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3 Ways Retailers Can Capitalize OnStreaming Analytics
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2VITRIA TECHNOLOGY, INC. > 3 Ways Retailers Can Capitalize On Streaming Analytics
The ChallengesTable of Contents
The Challenges
Introducing Vitria OI for Streaming Analytics
The Benefits
How Vitria OI Complements Hadoop
Summary
1.
2.
3.
Today’s retailers are in an extremely competitive environment. They can no longer
afford to fail to understand and anticipate their customers’ needs. Their customers
are inundated with choices that are, literally, just a click away. Very often, retailers
have less than a minute to influence customer decisions and perceptions. To
achieve and maintain a competitive advantage, a retail establishment must be
able to excel in the following areas:
Introducing Vitria Operational Intelligence
Vitria Operational Intelligence (OI) empowers retailers to quickly act on insights
gleaned from streaming data and information – while it still counts. It brings
together state-of-the-art stream processing, real-time analytics, visual
dashboards, and business process management capabilities into one unified
platform to help retailers take immediate process-based action on the discovered
insights.
Streaming data includes events and data from computer networks and RFID tags,
RSS feeds for weather and traffic, as well as social media. Stored data includes
information in databases, data warehouses, enterprise applications, and Big Data
frameworks such as Hadoop. With Vitria OI, retailers benefit from the following:
4.
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2. Engaging in real-time, 1-to-1 marketing with their customers
3. Proactively detecting and preventing fraud
1. Visibility into real-time events
2. Insight into what these events mean to the organization
3. The ability to take immediate action on the discovered insights
Vitria Operational Intelligence Architecture Diagram
1. Creating a highly responsive supply chain to meet the needs of their
customers
3VITRIA TECHNOLOGY, INC. >
Retailers can save significant amounts of revenue and improve customer
satisfaction by accurately predicting their inventory needs, precisely determining
when it is time to reorder, and knowing when a shortage might occur. Vitria OI
empowers supply chain managers to easily track-and-trace operational activity
across applications and organizations, in real-time, and then take immediate
action on the uncovered insights – a task that is almost impossible with siloed
monitoring systems. With Vitria OI, retailers can continuously monitor their supply
chain processes so as to quickly detect shortages, overages, or missed
shipments, especially when dealing with priority orders, which will ultimately
reduce customer dissatisfaction and revenue loss.
3 Ways Retailers Can Capitalize On Streaming Analytics
Real-Time End-to-End Supply Chain Visibility
Real-Time 1-to-1 Marketing
Real-Time Fraud Detection & Prevention
1.
2.
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Streaming Analytics Benefits 3 Ways to Capitalize on Streaming Analytics
Retail and quick serve restaurant chains, with hundreds of store locations as well
as an online presence, are constantly struggling to get a complete picture of the
progress of their orders through an increasingly complex supply chain. The
challenge of being able to track-and-trace purchase orders through to shipment
fulfillment arises from the fact that orders typically touch numerous siloed systems
as they move from suppliers and logistics partners to distribution centers to store
locations. There is no single system of record that can provide retailers with end-
to-end visibility. This challenge is further compounded when dealing with
perishable goods or seasonal items. In a highly competitive market, where
customers have a plethora of choices that are often, just a click away, retailers
have no choice, but to make sure that they are never out-of-stock. This calls for an
extremely responsive supply chain that is only possible through complete cross-
enterprise visibility and the ability to immediately address issues and fluctuations
in demand.
Streaming Analytics for End-to-End Supply Chain Visibility
How End-to-End Supply Chain Visibility Works
4VITRIA TECHNOLOGY, INC. > 3 Ways Retailers Can Capitalize On Streaming Analytics
The goal of marketing, for any retailer, is to identify a potential customer and send
personalized marketing offers to him or her – when it is most relevant. It is no
longer enough to know that a certain customer bought a shirt from a particular
retail store last month. Going forward, retailers will need to combine and analyze
such data points, plus others, from a variety of different resources, in real-time.
Retailers will still want to know about that past purchase. However, more
importantly, retailers will also want to know when that customer is actually in the
store or online, considering a purchase, and therefore likely to convert an offer into
an order. Ultimately, retailers need to create a unique customer experience based
on a customer’s geographic location, past purchase history, and behavior
analytics. The objective for retailers now is real-time, 1-to-1 marketing – reaching
an individual customer at precisely the right moment through the right channel.
Very often, retailers do not have a complete picture of the actual supply chain
process paths. With Vitria OI, retailers can easily tap into supply chain activity
events from their ERP systems and other enterprise applications and correlate it
with other business data, such as store location information and other shipment
data, to uncover how goods actually flow from suppliers and partners to their final
destination. Retailers can establish a baseline process from the discovered
process over which they can define KPIs that can be continuously monitored for
deviations and corrective processes immediately kicked-off, so as to reduce the
potential for unhappy customers.
Vitria OI helps retailers increase customer loyalty and satisfaction by giving them
the relevant insight to engage in real-time, 1-to-1 marketing. With Vitria OI,
retailers can correlate information, such as a customer’s profile, current location,
as well as past and present purchasing patterns to present the right offer at the
right time through the right channel.
Streaming Analytics for Real-Time, 1-to-1 Marketing
Real-Time, 1-to-1 Marketing Based on Geographic Location
“Catching emerging problems in a
near real time fashion can add
significant monetary results in time
and customer sensitive supply
chains.”
