11.6 - 11.7 - case

8
7/25/2019 11.6 - 11.7 - case http://slidepdf.com/reader/full/116-117-case 1/8 11.6 MARKETING DATABASES IN ACTION Data warehouses and data marts serve end users n a!! "un#tona! areas. $owever% the most dramat# a&&!#atons o" data warehousn' and mnn' are n mar(etn'% as seen n the $arrah)s #ase% n what s re"erred to as mar(etn' data*ases +a!so re"erred to as data*ase mar(etn' ,. In ths se#ton we e-amne how data warehouses% ther e-tensons% and data mnn' are used% and what ro!e the &!a n new mar(etn' strate'es% su#h as the use o" /e*0*ased mar(etn' transa#ton data*ases n ntera#tve mar(etn'. Most #urrent data*ases are stat# The sm&! 'ather and store n"ormaton a*out #ustomers. The a&&ear n the "o!!own' #ate'ores o&eratons data*ases% data warehouses% and mar(etn' data*ases. Su##ess n mar(etn' toda re2ures a new (nd o" data*ase% orented toward tar'etn' the &ersona!3n' mar(etn' messa'es n rea! tme. Su#h a data*ase &rovdes the most e""e#tve means o" #a&turn' n"ormaton on #ustomer &re"eren#es and needs. In turn% enter&rses #an use ths (now!ed'e to #reate new and4or &ersona!3ed &rodu#ts and serv#es. Su#h a data*ase s #a!!ed a mar(etn' transa#ton data*ase +MTD,. The MTD #om*nes man o" the #hara#terst#s o" the #urrent data*ases and mar(etn' data sour#es nto a new data*ase that a!!ows mar(eters to en'a'e n rea!0tme &ersona!3aton and tar'et ever ntera#ton wth #ustomers. MTD)S CA5ABIITIES. The MTD &rovdes dnam#% or ntera#tve% "un#tons not ava!a*!e wth tradtona! t&es o" mar(etn' data*ases. In mar(etn' terms% a transa#ton o##urs wth the e-#han'e o" n"ormaton. /th ntera#tve meda% ea#h e-&osure to the #ustomer *e#omes an o&&ortunt to #ondu#t a mar(etn' 7transa#ton.8 E-#han'n' n"ormaton +whether 'athered a#tve! throu'h re'straton or user re2uests% or &assve! * montorn' #ustomer *ehavor, a!!ows mar(eters to re"ne ther understandn' o" ea#h #ustomer #ontnuous! and to use that n"ormaton to tar'et hm or her s&e#"#a!! wth &ersona!3ed mar(etn' messa'es. Ths s done most "re2uent! on the /e*. Com&arn' varous #hara#terst#s o" MTDs wth other mar(etn'0re!ated data*ases shows the advanta'es o" MTDs. 9or e-am&!e% mar(etn' data*ases "o#us on understandn' #ustomers) *ehavor% *ut do not tar'et the ndvdua! #ustomer nor &ersona!3e the mar(etn' a&&roa#h% as do MTDs. Addtona!!% data n MTDs #an *e u&dated n rea! tme% as o&&osed to the &erod# +wee(!% month!% or 2uarter!, u&dates that are #hara#terst# o" data warehouses and mar(etn' data*ases. A!so% the data 2ua!t n an MTD s "o#used% and s ver"ed  * the ndvdua! #ustomers. It thus s o" mu#h h'her 2ua!t than data n man o&eratons data*ases% where !e'a# sstems ma o""er on! &oor assuran#e o" data 2ua!t. 9urther% MTDs #an #om*ne varous t&es o" data:*ehavora!% des#r&tve% and dervatve; other t&es o" mar(etn' data*ases ma o""er on! one or two o" these t&es. Note that MTDs do not e!mnate the need "or tradtona! data*ases. The #om&!ement them * &rovdn' addtona! #a&a*!tes +see On!ne Mn#ase 1% De!! Com&uters,. T$E ROE O9 T$E INTERNET. Data mnn'% data warehousn'% and MTDs are de!vered on the Internet and ntranets. The Internet does not sm&! re&resent another advertsn' venue or a d""erent medum "or #ata!o' sa!es. Rather% t #ontans new attr*utes that smart mar(eters #an e-&!ot to ther "u!!est de'ree. Indeed% the Internet &romses to revo!uton3e sa!es and mar(etn'. De!! Com&uter +see On!ne Mn#ase 1, o""ers an e-am&!e o" how mar(etn' &ro"essona!s #an use the Internet)s e!e#tron# sa!es and mar(etn' #hanne!s "or mar(et resear#h% advertsn'% n"ormaton dssemnaton% &rodu#t mana'ement% and  &rodu#t de!ver. 9or an overvew o" mar(etn' data*ases and the /e*% see

