MicroStrategy Solutions for Retail

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Business Intelligence Solutions for Retail

MOBILE INTELLIGENCE


Leader in Business Intelligence for Over 20 Years

Business Intelligence (BI) The process of transforming raw data into meaningful information to enable more effective business insight and decision-making

MicroStrategy, Incorporated (NASDAQ: MSTR) • Founded in 1989 • Leading independent business intelligence software vendor • Over 1 million business users at over 3,000 organizations • Direct operations in 42 cities in 23 countries around the world • Over 50 patents pending or issued

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Leader in Retail Business Intelligence

8 of the Top 10 Global Retailers Use MicroStrategy MicroStrategy Supports Over 300 Retail Companies Around the World

• Aéropostale

• Limited Brands

• Ahold

• Liz Claiborne

• Applebee’s International Inc.

• Lowe’s Companies

• Border’s Group, Inc.

• Michaels Stores

• Burlington Coat Factory

• Micro Electronics, Inc.

• Cabela’s

• Netflix

• Carrefour

• O’Reilly Automotive

• Charming Shoppes

• Overstock.com

• The Container Store

• Pacific Sunwear

• C VS Caremark

• Petco Animal Supplies

• Darden Restaurants

• Priceline

• David’s Bridal

• Shoppers Drug Mart

• Dick’s Sporting Goods

• Skechers USA

• eBay

• Starbucks Corporation

• GUESS?, Inc.

• Sterling Jewelers

• Hallmark Cards

• Victoria’s Secret, Inc.

• Hard Rock Café

• Whole Foods Market

• Harris Teeter

• Yahoo!

• Hudson’s Bay Company

Recreated PMS

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Retail Customer Success Stories

Driving Customer Analytics and Vendor Management at a Global Supermarket Chain Netherlands-based Ahold uses MicroStrategy to conduct sales and customer

GUESS employees receive business-critical information via BlackBerry devices

analyses at its Albert Heijn supermarkets and other Ahold holdings in Europe

and access dynamic dashboards to track customer buying patterns, enabling

and the United States. Approximately 3,000 employees at Albert Heijn use

them to respond quickly and identify new opportunities for business growth.

MicroStrategy to analyze more than 18 terabytes of data, running 150,000

Today, instead of receiving cumbersome Excel spreadsheets, the sales force

reports each week. Albert Heijn also provides an extranet for suppliers to

is able to open up a PDF document on their BlackBerry devices, get a quick

run daily sales analyses, and its customers can shop online and review their

operational snapshot of the business, and make immediate decisions that

purchase history for the previous three months.

impact sales and revenue growth.

Providing Insight Into Customers and Store Operations Across the Company

Gaining Customer Insight to Promote High Customer Satisfaction

MicroStrategy’s integrated business intelligence platform supports a wide

Netflix uses MicroStrategy for reporting and analysis of financial data and

range of reporting and analysis applications for Hallmark, providing insights

marketing campaigns. With MicroStrategy, Netflix users gain valuable insight

into business performance across the company. Retail and sales productivity

into critical data to enhance its marketing programs and better serve its

applications provide company-wide insight into product performance across

subscriber base of more than 20 million members.

various channels, product groups, and business units. MicroStrategy-based applications also analyze the effectiveness of consumer marketing campaigns, and consumer market basket and cross-buying behavior.

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Gaining Valuable Insight Into Retail Sales Trends and Performance Using Mobile Technology


Retail Customer Success Stories

Improving Merchandising, Customer Analytics, and Vendor Management for a Global Retailer

Using the Full Power of MicroStrategy for Merchandising, Operations, Customer Analysis, and Vendor Management

Over 10,000 users across METRO Group perform reporting and analysis

Lowe’s currently has a number of MicroStrategy-based BI applications that

against a 70 TB data warehouse. MicroStrategy supports numerous business

support thousands of employees across a variety of business functions.

intelligence applications, encompassing merchandising, marketing, market

Lowe’s employees use the data to manage inventory, improve margins, review

basket analysis, category management, reporting and strategic business

market specificity, and identify sales opportunities. Lowe’s also uses BI to track

planning, and advertising effectiveness studies. METRO Group leverages

millions of store items against billions of transaction records to assist in the

MicroStrategy within an extranet to perform in-depth operations, sales,

management of stock levels at its stores. In addition, Lowe’s uses BI to help its

product, and supply chain analyses.

suppliers and vendors monitor the performance of their products.