Jim Sinur, Former Research VP atGartner, Inc.
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5VITRIA TECHNOLOGY, INC. > 3 Ways Retailers Can Capitalize On Streaming Analytics
Increasingly, retailers are incorporating radio frequency identification (RFID) chips
within their customer loyalty cards. These can be used to identify individuals as
they walk through a particular store. By correlating past buying patterns with their
location and customer profile, Vitria OI can be used to generate up-sell
recommendations at the Point-of-Sale (PoS). Often, loyalty card members
provide retailers with their mobile phone numbers and other details, thereby
providing additional channels that can be used to make real-time marketing offers.
Using Vitria OI, a retailer can correlate a customer’s geographic location and
profile, detect in real-time if he/ she is within a few feet of a store location, and then
text him/ her a personalized promotion that would be hard to decline.
Streaming Analytics for Security & Fraud Detection
According to Forrester Research, global retailers lose between $200 billion and
$250 billion every year to fraud. Fraud costs retailers significant revenues, in
addition to the time and resources it takes to recoup these lost revenues and deal
with the negative publicity and drop in customer satisfaction levels. By the time
many retailers have actually detected the fraud, the transaction has already
cleared and the person committing the fraud has disappeared. The challenge with
detecting fraud lies in being able to identify it early, ideally at the point it is being
committed, rather than waiting for credit card companies to respond. Retailers
need to detect and act on two types of fraud: 1) illegal or illicit behavior from within
the company, such as a nefarious employee, and 2) fraudulent transactions that
originate from outside the company, such as credit card fraud. With Vitria OI,
retailers can monitor all activity in real-time and get alerted to outliers and unusual
activity. For external fraud, retailers can incorporate quickly changing fraudulent
characteristics into new fraud models, and deploy these updated models rapidly to
predict potentially fraudulent transactions so they can be detected faster.
Fraud Detection & Prevention
6VITRIA TECHNOLOGY, INC. >
Vitria OI helps form the basis for a real-time fraud detection and prevention
solution. With Vitria OI, behavior can be tracked using real-time data feeds that are
compared to baseline reference data, analyzed, and displayed using live
dashboards. Furthermore, Vitria OI can complement existing security solutions by
detecting patterns in their results and comparing those patterns to current
behavior, in real-time.
3 Ways Retailers Can Capitalize On Streaming Analytics
Complementing Hadoop & Other Offline Big Data Analytics
Retailers continue to amass vast volumes of data. The most obvious source of this
data is about the customers themselves. In the past, this data was only used for
basic customer relationship management. Other Big Data sources include point-
of-sale transactions, clickstreams, and third-party sources. In addition, sensors
and RFID tags are being added to inventory pallets and customer loyalty cards to
monitor supplier and customer activity in real-time.
Retailers are storing more and more data about inventory management and
customer relationship management in order to tap into this valuable resource for
customer insights. Using Big Data frameworks, such as Hadoop, these large data
sets provide an incredible opportunity for greater insight and intelligence on
business operations. It helps retailers monitor inventory levels, segment
customers, personalize offerings, conduct deeper analysis, and improve
decisions.
However, this analysis is performed on Big Data ‘at rest.’ By combining these ‘at
rest’ analytics with the streaming data analytics provided by Vitria OI, retailers
have a formidable set of tools with which to tame the data deluge for both Big Data
‘at rest’ and Big Data ‘in motion.’ Vitria OI provides the ability to visualize real-time
feeds and take real-time action on significant events. Where the same feeds are
stored in a Big Data framework, Vitria OI can work alongside the Big Data store,
providing the ability to replay past events, analyze those events for patterns, and
compare past events with the current situation.
Using this combined approach, Sales and Marketing, for example, can understand
personalized customer behavior, creating marketing campaigns to an audience of
one. Real-time insight enables the creation of novel location- and time-based
product offerings. Store managers can create precise offer bundles based on an
individual customer’s preferences, and the success of new product launches can
be monitored in real-time against the business plan and adjustments made on-the-
fly.
7VITRIA TECHNOLOGY, INC. > 3 Ways Retailers Can Capitalize On Streaming Analytics
Summary:
The retailers that will break away from the rest of the pack are the ones that can
crack the code for unleashing the power of the data that they have at their
fingertips to drive real-time action. Vitria OI provides innovative retailers with that
opportunity. Retailers can continuously analyze and act on live, streaming data
and use the real-time Operational Intelligence that they glean to forge new and
improved relationships with their customers, better understand and anticipate
customer needs, and turn every interaction into a potential opportunity to generate
revenue.
Vitria OI is the only unified solution that can continuously monitor business activity
across applications, spot bottlenecks, and speed corrective action through alerts
and guided workflows. It can integrate, correlate, and analyze streaming events
for richer, real-time insight in context.
8VITRIA TECHNOLOGY, INC. > 3 Ways Retailers Can Capitalize On Streaming Analytics
945 Stewart Drive, Sunnyvale, CA 94085
Tel: +1 (877) 365-5935
Email: info@vitria.com
www.vitria.com
©2014 Vitria Technology, Inc. All rights reserved.3 Ways Retailers Can Capitalize On Streaming Analytics 2/14
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