Upload: xiao-ling-ling

Post on 01-Mar-2018

214 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: 11.6 - 11.7 - case

7/25/2019 11.6 - 11.7 - case

http://slidepdf.com/reader/full/116-117-case 1/8

11.6 MARKETING DATABASES IN ACTION

Data warehouses and data marts serve end users n a!! "un#tona! areas. $owever%the most dramat# a&&!#atons o" data warehousn' and mnn' are nmar(etn'% as seen n the $arrah)s #ase% n what s re"erred to as mar(etn' data*ases+a!so re"erred to as data*ase mar(etn' ,.

In ths se#ton we e-amne how data warehouses% ther e-tensons% and datamnn' are used% and what ro!e the &!a n new mar(etn' strate'es% su#h asthe use o" /e*0*ased mar(etn' transa#ton data*ases n ntera#tve mar(etn'.Most #urrent data*ases are stat# The sm&! 'ather and store n"ormaton a*out#ustomers. The a&&ear n the "o!!own' #ate'ores o&eratons data*ases% datawarehouses% and mar(etn' data*ases. Su##ess n mar(etn' toda re2ures a new(nd o" data*ase% orented toward tar'etn' the &ersona!3n' mar(etn' messa'esn rea! tme. Su#h a data*ase &rovdes the most e""e#tve means o" #a&turn'n"ormaton on #ustomer &re"eren#es and needs. In turn% enter&rses #an use ths(now!ed'e to #reate new and4or &ersona!3ed &rodu#ts and serv#es. Su#h a data*ases #a!!ed a mar(etn' transa#ton data*ase +MTD,. The MTD #om*nes

man o" the #hara#terst#s o" the #urrent data*ases and mar(etn' data sour#esnto a new data*ase that a!!ows mar(eters to en'a'e n rea!0tme &ersona!3atonand tar'et ever ntera#ton wth #ustomers.MTD)S CA5ABIITIES. The MTD &rovdes dnam#% or ntera#tve% "un#tons notava!a*!e wth tradtona! t&es o" mar(etn' data*ases. In mar(etn' terms% atransa#ton o##urs wth the e-#han'e o" n"ormaton. /th ntera#tve meda% ea#h e-&osure tothe #ustomer *e#omes an o&&ortunt to #ondu#t a mar(etn'7transa#ton.8 E-#han'n' n"ormaton +whether 'athered a#tve! throu'hre'straton or user re2uests% or &assve! * montorn' #ustomer *ehavor,a!!ows mar(eters to re"ne ther understandn' o" ea#h #ustomer #ontnuous!and to use that n"ormaton to tar'et hm or her s&e#"#a!! wth &ersona!3edmar(etn' messa'es. Ths s done most "re2uent! on the /e*.Com&arn' varous #hara#terst#s o" MTDs wth other mar(etn'0re!ateddata*ases shows the advanta'es o" MTDs. 9or e-am&!e% mar(etn' data*ases"o#us on understandn' #ustomers) *ehavor% *ut do not tar'et the ndvdua! #ustomer nor &ersona!3e the mar(etn' a&&roa#h% as do MTDs. Addtona!!% datan MTDs #an *e u&dated n rea! tme% as o&&osed to the &erod# +wee(!%month!% or 2uarter!, u&dates that are #hara#terst# o" data warehouses andmar(etn' data*ases. A!so% the data 2ua!t n an MTD s "o#used% and s ver"ed

 * the ndvdua! #ustomers. It thus s o" mu#h h'her 2ua!t than data n mano&eratons data*ases% where !e'a# sstems ma o""er on! &oor assuran#e o" data

