Tanya Long, COO Argility -retail concepts and resources

Predictive analytics lights the way

ajustus Apr 19, 2024 Data-driven Decisions, Predictive Analytics, PredictRetail, Retail

Retailers and brands can realise the immense power of data-driven decision-making by using predictive analytics to glean faster insights.

By Tanya Long, CEO – Argility Technology Group

Previous articles published on ITWeb have explored some of the challenges and solutions for retailers’ consideration to limit the impact of load-shedding on operations. The Industry Insights examined how technology, augmented by partnering with trusted suppliers, can be used to help navigate this, but there is more that can be done.

There has been a radical change in production, supply chain and consumer behaviour which cannot be ignored. And here is where we lean on the technology innovations of this century: artificial intelligence (AI), machine learning, predictive analytics and cloud
solutions.

It is true that predictive analytics is not a crystal ball; however, the immense power it can give retailers and brands cannot be ignored.

To use a casino analogy as an example: Let’s say you play roulette. In years gone by, one would watch the tables, evaluate the trends of each croupier, and then decide at which table you would take your chance with your R100. Imagine if someone had whispered to you – ‘Table 1: 65% probability on red, 35% probability on black’. What decision would you have made? And if an insight like this was given every 15 minutes, would you have been inclined to include this in your next decision for action?

Predictive analytics is not a crystal ball; however, the immense power it can give retailers and brands cannot be ignored.

This is the advantage that predictive analytics can provide. In a nutshell, it is the power of data-driven decision-making.

With machine learning, fluctuating behaviour can continuously be used to understand supply and demand patterns with a speed that is incomprehensible when compared to five or 10 years ago. The traditional software approach was to create the system rules based on the known rules; however, with the increased landscape complexity, an intelligent approach is to use machine learning to identify the patterns and provide much deeper insight.

It’s often said the beauty of AI is that it never sleeps – it works 24/7 – just what is needed to help us in our current economy.

Retailers and brands now have the ability to glean faster insights from multiple inputs relating to stock availability, pricing, placement and customer demand.

Predictive analytics uses the principle of small, compounded gains. For example:

What positive impact would be experienced by having a 2% increase in stock-on-shelf availability?
What impact would be gained by having a 2% increase in cash flow due to lowering of aged stock surpluses?
What would a 1% increase in gross profit mean, if stock prices were able to be speedily and strategically managed by considering pricing appetite and competitor pricing across a basket of products?

Now, I realise all of this takes data, and prevalent discussions in the media has raised the question: how much data do I need? When do I start using analytics? The general consensus is if one hasn’t started yet, you are already backfooted.

The advent of cloud has given the ability to store and process petabytes of data, cost-effectively and without excessive hardware investment. It has also given us the ability to scale easily with increasing/changing needs and to leverage off always-on infrastructure provided by global players.

What problems can predictive analytics solve?

Let’s start with the concept of demand forecasting. In the old days, stock and sales forecasting were generally formulated based on moving averages. Today’s retailers would be ill-advised to continue in the same vein. Predictive analytics can add immense value in this area.

Another area that predictive analytics can play a huge role for retailers is focusing on customer patterns. Not only for personalisation by getting the right product in front of the right customer, at the right time and right price, but also to evaluate the change in shopping behaviours.

Using machine learning for clustering and segmentation, identifying purchase habits and preferred products would streamline a personalised recommendations strategy.

In a credit retail environment, the additional insights on areas such as propensity to buy and customer lifetime value has the potential of elevating prospecting efforts. Anticipating customer needs would definitely not only assist retailers on building customer loyalty, but also decrease the cost of spray-and-pray marketing efforts.

Labour management is another area where data and analytics can play an important role in improving operational efficiencies. One cost pressure which may be within a retailer’s control is looking at optimal workforce levels.

Gathering data on speed and accuracy of staff performance can allow retailers and brands to streamline their operations to efficiently meet fluctuating business demands.

These are by no means where the use-cases end. I suggest commencing in an area where there is a compelling business challenge and in which one can measure and refine the results in order to take appropriate action.

Business and project sponsor support is vital for success, although I believe many stakeholders would rather be proactive and stack the odds in their favour.

