coupon redemptions. All this information contains pertinent information that retailers could use to more effectively manage their businesses. With margins getting smaller, retailers need to see and manage all areas of operations to enable them to be successful in a rapidly changing marketplace. According to the Grubb Ellis Retail Market Trends Report, published in 2007, the retail market is still expanding with high-profile retailers like Kohl’s and JC Penney entering many new markets. Retail is the second-largest industry in the U.S. by number of businesses and number of employees. Retail sales in the U.S. (total retail sales include the categories of gasoline, automobiles, and food service) were up about 3.8% in 2007, to $4.49 trillion (Plunkett Research estimate). Meanwhile, competition among retailers has never been tougher. A retailer without a significant competitive advantage doesn’t stand a chance. Superstores are battling each other on every major corner while direct marketers (including catalogs and online sites) are stealing customers from stores. Online selling at deep discounts is even making immense inroads into major consumer purchases such as jewelry. For example, discount Internet-based diamond seller Blue Nile is enjoying booming sales. Retailers need to take advantage of visual business intelligence to help them maintain and expand their customer base while keeping competitors at bay. Retail Power Product Overview Figure 1: Retail Power Overview seePOWER Confidential Page 4 of 44 seePOWER enables a new paradigm to drive revenue and profits from store operations and customer data for quicker business insights for marketing, merchandising, store operations and finance. seePOWER is a world leading Visual Business Intelligence platform that highlights business and category performance. See customer behavior across the store planograms and maps. Transform thousands of data points into pictures about your business in real-time. seePOWER Retail is a visual business intelligence solution designed to meet the operational and marketing management demands of retailers. seePOWER uses data visualization tools in conjunction with advanced analytical capabilities to assist stock and sales, customer behavior and basket assessment and management. It provides the only feasible way to handle the vast quantities of data that retail sales and large customer loyalty programs generate. The visualizations deliver intuitive, rapidly consumable summaries of various marketing and operational aspects of the retail operation. They identify areas of concern and areas worthy of further investigation. Retail Power is made up of four major analytical offerings: Command Center – strategic visualizations for sales and retail management. Enables retailers to see financials, operating expenses, sales costs by market, customer or store. Have a comprehensive view of the overall enterprise – sales, distribution, marketing, promotions – and the outside world – customers, markets and stores. Operations Center – Information is organized geographically for markets, stores and products to quickly spot business opportunities. Enables merchandising, sales management, and field sales managers to have one view of the business to quickly gain regional, territory, district and product perspective. Animate day over day, week over week or month over month performance information. Marketing Center – Provides metrics driven analysis for customer preferences, behavior and geo-demographics to pinpoint opportunities for more profitable marketing execution. Allows direct interaction with customers and changes to marketing programs in real-time. This means retailers have a better understanding of customers preferences, behaviors and geo-demographics to determine what promotions work in which market and for which group of customers. Command Post – Delivers real-time data to store managers and staff so they know who the highest yield customers in the store are. They can then provide more proactive service, real-time incentives and upsell offers directly to the customer. Each of these offering is made up of data visualizations – seePOWER Views – that leverage a metrics driven set of analytical tools and servers. Retail Power leverages the Teradata Enterprise Data Warehouse. The Retail Power solution is delivered with a proven deployment and education methodology by both seePOWER and Teradata professional service teams. seePOWER Confidential Page 5 of 44 Command Center Strategic visualizations for sales and retail management Command Center enables business managers and executives to have a top-down view of the business seeing overall financial, market, sales and operational performance. Operational managers can use metrics to see inside and outside the enterprise to pinpoint opportunities to more profitable business execution. Command Center PowerView visualizations are designed to enable five major analytical areas: Operational Performance Management - See financials, operating expenses, sales costs by market, customer or store Strategic Management Analysis - Have a comprehensive view of the overall enterprise – sales, distribution, marketing Market, Customer and Product Survey - Have a comprehensive view of the outside world – customers, markets, promotions Supply and Demand Analysis - see where product and customers meet to better understand store and distribution center placement Strategic Business Discovery - see new things about your business Operational Performance Management See financials, operating expenses, sales costs by market, customer or store Consistent with many retailers, management is measured on their ability to operate on budget and lower expenses, while maintaining tight margins when possible. Operations needs to closely control expenses to help the company meet profit goals. Figure 2: Top-line Financial Analysis The Operational Performance Management includes the following analysis capabilities: Track operation expenses versus budget Comparison of actual expenses versus plan or year ago Overtime expense exceptions Analysis of employee turnover by area Comparison of employee turnover versus other seePOWER Confidential Figure 3: Actuals vs. Target Page 6 of 44 areas Track average starting salary, length of service, ending salary Compare store expense performance versus other like stores, versus district and chain Comparison of actual expenses versus plan or year ago Expense variance analysis for store versus district/region/chain Overtime expense exceptions by market/store/district Ranking of employee turnover by market/store/district Strategic Management Analysis Have a comprehensive view of the enterprise – sales, distribution and marketing In order to run any business there must be a financial plan that projects sales, expenses, and profits for the company. In retailing this planning process requires the input and allocation of the merchandise financial plan by the merchants. Planning, reporting, and analysis on a range of financial performance indicators including sales, markdowns, gross margin, gross profit, and inventory turn is critical in identifying and acting on potential profitability problems early in the planning process. The Strategic Management Analysis example provides an “inside” view of the overall business to: Visualize enterprise performance See geographic maps for