Literature Review: BI Frameworks and Applications in Grocery Stores

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Literature Review
AI Summary
This literature review delves into the application of business intelligence (BI), big data, and artificial intelligence (AI) within the grocery store sector. It examines various BI frameworks and their impact on key performance indicators (KPIs), emphasizing how these tools help optimize operations and enhance customer experiences. The review explores the integration of big data and AI, highlighting their roles in analyzing customer behavior, optimizing pricing strategies, and streamlining supply chains. It also discusses the application of descriptive, predictive, and prescriptive analytics in retail grocery chains, providing insights into sales performance and relevant case studies, particularly in the UK. The research methodology section outlines the research type, approach, philosophy, data collection methods, sampling techniques, and data analysis procedures, along with considerations for ethics, reliability, validity, and limitations. The literature review underscores the transformative potential of BI, big data, and AI in driving efficiency, enhancing customer satisfaction, and achieving competitive advantages in the grocery retail landscape.
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TABLE OF CONTENTS
LITERATURE REVIEW................................................................................................................3
Business intelligence frameworks...............................................................................................3
Business Intelligence in Grocery store Key performance Indicators..........................................4
Integration of Big data / AI / in grocery shops............................................................................6
Descriptive analytics, predictive analytics and prescriptive analytics in retail grocery chains...7
Relevant case study analysis in grocery store in UK.................................................................10
Sales performance using business intelligence in grocery shops..............................................12
RESEARCH METHODOLOGY..................................................................................................14
Research type.............................................................................................................................14
Research approach.....................................................................................................................15
Research philosophy..................................................................................................................15
Data collection...........................................................................................................................16
Sampling....................................................................................................................................17
Data analysis..............................................................................................................................17
Ethics.........................................................................................................................................18
Reliability and validity..............................................................................................................18
Research limitation....................................................................................................................19
REFERENCES................................................................................................................................1
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LITERATURE REVIEW
The literature review is type of academic paper through which the scholar can easily
analyse, collect information and data while for making the research relevant. Along with this
review help the scholar for knowing about the various concepts and views of different author.
Therefore, this literature explain about the business intelligence framework and key performance
indicator for the store and their supply chain. Furthermore, examined about the integration of big
data in grocery shop with the artificial intelligence. Also, explain about the descriptive,
predictive and prescriptive analysis for the grocery shop. Finally, last explain about the relevant
case study in grocery store of UK and sales performance that using in business intelligence for
grocery shop.
Business intelligence frameworks
According to the Bordeleau, Mosconi and Santa-Eulalia, (2018) business intelligence
framework is an effective tool or technique that connect various elements of business such as;
roles of employees, KPIs, visualization and authorization. The main advantage of making use of
this framework is to implement plans in an easier and faster manner. It also helps in improving
structure process as it is easier and user friendly that increases users’ experiences. It helps retail
sector in using accurate data related to consumers’ behaviours, needs and their experiences. All
these accurate with the help of business intelligence framework makes able to retail sector in
taking data driven decisions.
Siemen and et.al., (2018) contradicted and said that business intelligence is software that
helps companies or retailers in transforming all gathered data into actionable insights that inform
about their business decisions. There are several advantages that retail sector can take by making
use of this software in transforming data into actionable insight. Some advantages for retail
sector include: fast and accurate reporting, better data quality, competitive advantages, increasing
operational efficiency and customers’ satisfaction. When employers make use of accurate and
reliable data related to customers then they are more likely to satisfy needs of customers by
providing qualitative products to them. By getting qualitative services and products, customers
retain or stay with business for the long run as it increases trust and loyalty towards business.
Increasing rate of customers’ satisfaction and retention makes retailers able to take competitive
advantages and becoming the market leader. So, overall it can be said that business intelligence
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play a vital role in retail sector.
