Amway is a global leader in the direct sales industry with $10.9B in annual sales in more than 100 countries and territories. The company has implemented a global BI framework that provides accurate, consistent, and timely insights to support global, regional and local analytical research, business planning, performance measurement and assessment. Oracle BI EE is used by 1500 employees across Amway sales, marketing, finance, and supply chain business units as well as Amway affiliates in Europe, Russia, South Africa, Japan, Australia, Latin America, Malaysia, Vietnam, and Indonesia.
Last week, I spoke with Lead Data Analyst with Amway Global Sales, Dan Arganbright, and IT Manager with Amway BI Competency Center, Mike Olson, about their upcoming presentation at Oracle OpenWorld in San Francisco. Scheduled during a prime speaking slot on Monday, October 1 at 12:15pm in Moscone West, 2007, Dan and Mike will discuss their experience building Amway’s Distributor Consulting solution, powered by Oracle BI EE. You can find more information here.
As background, Amway offers people an opportunity to own their own businesses and consumers exclusive products in health and wellness, beauty and home care. The Amway internal Sales organization is charged with consulting leadership-level Distributors to help them with data insights and ultimately grow their business. Until recently, this was a resource-intense process of gathering and formatting data. In some markets, it took over 40 hours to collect the data and produce the analysis needed for one consultation session.
Amway began its global BI journey in 2006 and since then the company has migrated from having multiple technology providers and integration points to an integrated strategic vendor approach. Today, the company has standardized on Oracle technology for BI. Amway has achieved cost savings through the retirement of redundant technology platforms. In addition, Mike’s organization has led the charge to align disparate BI organizations into a BI Competency Center. The following diagram highlights the simplicity of the standardized architecture of Amway today.
Dubbed Distributor Consulting, Amway has developed a BI solution using the Oracle technology stack to help Distributor leaders grow their businesses. The Distributor Consulting solution provides over 40 metrics for Sales staff to provide data-driven insights on the Distributors and organizations they support. Using Oracle BI EE, Exadata, and Oracle Data Integrator, Amway provides customized and personalized business intelligence, and the Oracle BI EE dashboards were developed by the Amway Sales organization, which demonstrates business empowerment of the technology.
Amway is also leveraging the power of BI to drive business growth in all of its markets. A new set of Distributor Segmentation metrics are enabling a better understanding of distributor behaviors. A Global Scorecard that Amway developed provides key metrics at a market and global level for executive-level discussions. Product Analysis teams can now highlight repeat purchase rates, product penetration and the success of CRM campaigns.
In the words of Dan and Mike, the addition of Exadata 11 months ago has been “a game changer.” Amway has been able to dramatically reduce complexity, improve performance and increase business productivity and cost savings. For example, the number of indexes on the global data warehouse was reduced from more than 1,000 to less than 20. Pulling data for the highest level distributors or the largest markets in the company now can be done in minutes instead of hours. As a result, IT has shifted from performance tuning and keeping the system operational to higher-value business-focused activities.
• “The distributors that have been introduced to the BI reports have found them extremely helpful. Because they have never had this kind of information before, when they were presented with the reports, they wanted to take action immediately!” - Sales Development Manager in Latin America
Without giving away more, the Amway case study presentation will be one of the unique customer sessions at OpenWorld this year. Speakers Dan Arganbright and Mike Olson have planned an interactive and entertaining session on Monday October 1 at 12:15pm in Moscone West, 2007. I’ll see you there!