Transcript of "The Case for Big Data and Analytics in Retail: Unlocking Hidden Opportunities, by IDC Retail Insights "
Big Data and Analytics in Retail: Unlocking Hidden Opportunities WHITE PAPER Sponsored by: HP G re g G ir ar d S ep tem b er 2 01 2www.idc-ri.com IDC RETAIL INSIGHTS OPINION The new information economy — increasingly digital and intelligent — defines the terms of reference for retail today, and within this milieu, mastering Big Data has become a cornerstone for success.F.508.988.7881 Mastering the four dimensions of Big Data — social, channel/customer, market, and supplier/product — for actionable and monetized insight requires newfound technical, organizational, process, and decision management frameworks to handle three challenging Vs of Big Data and analytics — volume, velocity, andP.508.935.4400 variety — in order to deliver the other V — value. Value from Big Data and analytics can come from three sources — gaining insight to improve processes and resource allocation, personalizing and localizing offers, and creating community as the nexusGlobal Headquarters: 5 Speen Street Framingham, MA 01701 USA for branding and customer engagement. Extracting value economically from Big Data requires a new generation of technologies and architectures — shared information ecosystems designed to enable the high-velocity capture, discovery, analysis, and application of insights. Several analytical underpinnings of value creation are clearly evident, including context-aware and pattern-based analytics, quantitative natural language processing and social network analysis, and the extension of retail data models beyond conventional enterprise entities and ontologies. Applying these insights to control and optimize operations, tactics, and strategies may require new business processes, decision management frameworks, and roles and organizational constructs. Opportunities to apply Big Data analytical insight reach deep into digital or social marketing or customer insight — the organizations where these efforts often originate — but just as important and likely more important, these opportunities extend into brand management and marketing, merchandising, product management, localization, pricing, fulfillment, and all channels of commerce. What do the dimensions of "big," "fast," and "varied" mean with respect to the opportunities to create value from Big Data and analytics in your business? Accurately evaluating competitive and market scenarios that impact your Big Data and analytics business case calculus requires the strategic and tactical points of view of line-of-business leadership. Dont September 2012, IDC Retail Insights #GRI237012