2ua!t. 9urther% MTDs #an #om*ne varous t&es o" data:*ehavora!% des#r&tve%and dervatve; other t&es o" mar(etn' data*ases ma o""er on! one or two o" these t&es. Note that MTDs do not e!mnate the need "or tradtona!data*ases. The #om&!ement them * &rovdn' addtona! #a&a*!tes +seeOn!ne Mn#ase 1% De!! Com&uters,.T$E ROE O9 T$E INTERNET. Data mnn'% data warehousn'% and MTDs arede!vered on the Internet and ntranets. The Internet does not sm&! re&resentanother advertsn' venue or a d""erent medum "or #ata!o' sa!es. Rather% t#ontans new attr*utes that smart mar(eters #an e-&!ot to ther "u!!est de'ree.Indeed% the Internet &romses to revo!uton3e sa!es and mar(etn'. De!! Com&uter +see On!ne Mn#ase 1, o""ers an e-am&!e o" how mar(etn' &ro"essona!s

#an use the Internet)s e!e#tron# sa!es and mar(etn' #hanne!s "or mar(etresear#h% advertsn'% n"ormaton dssemnaton% &rodu#t mana'ement% and

 &rodu#t de!ver. 9or an overvew o" mar(etn' data*ases and the /e*% see

Page 2: 11.6 - 11.7 - case

7/25/2019 11.6 - 11.7 - case

http://slidepdf.com/reader/full/116-117-case 2/8

Grossn#(!e and Ras(n +<===,.9ewer and "ewer #om&anes #an a""ord tradtona! mar(etn' a&&roa#hes% wh#hn#!ude *'0&#ture strate'es and e-&ensve mar(etn' #am&a'ns. Mar(etn'de&artments are *en' s#a!ed down% +and so s the tradtona! mar(etn'a&&roa#hes, and new a&&roa#hes su#h as one0to0one mar(etn'% s&eed mar(etn'%ntera#tve mar(etn'% and re!atonsh& mar(etn' are *en' em&!oed +see

Strauss et a!.% <==>,. The "o!!own' e-am&!es !!ustrate how #om&anes use datamnn' and warehousn' to su&&ort the new mar(etn' a&&roa#hes. 9or other e-am&!es% see On!ne 9!e /11.?.@ Throu'h ts on!ne re'str "or e-&e#tant &arents% Bur!n'ton Coat 9a#tortra#(s "am!es as the 'row. The #om&an then mat#hes dre#t0ma! matera!to the d""erent sta'es o" a "am!)s deve!o&ment over tme. Bur!n'tona!so dent"es% on a da! *ass% to&0se!!n' st!es and *rands. B d''n' ntoreams o" demo'ra&h# data% hstor#a! *un' &atterns% and sa!es trends ne-stn' stores% Bur!n'ton determnes where to o&en ts ne-t store and whatto sto#( n ea#h store.@ Au Bon 5an Com&an% In#.% a Boston0*ased #han o" #a"es% ds#overed that

the #om&an was not se!!n' as mu#h #ream #heese as &!anned. /hen t ana!3ed &ont0o"0sa!e data% the "rm "ound that #ustomers &re"erred sma!!%Im&!ementatonE-am&!es11.6 MARKETING DATABASES IN ACTION < one0servn' &a#(a'n' +!(e *utter,. As soon as the &a#(a'e s3e o" the #ream#heese was #han'ed% sa!es shot u&.@ Ban( o" Amer#a 'ets more than 1==%=== te!e&hone #a!!s "rom #ustomers everda. Ana!3n' #ustomers) *an(n' a#tvtes% the *an( determnes what ma

 *e o" nterest to them. So when a #ustomer #a!!s to #he#( on a *a!an#e% the *an( tres to se!! the #ustomer somethn' n wh#h he or she m'ht *e nterested.@ Su&ermar(et #hans re'u!ar! ana!3e reams o" #ash re'ster data to ds#over what tems #ustomers are t&#a!! *un' at the same tme. These sho&&n'

 &atterns are used "or ssun' #ou&ons% des'nn' "!oor !aouts and &rodu#ts)!o#aton% and #reatn' she!" ds&!as.@ In ts data warehouse% the Ch#a'o Tr*une stores n"ormaton a*out #ustomer 