ROSS Stores, Inc.

Multiple BI Applications for Insightful Operational Reports and Dashboards

Analyzing Sales and Operational Data, Improving Connections to Suppliers

Ross Stores, Inc. is recognized in the Enterprise Deployment category. Across its

Whole Foods Market is using MicroStrategy to analyze sales and operational

enterprise, Ross Stores has deployed eight large-scale MicroStrategy applications,

data across its 275 stores in North America and the United Kingdom.

primarily focused on Merchandising, Store Operations, Store Score Carding,

MicroStrategy is being utilized by BI users throughout the organization for

Loss Prevention, and Supply Chain Efficiencies. In addition, Ross Stores relies

detailed insights into product sales. In addition, Whole Foods Market has

on the MicroStrategy platform to provide labor management reporting. Ross

enabled its suppliers and vendors to view sales data for their specific product

Stores, Inc., a Fortune 500 and NASDAQ 100 (ROST) company headquartered in

lines through a MicroStrategy-based application.

Pleasanton, California, is the nation’s second largest off-price retailer with more than 1,000 stores in 27 states and fiscal 2008 revenues of $6.5 billion.

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Solutions for Retail

Merchandising Eliminate Stockouts and Overstocks Anywhere, Anytime Retailers face immense pressure to balance inventory levels with in-stock positions while maintaining assortments that are relevant and fresh. Buyers and merchandise managers need to be constantly on-thego either in team meetings, traveling overseas for a buying trip, or working hand-in-hand with vendors. Whether at their desk or on-the-go, this job requires mobility and constant connectivity to respond to consumer demand, seasonal trends, and fashion styles, all to ensure that customers get the right products. The Merchandise Analysis app is designed to improve inventory decisions. Users can quickly accelerate shipments by evaluating top-selling products, make markdown decisions based on seasonal sell-through, cancel shipments for bottom-selling products, and communicate more effectively with vendors. Significantly reduce costs, eliminate the expense of stock-outs and overstocks, and make powerful, rapid decisions from the palm of your hand!

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Solutions for Retail

Store Operations Keep Store Managers on the Selling Floor, Not Behind a Desk. Give Them the Right Information at the Right Time to Make the Right Decisions.

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Store managers are more effective when they are out on the selling floor, not in a back office. The old paradigm of paper reporting or even web/desktop is now becoming obsolete. Mobility empowers field managers in stores to make near real-time decisions regarding inventory, promotions, pricing, staffing, and store design. Mobile store operations reporting keeps the store managers where they should be: in the store, on the selling floor. Store managers can see, at regular intervals throughout the day, how their sales are performing compared to last

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year, giving them the information and tools to improve performance. Store traffic information delivers detail on a store’s performance: Units per Transaction, Average Transactions (Units and $), Conversion Rates, and Sales per Payroll Hour are all provided in the mobile BI app. Relevant, filtered information delivered when and where it is needed helps store personnel identify anomalies in their operations and drive immediate action in the areas of labor scheduling, customer service, merchandise display, promotional signage, potential stock shortfalls caused by local market conditions, and more. 7


Solutions for Retail

Customer Analytics Understand Your Most Valuable Customers. Target Them to Maximize Profits and Loyalty

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World-class retailers are increasingly focused on understanding and leveraging all customer touch points, from granular in-store transactional data to online store and web search information to mobile data, in order to most effectively target customers to maximize profits and customer loyalty. Providing state-of-the-art customer analytics, MicroStrategy enables retailers to integrate and analyze the ever-expanding universe of data to obtain valuable insights about customer behavior, buying patterns, and consumer preferences. What Can You Do With Customer Analytics? Discover who your customers are. Identify their unique characteristics, and know what products they purchase and why. Track the impact of promotions on customer baskets as they move through your

segments – highly-refined groups of customers based

experience. Enable business users in marketing and

stores and provide a holistic view of all of their

on user-defined characteristics.

merchandising to seamlessly integrate insight with

behaviors. Tap into their transactional data to connect

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the dots between customers, stores, products, and

Once you understand your customer at this level,

promotions. Move beyond basic segmentation,

you can align effective tactics to tailored customer

personas, and list pulls to create targeted micro-

segments to surround them with a holistic shopping

promotion planning, weekly flyers, planograms, store assortments, and more. Boost offer performance. Drive larger baskets. Increase sales, customer profitability, and customer loyalty.


