Modis: implementation of ATC of QlikView for Retail

Modis is the first national network of hypermarkets of fashionable clothes for all family. In network today 40 shops discounters already work in 26 cities of Russia, until the end of 2012 growth of quantity of retail outlets by 50% is planned, and by 2015 the number of shops in network should reach several hundred.

"Our uniqueness is that we offer the affordable prices in a segment of fashionable clothes, and to us in Russia nobody did it. To have low prices, it is necessary to build correctly a business model, mathematically precisely to calculate cash flows. For big network it is necessary to make big purchases, to control costs tightly and thus to have an opportunity to offer low price to buyers. Today we already enter ten the fashionable companies in the Russian market, and we keep the leading position in the segment of fashionable discounters", - Denis Dolmatov, the CEO of Modis network tells.

Needs for analytics
The need for many-sided analytics of business of "Modis", first of all was connected with features of a format and range of network. The discounter wins only due to turnover therefore expansion of network, the range, nomenclature groups, etc. – a basis of success of business. At the same time fashionable retail is distinguished by very high "chronological speed" – the fashion changes, seasons change, collections become outdated: "We have no goods which article can not change within 3-5 years as for example, a carton of milk at grocery chains, except for, maybe, black socks. For promo-goods the change period makes 1-2 weeks, and regular change of collections is performed in 8-12 weeks depending on a product. The share of often replaced goods at us is very high", - Denis Dolmatov notes.

To manage to sell goods until it got out of fashion, it is necessary to understand as as is on sale, to have an opportunity to analyze information maximum, and it is even better – to see in real time what occurs.

"Using only the reporting generated by the accounting system and tabular applications, it is difficult to understand what what product of the sizes and color is really demanded also well is on sale. As a result, decisions are made mostly only based on expert evaluation. As far as this assessment correct? Whether there is enough information for such assessment? We needed the system providing such analytics which would support operational decision making at the most different levels of management", - Yasakov Mikhail, the director of information technology of Modis network tells.

Choice of a BI system

In "Modis" a huge number of data, for example, on check turnover, by the number of visitors who should be processed and displayed quickly is generated. As a matter of fact, it is one of features of business processes of retail. Therefore the possibility of fast processing of large volume of data, and from different sources was one of the main requirements to future BI system. In addition to the accounting system based on SAP, in the company there are many other sources of information which practically are not integrated with each other in any way. The tool allowing to consolidate data from the diverse systems, to analyze them in total, on a set of different cuts was necessary to define change of monetary, commodity and other parameters. One more important task consisted in providing to the management an average and the top management of the mobile analytical solution in which they could control a situation in the company.

The Modis network develops very dynamically and as soon as possible to begin to move in the right direction, the system which is not requiring a long development cycle and implementation was necessary.

"We selected the most suitable from the mass of the solutions presented at the market of BI systems, taking into account our specifics and our requirements. Looked at the presentations, communicated to representatives of vendors, system integrators. At once, for example, SAP BI lost some options of a shallow almost in all respects, and project cost - not the most important reason. Solution "ATC of QlikView: Retail", provided by ATK consulting group, it was pleasant to us the speed of work and absolutely unique interface giving the chance "consider" data from any party, nearly one click of a mouse, - Denis Dolmatov tells. – Other systems had no so beautiful, advanced and high-speed opportunities. Besides, a system did not impose high requirements to the equipment, except for the amount of RAM of the server. One more advantage which was important for us – the incremental implementation allowing to use a ready part of a system while consultants work on other functionality. The alternative with long system deployment and an unknown result of implementation and the subsequent infinite completions - us did not arrange".

In selection process of a large system usually weigh quality, an implementation time and cost of ownership, but Modis went further in the requirements: "When choosing a BI system, we in a complex considered not only the cost and an implementation time, but also convenience of the interface, both high-speed performance, and requirements of a system to the equipment, and its mobile opportunities - Mikhail Yasakov comments. – At the time of the beginning of the project we had no thorough submission of technical specifications of the project: there were many ideas therefore some initial assumptions could be not so important when implementing. Therefore, we also considered "readiness for experiments" of both the system, and the contractor, and already in the course of implementation. With such flexible BI system as QlikView, and the experienced partner, ATK consulting group, we could try different options of implementation of a task online, without long-term reorganization of a data model or the interface and, respectively, to receive so a BI product necessary for business much quicker".

