Retailers Clueless, But Increasing Big Data Investments
Retailers are taking a measured approach to 'big data' in an ongoing effort to improve customer-centric and operational decision making. They will first, however, need to improve their overall analytics capabilities according to a new research report from EKN.
Retailers have struggled with the massive amount of information at their disposal - 68 percent of retailers rate data organization as the top challenge in managing unstructured data. As a result, a higher level of analytics maturity is going to be required. EKN's report says that 80% of retailers are at par or behind competitors in terms of analytics use, and that 60% of retailers are able to perform only basic analysis or reporting.
"Big Data is one of the most exciting opportunities in retail, but retailers are taking a pragmatic, realistic approach to making Big Data investments," said Gaurav Pant, Research Director for EKN. "Big Data is still several years away from moving into the mainstream of retail. However, by taking the right steps now, retailers can position themselves to gain competitive advantage through the power of Big Data and advanced analytics."
According to EKN's State of the Industry Research Series: Big Data in Retail, retailers plan to allocate less than half a percent of their total IT budget on Big Data in 2013. That investment is expected to increase of course, up to 1.2 percent by 2016.