winning decisions are increasingly driven by analytics more than instinct, experience, or merchant “art”; what succeeded in the past is now a poor predictor of the future, and analytics is helping to inform and unlock new pockets of growth. – By Steven Begley, Rich Fox, Gautam Lunawat, and Ian MacKenzie from McKinsey
Convolution within merchandising organizations has driven toward inefficiencies, where the burden of low-value-added work is quite high. According to the statistic exacted from survey done by McKinsey on 30 retails, two third of the time of owner were spend on gathering data, managing exceptions, “firefighting,” and participating in meetings and only one-third of their time working on critical strategy and analytics or insights. Therefore role of analytic will be more prominent in next generation retail merchandising. Below are the figure reflects impact of automation in the merchandising activities:
As the tools and system has increasingly complex and various in choice, it’s important to have clear vision on the requirement and expectation. Below figure are the extraction from the article in reference showing the example of future requirement of digitization in order to complete in the business:
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