data-driven decision making and the internet of things in...
TRANSCRIPT
1/28/2016
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Data-driven Decision Making and
The Internet of Things in Retail
Andy Szanger, CDW Steve Brown, Intel
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Intel Confidential – Do Not Forward
Steve Brown, Intel
Intel Confidential – Do Not Forward
Growth of e-com
Cross-channel behavior
Mobile & 10-screen life
Millennials & urbanization
Cybercrime
Top 250 global brands
$4.3TRETAIL
The Mega Market Disruptors 2015-2017 Implications
Old rules no longer apply
2015-2020Implications
The Big Pivot
Data-drivenFast & Frictionless
Omni-channel
4P Commoditization
Redefined Store
Brand Trust
Maturation of Emerging Markets
Aging Populace Shift to Services
Hollowing Out the MiddleSharing Economy
Data-driven
Product = 3.0 services
Affinity the key KPI
Looking ahead: the INSIGHT KINGS WILL WIN
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Intel Confidential – Do Not Forward
An Industry at the Disruptive Edge
Gartner, 2014. US Census Bureau, 2015.
The Futurists and Technologists talk of the “Internet of Things”
4.9 billion things connected to the internet in 2015
~25 billion things connected by 2020
For Retail and Hospitality, The Internet of Things is
about transformative Data-Driven
Decision-Making
Knowing sooner
Deciding smarter
Acting faster
Intel & CDW: Your Translator of the Internet of Things Into Data-Driven
Industry Value
Existing data and new data.New services, new insights
Operations, fulfillment, merchandising and marketing
Shopper Genome
Intel Confidential – Do Not Forward
Case studies in Creating New Value :
Sources: Advertising Age, October 2014; Washington Post, October 2013, Forbes, 2013; MMQB Si.Com, July 2013Other names and brands may be claimed as the property of others.
Analyze the Weather
Lift RevenuesWalmart, The Weather Company
now in 2nd year of “extensive partnership” that unveils weather-to-consumption patterns. Used to guide
advertising, promotions.
Example: berry demand lifts with low winds and temperatures
less than 80⁰ F
Compare E-Com Traffic and Per-Store
Inventory
Better MarketingEstablished a right-time dashboard to guide marketing and advertising
decisions.
Active cross-channel analysis
Analyze Effective Associate Behaviors
Lift RevenuesBrand observed, quantified key
behaviors, value of shopper interaction with store sales
associates.
50% increase in average basket size of “high interaction” shoppers
Analyze Physiological Performance During
Practice
Win More GamesPlaced on backs of US footballers during
practice, a 30-gram device with GPS, magnetometer, accelerometer and
gyroscope.
Also measures eye movement, heart rate and “readiness” for competition
Weather, e-com traffic and associate performance
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Where We Are Today
CDW Retail Innovators Report HighlightsAndy Szanger, CDW
� While 91% of survey respondents say the ability to draw intelligence from data is one of their organization’s top priorities, CDW found critical difference in the 33% who said it was their top priority*
33%
58%
7%
1%
Transforming Data into Information
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It is not a top priority, nor is it on our radar
It is not a top priority, but it is on our radar
It is one of our top three priorities
It is our top priority These are our “Retail Innovators”
*1% of respondents selected “unsure”© CDW 2016 Cite as: “CDW Retail Innovators Report”
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Time is of the Essence
� Retail Innovators are more efficient – but the glass is only 2/3 full
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Can LOB managers always translate data fast enough to make critical
business decisions? (% yes)
More than a day
Within two
hours
More than two hours but less
than a day54%35%
11%
How quickly is your organization able to retrieve business information and get it to
the appropriate managers?
Retail Innovators
Other Respondents
67% 32%
© CDW 2016 Cite as: “CDW Retail Innovators Report”
Greater Intelligence Ahead
� While Retail Innovators have a grasp on historical data and customer segmentation, there are opportunities to improve predictive and prescriptive analytics
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happened, using historical data 71%
WhoWho
WhatWhat
WhereWhere
WhenWhen
made it happen using customer segmentation 54%
the next behavior will occur by creating new opportunities 23%
the next behaviors will happen 34%
When it comes to your organization’s analytic capabilities, what do you know?*
© CDW 2016 Cite as: “CDW Retail Innovators Report” *Retail Innovators asked to select all that apply
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Lack of Foresight
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How are you connecting with and marketing to customers?*
58%49%48%44%42%37%
Prescriptive analytics
Historical data Customer segmentation
analytics
Forecasting/ predictive analytics
Advanced CRM/loyalty programs
Social analytics
� Without prescriptive analytics, Retail Innovators are missing opportunities for customer connections
*Retail Innovators asked to select all that apply© CDW 2016 Cite as: “CDW Retail Innovators Report”
� Despite advantages, Retail Innovators still face challenges when it comes to drawing operational insights. Top frustrations include:*
Where’s My Information?
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Information is outdated by the time it makes it to business managers
Too many information silos
Rely on IT to compile and analyze information
Lack of data availability on mobile devices
Difficulty translating information into actionable insight
Lack of systems to gather information
29%
41%
44%
31%
25%
*Retail Innovators asked to select all that apply
25%
© CDW 2016 Cite as: “CDW Retail Innovators Report”
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Intel Confidential – Do Not Forward
Turning Data Into Retail Value: Intel’s RHCG 35K
Associatetablet
Operationalinsight
DigitalSignage
Today’s Digital Shopper
Business architecture for data-driven retailing
Transactions(T-Log)
Inventory
Pricing
CRM
Big Data
The Traditional Data Sources
etc
Analytics Analytics
Gateway
OpenExternal
Video
Mobile
SensorsRFIDWearables
The New Data Sources
etc
Intel® IOT Platform
Analytics
Manageability and Security
Intel Confidential – Do Not Forward
The High-Level Overview Map for Data-Driven Retailing:
Sources: “Analytics 3.0,” Thomas H. Davenport, Harvard Business Review, December 2013; Intel ESS Retail, 2014Other names and brands may be claimed as the property of others.
From descriptive to preemptiveNumber of Variables
Insight ValueDescriptive Diagnostic Predictive Prescriptive Preemptive
3.0Enriched Offerings1.0
Business Intelligence
2.0Big
Data
Redefined
ProductsStoresRelationships Brands
1950’s – mid-2000’sMid-2000’s to today
Today to Tomorrow
The storevisible asDot.Com
Leading indicatorsof demand
Know theshoppergenome
Most Western RHCG
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Intel Confidential – Do Not Forward
The Value of CDW and Intel in Retail
Wide/Deep Global Solution Ecosystem Devices. Data Center.
Software - all types.
Consulting-Design-Integration services.
Technology and Solution InnovationThe minds of Moore’s Law, focused on Retail.
Creating the future.
New computing models. New business models.
Independent, Vendor-Neutral PerspectiveYour interests come first.
From device selection to integration architecture.
Industry Focus and InsightYears of experience in industry technology and solutions.
BU and sales leaders who’ve been in the business.
An insider’s understanding of where and how value is created.
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Intel Confidential – Do Not Forward 16
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Thank You
Andy Szanger, CDW
Visit CDW at Booth #4253
Steve Power Brown, Intel
Visit Intel at Booth #2543