June 2012 A New Retail Paradigm: Solving Big Data to Enhance Real-Time RetailingData from Aberdeen’s October 2011 report, Business Intelligence Analyst InsightEnhancements in Retail, indicates that for 62% of retailers, escalating big data- Aberdeen’s Insights provide therelated complexities within their enterprises makes day-to-day decision- analysts perspective on themaking and creating a single view of the product and customer an arduous research as drawn from antask. The problem is not just data aggregation but also lack of real-time aggregated view of researchaccess to customer and business information. This impedes customer- surveys, interviews, andcentricity and business process continuity. Another roadblock for retailers data analysisis also the volume, sources, complexity, and velocity of data. Aberdeens Big Data in Retail Definedlatest April 2012 survey of 50 retail enterprises shows that 70% of retailers Big data in retail and consumerare currently grappling with, on average, at least eight disparate sources of markets refers to the overallbusiness and customer data (both structured and un-structured) within their size or extent of active data anorganization. Such data variability fluctuates quite a bit due to seasonality, organization stores, as well asnumber of Stock Keeping Units (SKUs), and types of customers. the size of the data sets it uses for its business intelligence andThe collection and analysis of customer and business data, from its raw form analysis. Big data is also used toof analytical data to its polished form of predictive Business Intelligence (BI) describe the commonhelps to increase precision and real-time retailing. This includes: product difficulties associated with thisinnovation, supply chain, pricing, customer engagement, promotions and active data: size or extentmarketing, and other value chain areas. The benefits associated with real- (storing and accessing the data),time and precision retailing can be realized at every stage of the cross- speed (how fast the data mustchannel retail lifecycle - from product design stage to customer fulfillment, be captured, processed,and loyalty creation. This Analyst Insight addresses the aforementioned analyzed and delivered), complexity (the sophisticationcomplexities and benefits, and identifies a best practices roadmap that and level of detail in the dataenables companies to apply big data initiatives for real-time customer analysis), and types (theengagement and agile operations. Four main issues are also addressed: number of different formats the • Cross-channel impact of big data data takes). • Consumer pressures and organizational challenges surrounding big data • Capabilities and enablers to tame big customer and business data • Actionable recommendations for overcoming big data complexitiesThe Cross-Channel Impact of Big DataFor todays consumer, who has multi-faceted channel and shoppingpreferences, retailers need to be prepared at all times to provide one viewof the customer and product across all channels. However, this has notbeen easy for a majority of retailers. The need for addressing big data is aThis document is the result of primary research performed by Aberdeen Group. Aberdeen Groups methodologies provide for objective fact-based research andrepresent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc.and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc.