Michelin transforms its data warehouse into key business performance enabler

Michelin Tyre Company South Africa has transformed its data warehouse and business reporting systems from being an information technology tool that no one trusted to one that is today providing almost real-time data which is helping managers to drive the business.

And now the Johannesburg-based company, which distributes passenger, truck and earth moving tyres via a nationwide network of dealers, is implementing a Cognos-based corporate business performance (CPM) strategy that is to be rolled out throughout the organisation to align performance at all levels with corporate goals.

"In six months we've gone from a position where we were saying 'lets get rid of it' to saying what a 'wonderful' tool," says Gavin Pansegrouw, Information Systems Manager, Michelin South Africa, adding that the business intelligence (BI) model adopted by Michelin SA could be repeated throughout Michelin's global operations.

"But prior to Synergy's involvement, business managers were not happy and did not trust the information and reports coming out of the data warehouse. We had all this business information available, but no one was looking at it."

The basic problems with the data warehouse data and its extraction into data cubes for analysis by Cognos tools was not standardised and was generated from a number of different sources - spreadsheets, budget information and business systems. The data was inaccurate, unreliable and trying to access it was not easy.

The company commissioned Synergy Computing, a data warehouse, business intelligence and CPM specialist to help resolve the problems.

"We were initially called in to support the data warehouse and subsequently to sort out the reporting and analysis problems they were experiencing. With our experienced consulting team we identified the issues and concerns and resolved them," says Michael Bornheim, Technical Manager, Synergy Computing.

"Michelin is now at a point where the reports they are getting out of the system have become an integral part of their daily work."

By utilising the DTS extraction tool within the Microsoft SQL database on which the data warehouse was developed, data extraction, transformation and loading times have been reduced from being a 5.5-hour operation to just 19 minutes.

"Now, instead of reports being based on old information and available just once a day at the start or end of business, we're getting reports four times a day. If need be, we could can get reports based on data that's less than 20 minutes old which is almost real-time information," says Pansegrouw.

Managers can now measure actuals rather than projections. So that, if, for example, sales of certain products are not meeting targets, a special promotion can be implemented quickly to rectify the problem.

"We're no longer 'thumb-sucking' when it comes to identifying the causes of any problem. We're able to find out what is really happening at product, sales or dealer level," he says.

Cognos Impromptu and PowerPlay analysis tools are used for reporting with some 50 users able to access authorised reports via a Web interface. Managers at the company's headquarters based in France, can also access the reports over the Web, as required. Security is handled by Cognos Access Manager which integrates with the systems MS 2000's Active Directory to ensure single, secure, sign-on.

The company recently implemented Cognos Metrics Manager as the foundation of its CPM strategy. It is currently used to highlight performance against key performance indicators (KPI) that are being regularly monitored by management using screen-based dashboards of visual indicators. This enables managers to address any deviations timeously to ensure performance is achieved in line with corporate goals.

"I believe this will have a major impact on the business as we have never had performance management at this level before," says Pansegrouw.

In time, the CPM will be rolled down throughout the organisation so that individual employees at business unit, area management and sales can monitor their own KPIs.

Clifford Potgieter, Department Head, Passenger Business, says it is now much easier to focus on problems and address issues quickly.

"For example, we don't just get general sales reports that say figures are down. We can drill down into the individual products and see exactly where the problem lies," he says.

"I need management information that is current and doesn't involve going back into figures and balancing it to ensure it's accurate. Now I can get full details on my screen at a click of a mouse."

His sales reps are also now beginning to use the tools extensively following regular weekly meetings that highlight different functionalities within the system.

"My sales staff are now capable of drawing up comprehensive reports which, for example, we use when we meet our dealers. We're not only looking at sales volumes, but what they are selling across the product range down to each of their stores. It means we're not just pushing sales into the dealers, but also helping them in selling out," says Potgeiter.

Previously, such reports took a couple of days to prepare. Now they can be done in five minutes.

"It's resulting in much better customer relations as often our dealers do not have this type of data readily available. They are surprised at the level of information we now have to help them improve sales," says Potgeiter.

On the financial side, management is now able to report on month-end figures immediately, whereas previously it was a major task that took a week to complete.

As currency exchange fluctuations are now built into the data cube, the reports reflect a more accurate picture of actual financial performance in Rands and Euros.

"While our main reporting and CPM focus is currently financial, we are easing the technology into the company and will be looking at different business issues as we go along," concludes Pansegrouw.