wipro ris report

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

© 2011 Wipro Ltd - Confidential2 © 2011 Wipro Ltd - Confidential2

3

4 Analytics IT Budget


5 Customer Takeaways

© 2011 Wipro Ltd - Confidential3

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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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.com

Thank you

© 2011 Wipro Ltd - Confidential

© Wipro Limited, 2011. All rights reserved.

For more information visit www.wipro.com

No 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 specific implementation clients should take advise from their client engagement manager.

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