Charteris plc Enterprise Application Integration in Retail Real-time Business Activity Monitoring 23...

Charteris plc

Enterprise Application Integration in Retail

Real-time Business Activity Monitoring

23rd September 2005

The The Essential BridgeEssential Bridge between between

Business and Business and TechnologyTechnology

Charteris – Who Are We?

Specialists in business change and business transformation

Providing business leaders with the essential bridge between business and technology

Microsoft Gold Partner in 3 competencies

Winner of 2 global Microsoft awards in 2004

ISO9001 and TickIt quality standards accredited

Approx 200 employees

Retail sector and Supply Chain expertise and experience



Some Charteris Clients

Alstom AutomationArgos Retail GroupASDAAutoCascadeBovis Lend LeaseBritish American TobaccoBritish Computer SocietyBULL Information SystemsDeloitte & ToucheElectronic Data SystemsHebatcoHewlett Packard IRIS SoftwareJarvis Systems & TechnologiesJohn Lewis PartnershipKCI InternationalLogicaMaersk SealandMarks & SpencerMicrosoftMeyer International PatsystemsPortal SoftwareQSASainsbury’sTesco

3i AbbeyABN AMROAlchemy Partners (Guernsey)Ansbacher & CoAPACSAriumBank of New YorkBarclaycardBarclaysClose Brothers CSFBFinancial Services AuthorityGoldfish BankGranville Baird Capital PartnersGuardian Media Group HSAHSBC Investment BankLIFFELloyds TSBNationwide Building SocietyNatWestNorthern RockNorthern Venture ManagersPremium CreditReuters Standard Chartered BankSWX Swiss ExchangeUIA InsuranceWilliam M Mercer

Barlow Lyde & GilbertBritish Trade InternationalCabinet OfficeCentricaClifford ChanceCMS Cameron McKennaCriminal Justice ITDLADriving Standards AgencyDSSFreshfields Bruckhaus DeringerGeneral Dental CouncilHerbert SmithICL (UNITAS) IMS HealthIsle of Man GovernmentLovellsMasons Mayer Brown Rowe & Maw NHS Shared ServicesOlswangQueen Elizabeth NHS TrustRolfe & NolanScottish EnterpriseTarlo LyonsUKERNAUNESCOWandsworth Borough Council

Retail, manufacturing, distribution & technology

Financial services & media

Government, legal, utilities & energy

Solving integration challenges in Retail

Who are we?

Challenges faced by Retailers

Real-time Business Activity Monitoring in Retail

Real World BizTalk

Examples and Charteris case study

E-Commerce On shelf availability

Stock Loss Queues

Availability Conversion

Reporting Markdowns & Pricing

Queue Busting Communications (HO & store)

Loyalty cards Shrinkage

Tills Demand forecasting

Distribution vs. stores Measuring response

Price Lists Merchandise management

In Store Portal Impact of changes

Footfall Measuring service

Challenges Faced by Retailers

Think of a question…

“How can we quickly remedy the multibuy pricing errors that are causing checkout hold-ups this

morning?”

BAM Retail can provide the BAM Retail can provide the answers to your staff – in answers to your staff – in

real timereal time


“Is there sufficient stock for our promotion or are we in imminent danger of disappointing

customers?”


real timereal time


“Are the top twenty high-margin products in need of urgent restocking on the sales floor?”


real timereal time


“12 stores failed to meet targets that were met by all other stores. Why? And how can we improve

their performance next week?”


real timereal time

Retail scenario 1

♦Situation: Multibuy ‘two for £1’ pricing error discounts 54p on sale of two sliced white loaves instead of the correct 30p.♦Outcome: Error goes unspotted and results in lost revenue of approximately £300,000.♦Solution: BAM Retail’s business rules compare multibuy price at checkout to multibuy price on shelf strip and alert operational staff at both store level and at head office.

Retail scenario 2

♦Situation: Actual sales uplift for a promotion quickly hits 180%, exceeding the expected uplift of 130%.♦Outcome: Supply chain exhausted, stores out of stock, lost sales and frustrated customers. Additional sales of £1.75million lost, totally approximately £595,000 profit.♦Solution: BAM Retail monitors POS system, compares actual sales rate vs. historical sales rate. Once sales exceed a set business rule, alerts sent to store personnel, head office buyer and supply chain.

Retail scenario 3

♦Situation: Christmas time can account for 40% of annual revenue and often the Pareto 80/20 rule applies e.g. 250 lines of 1500 lines create 80% of revenue. But what about the Top 20 lines?♦Outcome: No knowledge of out of stocks, no way of addressing shortfalls until too late, must leave the shop-floor to obtain information, does not know which items to promote.♦Solution: Instead of gut-feel on which products to order, the operational BI system will provide real-time updates. So less stock needs to be maintained or moved and all levels of management can see how efficiently each dept maintains its key lines.

IT Investment Priorities Over The Next 3 Years, IT in Retail 2005 Report

0

5

10

15

20

25

30

35

Store Systems ERP NetworksIntegration of Systems

Reporting & Access to information

Common desk top

infrastructure

OthersSupply Chain Merchandise Management/ Stock Control

9%

31%

4%5%

7%7%8%

4%

25%

Note: This is based on a weighted average of each company’s top 3 priorities

Business Context – Why has this not been done before?

Too slow and expensive to extract decision-making information from disparate systems…

The managers who needed to know this stuff are not near a PC…

Mobile connectivity is cost-prohibitive…

Combining real-time sales data with stock levels is not practical…

It negates the investment made on the existing infrastructure…

Senior management cannot see immediate business benefits /ROI…



…but not any more


Who are we?



