Leveraging Big Data for Big Decisions
Retailers that have begun to dig into the intricacies of Big Data understand that it’s defined by Volume, Variety and Velocity, but they’re most interested in unlocking its fourth “V”: Value. They want to learn what Big Data-fueled insights can tell them about their most basic business questions (merchandising, pricing and workforce), and also get the answers to the new, often perplexing questions posed by empowered, mobile-enabled consumers and omnichannel retailing. Predictive analytics will be critical to digging out the diamonds in the Big Data mine, and retailers are ahead of other businesses in at least one respect: they’re already accustomed to dealing with huge volumes of data from their experience with barcodes and e-commerce. Mastering the expanding Variety of new data types and the Velocity at which they need to collect, analyze and use Big Data will be critical to leveraging its tremendous – and to a great extent still untapped – Value.
‘Moneyball’ Comes to Retail
How identifying and actualizing profit opportunities creates big benefits
Retailers are accustomed to using subjective methods, traditional business intelligence and legacy exception-based reporting technology to monitor the areas where profitability leaks are likely to occur. Analogous to the Oakland A’s, retailers who use Profitect now have a way to “change the game” as well.
Profit Amplification: An Opportunity Now at Hand
Profit leakage in the retail industry is a persistent, pernicious problem. IDC Retail Insights defines it as profits lost from one type of breach or another in the “pipeline” of people, process, and systems involved in the flow of goods and information from suppliers to customers and back. While profitability is at the forefront of system and process improvements, the integrity of the pipeline that delivers profitability to the bottom line isn’t always given the same attention. Pipeline integrity depends on “excellence in the ordinary.”
Profitect’s Profit Amplification Application: Aims to Plug Retail Profitability Gaps
Profitect has completed its first year of U.S. operations. This software provider specializes in detecting and preventing both known and unknown inventory and non-inventory losses for retailers. Positioned as a retail ‘profit amplification or optimization’ tool, Profitect’s application analyzes various sources of retail data, including transactional data, detects different types of margin gaps / loss areas in different departments, and recommends actions for retailers to fill these gaps. This Analyst Insight assess Profitect’s product positioning and possible market impact in light of Aberdeen’s research into best practices in the retail industry.