As per Ul-Ain, Vaia and DeLone, (2019) business intelligence combines data mining and
business analytics, infrastructure, data tools etc. it helps organisation to make effective decisions
so that they can achieve growth. BI is called as the umbrella which have process of gathering,
evaluating and storing information from the business or business activities to increase the
performance. All these things can be combined to make the comprehensive view of the business
so that businesses can make better and effective decisions. Decision making is the important step
in the business and have to be made carefully. BI helps company in taking strategic decisions by
presenting present and old data into the business. Analysts uses BI so that company can run
smoothly and effectively. With the help of BI analytics can study the market trends so that sales
and be increased and business can generate more revenue.
BI tells business the methods through which profits can be increased. It is also used to
evaluate customer behaviour. To understand customer behaviour is important because it will help
businesses to know that what customer want so that they will manufacture goods according to
the preference of them. It is also helpful in tracking the performance. When the performance is
effectively tracked than only it can be known that where improvement is required. It helps in
identifying the gaps in which business is lacking. It provides guidance in predicting the
success.To predict the success is another important thing because it will help business in
planning for expansion. It facilitates in discovering problems. It will find out that what problems
or issues is going into business and also provide possible solutions for it.
Business Intelligence in Grocery store Key performance Indicators
According to Fairhurst, (2021) as the huge demand for the online grocery in which
organization can set their business while for having profits. Along with this also important while
for having the business intelligence for the grocery stores. Hence, the grocery store play the
important role for which customer can buy the bulk of the product from the store. As retail KPI
must be important while for having the proper estimation in the business and make sure about
their organization in which they can work while for having big size of customer. Data analytics
in business take the advantage while for having the better development and also make sure about
the high impact over the organization sector for their customer. KPI must be important while
through the organization can setup their online business and make their large customer size.
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As per Voldnes and et.al., (2021) view that, marketing campaign and their various
promotion activities which might be also included them for various patterns in having the
shopping behaviour which might be better sources for their business. This draws might be taken
much time while for having their development and growth for the business in which they can
make sure about the various impact over their organization. Pricing strategies must be important
while for having the better development and make their organization for having the better
estimation for their customer in which they can easily have customer range. In the grocery store
the most of customer get attracted by the pricing strategies while through which they can easily
have their pricing theme and allow them for staying the competitive is any difficult tasks.
Lehtonen (2021) view that, grocery store have the huge amount of the distribution
channel while through which they can make their large customer from which the customer also
come to know about the various things. The supply chain must be having from the manufacturing
to wholesaler to retailer and then to consumer. While through having the better transformation of
the products and services this might be also important while for having the better development
and growth for the business. Online supply chain have been started by the many of the grocery
store while through which they can make sure about their high impact over the business in which
they can easily have their customer. In having the customer this could also lead them for having
their better distribution centres and often fast moving trending with high demanding in products
and services.
Mathrani and Lai (2021) said that, it might be also observed that organization with
having the grocery store they can easily have their better development for having the better
things in the company. While by having the estimation of the customer demand and social trends
in which they can often the large customer demand and make them satisfied. The gap have been
founded that customer also come to know about the social trends and that could also help the
business for knowing about those things which might be important for them in making their
business developed. Along with this also play the important role while for having the better
products and services for which they can have and make sure about the strategies which is the
most important. Many of the grocery is facing issues in the supply chain due to having the covid-
19 pandemic that might be related to redistribute products from the commercial sector for the
commercial seller as well charitable sector who are needed. The grocery retailing store supply
chain remains the agile and strong while through which they can have their better business.
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Integration of Big data / AI / in grocery shops
According to the Sundar (2021), the integration of the big data that can make the
customer satisfied while by having the better development and growth for which they can make
sure about the high impact over their business system. Retailers have the big impact over the
buying decisions. Convince their customer for buying their products and various other services.
The advantage for maintaining the 360 degree with the customer and optimizing price for the
customer in which they can easily engaged to their products. Artificial intelligence that could
help the business for knowing about their customer history and also make sure about the high
positive thinking for the companies. While through having the proper development for the
business in which they can work and also make sure about those things which might be help the
business. MNC organization play the important role while for having the better big data such as
Amazon, Apple as they first look for the history of the customer. AI must be important for
business and make their sense.
