Mining the Data Warehouse According to a Merrill Lynch survey in 2006, business intelligence software and data-mining tools were at the top of CIOs' technology spending list. Following are a few examples of how companies are using data warehousing and data-mining tools to gain valuable business intelligence. BEN & JERRY'S
These days, when we all scream for ice cream, Ben & Jerry's cuts through the din by using integrated query, reporting, and online analytical processing technology from BI software vendor Business Objects.
Through an Oracle database and with BI from Business Objects, Ben & Jerry's tracks the ingredients and life of each pint. If a consumer calls in with a complaint, the consumer affairs staff matches the pint with which supplier's milk, eggs, cherries, or whatever did not meet the organization's near-obsession with quality.
The BI tools let Ben & Jerry's officials access, analyze, and act on customer information collected by the sales, finance, purchasing, and quality-assurance departments. The company can determine what milk customers prefer in the making of the ice cream. The technology helped Ben & Jerry's track more than 12,500 consumer contacts in 2005. The information ranged from comments about the ingredients used in ice cream to queries about social causes supported by the company.
CALIFORNIA PIZZA KITCHEN
California Pizza Kitchen (CPK) is a leading casual dining chain in the premium pizza segment with a recognized consumer brand and an established, loyal customer base. Founded in 1985, there are currently more than 130 full-service restaurants in over 26 states, the District of Columbia, and five foreign countries. Before implementing its BI tool, Cognos, CPK used spreadsheets to plan and track its financial statements and line items.
The finance team had difficulty managing the volumes of information, complex calculations, and constant changes to the spreadsheets. It took several weeks of two people working full time to obtain one version of the financial statements and future forecast. In addition, the team was limited by the software's inability to link cells and calculations across multiple spreadsheets, so updating other areas of corporate records became a time-consuming task. With Cognos, quarterly forecasting cycles have been reduced from eight days to two days. The finance team can now spend more time reviewing the results rather than collecting and entering the information.
NOODLES & COMPANY
Noodles & Company has more than 70 restaurants throughout Colorado, Illinois, Maryland, Michigan, Minnesota, Texas, Utah, Virginia, and Wisconsin.
The company recently purchased Cognos BI tools to help implement reporting standards and communicate real-time operational information to field management throughout the United States. Before implementing the first phase of the Cognos solution, IT and finance professionals spent days compiling report requests from numerous departments including sales and marketing, human resources, and real estate. Since completing phase one, operational Cognos reports are being accessed on a daily basis through the Noodles & Company Web site.
This provides users with a single, 360-degree view of the business and consistent reporting throughout the enterprise. Noodles & Company users benefit from the flexible query and reporting capabilities, allowing them to see patterns in the information to leverage new business opportunities. Cognos tools can pull information directly from a broad array of relational, operational, and other systems.
Questions
1. How is Ben & Jerry's using BI tools to remain successful and competitive in a saturated market?
2. Why is information cleansing critical to California Pizza Kitchen's BI tools success?
3. Why is 100 percent accurate and complete information impossible for Noodles & Company to obtain?
4. Describe how each of the companies above is using BI from its data warehouse to gain a competitive advantage.