As Productivity Fears Grow, Retailers Turn to Enterprise-Wide Business Intelligence

Enterprise-Wide BI Has Emerged as One of the Top Priorities Within the Next 24 Months


BOSTON, MA--(Marketwire - December 9, 2008) - Aberdeen, a Harte-Hanks Company (NYSE: HHS), recently released published a new research report entitled, "Increasing Retail Productivity: Enterprise-Wide Business Intelligence" which outlined the findings of 150 retail enterprises that were surveyed between October - November 2008 to determine the opportunities and pitfalls of an enterprise-wide BI or transactional intelligence strategy in retail. The research indicates that while retailers are currently using BI in silo formats within customer management, merchandising, and store operations, the roadmap for BI is gradually leading towards enterprise-wide adoption. Of the BI functional areas in retail, enterprise-wide BI has emerged as a top two priority in terms of planned deployment within the next 24 months. To obtain a complimentary copy of the report, please visit: http://www.aberdeen.com/link/sponsor.asp?cid=5366.

Aberdeen's 2007 BI survey results showed that 56% of Best-in-Class retailers' top BI-related strategy was to identify customer segment buying trends and patterns. While customer segmentation remains a priority of retailers, this year our results demonstrate a move towards the "bigger picture applicability of BI" from an enterprise-wide perspective.

"Leading retailers such as Wal-Mart, Staples, and Best Buy have already adopted an enterprise-wide BI strategy," states Sahir Anand, senior analyst and chief author of the business intelligence in retail benchmark report. "The reasons for this 'silo to big picture' shift in the BI roadmap are due to the following internal and external factors characterizing the nature of retail operations for the rest of 2008, 2009, and beyond. High cost of goods sold and low consumer confidence is currently impacting 80% of retailers surveyed. This has led to the need for incisive category, department, and channel-level business information that can act as a catalyst for improved integrated retail planning, productivity, and performance for the corporate network, stores, and other sales channels."

Seventy-four percent (74%) of Best-in-Class retailers are currently creating enterprise-wide BI guidelines when compared to 50% of all other retailers. According to co-author and principal analyst David Hatch, "On the surface, creating customer- and operations-related guidelines on an enterprise-wide basis seems like an academic and rudimentary exercise. However, in actuality it takes several years for all the user organizations in retail to perfect a common charter of guidelines and practices to harmonize the BI foundational elements of forecasting, planning, and budgeting for varied retail departments such as marketing, merchandising, finance, procurement, or supply chain. The ability to deliver true enterprise-wide access to BI will inevitably require best-in-class retailers to obtain a full range of capabilities, from data collection, integration, cleansing, data warehousing, modeling and application development, to reporting, dashboards, scorecarding and ad hoc analytics." Only 35% of Best-in-Class retailers report having "end-to-end" BI platforms encompassing these tools and capabilities today. Aberdeen research indicates that this is in line with Average levels of BI platform adoption across all industries. Through the research contained in this report, Best-in-Class companies should be able to identify the components that are currently lacking.

A complimentary copy of this report is made available due in part by the following underwriters: Microsoft and Tectura. To obtain a complimentary copy of the report, please visit: http://www.aberdeen.com/link/sponsor.asp?cid=5366.

For additional access to complimentary Retail Research, please visit http://research.aberdeen.com/index.php/-retail.

About Aberdeen Group, a Harte-Hanks Company

Aberdeen is a leading provider of fact-based research and market intelligence that delivers demonstrable results. Having benchmarked more than 30,000 companies in the past two years, Aberdeen is uniquely positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen™ for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen http://www.aberdeen.com or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com.

© 2008 Aberdeen Group, Inc., a Harte-Hanks Company
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Contact Information: Media Contact: Sahir Anand Senior Retail Analyst Aberdeen Harte-Hanks Sahir.Anand@aberdeen.com David Hatch Principal BI Analyst Aberdeen Harte-Hanks David.Hatch@aberdeen.com

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