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Winner
Automated Market Research
ACNeilsen ORG-MARG Pvt. Ltd has automated its Retail Market
Research Services using mobile technology, a central database and the Advisor
i-sights Business Intelligence tool.
ACNeilsens
Retail Measurement Services (RMS) division has achieved net savings in annual
operating costs on paper and courier charges of Rs. 27 million after automating
its Retail Market Research Services by using mobile technology, a central database
and an Advisor i-sights Business Intelligence tool. Today RMS business unit
is in a position to justify the report subscription price hike of around 15
percent to their clients because of the benefits offered in terms of reduction
in report delivery time and improvement in data quality.
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We discovered that older systems are less resource hungry
than newer ones. The new features available in products today utilise
processing power, reduce speed and occupy hard disc space even when not
in use
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The RMS division is in the business of conducting Retail Store Audit for FMCG
products. This retail audit process covers over 1,00,000 Stock Keeping Units
(SKUs) spanning across nearly 15 audits such as FMCG, Cold Drinks, Durable Goods,
Pharma Products and 100 plus product categories. The audit is conducted by more
than 700 permanent field staff that operates from over 150 locations and covers
over 65,000 dealers or retail outlets scattered across 450 towns and 1,500 villages.
Looking at the enormity of the scale and reach of business, one can imagine
the volume of paper work, effort and cost involved in data entry on a daily
basis. Moreover there was a very high chance of inaccuracy in data reporting
due to lack of data validation, delayed printing of ledgers and loss of documents
when sent through courier service. Bhushan Akerkar, Executive Director-IST,
ACNeilsen ORG-MARG Pvt. Ltd. adds, ACNeilsen ORG-MARGs old data
processing system was on COBOL with which we had issues related to efficiency,
flexibility and consolidation. Most client reports were being manually prepared
in Excel. And the major issue was to justify the authentication of the information
in the audit to the clients, which was not always fool-proof due to limited
ways of verification.
Key Winning Points
- Quick implementation
with an impressive ROI plan.
- Apt technology deployment that matches
the companys business objectives.
- The core application was developed in-house.
Tips
- To maintain compatibility between the
application and networked products in the system is an ongoing challenge,
more so because of the fact that mobile technology evolves rapidly even
in comparison to other technology. Moroever, providing reliability and
scalability with a home-grown application remains challenging.
- Oracle on Unix would have been a better
choice than Oracle on Windows for better scalability, stability and
security.
Views
of Jury member, Satish Naralkar,
MD & CEO, NSE.IT
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| Device |
750 HP iPAQ Pocket PC 2110 |
| PDA accessories |
Billionton CF 10Base Ethernet, Billionton
CF 56K Fax Modem, Lexar 256 MB SD memory card. |
| Software |
Audit Data Collection software developed
in-house using Embedded VC++. The database stored in an encrypted Binary
format in Oracle 8.7.1 |
| Server hardware |
RF (Retail Factory - Main data processing
system) Server, Server for HHT & RF bridging, FTP services.
HP570 ML, IBM x205, IBM x260 series running on Window 2000/2003. |
| Connectivity |
2 Mbps Internet bandwidth at the data
processing centre, Nokia IP 330 with Check Point firewall. |
| BI tool |
Advisor i-sights BI tool developed in
VC++ and uses a proprietary back-end database. It also supports any relational
database. |
To keep pace with the growing business it had become a necessity for the RMS
division to reduce audit cycle time, increase data accuracy and quality, increase
client satisfaction and reduce survey and operation cost. Akerkar says, We
took more than a year to finalise on the suitable PDA distributor, quoting a
feasible price, a flexible operating system and good technical support. Finally,
we picked 750 devices of HP iPAQ Pocket PC 2110, a central database and developed
shrink wrapped BI tool, Advisor i-sights that empowers clients in generating
their own customised reports of the data generated by the company.
Resolving challenge
Today the solution blends mobile computing at the data acquisition stage and
an in-house developed BI technology at the reporting stage. This has become
successful only after overcoming a number of challenges. Akerkar addresses,
During the implementation we discovered that older systems are less resource
hungry than the new systems. The new features available in products today utilise
processing power, reduce speed and occupy hard disc space even though not in
use. We underestimated the hardware sizing.
The division faced challenges regarding the usage of PDAs. The issue was
of recharging PDA batteries in remote locations of the country where there is
either shortage or non-availability of electricity and the other issue was uploading
and downloading of data on PDA devices. To solve this issue they used separate
battery back-ups. Moreover they provided three levels of helpdesk to the users.
These levels included the use of Compaq LAN cards through cyber-cafes, the use
of a modem card incase the cyber cafe does not have access to broad band and
the third by calling up through a PCO and sending the SDRAM chip by courier.
The other major initial challenge was to motivate field auditors who have
never used a PC to use a PDA. This barrier was resolved by conducting repetitive
courses for them to understand and use PDAs effectively, states
Akerkar.
The Return on Investment (ROI) has been obtained
in three categories:
- Financial ROI
The total amount invested in the project was Rs 5 crores. Savings in
data acquisition PDA project occurred in the form of :
- Elimination of printing and the cost of
courier.
- Eliminating the need to employ third parties
for data entry and quality checks.
- Internal staff were transferred to the
companys BPO adding international revenue. This amounted to Rs
10 lakh per month that is about Rs 1.2 crore per year.
- Savings accruing from deploying Advisor
i-sight amounted to Rs 2.5 crores per year. The combined savings are
Rs 3.7 crores per year. The break even point will be reached in 1.7
years.
- Client Satisfaction Return on Investment
Client Satisfaction increased by 14 points, thanks to which ACNielsen
was able to demand and get a hike of 15 to 20 percent from its clients
who were satisfied with the speedy deliveries and accurate data that
resulted from this deployment.
- Strategic ROI
The company was able to lock-in customers and lock-out competitors.
Till date this remains the only initiative of its kind in the Retail
Market Research Industry. The initiative has helped ACNielsen ORG-MARG
establish technological superiority over many other ACNielsen operations
in the Asia Pacific region. This has contributed to the Indian entity's
brand image of being a technology savvy market research company which,
in turn, has contributed to the success of its BPO unit enabling it
to get business from countries in Europe and the Asia-Pacific.
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Tasks done by the internal IST team:
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Growing Progressively
At present although ACNeilsen ORG-MARG Pvt. Ltd has graduated from paper based
to CD based data deliveries, it is still cumbersome to manage and support the
growing installed base of 2,500+ users. Hence, the plan is to let clients access
and download reports directly from the Web.
Amidst the backdrop of the impending retail boom ACNeilsen plans to enable and
extend their data acquisition mechanism to capture data directly from giant
organised retail marts such as Big Bazaar. The company envisages escalation
in the number of bar-coded products and plans to collect data through PDA fitted
bar code scanners.
| Company |
ACNeilsen ORG-MARG Pvt. Ltd |
| Solution |
Automation of Retail Market Research Services for
their Retail Measurement Services (RMS) division using mobile technology,
a central database and a Business Intelligence tool that was developed in-house. |
| Project completed |
January 2006 |
| Aim of the implementation |
- Reduce the Audit Cycle time
- Increase data accuracy and quality
- Reduction in survey and operations expenditure
- Increase client satisfaction by providing insightful market information
on time.
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| Major benefits |
- Reduced report delivery time by 7 days.
- Improve quality of information provided to clients by simplifying
the data collection process.
- Introduce new products and services on account of HHT process to
yield additional sales of Rs. 40-50 million per year after three years
- Increase productivity of field personnel by 10 percent by providing
tools to eliminate time consuming, error-prone and paper based manual
tasks.
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