The report analyzes the role and relevance of Big Data and its associated concepts for M&S. It discusses the advantages, technology stack, and alignment of business goals and objectives with BI and Big Data.
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Big Data & Decision-Making: Marks & Spencer Executive Summary Marks & Spencer is an organization that was found in the year 1884. The company was started in a single market stall and has now grown to an international brand as a multi-channel retailer. Currently, there are over 85,000 employees working with M&S and it has around 850 stores in UK and 480 international stores in 54 locations across the globe. It is of utmost importance to make sure that the information sets are adequately stored, organized, and maintained in the organization. Big Data is a concept that emerged with the increasing need of data storage, management, and organization. Big Data refers to the application of technology for automated analysis, storage, and handling of the data sets. There are several Big Data tools that have been designed which are being used in the enterprises for data storage and management. The report analyzes the role and relevance of Big Data and its associated concepts for M&S. 2
Big Data & Decision-Making: Marks & Spencer Table of Contents Introduction...........................................................................................................................4 Big Data Use Case: Marks & Spencer...................................................................................4 Big Data: Strategy and Steps............................................................................................................4 Alignment of Business Goals and Objectives: BI and Big Data.............................................6 Advantages........................................................................................................................................8 Technology Stack...................................................................................................................9 Cloudera Platform & Hadoop Ecosystem........................................................................................9 M&S Technology Stack...................................................................................................................10 Data Analytics along with MDM: Support to DS and BI.....................................................11 Support & List of NoSQL Databases for M&S..............................................................................12 Social Media and it role in Decision Making........................................................................12 Value Creation Process........................................................................................................13 Five Force Analysis.........................................................................................................................13 Value Chain Analysis......................................................................................................................13 Conclusion............................................................................................................................14 References............................................................................................................................15 3
Big Data & Decision-Making: Marks & Spencer Introduction The business organizations in the current times make use of massive sets of data. Information associated with an organization is its most significant asset and it is necessary that adequate management and organization of the information sets is carried out. There are different projects that an organization works upon simultaneously. Each of these projects has their respective information sets that need to be managed. Apart from these, employee details, financial information, sales data, customer information, business partner details, market information, etc. are some of the information sets associated with an organization. It is of utmost importance to make sure that the information sets are adequately stored, organized, and maintained in the organization. Big Data is a concept that emerged with the increasing need of data storage, management, and organization. Big Data refers to the application of technology for automated analysis, storage, and handling of the data sets. There are several Big Data tools that have been designed which are being used in the enterprises for data storage and management (Venturebeat, 2016). Big Data tools are being integrated and used with the decision-making & decision support systems along with the data analytics tools under Business Intelligence. (Google, 2016). Big Data Use Case: Marks & Spencer Marks & Spencer is an organization that was found in the year 1884. The company was started in a single market stall and has now grown to an international brand as a multi-channel retailer. Currently, there are over 85,000 employees working with M&S and it has around 850 stores in UK and 480 international stores in 54 locations across the globe. The supplier network of the organization is spread to over 3,000 suppliers globally and the company sells stylish clothes and home products to the customers. It also deals in the outstanding quality food (Qubole, 2016). Big Data: Strategy and Steps The strategy of M&S is to increase the top-line sale of the company. The business strategy needs to be aligned with the business initiatives as: ï‚·Enhancement in the percentage of customer loyalty card. ï‚·Enhanced customer engagement ï‚·Promotion of seasonal clothes with discount 4
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Big Data & Decision-Making: Marks & Spencer The Big Data strategy and the associated steps will fall in line with the company strategy and business initiatives. Big Data Strategy Step 1: M&S has a supplier network of over 3,000 suppliers. There are a total of close to 1,300 stores of the organization globally. As a result, there are abundant sources of the data sets that are associated including the social media channels, external, and internal sources. In the first step, these sources shall be identified and listed. These data sources will include: ï‚·Customer purchase patterns ï‚·Transactional data ï‚·Social media channels and networks ï‚·Customer and supplier contact details and demographic information ï‚·Site Search ï‚·Data from the mobile application 5
