When Simplicity and Value for Money beat fancy analytics
Lots of lessons to be learnt from Tesco’s fall from grace. Pretty much every big data and analytics presentation or story you heard in the retail world showcased TESCO as the gold standard.
No one knows quite what went wrong, as all of Tesco’s assiduous segmentation, customization, personalization and targeted promotion counted for little against a simpler experience and better prices from the likes of Aldi and Lidl. HBR’s article on Tesco’s downfall a warning to all data driven retailers is interesting reading on what transpired and what lies ahead for the future of Big Data and Analytics in the retail world
Which side are you on, the schadenfreude gang that says “I told you, big data and analytics isn’t a sustainable competitive advantage!” or the Datanauts who still think that “if done right, big data and analytics have a lot to contribute to enterprises” Whatever side of the fence you sit on, one thing is for sure, we are definitely in for some interesting times ahead in the big data and analytics world.
A bonus question for the Datanauts, “What does doing it right, really mean? Especially in light of the fact that Tesco for a long time was the poster child of the correct use of Big Data and Analytics !” Perhaps the answer to this question lies in how you use insight and analytics to be genuinely useful to the customer, don’t just help yourself.
Nitesh Dudhia is a business technology enthusiast who spends his time thinking about how enterprises can improve performance and derive better outcomes using disruptive technologies.