How Retailers Can Democratize Data To Buoy Performance
Retail companies have invested billions in data analytics and infrastructure to gain a competitive advantage through a deeper and more accurate understanding of consumer behavior, business operations, supply chains and more. They also use tools that allow them to understand and predict customer behavior through real-time data analysis.
But even if marketers are inundated with data, that doesn't mean they're embedded in the day-to-day decision-making processes of the entire company. In fact, a recent McKinsey survey found that nearly 30% of retail and consumer goods companies are failing to achieve their top goals and deliver results across business units. This can create obstacles to strategic clarity and overall performance, and hinder talent attraction and retention.
But in many companies, important decisions in the office (such as in-store marketing or performance marketing) are made at a higher level than where the work is done. For example, in the same McKinsey survey, 27% of retailers said that marketing decisions are made in-store and through the office, while 33% said the same about the digital way they go to market and interact with customers. This can greatly limit a team's autonomy and maneuverability to get work done, and "invites bureaucracy," McKinsey analysts say.
Here are some examples of how democratized access to data and decentralized decision-making should go hand in hand and how marketers can make a difference.
It's about the democracy of data
Innovation and engagement are more likely when teams are empowered to work collaboratively and independently. But if the business goal is to use data to inform and support decisions, how accessible is the data in your organization? When teams wait weeks (or longer!) for information and results due to limited access to data and analytics tools, organizational agility is severely compromised.
Marketers can bridge the gap between data activation and internal internal processes by democratizing access to data through self-service tools and role-based access. Ultimately, data democracy is about cross-functional collaboration, accelerating decision-making and increasing responsiveness and productivity. A high-performing, consumer-focused company, according to McKinsey, "gives the team the autonomy and authority they need to make decisions." In terms of speed and responsiveness, these companies know how to approach decision making with consumers and provide decision makers with the right resources.
The importance of access to data also extends to improving the ability to manage the crises that retailers have inevitably faced in recent years. According to Workday's Closing the Acceleration Gap report, only 46% of executives say they are prepared to ensure business continuity during a crisis. But in organizations where data is fully accessible, that number jumps to 76%, highlighting the link between democratized data and performance.
When teams across the enterprise, from the front office to the C-suite, have independent access to data and can use it to support decision-making, raw data is more likely to drive insight, action and competitive advantage. "With data at their fingertips, teams are more likely to discover new models and drive new initiatives," says Deloitte's Digital Transformation Through Data report.
Democratized data is a win-win: data teams no longer need to send data access requests across the organization, and employees can access the right data at the right time to make faster, more informed business decisions.
Making data work: what change looks like
Now comes the most important part: what happens. Lack of data is not a problem. For years, retailers have invested in digital tools to collect data on key elements such as point-of-sale (POS), inventory management, footfall, specific stores and more.
However, the challenge many marketers face is how to connect multiple silos of data within the enterprise. Information is recorded in separate systems divided by function: finance, human resources (HR), operations, and others. More than 31% of IT leaders say one of the biggest obstacles to achieving their digital transformation goals is access to quality data. When asked what is most important for faster cycles between planning, execution and analysis to improve overall productivity, the most common answer is technology to break down data silos.
To gain a complete view of data shared between customers, branches, back-office operations and more, retailers use solutions that provide self-service capabilities and customizable access controls.
In addition, key data and analytical trends will optionally increase the cost of access. Because dynamic data storytelling replaces traditional pre-built dashboards, it's easier for non-data professionals to use data insights. Advanced data management, based on emerging machine learning (ML) and artificial intelligence (AI) technologies, can automatically create personalized data stories and integrate them into applications, notes Gartner. Analytics tools integrated into enterprise-wide data systems make data easy to understand, support decision-making, and drive innovation and change.
But destroying data silos is more than half the battle. A unified data ecosystem that provides real-time visibility and accessibility, creating deep and valuable insights for immediate action, is the foundation upon which decentralized access and decision-making must be democratized.
The value of a single system that can be accessed anywhere, anytime is highlighted by the latest enhancements from PUMA, one of the world's leading sports brands. The company consolidates all HR information and tasks into one global system, bypassing legacy systems and exposing real-time, data-driven information. Store managers can now generate reports on employee turnover and absenteeism – two of the most important retail performance indicators (KPIs) – whenever they want. You don't have to wait until the end of the month to access this data.
Convenient store-level access enables field service decisions and improves productivity. Managers can easily analyze KPIs to assess current employee turnover and absenteeism in real-time, and then adjust the hiring process as needed. PUMA's easy-to-use dashboard also shows which store employees are achieving their business goals, allowing managers to identify who needs targeted training for development and career growth.
With the right systems available to the right people in the right places, connecting data to results is a very achievable goal for retailers of all sizes.
Terence Wampler is the senior product manager of Workday's CFO division, responsible for the strategy and development of the Workday Financial Management product line . Wampler joined Workday in 2019 after 25 years in various senior roles in application development, most recently responsible for ERP product strategy, product management, customer success and cloud operations. He is an industry expert and renowned evangelist for cloud applications. Wampler holds a bachelor's degree in accounting from New Mexico State University.
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