Solutions for Retail

Vendor Management Analyze Vendor Performance, Drive Improvement, and Strengthen Negotiations. Improve Performance Across the Supply Chain

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MicroStrategy is committed to helping retailers realize value across the entire product supply chain. Managing vendors in today’s environment requires you to know what is happening in the supply chain real-time, enabling you to make rapid decisions to optimize performance and to strengthen your negotiations on price and quality. A comprehensive Vendor Scorecard gives you the right information to take the right action at the right time. A Vendor Portal provides a platform for collaborating with vendors, enabling timely, valuable business insight, driving efficiencies in cost containment and improving sales performance. All controlled by you. Revitalize your approach to vendor intelligence with MicroStrategy’s Retail Vendor Portal Solution. Jointly improve performance by providing a common view of the following: • How are my products / categories performing? • Where do I have issues with product sales, returns, or excess inventory? • How am I performing operationally in delivering product?

• What is the true profit contribution of each product? • What are the results of my promotion efforts? • How can I be more effective with the use of

• How are my products forecasted to sell? How many products to produce? • What is the profit contribution of private label products?

promotional funds?

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The MicroStrategy Difference

The MicroStrategy Platform is Uniquely Suited to Meet the Complex and Varied Needs of the Retail Industry MicroStrategy Retail Solution Map Customer Solutions Market Basket Analysis

Loyalty Management

Promotional / Ad Effectiveness

Call Center Management

Lifetime Value Analysis

Cross Channel Marketing

Campaign Management

Customer / Market Insights

Channel / Store Solutions Loss Prevention / Fraud Detection

Store Operations Reporting

Store Performance

Execution Solutions Warehouse Mgmt

Dock & Yard Mgmt

Transport Supply Chain Mgmt Visibility Effectiveness

Vendor Portal Extranet

Distribution Order Management

Planning Solutions Network Design & Analysis

RFID / EIS

Vendor / Buyer Solutions Vendor Performance

Workforce Optimization

e-Commerce Portal

Import / Export Compliance

Supplier Relationship

Trade Promotions

Demand Management

Assortment Planning

Merchandise Financial Plans

Shelf and Space Planning

Revenue Price Optimization

Promotion Management

Product Lifecycle Management

Mfg Planning & Scheduling

Category Management

Inventory & Replenishment

Allocation Management

Corporate Solutions GAAP Financial Reporting

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Corporate Performance Management

Enterprise Risk Management

PR / Investor Relations

Regulatory / Compliance

HR / IT

Real Estate Planning

Accounting


Why Do Tier One Retailers Turn to MicroStrategy?

Turn large amounts of complex data into a single version of the truth...

on the fastest, most robust BI platform...

to complete any type of analysis...

when and where you need it.

SAP BW

Microsoft Analysis Services

Multi-Dimensional Databases

Oracle Essbase

Non-stop Operations

Web

Alerts & Monitoring

Mobile

Dashboards In-memory Performance

Channel Overview

Welcome Joyce L. Fowler Summary as of April 1, 2010 Consolidated Balance: Next Payment Due: Due Date:

$ 6,798.11 $ 1,699.53 April 15, 2010

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450,000,000 Traditional Full Price Stores

