It’s an exciting time for retailers as technology is driving a major disruption in the market. Whether you are just beginning to build a retail data analytics program or you have been gaining advanced insights from your data for quite some time, join Eric and Shish as we explore the trends, drivers and hurdles in retail data analytics

1. ShiSh (twitter: @5h15h)
Retail Industry Solutions Director
Microsoft Corp
My insights from NRF
2017

2. Modern retail is data driven
Location sales Remote sales
Try on and try out products
Face-to-face info
In-store behavior
Social connection/user reviews
Product/price comparison
Online history
Digital transformation
enables the best of online & offline

3. Top 5 Takeaways for Retail Data Analytics
Personalization
Artificial Intelligence
Blockchain in Retail
Autonomous Retail Stores/Frictionless Shopping
Iot

4. TRAVEL BLOGGER
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Talk to an
associate to see
the items from
your wish list!BROWSE
Retail Personalization0
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Weather
Auto-generated Offers
Local
Events
Time of
Day
Recognition
Software
Customer
Profile
POS
Data
Digital
Footprint Audience Wearables
Wish list
Hiking boots sale
Grab and go
More Frequent visits
Increased Sales
Higher Foot TrafficLocation
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WORKING MOM
LAST VISIT: MAR 3
Contoso
Eyewear
Connect with customers at the
right time, right place with the
right offers
• Generate relevant and targeted
offers using integrated data
sources
• Deliver timely offers based on
customer location and time of
day
Predict what customers want
before they tell you
• Anticipate customer purchases
based on profiles, needs and
significant events
• Create natural cross-sell and
upsell opportunities using
predictive analytics solutions
Ensure transaction continuity
• Strengthen next best action engine
by using outcomes of every
customer decision
• Improve offer uptake with better
propensity algorithms
• Prevent duplicate offers across
channels
Boost customer loyalty
and profitability
• Keep customers engaged and
delighted with personalized,
event-based offers
• Deliver engaging in-store
experiences using digital assets to
support interactions with
informed sales associates
Streamline operations
• Become an data-driven
organization
• Evolve from reactive to proactive
to help build, monitor, and
improve your brand
• Keep pace with rapid change and
innovate with cloud infrastructure
Your order is ready!
Pay in-app
to grab and go.
1

5. Engaging customers for repeat visits
7-Eleven
Objectives
7-Eleven wanted to connect
various sources of customer
data to provide a single
customer view, and use mobile
& live data to track the
purchase cycle and engage
customers in real-time
Tactics
The Plexure solution uses
a mobile app, IoT
orchestration, and
beacons to tailor
customer promotions to
personal preferences and
purchasing history
Results
• Linked fuel purchases to
convenience purchases,
positioning 7-Eleven as the
convenience store of choice
• Encouraged customers to return
to 7-Eleven locations, taking up
more offers more often
Built on Microsoft Cloud Technology

6. Frictionless Shopping

7. Artificial Intelligence/Cognitive Services &
Robotics

8. Mars Drinks optimizes operations, boosts
customer satisfaction using IoT & Analytics
Challenge
• Avert downtime and
out-of-stock products
• Improve operational
efficiency of partners in
the field
• Deliver better customer
service
Solution
• MARS DRINKS
identifies the optimum
time to stock and
service its vending
machines by using
Internet of Things (IoT)
technology
Benefits
• Improves timely product
stocking and operational
efficiency
• Increases customer satisfaction
• Drives business insights from
consumer behavior data
“Putting machines online, considering how a space is used, and looking
at people’s beverage consumption will unlock a wealth of information
that we haven’t been able to easily access before.”
— Jamie Head, Chief Information Officer, MARS DRINKS

9. Blockchain decentralizes data in a trustless environment
Traditional System
Centralized system
with stored ledger
Blockchain System
Distributed system
with distributed ledger
• Traditional ledgers are centralized and use 3rd parties and middlemen to approve and record transactions
• Blockchain safely distributes ledgers across the entire network and does not require any middleman
• The technology maintains multiple replicas like p2p torrent file sharing

10. Webjet Uses Blockchain in First-Of-A-Kind
Travel Bookings Solution
Challenge
• Webjet handles thousands of hotel
bookings every day that pass through
multiple operators. The high volume
of transactions and number of parties
involved in each transaction can lead
to discrepancies.
• Booking errors negatively affect customers’
experiences and undermine trust between
Webjet and its partners, and can also have
serious financial consequences.
Strategy
• Webjet and Microsoft
developed a first-of-a-kind
blockchain solution.
• The solution creates secure,
independent transaction
records that all parties can
see. Known as ‘Smart
Contracts, they streamlining
the booking and payment
process, and reducing errors.
Results
• The use of blockchain removes the risk of data
inaccuracy, boosts security and efficiency, and
enhances trust and accountability between
Webjet and its partners.
• The solution gives Webjet a competitive edge
and could set a new industry standard.
• Webjet has an exciting opportunity to grow
by facilitating transactions across the travel
industry and selling its solution into other
sectors.
“Microsoft’s ongoing investments in building the industry’s most trusted cloud platform around the principles of security,
privacy and control, compliance and transparency, along with its deep heritage in guiding businesses, including Webjet,
through periods of significant IT transformation made the decision to go on this journey with Microsoft a no-brainer.”
— John Guscic, Managing Director, Webjet

