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STUDENT INFORMATION (Please complete in full - Remember to complete your SBS email address!)
Student Surname and Full Names MWAZI JULIET NDUBU

Subject Name BUSINESS INTELLEGENCE

Student MySBS Email Address 21912531@sbs.ac.za

Student Contact Number +264814464567

Due Date 15 APRIL 2019

Date Assignment Submitted 14 APRIAL 2019

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TABLE OF CONTENTS
Page
Question 1 The Initial steps for starting Business Intelligence program 4
Question 2 The success factors of Business Intelligence program 10
Question 3 The phases of the Business Intelligence roadmap 15
Question 4 Key Performance Indicators (KPIs) 17

List of References 21

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Question 1
TITLE : Initial steps for starting the Business Intelligence program

Introductions
Business Intelligence is defined as the processes, technologies and tools needed to turn data into
information, information into knowledge, and knowledge into plans that drive profitable business
action. Business intelligence encompasses data warehousing, business analytic tool, and content
or knowledge management. (Loshin, D. 2003)

When a company like Pick n Pay plans or tries to initiate a business intelligence program, its likely
to be doing so for one of the two reasons. If you are a technical person, the driver is probably the
draw of the “cool technology” or the opportunity to learn new skills and enhance a resume. If its for
a business person, it s likely believed that Business Intelligence program will magically increase
profitability while drastically decreasing costs. Businesses are incessantly pitched the silver bullet
that is going to solve all their past, current and future business problems. (Loshin, D. 2003).

Pick n Pay online platform at www.pnp.co.za is still small but its growing part of Pick n Pay business.
Pick n Pay is the largest online grocery retail in Africa. The division is winning customers by offering
online convenience, good availability and delivery in one-hour time slots. The online offer in the
Western Cape and Gauteng has been expanded through the establishment of dedicated online
picking warehouses. (Integrated annul report. 2018)

Initial steps for starting the business intelligence program are as follows
 Championship. Senior-level support and sponsorship for a BI program
 Level-setting. The establishment of high-level goals and expectations
 Partnership. Creating a partnership among the participants that provide incentives to act
strategically
 Vision. Asserting a strategic vision that guide design, development, and deployment
 Plan. Establishing a plan that delivers intermediate value while achieving the long-term goals

Championship: Senior-level support and sponsorship for a BI program

To my understanding this step entails that the involvement of senior manager in business intelligence
programs is necessary and important as they are ones to help in making decisions in an organization.

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According to (Loshin, D 2013, p.37) the term Senior-level sponsorship alludes to two different
concepts: explicitly and implicitly. Explicitly, it is indicative of the seniority of the managers and
involvement , where as implicitly refers to ensuring a corporate financial partnership for the program.
Explicitly focuses on establishing a partnership with a senior-level manager or managers at a level
high enough to impose governance on the program and one who is able to enforce cooperation with
those entrusted with the implementation of the program. This includes defining and ensuring the
organizational commitment along and across the organization structure and removing barriers to
success.
The second concept implicitly focuses on the senior management’s establishing a vested stake in
the success of the project. Whether it involves profit or loss responsibility or it is defined more loosely
in terms of stated business expectations, having a senior manager with a personal stake in the
success and failure of the program will project a corporate commitment to project accountability.

According to (integrated annual report 2016). the Chief Executive Officer (CEO) is mandated to
ensure that the day to day business affairs of the group are appropriately managed by the group
executive committee and that the necessary systems and controls are in place for the effective risk
management of the group.
Hugh Herman was appointed as Lead Independent Director (LID). The main function of the LID is to
provide leadership an advice to the board when the chairman has conflict of interest, without
detracting from the authority of the chairman. The LID provides an important point of contact for the
broader investment and stakeholder community should they have concerns with the running of the
company or potential conflicts of interest.
Pick n Pay consists of nine Board committees of senior-level support, namely; Audit and risk
committee which ensure that the appropriate balance between risk and reward is maintained while
protecting all stakeholders against avoidable risks, and mitigating the impact of unavoidable risks.
Remuneration committee; assists the board in meeting its responsibility for setting and administering
appropriate remuneration policies which are in the best long-term interest of the group and are
aligned with the group’s long-tem strategic objective.
Nominations committee is responsible with identifying and evaluating suitable candidates for suitable
appointment to the board to ensure that the board is balanced and able to fulfil its functions.
Corporate finance Committee; assists the board in assessing investment opportunities for the group.
Corporate governance committee; reviews and evaluates suitable candidates for possible
appointment to the board to ensure that the board is balanced and able to fulfil its functions.
Social and ethics committee; aims to ensure that high standards are applied in all areas of the
business, and reviews and approves the policy, strategy and structure for managing social issues.

