wipro ris report
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This report outlines the Strategies, Tactics and obstacles to analytics driven technologyTRANSCRIPT
Analytics-Driven Retailing:Better Insights, Decisions and
Results
A Joint RIS News and Wipro Research
© 2011 Wipro Ltd - Confidential
A Joint RIS News and Wipro Research
Agenda
3
1 Key Findings
2 Strategies and Tactics
Obstacles to analytics-driven retailing
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3
4 Analytics IT Budget
Obstacles to analytics-driven retailing
5 Customer Takeaways
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Key Findings
• Analytics investments are growing steadily over the last three years
Growth in analytics investments
• Performance analytics and customer analytics are maturing
Analytics priorities
Where is analytics-driven retailing headed? Key findings from a survey research conducted by Wipro and
Retail Info Systems(RIS) News
““““Predicting the futureduring these uncertain times has been a very difficult and risky task. ….Leading companies using analytics and
Expert Speak
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maturing• Predictive analytics adoption is low – investments expected to grow over the next two years
• Improved margins, higher customer satisfaction, better forecasting & planning and improved customer retention are some of the objectives that retailers believe analytics will meet
Analytics strategies and goals
• Training users and establishing a business case for analytics are the top obstacles for analytics-driven retailing
Obstacles to analytics-driven retailing
companies using analytics and leveraging “Big Data” today,
will outperform their peers tomorrow””””Bhanumurthy B. M., Senior Vice President, Retail, CPG, Transportation & Government,Wipro Technologies
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Strategies and Tactics
Strategies and tactics – How equipped are retailers?
50.0%
6.3%
43.5%
10.5%
16.1%
6.5%
Up-to-date tech in place
Plan to update in 2012
Status of Analytics Solutions
• Adoption rates comparable : 74.8% - 84.4% have updated tech or are in the process of doing so • Future investment plans low
Performance analytics customer analytics
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34.4%
10.5%
31.3%
12.5%
3.1%
29.0%
25.8%
22.6%
Updating now
Will begin by the end of the year
No plans
Predictive analytics Customer Analytics Performance Analytics
• Respondents with up-to-date technology in place and those who are in the process of updating is considerably lower than the other two disciplines• A much greater priority than the other two in the coming years
Predictive analytics
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
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A sluggish economy
Increasing reliance on existing customer base
A robust analytics engine to find new opportunities by digging intocustomer segmentation, loyalty program patterns, pricing
triggers and competitive forces
Tracking and analyzing customer satisfaction, customer loyalty and customer experience in a scientific way and analyzing them over time
Tactical ways analytics can help
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Better forecasting and planning accuracy
• Powerful analytical engines that look at historical data, market forces, weather, holidays and other factors help improve the accuracy of forecasting and planning and therefore have a significant impact on the performance of the entire organization
Improved retention
• Sales from the existing customer base can be maximized by analyzing data collected through loyalty programs
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Obstacles to analytics-driven retailing
Obstacles to analytics-driven retailing
32.3%
38.7%
48.4%
54.8%
58.1%
Hard return on investment
Push from top leadership
Adding/hiring necessary skill sets
Change in overall corporate mindset
Training of power users
35.5%
35.5%
48.4%
51.6%
54.8%
Established best practices
Retailer success stories
Clear pathway to benfits
Clear roadmap to deployment
Reliable return on investment
Internal obstacles External obstacles
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New users of analytical tools at times tend to change 100% of the suggested recommendations every time they use it
Training and changing the corporate culture and other items on the obstacles chart, such as adding/hiring necessary skill sets and getting a push from top leadership essential to counter primary obstacles
32.3%
32.3%
Pull from department heads
Hard return on investment
29.0%
32.3%
Experienced external service providers
Mature software tools
ROI is an issue for every IT solution, but it is more critical for analytics tools because they do not perform core retail functions and instead layer on top of current solutions
Creating a concrete deployment plan that eliminates Creating a concrete deployment plan that eliminates risk, reduces disruption and ensures success is essential to CIOs not well-versed with advanced analytical engines
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Analytics IT Budget
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
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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 respondents
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
Performance analytics 7.1
Predictive analytics 6.7
Retailers still need some convincing that predictive analytics is right for their organizations
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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 merchandising
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Customer Takeaways
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
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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 results
To read the complete report please visit the link belowhttp://www.wipro.com/datadocs/insights/whitepaper/ris_wipro_wp_0811_F_lr.pdf
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http://www.wipro.com/datadocs/insights/whitepaper/ris_wipro_wp_0811_F_lr.pdf
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.
About Wipro Council of Industry Research
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strategies.
For more information on the Research Council visit www.wipro.com/insightsor mail [email protected]
WiproTechnologies, 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
About Wipro Technologies
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