Source: IT Web

Customer Experience; shaping future today

Argility Drives for Greater Success through Customer Experience Insights

ajustus Apr 12, 2024 Customer Centricity, Customer Experience, Customer Service, CX

Johannesburg Wednesday 10th April, 2024: The Argility Technology Group (ATG), part of the Data and Technology cluster arm of global enterprise, Smollan, has revealed details of its drive to deliver even greater customer value through enhanced service levels.

“We believe that placing our customers at the forefront of the actions and decisions we make is key to building a client-centric strategy and culture. In this regard our customer experience (CX) mission for 2024 is to improve client experiences across the board through feedback, best practices and calls to action that aim to address customer pain points,” says ATG Chief Executive Officer, Tanya Long.

In this regard, Ms. Long confirms the 2024 ATG CX survey of its customer base is well underway.

“Global research guru, Gartner, notes effective customer feedback surveys feature many moving parts and note survey question development and distribution to be crucial to accurate interpretation of data and obtaining useful insights. The research house surveyed 250 customer service leaders across all major industries to identify their most pressing priorities and key challenges for 2024. Improving the customer experience was the most cited priority, followed by employing analytics for voice of the customer (VoC) as well as improving operations. It further found that 75% of organisations have proved that customer satisfaction leads to revenue growth through increased retention or lifetime value.

Ms. Long says high service levels and consistent customer experiences are the name of the game in any industry. “In our constant drive to improve our client centric culture we take a community approach to enhancing CX levels. Collectively, through a community comprised of staff and customers, we share and learn from best practice approaches and real-life examples that drive proactive communication and planning with our clients. We have introduced relevant tools, frameworks and processes as well as encouraging a space to share and learn. This allows us to better build and adjust our action plans in response to client feedback.”

Ms. Long says the group has identified the top ten habits of client centric companies as follows:

Listen to clients.
Constant monitoring of client feedback.
Act proactively to anticipate client needs.
Build customer empathy into processes and policies.
Respect client privacy.
Share knowledge internally and with clients.
Motivate employees to stay engaged.
Act systematically to improve CX.
Create accountability to enhance CX.
Adapt to customer needs and circumstances in real time.

Ms. Long confirms ATG is well underway with its 2024 CX evaluation programme that extends through to the end of the third quarter this year. “Again, Gartner highlighted 2024 as the year for businesses to use technology to make progress in three key areas namely:

Self-service – given the propensity of younger customers to give up if they cannot solve a problem themselves.
Generative AI – with organisations increasingly taking an incremental approach to the deployment of employee facing generative AI use cases, e.g. chatbots to aid representatives.
Customer journey analytics providing businesses with a deep comprehensive understanding of customer needs.

“These insights and guidelines emanating from global markets are useful trends for SA companies. We have designed our 2024 survey to encompass questions around data and technology quality plus value for money. The information we expect to receive from such a detailed and structured CX survey will be invaluable to our ability to service our clients into the future,” concludes Ms. Long.

Source: IT Web | Intelligent CIO

Deep dive into impact of IT infrastructure failure

ajustus Apr 3, 2024 Costs, IT Infrastructure, Loadshedding, Retail, Technology

It is important to understand that almost all IT infrastructure is susceptible to failure when there is a sudden loss of power.
By Keenan Naidoo, Argility divisional system manager, ATG

While the obvious impact of load-shedding is literally a matter of keeping the lights on, the ripple effect of the power outages is a deep one for retailers that have incurred:

Significant increased costs due to investments in backup generators, fuel and water storage facilities. Research shared by Trade Intelligence states that organisations allocated millions of rands to provide facilities that ensure operational continuity.
Increased prices for goods and services being passed back to consumers due to these added costs.
Stock shortages and decreased ability to fulfil demand forecasting needs. Disruptions in manufacturing processes results in delays in production and reduced output. Stock outages impact on revenue targets and customer experience.
Different shopping habits in certain verticals, specifically in FMCG. According to a survey conducted by Chirp and Trade Intelligence, 70% of shoppers reported their grocery purchasing and food preparation approach has changed.
Decreased consumer spending due to increased costs and economic uncertainty.