 *ehavor as #ustomers move throu'h the varous news&a&er /e*stes. Data mnn' he!&s to ana!3e vo!umes o" data ran'n' "rom what

 *rowsers are used to what h&er!n(s are #!#(ed on most "re2uent!.The data warehouses n some #om&anes n#!ude severa! tera*tes or moreo" data +e.'.% at Sears% see Mn#ase 1,. The need to use su&er#om&utn' to s"t

2u#(! throu'h the data. /a!0Mart% the wor!d)s !ar'est ds#ount reta!er% has a''ant# data*ase% as shown n IT At /or( 11.>.

11. /EB0BASED DATA MANAGEMENT SSTEMS

Data mana'ement and *usness nte!!'en#e a#tvtes:"rom data a#2uston+e.'.% At3en et a!.% <==<,% throu'h warehousn'% to mnn':are o"ten &er"ormedwth /e* too!s% or are nterre!ated wth /e* te#hno!o'es and e0*usness+see autaud% <==1,. sers wth *rowsers #an !o' onto a sstem% ma(e n2ures%and 'et re&orts n a rea!0tme settn'. Ths s done throu'h ntranets% and "or 

outsders va e-tranets +see remed.#om ,.E0#ommer#e so"tware vendors are &rovdn' /e* too!s that #onne#t the datawarehouse wth EC ordern' and #ata!o'n' sstems. $ta#h)s EC too! sute%

Page 3: 11.6 - 11.7 - case

7/25/2019 11.6 - 11.7 - case

http://slidepdf.com/reader/full/116-117-case 3/8

Trade!n( +at hta#h.#om ,% #om*nes EC a#tvtes su#h as #ata!o' mana'ement% &ament a&&!#atons% mass #ustom3aton% and order mana'ement wth datawarehousesand martsand ER5 sstems. Ora#!e +see /nter% <==1, and SA5 o""er sm!ar &rodu#ts.Data warehousn' and de#son su&&ort vendors are #onne#tn' ther &rodu#tswth /e* te#hno!o'es and EC. E-am&!es n#!ude Bro)s Bro One% /e* Inte!!'en#e

"rom Busness O*e#ts% and Co'nos)s DataMer#hant. $&eron)s A&&sour#e7wred "or OA58 &rodu#t #onne#ts OA5 wth /e* too!s. IBM)s De#son Ed'e ma(es OA5 #a&a*!tes ava!a*!e on the ntranet "rom anwhere n the #or&oratonusn' *rowsers% sear#h en'nes% and other /e* te#hno!o'es. M#roStrate'o""ers DSS A'ent and DSS /e* "or he!& n dr!!n' down "or deta!ed n"ormaton%

 &rovdn' 'ra&h#a! vews% and &ushn' n"ormaton to users) des(to&s. Ora#!e)s9nan#a! Ana!3er and Sa!es Ana!3er% $ummn'*rd)s B4/e* and B4Bro(er% andsevera! o" the &rodu#ts #ted a*ove *rn' ntera#tve 2uern'% re&ortn'% and other OA5 tas(s to man users +*oth #om&an em&!oees and *usness &artners, vathe /e*. A!so% "or a #om&rehensve ds#usson o" *usness nte!!'en#e on the /e*%see the whte &a&er at *usnesso*e#ts.#om .

The sstems des#r*ed n the &revous se#tons o" ths #ha&ter #an *e nte'ratedon * /e*0*ased &!at"orms% su#h as the one shown n 9'ure 11.. The/e*0*ased sstem s a##essed va a &orta!% and t #onne#ts the "o!!own' &arts

