2010 Readers' Choice: Demand Data Analytics

David Wechsler, managing vice president, Consumer Products Industry for Hitachi Consulting, notices that the number of larger companies on the list grew. As demand data analytics and especially DSRs become more widely adopted, larger companies will be stepping in with their offerings. Whether they build or buy will be the real news in 2010.

CGT: How has the economic downturn impacted initiatives in this area?

Wechsler: The recession slowed down the number and moderated the size of demand-driven process projects, but has not stopped. The number of "pilot" projects multiplied in 2009. 

CGT: What trends in this area will impact the industry?

Wechsler: The consolidation of software providers: Microsoft, Oracle, SAP, and one or two best-of-breed survivors. Repeatable methods and tools to effectively scale DSR efforts; this will include not only cleansing, harmonizing and synchronizing, but also attributing the data to meet internal company hierarchy and data relationship needs. Demand-driven decision making becomes realistic. Current efforts are mostly focused on getting the data usable. Once this is a repeatable process, then using the data will take on strategic importance.

CGT: Is a centralized approach to data and insights realistic or will departmental silos continue to dominate?

Wechsler: Departmental or narrowly defined efforts will occur for three reasons:

1. Momentum: Current successes are just now coming online based on pilot projects. Scaling these projects to prove enterprise level success will take most companies through 2010 and beyond.
2. Learning Curve: When data is available across the retailers that represent 70 percent or more of volume, then the real learning starts.
3. Retailer Laggards: Although some retailers have made daily data available, few other major retailers have done so yet. Limited data access through 2010 will slow current project capabilities to demonstrate full value.

However, pilot projects are expected to emerge in other departments in parallel with the lead projects (typically stock-out and forecasting specific) in that company. Marketing and trade promotions are two areas that could experience quick improvements.

"Being in-stock on the shelf and during promotional events is critical to winning the first moment of truth with our retailer's shoppers. P&G views downstream data and Retail Solutions suite of applications as key enablers to better serving our consumers, collaboratively with our retail partners."
-- Paul Rieger, Associate Director, P&G Supply Chain Innovation

SMB MARKET: IRI

"IRI's vast experience over the past two decades has brought forward the critical analytics and information foundation required. The IRI Liquid Data platform and Advantage portfolio of applications integrate forward-looking market and business analytics into an innovative and insightful solution for optimizing processes and results."
-- Mark Smith, CEO & EVP, Ventana Research