What: A piece issued from an initial research published in Harvard Business Review, arguing to review how data is currently processed.

Why it is important: Do less, but better.

Dr. Robert Rooderkerk, an Associate Professor of Operations Management, highlights the challenges and opportunities in retail data analytics. He points out that while data collection has grown exponentially, its real value lies in creating actionable insights, akin to refining crude oil. Rooderkerk's research reveals that retail businesses may not be utilizing data as effectively as academia assumes.

Key findings include:

1. Company Culture: Successful companies have leaders who trust their analysts and embrace agility and experimentation. They also prioritize internal knowledge sharing through platforms like internal wikis and conferences.
2. Organizational Structure: Efficient businesses centralize analytics oversight while decentralizing operations, ensuring clear ownership of analytics to avoid slow and disorganized processes.
3. Talent Gap: There is a shortage of analysts who understand both data and business and can communicate effectively.
4. System Integration: Retailers often struggle with integrating online and physical systems, yet an omnichannel approach is essential for modern retail.
5. Data Management: Data storage costs lead some businesses to discard old data, but successful ones consider the cost of not having certain information.
6. In-Store Data Collection: This is an emerging area with potential. Using technology like image-recognition robots for inventory management and tracking customer behavior in-store can offer real-time insights.
7. Privacy Concerns: While leveraging data for customer benefit, businesses must navigate privacy concerns and comply with regulations like GDPR.
8. Inventory and Returns Management: Smart data use can improve efficiency, such as coordinating inventories between online and physical stores and accounting for online returns.
9. Data Sharing and External Data Use: Collaboration between companies (like supermarkets and beer companies) and incorporating external data (like local events) can enhance efficiency and stocking decisions.
10. Role of Researchers: Researchers should aid businesses in strategic decision-making, helping them address key concerns and optimize based on data insights.

In summary, Rooderkerk emphasizes that while data is abundant in the retail sector, its true potential is unlocked through strategic application, integration of systems, smart management, and overcoming cultural and talent-related challenges.

Information overload?