top-down analysis Drill to floor plans to gain a street level view of the business Leverage strategic visualization and time series analysis Visualize financial data by market, store, product, supply chain Determine plans based on history Visualize monthly profit/loss by market, store, product, supply chain Visualize financial variances by key revenue/expense category Track gross margin performance by market/class, store, product, supply chain Highlight profit problems by classification Analyze impact of markdown spending seePOWER Confidential Figure 4: Strategic view of business Page 7 of 44 on gross profit Rank top/bottom performers on profit, turn, sales Visualize financial performance versus plan, year ago. See forecasted year-end profitability based on current rate of performance Market, Customer and Product Survey Have a comprehensive view of the outside world – customers, markets, promotions Management needs to see the overall market (the outside of the business). Today this is often done with Internet dashboards. The retail business has large number of markets, distribution channels, stores, and customers with large numbers of transactions and it is often difficult to understand the strengths and weaknesses of the business due to this complexity. Market, Customer and Product Survey enables executives to better see the outside world / market to: Gain insight into detailed data that is lost in summaries to find new opportunities Acquire a new understanding from market reporting & analysis and also see beyond tactical reporting to high value strategic analysis Gain control of large numbers of transactions – sales, call detail records, financial transactions See large markets, distribution channels, stores, branches, numbers of customers Better leverage the extensive investment in business infrastructure with many lines of business and vast organizational depth See the strengths and weaknesses of the company that are masked by the complexities of the market and the enterprise seePOWER Confidential Figure 5: Comprehensive Market & Customer View Figure 6: Comprehensive Product View Page 8 of 44 Supply and Demand Analysis See where products and customers meet Today, retailers require more flexible distribution models to be able to react to quickly changing market trends. They need to be able to see possible shortfalls and also potential overstocks for their products so they can take action to correct these imbalances. seePOWER Supply and Demand Analysis enables retailers to generate more accurate demand forecasts as well as enabling them to build stronger, more collaborative relationships with vendors and suppliers. Supply and Demand Analysis allows retailers to: Figure 7: Demand Analysis Optimize inventory productivity and profitability. Improve margins by removing unprofitable and low-selling items. Ensure top sellers are in stock. Proactively manage seasonal inventory and promotional items. Optimize product assortments so that they match your most valuable customer needs Ensure that different stores in different regions have the best mix of product for their particular customers. seePOWER Confidential Page 9 of 44 Strategic Business Discovery Discover new things about your business All organizations need to keep up with opportunities and potential threats so they can maintain a competitive edge and enhance their overall profitability. Retailers can take immediate action to act on potential new opportunities and mitigate the potential of unforeseen threats while constantly striving to maintain shrinking profit margins. Strategic Business Discovery enables retailers to discover new things about their environment and provides users with a comprehensive view of their overall enterprise. By providing immediate insight into business performance at a microscopic level, retailers can use this information to gain a significant competitive edge. Figure 8: Financial Discovery Map Strategic Business Discovery enables retailers to: Visualize enterprise performance See geographic maps for top-down analysis Leverage strategic visualization and time series Figure 9: Segmentation Discovery Map analysis Visualize financial data by market, store, product, supply chain See monthly profit / loss by market, store, product, supply chain Track gross margin performance by market / class, store, product, supply chain Highlight profit problems by classification Analyze impact of markdown spending on gross profit See forecasted year-end profitability based on current rate of performance seePOWER Confidential Page 10 of 44 Operations Center Market, store, product and sales visual analytics Operations Center enables retailers, sales managers and store managers to see product sales from a geographic (regional, territory, district), store floor and planogram perspective. Mangers can see metrics for volume, pricing, promotion, revenue, cost and profit overtime in animations, as well as seeing day over day, week over week, or month over month performance. With Operations Center business analysts will be able to quickly pinpoint opportunities for profit improvement on a per product basis to better serve their retail customers. Operations Centre is comprised of the following visualizations: Product Value Management - Analyze product performance per store versus comparable stores, venues, markets and regions Retail Floor Performance Optimization – Analyze floor space utilization as directed by POS data Floor/Shelf Space Allocation Retail Profit Analysis - Determine store and product profit contribution; comparisons of store contribution; and causal factors Sales Analysis - Determine and communicate sales, product and retail performance Key Retailer / Hot Store Analysis - Where are the hot stores and why are they hot? Localized Product Assortment - What are these retailers selling and where? What should they be selling to optimize profits and revenue? Product Value Management Analyze product performance per store versus comparable stores, venues, markets and regions. Retail product planning requires an extremely wide range of analysis. The business problem is determining what products to place. Analysis of the different elements will lead to an optimal mix of products being utilized. In order for the retailer to be successful they must be able to understand product value and it’s impact on overall profitability. The Retail Product Value Management use case example demonstrates how retailers seePOWER Confidential Figure 10: Volume Analysis 11 of 41 can apply historical sales data, seasonal variations, and other external factors to see holes in retail plans; better see product purchase opportunities based on sales, stock, on order; track sales for specific classifications or items; see comparison of sales to plan or last year; highlight fast/slow selling products; and see actual versus plan. Leveraging an extensive KPI list, product and marketing analyst’s ability to perform analysis is expanded greatly to: See which products work best together to attract customers See product performance over any period of time See which customer segments are attracted to which products over time or at a given time See the impact of service on kiosks and POS devices See the product performance over any period of time and market basket “pull” of these products over time See the impact of incentives on market basket