As per Rachman (2020) viewed that, in grocery store the most of crowds, payment
queue, the out of stock products this seems to be painful thing for the grocery store. 15% of the
customer are happy for doing shopping through having the grocery store. Hence, for this the
retailing shop must be changed the activities through which they can easily make sure about
those thing which could be have their more great successful business. Gradually, supermarket
and hypermarket have shifted to the traditional channels for having the better business. As they
have used the online channels in which they can make sure about the satisfaction of the
customer. This has been also proved that customer are drawn seamless and convenient grocery
shopping towards their products and services.
Lichtenthaler (2021) view that, AI make the business for removing the customer queue
for the payment mode and that could keep the business more painful. Removing cashier 30% of
the employee reduces the task and eliminates for the top painful in making the experience for the
customer. While with having the AI that could make the customer for tracking about their social
trends and that could also help them for keeping the satisfaction. While through which that could
help the business for knowing about their more things for which they can make their more
customer. The technology for cash receiver has become the less in retailing store because most of
them have open sources for their customer. However, the retailer need some of the more research
and development in which they can make sure about more strategies.
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According to the Warudkar (2020), in today market AI must be important for having the
better estimation for customer and make their satisfaction. Along with this also make sure about
those things which might be important for taking their more development and have their
customer range for which they can work. Hence, this has been also seems that online payment
mode have been started by the retailing business in which they can easily set their business and
make technology adopt while by using the proper strategies in which they can have more profits
margin. Therefore, having the more profits margin might be more than 50% of their earning with
offline business as they can have more profits from the online business. Worldwide, the retailing
sector has become more battleground for the e-commerce business platforms such as Amazon,
Wal-mart etc. As the retailers in grocery store as they have also set up their process business in
having the organization while by making the online websites in which they can make sure about
the high level of satisfaction. Supermarket and hypermarket can easily set their business while
for having the better promotion, marketing campaign management, inventory management and
shopping targeting while for having the better estimation in profits. For which they can manage
their work and have their more expectation towards their customer.
As per Merritt and Zhao (2021) view that, it had been also gap have been find out that
customer can easily have their products buying on having coupons and that might be important
while for having their better development. Along with this also important for knowing about
those things which might be important in taking much advantage in business growth. As the
marketer has to become more digital sense for which they can easily make their customer and
also take the respond in the promotion, targeting and dynamic pricing streams. Promotion
activities that can be keep the customer for knowing about the grocery store product via having
mail, following the social media platform. While through which they can make their more
customer in which they can have their business satisfaction. It also helps for getting the
experience about the marketing for those who have better customer.
Descriptive analytics, predictive analytics and prescriptive analytics in retail grocery chains.
According to Cao, Wachowicz and Cha, (2017) descriptive analytics is the statistics field
which concentrate on collecting and concluding raw information so that it can be easily
evaluated.This analytics focus on historical data and giving the context which is important it
understand the important information and figures. It is used by many industries and fulfil its
needs. This area is the important step in the business process and has created foundation for
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future analysis and understanding. This analytics is used to find the answers of what is happening
without even doing the complex analysis which are needed in the diagnostics models. This kind
of data analytics is helpful to retailers in effectively organising the data. Its working process is to
collect raw data from various sources so that valuable results can be generated for the past and
present performance. Earlier analysts perform this manually on the excel which is done by
collecting the data from various sources, making changes into it and preparing chart for it etc. but
in today’s time data is collected from automated system and also reporting work is done by using
BI technique and integration. The data which is gathered from descriptive analytics are used to
know that what is happening inside the business.
Olson and Lauhoff, (2019) stated that supermarkets and grocery retail stores have lots of
activities that one can think of. The grocery store have to keep record of every transaction and
they also need to collect customer data so that they can retain them and also getting new
customers. In today’s world to fight against competition it is very much important to retain the
existing customers. Through analytics it gives benefits to the customers as it helps in collecting
important data of the customers whenever they make any purchase whether offline or online.
Through the analytics business can evaluate the shopping patterns of the customers and that offer
leverage to them. Business will get knowledge that what is the spending power and habits of the
customer. This will help grocery stores to plan for marketing promotions and offer discounts to
the customers in order to attract them. This will encourage customers in order to make purchase
for the future. The analytics help businesses in the marketing campaigns and also increasing the
overall profitability. It is competitive world pricing plays important role so analytics helps in
determining the right price for the right items.