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Group executive committee is there to manage the day to day business affairs of the various divisions
of the group. It consists of Richard brasher (the Chief Executive Officer), Richard Van Rensburg
(Deputy Chief Finance Office) and Bakar Jakoet (Chief Finance Officer).

The establishment of high -level goals and setting expectations

To properly recognize success, we must have a proper metrics used to measure success. This has
to be defined in terms of delivering the value that the client expects. This means that there has to be
a well defined approach to soliciting business user needs, expectations, and performance measures.
User expectations must be set in the context of the value drivers for business intelligence, the ability
of the technologist to develop tools to met those expectations, and the collective business users’
appetite for change. Any misalignment will lead to an absence of well-defined goals, and in the
absence of well-defined goals , how can the point of success of a project be determined? When a
program failure is manifested as a “missed expectations,” it often implies a misalignment between
the developers’ goals and the end users’ expectations. (Loshin, D 2013)

Below I will discuss the customer expectations and Pick n Pay’s goals to meet the changing needs
of the customers.
According to (Pick n Pay integrated annual report, 2018) The Pick n Pay groups operates in a
dynamic retail environment, by keeping their customers at the heart of their strategy and to adapt
quickly and respond to the changing needs.
Customers expect to be rewarded for their loyalty, and seek personalised rewards and customer
consistently demand lower prices and added value and customers are prepared to shop round for
the lowest prices. Pick n Pay responds with goals of increased operational efficiency is supporting
meaningful and ongoing price investment. Pick n Pay modernised smart shoppers delivering a more
cost-effective and relevant loyalty programme, offering greater personal discounts than ever before
and providing the greater access to affordable financial services, including money transfer and store
account at the lowest cost across the industry.
Time-pressed customers are seeking out more convenience – so Pick n pay operating model has
enabled the group to successfully operate a smaller supermarkets on a leaner cost base.
Customer needs to shop closer to their home, work and transport hubs in smaller convenience
supermarkets and shopping more regularly for smaller baskets, and are looking for smaller stores
that they can move around in quickly. Pick n Pay local and express formats plans to bring Pick n Pay
closer to customers and the growth of boxer brand and partnership with spaza shops in Gauteng,
have brought a quality offering to some of the more informal communities of South Africa.
Customers are seeking demand more added value options, including pre-prepared convenience
meals in order to save time, customers are seeking out value -added service at till. Pick n Pay is

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growing its own-brand offer, which includes a stronger ready-meal range for customers and a
compelling value -added services platform, with strong growth across all categories, including
Third-party bill payment and money transfers.
With e-business platforms, customers now prefer to shop via online platforms and mobile apps at
the comfort of their home and offices. They want to be able to check the prices and promotions and
online apps should enables customers to maintain and update shopping lists. Social media provides
consumers with a powerful platform to review prices, quality and range, an discuss changing trends
and needs. With all the modern e-business, Pick n Pay invested in online platform which dedicates
online warehouses in Western Cape an Gauteng regions of South Africa, to improve its online offer
for customers. The in-house management of the online delivery fleet should provide customers with
reliable and on-time delivery service in one-hour slots and to extend delivery service hours in high-
demand areas. Pick Pay has also launched a new mobile online website which provide customers
with a quick and easy online shopping experience and there is a 70% increase in customers
accessing online website from their mobile device.

Partnering. Creating a partnership among the participants that provides incentives to act
strategically.
According to (Loshin d, 2003). P. performance improvement can be motivated through measurement
and reporting, but the value of improving performance can only be achieved when all constituents
work together. That being said, there are going to be times when different participants perceptions
of value differ, even though all participants are being asked to contribute to the program success.
But people are human, and it is always to be easier to engage individuals when they have a clear
expectations of the value they will receive as a result. This concept must be applied across the
organization in a way that engages all participants by effectively communicating each participants’
stake in both short-term and long-term success of the program.
This implies that there is some incentive for everybody associated with the project to achieve the
specified goals. The business or organizations expect individuals to do good in order to be rewarded
for the achievement accomplished within short-term periods. This attitude encourages tactical steps
at the expense of long-term strategy and stifles strategic thinking.
The success partnership should be designed so that short-term successes can be engineered into
a long a long term strategy, where components of a BI strategy are implemented in a sequence that
provide ongoing value. In return, all participates are to be rewarded for achieving specific goals within
reasonable deadlines. (Loshin, D 2003)

