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This report outlines the Strategies, Tactics and obstacles to analytics driven technology

This report outlines the Strategies, Tactics and obstacles to analytics driven technology

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Wipro RIS report Wipro RIS report Presentation Transcript

  • Analytics-Driven Retailing: Better Insights, Decisions and Results A Joint RIS News and Wipro Research© 2011 Wipro Ltd - Confidential
  • Agenda 1 Key Findings 2 Strategies and Tactics 3 Obstacles to analytics-driven retailing 4 Analytics IT Budget 5 Customer Takeaways2 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • Key Findings3 © 2011 Wipro Ltd - Confidential
  • Where is analytics-driven retailing headed? Key findings from a survey research conducted by Wipro and Retail Info Systems(RIS) News Growth in analytics investments Expert Speak • Analytics investments are growing steadily over the last three years “Predicting the future Analytics priorities during these uncertain times has been a • Performance analytics and customer analytics are very difficult and risky task. ….Leading maturing • Predictive analytics adoption is low – investments companies using analytics and expected to grow over the next two years leveraging “Big Data” today, Analytics strategies and goals will outperform their peers tomorrow” • Improved margins, higher customer satisfaction, better Bhanumurthy B. M., Senior Vice forecasting & planning and improved customer retention are some of the objectives that retailers believe analytics President, Retail, CPG,Transportation & will meet Government, Wipro Technologies Obstacles to analytics-driven retailing • Training users and establishing a business case for analytics are the top obstacles for analytics-driven retailing4 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • Strategies and Tactics5 © 2011 Wipro Ltd - Confidential
  • Strategies and tactics – How equipped are retailers? Status of Analytics Solutions Performance 6.5% analytics customer Plan to update in 2012 10.5% analytics 6.3% • Adoption rates comparable : 16.1% 74.8% - 84.4% have updated Up-to-date tech in place 43.5% tech or are in the process 50.0% of doing so • Future investment plans low 22.6% No plans 3.1% Predictive analytics Will begin by the end of 25.8% 12.5% • Respondents with up-to- the year date technology in place and 10.5% those who are in the process of updating is 29.0% considerably lower than the Updating now 31.3% 34.4% other two disciplines • A much greater priority than the other two in the Predictive analytics Customer Analytics Performance Analytics coming years6 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • Meeting strategic objectives using analytics Top two strategies focus on high-level objectives Maintain or increase margins by performing pricing lifecycle analysis Determining how adjustments in initial pricing and scheduled markdowns will impact sales Tracking and analyzing customer satisfaction, customer loyalty and customer experience in a scientific way and analyzing them over time Increasing A robust analytics engine to find reliance on new opportunities by digging into A sluggish existing customer segmentation, loyalty economy customer program patterns, pricing base triggers and competitive forces7 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • Tactical ways analytics can help Better forecasting and planning Improved retention accuracy • Powerful analytical engines that look at • Sales from the existing customer base can historical data, market forces, weather, be maximized by analyzing data collected holidays and other factors help improve the through loyalty programs accuracy of forecasting and planning and therefore have a significant impact on the performance of the entire organization8 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • Obstacles to analytics-driven retailing9 © 2011 Wipro Ltd - Confidential
  • Obstacles to analytics-driven retailing Internal obstacles External obstacles Training of power users 58.1% Reliable return on investment 54.8% Change in overall corporate Clear roadmap to 54.8% deployment 51.6% mindset Adding/hiring necessary skill 48.4% Clear pathway to benfits 48.4% sets Retailer success stories 35.5% Push from top leadership 38.7% Established best practices 35.5% Hard return on investment 32.3% Mature software tools 32.3% Pull from department heads 32.3% Experienced external service providers 29.0% New users of analytical tools at times tend to change ROI is an issue for every IT solution, but it is more 100% of the suggested recommendations every time critical for analytics tools because they do not perform they use it core retail functions and instead layer on top of current solutions Training and changing the corporate culture and other items on the obstacles chart, such as Creating a concrete deployment plan that eliminates adding/hiring necessary skill sets and getting a push risk, reduces disruption and ensures success is essential from top leadership essential to counter primary to CIOs not well-versed with advanced analytical obstacles engines10 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • Analytics IT Budget11 © 2011 Wipro Ltd - Confidential
  • Analytics IT budget – How are investments growing? Over the last three years, analytics budgets have increased for 60% of retailers The same percentage (60%+) holds for those who increased their IT budgets for analytics over the last two years and over 2010 Retailers who increased their analytics budgets by greater than 10% segment form the largest group of respondents12 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • Analytics IT budget – Where are investments headed? Ranking investment priorities over the next 18 months on a scale of 1 – 10 ( Lowest to Highest) Customer analytics 8.1 Retailers still need some convincing that predictive Performance analytics 7.1 analytics is right for their Predictive analytics 6.7 organizations Performance analytics is viewed as being a critical component of all departments we tracked, with the exception of marketing Customer analytics is viewed as being critical to marketing (93.3%) to the virtual exclusion of all other departments Predictive analytics is still an emerging force in retailing and the departments that stand to benefit most from the discipline are sales, C- level, purchasing, financial and merchandising13 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • Customer Takeaways14 © 2011 Wipro Ltd - Confidential
  • The way ahead for retailers Create an integrated framework that employs quantitative methods to derive actionable insights from data, and then uses those insights to shape business decisions to improve outcomes Demonstrate a commitment to change through top-level leadership Break down silos that stifle multi-department collaboration Develop key talent to shift the organization to a more fact based culture Simply adding technology solutions on top of existing processes and culture will not produce the best results. Building a robust analytical ecosystem is essential to get desired results15 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • To read the complete report please visit the link below http://www.wipro.com/datadocs/insights/whitepaper/ris_wipro_wp_0811_F_lr.pdf16 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • About Wipro Council of Industry Research Wipro set up the Council for Industry Research, comprised of domain and technology experts from the organization, to address the needs of customers. It specifically surveys innovative strategies that will help customers gain competitive advantage in the market. The Council, in collaboration with leading academic institutions and industry bodies, studies market trends to help equip organizations with insights to facilitate their IT and business strategies. For more information on the Research Council visit www.wipro.com/insights or mail wipro.insights@wipro.com17 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • About Wipro Technologies Wipro Technologies, the global IT business of Wipro Limited (NYSE:WIT) is a leading Information Technology, Consulting and Outsourcing company, that delivers solutions to enable its clients do business better. Wipro Technologies delivers winning business outcomes through its deep industry experience and a 360 degree view of “Business through Technology” – helping clients create successful and adaptive businesses. A company recognised globally for its comprehensive portfolio of services, a practitioner’s approach to delivering innovation and an organization wide commitment to sustainability,Wipro Technologies has over120,000 employees and clients across 54 countries. For more information, please visit www.wipro.com18 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • Thank you© Wipro Limited, 2011. All rights reserved.For more information visit www.wipro.comNo part of this document may be reproduced in whole or in part without the written permission of the authors.Wipro is not liable for any business outcome based on the views presented in this document. For specificimplementation clients should take advise from their client engagement manager. © 2011 Wipro Ltd - Confidential