NATIONAL SCORECARD TRANSFORMS HOW BEST BUY DOES BUSINESS
WITH DISPARATE DATA SOURCES AND FRAGMENTED REPORTS, A SOLUTION WAS NEEDED... To align 90,000 employees making decisions based on timely, consistent information. The result was a national scorecard that now serves as a single source graphical representation of information that unifies priorities, tracking and reporting on key business areas.
Best Buy is North America's number-one specialty retailer of consumer electronics, personal computers, entertainment software and appliances. With over 700 stores nationwide and rapid growth continuing, Best Buy needed an application that was simple to use, delivered consistent information on which to run the business, and was intuitive enough to be used by everyone in the company.
THE SITUATION
Historically, Best Buy had several disparate data sources with various users having access to relatively small sets of metrics producing fragmented reports while the demand for information and more complex ad-hoc reporting continued to increase exponentially. The data that would satisfy the demand was neither contained nor accessible within one data source, nor could employees access key information. And, out-of-the-box analysis software was not sophisticated enough to provide the ad-hoc drilling needed to make decisions based on root cause analysis. With no way to access and analyze the information essential to drive this fast-paced transaction-oriented business, Best Buy turned to Lancet for help.
THE SOLUTION
For 7 years Best Buy looked for a partner that was business savvy with IT vision and technical expertise to deliver an application that would feed critical information to every channel in the company, driving daily workflow, and do it all at a low total cost of ownership. There was no centralized data repository, no clear path from key information to its root cause for analysis, no way to custom drill, nor a way to perform ad-hoc inquiries and get reports to retail without putting IT processes at risk. "Lancet was the only company we found that could realize our vision. They brought strategy, thought-leadership and Business Intelligence expertise, "said Brad Elo, Director, Margin Enhancement Strategies.
With years of Business Intelligence experience, Lancet worked with Best Buy's internal team to develop the technology strategy that delivered on Best Buy's vision. They also played a key role in executing the plan -- mapping out logical connections and creating a custom functional, workflow-based drilling architecture and ad-hoc reporting system for the enterprise-wide national scorecard which has become a cornerstone application within Best Buy because of the way it has transformed the business. The resulting solution allows the business to get the information they need directly without going to IT resulting in lower costs while maintaining the security and integrity of the production systems. In addition, the complexities and technical challenges are easily managed behind the scenes while employees are presented with a front-end that is simple to use and intuitive yet extremely powerful. "Lancet continues to play a key role in the project, including long term vision for the application," adds Elo.
THE RESULTS
Companywide, the national scorecard is the key to Best Buy's marketing and company intelligence. It is the single source that aligns and unifies the retail organization's priorities, tracking and reporting on key business areas, presenting information to users at all levels in the company in a format that is meaningful to them. The application touches every aspect of the business and keeps all 90,000 employees informed and focused on the same consistent information across the enterprise. Everyday these reports guide proactive behaviors essential to keeping Best Buy in the forefront of the fast-paced, consumer electronics retail business.
Each week, over 1 million reports are generated that present accurate snapshots of the business from all angles. For the first time employees at the stores can get useful customer information and understand what items or categories are "hot", answering key questions about what customers need and how sales associates can better interact in order to enhance the customer experience and foster passionate customer loyalty.
Best Buy is more proactive and responds rapidly because trends can easily be identified. Problem areas or issues can be set to, "What If," scenarios, and access to data and response time is immediate. Plus, the data resources are so unified and rich that drilling anywhere is possible. Operations can see up-to-date labor allocation, usage, and spending. Sales performance metrics are readily accessible and time spent in front of the computer has been reduced, allowing store personnel more time with the customers. Retail behavior can be immediately adjusted and better paths to action are employed. With accurate, consistent information at their fingertips, employees know what to do and what not to do everyday.
The return on investment is astonishing. For each $1 spent on the scorecard application, Best Buy yields a $4 return. Says Elo, "Lanced turned our vision into reality, transforming the way we do business - from the CEO to store management to customer specialists - with insight into information that helps us proactively manage our business while delivering a four-fold return on investment."
The possibilities for the future of the national scorecard are endless and Lancet will play an integral part. "Our national scorecard has proved itself to be the most strategic application in the company. It keeps all 90,000 employees focused on the key business drivers that give us the competitive advantage not possible before. Working with Lancet is a big win for Best Buy," concludes Elo.
Lancet turned our vision into reality, transforming the way we do business - from the CEO to store management to customer specialists - with insight into information that helps us proactively manage our business while delivering a four-fold return on investment.- Brad Elo, Director of Margin Enhancement Strategies, Best Buy