According to pick n pay integrated annual report , 2018) states that since 2006, Pick n Pay had led
a collaboration partnership with government and other strategic partners to help revitalise small,

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independent township grocers to regenerate their stores and turn them into thriving neighbourhood
convenience stores. The neighbourhood convenience format is one of the fastest-growing grocer
retail formats in the world, and a Spaza is the essential to such format. Pick n Pay ‘Spaza-to-store”
partnership with Gauteng government’s Departments of economic development provide spaza shop
owner with access to Pick n Pay’s procurement and distribution channel, business systems and
technology and management advice and mentoring. Our partnership with spaza entrepreneurs
across Gauteng and the Western Cape has Revitalised and modernized their stores and delivered
strong growth.
Pick n Pay Express is another partnership is with BP which is one of the worlds’ leading international
oil and gas companies which provide 24 hours Pick n Pay express convenience store at BP service
stations forecasts in South Africa. Pick n Pay express offers a targeted convenience range that
satisfies an immediate top-up shop or a quick meal solutions. The range is limited and is mainly
focused on daily needs. These sites are allocated in high-traffic-flow areas, including high-density
residential areas and public transport intersections.
TM Supermarkets, trading under TM and Pick n Pay, is one of the most trusted retailers in
Zimbambwe. In 2018 financial reports, the group had a 49% investments in its associates TM
supermarkets. TM supermarkets has 56 stores in Zimbambwe, 16 of them trade under Pick n Pay
banner.

Establishing a Vision
A vision statement is a straightforward declaration describing how the control and exploitation of
actionable knowledge will add value to the organization. Those organization that are bound to this
type of vision will best demonstrate execution of strategy to gain competitive advantage. For
example, in the retail industry, where value is expressed as using information to completely
understand the customer, which in return can led to more effective targeted marketing, increased
volume sales, reduced customer churn and overall improved customer satisfaction. This vision
embodies an agreement between the business management and the technologies that long-term
corporate information based strategy is critical to the future of the business and that synergy and
cross-fertilizing technology and business expertise will result in higher profits and lower costs for the
business and in personal rewards for all participants . (Loshin, D. 2003) .

Pick n Pay vision statement is “We foster personal growth and opportunity, we nurture leadership
and vision, and reward innovation. We live by honesty and integrity and participate in our
communities”

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Plan
Establishing a plan that delivers intermediate value while achieving the long-term goals.
The strategy translates the overall vision into set of tactics for execution. A blueprint provides a high-
level guide to executing the strategy.
Pick n Pay group developed its strategic turnaround plan in 2014. Its objective is to restore the
business to a position of long-term sustainable growth. The group’s successful execution of its paln
to date is evident in the delivery of consistent earning growth and value creation over the last four
years.
Pick n pay has three stages of strategic focus;
Stage 1. Stabilise the business
Stage one of the group’s strategic plan focused on stabilising the operations and the financial
position of the business, while developing a solid foundation for future growth. The critical building
blocks includes the acceleration of a centralised supply chain, the development of a more efficient,
“Next Generation” supermarkets, and the restructure of their Boxer business into South Africa.
Stage 2. Change the trajectory
The second stage of its turnaround plan has seen the group focus on reducing cost and increasing
productivity across its operations, enabling it to invest more in its customer offer. The group is also
developing as a multi-channel retailer, with a focus on convenience, including smaller format stores,
a strong and innovative online offer and a broad range of value-added services. Stage 2 is organised
around seven business acceleration pillars, namely; better for customer, a flexible and winning
estate, efficient and effective operations, Every product, every day, a winning team, boxer-a national
brand and rest of Africa-second engine of growth. These represent the seven material growth
opportunities for the group to create value. The pillars provide the senior management team with
clear priorities, objectives and line of accountability The pillars consider the material issues and
concerns of their stakeholders, as well as the risk facing the business and are underpinned by their
commitment to always do good in the communities they serve. The group accelerated its efficiency
effort in 2018 in response to the increasingly challenging trading environment in South Africa.
Supporting a more competitive offer for customers through lower prices, better stores and growing
range of own-brand products.
Stage 3. Sustainable long-term growth
The progress achieved over the past five years has put the Group in a stronger position to reach
stage 3 of its plan, and it is demonstrating a number of its attributes associated with the long-term
sustainable retail business. These which include a mature and effective supply chain, ongoing
improvements in operating efficiency, a clear blueprint for growth, innovation and the respond to
changing customer needs. (Integrated annual report , 2018)

