At Cisco Live! Melbourne, I was invited to speak at the Executive Symposium to nearly 100 of Cisco’s top customers in the Australia and New Zealand region. In my talk, Gaining Insight from the Big Data Avalanche, I covered big data business opportunities and technology challenges.
To level set at the start, I opened with a definition of big data, including the typical velocity, volume, and variety seem to be the three V’s everyone hears when it comes to big data. But then I challenged the audience to consider the fourth and in fact most important V, holding back on identifying it so the audience could consider what was missing.
After an appropriate pause, I told them the most important V was value. Value is the only reason to work on big data. This value must be seen in better business outcomes such as:
Higher Customer Profitability
Faster Time to Market
Improved Risk Management
Greater Business & IT Agility
It is interesting how people get knocked off guard by the big data buzzwords. So go back to the basics. Start by getting your business case in order. Once the value to the business is understood, juggling higher data velocity, volume and/or variety becomes an engineering problem. Certainly, a new class of engineering problem, requiring new technologies and skills, but it is a fully solvable engineering problem nonetheless.
For IT, big data is as much an organizational change challenge, as a technology challenge. Practical first steps that seem to work well include:
Experiment with a smaller, “SWOT” team on a selected set of projects. This is a great way to introduce something new.
Go for some quick and easy wins, rather than boiling the ocean with large-scale initiatives. That is a proven technique for gaining momentum.
Implement a solution with revenue impact, such a next-best offer analytic to improve upsell performance or a predictive churn analytic that helps reduce customer defection. These high visibility projects will ease business funding challenges and improve executive visibility / sponsorship.
The buzz in retail these days is “omnichannel” – we see slogans such as “Engage with Today’s Omnichannel Consumers,” “Develop Your Omnichannel Business” frequently. Cisco itself uses this word often. But in all honesty, I don’t think many people fully grasp the concept and its potential. And I don’t know of any retailer that has a complete approach to it. That’s right: None.
Omnichannel retailing is about opening the store, its products, and services to shoppers in an immersive way that drives customer interaction across any point of access, at any time. “Omnichannel” is not just about connecting existing systems, it’s a transformational way to look at how you conduct business.
Becoming an omnichannel retailer is a broad undertaking, and many retailers are creating new executive positions to lead this strategy. However, I think these companies may be missing the boat. When thinking about omnichannel strategies, consider three key points:
First, a customer-centric strategy cuts across all organizations in the business – it can’t be sidelined into one business function such as IT. I often consult with retailers who experiment with different capabilities in a disconnected way; essentially, they throw technologies at the wall and wait to see what sticks. Instead, why not start by asking, “What does my customer want? How can I build a loyal relationship with them?” It’s all too easy to assume that showrooming is the enemy. But, really, why, for example, is Amazon successful? It’s not because they are available on a mobile phone. It’s because they are easy to do business with, offer good pricing, and deliver quickly. It’s about the way they address customer needs.
Next, I think stores often try to do too much at once (see wall-sticking, above). Instead, I recommend a phased approach that starts with the low-hanging fruit – projects that have the highest probability of effectiveness and can be measured against business targets as a whole. Every store has its niche, and one size does not fit all. By achieving rapid successes up front, retailers gain funding for the next piece of the strategy, building from success to success.
Finally, accept the fact that an omnichannel business will change how people work. Are you avoiding Internet access because you think associates will waste time surfing the web? Some may – but your good salespeople will be able to leverage online information to help them serve shoppers. Concerned that showrooming on the floor will drive customers away as they find lower prices online? Build your own identity, brand, and incentives into the online environment to drive sales. Worried that an online storefront or call center will undercut in-store sales? Run the numbers on losses over time as consumers find your store is the only one without convenient mobile customer support.
Omnichannel is not about the technology. Rather, it’s about finding the best outcome for you and your shoppers. To achieve success, IT and business must work together to solve customer problems for the store as a whole – there’s no other way to do it with complete success. Check out this great blog by Cara Waters, Five Lessons in Retail Trends.
I love retail trivia! Comment below if you know the answer to this question: What is the oldest US retail company?