12. Top Five Strategies for
Retail Data Analytics
My findings of NRF 2017
Eric Thorsen (@ericthorsen)
GM Retail and Consumer Products
Hortonworks

13. 13 © Hortonworks Inc. 2011 – 2016. All Rights Reserved
NRF 2017 Recap
 35,000 attendees
– All 50 states represented
– 94 countries represented
 HR was a theme – in addition to technology, data, and automation
 Five observations based on NRF 2017 Big Show
– Data was a key element of many presentations
– Consumer experience continues to be central to retail strategy
– Unique ways to avoid distraction during systems implementation
– Technology (and data!) continues to grow exponentially
– Omnichannel is less a buzzword and more of an expectation

14. 14 © Hortonworks Inc. 2011 – 2016. All Rights Reserved
Overwhelmed by Data
 New types, new sources, new systems
 Retailers are reporting an overwhelming variety and volume of data
– Not always “big data” by volume, can be complex data by variety
– Retail Data Analytics improve with greater access to all data types
– 4 V’s (Volume, Variety, Velocity, and Veracity) – Veracity provided by Blockchain (per Shish)
“Identity is the core of personalization” and identity is
composed of data
Jeff Rosenfeld – Neiman Marcus
“Sometimes you just need to buy a lightbulb. But customers expect the
light bulb to be in stock, and data can help ensure this happens.”
Dave Abbott, The Home Depot

15. 15 © Hortonworks Inc. 2011 – 2016. All Rights Reserved
Consumer Experience
 Impact of Millennials
– Do not behave predictably
– Most mature retailers have built business on
backs of boomers
– Spontaneous, impulsive, distracted, but loyal
 Expectation of personalization
– Sharing data to promote deeper relationship
– Introduction of “comfort factor”
 Whitney Walker, GM Stores, SONOS
– Importance of consumer experience

16. 16 © Hortonworks Inc. 2011 – 2016. All Rights Reserved
Retail Systems Leadership – Signal vs. Noise
 Focus on business impact
– Essence of simplification
 Mike McNamara – CIO of Target
– 5 Post-it notes

17. 17 © Hortonworks Inc. 2011 – 2016. All Rights Reserved
Technology continues to increase pace
 New “Moore’s Law”
– Data is doubling every year
– First reported at NRF 2014 by Ginni Rometty (80% in last two years)
 Process Automation and Automated Assistants
– Amazon Echo will be in 40 Million homes by 2020
– Evolution of drones for last-mile delivery
– Automated picking and shipping in DC’s
– Continued evolution of business process efficiency
 Trends in Data Management
– The number of U.S. firms using big data in the past three years has jumped 58 percentage points to
63% penetration
– 70% of firms now say that big data is of critical importance to their firms, an astounding jump from
21% in 2012. That’s one of the fastest tech-adoption rates ever.
– The title of chief data officer — the C-Suite manager of big data — a title that until recently didn’t
even exist, is now found in 54% of companies surveyed.
New Data
Traditional Data

18. 18 © Hortonworks Inc. 2011 – 2016. All Rights Reserved
We need a new channel definition
 Omnichannel fails to summarize experience
 Consumers demand personalization
– Online
– On application
– In store
– By phone
To Legacy
API
ALGORITHMS
DATA
Data
Ingest

19. 19 © Hortonworks Inc. 2011 – 2016. All Rights Reserved
How to benefit from trends and data in retail
Engagement of Hortonworks to
identify and focus on business-driven
prototypes
• Big Data Scorecard
• Assist business leaders understand and evaluate the
essential focus areas for accelerating business
transformations
• Joint Innovation Program
• Focus on business impact to create “Vision to Value”,
addressing key executive questions
• Design Thinking paradigm of ideation and prototyping
towards vision
• Use Case Workshop
• Staffed with customer architects and business leaders to
identify low hanging fruit for self-funding projects
Business
( Viability )
People
(Desirability)
Technology
(Feasibility)
Design
Thinking
Experience
InnovationEmotional
Innovation
Functional
Innovation
Process
Innovation

20. 20 © Hortonworks Inc. 2011 – 2016. All Rights Reserved
Thank you!
Please submit questions via the interactive Q&A panel