QlikView implementation

Usually implementation of BI systems in the retail companies begins with a task of the analysis of sales. Here Modis not an exception – implementation of QlikView there began with creation comprehensive, complex sales analysts and marginalities for support of expansion of network. The first stage of implementation which came to the end by the fall of 2011 was executed by specialists of ATK consulting group.

"Our understanding of a situation and tasks evolved on the project course. We acted as follows: implemented functionality of the first phase, looked how it works, modified, began to operate actively, and in parallel with these processes consultants of ATC already increased functionality of the following phases, finishing our comments on the previous tasks", - Mikhail Yasakov explains a work progress. - Such approach to us it is initial, at a stage of the choice of the solution, the contractor, ATK consulting group offered, and it was one more powerful plus when choosing a system. Really, during implementation we estimated advantages of iterative incremental structure of the QlikView project and at the exit received a system which completely meets relevant requirements of business".

The project lasted about half a year, and the first results in Modis began to receive and use already 10 days later after the beginning of works. During the project consultants of ATC integrated into the solution QlikView data from different modules of SAP (generally the module of retail sales), counters of visitors, information on sales plans and product cost.

Project Results
Two key directions of the project of steel development of an analytical system for operational decision making and creation of a system of deshbord for the top management and investors.

The QlikView applications for acceptance of management decisions include to the analyst on the main KPI of retail business, ratings, like-for-like to the analysis by shops, products, flowers, the sizes, material types, groups of goods, categories, seasons, collections, suppliers, a price intervals, etc. – several hundred different cuts of data. Today heads of the top and average management, linear managers daily use this QlikView application: "Today for us QlikView is a basis for acceptance of management decisions. Besides, thanks to QlikView we could trace additional indicators on a permanent basis. For example, we began to control daily conversion coefficient i.e. how many from the people who came into shop made purchase for a certain time frame. And it already yields the fruits – we try new planning of trade space, a promotion action in shops and we trace as it influences increase in demand and what efficiency of these marketing costs", Denis Dolmatov comments.

Deshborda on the basis of QlikView, developed by specialists of ATK consulting group, shareholders, investors and top management of Modis use now. Detailed dashboards allow to monitor dynamics of business development from any place in the world, from mobile devices, using WiFi or 3G connection. That the management of the top management and shareholders actively use the implemented systems Mikhail Yasakov sees a basis of success of any implementation project: accounting system or system of a business intelligence:

"Fortunately, notorious approach "from below-up" when the implemented system is used only by average management and non-management employees, and upper managers in the old manner demand the reporting on paper – not our method. The QlikView system became really valuable daily tool: and for investors and shareholders, and for middle managers. It gives the chance to build those analytical reports which are necessary here and now, at this level of management. Moreover, in our case middle managers became only the second wave of users, having seen those rich opportunities which it gives. And too appreciated this remarkable tool. It is healthy when top management is the engine of the project, does not lose interest halfway, daily pays huge attention to the project and penetrates absolutely into all nuances: beginning from data visualization and finishing them with preliminary preparation".

Development of the solution

For Modis one of the main directions of development of technologies is improvement and expansion of opportunities of a BI system based on QlikView. Today specialists of ATK consulting group already began development of analytical circuits on finance and merchandising. "Creation of a full-function system of forecasting and also its completion within the project of creation of the balanced scorecard (BSC) will become the next step of development of QlikView in Modis. For example, me as to the head on IT, interesting not only to see standard performance indicators of my division, to understand how to tie them to performance indicators of all company, but also to define how these or those IT parameters affect profitability of network, not only in a historical or current section, but also in the future. Besides, now we not only are engaged in support of already implemented solution, but also independently we develop it: taking into account wishes of users, on the basis of the new requirements imposed by different divisions of the company. And the fact that support of rather complex system is performed by the minimum number of IT specialists – one more plus for benefit of QlikView", - Mikhail Yasakov tells.