DXC Eclipse White Paper. Retail transformation: How retailers can maximize their data to capture more market share

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1 Retail transformation: How retailers can maximize their data to capture more market share 1

2 Table of contents Smart data solutions 3 How retailers can successfully capture business intelligence 4 Getting the most out of your data with Microsoft cloud-based technology 5 Why work with DXC Eclipse? 6 Why DXC Eclipse? 6 Retail transformation: How retailers can maximize their data to capture more market share Organizations are becoming more data-driven as they realize the importance of analytics when it comes to gaining business insight and being able to make smarter decisions faster than their competitors. Data and analytics sit at the heart of business and digital transformation. According to Gartner, by the end of 2020, the global market for business intelligence (BI) software is forecast to grow to $22.8 billion. Retail organizations are looking for ways to get greater insights from a growing and diverse set of data sources and to create business value through deeper understanding and insight into data. Retailers also have access to more data than ever before, thanks to a rise in digital interactions. For example, a mobile device is now the preferred shopping tool for 34 percent of shoppers and more than half buy items online weekly or monthly. 1 All of this online activity leaves a trail that retailers can follow to discover what customers want. By doing so, retailers can outsmart the competition and increase market share. On one hand, gaining insights from data should be easy, since organizations now have access to more data than ever. Information is flowing from existing internal operational systems, customer-facing systems and external datasets, such as the internet of things (IoT), which can include data from beacons in retail, customer foot traffic, sensors in manufacturing and much more. Social media platforms are also providing in-depth customer sentiment feedback at unprecedented levels of detail and volume. On the other hand, bringing this data together in a way that the business can access, absorb and act on easily poses a challenge exacerbated by the fact that these data sources are siloed and in a state of constant change. To be able to analyze this data in a meaningful way, it needs to be accessible at any time, from any location and in a context that makes sense to the user and to the business. In a nutshell, this means that while organizations have more data than ever, the challenge remains how to extract business insight that will serve their goals. For businesses to be truly data-driven, they must use the information to make predictions that can result in more effective marketing, merchandising and engagement strategies. 1 PwC Total Retail Survey

3 Effective data analytics provides the key to unlocking and realizing true success. By painting a picture of what is likely to happen in the future, organizations can chart an appropriate course to maximize opportunities and efficiencies, while avoiding traps or errors. Effective data analysis provides the key to realize true success. And data analytics can be effective only if all data sources come together to provide a complete view. To make the most of the advantages offered by the increasing volume of data, businesses must put in place a solid data strategy. They should work with a partner that understands the business and can provide strategic input on the right approach and platform to deliver insights that will achieve a sustained competitive advantage. Smart data solutions Microsoft technology, delivered by DXC Eclipse, helps retailers get transformational results from simple tools, making data analytics easy. It is also making it simpler for retailers to act on the insights obtained through the analysis of data. Microsoft Dynamics 365 leverages the power of the Microsoft stack, from enterprise resource planning (ERP), customer relationship management (CRM), Power BI, Cortana Intelligence, Office 365 and PowerApps, such as the Common Data Model. The combination of tools and capabilities allows retailers to manage their entire operations and sales cycles. The Microsoft solution avoids the need for expensive, monolithic, legacy applications that are resource-intensive. Instead, retailers can start small, then add to their solution as appropriate. Retailers need to implement solutions that let them fully leverage data for better insights. 3

4 How retailers can successfully capture business intelligence 1. Conduct a data audit The first step for organizations is to understand what data they already have access to and what data they need access to. This can include everything from social data and online sales to store data, operational and financial data, supply chain data and merchandising data. The data audit process will let retailers see where the gaps and duplicates are, as well as identifying silos. Using different solutions for different operational requirements inevitably results in the formation of silos, which makes it practically impossible for the organization to be positive that everyone is working from the same data. Removing silos results in what is commonly known as a single source of truth, which is crucial for effective decision making. Combining solutions from the Microsoft stack prevents silos, because the solutions integrate tightly with each other, sharing information seamlessly. Microsoft s Common Data Model provides the unified view retailers need. It is an out-of-the-box business database for storing data such as sales, purchase, customer service and productivity. Retailers can then use this to power other Microsoft apps, including ERP and CRM. 2. Choose solutions that simplify data analytics In the past, some retailers have found their data projects stymied by a lack of access to IT and data experts who can extract and analyze the information they need. Even something as seemingly simple as creating management reports and dashboards often required intervention by the IT team. It is far more effective to let business users determine what reports and dashboards they need to be more effective, and automatically serve that information to them. This saves time and resources and helps retailers make sense of data in business terms. Similarly, a solution that offers plug-and-play functionality will deliver faster time to value, allowing retailers to extract insights from data instead of integrating disparate systems. 3. Probe the data Retailers will gain the most value from data when they can understand customer buying trends and behaviors. Consequently, data outputs such as heat maps and store traffic patterns can help retailers make smarter decisions. For example, knowing that customers often spend more time in a certain part of the store can help retailers decide where to place specific merchandise. Using historical data to build a picture of trends can help retailers predict future customer behavior and act accordingly. For example, knowing that more customers ask for umbrellas in April than in any other month means retailers can stock up on umbrellas in April, but let stocks run low in other months because demand is not likely to be as high. This can reduce the substantial costs associated with carrying stock for long periods. 4

