Protecting the magic and transforming the rest_Board_Marks&Spencer
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Protecting the magic and transforming the rest_board_marks&spencer
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Protecting the magic and transforming the rest_Board_Marks&Spencer
- 1. Protecting the Magic and Transforming the Rest Davide Breda Head of Finance – Corporate Information Strategy at Marks & Spencer
- 3. The focus and effort of these projects needs to be on the data and modelling algorithms, rather than on managing complexity of technology. Need for technology that can be implemented quickly, allows to experiment (including making mistakes) and can be implemented by users of the data Formulate hypotheses and work with real data from Day 1 Build quickly while models are still being defined: changes in approach can be accommodated quickly Work with multiple datasets, from various data sources Allow for data exploration, without pre-defining views upfront Handle large data volumes (1bn+ records)
- 4. We deployed these principles to deliver efficiency to a set of processes managed by the Central FP&A team. Working capital reporting and forecasting Cost initiatives tracking Monthly Risks and Opportunities Common Factors No more than two weeks from initial idea to “module” being available Continuous review and enhancement Fully managed within Finance team Technology is not focus of project
- 5. We then started to target a new analytics area and used Board to support our Direct Product Profitability analysis in the Food business. Decision-making: • Understand profitability at UPC level after allocation of all costs • Support data-driven and more commercial decision-making Planning & forecasting: • Strategic tool for longer term planning and forecasting • Support discussions on supply chain efficiencies Space, range & display: • Provide a better understanding of how to optimize space / range • Model impact on improving the customer offer • Develop predictive analytics and scenario modelling • Assess dynamic pricing impact • Build enhanced reporting Immediate objectives Future capabilities
- 6. DPP supports our transformation programs by driving quicker and more commercial decision-making. Our target customer wants great tasting quality food to eat now, tonight and for special occasions and is willing to pay a little bit more. We will retain our mostly affluent older generation customers and extend our appeal to be more relevant, more often to families & younger singles OUR PLAN TO PROTECT THE MAGIC & MODERNISE THE REST Delicious Tasting Quality Food Enjoyable Shopping Trusted Value with Values HOW WE WORK The M&S Way Internal for colleagues – Creating delicious quality food that doesn’t cost the earth External to customers – This is not just Food, this is M&S Food We need to become BIGGER, BETTER & FRESHER to transform our Food Business and make it more profitable, selling quality products at everyday trusted value, online and in bigger stores that have the mind of a supermarket and the soul of a fresh market STRATEGIC TRANSFORMATION PROGRAMMES How we will make it happen CUSTOMER VALUE PROPOSITION What we want customers to say about us OUR TARGET CUSTOMER Where the growth will come from OUR VISION What success in 2022 looks like OUR CORE PURPOSE What we want to be famous for One Food Team Food Values Win-Win Supplier Partnerships Plan A M&S Behaviours Grow M&S Online & Digitally Create Loved Products Transform Categories Lower Our Costs Modernise End To End Supply Chain Rebuild Brand & Customer Engagement Deliver Trusted Value Build Winning Teams Develop Great & Efficient Shops M&S Food Operating Model Create Loved Products • Assess true profit of NPD, and inform future NPD plans • Assess supplier profitability to reduce buying margins • Being able to model the effect of different pricing and promotions scenarios • Enhanced category profitability analysis and optimising SRD model • Better understanding of waste, stock loss and labour planning impact on profits • Driving wider commercial acumen within team • Enhanced profitability analysis of renewal stores • Driver improved channel strategy and product range to be sold online • Improved ROI understanding of marketing and brand spend Lower Our Costs Deliver Trusted Value Transform Categories Modernise E2E Supply Chain Build Winning Teams Develop Great & Efficient Shops Grow M&S Online & Digitally Rebuild Brand & Customer Engagement
- 7. Decision making is often Disconnected, Modular & Fragmented Marketing Information Silos Disconnect Strategy, Finance, Operations Processes Fragmentation Excel Plastering E-mail Proliferation Multiple versions of the truth People miss-alignment
- 9. Board unifies Business Intelligence and Performance Management in a single Platform Visualization & Dashboard Profitability ModelingAnalytics Self-Service Workflow Strategy managementReporting Financial Consolidation Budgeting, Planning & Forecasting
- 10. Board in Retail – Fast Track appliances
- 11. Board in Retail – Fast Track appliances
- 12. When considering a solution … • Allows the process to be experimental, and implemented quickly by users of the data • Allow focus on solving the business issues and not technology constraints • Provides an Integrated view of the Business to support the entire decision-making process Actionable Takeaways from this session:
Notes de l'éditeur
