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Read the following two articles:

· From CIOInsight entitled ‘

How Analytics Saved Sunny Delight $1M (Links to an external site.)

‘ by Shawn Roberts, VP and CIO of Sunny Delight.

· From CIO entitled ‘

How Sunny Delight juices up sales with cloud-based analytics (Links to an external site.)

‘ by Clint Boulton.

page

double-

spaced

(no need to follow any writing format such as MLA or APA)

addressing the following questions:

· Is it surprising that a small company such as Sunny Delight could end up with so many different analytics tools?

· How did Sunny Delight end up with so many analytics tools?

· What are the trade-offs of moving to an enterprise-level analytics solution for individual employees who may have grown accustomed to working with their own customized solutions for generating data?

· Gartner reported that most businesses will have access to some sort of self-service BI tool within the next few years. However Gartner estimated that less than 10% will have sufficient data governance practices in place to prevent data inconsistencies across the organization. Why do you think so many companies invest in BI solutions while ignoring governance programs to ensure data consistency?

2/16/22, 3:48 PM How Sunny Delight juices up sales with cloud-based analytics

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How Sunny Delight juices up
sales with cloud-based
analytics
Sunny Delight’s CIO made a bold move when it was time to pick a cloud analytics
service to identify de�ciencies in its sales promotions and opportunities for sales
growth. He let business managers make the decision.

By Clint Boulton

Senior Writer, CIO SEP 14, 2015 5:35 AM PDT

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2/16/22, 3:48 PM How Sunny Delight juices up sales with cloud-based analytics

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Sunny Delight CIO
Shawn Roberts .

Analytics software has helped Sunny Delight Beverages boost pro�ts by roughly $2
million a year and trim $195,000 in sta�ng costs annually, says CIO Shawn Roberts .
The cloud application, which Roberts settled on with the help of several business
managers, allows the company’s business departments to determine the investment
for promotions as well as make adjustments to curb wasteful spending on overtime
and pricey transportation options.

“We couldn’t see an order from sales promotion to payment in a cost-e�ective, non-
laborious way,” Roberts told CIO.com. Sunny Delight engineers were manually
extracting and cross-referencing data from several business intelligence tools to
generate BI reports – an approach would no longer stand under a corporate directive
to streamline sales operations.

[ Related:C-suite executives at mid-market �rms investing
in analytics, cloud ]

The challenge Sunny Delight faced is hardly unique. Many
companies lack cohesive data management strategies plans
for how data, analytics and people come together to create
business value, according to McKinsey &Co. Data
management typically happens in silos, with each department

using a di�erent BI application to make some sense of business performance. CIOs, at
DirectBuy and other organizations, seeking a so-called single version of the truth are
increasingly unifying their data architectures.

Too many BI solutions, too little time

Such an e�ort has been afoot at Sunny Delight since 2013, when third-party auditors
revealed that business managers were using eight di�erent BI applications to parse
operational data, producing inconsistencies and redundancies. The company
generates roughly $550 million annually from selling its fruit-based drinks to grocery
stores, drugstore, and other retailers. To boost sales, the company marks down each
pallet of drinks by 15 percent. But it lacked a way to correlate the impact of these
promotions to increased order volume, Roberts says. Also, information collected from
Sunny Delight’s sales was overly broad. It knew how much money it was making
based on sales of certain customers, but not by region. “We couldn’t tie it to the ebb
and �ow in sales,” he says. If Sunny Delight was going to derive any value from its data
it needed to make some changes..

[ Related: How predictive analytics will revolutionize healthcare ]

Working closely with CFO Bill Schumacher, Roberts selected a cross-functional team
comprised of managers in sales, marketing, production, logistics, warehouse and
accounting departments. Their goal was to “hammer out where our gaps were” and
determine the most e�ective way to produce a data stream that could help identify
sales, promotion, as well as customer trends. Perhaps more importantly, Roberts left

http://www.cio.com/article/2981821/leadership-management/c-suite-executives-at-mid-market-firms-investing-in-analytics-cloud.html

http://www.mckinsey.com/insights/business_technology/big_data_whats_your_plan

http://www.cio.com/article/2980676/data-analytics/how-data-analytics-helped-directbuy-gain-new-customer-insights.html

http://www.cio.com/article/2954656/healthcare/how-predictive-analytics-will-revolutionize-healthcare.html

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2/16/22, 3:48 PM How Sunny Delight juices up sales with cloud-based analytics

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the selection of a new analytics tool to the business line leaders who were going to
use the analytics to improve their work�ows.

The team evaluated 17 tools before settling on a cloud solution from startup Birst,
which allows business managers with little technical know-how to view data in
customizable charts and other snazzy graphics. Each department appointed one user
to collaborate with IT on new features and functionality they required, including
specialized interfaces and drop-down menus, to make queries easier for end users.

Analytics reveals business weaknesses, opportunities

Birst revealed de�ciencies in promotions. The company learned that some
promotions that shipped on weekends to retailers for a Sunday, Monday or Tuesday
cost the company signi�cantly more because freight transportation rates were higher
on weekends. Moreover, because Sunny Delight’s warehouses weren’t typically open
on weekends, it had to pay sta� working 12-hour shifts overtime wages to load
pallets onto trucks.

[ Related: Data analytics help food company spot bottlenecks and defects ]

To �x this problem, the company asked its retail customers to agree to have their
shipments sent between Thursday and Friday or Friday and Monday. Sunny Delight
ultimately pared its transportation costs by 7 percent. The savings also rippled
through its production chain, reducing overtime costs on each production from to 2
percent from 20 percent.

Sunny Delight expects to use Birst to determine whether new products are lifting
sales of other products. For example, the company would like to know whether
Sunny D X, a new energy drink it began marketing to teens in 2014, is impacting sales
in areas it is sold, such as Boston, Philadelphia and Washington D.C. Among the
questions Roberts has: Are there any bumps in sales orders from those areas? Is there
a higher awareness for the Sunny Delight brand or just D X? Are store shipments
increasing?

He said he hopes to work with marketing this year to identify opportunities to boost
beverage sales, or introduce e�ciencies in production and logistics.

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i b h i l d

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