Page 4: 11.6 - 11.7 - case

7/25/2019 11.6 - 11.7 - case

http://slidepdf.com/reader/full/116-117-case 4/8

the *usness nte!!'en#e +BI, serv#es% the data warehouse and marts% the #or&oratea&&!#atons% and the data n"rastru#ture. A se#urt sstem &rote#ts the#or&orate &ro&retar data. et)s e-amne how a!! o" these #om&onents wor( 

to'ether va the #or&orate &orta!.Enter&rse BI sutes +EBISs, nte'rate 2uer% re&ortn'% OA5% and other too!s.The are s#a!a*!e% and o""ered * man vendors +e.'.% IBM% Ora#!e% M#roso"t%$&eron So!uton% Sa'ent Te#hno!o'% A!&haB!o-% M#roStrate' and Crsta!De#sons,. EBISs are o""ered usua!! va enter&rse &orta!s.In Cha&ter F we ntrodu#ed the #on#e&t o" #or&orate &orta!s as a /e*0*ased'atewa to data% n"ormaton% and (now!ed'e. As seen n 9'ure 11.% the &orta!nte'rates data "rom man sour#es. It &rovdes end users wth a sn'!e /e**ased

 &ont o" &ersona!3ed a##ess to BI and other a&&!#atons. (ewse% t &rovdesIT wth a sn'!e &ont o" de!ver and mana'ement o" ths #ontent. sersare em&owered to a##ess% #reate% and share va!ua*!e n"ormaton.

The amount o" data n the data warehouse #an *e ver !ar'e. /h!e the or'an3atono" data s done n a wa that &ermts eas sear#h% t st!! ma *e use"u!to have a sear#h en'ne "or s&e#"# a&&!#atons. u +1??, des#r*es how an nte!!'enta'ent #an m&rove the o&eraton o" a data warehouse n the

 &u!& and &a&er ndustr. Ths a&&!#aton su&&!ements the montorn' ands#annn' o" e-terna! strate'# data. The nte!!'ent a'ent a&&!#aton #an serve

 *oth mana'ers) ad0ho# 2uer4re&ortn' n"ormaton needs and the e-terna!data needs o" a strate'# mana'ement su&&ort sstem "or "orest #om&anes n9n!and.ar'e and ever n#reasn' amounts o" B<C data a*out #onsumers% &rodu#ts% et#.#an *e #o!!e#ted. Su#h data #ome "rom severa! sour#es nterna! data +e.'.% sa!esdata% &aro!! data et#.,% e-terna! data +e.'.% 'overnment and ndustr re&orts,%and #!#(stream data. C!#(stream data are those that o##ur nsde the /e*envronment% when #ustomers vst a /e* ste. The &rovde a tra! o" the users)

Page 5: 11.6 - 11.7 - case

7/25/2019 11.6 - 11.7 - case

http://slidepdf.com/reader/full/116-117-case 5/8

a#tvtes n the /e* ste% n#!udn' user *ehavor and *rowsn' &atterns. B!oo(n' at #!#(stream data% an e0ta!er #an "nd out su#h thn's as wh#h

 &romotons are e""e#tve and wh#h &o&u!aton se'ments are nterested ns&e#"# &rodu#ts.A##ordn' to Inmon +<==1,% #!#(stream data #an revea! n"ormaton toanswer 2uestons su#h as the "o!!own' /hat 'oods has the #ustomer !oo(ed

at or &ur#hasedH /hat tems dd the #ustomer *u n #onun#ton wth other temsH /hat ads and &romoton were e""e#tveH /h#h were ne""e#tveH Are#ertan &rodu#ts too hard to "ndH Are #ertan &rodu#ts too e-&ensveH Is therea su*sttute &rodu#t that the #ustomer "nd "rstHThe /e* s an n#red*! r#h sour#e o" *usness nte!!'en#e% and manenter&rses are s#ram*!n' to *u!d data warehouses that #a&ture the (now!ed'e#ontaned n the #!#(stream data "rom ther /e* stes. B ana!3n' the user 

 *ehavor &atterns #ontaned n these #!#(stream data warehouses% savv *usness#an e-&and ther mar(ets% m&rove #ustomer re!atonsh&s% redu#e #osts%stream!ne o&eratons% stren'then ther /e* stes% and hone ther *usnessstrate'es. One has two o&tons n#or&orate /e*0*ased data nto &ree-stn'

data warehouses% or to *u!d new #!#(stream data warehouses that are #a&a*!eo" shown' *oth e0*usness a#tvtes and the non0/e* as&e#ts o" the

 *usness n an nte'rated "ashon. +see Swe'er at e!.% <==<,.