Series: Repeat Visits Category: 20092 Value: 348,604,353

400,000,000 350,000,000

Pay Bill Series: Web Category: Revenue Value: 186,810M

See card details 1 card close to limit

300,000,000

Total Visits

250,000,000

Under-driven Purchases

200,000,000

Offer-driven Purchases Top Buyers

150,000,000

Request Visits

100,000,000

Web

Large Charges

Off-Price Stores

7 charges in this period

50,000,000 0

Catalog

Spend by expense category

Rewards Information

100,000,000,000

Location Income

Current Conversion %

Other Conversion %

<15k

3.92%

54.34%

15k-25k

3.92%

54.32%

25k-50k

3.93%

54.25%

50k+

3.79%

47.79%

<15k

3.00%

39.69%

15k-25k

3.09%

39.67%

25k-50k

3.00%

39.67%

50k+

2.99%

36.45%

80,000,000,000

Other Trend

Rural

Trend and per-Channel Ranking

50+

60,000,000,000

City

Special offers just for you

35-50 25-35

40,000,000,000

16-25

20,000,000,000

Current, Last, Last Year’s Quarter

0 <15k

DataMarts

Relational Databases

Data Warehouses

Reporting

15k-25k

25k-50k

50k+

Desktop

Highest Scalability

January 6, 2006 Page 1 of 2

Analysis

Printers 6/15/2009

Spreadsheets, Text Files

Operational Databases

Salesforce.com

Complete Security Predictive Analytics

Fax

All Data Sources

Industrial Strength

All Styles of BI

All Interfaces

Accessing All Enterprise Data

High Performance Delivered Even at the Highest Scale

Evolving Requirements Fully Supported Out-of-the-Box

Information Delivered Where and When Users Need It 11


The Platform for Retail Business Intelligence

networking, security, data management, and sensor integration is already built-in.

MicroStrategy’s Extensive Platform Experience Conveys Directly to Mobile BI

NO CODE REQUIRED – Customize the look, feel, and behavior of your app using an array of finely-designed, iPhone-optimized

The MicroStrategy platform is built on one unified, organically-

displays and controls. MicroStrategy’s intuitive point-and-click interface makes configuration easy.

developed architecture. This platform provides a number of critical

MicroStrategy Mobile Business Intelligence FASTER TO DEVELOP – Quickly design apps that offer a superior user experience, knowing that infrastructure code such as

EASIER TO MAINTAIN – Accelerate deployment of new apps and stream app updates with the MicroStrategy Mobile application

capabilities to ensure that it is truly enterprise-class: Rapid Development and Deployment using WYSIWYG point-

platform, so users always have easy access to the latest, most up-to-date information.

and-click design in the MicroStrategy integrated development environment. Desktop / Laptop

Mobile

High Scale and High Performance across user scale, data scale,

email

and application scale on the fastest, highest performing business intelligence server.

x

x

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Economies of Scale as the system grows with the minimum

x

number of IT personnel and the fewest servers. Windows

Office

Portals

Browser

iPhone

iPad

BlackBerry

‘Write once, run anywhere’ Flexibility from a single serviceorientated architecture to satisfy multiple devices and clients without additional integration or device-specific translation. Full Spectrum of

Full Spectrum of

Developer Tools Web Professional Desktop Designer

Admin Tools MicroStrategy

MicroStrategy

Web

Mobile

Command Manager

MicroStrategy Intelligence Server

Architect

Object Manager

SDK

Integrity Manager Cube Databases

Transactional Applications

extensive library of APIs. Secure Data Access Model designed to provide robust data

MicroStrategy Transaction Services

Databases

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Enterprise Manager

Openness and Extensibility via MicroStrategy’s SDK and

Website Content

protection using a full range of technologies and security models. Comprehensive Administrative Control consistent with mission-critical system operation. Unmatched Analytical Power against entire data warehouses using data mining, predictive, statistical, financial, and mathematical analyses.


Mobile Intelligence for the iPhone®, iPad®, and BlackBerry

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Native App Experience

Enterprise Grade

Fast to Develop

Purpose-built, workflow-driven apps that quickly and

Designed to deliver the higher levels of performance

Fast, code-free app development via MicroStrategy’s

easily guide users through their data to discovery,

and scalability demanded by mobile apps.

metadata-driven, point-and-click paradigm. Build rich,

analysis, or decision. Apps fully leverage mobile device

MicroStrategy delivers in-memory, multi-level caching,

interactive BI apps in just days. Speed deployment

capabilities, including the multi-touch interface,

ROLAP analytics, robust security, easy extensibility,

by building once and deploying across platform to

sensors (GPS or camera), communications (voice,

and comprehensive administration features designed

iPhone, iPad, BlackBerry, browsers, Microsoft Office,

email, text), and more.

for enterprise deployments.

or portals.

