The
Business Intelligence
(BI)
field is currently expending. Many businesses see the advantages a BI system
supplies: information analysis tools, information slicing options, and
information presentation options, which differ, according to the executive
level.
The efficiency, and speed of
information retrieval, along with the friendly and comfortable user interface in
the system, allow managers to base their decisions on real time data. This, in
turn, improves managers’ ability to reach the most suitable decision at any
given moment.
The
advantages a BI system can supply a business are especially important in a
recession and in a competitive market.
Today these systems are being
developed and implemented in a variety of business sectors. This variety is
possible since these systems are mostly custom made to fit the needs of each
business.
One
of the successful projects in this field is the BI project in Erroca.
Erroca is a leading retail
company in Israel, which imports and markets sunglasses and accessories.
The chain employs a staff of approximately 250 in 40 stores across the country,
and has a variety of about 4000 items for sale.
Erroca has recently
successfully concluded both an ERP and a BI project.
Erocca
has began its computerization process in 1999 by introducing computerized
cash-boxes into the stores. These cash
boxes monitore stock levels, employees’ activities
and revenues in each store, and transmit
the information to the head office. Beforehand these actions were done
manually.
Erroca’s management realized
very soon that the computerized cash boxes could not be the beginning and end of
the computerization project in the chain since they could not supply all needed
information requirements. For example a needed connection between the accounting
system and the stock system.
Accordingly, the following
step was the implementation of an ERP system at Erocca’s headquarters, which
includes an interface to the cash boxes across the country. The cash boxes now
transmit information directly to this system.
This solution was chosen in
order to create one system that will contain and process all data. The chosen
ERP system is Priority.
One of the changes due
the implementation of this system is the introduction of more efficient work
procedures.
The increase in efficiency
brought upon a reduction in costs, for example HR costs.
In
spite of the many advantages related to the ERP system, its main purpose is to
help operate a business on a day to day basis. This fact left Erocca with the
need for a decision support system (DSS) for the managerial level. This
type of system makes it possible to review up-to-date data, according to
different aspects defined by the user, assess the situation and make the
appropriate decisions.
Accordingly Erocca’s
management decided that a Business Intelligence system was the next stage in the
computerization project. Afek was elected as the supplier in view of its
experience in developing and implementing systems of this type, and interfacing
them with additional financial and logistic systems.
Afek is a software company
that supplies its customers with information systems solutions in the areas of:
BI, ERP, custom made software, internet & intranet, and computerization
consulting & services.
The BI system in this case was
developed by Afek according to the needs defined by Erroca. The system was
developed in a modular fashion according to Erocca’s request:
the sales module was the first
to be developed and it was followed by a stock module which was connected to it.
Since these two modules were satisfactory, it was decided to add the
acquisition, distribution planning, and work efficiency modules. Additional
modules are planned for the future.
Some
of the system’s characters and abilities are: definition of information slicing
parameters (by the user himself without support or intervention of IT
personnel), review of hypothetical scenarios and their affects, review of past
data such as last season’s sales and stock levels, and monitoring abilities
according to an item, store etc.
One example for an actual
improvement due to the implementation of the system is the daily stock
distribution report: before the system was implemented it took two people three
hours to prepare this report (daily), today its done with one press of a button.
An additional example of cost
reduction is the managers’ ability to operate the system directly without
technical support, an ability that accelerates process and cuts on HR costs.
But the most important change
brought upon by the system’s implementation is, no doubt, the fact that managers
can now concentrate on managing and not information hunting.
All development and support
needs for the system are given by Afek.
Erroca puts the system to good
use and the information from it is used in order to constantly monitor changing
circumstances, and determined company policy, as needed in each store.
Today
more than ever such a tool - which allows close monitoring of different aspects
such as stock, acquisition, distribution, and employee efficiency - is vital to
the profitability and success of any business.
When all is said and done,
says Erroca’s V.P. Avi Slosky, the improvement in the chain’s business results
could not have been achieved without the BI system that has been developed by
Afek. And the figures speak for themselves: both profitability and business
volume have increased during 2002.
|
