| any times does this happen in your company? You go | | | | not use them as the source for their information. |
| to a meeting about sales performance, and Marketing | | | | Management has to go to extremes to get what they |
| says they think sales are up 3.5%, but the merchants | | | | need, either by requesting that department managers |
| disagree and say sales are up 6.3%. The specific | | | | pull data or by using business analysts to come up with |
| numbers in this example aren’t important; the | | | | reporting. Because these are manual efforts using |
| point is that the two figures aren’t even close. | | | | sources not originally geared to management’s |
| That’s the reality in most companies today. | | | | needs, they are delay-riddled, error prone processes. |
| Or, say management has tasked you with developing | | | | And they still don’t deliver a “single |
| a report and you try and go back to prior results, | | | | version of the truth.” |
| maybe from a season or two ago. How many | | | | You get the picture. There simply isn’t a |
| different versions of the sales, purchase and inventory | | | | “single version of the truth” for the |
| plans are there? Which ones are the actual and which | | | | major data elements used in many businesses. For |
| were prior versions? | | | | management to have confidence in the integrity of the |
| Some readers might say we could do a better job of | | | | data they’re getting, I think the time has come |
| controlling and eliminating versions of | | | | to advocate and budget for projects that resolve |
| plans—which is certainly true, and something | | | | these problems. Such problems are not new, and I |
| every company should work toward. Or you may say | | | | believe they inhibit the effective management and |
| if we use only one enterprise system we can eliminate | | | | growth of direct businesses. |
| this dilemma. But that isn’t really the solution; | | | | Here is a hierarchy of solutions you should consider: |
| such systems aren’t viable for most | | | | • Extract data from major transaction |
| companies, and anyway, there are multiple data | | | | processing systems into Excel or other reports |
| elements that are all valid for whatever processing | | | | • Access databases, and business analysts |
| system is being used. There isn’t a | | | | using OLAP tools |
| “single version of the truth”—one | | | | • Data warehouse products |
| official set of figures for sales, inventory, plan, history, | | | | • Business intelligence systems with |
| etc. | | | | dashboards and analytics |
| Take for example a product’s inventory. You | | | | As the New Year approaches, it’s time to |
| can find sales plans on a user-derived Access system | | | | advocate with management for solutions to this |
| or Excel spreadsheets. A product’s inventory | | | | problem. Especially in this economy, knowing exactly |
| on hand in units and dollars occurs on your order | | | | where you stand is essential. You can only control |
| management system. A separate best-of-breed | | | | expenses and inventory and know which products and |
| warehouse management system will also include the | | | | promotions are working—and which |
| same product on hand, but needs to be synched up | | | | aren’t—if you have accurate data on |
| daily. The finance system will also carry the total | | | | which everybody across the company can agree. In |
| company inventory in dollars—probably not | | | | our experience, companies that used business |
| updated real time, but daily or weekly. You may also | | | | intelligence systems to overcome such information |
| have a specialized standalone forecasting and | | | | problems have been successful in getting a positive |
| inventory management system, to project inventory by | | | | ROI from these types of systems within 12 to 18 |
| promotion or catalog campaign. | | | | months. And in today’s business environment, |
| Additionally, because the major transaction systems | | | | that’s a “single version of the |
| require a high degree of training, management does | | | | truth” on which all companies can agree. |