Surfing the Data Deluge
Using Big Data To Increase
Store Profitability
Paul R. Schottmiller
Sr. Principal, Global Retail and Consumer Products
Internet Business Solutions Group (IBSG), Cisco Systems
December 2012
For more info:http://cs.co/ibsg-bigdataretail
@RetailForesight, @CiscoIBSG
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 1

Big Data is More Than “Big”
“Big data” refers to datasets whose size is beyond the ability of typical
database software tools to capture, store, manage, and analyze.
VOLUME
VALUE VELOCITY
VARIETY
McKinsey Global Institute 5/2011
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 2

Big Data Will Change the Relationship
Between the Retailer and the Customer
New Models For Success
Transformation
Performance
Disruption
Big Data
What should I sell? Closer to the Market
Granularity
Where should I Closer to the
deploy inventory? Timeliness Customer’s location
When should I Closer to the point of
deploy inventory? Relevance need
How much should I Closer to the
charge? Impact Customer’s value
triggers
Source: Cisco IBSG, 2012
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 3

Initial Big Data Areas with
a Wealth of Insight for Retailers
VIDEO SOCIAL MOBILE/LOCAL
Identity
Identity Identity
Demographics
Location
Demographics Family, Friends,
Influencers Activities
Biometrics Activities, Interests Behavior
Likes, Dislikes Internet Activity
Behaviors Socio-economic Basket
Indicators
Source: Cisco IBSG, 2012
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 4

Big Data Will Transform TheStore
Gesture
Recognition WiFi
Video
Digital Surveillance
Signage
Wisdom from
the Cloud
Associate
Mobile Customer
Mobile
Internet of
Everything
eCommerce &
Semantic Web
Filtering Fog Platform Recognition Local Rules
Business Systems
Central Compute Big Data Fast Data
Platform Repository Processing
Action Enablement
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 5

Big Data in Action:
High-Touch Customer Service
As Jan browses near the toy section,
LBS tracks her mobile-device location.
Big Data correlates with a calendar
event for her niece’s birthday and her
niece’s social media activity to offer a
toy promotion.
Jan browses to the toy, but video
analytics detect uncertainty in her
body language.
Autonomic Identity Fog Transcoding Big Data sends an associate to help.
Filtering Response Computing QoS LBS
Jan buys the toy, and the entire
episode is recorded and analyzed.
Action Collaboration -Human-Human -Human-Machine -Machine-Machine
Merchandisers review & update
Security & Data Integrity
promotions to preempt concerns.
UI -Multi-touch Surfaces -Heads Up Visualization Integration & Automation
-Contactless Gesture -Wand -3D -Animation -EAI -BPM -Workflow
Media Processing Intelligence Extraction
Analysis -Video analysis -Data Mining -Machine Learning
-STT, NLP & Semantics -Rules Engines
Storage Compute
Infrastructure -NoSQL -Unstructured -Distributed / Grid
-Semi-structured -In-memory -Multicore -Multiprocessor
Mesh
Corporate Apps & Data Event Streams Rich Media Cloud
Source: Cisco IBSG, 2012
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 6

Big Data in Action:
Front-End Optimization
The parking lot of a supermarket is
filling quickly.
The number of available hand
baskets is low.
Milk begins leaving the refrigerator
section faster than usual.
The count of items in push carts is
trending above average.
Autonomic Identity Fog Transcoding
Filtering Response Computing QoS LBS Big Data sends two additional
associates to the front, just in time
Action Collaboration -Human-Human -Human-Machine -Machine-Machine
to avert buildup of lines.
Security & Data Integrity
Store operations analyzes data
UI -Multi-touch Surfaces -Heads Up Visualization Integration & Automation and refines staffing models.
-Contactless Gesture -Wand -3D -Animation -EAI -BPM -Workflow
Media Processing Intelligence Extraction
Analysis -Video analysis -Data Mining -Machine Learning
-STT, NLP & Semantics -Rules Engines
Storage Compute
Infrastructure -NoSQL -Unstructured -Distributed / Grid
-Semi-structured -In-memory -Multicore -Multiprocessor
Mesh
Corporate Apps & Data Event Streams Rich Media Cloud
Source: Cisco IBSG, 2012
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 7

Building Big Data Solutions Requires An
Iterative Pilot Approach
Cisco’s FastRetailTM Approach
Identify Pilot Use Cases
Opportunities
Develop
Assess Readiness Sense/Analyze/Res
pond Solutions
Build Architectures
Scale Architectures
Deploy Capabilities and Solutions
Develop Insights Achieve Value
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 8

Join The Retail Big Data Innovation
Conversation!
For more information:
http://cs.co/ibsg-bigdataretail
@RetailForesight
@CiscoIBSG
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 9