Business Intelligence And Analytics In Retail Industry
Data is what you need to do analytics. Information is what you need to do business.
By SAROSH SYED
In today’s world, Data plays an important role in how we do business, more and more data driven companies are coming up the block. To get some insights how data works, we look into the structure of Business intelligence and how YOU can take advantages of your own data.
The Main strength of a company lies with its people and its data! Business intelligence enables companies to empower their people using the data at hand. Knowledge is power, and proper usage of data is the most significant internal revolution that a company can make!
The significance of retail sector in Pakistan’s economy can be gauged from the data published by Pakistan Bureau of Statistics according to which, retail and wholesale sector worth in PKR 4.36 trillion, Representing around 18.2% of GDP in 2013-14. (STAT CHECK)
Organizations must have the capacity to change their plans of action so they can gather constant business data and drive the proficiency of their everyday operations by usage of BI and data analytics methods.
Business Intelligence is where you assemble various data to such extent that it can be used as a reference for saving inventory costs to gaining higher profit margins. BI today is a technology- driven process which collects and assembles data, making it accessible and ready for analysis.
However, with the addition to BI, we have Smart data intelligence which comprises of organizing and analyzing data for future predictions and to expand your business.
How it works in retail?
With Brick and mortar supermarkets, Data Analytics can play a major role in buying and selling goods. With using BI, a company can figure out which products are selling when and what margins, when is product X is going to run out? How you can predict your demand and prepare for the next bulk buy? How these modern supermarkets can optimize their inventory which saves them tons of money, BI also helps incredibly in supply chain management and planning.
Apart from the advantages used above, the markets can even use BI and data analytics can promote different schemes and offers, for example, the companies can make use of bundling by narrowing the products which are most likely to be purchased together. If sales are down for a particular product, these products can then be sold with a scheme of ‘buy 1 get 1 for 50% off’.
For retailers, an Insight-driven approach will increase their chances of success and gain competitive advantage over their competitors. By Using BI & data analytics, Retail can dream of reaching the ultimate goal or which can be described as the Promised Land.