Retailers are a resilient bunch, and there is a saying from Brene Brown that vulnerability spurs creativity. Apart from investment in backup power solutions, the following are some of the interesting measures that retailers have taken to cope with the impact of load-shedding:

Adjustment of business hours to facilitate trading to times when power is available, thereby reducing reliance on backup power sources.
Enhancement of customer in-store experiences due to backup power planning and approach.
Change of route to market strategies by streamlining supply chain.
Creative approaches in the prevention of passing costs across to the consumer.
Adoption of predictive analytics to cater for adjustments of inventory, pricing and promotional strategies to meet the changes in product and shopping patterns.
Adoption of cloud always-on technologies like Google Cloud and Google Workspace to limit the impact on systems, payment structures and operational teams, while improving security.
Development and focus on business continuity plans to prepare and manage grid impacts.

Let’s take a deep dive into the impact of IT infrastructure failures. These system failures occur when there are either no backup power solutions available or they fail. This situation is usually amplified by the absence of procedural shutdown processes. It is important to understand that where there is a sudden loss of power, almost all IT hardware is susceptible to failure, especially equipment with moving parts.

Hard disks and solid-state drives

Data and its integrity is considered one of the most valuable and important assets within the IT infrastructure; therefore, the failure of storage mediums pose the highest risk to retailers. For example, most furniture retailers run a fully operational back-office which allows them to trade when networking systems fail.

The back-offices provide a full feature set within the store environment if there is no networking, and this is dependent on data being stored on-premises, on servers. The most economical way of storing data is on hard disk drives that utilise spinning magnetic disks.

Peripheral devices can also fail when there is a loss of power, which can sometimes leave the business inoperable.

This is a mature, well-tested approach; however, due to the age of the technology, it is ultimately dependent on the availability of power. When there is a sudden power loss, in-process transactions fail. This can lead to data integrity issues or file system corruption. There are redundancy solutions that can be implemented; however, these are also dependent on power so the solution can update.

In recent years, retailers have been making the switch to solid-state drives (SSD). While still prone to failure due to power outages, the speed at which SSDs process transactions means that in-process transactions are given the best opportunity to finalise.

Component and peripheral failures

Component failures include IT components like motherboards, power supplies, chipsets, etc. When these occur, they can leave the system totally incapacitated; however, the chances of these failures causing a loss of data or corruption are miniscule.

Moreover, retailers usually have agreements in place with vendors to replace broken components as soon as possible. This in turn reduces downtime but of course, as with everything – this comes at a cost.

Peripheral devices can also fail when there is a loss of power, which can sometimes leave the business inoperable. Certain peripherals are cheap enough to keep spares; however, larger items such as enterprise printers are extremely expensive and can cause delays in business operations. These failures have no impact on the loss or corruption of data.

Effects of failures on the retailer

There are numerous costs that retailers face in the event of IT infrastructure failures – these can be described as tangible and intangible.

Tangible costs include:

Replacement or repair cost for the equipment.
Service provider call-out fees, plus professional time and material costs.
Providers’ software restoration fees – again plus time and material costs.
Loss of revenue generation activities due to downtime.

Intangible costs include:

Brand damage in the face of retailers with no backup systems in place. This can have serious negative impact on consumer confidence in the brand.

Service providers to retailers must ensure their resources are geared up and adequate enough to cater to the increasing demands placed on them due to failures related to load-shedding.

Retailers seeking technology providers should look for companies with dedicated teams that aim to meet their needs in project management, development management, business and systems analytics, software development, and support specialists.

In our business, we regularly see the rise in disk failures entirely attributable to load-shedding. Retailers need to look to suppliers that have innovative, developed solutions that assist businesses in mitigating the negative effect on their ability to operate. They must seek solutions that aim to drive value by preventing other costs related to failures, which are triggered by load-shedding.

Source: IT Web

Load-shedding: Powerless retailers – Pros and cons of backup infrastructure

ajustus Mar 11, 2024

South African retailers must innovate their own power backup solutions if they are to mitigate the disastrous impact of load-shedding.

By Keenan Naidoo, Argility divisional system manager – ATG

Load-shedding has sadly become part and parcel of everyday life in South Africa and in the past 24 months, it has become a daily occurrence.

IOL News revealed that during 2023, the country experienced only 12 days without load-shedding. This is a staggering statistic that has seriously impacted SA’s business sector.

The same IOL article, with statistics compiled by EskomSePush and The Outlier, revealed that load-shedding had occurred for a record-breaking 332 days.