Mn#ase 15re#son Bun'% Mer#handsn'% and Mar(etn' at SearsThe 5ro*!em. Sears% Roe*u#( and Com&an% the !ar'est de&artmentstore #han and the thrd0!ar'est reta!er n thented States% was #au'ht * sur&rse n the 1?=s as sho&&ersde"e#ted to s&e#a!t stores and ds#ount mass mer#handsers%#ausn' the "rm to !ose mar(et share ra&d!. In an attem&tto #han'e the stuaton% Sears used severa! res&onsestrate'es% ran'n' "rom ntrodu#n' ts own s&e#a!t stores+su#h as Sears $ardware, to restru#ture ts ma!!0*ased stores.Re#ent!% Sears has moved to se!!n' on the /e*. It ds#ontnuedts &a&er #ata!o'. A##om&!shn' the trans"ormatonand restru#turn'% re2ured the retoo!n' o" ts n"ormatonsstems.Sears had 1 data #enters% one n ea#h o" 1= 'eo'ra&h#a!re'ons as we!! as one ea#h "or mar(etn'% "nan#e% and

other de&artments. The "rst &ro*!em was #reated when thereor'an3aton e""ort &rodu#ed on! seven 'eo'ra&h#a! re'ons.9re2uent msmat#hes *etween a##ountn' and sa!es"'ures and n"ormaton s#attered amon' numerous data*ases"or#ed users to 2uer mu!t&!e sstems% even whenthe needed an answer to a sm&!e 2uer. 9urthermore%users "ound that data that were a!read summar3ed madet d""#u!t to #ondu#t ana!ss at the desred !eve! o" deta!.9na!!% errors were vrtua!! nevta*!e when #a!#u!atonswere *ased on data "rom severa! sour#es.The So!uton. To so!ve these &ro*!ems Sears #onstru#ted

a sn'!e sa!es n"ormaton data warehouse. Thsre&!a#ed the 1 o!d data*ases wh#h were &a#(ed wthredundant% #on"!#tn'% and sometmes o*so!ete data. The

Page 6: 11.6 - 11.7 - case

7/25/2019 11.6 - 11.7 - case

http://slidepdf.com/reader/full/116-117-case 6/8

new data warehouse s a sm&!e re&ostor o" re!evantde#son0ma(n' data su#h as authortatve data "or (e

 &er"orman#e nd#ators% sa!es nventores% and &ro"t mar'ns.Sears% (nown "or em*ra#n' IT on a dramat# s#a!e%#om&!eted the data warehouse and ts IT reen'neern'e""orts n under one ear:a &er"e#t IT turnaround stor.

sn' an NCR enter&rse server% the nta! 1. tera*te+1. tr!!on *tes, data warehouse s &art o" a &roe#tdu**ed the Strate'# 5er"orman#e Re&ortn' Sstem+S5RS,. B <==>% the data warehouse had 'rown to over = tera*tes. S5RS n#!udes #om&rehensve sa!es data; n"ormatonon nventor n stores% n transt% and at dstr*uton#enters; and #ost &er tem. Ths has ena*!ed Searsto tra#( sa!es * ndvdua! tems+s(us, n ea#h o" ts 1%?=stores +n#!udn' 1= ma!!0*ased stores, n the ntedStates and 1%6== nternatona! stores and #ata!o' out!ets.Thus% da! mar'n * tem &er store #an *e eas! #om&uted%

"or e-am&!e. 9urthermore% Sears now "ne tunes ts *un'% mer#handsn'% and mar(etn' strate'es wth &revous! unattana*!e &re#son.S5RS s o&en to a!! author3ed em&!oees% who now #anvew ea#h da)s sa!es "rom a mu!tdmensona! &ers&e#tve+* re'on% dstr#t% store% &rodu#t !ne% and ndvdua!tem,. sers #an s&e#" an startn' and endn' dates "or s&e#a! sa!es re&orts% and a!! data #an *e a##essed va ah'h! user0"rend! 'ra&h#a! nter"a#e. Sears mana'ers #an now montor the &re#se m&a#to" advertsn'%weather% and other "a#tors on sa!es o" s&e#"# tems. Thsmeans that *uers and other s&e#a!sts #an e-amne andadust " needed% nventor 2uanttes% mer#handsn'% andorder &!a#ement% a!on' wth mrad other vara*!es% a!mostmmedate!% so the #an res&ond 2u#(! to envronmenta!#han'es. S5RS users #an a!so 'rou& to'ether wde! dver'ent(nds o" &rodu#ts% "or e-am&!e% tra#(n' sa!es o" tems mar(ed as 7'"ts under <.8 Advertsn' sta""ers #an"o!!ow so0#a!!ed 7'reat tems%8 drawn "rom vast! d""erentde&artments% that are s&!ashed on the #overs o" &romotona!#r#u!ars. S5RS ena*!es e-tensve data mnn'% *ut

