Monday, 29 July 2013

Big Data Recommendation Engine in Retail Industry


Each e-commerce industry is focusing on more use of big data these days to improvise operational efficiency and performance especially in the retail industry even before the term big data existed. Walmart is moving on the same path and understood that by reaping the power of data, it could really streamline as well as consolidate its critical supply chain management to take benefit of economies of scale and robustness, making a restriction on extra inventory costs and its related costs to be incurred upon. It basically passed some of these enabled savings on big data to users in the form of lower prices that in few cases excavated and undermined the retailer’s competition. Well, this was the scenario of early 2000s. After this, retailers have started making use of innovation and creativity in data to deliver not only value added solutions in their offerings but also that could be advantageous for both customers as well as the bottom line users. As compared to other advanced and innovative retailers available at online platform helping users in buying and selling and suggesting them recommendations to them, Amazon is the one that in mid 2000s started using what it actually knew about its users buying preferences and behavior to recommend similar stuff and related things to clients at the checkout point of time.
In today’s challenging and competitive world, big data recommendation engines and data driven supply chain optimization are like the table perils and sticks for most of the retailers. And in last few years, forward thinking and moving retailers endeavor to holocaust an innovative path especially in big data. Based on the chats and conversations conducted with number of retailers and members of Wikibon community and other users, the following big data recommendation applications have been identified amongst the more promising, successful and innovative methods must used mentioned in below.

1.       Dynamic price optimization – Retailers are making use of big data backend techniques and approaches to dynamically price up goods and services at both online as well as offline stores. In its most advanced form, dynamic optimization keeps into consideration umpteen numbers of data streams including supply chain, competitor pricing, inventory data, consumer behavior data and market data to fix and compensate on prices to optimize sales and profits, enhance profit margin along with meeting up with other strategic aims and objectives.
2.       Video enabled product placement analysis and store layout – In order to drive high conversion rates, a bunch of retailers have started examining and thinking about video data, not only the associated metadata with videos but also the content of the video to enhance and make it better in terms of store layout, promotional displays and product displacement criteria’s. In fact, according to a survey, the retailers who are using video to analyze and understand the video data are actually trying to grab attention of a large base of customers not affecting the actual significant sales.
3.       Decision support and staffing analysis – Both national as well as multinational retailers with diversified and geographically spread and scattered workforces usually have long struggled and optimized in-store staffing services. There are many factors that affect staffing prerequisites and needs including promotional campaigns, weather forecasts and time of a particular month, year, week or day. These days, retailers are examining and evaluating data associated with other factors to assure stores are optimally staffed and casted.

Adding more to the point, retailers are using a wide variety of technologies and methods to support big data applications involving usually Hadoop, enterprise data warehouses, immensely parallel analytic databases, data visualization tools and many others. As a conclusion, bigger retailers who have started using 
big data recommendation engine technology to consolidate and streamline operations, examine marketing campaigns, improvise and enhance customer experience, boost sales and optimize profitability to put plans immediately. As stated, the retail industry is like the early innovative users as well as adopters of big data driving those vendors who haven’t even started harnessing data for their own benefits are farther behind dawdlers and slow starters in other industries. In all, retail CIOs at this peak of time should not at all waste their time in bringing together business stakeholders and IT people to lay out a bigger big data vision for the practical and enterprise plans to deploy them. And, the few reckoned leaders offering in the same arena are 
IB Technology, Wipro, Persistent, Polaris, Nucleus, R Systems, Global Logic, Infosys, TCS and Cognizant.


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