In 2022, this figure was 205 days, with 67 of those reported to be rated stage six. This means the country was without power for 72.6 days in 2023 – more than double that experienced in the previous year and almost 10 times as much as 2021.

Government has approved the use of independent power producers and has signed agreements with some; however, the contribution to the national grid has been negligible.

The country was without power for 72.6 days in 2023 – more than double that experienced in the previous year.

Moreover, there has been little or no improvement in the load-shedding situation, which means South African businesses must innovate their own solutions if they are to mitigate the disastrous impact of load-shedding.

There are a few options businesses can consider, including generating their own power, either entirely off the grid or generating just enough to satisfy power needs during load-shedding.

Backup power solutions and hardware failure

All electrical equipment is susceptible to failure when there is a sudden loss of power. IT equipment is particularly vulnerable, as there are many more components relying on a procedural shutdown to prevent damage and loss of data.

In terms of the retail sector, let’s focus on furniture retailers as an example. This section of the retail community usually sets up stores in shopping malls, which include lifestyle centres, factory outlets, power centres, and community, neighbourhood and convenience centres. Rarely does a furniture retailer set up a store on its own land with its own infrastructure.

The advantage of establishing a brick-and-mortar store within a mall is that the power and backup power infrastructure is usually provided by the landlord, therefore, limiting what the retailer must provide for rudimentary requirements.

It needs to be added that certain types of malls, usually on the lower end of the scale, do not provide backup power infrastructure. In such cases, the onus is on the tenant to provide their own solutions.

Basic (historic) backup solutions

Most major retailers within South Africa have historically had basic backup power solutions in place within their brick-and-mortar environments. These are uninterruptible power supply (UPS) systems which last only for a short period of time. This allows the system operators enough time to shut down the IT systems properly to avoid failure and data loss.

There are pros and cons to this solution. Let’s start with the pros:

It is relatively economical versus the cost of losing data.
As this was the historical basic standard, trading would continue manually and then later be captured onto the system once power was restored.

Cons:

UPS does not allow trading during extended periods of interrupted power supply.
The potential for loss of business is greater where customers are unwilling to sit through a lengthy manual process.

Business-owned backup power solutions

In malls where the landlord does not provide a backup solution, or where the retailer has a store on its own premises with its own infrastructure, it would own and architect a proprietary backup power solution.

These solutions, while costly to implement, put full control into retailers’ hands. They would then manage their power requirements and expenses to reap the best returns on their investment from the power solution.

Intelligent power management systems would have two or more power sources, and these are configured to switch between grid power and the next available power source.

The retailer would usually implement a combination of a standalone UPS, or a UPS built into the power management system, which would mitigate the loss of power when it shifts between power sources.

Again, there are pros and cons to this situation.

Pros:

Retail is in full control of its own power needs.
Risk of data loss, hardware failure or loss of business is almost always mitigated.

Cons:

High upfront costs.
High fuel costs of running on diesel.

When a tenant leases a space from a mall, it can opt for usage of the centre’s backup power systems as part of the lease but obviously also always at an additional cost. These costs are usually dependent on the usage.

The upfront costs of implementing these solutions are covered by the malls, with the retailer normally implementing only a basic backup power plan within the store to mitigate fallout when the mall’s systems switch between power sources.

Again, there are positives and negatives to this approach. On the positive side it means no upfront implementation costs and usage can be monitored to stay in line with budgets and/or expense management.

However, the downside is that high utilisation can drive costs up during peak trading periods.

In my next article I will reveal the benefits and possible caveats of backup solutions provided by landlords/malls.

Source: IT Web

Reflecting on our Corporate Social Responsibility in 2023: Making a Meaningful Impact

ajustus Feb 8, 2024 Corporate Social Responsibility, CSI, CSR, Giving Back

In 2023, our company embarked on a journey to extend our Corporate Social Responsibility (CSR) efforts beyond mere philanthropy. At Argility Technology Group (ATG), we aim to give back and make a tangible and sustainable impact on the communities we serve, not only those in which we live but also those who are not as fortunate as us, while aligning our initiatives with our core values.

The ATG family is all about positive change and making an impact.

We focused on addressing pressing social challenges through strategic partnerships, innovative projects, and dedicated resources, extending our support, love and heart to various initiatives. Let’s delve into the highlight of our corporate social investments and the transformative outcomes they yielded.

