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November 2012




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New C-Level Study Finds Most Retailers Lack Tools to Turn Big Data into Insight

Big data is a hot topic in many organizations today, but a recently released Oracle report has found that a majority of retail organizations lack the tools to tap into the full value of their growing stores of business information, with respondents reporting an average loss of 10 percent of incremental revenue as a result.

Titled From Overload to Impact: An Industry Scorecard on Big Data Business Challenges, the report, based on surveys of 333 C-level executives from the United States and Canada, found only 3 percent of the organizations gave themselves an A in their ability to profit from big data, while 57 percent gave themselves a C or lower—including 30 percent that gave themselves a D or F.

Specifically, retailers reported gaps in the following areas.

  • Store systems, including point-of-sale and store (43 percent)
  • Consistent and complete view of merchandise and inventory, both throughout the supply chain and in stores (43 percent)
  • Mobile access to customer, product, inventory, and other information for store associates (40 percent)
  • Consistent and complete view of the customer throughout the retail enterprise (40 percent)

High Cost of Inaction
The survey found retailers have experienced a massive rise in the amount of business information they have to manage—an average increase of 98 percent over the last two years among the 90 percent of C-level respondents who report increases.

Despite all that data, respondents estimate that they are losing significant amounts of incremental revenue—on average, 10 percent annually—because they are not able to fully leverage the information they are collecting.

Based on the average size of respondents' organization, the losses amount to some US$50.5 million per organization.

In particular, respondents say they face challenges in

  • Cross-channel customer experience (40 percent)
  • Optimizing the supply chain (30 percent)
  • Leveraging customer information to create personalized offers and campaigns (27 percent)
  • Tracking and optimizing inventory (27 percent)
  • Streamlining merchandising and pricing (27 percent)

Download the full report now to learn more about big data in retail.

Read a white paper to learn more about Oracle Retail and the power of actionable insight.

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