Big Data & Decision-Making: Marks & Spencer Step 2: The business strategy is to increase the top-line company sales and the business processes that will support the strategy will include the expansion of customer base with maintenance and enhancement in the quality of the products. Big Data analytics will be applied for identification. Step 3: Big Data will be applied in the process of multi-channel marketing and sales for M&S. it will provide the capability to achieve the business strategy on the basis of the customer preferences and choices (Schmarzo, 2013). Step 4: The critical success factors that are associated with M&S include understanding and analysis of customer behavior, choices, and preferences. The integration of real-time data with customer information and managing the demand and inventories as per the customer requirement will also be a measure of success. Customer communication and interaction levels will also determine the organization success. All of these processes will be possible to be managed using Big Data tools. Big Data analytics along with decision-support systems and automated data analytics tools will enable these key tasks. Step 5:The business initiatives of M&S include enhancement in in the percentage of customer loyalty card, enhanced customer engagement, and promotion of seasonal clothes with discount. The automated analysis of customer data and preferences will make sure that the initiatives are practically carried out and achieved. Step 6: The Big Data tools will be integrated with the existing information sets of M&S to make sure that the business strategy is achieved. Alignment of Business Goals and Objectives: BI and Big Data The primary goals of M&S are to enhance the customer engagement and satisfaction levels along with the expansion of customer base. The business goals and strategy of the company can be aligned with Big Data and BI concepts as explained below. ï‚·Online Analytical Processing (OLAP) There are various data sets that are associated with M&S. It is certain that not all of these data sets will be valuable or relevant to the organization. The use of OLAP will discard the data sets not needed and the ones that will be required will be retained. The use of this technique will ensure that in-depth analysis of the customer data is carried out (Olap, 2016) 6
Big Data & Decision-Making: Marks & Spencer ï‚·Data Analytics The use of Big Data tools will allow the analysis of the customer data and information collected from the data sources, such as customer purchase patterns, transactional data, mobile application, social media etc. The patterns and trends involved with the data sets will be identified and utilized to the fullest (SearchDataManagement, 2016). ï‚·Data Warehousing M&S makes use of data warehouses that can be classified in two types as logical and physical data warehouses. The co-relation between the customer demands, purchase patterns, market demands, and choices will be developed with the application of this concept (Villanova University, 2016). ï‚·Data Mining Big Data and Business Intelligence techniques can be utilized to the best of their capabilities when the two are integrated with each other. The primary goal of BI concepts as well as Big Data is to manage the information and data sets. Data Mining under BI will provide M&S with the ability to identify the relationship between customer behavior and purchase patterns along with the market demands, company sales, etc. ï‚·Real time BI The real-time information will be required to be synced with the customer data to allow M&S to achieve it business goals and objectives. The use of real-time BI will allow the organization to make business decisions as per the market situation and demands. The inventory management will also be adequately done. The customers may be provided with the promotional offers and deals as per their purchase patterns to enhance the level of interaction and engagement. ï‚·Reporting M&Siscurrentlyworkingintheproductcategoriesasstylishclothing,home improvement products, and quality food. There is a vast supplier and customer network that is associated with the organization. The use of BI and Big Data in the reporting activities will ensure that the reporting structure is streamlined. ï‚·Data Sources M&S has a supplier network of over 3,000 suppliers. There are a total of close to 1,300 stores of the organization globally. As a result, there are abundant sources of the data sets 7
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Big Data & Decision-Making: Marks & Spencer that are associated including the social media channels, external, and internal sources. These data sources will include Customer purchase patterns, transactional data, social media channels and network, customer and supplier contact details and demographic information, site search, and data from the mobile application. Advantages ï‚·The involvement and use of Big Data will make it possible for M&S to carry put predictive analysis on the data sets. The customer preferences and patterns will be identified as a result. ï‚·There are abundant sets of data that are involved with the organization. These huge clusters of data will be managed adequately using Big Data tools and the streamlining of the data sets will be possible. ï‚·The customers will be provided with the products as per their demands which will enhance their engagement levels with the organization. ï‚·The handling and management of the supplier information will also become easier with the use of Big Data which will lead to the improvement of the supplier relations (Ap- institute, 2016). ï‚·The irrelevant data sets will be discarded which will lead to better organization of the storage space. There are various other advantages that the use of Big Data will offer to the organization. ï‚·Cost Savings Big Datatoolscan becustomizedaccordingtothe requirementsof the business organization. There are several Big Data tools that are available in the market and the one that is currently being used in M&S is Cloudera platform. The platform has been designed as per Apache Hadoop architecture and it can be easily scaled up or down as per the business requirements. The data sets and their requirement in the organization will not remain the same all throughout. It is a dynamic process in which the data needs may fluctuate. The use of these tools will allow easier management of the data sets, easier maintenance, and implementation which will bring down the overall costs. ï‚·Competitive Advantage 8