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Visualize Patterns and Trends in Your Data An Extensive Library of Graphs Time Series Visualizations

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Bubble Chart

BoxPlot

Bar and Line Chart

Area and Line Chart

3D Bar Graph

Histogram

Gantt Chart

Line Chart

Radar Chart

Waterfall Chart


Capabilities Finally Made Possible with Mobile Technology Camera

Maps

Use what you can see around you

Visualize location-specific data, trends, and analyses

Snap product barcodes and use as inputs to focus your analysis

Capture and store ‘GPS tagged’ pictures of shelf sets which complement your analysis

Plot your data onto maps for stores, districts, zones, or regions. Use thresholds to color pins, and select pins to explore the information

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Act on Information

MicroStrategy Transaction Services™ From Insight to Action. Monitoring your organization’s performance in the palm of your hand is a powerful business capability. Interacting with that information to approve requests, submit orders, change plans, and capture information at the moment of insight takes that power to a new level. MicroStrategy Transaction Services lets people act on business information from a mobile device such as the iPad® and iPhone®, as well as from a dashboard on any web browser.

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Empower Your Staff to Take Action on the Move

Move Forward. Request Management in Real Time.

1:55 PM

iPad

Review all business items requiring your action

100%

Approve requests based on information presented

Deny requests at the tap of a button

Reassess ongoing requests by asking the requestor for more information

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Partners in Retail Solutions

Strong Partnerships with Over 200 World-Class Providers System Integrators

Found from website Modify PMS

The business intelligence experts.

Applications

Database / Technology

PMS 200 Red PMS 424 Gray

The Data Virtualization Gold Standard

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What MicroStrategy Customers are Saying: The Buzz

Focus on Customers MicroStrategy allows us to understand how recent product innovations, such as our ‘Cards with Sound’ line are performing in the marketplace. The scalability and usability of MicroStrategy enables us to distribute performance information throughout the organization so our business users can focus on our mission of delivering products and services that enrich people’s lives. - Hallmark

Give Customers a New Kind of Shopping Experience With RFID and vital business intelligence data from MicroStrategy, we can run our operations more efficiently and give our customers a completely new kind of shopping experience. - METRO Group

A Huge Opportunity

Realize Significant Benefits As a result of using the MicroStrategy platform, Lowe’s is realizing significant benefits through improved merchandising decisions, more timely responses to information requests, cost reduction initiatives, enhanced employee productivity, and better service to our customers. - Lowe’s Companies

Gain a Competitive Edge With our daily merchandise reports, we gain a competitive edge over other retailers who wait for weekly or month-end reports. MicroStrategy gives our buyers and executives an up-to-date picture of our business and enables us to better understand what we sell, when we sell it and where we sell it, which ultimately influences our high levels of customer service. Our buyers count on this information to make knowledgeable decisions about when to add or retire products, which has a positive impact on our bottom line. - The Container Store

Deploying dynamic dashboards to our traditional and non-traditional users of Business Intelligence was a huge opportunity for us to contribute to our revenues and global sales growth, and it wasn’t that hard to do. - Guess?, Inc