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Question 2
TITLE : Business Intelligence success factors

Introductions
Business intelligence has in recent years been rated as one of the top application and technology
investment (Luftman and Derkson, 2012). It is a term that describe business systems and
applications that organization use to support their decision making processes. Business intelligence
tools provides aggregation, analyses and reporting functions on the organizations data an as such.
It facilitates achievements of mission objectives through providing required information or
intelligence to the decision makers with regards to the evaluations and control of predefined metrics.

In this essay, I will discuss the success factors for Pick n Pay’s Business Intelligence program to be
b effective in the modern e-business platforms.

1. Strong , dedicated management

According to (Loshin, D 2013) it is important to have strong business term members who can help
bridge the gaps between the lines of business end users and Information technology team members.
In particular, the management team must be able to:
 Direct the process of engaging the right business side participants;
 Direct the solicitation of business expectations and help translate those into specific
requirements;
 Guide the definition of success and associated metrics;
 Engage team members with the right skills and ensure proper training;
 Manage the knowledge and technology acquisition process;
 Develop and manage a program plan;
 Manage program implementation; and defuse any political time bombs

2. Setting appropriate expectations

Very often, clients define their own expectations as a by-product of a business application or service
that is to be supported by a technical solutions. In these cases, the perception of success or failure
is (mistakenly) related to each client’s ability to perform his or her job, which may or may not relate
to the correctness of the technical solutions.
To avoid the perception that expectations are not being met, it I important to have a process for
determining, articulating, and documenting the appropriate expectations regarding:

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Functionality; referring to the types of reporting and analytics applications to be provided and the
features of these applications;
Accessibility; this ensures that those clients who are meant to derive value from particular business
intelligence application are able to access the application and the data underlying the application;
Performance, which refers to the interactive performance, supporting mixed use capabilities , and
scalability.
Delivery; refers to the timeliness and predictability of delivering functionality on a predetermined
schedule;
Availability; which can be dictated based on agreed-to service-level agreements; and
Business relevance, which is of primary importance, because it relates the objectives to key business
performance indicators, such as cost reductions, increased throughput or volume, and higher profits.

3. Establishing Metrics for success

In initials steps, I explored the dimensions for setting expectations; This talks about what is needed
to determine compliance with those expectations. This boils down to the ability to identify a way to
quantify compliance with an expectations and the means to measure that compliances. Success
metrics can be directly related to each of the expectation dimensions;
 Functionality can be broken down into an enumeration of service or product features; success
can be measured by how many of those features are supported by that service or product.
 Accessibility is suitably represented as a collection of access policies that relate information
clients to data by security constraints. Accessibility can be measured as a function of how
many clients there are, what their access path is (e.g., software connectivity), and whether
proper access has been granted.
 Performance can be distilled into individual performance components, such as timelines
(How quickly is information available?), speed of processing (How quickly processes needed
for analysis finished?), and volume/throughput (How many can I process? And at what rate?).
 Delivery is a function of whether what has been promised is delivered within a timely manner.
Practically speaking, a program for which promises made by individuals or teams are not
delivered is a program destined for failure, Even if the delivery time is not as timely as the
client would like, what is more important is predictability , in other words , knowing when you
can reliably expect a feature or access rights to be made available.
 Quality is very frequently talked about but seldom addressed. High quality of information in a
BI program is probably the most important success factor, because if the information is low
quality, no other component of the system can trusted. The measurement of quality is a funny
thing; when we talk about manufactured objects, we can define some expected result and
then impose some range of acceptable values. For example, if we are making 1-inch-long