- Fundamentally factors for selecting board was that it allowed focus and the effort on these projects to the data and modeling the process And NOT having to managing the restrictions and complexity of the technology - which is often the case in Digital transformation projects If you look at what companies are doing to “ free up this time “ and move towards people becoming partners in decision support The common theme that we have seen with all of the Board projects this year is that no one is talking about technology as a problem the steering groups no longer have to spend time talking about data integration or issues with infrastructure – all of that have completely disappeared and instead they are purely on the outcome of the project and what they want to achieve . NeedBoard allows us to do is to take the approach and work with these 5 pillars that allow From Day one in the projects there are working with real data , don’t have to be concern about a test system or make up the data , they can connect directly to the live data And this is often ( multiple data sets for many different sources They could build quickly while the models are still being define so they don’t need to do a long design phase up front - they just start with one Hypnotist and if they need to make a change to the approach they can do this straight away if a different direction needs to be taken , it doesn’t require to rework of the entire project is needed, A simple way to work with Multiple data set/ and multiple sources, which should not be taken for granted , as they have experience from the past , that often data needed to reside within their core systems there and there alone in order to be accessible to use , The ability to explore all or the data, without needing to predefine the views upfront Also be flexible about the level of data that they could use – by having data at the lowest level or detail allows you to open up all future possibility for reporting with having to worry about what needs including of excluding at this early stage So with a any project they could bring in all the levels of detailed granularity These project often require very large volumes of data , in tis instance we are looking at over 1 billion records per month Summary . – This technology facilitated projects to implemented quickly, allows to experiment (including making mistakes) and can be implemented by users of the data Without having to reply on external consultants
- So over the last 12 months Their Central FP&A team delivered all of these projects - The Common factors to each of these where is the from initial conception ideas to going live is a matter or days – normally no more that 2 weeks - Now this does mead that the model was completely finished in that time, as this process allows of continuous review and enhancement, but it did mean that they were being used and business insight and benefit was being realised with a very short time scale even after each month end , they contered what would that like to be included ready for the next one – so continuoud 3 week enhancment cycles , because it so quick to implement = even be able to take things out that they had originally put in after trying it out and them seeing it was not required Board allows you to do a project , without having to worry about the technology as the simplicity allows you to focus on addressing the actual business issue
- We are just going to consider The latest project that has been delivered and take a bit of a deeper dive - Direct product profitability The objective was to be able to understand the product profitability at UPC level after allocating the full costs Stake / wine / fresh produce Most system will give you your gross selling margin – so retail price minus the cost of sales , and then adjust for waste and losses but that’s only half of the story but that’s only half of the story as that not the actual cost of putting that product into the store as you have the logistic costs , on storing the product and moving to the store , you have the property costs of that product taking up space and say needing to be refrigerated , and then staffing cost - filling up the shelf and also the tilling cost of going through the store and paying for it . Having this true profitable at UPC level they can then use this to support there longer term planning and forecasting and to support discussion around supply chain efficiencies And from a space range and display perspective it provides a better understanding of how to optimise the space and range and what to put into each store as the customer offer So they found that some products that do very well in a more affluent area , but if you put them in a different area there is a large amount of waste – so it is vital to be able to asses this profitability at store level . Next step is to look at the predictive analysis and scenario modelling and the look at the impact of prices and help the promotion pricing team and also enhance reporting
- DPP - supports our transformation programs Published Food strategy on the left - to restructure , reset and relaunch food at M&S .New product develop , bigger better fresher food retailer Buying 50% of Ocardo retail business last year means that 2020 with see home deliveries from Marks & Spencer's for the first time – one of the reasons behind Dpp was to be able to see the differing profitability per product on this online channel RHS – all though boxes links directly to dpp – do when one of the problems ( challenged of these new products which one will make money . Some categorrguies , despite generating lots of value, are barely profitabke less you can identify and strip out costs , so reducing the cost of transportation and wasteage ., foucing on correct level of promotionpromotion and price points that are applied So in the press you will see that M&S are the company the grew the most in volume over the last year , but they have significantly reduced their prices Lower the price , bring in more families , make it a better destination for families , The supply chain – again DPP is fumdemetal In supporting the space rage and distription – deciding how much space to give to each product in store across al the stores and all the channels Shoes how dpp directly links back to the stragty of food this sides are more evidence And once again this application was 90 % complete with two weeks and they when through a 4 week process of evaluating and improving the rules