In January 2006, The Harvard Business Review published “Competing on Analytics” by Thomas H. Davenport. In this seminal article, Davenport discusses how applied data is being used to transform the customer experience.
Baseball’s great accidental philosopher Yogi Berra once said, “If you don’t know where you are going, you might wind up someplace else.” In the retail business, knowing where you’re going means understanding sales, inventory, promotions, pricing, and assortment.
Analytics, the use of computer models to produce insight for decision making, is increasingly the key to competitive advantage in grocery retail. In this new world, data is the fuel that powers the engines of data science. How can consumer goods suppliers and retailers identify and use data to produce business insight?
70% of organizations not yet leveraging this retail 'revolution'
There’s been plenty of buzz about big data: the analysis of information that is too large to store on a single computer. MIT’s Sloan Management Review calls big data analytics a “mandate.” Five years ago a McKinsey article referred to big data as “the next frontier for innovation and competition,” and Kroger Chairman David Dillon referred to data analytics as the retailer's “secret weapon.” Big data has been hailed as a revolution, yet 70 percent of organizations are not using big data at all. What gives?
When asked recently if we really felt that the cloud could help retailers realize the potential of advanced analytics, we were able to answer without hesitation that it will be a game changer.
The Gartner Group’s August 2013 Retail Forecasting and Replenishment Vendor Guide found that retailers’ ability to use demand forecasts still falls way short of the potential value, especially around forecasting demand for new items and promotions.