performance. Rank product performance by classifications by department, by store Retail Floor Performance Optimization Analysis of floor space utilization as directed by POS data Floor/Shelf Space Allocation At each store location there is a need to determine which products are leveraging floor space in a way that optimizes their ability to generate sales and profits. Integrating store space information with item sales and profits will help retailers better focus their assortments in each store location. At each store location there is a need to ensure that products are allotted space in line with their ability to generate sales and profits. Integrating store space information with item sales and profits will help retailers better focus their assortments in each store location. Each Retailer has a map of their market that shows business performance based on the KPIs of interest. The retailer can then drill down to the specific store (or planograms) to see underlying trends and characteristics that pinpoint opportunities for better up-sell and market basket performance. Product and seePOWER Confidential 12 of 41 marketing analysts will be able to determine the right product arrangement and assortment to optimize the yield of the retail floor. With the Retail Floor Performance Optimization example retailers can: Visualize floor/shelf space performance into a range of analysis groupings Analyze sales and profit vs. shelf space by store Compare sales and profit vs. shelf space by classification, category, program, or item Quantify the cost of shelf space and the management of shelf space allotment by store to maximize sales and profit Retail Profit Analysis & Customer Value Management Determine store and product profit contribution; comparisons of store contribution; and causal factors. Who are your most profitable customers? Where do they buy? How much do they buy? Retail success is measured by the ability to meet sales and gross margin targets. To accomplish this, retailers need to determine the product mix that is not only saleable, but also profitable. For example, if a retailer focuses on the sales side only, they might select an assortment of high volume items which do not deliver on profit goals. Conversely, a highly profitable mix of items could turn slowly and fall short of revenue targets. As retailers have increased the number of stores they operate, management needs to be able to measure the profitability of each location. The profitability of each store is affected by the mix of merchandise they sell, demographics of customers in their catchment area, as Figure 12: Product & Market Performance well as the expenses of running the store. per store This process has become more difficult as companies have expanded nationwide and globally. Effective marketing segmentation requires in-depth understanding of the customer. This includes everything from demographics, to buying preferences, to frequency of purchase, to market basket profitability. Retailers want to understand the business at household levels. This capability is implemented through the definition and targeting of customer profiles. Currently, tremendous information is available across retailers on customer seePOWER Confidential 13 of 41 demographics and buying patterns. Companies are capturing this information through point of sale terminals, customer surveys, and from third party providers of demographic information. Through Retail Profit Analysis & Customer Value Management, retailers will be able to gain a better understanding of the customers’ preferences, behavior and geodemographics; identify long-term trends and short-term changes in customer behavior by automatically monitoring groups of customers over time; identify high value and low value customers by monitoring their spending and visitation patterns over time; reduce mail-out costs by identifying customers who don’t respond to promotions and improve customer loyalty and participation by better offers to customers. From the Retail Profit Analysis & Customer Value Management example retail store profit can be visualized to see store profit contribution; comparisons of store metrics; and the analysis and comparison of causal factors in variance of profitability between stores and customers. The Retail Profit Analysis & Customer Value Management enables retailers to analyze product profitability to: Evaluate the profitability of product and product classifications by department, by store Calculate profit contribution of each product and product group Identify top/bottom product on sales and profit Analyze inventory turn by classifications Highlight problem groups based on declining profits Highlight classifications with increasing profits Identify product groups by gross margins versus plan Figure 13: Sell Through Analysis Project future profits based on historical group performance Establish the right store layout for optimal product profitability Determine the typical market basket of top products. Determine how well stores are organized to optimize market basket opportunities by product See where the most profitable products are placed Determine the impact of customer demographics on product profitability Determine the typical market basket of our top customers. Determine how well stores are organized to optimize market basket opportunities See where the most profitable customers live What is the impact of demographics on customer profitability? seePOWER Confidential 14 of 41 Sales Analysis Determine and communicate sales, product and retail performance Sales managers must work hand in hand with retail management to deliver the highest quality of goods at the optimal price. The retailer- vendor relationship is one of constant negotiation over factors that must be managed by the sales force including: price, merchandise return agreements, markdown allowances, cooperative advertising, and shipment performance, all of which impact gross margin. For the retailer to negotiate from a position of strength, they need to: Evaluate the impact of a particular retailer‘s performance based on key measurement criteria Show how merchandise is moving in a store Determine the impact of ad/allowance spending Show product delivery performance Understand revenue and profitability by store Track sales performance Highlight sales exceptions where performance falls below acceptable levels Visualize sales versus forecast by product and store Figure 14: Product & Promotion Performance over time Key Retailer / Hot Store Analysis Where are the hot stores and why are they hot? A Sales Manager (or Retailer) starts with a map of the US. This map has the location of every store. It also includes the location of every distribution center and consolidation center. The retailer needs to be able to quickly see hot stores where nightly restocks need to be performed. The retailer also needs to see the hot locations on the floor of each store. They need to quickly see which distribution and Figure 15: Product Performance per store consolidation centers have the required inventory and where that inventory is located on the floor of individual centers. The Key Retailer / Hot Store analysis enables retailers to analyze and determine: seePOWER Confidential 15 of 41 Where are the hot stores? Why are they hot? What products are critical for the success of hot stores? Is there enough product