5 4. Choose a retail-specific solution Using the power of the Common Data Model, retailers can bring all their data together in one place, then overlay DXC Action Analytics, based on Microsoft Power BI, to get exactly the information they need. Getting the most out of your data with Microsoft cloud-based technology The challenge for organizations is no longer collecting or accessing the raw data but, rather, aggregating and analyzing it to provide effective and actionable insights, instead of just interesting information. Within any organization, there will be many people in different roles who need access to data and analytics. Groups of users, from business users and analysts to data scientists, need to be able to work together. As a result, it is no longer adequate to have complex, monolithic analysis tools and projects. Instead, businesses looking to achieve real value from their data need solutions that are unified, enable collaboration and provide fast, simple access. The challenge for organizations is no longer collecting or accessing the raw data but, rather, aggregating and analyzing it to provide effective and actionable insights, instead of just interesting information. As a result, cloud has emerged as the platform of choice for organizations that want to turn their data into business insights that can be acted upon in the short term to deliver measurable improvements. Next-generation, cloud-based platforms offer the biggest benefits when it comes to avoiding massive expenses associated with data collection and analysis. Cloud solutions let organizations handle a diverse range of data sources at scale, which makes it cost effective and less risky. The extensibility of cloud makes it possible for organizations to scale up to access the computational power needed for data analysis projects without investing heavily in on-premises infrastructure that may not be needed beyond that project. Cloud-based platforms are faster to implement and easier to change. They allow for collaboration anywhere and anytime, cost less because no hardware is required, and are always up to date. They are also highly secure. Using the cloud makes it easier to integrate a range of data sources and create a single, unified view of the information. All analytics can be based on this solid data foundation, ensuring that the company is using the broadest, most accurate and upto-date dataset for every project. This ensures consistency and accuracy of results. To turn results into business benefits, organizations depend on decision makers to understand and interpret the results correctly. Microsoft has created a solution to this challenge. Power BI for Office 365 works with Dynamics 365 to provide a self-service analytics solution. It takes raw data and, instead of creating a series of reports with groupings and summations, creates visual representations that immediately convey meaning. This lets managers, who might not have much experience in data analysis, dive into the data themselves, getting more information and insight than would otherwise be possible, in near-real time. 5

6 DXC Eclipse has developed a next-generation BI and analytics solution that combines Microsoft Azure Machine Learning solutions with Power BI models, reports, dashboards and insights. DXC Action Analytics packages industry best-practice metrics and customizable dashboards to give near-real-time insight to decision makers. DXC Action Analytics is built for simplicity, so decision makers can answer the right questions at the right time. Why work with DXC Eclipse? Moving to Microsoft Dynamics 365 requires careful planning to get maximum benefits with minimal risk. Businesses need to ensure that the move is seamless, successful and nondisruptive. In a challenging economic and competitive environment, organizations need the right infrastructure and technology in place to help them work smarter and pivot easily to meet customer demand. It is vital to future-proof businesses through digital transformation. Implementing the best technology with the right partner puts businesses in the ideal position to outperform and outmaneuver the competition. Why DXC Eclipse? DXC Eclipse, a practice within DXC Technology, helps enterprise and mid-market companies accelerate digital transformation, solve business challenges and deliver intelligent solutions that make a difference for clients, employees and partners. We believe in delivering expertise, project transparency and excellent customer service in every engagement. With team members in North America, EMEA, Asia and Australia-New Zealand, we are uniquely positioned to deliver Microsoft Dynamics 365, ERP, CRM, business process, analytics and collaboration solutions to clients across the globe. The largest independent Microsoft Dynamics partner in the world, DXC Eclipse serves more than 4,000 clients across multiple industries. Our practice delivers services and solutions that have a positive impact on our world today and into the future. About DXC Technology T DXC Technology (DXC: NYSE) is the world s leading independent, end-to-end IT services company, serving nearly 6,000 private and public-sector clients from a diverse array of industries across 70 countries. The company s technology independence, global talent and extensive partner network deliver transformative digital offerings and solutions that help clients harness the power of innovation to thrive on change. DXC Technology is recognized among the best corporate citizens globally. For more information, visit DXC Technology Company. All rights reserved. ECL-029. July 2018