What is a business intelligence tool, such as AGT IG4?
A business intelligence tool helps identify average indicators for each line of business. It provides dashboards that reveal good and bad practices within the network. The idea is for everyone to compare their activity and results with those of other members. By comparing themselves to the best performers, a certain level of competition can be created. This makes budget management easier. We're moving from an annual review to a monthly one.
What benefits do network heads gain from these solutions?
Network managers have greater risk control with a permanent, real-time view of their network's performance. During periods of recession and crisis, such as last year, these tools provide reassurance. They allow for solutions to meet various needs and, above all, to anticipate future events. These tools also provide reassurance to various partners (banks, suppliers, etc.) regarding the company's health. Furthermore, since best practices are identified and visible to all, network managers can easily demonstrate their effectiveness and implement them more quickly.
The 2009 Economic Modernization Act (LME) amended payment deadline rules. How can business intelligence tools help networks adapt?
LME concerns inventory definition. Decision-making solutions provide performance indicators that allow for the assessment of inventory quantity and the determination of whether selling prices are too high or too low. All of this data influences supplier credit terms. The software allows networks to accurately anticipate their needs using the analyzed data.
Are there any significant differences in the services required by a franchise network compared to a group or other form of organized commerce?
None! The concerns and issues are the same. In each case, best practices must be identified. The only difference is the operating method. In a franchise , if the head of the network wants to impose it without asking anyone, it can. In a cooperative , the process must include every member. It is mainly depending on the profession that the uses vary: the indicators studied will be different in real estate or in the service sector.
At what point in their development do networks become interested in these tools?
Of course, this isn't a concern that arises when launching a business. It's important to remember that the foundation remains commerce. However, networks are increasingly adopting these solutions. They need to manage information. Today, the tools are increasingly accessible and adapt equally well to mature networks with several hundred points of sale, as to young, two-year-old networks with around ten locations.
What is the cost? How long does it take for the network to recoup its investment?
About ten years ago, this required significant resources. Today, procedures have become standardized and costs have been reduced tenfold. For example, for a network of 50 points of sale, the monthly fee will be €2,500, which comes to €50/month for each member. On average, the cost is between €15 and €60. Some networks choose to cover everything themselves, while others charge their partners. Such an investment pays for itself in between 2 and 8 months.
Concretely, how is this type of tool set up?
Everything is done online. Each network member has access via a username and password. The network head sets administrative rights and chooses what to make visible to each member. From the outset, consultants help the network manager establish the criteria to observe and how to interpret the results. The network leader then disseminates the information to the entire network. It's in everyone's best interest to collaborate. The franchisee provides one piece of information but receives another. Everything must be done using this method of exchange.