European virtual factory outlet, Haburi.com recently received the SAS Enterprise Computing Award for dot-coms.
"Haburi.com is one of a minority of dot-com retailers that have recognised that a sound business model and the monitoring of performance against business targets are vital to survival in the new economy," says President of SAS International, Art Cooke.
"Haburi.com has, from the outset, recognised the strategic role that business intelligence plays in improving e-business performance and is using SAS to gain a holistic, customer-focused view of its progress against targets. We are very pleased to honour their achievement with this year's Enterprise Computing Award for dot-coms."
"I believe that we wouldn't be in business today if our management didn't have the daily, up-to-date view of our performance against our key performance indicators that SAS provides," says Haburi.com CEO Michael Vad.
"When you're working with end-of-line goods, you need a very accurate profile of your customer database in order to target customers accurately and SAS gives us that. We've also used SAS to gain the financial overview that we need and have not been able to get out of our enterprise resource planning system."
Haburi.com uses SAS to measure performance against 25 key performance indicators. "Our managers want to look at indicators such as member to customer conversion rates, gross sales, stock turnover and sales by geography," says Haburi.com's business intelligence manager Dorte Ransby.
Using SAS, we can gauge the precise effects of particular campaigns on buying patterns. So we are seeing a rapid return on our investment in SAS software."
"SAS has already exceeded both our expectations, and the return on our investment," says Vad. "In fact, SAS probably paid for itself within one day when, after our SAS KPI dashboard indicated low visitor rates, we used SAS to identify a database error that had led to e-mails being sent out to only 20% of intended recipients. The loss in revenue if this had continued would have been enormous. We resolved the problem within three hours."
Haburi.com was launched in April 2000 and currently does business in the majority of countries across Scandinavia, northern and central Europe.
Online shoppers visiting Haburi.com can buy clothing and accessories from leading designer brands, discounted at up to 70% off the recommended retail price. The European market for excess stock exceeds $20 billion per year. Haburi.com's turnover for 2000 (eight months) was GBP 1.4 million and at the end of 1Q 2001, Haburi.com has achieved over 60% of 2000 revenues. Haburi now has over 600 000 members in Europe and plans to generate over 80 percent of revenues from outside its native Denmark.
Haburi.com recently won a prestigious e-commerce award promoted by Danish business newspaper Borsen, the Danish Association of e-Commerce and the Danish IT Association. Haburi.com won in the "pure dot-com" category, largely in recognition of the company's business understanding, product selection, quality of offers and excellent distribution.
A recent survey into shareholder value, balanced scorecards and e-business performance measurement sponsored by SAS and management consultants Horv'ath & Partner, revealed that although the majority of European companies (71%) believe e-business will increase their shareholder value and that measuring e-business activities is important, less than half (42%) are actually measuring e-business performance. The survey was carried out between August and October 2000 among 145 CFOs, CEOs and finance managers of large established and new market/pre-IPO companies in France, Germany.
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