Big Data & Decision-Making: Marks & Spencer M&S is a market giant in the field of clothing and retail. There are several other organizations that are working in this area and there are also new entities entering the market. As a result, the level of competition in the industry is huge. It is required that the organization offers the customers with good quality product along with streamlined services so that the competitive advantage is gained. The use of Big Data tools will ensure that the products are released as per the customer requirements and expectations which will enhance the customer engagement levels. ï‚·New Business Opportunities The use of Big Data analytics may provide M&S with the opportunity to explore new business areas in order to expand the customer base. The revenues and profits of the organization will also improve as an outcome. Technology Stack Cloudera Platform & Hadoop Ecosystem The Big Data tool that is currently being used in the organization is Cloudera platform that has been designed as per the Apache Hadoop Ecosystem. 9
Big Data & Decision-Making: Marks & Spencer Hadoop Ecosystem The Hadoop Ecosystem has been developed using JAVA as the programming language as all the codes and algorithms are developed using this language. The use of this language was done as it is object-oriented in nature and allowed the tool to have the properties as inter-operability, platform independence, robustness, and ease of maintenance. The data sets and their requirement in the organization will not remain the same all throughout. It is a dynamic process in which the data needs may fluctuate. The use of these tools will allow easier management of the data sets, easier maintenance, and implementation which will bring down the overall costs (ITProPortal, 2013). Hadoop Distributed File System (HDFS) is the file system that is involved in the tool and is placed at the bottom of the architecture. The Hadoop architecture is used to store the data sets and is also involved in the data backup processes. The recovery of the data sets can be done through Hyper-scale storage architecture (Computerweekly, 2016). M&S Technology Stack The technology stack of M&S is shown in the image below. M&S technology Stack 10
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Big Data & Decision-Making: Marks & Spencer The technology stack of the organization comprises of the data sources at the bottom. There are abundant sources of the data sets that are associated including the social media channels, external, and internal sources. These data sources will include Customer purchase patterns, transactional data, social media channels and network, customer and supplier contact details and demographic information, site search, and data from the mobile application. Hadoop and data warehouses are present at the top of the data sources. M&S makes use of data warehouses that can be classified in two types as logical and physical data warehouses. The co-relation between the customer demands, purchase patterns, market demands, and choices will be developed with the application of this concept. There are a wide range of databases that the organization makes use of. These include SQL databases and MySQL database along with a range of NoSQL databases as well. NoSQL databases that are being used include MongoDB, CouchDB, etc. NoSQL refers to No-Structured Query Language. These databases do not include SQL in its architecture and are usually placed on the cloud. As a result, they offer enhanced mobility and flexibility to the organizations in which these are implemented. These come with enhanced performance as well (Pentaho, 2016). Documentation and customization of the UI are the other advantages that are offered with the use of NoSQL databases (Goes, 2016). Data Analytics along with MDM: Support to DS and BI Master Data Management (MDM) is the concept that plays a significant role in the case of M&S data management and organization. It is being used with the decision support systems, Big Data tools, and BI concepts for data storage, data handling, and management. There are two forms of MDM that are involved and are used in M&S. ï‚·Operational: There is a lot of transactional data that is involved with the company. The transactional data needs to be consistent and it is also essential that the integrity of the data sets is maintained. The use of operational MDM makes sure that the performance is maintained and improved at all times. ï‚·Analytical: There are BI concepts as data analysis and OLAP used with the MDM that make sure that the customer data and information is adequately analyzed at all instances. The amalgamation of data analysis and MDM allows M&S to achieve the following set of benefits. 11
