KIROI Step 3: Big data and smart data - using data as a success factor with a customer example from the retail sector

In the age of digitalisation, data has become one of a company's most valuable assets. The third step in the KIROI (Artificial Intelligence Return on Invest) strategy focuses on turning big data into smart data in order to make well-founded business decisions and gain competitive advantages.

Customer example: ABCDEF Einzelhandel GmbH (name changed due to NDA contracts)

ABCDEF Einzelhandel GmbH, a successful retail chain with shops across Europe, faced the challenge of optimising their sales strategies and responding better to customer needs. The third step of the KIROI strategy helped them to utilise data effectively.

Identify data sources

• Internal data sources: Sales figures, stock levels, customer feedback and loyalty programmes were identified as valuable sources of data.
• External data sources: Market data, demographic information and social media analyses were used to obtain a more comprehensive picture of the market.

From big data to smart data

• Data cleansing: To ensure that the data is meaningful, it has been cleansed and consolidated to eliminate duplicate entries and inaccuracies.
• Data analysis: Advanced analytical tools were used to analyse the data in order to identify patterns and trends that indicate new sales opportunities.

Strategic realisation

• Personalisation: The insights gained enabled ABCDEF Einzelhandel GmbH to develop personalised marketing campaigns tailored to customers' individual preferences.
• Optimisation of inventory management: By analysing sales data, the company was able to manage its stock levels more efficiently and avoid bottlenecks.

This example shows how companies can increase their competitiveness through the targeted use of data. Use these insights to make data-based decisions in your company too.

Result:

Thanks to the use of smart data, ABCDEF Einzelhandel GmbH was able to improve its sales strategies, strengthen customer loyalty and increase its sales. Data-based decision-making has reduced costs and increased efficiency.

The third step of the KIROI (Artificial Intelligence Return on Invest) strategy illustrates how important it is to filter out the relevant information from the multitude of available data and utilise it in a targeted manner. Companies that effectively convert their data into smart data can optimise their business processes and gain a decisive advantage.