Q1: What does business intelligence really mean to a business? How did CPR save millions for CKE?
Business intelligence (BI) refers to applications and technologies that are used to gather, provide access to, and analyze data and information to support decision making efforts. Business intelligence means having the right information, in the right format, at the right time to make the best decision
CKE monitored several variables including:
•
Menu Mixes
• Production costs
• Thickburger sales
• Overall burger sales
Using its BI sys CKE quickly determined that production costs of the Thickburger were minimal compared to increase in sales.
The restaurants use operational BI to determine everything from which menu items to add and remove to which locations to close. They use tactical BI for renegotiating contracts and identifying opportunities to improve inefficient processes.