Topics: Retailing, Data analysis, Business intelligence Pages: 7 (3467 words) Published: November 2, 2014

A recent survey at the big data Retail forum summit in Chicago suggests 80% of the retailers are aware of big data and 67% are either already in the process of building a big data strategy. With data collection at various touch points ever-growing, and technology enabling data collection and analysis, companies have raced towards adopting BI (Business Intelligence) and big data solutions to earn competitive advantage. The term big data refers to solutions that can handle data that characterizes 4Vs viz., Volume, Velocity, Variety and Veracity. While insights on to merchandising, procurement was nothing new, customer analytics has unleashed the real big data capabilities enabling companies to arrive at insights that were earlier close to impossible. In retail parlance, consumer shopping behavior, preferences etc. are data that was a rarity in itself. Thanks to changing consumer mindset. Consumers are increasingly ready to share data and also allow data capturing by retailers; but a recent IBM study concludes that all such acceptance is with expectations that the retailers would honor their privacy and provide value in return. Big data solution provides have been able to demonstrate ROI (Return on Investment) for retail firms that have invested into these technologies. Changes in consumer buying modes, increased purchasing power in a hypercompetitive industry has coerced the industry to adapt to such changing patterns. Omnichannel retailing is the norm of the 21st century. Retailers are continuously bothered by this multichannel importance that customers showroom but yet dynamically change the channel where the ultimate sale is completed. The intrinsic change in patterns around shopping behavior has been a source of research for retailers and their big data solution vendors. CRM (Customer Relationship Management), loyalty programs and corporate data responsibility are some of the key focus areas today.Keywords: Omnichannel retail, consumer shopping behavior, big data, analytics, ROI, CRM What is big data?

Big data is the label provided to extreme forms of BI systems that are constrained by increased frequency of data capture combined with ever increasing touch points in the market. The new channels of distribution contributes to the complexity on the variety dimension. -647702224405Figure SEQ Figure \* ARABIC 1-Hadoop representation of big data [1] 00Figure SEQ Figure \* ARABIC 1-Hadoop representation of big data [1] 93344-698400

Retailers handle huge volumes of structured and unstructured data. This is inherent nature of the industry which is transaction intensive. Data from various touch points are collected and stored in Hadoop clusters (or any other storage systems) [1]. Through technologies like Hive, special big data analysts help in generating innumerous insights. The need for such analyst capable of combining industry expertise with technological acumen are in need. Firms that are looking forward to gaining competitive advantage through big data are already focusing on some the big data functionalities through hiring analysts in large numbers. Ability of correlate sensibly and

Figure SEQ Figure \* ARABIC 2- Big data functional view arrive at insights is the key capability expected from such analysts. McKinsey’s CMAC (Consumers Marketing Analytics Center) for example has a team that provides consulting and tools that can enable firms to generate actionable insights. Retailers according to various commentaries and discussion in the big data retail forum summits, have been focusing more on the areas of CRM, loyalty for value creation to retain customers. Traditional Business intelligence and big data

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Traditional BI has been focusing on operations, consumer expectation, mismatch around value perceptions and competition as the key areas for optimization [1]. The dimensions that big data brings in include the...

References: Big data – Calculating ROI consumer experience across all retail touch points data uses for retail efficiency using big data in the world of Omnichannel retailing of IBM Retailers survey, originally Published January 13, 2014 on
The dark side of customer analytics : A HBR Case Study
Video Analytics for Retail of information on big data for retail
www.bigdataretailforum.com economy: Finding value in big data research reports
CMAC at McKinsey
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