POI Pulse February 8, 2016

The concept of having analytical capabilities either embedded into an application or as separate and adjunct has been around for as long as the underlying applications. Nevertheless, the survey clearly shows that, for both TPx and Retail Execution, the perception is that analytical capabilities are not where then need to be. This impedes both internal and external collaboration. But the reasons are complex and the shortfall cannot be laid at the feet of the technology vendors. As we have already established, there is a change management element. CG companies have already pointed out that they have difficulty finding qualified people who can use existing systems. There is also the lack of trust in what they see in these systems. In addition, there are the data quality issues. However, laying aside these issues that we have also addressed, and trying to isolate this thing we call analytics to the degree possible, we can come up with some recommendations. But first let’s look at what survey respondents said about their analytical capabilities as a whole.

–        If you feel your analytics are not up to par, you may want to consider new tools. This may seem drastic, but if it is the only way to improve your ability to execute at the headquarters and store levels you will likely recuperate the cost of a new deployment through better trade spend, supply chain planning, and winning at the shelf. Furthermore, trying to add a generic BI tool onto your TPM or retail execution tool has been done many times, but it is rarely successful, as such tools are not configured for this industry and only because users to have to toggle back and forth between systems to “understand” in one and “execute” in yet another.

–        Always get users involved in any technology selection process and specifically task them with continuing to ask “does this tool make me smarter and able to sell more?”

–        Recognize that insight is the currency of collaboration.  If retailers are executing around you, instead of with you, then you need to up your game.

–        Think in continuous loops: plan – execute – analyze. Dumping data to spreadsheets is not an option because it breaks the loop and adds latency into the process. The same is true for toggling back and forth with a BI tool. Trade promotion management and post-event analysis should be a single set of capabilities. It is just too cumbersome otherwise.

–        Make post-event analysis a prerequisite for next year funding/continued accrual spending. First, put the appropriate tools in place with automation to remove the angst. Then, work to change the culture from “evaluate events if you can” to “evaluate events because you must.”

Learn more and reach Mike Kantor to access the complete report, and engage with the POI team. mkantor@p-o-i.org,