Big Data & Decision-Making: Marks & Spencer ï‚·Thesynchronizationofthecustomerdataandsupplierdatabecomeseasierand simplified. ï‚·The overall response time and throughput time spent in data gathering and analysis is also brought down. ï‚·Operational management and consistency is managed and is also improved. ï‚·The overall performance of the operational and transactional activities can be improved upon (InformationWeek, 2016). Support & List of NoSQL Databases for M&S NoSQL databases do not include SQL in its architecture and are usually placed on the cloud. As a result, they offer enhanced mobility and flexibility to the organizations in which these are implemented.Thesecomewithenhancedperformanceaswell.Documentationand customization of the UI are the other advantages that are offered with the use of NoSQL databases. The NoSQL databases being used in M&S include MongoDB, Cassandra, and CouchDB.MongoDBisanopen-sourcedatabasethatdoesnothaveanyset-upor implementation cost associated with it. It is deisgned using agile as the framework and therefore, it offers enhanced flexibility and scalability to the organization. Cassandra is the NoSQL database designed by Apache and it is also open-source in nature. CouchDB has a unique property of enhanced index management. There are also some other NoSQL databases that M&S can make use of. These include Elasticsearch as one of the NoSQL database. The database will support the RESTful web services and will make sure that the implementation of these services is efficiently done. AmazonSimpleDB is another database that will enhance the quality and performance of data management. Terrastore and MarkLogicServer are the NoSQL databases that will enhance the data storage and handling capabilities (Bigdata-madesimple, 2014). Social Media and it role in Decision Making Decision making processes and activities will benefit a lot with the adequate use of social media in M&S. One of the prime data sources for M&S is the social media channels and networks. There are millions of customers that are connected with the organization through its social media presence. The suppliers, customers, and competitors are connected with the organization on the 12
Big Data & Decision-Making: Marks & Spencer social networks. These channels and networks will influence the decision-making activities if utilized correctly. For instance, the data sets from the social media channels, such as customer posts, customer tags, connected profiles, etc. can be obtained and analyzed to determine the customer preferences and demands. The target audience for each of the product category on the basis of the age group or gender or other factors may then be identified. The business decisions will improve in terms of the sales and marketing strategy to be followed. Similarly, the social media information of the competitors will allow the organization to keep a track of the latest market demands, fashion profiles, and expectations and the decision-making processes may be carried out accordingly. Value Creation Process The value creation process for the organization can be understood on the basis of the two methodologies as Five Force Analysis and Value Chain Analysis for M&S (Hull, 2016). Five Force Analysis The five forces that are involved with the organization and their influence on the same have been shown above. The competitive rivalry for the organization is high and the supplier power is also high. The buyer power factors also play a significant role. The product and technology developments are moderate and the influence of new entries in the market is low. Value Chain Analysis The primary and secondary activities for the organization have been shown in the figure below. 13 Competitive Rivalry Number of firm competing Key trends Product range Supplier Power Reputation of the brand Geographical location Buyer Power Factors Choice and preferences Cost Availability Product and Technology Developemnts Government policies Compliance risks Distribution and sourcing changes New entries in market Financial feasability Barriers to entry Presence in market
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Big Data & Decision-Making: Marks & Spencer Conclusion M&S was started in a single market stall and has now grown to an international brand as a multi- channel retailer. Currently, there are over 85,000 employees working with M&S and it has around 850 stores in UK and 480 international stores in 54 locations across the globe. Big Data is a concept that emerged with the increasing need of data storage, management, and organization. Big Data refers to the application of technology for automated analysis, storage, and handling of the data sets. There are several Big Data tools that have been designed which are being used in the enterprises for data storage and management. The business initiatives of M&S include enhancement in in the percentage of customer loyalty card, enhanced customer engagement, and promotion of seasonal clothes with discount. The automated analysis of customer data and preferences will make sure that the initiatives are practically carried out and achieved. Big Data tools can be customized according to the requirements of the business organization. There are several Big Data tools that are available in the market and the one that is currently being used in M&S is Cloudera platform. The platform has been designed as per Apache Hadoop architecture and it can be easily scaled up or down as per the business requirements. The data sets and their requirement in the organization will not remain the same all throughout. . 14 Primary Activities Familiar in nature Support Activities Less familiar but equally important
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Big Data & Decision-Making: Marks & Spencer Pentaho.(2016).PentahoandNoSQLDatabases.[online]Availableat: http://www.pentaho.com/big-data-analytics/nosql-databases [Accessed 02 October 2018]. Qubole.(2016).BigDataUseCases|Qubole.[online]Availableat: https://www.qubole.com/resources/solution/best-use-cases-for-big-data-analytics/? nabe=5695374637924352:0&utm_referrer=https%3A%2F%2Fwww.google.co.in%2F [Accessed 02 October 2018]. Schmarzo, B. (2013).Big Data: Understanding How Data Powers Big Business. Indianapolis: John Wiley & Sons, pp.65-77. SearchDataManagement. (2016). What is data analytics (DA)? - Definition from WhatIs.com. [online]Availableat:http://searchdatamanagement.techtarget.com/definition/data-analytics [Accessed 02 October 2018]. Venturebeat.(2016).BigDataimplementationmistakestoavoid.[online]Availableat: http://venturebeat.com/2014/11/25/5-big-data-implementation-mistakes-to-avoid/[Accessed02 October 2018]. Villanova University. (2016). Business Intelligence (BI) Overview of Major Components. [online]Availableat:http://www.villanovau.com/resources/bi/overview-of-business- intelligence-bi-components/#.VzordTB97IU [Accessed 02 October 2018]. 16