Donations to help people irrespective of age, race or creed:

CHOC – An NGO that aims to provide support to children with cancer and life-threatening blood disorders and their families.
- Our donations helped to provide much-needed treatment for low-income households who cannot afford it.
Johenco Old Age Home – A BPO that cares for older persons to promote active ageing and support them to live a life of quality and dignity.
- We purchased a solar geyser and panels to give senior citizens warm water in the Winter and reduce their electricity costs.
Angels Baby Sanctuary – An NPO that takes care of abandoned, abused and orphaned babies by providing a place of safety and meeting all their needs.
- Our donations sponsored five babies with food and care.
Action for the Blind and Disabled Children – An NPO who makes a difference in the lives of those less fortunate. Blind and disabled young people receive education free of charge.
- We updated their PCs with the necessary software and licences to enhance learners’ learning experiences.
Alex Hospice & Rehabilitation Centre – A PBO in the Alexandra community that cares for people who are infected and ravaged by HIV/AIDS.
- Our donations sponsored much-needed primary healthcare for patients who cannot help themselves.

Further donations extended to helpless, abandoned and abused animals:

Cheryl Lyn’s Rescue Organisation – An NPO that rescues abused, neglected and lost animals with the aim of rehabilitation and re-homing.
- Our donations helped feed the animals and provided needed vaccinations and medication.
Hellen White in the Community – An NPO that assists the community with education in animal care, responding to animal emergencies with veterinary support and paying bills.
- Our donations helped feed the animals and provided needed vaccinations and medication.

As we reflect on our corporate social responsibility in 2023, we take pride in our transformative impact on individuals and communities. By aligning our CSR initiatives with our values and business objectives, we’ve demonstrated our commitment to being a responsible corporate citizen and driving sustainable change. Looking ahead, we remain dedicated to continuously innovating and collaborating with stakeholders to address evolving societal challenges and create a brighter, more equitable future for all.

“We may make a living by what we get, but we make a lifewith what we give.” Winston Churchill

By Wanda Kriel – ATG People Lead and Special Projects

Staying In The Loop – How A South African Tech Startup Is Leveraging Google Cloud To Optimize Its Processes

ajustus Jan 3, 2024 GCP, Google Cloud, Loop, Partnership

Have you ever heard of the ‘last mile’ in logistics? In a product’s journey from the warehouse to your door, the last mile is the final stage in the process. Not only is it the hardest to get right, and the most time-consuming leg of product delivery, it’s also the most expensive, reportedly accounting for around 50% of total shipping costs. If you’ve ever waited hours for a package that was “out for delivery”, you’ll understand exactly how inefficient this final step can be.

Luckily for the industry, and for customers, a number of new and emerging tools and technologies are being developed and deployed to improve last mile delivery. These solutions make smarter and simpler deliveries possible. Solutions like Loop, a delivery management app that is optimizing and shaking up the logistics space by improving the interactions between everyone across the supply chain – from the business and the driver, to the end customer.

Loop was founded by Kimberley Taylor, who came up with the idea for the business while completing a university assignment. She was asked to solve the traditional travelling salesman problem– the salesman has to visit every city on a list starting from a particular location and ending at the start location.

The challenge is to minimize the length of the trip by finding the most efficient route. Solving this route optimization problem opened the door for Taylor to ask even more questions about the visibility and communication issues that exist within the delivery space. And she immediately knew that there were a number of problems that needed to be solved.

Despite describing herself as a “non- technical founder”, Taylor wanted to create a ‘piece of tech’ to help the industry improve their operations and streamline these processes. When looking for the right solution to bring her idea to life, she was introduced to Google Cloud Platform (or GCP) by the development house she was working with at the time and quickly realized just how well-suited GCP’s tools and technologies were to her needs.

“To be honest, I didn’t really know any better back then, but in hindsight, I’m insanely grateful for the recommendation because, from the beginning, GCP was very easy to use and intuitive for someone like me who isn’t very technical,” she explains. “I think that this was just one of those steps on my journey where I got a bit of luck – I met the right people and found the right tools.”

Starting out in the fast food and on-demand space, Taylor learned a lot about the difference between what she dubs ‘difficult’ and ‘easy’ logistics.

