ANL203 Analytics for Decision Making Group Based Assignment 2022

ANL203
Analytics for Decision Making
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Group Based Assignment
TG04
Names PI. Number
Tan Si Yuan Z1780624
Edwin Lim B1780525
Mohammad Rashidi Bin Sulaiman E1571461

Date of Submission:13/08/2019

In this assignment, you need to recommend an analytical solution to help an organisation in their
digital transformation journey. In each question, you will be required to complete a set of
activities that are related to the final transformation roadmap. Your report should have the
following structure:
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1. Executive summary - Fictitious Name: HeartlandMart
2. Current state of the organisation: Only 2 Supermarkets islandwide, one in Ang Mo Kio one in
Hougang
3. Proposed initiative: Transform the business from Brick and Mortar to a mixed e-commerce
business. Users of the website can opt for delivery or self collection.
4. Plans of action and criteria for success: Data mining tools used to bundles products frequently
bought together. First criteria of success is to encourage users to sign up for the online store. At
least 30 sign ups in a month. After 6 months of online store, introduce new data mining tools
(Clustering) to discover what items are frequently bought by people in the same demographics.
Use this data to personalise their shopping experience by showing these items as
recommendations. Offer 5% discount on items that are frequently bought together. Criteria for
success in the next 6 months, at least 60 customers per month using online store.
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Digital transformation requires rethinking business processes. It’s about using digital
technologies and data to put the customer at the center of your business; drive more value for the
customer

Summary
E-commerce is set to become the world’s largest retail channel by 2021. Enterprises of all sizes,
big and small, have scrambled to set-up their online presence to stay ahead. In order to remain
relevant and competitive, organizations can no longer confine themselves to traditional brick and
mortar store concept. This is the case for HeartlandMart, a neighbourhood supermarket that has
operations in Ang Mo Kio and Hougang vying to establish a presence in the online grocery
shopping scene. HeartlandMart considers putting together a team of experts to digitally
transform its business operations so as to deliver more value for its customers. It aims to improve
customer’s shopping efficiency and improve sales revenue by 15% in the first year.
The use of data analytics can help HeartlandMart achieve this goal. Clustering, a data mining
technique, can be used to analyse store transactions to reveal the relationship between products.
This enables HeartlandMart to bundle products frequently bought together and sell them at a
discount. Moreover, clustering also allows the personalization of e-commerce pages according to
customers’ demographics, increasing customer engagement and retention as it appeals to all
shoppers. However, this requires an abundance of customer data which may not be readily
available and the initial cost of establishing an e-commerce platform is hefty. HeartlandMart can
utilize loyalty programmes to capture customers personal and transactional data. For example,
the use of loyalty cards to track customer expenditure. Budgeting for resources helps reduce the
impact of unforeseen expenditure which reduces sales revenue.
As with every new business, the number of customers is low. HeartlandMart can actively
promote the platform to raise awareness among existing and new customers. And at the same
time design sales promotion to incentivise shoppers to spend recurrently. This will groom
customer loyalty and ensure recurring profits. In order to meet the business objective, expenses
have to be kept at bay. One significant expense is transportation; the delivery of goods to
customers. Poor of transportation cost may eat