This IDC Retail Insights report lays out a critical BDA foundation for the next-generation revenue growth–product intelligence and charts the likely rapid evolution of new frontiers of opportunity beyond pricing, its original domain, into promotions, assortment optimization, marketing, market intelligence, and new product development. The report presents a framework for understanding the rapid evolution of successive generations of product intelligence, leading to a new paradigm — participatory commerce. With nearly 50% of retailers already aiming their big data and analytics initiatives at improving pricing, market intelligence, and customer acquisition, product intelligence has emerged as a focused set of BDA capabilities supporting these objectives.
"In particular, one application of product intelligence, price discovery, gives retailers a countermeasure versus the 'spy versus spy' price transparency of retail today," said Greg Girard, program director at IDC Retail Insights. "Consumers have had the advantage with price transparency at their fingertips. Now with price discovery, retailers have the analytics advantage in setting price architectures and product prices," Girard said. Next-generation product intelligence in consumer decision making, competitor tactics, and market conditions will propel BDA-based revenue initiative beyond pricing further into marketing, assortments, buying, and product development. "Price discovery showed up in the guise of high-speed algorithmic pricing as early as the 2011 holiday shopping season," said Girard. By 2020, product intelligence will create opportunities for participatory commerce — marketplaces wherein transactions based on the visible buying, selling, and buying intentions of participating retailers, brands, and consumers will improve merchandise economics, return on promotional spending, and customer satisfaction.
Analytic applications, Big Data analytics and discovery, Customer relationship management applications, Market intelligence, Multifunction peripherals, Pricing and valuation, Supply chain management applications, eCommerce