to meet the requirements for hot stores? Is this a profitable business? Does it make good business sense on a case-by-case basis to overnight inventory to hot stores? Localized Product Assortment What are these retailers sales and where? What should they be selling to optimize profits and revenue? One of the major areas that the sales team can add value to the retailer is in product assortment planning tailored to customer requirements. By understanding product variations for the overall retail chain and individual stores by season and market and customer propensities, the sales team can identify desired product mixes with associated purchase quantities. With the Localized Product Assortment, the sales team can analyze and identify a wide range of product, customer, and market classifications to identify the multitude of items which should be offered within the classification. Since Sales and the retailers are both measured on sales revenue (and gross margin in the case of the retailer) selecting the right mix and quantity of goods is critical to success. A narrow classification mix could result in lost sales as customers go elsewhere to find a broader selection or specific item. Alternatively, a broad class mix could result in excess inventory on highly specialized, niche items that may not meet consumer needs. With Localized Product Assortment Planning business analysts can: Figure 16: Localized Product Performance per store / market / region Historically track products, markets and customers of various classifications Determine best selling/worst selling classifications overall, by market, customer group or by individual customer Evaluate selling classifications by store Analyze class mix in good/poor performing markets/stores seePOWER Confidential 16 of 41 Marketing Center Customer analytics and visualizations for retail marketing Marketing Power enables marketing managers to deliver a customer centric set of visualizations that leverage customer behavior and profitability to design new incentives and marketing programs. Marketing managers can use metrics for customer preferences, behavior and geo-demographics to pinpoint opportunities to more profitable marketing execution. Marketing Power consists of three major modules: Visual Behavioral Marketing - Direct interaction with customers and adaptation of marketing programs, while getting real-time feedback Customer Retention & Acquisition – Gain better understanding of customers’ preferences, behavior and geo-demographics Promotion & Incentive Analysis – Discover what promotions work in which market for which customers Visual Behavioral Marketing Directly interact with customers with a web-based social network. Adapt marketing programs to the needs of your customers. Get direct feedback from these customer interactions. Visual Behavioral Marketing enables the marketer to better understand and drive consumers to the individual products, stores and promotion offers through the use of web-based social networking technologies that reach customers with offers tailored directly to their interests. Visual Behavioral Marketing provides a unique Business Intelligence platform to deliver detailed consumer analytics and provides more insight into consumer needs and product interaction. The solution and environment allows the retailer to “tap into” the powerful analytical and visualization capabilities to quickly turn “unknown” consumers into profiled “known” individuals. This consumer centric solution is seePOWER Confidential Figure 17: Customer Activity Analysis 17 of 41 a next generation, permission based environment. Consumers participate in an ongoing cycle of online retail experiences driven by the nexus of targeted offerings; customer interests and spend behavior; and the promotion calendar. Visual Behavioral Marketing will enable marketers to: Attract end customers in cost effective, low risk, interactions via the Web. Directly impact consumer product spend with personalized on-line coupons Capture valuable product feedback through a rewarding and highly interactive feedback environment Utilize product and consumer information to drive revenue and profit Gather direct consumer feedback and input that can be applied to the product development life cycle Deliver multi level web-based marketing initiatives Deliver better products, extend the longevity of products and deliver better results for the customers Visual Behavioral Marketing provides a safe and secure way for retailers to engage consumers in a rewarding environment that utilizes high value behavioral data to support sound, profitable business decisions. Customer Retention & Acquisition Better understanding of customers’ preferences, behavior and geo-demographics Retail managers must be able to determine which segments have a high propensity to buy. Once these segments are identified, retailers can field highly targeted promotional efforts which allow them to spend against the most profitable customers. Customer targeting can be broken into a range of analysis activities: Track response rates by demographic/geographic customer groups Target specific customers through analysis of credit card data base Track response rates by media type for different demographic/geographic customer groups Target type of campaigns by customer group seePOWER Confidential Figure 18: Customer Leavers and Joiners 18 of 41 Through Customer Retention & Acquisition, retailers can leverage customer value, segmentation, preferences and behaviors to product profiles that group customers in ways that optimize customer satisfaction that manage retention and drive acquisition. With Customer Retention & Acquisition, retailers are able to; Gain a better understanding of customers’ preferences, behavior and geo-demographics Identify long-term trends and short-term fluctuations in customer behavior by automatically monitoring groups of customers over time Identify high value and low value customers by monitoring their spending and visitation patterns over time Manage churn by identifying customers who are leaving or have left, using customer behavior queries Monitor and assess qualitative and quantitative effectiveness of marketing Figure 19: Customer Leavers and Joiners campaigns, promotions, junkets and events Drill down Reduce mail-out costs by identifying customers who don’t respond to promotions Improve customer loyalty and participation by better matching offers to particular customer groups Monitor marketing coupon redemption and identify unprofitable customers Perform market basket analysis by identifying and managing customers who buy certain products Create ad-hoc queries to extract lists of customers for promotional purposes Perform coupon and spending analysis to breakdown of the customers’ coupon redemption behavior Understand customer visitation habits to provide you answers regarding the visitation frequency of customers Deliver a new level of loyalty analysis by understanding Leavers, Joiners and Stayers, Movers and Newcomers Promotion & Incentive Analysis What promotions work in which market for which customers? Understanding key customers is critical. Retailers need tools to better understand top customers who are cross-shopping at multiple stores and online. They need to be able to determine the right promotions to reach these customers and determine how to keep these seePOWER