Business PlanEssay Preview: Business PlanReport this essayBusiness AnalyticBusiness analytic refers to understanding the past business performance based on historical data, statistics and quantitative analysis, followed by building predictive modeling and computing business planning. Bossini highly values inventory data, and they have developed key performance indicators (KPI) to quantify performance, so that effective management can be achieved. Mr. Wong pointed out that in order to develop a set of measurable and representative KPI, they have to first define the rules, collect the historical data for calculation and transform inventory data into stock out rate.
Then, based on the results of carrying out apple-to-apple comparisons between different retail stores, follow-up action is provided. If several retail stores continue to show poor performance, Bossini can spot the problem at an earlier stage and find out the causes to determine whether it is due to difficulties at the supply chain or the replenishment process. The KPI enables Bossini to analyze the performance of each retail store effectively, easing budgeting and generating better return rate by reducing logistics costs.
Advanced PlanningBudgeting enables business goals to be more specific, thus helping the management team to allocate resources more effectively. However, the accuracy of budgeting depends on how frequently the data is updated. To avoid significant losses resulting from large differences between budget assumptions and actual environmental changes, Bossini uses rolling forecasts to make quarterly adjustments to the original budget and prepare detailed monthly budget. By compiling rolling forecast, we can keep a finger on the pulse of changing market conditions and adjust the business focus accordingly, keeping the budget close to reality, thus greatly improve the accuracy of budgeting and fully utilize the indicating function of the budget.
Bossini has taken steps ahead of most other retail apparel brands to make use of technology to improve its profitability, for the purposes of meeting its market demand more accurately and better arrange its merchandising planning, discount promoting events and sales network distribution, etc. In order to design budget and development plans systematically, Bossini makes use of software available in the market, such as PowerPivot to analyze information related to inventory or the merchandising plan, and take advantage of TM1 to edit, merge and view extensive multi-dimensional data. Mr. Wong mentioned that Bossini is going to put more resources on I.T. for developing a unique software for new projects to facilitate long term analysis.
[Updated: The comment from the CEO to the New Mexico Times is that Bossini’s leadership was unaware of this news, as is that, for this particular event, he did not have any knowledge about the I.T.]
[Updated: In his original report, Bossini described the role of the Bossini’s staff as an “extensive team, providing professional services on a daily basis”. It will not be re-published until that information has been made public.]