An effective big data analytics solution is now an essential requirement for any large businessRead More
How Tesco is diving into the data lake
An effective big data analytics solution is now an essential requirement for any large business that wishes to be successful in today's competitive environment, regardless of what sector they are in.
However, one part of the economy that particularly stands to benefit from this technology is retail. These firms have a longstanding tradition of gathering and utilising customer data, so the ability to gain greater insight from the information they already have will play a key role in their decision-making.
One company that has always been at the forefront of this is UK supermarket Tesco. It was noted by Forbes that the company was one of the first brands to track customer activity through the use of its loyalty cards, which allows it to perform activities such as delivering personalised offers.
Now, however, it is turning to technologies such as real-time analytics and the Internet of Things in order to keep up with newer competitors such as Amazon, which is moving into the grocery business.
Vidya Laxman, head of global warehouse and analytics at the supermarket, told the publication: "We are focused on data now and realise that to get where we want to be in five years' time, we have to find out what we will need now and create the right infrastructure."
She added that Tesco is focusing on technologies such as Hadoop, which is central to the 'data lake' model that the company is working towards. This will be a centralised, cloud based repository for all of the company's data, designed to be accessible and useable by any part of the organisation whenever it is needed.
Ms Laxman explained one challenge for the company has been ensuring that the right data gets to where it needs to go, as different departments often need different information. For example, finance teams need details on sales and forecasts, while the customer side of the business needs data that can be used to inform marketing campaigns.
"We have data scientists in all of our organisations who need access to the data," she said. "That's where Hadoop comes into the picture. We've just started on this journey – we've had data warehousing for some time so there are some legacy systems present and we want to leverage what’s good and see where we can convert to using new strategies."
A key priority for Tesco's activities will be to increase the speed of data processing in order to better support activities such as real-time modelling and forecasting.
Under a traditional way of working, it may take nine or ten months just to ingest the relevant data. Therefore, improving these processes will be essential to the success of big data initiatives.
Another factor helping Tesco is an increasing reliance on open source solutions. Mike Moss, head of forecasting and analytics at Tesco, told Forbes that when he began developing his first forecasting system for the company eight years ago, any use of open source required a lengthy approval process to get it signed off.
"There wasn't the trust there in the software," he said. "It now feels like we're in a very different place than previously … Now we have freedom and all the engineers can use what they need to use, as long as it's reasonable and it makes sense."