Confidential 19 of 41 customers loyal to the retailer. Retailers need the information for each store to meet the needs of top customers by enabling store managers to position the right product to optimize market basket potential. Promotion & Incentive Analysis answers: What are the right promotions to reach our most profitable customers? What parts of the store are most attractive to our most profitable customers? Sales impact of ad overall, by market, by classification. Evaluate promotion events over time Compare current versus historical ad performance on like events Track volume for promotion versus similar nonpromotion classifications Analyze impact of promotions on volume or complimentary products Analyze top/bottom stores by promotion Compare classification performance by ad Figure 20: Promotion Utilization Analysis size, placement, and price Create a pre and post-promotion baseline and compare to event performance Test alternative event strategies and track performance on ad Determine which customers are most loyal to the retailer’s family of products and related promotions How effective are my promotions in attracting profitable customers? New customers? How can we better see sweet spots in the market where there are uncontested, profitable customers and market segments? seePOWER Confidential 20 of 41 Command Post Real-time visualizations for store operations Command Post delivers real-time data to retail operations – store managers and staff. Command Post consists of three modules: Active Customer Manager, Active Customer Service and Active Customer Self-service. Active Customer Manager, Active Customer Service use PC-based and hand-held devices respectively to provide retail managers and staff with a 360º customer relationship view to locate the highest-yield customers in the store in real-time. This allows for proactive service, real-time incentives and up-sell to customers with the right offer at the right time for the best profitability results. This enables real-time monitoring and management of customers, costs with an unmatched level of command and control to drive dramatic improvements to retail top- and bottomline performance. Active Customer Self-service enables customers of single and multi-store retailers to rapidly access information about their preferred products, regardless of store location. Store management can see real-time customer activity across a store network and how well customers are being serviced by store staff. Store staff in turn use Active Customer Service to gain real-time insights that they can leverage to promote products for cross promotions. Loyalty card and non-loyalty card customers can obtain product information and offerings by entering their loyalty card or choosing various options from the touch-screen interface. They can also print a coupon for favorite products. Active Customer Manager Active Customer Manager brings a whole new dimension of possibilities to business by allowing them to capitalize upon events and opportunities as they unfold by leveraging the true value of real-time data. Active Customer Manager enables store operators to monitor and manage their customers, costs and store assets with an unmatched level of Command and Control to drive dramatic improvements to a stores top and bottom line performance. Figure 21: Active Analysis of Customers Active Customer Manager delivers Real-time “streaming” visualizations of the store network every few minutes or seconds and manages a real-time data store of store, hand-held, customer and call center data feeds. seePOWER Confidential 21 of 42 With a rules-based alerts system of live visualizations your operations managers will be able to: Monitor and service your top customers as they are in the store Monitor and up-sell to customers while they are at the store Understand the acquisition of new loyalty card members Monitor the redemption of promotional coupons as they occur. Monitor and load balance your labor resources according to specific customer traffic levels and patterns as they develop. Monitor the alerts and notifications to handheld Micro seePOWER™ PDAs Figure 22: Active Drill Down Active Customer Manager leverages alert driven key performance indicators (KPIs) to see: Hot stores and customers – turnover per current visit, actual sales per current visit Application to up-sell targeted customers Of-interest customer categories Service levels to the right customers at the right level Hot products - product turnover in real-time Coupon redemptions and campaign management Customer acquisition Service – POS device service times Prioritize the service effort to store revenue Active Customer Service Active Customer Service is a real-time, hand-held customer value management solution for retailers that enable real-time, one-to-one customer service. Active Customer Service provides retailers with an seePOWER Confidential Figure 23: In-store Customer Management 22 of 42 intuitive, hand-held solution to service and understand your best customers for greater loyalty, share of wallet, and profit. By empowering retail staff in the store with appropriate information on a PDA in real-time, Active Customer Service makes proactive, one-to-one marketing easier than ever before. With a rules-based system of alerts your store staff can: View and understand your customer’s complete portfolio of purchasing and incentive experiences and preferences in a unified, interactive snapshot Deliver superior service to retain your best customers Locate your customers in the store in real-time and proactively service or up-sell to them as they shop - with the right offer at the right time Tailor and enhance the customer experience for greater share of wallet and brand building to maximize customer value Active Customer Self-Service Active Customer Self-Service is an easy-to-use self service customer information and loyalty solution that enables customers to visit a store with the information they need to find their favorite products. Active Customer Self-Service provides a cost effective, 24/7 software solution to provide better service, enhance the purchasing experience and convert non loyalty-card customers to your loyalty program. Active Customer Self-Service enables customers of multistore operations to rapidly access information Figure 24: Active Self-Service about their preferred products, regardless of which store they are at. Loyalty card and non-loyalty card customers can obtain information on product offerings by entering their loyalty card or choosing various options from the touch screen interface. They can also print a coupon of their favorite products. With rules-based visualizations customers can: Determine favorite products, based on previous purchases Prints coupons for promoted products See top products See promotions for new products Locate favorite products in the store (or store network or from promotion partners) seePOWER Confidential 23 of 42 Review Loyalty Points status details and offerings Review and change personalized events and promotion schedules Active Customer Self-Service improves the quality of service to loyalty card and nonloyalty card customers with information to improve loyalty and drive cross sell and upsell opportunities. Additionally, Active Customer Self-Service presents opportunities to convert non-loyalty card customers to loyalty programs