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screws, perhaps we can accept screws that are 1.002 inches long. On the other hand,
because it is hard to define what is right and what is wrong for data, it is very hard to
objectively define data quality metrics.
Availability is relatively easy to measure; in fact, many system refer to both uptime and downtime as
a measure of availability. We can also incorporate a measure of those scheduled hours the system
are expected to be availability. We can also incorporate a measure of those scheduled hours the
system are expected to be available. There are also concepts of the expected life-time of various
components that relates to availability, such as mean time between failures (MTBF) for hardware,
etc.
Business relevance is easy and hard-easy because the effects of a successful program are
immediately clear, hard because whether the result is attributable to the original BI may not be clearly
evident. When we look at modeling the business process and then determining the importance of
the pieces of the BI program within that process, we may have a better way to track bottom-line
improvement to the technical program. We will explore the concept of business process modeling in
greater detail in the next chapter.

4. Building a Strong Team

Assembling the right set of smart, motivated people to take on part of the BI program is critical to
success.

5. Understanding the Technology

In contrast to what a lot of experts say, I believe that everyone involved in BI, including the business
partners, should have some understanding of the technology that comprises the BI program. There
are few reason for this.
-Understanding the technology provides some grounding in what is possible.
-Awareness of the complexity of some analytical applications will help in determining the resources
needed to properly service the client base.
-Many vendors dress up simplistic applications with fancy visual interfaces as a way to hide product
deficiencies. Understanding the technology will help customers evaluate different products and
determine which tools are of value and which are not.

6. Proper Data Architecture

When we build a system, we also build the representation of information within that system. This
representation, which is called a data model, describes the different entries that exist within the

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system along with the relationships between those entries. But it is important to remember it is still
just a model, and that model, once defined and put into production, remains relatively static. On the
other hand, what is being modeled is not necessarily static. This means that as thing in the real world
change, there must be some way to reflect those changes in the model. A well-thought-out data
architecture will account for this possibility. The data architecture reflects the needs of the business
applications, including the entity relationships, as well as metadata , information sharing, and backup
and recovery, among other things.

7. Using Quality Information

A common theme throughout this book is the importance of high-quality data to any BI program. To
paraphrase what I said before in this chapter, if the input to the decision process is faulty, the
decisions will be faulty. Whether the application is an operational process or an analytical process,
errors in data may cause glitches in processing streams, result in incorrect analyses, or even lead
to errors in judgement when carrying out the actions prescribed by the analytical process. Different
kinds of errors can wend their way into data. Some examples include data-entry errors (e.g.,
someone types in a last name with a different spelling that it has been entered before), data-
transcription errors (e.g., the data-transformation process is flawed, creating inconsistencies in the
data), or analysis errors (e.g., summarizing averages of values without considering how null values
are to be treated.

8. Enterprise Integration
A successful program supplies an intelligence capability that both draws on enterprise data
resources and is available as a resource across the enterprise. This implies that there must be well-
defined processes for integrating information from multiple sources, whether it means merging data
sets aggregated and deposited at a staging area or providing the means for integrating collections
of data instances as they move through articulation points in the enterprise. Extract /transform/load
(ETL) processing, enterprise application integration (EAI), Web Service are all examples of process
architectures designed for enterprise integration.

9. Exploiting Reuse
The concept of reuse is to leverage work that has already been done to avoid simultaneous
duplicated effort. Here are some areas of reuse to focus on.
 Reuse of data-Replications and duplication of data sets and errors. If there are data sets that
are ultimately used in multiple information flows, it is worthwhile to manage those data sets
as a shared resource and likewise share in the management responsibilities. Consistent
shared data sets add significant value.

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 Reuse of metadata-As distinct data sets are integrated into a single BI repository, there are
likely to be differences in the way that similar entities are represented. Consolidating the
metadata representations and creating transformations from original source into that
representation will ease the data integration process.
 Reuse of business logic-If the same data sets are reused throughout the BI program for
different aims, then it is possible that similar business rules may need to be applied to the
data at different points in the information flow. Archive and manage those business rules as
content, and use a methodology to make those rules actionable.
 Reuse of business process-If there is a human-oriented process (i.e., commucations and
interaction) that is successful, try to recreate the same cooperation in all aspects of the
program.

10. Managing Scope

A malevolent notion that deviously extends the time to delivery of a project is scope creep,
continuous addition of deliverable into an already agreed-to scope of work. A successful manager
maintains control on the scope and makes sure that additional noncritical items are relegated to a
follow-on scope so as to not disturb the ability to deliver.