“I quite naively thought that fast food was easy logistics but I was very wrong because you have such a short amount of time to do a delivery and there really is very little room for error,” she says.

But Taylor is quick to note that this was actually a huge blessing in disguise because it meant that the Loop platform had to offer real-time data capabilities, as well as greater visibility and scalability from the very beginning. Delivering on these requirements was made possible, in large part, by GCP.

For her, the different Google Maps APIs have proved incredibly helpful because it allows Loop to access live traffic and distance data in real-time from anywhere around the world; the alternative would be to build and source its own database, which would have prevented Loop from getting to market as efficiently as it did.

All of the data powering the platform is stored on BigQuery, Google’s data analytics warehouse. It allows them to analyze and better understand the massive amount of logistics and customer data it generates and captures each day. In addition, Taylor leveraged Looker Studio to bring data together and create customizable and informative reports and dashboards; a capability she had promised to a client early on in her entrepreneurship journey.

“When you’re selling and you’ve never built a piece of tech before, you often promise more than you should,” she says. In Taylor’s case, she told a client that Loop could provide advanced data analytics capabilities, with dashboards to showcase what the data meant, but she wasn’t sure how to actually deliver on this promise. “Honestly, Looker Studio was the most amazing tool,” she says, noting that she has witnessed the tool grow and evolve into something even more powerful over the course of the seven years she’s been using it.

“I’m not a developer but because the Google platform is so intuitive and easy to use, I could go into the backend and look at error logs without having to bug the developers every time I had a question. The process of using GCP has been insanely empowering for me.”

So, how does Argility, part of the Smollan Data and Tech Cluster and a top Google analytics partner through Digicloud Africa, come into all this?

Having successfully made a name for themselves in this space, Taylor and her team realized that they needed a little extra help growing and improving their processes, without dramatically increasing their costs. For Japie Saunders, Head of IT & Infrastructure at Argility, the challenge was to make sure that Loop has the right infrastructure in place and that the overall layout of the business is set up in a way that it can grow securely and fully comply with different regulations and requirements.

“Often, start-ups don’t have the know-how or the right guidance when it comes to something like security. This needs to be addressed before the business gets too big,” he says. “For Loop, this meant organizing projects using a clear hierarchy, with different tiers of staff allocated to different projects, so that they can refine access and only allow the right people to access certain information.”

Beyond this, Taylor notes that having a partner who really understands Google’s suite of products in detail, including security, has been invaluable. “We haven’t had this before,” she says. “Because they understand how to put things together in a smarter and more logical way, they are helping us to identify creative ways to up our efficiency and minimize our costs.”

According to Taylor, on average Loop sees a 20% reduction in kilometers driven with route optimization, i.e. determining the best sequence for the delivery of a series of orders. And when route optimization is combined with route planning – the step before route optimization which determines the best vehicle to use given the number and size of orders that need to be completed – this 20% increases to 30%.

Similarly, when you give customers greater visibility around where the driver is, you can reduce the amount of time they spend with a customer by 50%.

While Taylor acknowledges the power of digital solutions and technologies, she points out that tech for the sake of tech is just silly. “At the end of the day, it’s cool to have the best tech but you need to understand that people really want to make money or save money. They want results.” That is exactly what Loop delivers.

Markets can also find themselves becalmed from time to time, sometimes for years. Tweak the portfolio around the fringes then too, if necessary, but keep the bow pointed forward and wait for the market winds to pick up again.

Investment portfolios are lifelong vessels that do not demand constant attention. Staying the course and adhering to long- term goals is vital to ensuring financial stability and allowing investors to enjoy the sunset of their lives without the reliance on “two- minute noodles.”

Source: Forbes Africa

Google Cloud helps Argility boost SA retail competitiveness

ajustus Nov 6, 2023 BigQuery, DigiCloud, Google Cloud, Partnership, Retail

Issued by DigiCloud

Argility Technology Group, a Digicloud Africa Google Cloud partner, is helping local retailers transform their operations, grow margins and become more competitive using solutions built on the Google Cloud.

Argility CTO Marko Salic says advanced digital technologies are key to enabling large retailers to overcome today’s top challenges. “Local retailers are grappling with supply chain disruptions and increasing supplier costs that erode their margins, so they have to find ways to make their operations more efficient. They also have to overcome the customer loyalty issue – modern consumers switch stores at the click of a button. Retailers know they need to improve customer experience to differentiate in a competitive market, but understanding what that means and actually achieving it can be difficult,” he says.

