The Brain Behind the Big, Bad Burger and Other Tales of Business Intelligence

PAGE 7

When Wendy's began using its BI system to generate sales forecasts for stores, operators were sceptical. They didn't think technology could possibly take into consideration how local factors - such as weather, events and traffic patterns - affect their sales. Deane recognized that it's tough for people to quit relying on their experience and gut, so he listened to operators' concerns. Instead of forcing them to accept the forecasts, which he knew to be extremely accurate, he told them they could modify the forecasts from the BI system so long as they explained why and provided they later compared actual sales with what they forecasted and what the system predicted. The operators who modified the forecasts realized that the technology was often more accurate than they were. When they saw that they could improve their operations by better staffing their restaurants and more accurately ordering food to meet forecasted demand, they increasingly embraced BI. In effect, Deane let the users come to the trough on their own terms.

One might argue that Wendy's could have got better results more quickly had it forced store managers to use the forecasts. However, if it had, it would have run the risk of facing mutiny from the operators. And had store operators fought the forecasts, that would have disrupted operations much more than the delay the company experienced by letting operators modify the forecasts. Deane says being sensitive to users' concerns was more important, even at the expense of slowing down the rate of return.

"Trying to convince 1500 store managers to automatically accept a new tool that is going to have an impact on their ability to perform in their store is no trivial matter. You have to be very, very careful how you deal with the change management and the acceptance side of an implementation," says Deane. And if you do it right, you can realize an ROI of 430 percent over a five-year period, according to IDC. "Of all the projects that one attempts to do as a CIO, business intelligence, if well managed - and it's not always well managed - contributes far, far more than it costs," Dean adds.

SIDEBAR: Tips for Getting BI Right

  • Analyze how executives make decisions.
  • Consider what information executives need in order to facilitate quick, accurate decisions.
  • Pay attention to data quality.
  • Devise performance metrics that are most relevant to the business.
  • Provide the context that influences performance metrics.
  • Take into account users' feelings, and address their concerns up front.



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