BI Evolution at Levi Strauss Europe

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BI Evolution at Levi Strauss Europe
Colin Reynolds European Information Warehouse
Application Manager
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Agenda

• Introduction to Levi Strauss Europe
• Data Warehousing at Levi Strauss Europe
• The move towards Business Intelligence
• How technology can help.
• Conclusions
• Questions

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Levi Strauss Europe

• 3,600 employees
• Divisional headquarters in Brussels
• 9 sales offices
• 9 distribution centers

• 3 production facilities
• 4 flagship stores
• 4 icon stores
• 275 Levis stores
• 18,000 stores retailing Levis and Dockers
  products

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A portfolio of strong, innovative brands

• Levis, definitive source for jeanswear
• The original, authentic blue jeans
• Iconic, Rebellious, Democratic
• Most widely distributed jeans brand in Europe
• A wide range of products including the iconic
  501, LEVIS ENGINEERED JEANS, Levis Blue,
  Levis RED, and Levis Vintage Clothing.

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A portfolio of strong, innovative brands

• Dockers, definitive source for casual pants
• Stylish, Real, Current
• No. 1 khaki pant brand in the U.S.
• Dockers S-Fit Khakis with water repellent
  fabric
• Levi Strauss Signature
• High quality products for cost-conscious
  consumers
• Value channel retailers
• Available in France, Germany, UK, Switzerland and
  Ireland in 2004

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150 Years of Innovation
2003 LSCO celebrates its 150 years of existence
1994 Introduction of Dockers in Europe
1853 Creation of LSCO.
1928 Levis registered as a trademark
1969-1970 LSCO. introduces bell bottoms into its
jeans line
2000 Introduction of LEVIS ENGINEERED JEANS
1912 Koveralls
1963 Introduction of the Pre-shrunk Levi's
1935 Lady Levis enters the market
2003 Birth of Levi Strauss Signature
1986 Introduction of Dockers khakis in the US
1873 Birth of the riveted blue jeans
1962 Establishment of Levi Strauss Europe
1920 Corduroy Pants
2003 Introduction of LEVIS type 1 Jeans
1996 Global introduction of Levis Vintage
Clothing
1966 First TV Commercial is launched
19th Century 1900s 1920s 1940s
1960s 1970s 1980s
1990s Present
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Agenda

• Introduction to Levi Strauss Europe
• Data Warehousing at Levi Strauss Europe
• The move towards Business Intelligence
• How technology can help.
• Conclusions
• Questions

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LSE EIW BI Environment
IT Environment
Da Vinci
Baan
EPM
ECM
CKB
BO
OFE
FIN
Orders, Shipments,Delivery, FGI, Allocation
Sales/CBS
User Environment
SO
SellIn
Planned Orders
Delivery
LOES
Reports, Data Marts Cubes
EIW
FGI
Production Orders
PORT
SC Forecast FGI data
MS Analysis Services
MS Analysis Services
MUG
FGI ATA S OP PORT
FGI ATA S OP PORT
FGI ATA S OP PORT
AFP Fin Forecast
Hyperion
Units, values, stock
DC Allocation Item Attributes Greek BO, PS, BS
POS External Environment
RICS
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LSE BI Environment
Excel/Powerpoint/PDF
Business Objects
SQL Server/Analysis Services
HP Unix / Oracle 8i
Operating Systems
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LSE EIW History

• Initial development of data warehouse driven by
  performance issues in ERP system.
• Coincided with business reorganisation.
• Originally IT led as a solution to issues above
  with board agreement.
• Result underutilised tactical repository of
  data.

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Intermediate Steps

• Board updates on data warehouse project.
• Focus on data to be collected.
• Sell In
• Sell Out
• Linked to ERP roll out strategy.
• Result - locally utilised tactical repository of
  data.

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LSEMA EIW - Analysis Pyramid - Then
Track effectiveness of model based decisions
implementation of closed loop process that feeds
actions back into operational systems.
Track Actions
Develop models and perform what if analysis and
simulations ability to answer strategic
questions
Model Alternatives
Determine Causal Factors
Understand the root cause of the exceptions, able
to identify reliable relationships interactions
between variables that drive exceptional
performance.
Identify Exceptions
Begin to answer Whats the matter?, Where are
the problems?
Supply Chain OFR Reports
Typically Current results v Plan/Last Yr focus
is improved presentation layer
Sales BPCD Reports
Local Sales Offices AM Reports, LCM Reports
Publish Reports
Distribution SKU Count Report
Sales CM Reports
SC Data
Sales Data
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Agenda

• Introduction to Levi Strauss Europe
• Data Warehousing at Levi Strauss Europe
• The move towards Business Intelligence
• How technology can help.
• Conclusions
• Questions