11. Scalability
As the program grows and is more successful, current client use will grow and the program will attract
more clients. As the pressure on the system grows, more and larger data sets will be integrated into
the repository, and the interactivity will increase. Therefore, design the program so that it can be
easily scaled so as to maintain performance at the agreed-to service level.

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Question 3
TITLE : The phases of the Business Intelligence roadmap

Introduction

Business intelligence roadmap is a visual guide to developing an effect business intelligence (BI)
decision-support application. (Moss, T.L and Atre, S 2003).
Business Intelligence managers can use the roadmap to plan how their team can optimize internal
business processes to be efficient, which lead to better informed decisions by the business, which
culminates in scaling. An added benefit of this roadmap is to help business intelligence managers
inform the rest of the organization about what business intelligence is doing and how they plan on
being part of the business.
The purpose of roadmap is to provide a detailed articulation of how we will achieve the vision set out
in the Business Intelligence strategy of creating the capacity for Business Intelligence

In this essay, I will review the phases or steps of the business intelligence in their correct order,
including the business objective of each phase with the examples from Pick n pay program.

Phase 1. Discovery
Business objective: Assess current capabilities and develop baseline measures
Phase 2. Baseline and Gap analysis
Business objective: Establish baseline measurements, specify performance targets, identify gaps
and determine feasibility
Phase 3. Plan
Business objective: processing of Infrastructure and capabilities, evaluation and program planning.
Phase 4. Business analysis
Business objective: solicit requirement, specify key performance measures and indicators, identify
target scores for key performance measures and indicators
Phase 5. Modeling
Business Objective: Develop data warehouse and analytical system models
Phase 6. Design, develop, deploy data warehouse
Objective: Create initial version of repositories for loading data for reporting and analysis
Phase 7. Data quality and metadata

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Business Objective: Assess the quality of data sources, enterprise business team glossary and
definitions and business rules.
Phase 8. Data integration
Business objective; Extraction of data from sources, transformations in preparation for use within
analytical platform.
Phase 9. Design: Reporting and hoc
Business objectives; Initial designs for canned reports and ad hoc queries to data warehouse
Phase 10. Implement: Reporting and ad hoc
Business objective: Development and implementation
Phase 11. Deploy: reporting and ad hoc
Business Objective: Publish capabilities to business users
Phase12. Design: OLAP, dashboard, and scorecards
Business objective: Mature the B\business intelligence capability
Phase 13. Implement: OLAP, dashboards, and scorecards
Objective: Development and implementation
Phase 14. Review business analysis
Objective: determine ways that the business intelligence program is positively impacting the
business and identify new opportunities for analytics that will increase corporate value.

Any new business intelligence will follow the preparation steps as mentioned above in order
regardless if it is for simple reports or a complex predictive analysis solutions. Once preparation is
completed which is phase 1 to 9, the new capabilities are added and then maintained. New
capabilities are reporting and ad hoc analysis. Then the implementation and deployed.

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Question 4

TITLE : Key Performance Indicators

According to Klipfolio (https:/www.klipfolio.com/blog/kpi-metric-measure, 2017) Key performance

indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key
business objectives. Organisations use KIPs to evaluate their success at reaching targets. They can
span across industries, departments or individual tasks. KPIs are evaluated over a specific time
period, and are compared to against past performance metrics or acceptable norms.

Key performance indicators (KPIs) are the vital instruments used by managers to understand
whether their business is on a successful voyage or whether it is veering off the prosperous path.
The right set of indicators will shine light on performance and highlight area that need attention.
“What gets measured get done” and if you can’t measure it, you can’t manage it’ are just the two
popular sayings used to highlight the critical importance of metrics. Without the right key performance
indicators, managers are sailing blind.
The problem is that most managers are struggling to understand and identify the vital few
management metrics and instead collect and report a vast amount of everything that is easy to
measure. As a consequences they end up drowning in data while thirsting for information.
Effective managers and decision makers understand the performance of all key dimensions of their
business by distilling them down into the critical KPIs. (

Five Key performance Indicators created for pick n Pay to measure their future performance in the
new venture of E-business