Real World BizTalk


Charteris Real-time BAM demonstration

http:// Charteris_Demonstration.

http://www.microsoft.com/biztalk/code/demo2004/enterprise_integration.html

Maps KPIs to OrchestrationMaps KPIs to Orchestration

Data Of Interest

Data Of Interest

Identifies KPIsIdentifies KPIs

Business Activity Monitoring

INFORMATION INFORMATION WORKERWORKER

Needs real-time visibility in Needs real-time visibility in a familiar user interfacea familiar user interface

BUSINESS ANALYSTBUSINESS ANALYST

Analyzes information & Analyzes information & Defines what data and will be Defines what data and will be

presented and howpresented and how

DEVELOPERDEVELOPER

Knows how toKnows how toget the dataget the data

ObservationObservationModelModel

BAM InfrastructureBAM Infrastructure

Benefits of Real-time Business Activity Monitoring

Real time reporting

“One version of the truth”.

Personalised access to a real-time graphical dashboard of business-critical information.

Quick and effective decision-making on a tactical, operational and strategic level.

Data filtering through KPIs and communication via instant messaging saves time and improves efficiency.

Store managers and others freed from back office to spend more time on the sales floor.

How businesses can benefit

Benefit from a never-before-possible view of real-time operations.

Empower staff to make vital contributions to improved business performance.

Improve operational efficiency, customer service and retention.

Fast, flexible, low-cost integration with minimal impact on existing IT infrastructure.

Extremely cost-efficient and extensible system – POS, footfall, conversion rate, time and attendance, theft, shrinkage, RFID, etc.


Who are we?



Real world BizTalk


Connected SystemsUNIXUNIXJ2EEJ2EE

MainframeMainframeCICSCICS

OracleOracle

Packaged Packaged ApplicationApplication

.Net .Net ApplicationApplication

AS400 AS400 ApplicationApplication

CRMCRM

Your Organisation

UNIXUNIXJ2EEJ2EE


OracleOracle




CRMCRM

Integration Solution

UNIXUNIXJ2EEJ2EE


OracleOracle




CRMCRM

BizTalk links it all together

• Order ID

• Amount• Product• Date Time

• Customer

• Cost Price

Business Data

BizTalk Server 2004 – Key Takeaways

Make the hard stuff simpleRight tools for right user

Standards-basedMarket-leading integration and business process automation tool.NET is now fully integratedPart of a fully integrated technology stack

Single point of supply and support - Microsoft Uses familiar tools for interaction by developers and business users

Product requires business and technology skills

Charteris brings relevant business skills with world-class BizTalk skills – “The Essential Bridge between Business and Technology”




Who are we?



Real World BizTalk


Charteris’ Track Record With BizTalk

One of only 9 listed as specialist “business integrators”At the “bleeding edge”:

Pushing the product in enterprise-class, mission critical solution development projectsWorking directly with the product groupOur fixes are going back into the product

We have developed deployment and management tools that have now been taken on by the product group in Redmond:

Initial release on www.gotdotnet.comBeing prepared for full release

We have two awards for our BizTalk developments:

-First for helping the client to win more clients through use of the technology.

-Second for the best personal BizTalk development – top prize in the global competition.

http://www.gotdotnet.com/

High-Volume Implementations

Customers with over 200,000 messages per day:

Marks & Spencer—1,500 messages/second

Lotte Magnet—100 messages/second

Itau—100 messages/second

London Drug—52 messages/second

CNF/Emery—20 messages/second

High-volume customers:NTL - £30m/annum operational savings from EAI and systems consolidation activities

House of Fraser – Integrating over 500 EDI and web partners

Marks & Spencer— integrating over 500 trading partners

Case Study: NTL Integration 1

BIZTALK 2004

DatabasePortal Web

SiteBusiness Web

SiteBusiness

Server Applications

CustomerDatabase

Message

SQLReceive

Message

MSMQReceive

Message

Requ

est

Requ

est

MSMQReceive

Message

Requ

estMSMQReceive

Message

BizTalkReceive

Requ

est

Requ

est

Process Workflow Direct Action

Telephony Switch

Save D

ata

Start Workflow

Direct Actions

Save Data Action

Action

Action

Inventory Management

Telephony CRM Cable TVWorkforce

Management

CRM SystemOperations

Backend Switch

LMD

Back End System Notification

Single A

ction

Database

Response

Response

We used process messages for customer database: launched a workflow.

A workflow performed actions across back end systems.

Customer database tracks results of workflow.

http://www.ntl.com/locales/gb/en/

Case Study: NTL Integration 2

Multi-service provisioning.

Pilot working in 8 days - SQL-based billing replaces 28 systems

MS Products used:Windows Server 2000, BizTalk Server 2002 (moving to 2004), SQL Server 2000, Visual Studio.Net

The issue•Grown through acquisition – leading to disparate systems. •28 billing systems, multiple support and provisioning systems•Poor CSR productivity & poor customer service•High operating costs

The solution•Use BizTalk Server to consolidate over 20 different systems and provide a single provisioning and billing system for analogue & digital TV, Telco and Internet•Interface systems that provide fault, inventory, work force management, provisioning and mediation through loosely coupled web services

The results•Single customer view for CSR and customers, incl. self-provisioning via Internet•Ability to “bundle” services, single bills including e-bills. •£30m per annum operational cost savings

http://www.ntl.com/locales/gb/en/

Questions and answers

Contacts

Jeremy [email protected]

Tel: 020 7600 9199

Mob: 07989 388 040

Warren [email protected]

Tel: 020 7600 9199

Mob: 07748 156 925



mailto:[email protected]

mailto:[email protected]

Charteris plc Enterprise Application Integration in Retail Real-time Business Activity Monitoring 23...

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