on! on s(u and !o#aton re!ated ana!ss.In 1?? Sears #reated a !ar'e #ustomer data*ase% du**edCI +evera'n' Customer In"ormaton, wh#h #ontaned#ustomer0re!ated sa!e n"ormaton +wh#h was not ava!a*!eon S5RS,. The CI ena*!e hour! re#ords o" transa#tons%"or e-am&!e% 'udn' hour! &romoton +su#h as1J ds#ounts "or ear! *rds,.In the ho!da season o" <==1 Sears de#ded to re&!a#ets re'u!ar 1=J ds#ount &romoton * o""ern' dee& ds#ountdurn' ear! sho&&n' hours. Ths new &romoton%wh#h was *ased on S5RS "a!ed% and on! when CI was

used the &ro*!em was #orre#ted. Ths motvated Sears to#om*ne CI and S5RS n a sn'!e &!at"orm% wh#h ena*!esso&hst#ated ana!ss +n <==<,.

Page 7: 11.6 - 11.7 - case

7/25/2019 11.6 - 11.7 - case

http://slidepdf.com/reader/full/116-117-case 7/8

B <==1 Sears a!so had the "o!!own' /e* ntatvese0#ommer#e home m&rovement #enter% a B<B su&&!e-#han'e "or the reta! ndustr% a to #ata!o' +wsh*oo(.#om,% an e0&ro#urement sstem% and mu#h more. A!! o" these /e*0mar(etn' ntatves "eed data nto the datawarehouse% and ther &!annn' and #ontro! are *ased on

a##essn' the data n the data warehouse.The Resu!ts. The a*!t to montor sa!es * tem &er store ena*!es Sears to #reate a shar& !o#a! mar(et "o#us. 9or e-am&!e% Sears (ee&s d""erent shades o" &ant #o!ors n d""erent#tes to meet !o#a! demands. There"ore% sa!es andmar(et share have m&roved. A!so% /e*0*ased data montorn'o" sa!es at CI he!&s Sears to &!an mar(etn' and/e* advertsn'.At ts n#e&ton% the data warehouse had *een usedda! * over >%=== *uers% re&!enshers% mar(eters%strate'# &!anners% !o'st#s and "nan#e ana!sts% and store

mana'ers. B <==>% there were over === users% sn#eusers "ound the sstem ver *ene"#a!. Res&onse tme to2ueres has dro&&ed "rom das to mnutes "or t&#a! re2uests.Overa!!% the strate'# m&a#t o" the S5RS0C datawarehouse s that t o""ers Sears em&!oees a too! "or ma(n' *etter de#sons% and Sears reta!n' &ro"ts have#!m*ed more than <= &er#ent annua!! sn#e S5RS wasm&!emented.Sour#es Com&!ed "rom Amato0M#Co +<==<,% Bet!er and ear+1??,; and &ress re!eases o" Sears +<==1<==>,.Luestons "or Mn#ase 11. /hat were the drvers o" S5RSH<. $ow dd the data wareshouse so!ve Sear)s &ro*!emsH>. /h was t *ene"#a! to nte'rate the #ustomers) data*asewth S5RSH

Mn#ase <GIS at Da!!as Area Ra&d Transt5u*!# trans&ortaton n Da!!as and ts ne'h*orn' #ommuntess &rovded * Da!!as Area Ra&d Transt +DART,% wh#ho&erates *uses% vans% and a tran sstem. The serv#e area has