Shopping cart conversion rate and shopping cart session

track the number of shopping carts started versus the number of shopping carts that progress to a
successful order. This helps to measure the number of complete orders compared to the total
number of shopping carts initiated by potential customer.
The shopping cart session tracks the total number of shopping cart on your cart. This will allow Pick
n pay to track the total number of shopping carts opened compared to the total number of session
on their site.
To calculate shopping cart conversion
Formula: (visitors who placed an order/Total number of visitors who started a shopping cart)x100

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To calculate cart session: (Number of shopping carts opened by the a user within a given time
period/Total number of session within a time given period) x 100

Revenue from Repeat Online customers and revenue per visitor

This measures the total share revenue that is coming from repeat customers. This lets the company
to track the total share of revenue that can be attributed to repeat customers. This helps to identity
how significant your loyal customer basic is, and can help you to parse out time spent on nurturing
those customers. The revenue per visitor metric helps to track the total amount of revenue generated
per single visits to online store.

(Revenue from repeated customers/revenue from all customers) X 100

Examples:
Revenue from repeat online customers:
Lets say in January, 2019, Pick n Pay generated N$205,000 from repeated customers and
N$750,000 revenue from all customer in a month.

To calculate the revenue from repeated online customers:

(revenue from repeated customers/revenue from all customer)X 100
(N$205 000/N$750 000) x 100 = 27.33 % of revenue from existing customers

Calculations of revenue per visitor

Formula: (Revenue generated by visitor A + Revenue generated by visitor B +….+ Revenue
generated by visitor Z) / Total number of visitors.
Lets say in February, 2019, Pick n Pay had 465 people visited Pick n Pay site. The first 100 visitors
each bought items for N$1050, the second 165 visitors bought items for N$230, the third 110 visitors
each bought items of N$879 each visitor and the 90 visitors each bought items of N$125.

To calculate Revenue from repeat online customer we need to find the total revenue or sales made
as follows
100 visitor X 150 = N$15 000,
165 visitors X N$230 = N$37 950,
110 visitors X N$579 = N$63, 690
90 visitor X N$125 = N$11, 250
Revenue = (N$15, 000 + N$37, 950 + N$963 690 + N$11, 250 )/465 = N$127, 890/465= N$275 per
visitor

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New customers on first visit
This tracks the total number of new customers coming to the site and users that buy items on their
visit to the site. This allows to tracks the rate at which the online site attracts new customers, while
also giving insight into total share of new customers and helps to monitor how compelling the website
and offers are at prompting new users to purchase items on their first visit.

Formula to calculate: Orders from first time visitors/ new visitors

Example
If in march Pick n Pay had 50 orders from first time visitors out of 35 new visitors on the site. How
much will be the visit conversion?

To calculate: Orders from first visitors /new visitor= 50/53 = 1.43 % first visit conversion

Shopping carts abandoned

This monitors the number of carts that have been abandoned buy customers. This metric helps to
keep track of the number of customers that added items to their shopping carts but did not follow
through on a purchase.

On-time delivery
It measures the timeliness of the deliveries
The on-time deliveries helps to keep track of how accurate the deliver time estimated are, and
whether or not your deliveries are getting to their destination on time. It is important that packages
arrive on time, as late deliveries negatively affect customer loyalty and can cause the company to
lose business. Performance for on-time should be done reported weekly and the Key performance
target must be 100%.
Formula: (Items delivered on-time/Total number of deliveries)x100

Example
If in a week, there were 75 deliveries in total and out of that, 60 were delivered on time.
Calculations: (items delivered on time/total number of deliveries)x100 = (75/60)x100= 80% delivered
on-time

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Conclusion
Key performance indicators need to be monitored and reported on, if they change in real time, they
should be monitored in real time. The company can use dashboards which are the perfect tool for
performance tracking reports as they can be used to visually depict the performance of an enterprise,
a specific department or a key business operation.
Organizations should choose key performance indicators that line up with the business goals, KPIs
are metrics and measurements that indicte at a glance whether the company is living or dying.the

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LIST OF REFERENCE

Https://www.klipfolio.com./blog/kpi-metric-measures%3famp

Loshin, D. 2013. Business Intelligence: the savvy manager’s guide. 2nd ed. Morgan Kaufman as an
imprint of Elsevier, MA, USA.

Luftman, L and Derksn, B. 2012. Key Issues for Information Technology executive.

Moss, T. L and Atre, S. 2013. Business intelligence Roadmap: the complete project lifecycle for
decision-support applications

www.pnp.co.za. Pick n Pay Integrated annual report. 2018

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