Lead with an Integrated Business and Data Strategy
Retailers with an integrated business and data strategy are better equipped to fight this ongoing retail warfare. A critical component of the Data Strategy is an evolutionary Master Data Management solution to enable a strong Master Data foundation within the enterprise.
Consumers have grown to expect the same level of service from brick-and-mortar stores and the digital world. Evolving technologies that can accommodate changing consumer choices will continue to create drastic changes in the retail landscape.
In their article “The consumer sector in 2030: Trends and questions to consider”, McKinsey discusses how the digital revolution is shaping the retail industry and what will be the most prominent data challenges and trends within the following years. Businesses will have to adjust to the stagnating levels of consumption in the developed worlds and adopt multi-functional technologies that will allow them to advertise and sell in emerging markets like BRIC and other developing economies where the purchasing power of the middle class will continue to grow.
Retailers are witnessing an increasing shift in consumer’s behavior and the way they use technology to search for, review and shop products. The way people interact with brands and how businesses sell need to evolve with sense urgency. Enterprises are incorporating hybrid shopping technologies, IoT, artificial intelligence and virtual reality rooms and focus on creating unique and personalized in-store experiences. Enterprises have more access to powerful analytics to help them find the balance between value-based pricing and a personalized product offering.
Competition is coming from non-store retailers (up 11.9% from last year), luxury stores (offering 90-minute delivery of luxury goods like Gucci handbags) and off-price retailers (Moody’s projects sector sales to rise between 6% and 8% this year). In this fluid landscape where new business models emerge and succeed in a relatively short timeframe, technologies are chosen by enterprises determine their future. They have to invest in technologies, that align with evolving business strategies and changing consumer choices to allow them to stay on top of their game and shift from a traditional business model. At the heart of technology lies data management. Agile data management practices aid retailers to change course faster, reconfigure their business assets and find new marketing vehicles as they incorporate insights from customers.
Slapping on another technology without a long-term data management strategy is not just a short-term outlook but also setting up for failure. Retailers with an integrated business and data management strategy and an agile execution team will be better equipped to fight this retail warfare. Within Data Management, Master Data Management solutions is a must to maintain strong Master Data foundation within the enterprise.
Accurate and rich data support business strategies in streamlining their supply chain, delivering relevant information to the customers along their purchasing lifecycle, derive insights from consumer choices and incorporate the market intelligence back into their Master Data Management platform. Enterprises need to manage their Product Data in a central information hub from where they can extract and deploy data on all the levels of the enterprise and quickly align execution with strategy. A Product Information Management app sitting on top of MDM is a must in managing product data across the enterprise.
Download our article on how Product Information Management (PIM) is a Retailer’s foundation in an Integrated Business Strategy
image credit: @dnevozhai @jbriscoe