'rown ver "ast. B the md01?=s% the a'en# was no !on'er a*!e to res&ond &ro&er! to #ustomer re2uests% ma(e ra&d#han'es n s#hedu!n'% &!an &ro&er!% or mana'e se#urt.The so!uton to these &ro*!ems was ds#overed usn'GISs. A GIS d't3es ma&s and ma&!(e n"ormaton% nte'ratest wth other data*ase n"ormaton% and uses the#om*ned n"ormaton "or &!annn'% &ro*!em so!vn'% andde#son ma(n'. DART +dart.or', mantans a #entra!3ed'ra&h#a! data*ase o" ever o*e#t "or wh#h t s res&ons*!e.The GIS &resentaton ma(es t &oss*!e "or DART)smana'ers% #onsu!tants% and #ustomers to vew and ana!3e

data on d't3ed ma&s. 5revous!% DART #reated serv#ema&s on &a&er shown' *us routes and s#hedu!es.The ma&s were u&dated and redstr*uted severa! tmes

Page 8: 11.6 - 11.7 - case

7/25/2019 11.6 - 11.7 - case

http://slidepdf.com/reader/full/116-117-case 8/8

a ear% at a h'h #ost. /or(n' wth &a&er ma&s made td""#u!t to res&ond 2u#(! and a##urate! to the near!6%=== #ustomer n2ures ea#h da. 9or e-am&!e% to answer a 2ueston #on#ernn' one o" the more than <== *usroutes or a s&e#"# s#hedu!e% t was o"ten ne#essar to !oo( at severa! ma&s and routes. 5!annn' a #han'e was a!so a

tme0#onsumn' tas(. Ana!ss o" the va*!t o" *us routea!ternatves made t ne#essar to &hoto#o& ma&s "romma& *oo(s% over!a ta&e to show &ro&osed routes% ands&end #onsdera*!e tme 'athern' n"ormaton on thedemo'ra&h#s o" the #orrdors surroundn' the &ro&osedroutes.The GIS n#!udes attra#tve and a##urate ma&s that nter"a#ewth a data*ase #ontann' n"ormaton a*out *uss#hedu!es% routes% *us sto&s +n e-#ess o" 1%===,% tra""#surves% demo'ra&h#s% and addresses on ea#h street n thedata*ase. The sstem a!!ows DART em&!oees to

@ Res&ond ra&d! to #ustomer n2ures +redu#n' res&onsetme * at !east >> &er#ent,.@ 5er"orm the envronmenta! m&a#t studes re2ured *the #t.@ Tra#( where the *uses are at an tme usn' a '!o*a!

 &ostonn' sstem.@ Im&rove se#urt on *uses.@ Montor su*#ontra#tors 2u#(! and a##urate!.@ Ana!3e the &rodu#tvt and use o" e-stn' routes.9or nstan#e% a #ustomer wants to (now the #!osest *ussto& and the s#hedu!e o" a #ertan *us to ta(e her to a #ertandestnaton. The GIS automat#a!! 'enerates the answer when the #a!!er sas where she s * 'vn' an address%a name o" an nterse#ton% or a !andmar(. The #om&uter #an#a!#u!ate the trave! tme to the desred destnaton as we!!.Ana!ses that &revous! too( das to #om&!ete are nowe-e#uted n !ess than an hour. S&e#a! ma&s% wh#h &revous!too( u& to a wee( to &rodu#e at a #ost o" 1>%=== to1%=== ea#h% are &rodu#ed n mnutes at the #ost o" > "eeto" &!otter &a&er.In the !ate 1??=s% the GIS was #om*ned wth a G5S.

The G5S tra#(s the !o#aton o" the *uses and #om&utes thee-&e#ted arrva! tme at ea#h *us sto&. Man ma&s are onds&!a at the /e* ste% n#!udn' trans&ortaton !nes andsto&s su&erm&osed on ma&s.Sour#es Condensed "rom GIS /or!d% u! 1??>; u&dated wth n"ormaton#om&!ed "rom dart.or' +<==>,.Luestons "or Mn#ase <1. Des#r*e the ro!e o" data n the DART sstem.<. /hat are the advanta'es o" #om&uter3ed ma&sH>. Comment on the "o!!own' statement 7sn' GIS% users#an m&rove not on! the n&uttn' o" data *ut a!so ther 

use.8F. S&e#u!ate on the t&e o" n"ormaton &rovded * theG5S.