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Join our LinkedIn Group: linkd.in/MicroStrategy Follow us on Twitter: twitter.com/microstrategy Like us on Facebook: facebook.com/microstrategy Copyright Information All Contents Copyright © 2011 MicroStrategy Incorporated. All Rights Reserved. Trademark Information MicroStrategy, MicroStrategy 6, MicroStrategy 7, MicroStrategy 7i, MicroStrategy 7i Evaluation Edition, MicroStrategy 7i Olap Services, MicroStrategy 8, MicroStrategy 9, MicroStrategy Distribution Services, MicroStrategy MultiSource Option, MicroStrategy Command Manager, MicroStrategy Enterprise Manager, MicroStrategy Object Manager, MicroStrategy Reporting Suite, MicroStrategy Power User, MicroStrategy Analyst, MicroStrategy Consumer, MicroStrategy Email Delivery, MicroStrategy BI Author, MicroStrategy BI Modeler, MicroStrategy Evaluation Edition, MicroStrategy Administrator, MicroStrategy Agent, MicroStrategy Architect, MicroStrategy BI Developer Kit, MicroStrategy Broadcast Server, MicroStrategy Broadcaster, MicroStrategy Broadcaster Server, MicroStrategy Business Intelligence Platform, MicroStrategy Consulting, MicroStrategy CRM Applications, MicroStrategy Customer Analyzer, MicroStrategy Desktop, MicroStrategy Desktop Analyst, MicroStrategy Desktop Designer, MicroStrategy eCRM 7, MicroStrategy Education, MicroStrategy eTrainer, MicroStrategy Executive, MicroStrategy Infocenter, MicroStrategy Intelligence Server, MicroStrategy Intelligence Server Universal Edition, MicroStrategy MDX Adapter, MicroStrategy Narrowcast Server, MicroStrategy Objects, MicroStrategy OLAP Provider, MicroStrategy SDK, MicroStrategy Support, MicroStrategy Telecaster, MicroStrategy Transactor, MicroStrategy Web, MicroStrategy Web Business Analyzer, MicroStrategy World, Application Development and Sophisticated Analysis, Best In Business Intelligence, Centralized Application Management, Information Like Water, Intelligence Through Every Phone, Intelligence To Every Decision Maker, Intelligent E-Business, Personalized Intelligence Portal, Query Tone, Rapid Application Development, MicroStrategy Intelligent Cubes, The Foundation For Intelligent E-Business, The Integrated Business Intelligence Platform Built For The Enterprise, The Platform For Intelligent E-Business, The Scalable Business Intelligence Platform Built For The Internet, Industrial-Strength Business Intelligence, Office Intelligence, MicroStrategy Office, MicroStrategy Report Services, MicroStrategy Web MMT, MicroStrategy Web Services, Pixel Perfect, Pixel-Perfect, MicroStrategy Mobile, MicroStrategy Integrity Manager and MicroStrategy Data Mining Services are all registered trademarks or trademarks of MicroStrategy Incorporated. All other company and product names may be trademarks of the respective companies with which they are associated. Specifications subject to change without notice. MicroStrategy is not responsible for errors or omissions. MicroStrategy makes no warranties or commitments concerning the availability of future products or versions that may be planned or under development. Patent Information This product is patented. One or more of the following patents may apply to the product sold herein: U.S. Patent Nos. 6,154,766, 6,173,310, 6,260,050, 6,263,051, 6,269,393, 6,279,033, 6,567,796, 6,587,547, 6,606,596, 6,658,093, 6,658,432, 6,662,195, 6,671,715, 6,691,100, 6,694,316, 6,697,808, 6,704,723, 6,741,980, 6,765,997, 6,768,788, 6,772,137, 6,788,768, 6,798,867, 6,801,910, 6,820,073, 6,829,334, 6,836,537, 6,850,603, 6,859,798, 6,873,693, 6,885,734, 6,940,953, 6,964,012, 6,977,992, 6,996,568, 6,996,569, 7,003,512, 7,010,518, 7,016,480, 7,020,251, 7,039,165, 7,082,422, 7,113,993, 7,127,403, 7,174,349, 7,181,417, 7,194,457, 7,197,461, 7,228,303, 7,260,577, 7,266,181, 7,272,212, 7,302,639, 7,324,942, 7,330,847, 7,340,040, 7,356,758, 7,356,840, 7,415,438, 7,428,302, 7,430,562, 7,440,898, 7,486,780, 7,509,671, 7,516,181, 7,559,048, 7,574,376, 7,617,201, 7,725,811, 7,801,967, 7,836,178, 7,861,161, 7,861,253 and 7,881,443. Other patent applications are pending.

MicroStrategy Incorporated • 1850 Towers Crescent Plaza Copyright ©2011. All rights reserved.

Vienna, VA 22182

1.888.537.8135

www.microstrategy.com

COLL-0984 0311

MOBILE INTELLIGENCE


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