Ritu Rathod Jennifer Downey Business Intelligence The practice of collecting integrating and analyzing data A process in which raw data can be transformed into useful and meaningful information ID: 1040230
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1. Business Intelligence in the Retail Sector Ritu RathodJennifer Downey
2. Business Intelligence:The practice of collecting, integrating and analyzing data. A process in which raw data can be transformed into useful and meaningful information.Main purpose of BI is to support better decision making. Three industries that widely use BI-OilRetailApparelBusiness Intelligence in Retail:Retail industry continues to accelerate rapidly.Retailers aim to deliver a seamless experience across stores and on their websites.Use of BI enables retailers to gather insight through data.Helps retailers formulate marketing strategies.Predict future requirements of customers.What is Business Intelligence
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4. Traditionally BI and Analytics has provided actionable insights that can help corporate executives, business managers, and other end-users make more informed business decisions based on historical data. Today, BI and Analytics solutions provide the ability to: • Optimize internal business processes • Increase operational efficiencies • Identify market trends • Drive new revenues • Forecast future probabilities and trends Business Intelligence in Retail
5. Allows the retailer to gain high quality information through the use of BI tools like data warehousing, data mining, and online analytical processing.BI allows organizations to predict the behavior of their competitors, suppliers, customers, technologies, acquisitions, markets, products and services.BI helps retailers use such as Point of Sale transactions and social media gives unprecedented access to the customers’ mind. Retailers are also using retail management technologies like Self Checkout POS, RFID and Cloud Computing for them by providing a real time integrated and collaborative information system.BI further helps the retailer keep a vigilant eye on business activities by estimating the long and short-term demands, notifications of low inventory and monitoring factors that influence customer buying decisions.BI is becoming a “mission critical” application. Retailers are looking beyond reporting capabilities to applications for syncing information from a wide variety of systems to analyzing performance of sales, margin, supplier delivery times, effectiveness of promotions and allowing them to effectively react to business insights Business Intelligence in Retail - Purpose
6. Business Intelligence in Retail – Dimensions of DataCustomers - Loyalty cards, Credit Card Tracking, IP address, registered user logins, social media, user-generated content, and linking data with a customer-relationship management (CRM) system.Products - SKU collection, enriched data like brand premiums, similarity links, link customer tie ins that are micro-target to customers, allow for more attributes that increases product modeling.Time - Increases size of collection because real time collection allows for continuous measurement of customer behavior, product assortment, stock outs, in-store displays, and environments.Location - Use of geo-special location and purchase history can tie products to a region. Data allows for targeted marketing and product placement. This can allow for short-term revenue maximizing especially if customers purchase history is tied to what they are physically near.Channel - Increase is ways that consumers are purchasing products including a tendency research shop (accessing info on one channel but buying through another). Leads to collection from multiple touchpoints and helps retailers with : (i) understanding, tracking, and mapping the customer journey across touch-points; (ii) evaluating profit impact; and (iii) better allocating marketing budgets to channel
7. Business Intelligence in the Retail SectorIn Store Uses (I)/ E-commerce Uses (E)
8. Business Intelligence in Retail – Example of a Data Capture Map
9. Business Intelligence in Retail –BI Example of Price Decisions
10. A Look Into Two BI SuperusersAmazon – Online Walmart – IN STORE
11. WALMARTDependent on data to make shopping experience memorable.Reasons for use:Check in to pick up an online order at their store, refill pharmacy prescriptions.In-store maps with product locations help finding items easier.Analyze demand and make products available- improved the apps capabilities to ensure products are in stock.
12. Methodology - How Walmart uses BI
13. CHALLENGESWalmart has been making big investments in its online business – adapt to preferences and compete with rival, Amazon.
14. FutureWalmart scan and go:
15. FutureAI and Robotics:New shelf scanning technology being tested in a few Walmart storesSimplifies routine workUses data and vision technology to find items that are out of stock, make changes and identify products with missing labelsHelps locate items and check inventory levels on the shelfTechnology is focusing on tasks that are repeatable, predictable and manual to free associates to spend more time serving customers
16. AmazonDependent on data to drive business and create innovative solutions in retail.Reasons for use:Gather information to drive sales and market products.Analyze demand and make products available with improved product monitoring capabilities to ensure products are in stockOptimize Logistics and Supply Chain methods
17. Methodology - How AMAZON uses BI
18. CHALLENGESAmazon has been making big investments in its big data analysis – they will continue to be industry disruptors, but will find challenges
19. FutureAmazon will use BI for customer reach and optimization. - Expanded go stores - Drone delivery - VR real world shopping experience
20. Business Intelligence in Retail –Benefits to BIThe benefits associated with BI adoption in the retail sector include accurate decision making, efficientservice delivery and competitive advantage.These benefits include - Better customer focus - Ability to anticipate changes in the market earlier - Ability to manage prices better - More efficient service delivery - More robust forecasting of future trends - More efficient use of resources - Improved sharing of inter-department knowledge - Easier to manage costs - Strengthens strategic planning - Better quality of information for improved decision making - Stock management optimization
21. Business Intelligence in Retail –Measuring Benefits
22. Business Intelligence in Retail – ConclusionUsing BI tools in the retail industry is the key to revealing relevant insights, increasing profitability, and improving brand awareness. The right BI analytics can help uncover new markets, identify areas for future development, track the responses to marketing strategies, and much more. In the research it was found that BI and analytics plays a crucial role and the use of integrated BI tools makes decision making easier and faster.For big data in retailing it is important that data quality is improved rather than merely a rise in data volumes that drives improved outcomes. Increases in quality comes from a mix of new data sources, a smart application of statistical tools and domain knowledge combined with theoretical insights. Improved data results in improved forecasts of customer demands, planning, pricing, stock optimization, clear operatives, as well as strategic decision-making Developing and implementing software solutions that help retail businesses to streamline their operations as more and more organizations in the retail sector are calling for the necessity of business intelligence (BI) reporting.
23. Business Intelligence in Retail – Thought ProvokingAs you keep the reasons and ways that BI is used in retail wrap your mind around this final statistic:Walmart collects around 2.5 petabytes (1 petabyte = 1,000,000 gigabytes) of informationevery hour about transactions, customer behavior, location, and devices
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