and reduce labor overhead with a 24/7 solution. seePOWER Confidential 24 of 42 seePOWER Masters seePOWER is dedicated to delivering comprehensive education to enable customers – Business Executive, LOB Operations Managers and IT professionals – with the knowledge needed to use and manage seePOWER for Enterprise Data Visualizations to its fullest. seePOWER offers extensive business education, plus education to enable application developers to build and expand the Retail Power environment. seePOWER also offers education to enable customers to build and manage Enterprise Data Warehousing systems. Business User Education: the executives and business users will learn how to use seePOWER for Enterprise Data Visualizations to perform visual business analysis; better understand customer behavior and profiles; to see business performance, operational bottlenecks ; understand strategic business execution; gain a better understanding of customer preferences, behavior and geodemographics; identify high value and low value customers by monitoring their spending and visitation patterns over time, reducing mail-out and promotion costs. Also your operations personnel can learn how to leverage seePOWER Active and Micro to optimize real-time business interactions. seePOWER Application Development Training: In these courses the seePOWER Application Developer learns how to manage and administrate the seePOWER environment; manage and create basic and advanced key performance indicators (KPIs); build color scales, color palettes, contours, breakpoints, legends and maps; integrate queries to the Enterprise Data Warehouse; build drill-downs to data; Visualizer and Profiler configuration and seePOWER server tuning, including fail-over, caching and prefetch management. Data Warehousing Education for Information Technologists: In conjunction with Bill Inmon – the author of numerous books on data warehousing and business intelligence and Teradata – the leading company in the world in data warehousing, seePOWER offers classes and workshops in Enterprise Data Warehousing, Business Intelligence and Enterprise Architecture to IT professionals in Retail to expand their depth of knowledge and understanding. seePOWER Confidential 25 of 41 Appendix A Command Center PowerView Family Command Center consists of the following Power Views: Time Stripe Enterprise Supply and Demand Product Performance Strategic Contour Map Strategic Hexagonal Map Strategic Grid Strategic Discovery Map Financial Performance Network Map Time Stripe Visualization Time Stripe Business Improvement Opportunity Determination: seePOWER Confidential The Time Stripe PowerView delivers a visualization that is both strategic and tactical. It is strategic because the visualization enables a top-down view of the entire enterprise, while enabling executives to quickly see tactical events over the period of analysis and to see activity pre and post-event. Product and geographic trends can be seen quickly from the visualization and then drilled-down into to see individual, specific data elements at a report or graphic. Ad-hoc analysis is a key capability for this (and any) visualization to enable access to any piece of data in the Enterprise Data Warehouse. What would be the economic advantage of seeing the impact of event immediately on product, geographic and customer performance? What actions would you take with this knowledge? What is the impact of this knowledge 26 of 41 Enterprise Visualization Enterprise Business Improvement Opportunity Determination: seePOWER Confidential The Enterprise PowerView enables analysis of Geographic, Product and Customer dimensions in a cross-tabular visual format. The strength of this PowerView is the capability to view dimensions in a hierarchy (territories within a region, products within a brand / category, demographics within a decile, etc.) This PowerView is also effective where there are many dimensions to analyze at one time. This occurs often with high density spreadsheets and reports where it is difficult to sort through 100s of reports with 1000s of cells, often with complex cross-tabulation. The Enterprise PowerView is often produced as an animation showing primary dimensions over time (days, hours, weeks, months). Events can also be overlaid to show the Geographies, and Products that are impacted by specific events. What would be the economic advantage of breaking through the logjam of numerous, high density spreadsheets or reports? a. How many hours are spent creating these reports and spreadsheets? b. How many hours are spent analyzing the data? c. How much time would be saved if the information could be presented visually? What new insights would be discovered by having access to complex business dimensions a. Analyzing all geographies by all products? b. All customer deciles by all geographies? c. What actions could you take? What would be the economic advantage of seeing the impact of events immediately on product, geographic, customer performance? (especially during the Christmas season) What actions would you take with this knowledge? What is the impact of this knowledge? 27 of 41 Supply and Demand Visualization Supply & Demand Business improvement Opportunity Determination: seePOWER Confidential The Supply and Demand PowerView joins the information coming from Demand systems (sales, population, market potential, market penetration, etc.) and Supply systems (supply chain, distribution, inventory) on a geographic map to show: Current and potential bottlenecks overall and by customer segments (historically, real-time or projected) Current and potential overstocks overall and by customer segment (historically, real-time or projected) Impact of events on supply and demand overall and by customer segment (historically, real-time or projected) Analysis of strategic over and under supply - too many or too few stores (historically, real-time or projected) What would be the economic advantage of seeing supply shortages and overages by product hierarchy and customer hierarchy? a. Historically? b. Real-time? c. Projected? d. Within a dashboard? What new insights would be discovered? a. All customer deciles by all geographies? b. What actions could you take? What would be the economic advantage of seeing the impact of events immediately on supply and demand for a given geography or customer grouping? (especially during the Christmas season) What actions would you take with this knowledge? What is the impact of this knowledge? 28 of 41 Product Performance Visualization (52 Week) Product Performance Business Improvement Opportunity Determination: seePOWER Confidential The Product Performance PowerView provides a detailed analysis of product metrics (Sales, GMROII, average sales per transaction, etc.) generally over a 52 week calendar. This is a very effective PowerView for these retailers with strict weekly performance goals or with frequent product promotions (especially those organizations with 52 week promotion calendars). Generally the analysis revolves around actual versus plan or this year versus last year with an eye toward promotion effectiveness. What would be the economic advantage of seeing and managing product performance by week? a. Historically? b. Projected? c. Within a dashboard? What new insights would be discovered? a. Analyzing store format performance? b. Analyzing individual stores? c. Customer deciles? What actions would you take with this knowledge? What is the impact of this knowledge? 