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Today

• Management teams agree KPIs to be published from
  the data warehouse.
• Links to specific analysis/processes at
  department level.
• Drives demand for OLAP cubes to support lower
  level reporting and analysis.
• Result manually integrated flow of Business
  Intelligence

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LSEMA EIW - Analysis Pyramid - Now
Track effectiveness of model based decisions
implementation of closed loop process that feeds
actions back into operational systems.
Track Actions
Develop models and perform what if analysis and
simulations ability to answer strategic
questions
Model Alternatives
501 Analysis
Determine Causal Factors
Understand the root cause of the exceptions, able
to identify reliable relationships interactions
between variables that drive exceptional
performance.
Identify Exceptions
Begin to answer Whats the matter?, Where are
the problems?
Cross Functional Order Fill Rate Analysis
Typically Current results v Plan/Last Yr focus
is improved presentation layer
Publish Reports
Publish CBS Reports
Sales Dashboard
External Data
Sales Data
Supply Chain Data
Finance Data
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How we use BI to support operational excellence
and leadership in the denim market

• Relaunch of the 501.
• Analyse historical data together with panel data
• Draw conclusions and formulate the strategy
  external to BI system
• Monitor the execution via sell thru data plus
  panel data

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Levis 501 share steady at 24, down from a
peak of 29 wk 15. 501 sell-out performance up
at 14 wk 21 (LW) up from 6 wk 20, however
down from a peak of 22 wk 14. Total YOY MTD
April performance at -9 vs. March -7 and Feb
-7. Traffic YOY MTD April 4 vs. YOY March at
5, YOY Feb. 2 and YOY YTD 2.
Fiscal weeks this year have been matched with
fiscal weeks last year to get a LFL comparison.
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Business Intelligence at all levels in the
Organisation

• Support new Brand Launch LS Signature
• From Acct Mgr through to Brand director,
  integrated reporting via BO Publisher.
• Process level support
• CBS BO full client and pdf reports
• S OP Analysis Services cubes
• Department Level support
• Sales Dashboard Excel OWC/Intranet

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LSE BI Space
OPS Meeting
Finance Reports
S OP Meeting
Sales Reports
BI Tools BO/Analysis Services/Excel
LSE BI Space
EIW Hyperion Enterprise
EIW
Hyperion
Pre Financial Process Facts
Financial Facts
MUG
Baan CP
PORT
LDS
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Agenda

• Introduction to Levi Strauss Europe
• Data Warehousing at Levi Strauss Europe
• The move towards Business Intelligence
• How technology can help.
• Conclusions
• Questions

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Current Position

• Analysis Services used for departmental
  analysis
• Business Objects used for reporting and
  extracting data from the EIW.
• Issues
• lack overall visibility and easy access to the
  data.
• BO not easily accepted by the business and is
  expensive.

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Levis BI Stack current
VPs Department Heads
Managers Business Analysts
MS Analysis Services
Information Consumers
Reports Tracking of the Plan
Business Objects
Business Objects
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VPs Department Heads
Dashboards
MS Analysis Services
Managers Business Analysts
Business Analysts End users
MS Reporting Services
Business
Cube
Cube
Cube
Cube
IT
Business Systems Support/Development Teams - Core
Activities Report Writing, Cube Universe
Design Support
Core European Information Warehouse
EIW/ERP/AI Team - Core Activities EIW Design,
ETL Design, Analysis Services Cube Design, Data
Quality, IT BI/Reporting Strategy Awareness
Knowledge Transfer
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Levis BI Stack 6 18 months
MS Sharepoint Portal
VPs Department Heads
Managers Business Analysts
Dashboards
MS Analysis Services
Information Consumers
MS Reporting Services
Business Objects
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Microsoft Scorecards

• Detailed view of performance and accountability
• Leverage existing LSE MS Analysis Services
  developments eg Forecast/PORT/FGI cubes
• Integrated business analysis tools and
  applications link to underlying cube containing
  data
• Automation of scorecarding process

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Microsoft Analysis Services

• Excel based front end to EIW via Pivot Tables
• Web enabled via Office Web Components
• Excel Add In allows reporting from multiple cubes
  and writeback for forecasting

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Microsoft BI Pros Cons

• Pros
• Easy sell to users.
• Integration with MS Office Suite.
• Cost
• Cons
• One cube one fact table
• IT report writing environment for Reporting
  Services
• Its not Oracle!

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Agenda

• Introduction to Levi Strauss Europe
• Data Warehousing at Levi Strauss Europe
• The move towards Business Intelligence
• How technology can help.
• Conclusions
• Questions

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Conclusions

• Manual integration of BI at operational/management
  levels and within new processes.
• Next Steps
• Integration of BI platform
• Proof of concept on Microsoft BI platform
• Establish a framework for working with Microsoft
  BI platform as an Enterprise solution with
  LogicaCMG.