2012 Readers' Choice: Demand Data Analytics
Although vendors in this category are continuously improving and deepening their product functionality and customer service in this hot market, the industry’s enthusiasm for downstream data seems to have stalled. Lora Cecere, partner for Altimeter Group, offers some insights for re-infusing life into this critical business initiative.
The industry’s use of downstream data seems to have slowed. What will it take to move these initiatives forward?
Cecere: The industry has stalled. To accelerate the market, three things need to happen: The use of structured and unstructured data together for a comprehensive demand signal (it is about much more than the use of point-of-sale data); the re-implementation/redesign of demand planning to use the POS data (many of the existing solutions cannot scale to appropriately use the data); and the continued push on value network cost opportunities. If we can reduce the bullwhip in the supply chain (which demand data helps us to do), we can unleash large cost advantages. The use of downstream data is an important element in the design of value networks (looking at customer and supplier jointly).
Do you have any advice as to where companies should prioritize their efforts?
Cecere: Start outside in. Answer these questions:
• What data is available and relevant?
• How can I use that data to drive a better signal to the market?
• Is the data significant and clean enough to be useful in analyzing demand?
Are you seeing downstream data being leveraged in new and different ways? What processes are benefitting the most?
Cecere: POS data answers the “what” and the “when”, but companies are not sure of the “why”. I love the new sentiment analysis work from Bazaarvoice and IBM Netezza on rating and review aggregation. This is very early work, but it can answer the “why”. For example, R&D teams can use this data to understand how well products are selling into the channel.
Breakout Favorites
Customer Experience Leader: Vision Chain
“As PepsiCo develops new ways to activate downstream retailer data for in-store execution, we count on Vision Chain’s responsive 24/7/365 service in designing, maintaining and supporting our cutting-edge solutions.“
— John Phillips, Senior Vice President, Customer Supply Chain & Logistics, PepsiCo
SMB Market Leader: The Nielsen Company
Nielsen is committed to innovating in the demand data analytics market and providing retailers and manufacturers with predictive analytics that align to their business processes and help them make more informed business decisions.