As per the views of Shah, Steyerberg and Kent, (2018)predictive analytics it is the
advanced analytics which is used in making the predictions related to the uncertain future events.
In order to make predictions for evaluating the current data this analytics uses many technique
like statistics, AI, data mining, modelling etc. predictive modelling and other analytics
techniques can be used to control the management, IT and business process so that future can be
predicted. The pattern which is gained after predictions in the historical data is further used in the
identification of risks and future opportunities. This analytics model focus on relationships
within the factors to analyse the risk with conditions in order to assign the weightage. Predictive
analytics helps organisation to become proactive, behaviours based on data, forward looking etc.
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it gives suggestions of the actions which can give advantage of the prediction and also helpful in
the decision making and its implications.
Bradlow and et.al., (2017)said that while descriptive analytics will show that what is
happening inside the business and predictive analytics will guide that what next business should
do.It is the most advanced analytics. The predictive analytics use the finding which is gained
form descriptive and diagnostic analytics so that future can be forecasted. This will help in
correctly predicting what will going to be happen in the next. To understand next, business
should have understood what is happening and what it is causing.These analytics identifies
automatically clusters and exceptions. Along with that they predict the future trends by using
statistics and complex algorithms. Just like other analytics, retailer also perform these analytics
manually. They fill the data in excel and apply statistical models to apply the trends for the
future. It is said that retail business is complex and it includes many correlations between
different factors which involves competitors, demand, inventory, consumer behaviour etc. and it
is difficult to do all this manually. That is why it is said that sales forecasting has low accuracy as
compare to demand forecasting. So if the retailer want to forecast accurately and sees the
important correlations, so retail predictive analytics should have utilise the combination of
artificial intelligence, mathematics and automation etc. this analytics can be used in inventory
management, it helps in maintaining and managing inventory properly in retail grocery store.
Lepeniotiand et.al., (2020)discussed that prescriptive analytics is the kind of different
data analytics which uses the technology so that businesses can take effective decisions via
analysing raw data properly. This analytics gives information about current situations and
scenarios, past performance, suggestion of the strategy etc. it is used in decision making for any
time which can be current or for the long run. This analytics will tell the retailers that what they
should have done in the future to get the effective results. The prescriptive analytics system
should not only know that what will happen in future but also should have know that what
actions will be taken which can lead to best future results. This is not easy as there are many
actions which business can take so that changes can be drawn in the numbers. With such level of
price transparency over the internet, retail stores are finding difficulty in competing. But the data
analytics and machine learning, the stores are getting more profit margins only by making little
changes into their operations. It is increasing the scope of prescriptive analytics.
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According to Bertsimas and Kallus, (2020)it is helpful in revenue forecasting, rather than
just relying on historical data and the existing customers and predicting the revenue of the
uncertain future where the trends and tactics continuously changing every year. Prescriptive
analytics ensure that they are using accurate forecasts which combine analysis of the new
customers and also notice their buying habits. It also helps in promotion and promotion is the
vital thing in order to attract the targeted audience. They do promotion so that they can increase
sales by their audience. Although offline activities are also enough to see the purchases and
customer behaviour. But this analytics monitor the customers actions carefully so that businesses
can do correct promotions as per the buying need of the customers. Another use of this analytics
in retail is campaign management. Campaigning is very important for the business. It is seen that
inefficiency in doing marketing campaigns results in ineffective or bad ROI which can be the
result of budget issues and inaccurate calculations.
Descriptive analytics uses historical data while predictive and prescriptive also uses the
same. Descriptive reconfigures that data so that it can be read easily. Whereas predictive fill all
the gaps in the available data and prescriptive do outcomes estimation on the basis of variable.
Through descriptive analytics it describes the complete business operations and predictive make
data models and prescriptive gives suggestions related to outcomes.
