Protecting the magic and transforming the rest_Board_Marks&Spencer

Editor's Notes

• #4: 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
• #5: 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    
• #6: 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
• #7: 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