29 of 41 Strategic Contour Map Visualization Strategic Contour Map Business Improvement Opportunity Determination seePOWER Confidential The Strategic Contour Map PowerView enables a joined strategic and tactical view of the geography of the business. The contour map quickly sifts through the hot spots and cold spots in the business for any business metric. Trends that often can take weeks and months to see can be seen in minutes and hours with this PowerView. From the strategic vantage point the Strategic Contour Map is easy to drill into to see the exact data points of interest. The Strategic Contour Map generally works best for lower density and / or evenly dense populations of objects –stores (for uneven distributions see Hexagonal Strategy Maps). The Strategic Contour Map is also the most accessible and easy to understand of the PowerViews, making it a useful visualization to enable a corporate wide view of the business that everyone can grasp and provide a strong training tool to introduce your organization to Enterprise Data Visualization. Finally, the Strategic Contour Map is an excellent visualization for Enterprise dashboards, because of its accessibility and ease of understanding. What would be the economic advantage being able to see changes quickly in the business where and when it is happening? a. Historically? b. Real-time? c. Projected? d. Within a dashboard? e. Projected? What new insights would be discovered analyzing: a. Key geographic performance? b. This-year vs. last-year per day for 52 weeks c. This-week vs. last week for 52 weeks, projected out 4 weeks? d. Actual vs. target for the last 52 weeks? e. Percentage change per week for 52 weeks? f. Pre-promotion event, promotion event, post-promotion event? g. Customer deciles? What actions would you take with this knowledge? What is the impact of this knowledge? 30 of 41 Strategic Hexagonal Map Visualization Strategic Hexagonal Map Business improvement Opportunity Determination: The Strategic Hexagonal Map PowerView, like the Strategic Contour Map, enables a joined strategic and tactical view of the business. The hexagonal map quickly highlights hot objects and cold geographic objects (stores, depots, distribution centers, distribution hubs, manufacturing centers, etc.) in the business for any business metric. A key difference between a contour and hexagonal map is that hexagonal maps behave like flashing lights on a control panel. The change in the color of the “flash”, indicates a change in the disposition of the geographic object (a store, depot, distribution center, distribution hub, manufacturing center, etc.) From this perspective, The Strategic Hexagonal Map is great for flash analysis – highlighting real-time, high priority scoring for metrics. This is a great way to quickly illuminate scorecard data within a dashboard. Additionally, the outline for each hexagon can also be different colors to measure additional scoring metrics. For example, the color of the hexagon may be for Store Sales, while the outline of the same hexagon could be for inventory. In this scenario it would be easy to see high sales, high inventory, high sales, low inventory, low sales, high inventory, etc. – a powerful analytic paradigm. The Strategic Hexagonal Map is also easy to drill into to see the exact data points of interest. The Strategic Hexagonal Map enables the analysis of high density and / or unevenly dense populations of objects. For example, large numbers of stores clustered in urban areas or distribution centers in various geographies. The Strategic Hexagonal Map delivers significant advantages for animation over short time durations – real-time, minutes, hours. Finally, the Strategic Hexagonal Map is an excellent visualization for Enterprise dashboards, because of its capabilities to quickly illuminate scorecard data. What would be the economic advantage being able to see changes quickly in the business where and when it is happening? a. Real-time? b. Projected? c. Within a dashboard? d. Relative to events? What new insights would be discovered analyzing: a. Key object performance (a store, depot, distribution center, distribution hub, manufacturing center, etc.)? b. This-year vs. last-year score? c. This-week vs. last week score? d. Actual vs. target score? e. Percentage change per week for 52 weeks? f. Pre-promotion event, promotion event, post-promotion event? g. Customer deciles? What actions would you take with this knowledge? What is the impact of this knowledge? seePOWER Confidential 31 of 41 Strategic Grid Visualization Strategic Grid Business Improvement Opportunity Determination: seePOWER Confidential The Strategic Grid PowerView enables that analysis of Geographic, Product and Customer dimensions in a crosstabular visual format. The particular strength of this PowerView is the capability to view the performance of a KPI metric for individual data elements and by the dimensions in a hierarchy (territories within a region, products within a brand / category, demographics within a decile, etc.). This enables the analyst to evaluate the performance of the overall group versus individual members of a group. This enables managers to quickly spot anomalies that are often lost looking at a high level overview. This PowerView is also good for situations where there are many dimensions to analyze at one time. This is a situation that occurs often with high density spreadsheets and reports where it is difficult to sort through 100s of reports with 1000s of cells, often with complex cross-tabulation. The Strategic Grid PowerView is often produced as an animation showing primary dimensions over time (days, hours, weeks, months). Events can also be overlaid to show the Geographies, and Products that are impacted by specific events. What would be the economic advantage of breaking through the logjam of numerous, high density spreadsheets or reports? a. How many hours are spent creating these reports and spreadsheets? b. How many hours are spent analyzing the data? c. How much time would be saved if the information could be presented visually? What new insights would be discovered by having access to complex business dimensions? a. Analyzing all geographies by all products? b. All customer deciles by all geographies? c. What actions could you take d. What would be the economic advantage of seeing the impact of events immediately on product, geographic, customer performance? (especially during the Christmas season) What actions would you take with this knowledge? What is the impact of this knowledge? 