Relevant case study analysis in grocery store in UK
According to the Kymäläinen, Seisto and Malila (2021), grocery store must be important
while for having the better development and make the growth for which the business can easily
make their strategy. Tesco play the important while for having the large size in UK for grocery
store. Hence, this organization have the highly impact over the customer while through which
they can easily make sure about the various kinds of things which might be important for them in
having the better growth. Along with this also important while for knowing about the strategy in
which the attention to the services, making people satisfaction. Furthermore, make them feel
effort on occasionally while by offering many more thing for their customer. As supermarket is
knowing as good business in which the organization can easily have their customer and make
more attraction for which they can make the benefits.
As per Luo, Olsen and Liu (2021) view that, the organization can easily make sure about
the grocery store in which they can have the customer range. Furthermore, that could be also
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easier for knowing about those factor which might be helpful for knowing about the high
capabilities for the customer. Along with this also important for knowing about the customer
taste and preference in which they can easily have their better estimation for growth and
development. While by having the better development and also have their customer from various
demographic the company can have much profits. Tesco organization seems to be that many of
the new customer have registered for the shopping 76% of the sales have been increased and
make sure about the various kinds of level in which they can have their high quality of products
and services. Hence, this might be also important for having the better development for which
the company can easily have their better growth and make their position for better marketplace.
Patel and et.al., (2021) said that, when the customer wants for having the better products
along with the services they can found the social trends organization. It means they prefer to
those organization from which they can get the social trends and make their lifestyle much better.
While through which they can easily have much benefits and also make sure about the various
kinds of thing that could be important for the organization. Tesco have taken the major steps
while for having the better customer satisfaction and also make sure about the various kinds of
products for their customer. While through which they can easily achieve their goals and
objective for the year. Quality customer services means for making accommodation for all
customer while for including the customer special needs.
According to Heroy and et.al., (2021), many of the company have set up their business
through online from which they earn the large amount of the sales and make their organization
for having the better growth and development. While through which the Tesco have also set up
their business major through online and make the proper use of technology in which they can
make their more customer. Along with this also important while for working with having the
technology in which they can have digital marketing and better marketing communication.
Furthermore, this might be also important in having their better estimation for the growth and
sales that can increased. The challenges for staff and their motivation and satisfaction level
which might be order for address in organization. Tesco have taken much time for making them
development in which they cannot make sure about their employee working at their organization.
When the Tesco have taken their place in selling the large grocery products and make their more
grocery store in various countries. As they have also adopted many of the technology in which
they make sure about their high impact and positive thinking for the people.
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Antón-Peset, Fernandez-Zamudio and Pina (2021) view that, in grocery store the
company have to keep the large products for making their customer satisfaction. While through
which Tesco can set up their business in various countries with having the online services for the
people. Along with this also hired the valuable and capability employee for which they can have
the better market position. The organization can also make sure about the high quality and
costing products for their customer. While through which they can easily have their business
through online and have the business in various countries for which they might be make their
employee for working with the well-developed skills.
Horoś and Ruppenthal (2021) said that, company must have the business online from
which they can make sure about those things which might be important for them in knowing
about the value for the customer. Tesco have also taken the major steps towards their customer
for having the more range of the profits and make sure about the value. As they offer coupons,
loyal card and membership card for the customer from which they can easily have their better
opportunities for which they have increased the sales and take the better market position. The
employee must be important part for having the better completion of the tasks and make their
customer for having the large impact over their business in which they can make sure about the
various promotion activities for which they can make the marketing communication.
Sales performance using business intelligence in grocery shops
Nehaychik (2019), said that, in present time the business needs to have more technology
through which they have the better sales for the organization. Alongside, this might be also
important for having the business online and make their business for working with the high
positive impact over the products and services. Business intelligence in the company play the
important role for which they can have the business for communication with their various range
of customer and make their more strategies for having the better estimation in sales. The
marketing communication for the organization must be strong from which they can make their
sales performance much better.
As per Bawack, Wamba and Carillo (2021) view that, in having the business intelligence
that could include the effective more decision making in which they can make sure about the
various thing which might be important in having the better estimation for sales performance.
The organization can adopt the high technology for having the better solution for their employee.
Therefore, this could be also important for knowing the various kinds of technology skill through
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