32 of 41 Segmentation Discovery Map Visualization Segmentation Discovery Map Business Improvement Opportunity Determination: seePOWER Confidential The Segmentation Discovery Map PowerView is an example of a Self-Organizing Maps (SOM). This PowerView shows complex data on a two-dimensional model. This is an example of Visual Data Mining. Data can come from any data source, but typically from the results of a query or text search or both. Similar items are clustered together based data relations present in the data (age, spending patterns, web utilization, etc.) and groups of unlike items are separated from other groups by boundaries. Each dot represents a customer or customer grouping. Economic data (a KPI) is overlaid on top of the clustered information relationships. This enables the analyst to see: 1. The interrelationships of information within clusters and sub-clusters (without sifting through 1000s of pieces of data) 2. Relationships between clusters (without sifting through 1000s of pieces of data) 3. Relationships between sub-clusters (without sifting through 1000s of pieces of data) 4. Relationships between clusters and sub-clusters (without sifting through 1000s of pieces of data) 5. The economic value of clusters and sub-clusters What would be the economic value of being able to see relevant behavior clusters and sub-clusters to determine how best way to reach customers with the most appropriate marketing campaign? What would be the economic value of being able to see the economic value of each customer cluster and sub-cluster? What actions would you take with this knowledge? What is the impact of this knowledge? 33 of 41 Financial Performance Visualization Financial Performance Business Improvement Opportunity Determination: seePOWER Confidential The Financial Performance PowerView provides a detailed analysis of Financial metrics, entities and objects (see Primary Dimensions). This is a very effective PowerView for these financial analysts looking to analyze financial metrics from a variety or perspectives to compare weekly, monthly or quarterly performance goals. Generally the analysis revolves around actual versus plan or this year versus last year with an eye toward financial effectiveness. This PowerView is also good for situations where there are many dimensions to analyze at one time. This is a situation that occurs often with high density spreadsheets and reports where it is difficult to sort through 100s of reports with 1000s of cells, often with complex cross-tabulation. Financial events can also be overlaid to show the impact of financial events (changes to supply chains, business models, store openings, mergers, etc.) The Financial Performance PowerView is often produced as an animation showing primary dimensions over time (days, hours, weeks, months). What would be the economic advantage of seeing and managing financial Entities (Profit and Loss Statement, Balance Sheet, Cash Flow Statement) for financial entities (profit centers and cost centers)? 1. Performance by week? 2. Historically 3. Projected 4. Vs plan 5. Within a dashboard? What new insights would be discovered? 1. Analyzing revenue and cost? 2. Analyzing individual stores? 3. Analyzing Accounts Receivables and Payables 4. Analyzing Working Capital 5. Capital Circulation – Sales, Inventory, Cash What actions would you take with this knowledge? What is the impact of this knowledge? 34 of 41 Network Map Visualization Network Map Business Improvement Opportunity Determination: seePOWER Confidential Business operations is a system of networks for supplies, inventories, distribute, transportation, transportation space, backroom inventory, floor space that is tied to demand for product, cash, and resources. The Network Map is designed to see the flows of inventory, products, cash and resources to better understand hot and cold stores, channels, products and to determine the impact of changes in resources on the business network – changes in suppliers, product mix, size mix, resource allocation. Because operational network analysis involves so much data and so many data sources, analysts today are buried in reports and spreadsheets that are generally very high density. The network map turns these mountains of data into digestible business flows that illuminate the business. What would be the economic advantage of seeing the location of hot spots and cold spots in the supply chain and demand chain? a. Performance by minute, hour, day, week, etc? b. Historically c. Projected d. Vs plan e. Within a dashboard? What new insights would be discovered? a. Analyzing supplier performance? b. Analyzing distributors? c. Analyzing individual store consumption? d. Analyzing inventory and the impact of inventory on financial performance. e. Analyzing the impact of the network on Capital circulation – Sales, Inventory, Cash What actions would you take with this knowledge? What is the impact of this knowledge? 35 of 41 Segment Ecosystem Map Visualization Segment Ecosystem Map enables managers to analyze interrelated segments – customer segments, financial accounts, deciles, financial breakdowns. The segments are located in hexagonal grid patterns that indicate the strength and degree of the relationship. For example, two segments that are next to each other would have a higher degree of relationship based on the metrics of interest. Budget Performance Visualization seePOWER Confidential 36 of 41 Command Center PowerView Family seePOWER Confidential 37 of 41 Descriptions of Operations Center PowerView Family Name Inside Outside Time Spiral Description Using a Time Spiral PowerView a business analyst can see the entire year, a quarter, a week, an event or all the days (individually or for the entire year). Today it is difficult for business analysts to see daily, weekly and monthly trends at the same time. Visualization Type (a) Spatial Tabular A time spiral looks at data that is collected over time and is ideally suited to data sets that have an actual or perceived periodicity. The example given shows Turnover over one year for a hotel. The oldest data is in the center of the image, the most recent data towards the outside. Each lap of the spiral shows four weeks so that the weekends stand out immediately, revealing a weekly pattern in the data. This type of visualization is commonly used for forecasting purposes (e.g. in large hotels who use it to manage medium and long term room occupancy rates), but also to determine life cycles and usage patterns. For example, Fast Moving Consumer Goods (FMCG) wholesalers have explored the use of these visualizations to forecast expected demand for a product, and then entered into supply negotiations with manufacturers of those goods. Business Improvement Opportunity Determination: 1. What would be the economic advantage of seeing the impact of event immediately on product, geographic and customer performance? 2. What actions would you take with this knowledge? seePOWER Confidential 38 of 41 3. What is the impact of this knowledge Product Performance Floor Plan Planogram Store Performance Tactical Market Segments Sell-through Triple Metric Web Performance Process Flow Process Flow seePOWER Confidential Tabular Spatial Spatial Tabular Spatial Tabular Tabular Spatial Tabular Spatial 39 of 41 Operations Center PowerView Templates seePOWER Confidential 40 of 41 Descriptions of Marketing Center PowerView Family Name Promotion Performance Leavers and Joiners Advanced Leavers and Joiners Market & Customer Geography Fight Zone Advanced Leavers and Joiners Dynamic Segment Mgmt Trend View Report View seePOWER Confidential Visualization Type (a) Spatial Tabular Tabular Spatial Spatial Tabular Spatial Tabular Tabular 41 of 41 Marketing Center PowerView Templates seePOWER Confidential 42 of 41 Descriptions of Command Post PowerView Family Name Active Analysis of Customers In-store Customer Management Customer Details Customized Offers seePOWER Confidential Visualization Type (a) Spatial Tabular Symbolic Tabular 43 of 41 Command Post PowerView Templates seePOWER Confidential 44 of 41