To help large retailers overcome these challenges, Argility has built software and technology to transform business and increase margins. “A 1% increase in revenue or reduction in costs is significant for retailers turning over billions of rand,” Salic notes. “Our technology is helping retailers achieve improvements of up to 6%.”

Argility solutions help retailers harness predictive and prescriptive analytics to process data at a massive scale, to support better decision-making and make processes more efficient. “It allows large retailers to innovate, become more competitive and improve margins by doing more with the same resources, or the same work with fewer resources,” he says.

Salic outlines Argility solutions designed to make predictive analytics easier for retailers.

“PredictRetail is our AI-powered pricing, inventory, customer and sales analytics platform focused on high-value use cases of machine learning and predictive analytics for retailers and brands. Its PredictPrice module uses historical sales data, complemented by scraping and matching competitor prices, to analyse price elasticity of demand and determine optimal pricing strategies. It allows retailers to identify the sweet spot of what customers will be willing to pay,” he explains.

“The PredictInventory module helps forecast and segment more accurately, so retailers can more accurately predict what will sell in which store on which day, predict earlier when stock will run out and forecast which stock won’t be sold at all. The gains depend on the maturity of business, but for the vast majority that still rely on spreadsheets built up over decades, using machine learning algorithms for inventory prediction can improve accuracy by around 10%. PredictInventory can improve accuracy by 2%-5% for those using specialised inventory tools.”

The PredictCustomer module enables personalisation using a recommendation engine offering products customers are likely to want. Salic says recommendations – crucial for the success of retail giants such as Amazon – can be used to improve sales wherever organisations have customer data. “This could be through online shopping or loyalty programmes. With personalisation and recommendations, retailers can significantly enhance sales and the customer experience. In a recent implementation in India, our customer increased sales volumes by 6.3% based on personalisation.”

Argility says the Google Cloud, BigQuery enterprise data warehouse and the Vertex AI machine learning (ML) platform underpin the company’s ability to innovate and achieve faster time to value for its customers.

Salic says: “The entire platform has been developed as an extension of Google Cloud, using their data analytics tools and services. At the platform’s core is BigQuery, which hosts all our input and output data. The BigQuery TCO was lower than its competitors, and because it is a completely managed service, it allows us to focus on business requirements instead of managing infrastructure.”

“BigQuery is incredibly scalable. This is important for us because we work with massive volumes of data – tens of billions of rows per month.”

Another key advantage of BigQuery is that it uses SQL syntax, which meant that Argility’s team could lean on their decades of experience and get straight to work. “They didn’t need to retrain and reskill, they could just hit the ground running,” Salic says.

Argility uses Vertex AI to manage the end-to-end machine learning life cycle. Salic says: “We wanted one platform, a managed service we could deploy, and start implementing the business logic. So by combining these two platforms, we could do the job of 20 people with just 10, and we no longer needed large infrastructure teams. We shut down our two data centres and moved everything to the Google Cloud, resulting in significant savings. This has enabled us to become more competitive, develop and deploy solutions faster, and achieve faster time to value.”

Argility aims to continue harnessing Google innovation to improve its portfolio. For example, Salic says Google’s image recognition models could prove useful for the group’s Smollan business, which focuses on point-of-purchase retail solutions. “For big brands and retailers, merchandising is crucial. To ensure the shelf displays and pricing are correct, merchandisers and shelf packers take photos and feed them back to the servers; however, ensuring that the photos match the planograms can be complex and costly. Integrating this process with a Google model could simplify our processes significantly,” he says.

Source: IT Web

45 Years of Technology Innovation

ajustus Oct 27, 2023 45th Birthday, Celebrations, Innovation, Milestone

A Tribute to the Argility Technology Group and the ATG family by Tanya Long, ATG Chief Operating Officer.

I always smile when I see our monthly internal posts celebrating the Argility Technology Group (ATG) staff work anniversaries, even more so in these times when the war for talent is a reality. The fact that collectively the tenure of the current team recently clocked in at 1078 years, speaks volumes about a business that in 2023 is celebrating 45 years since its founding.
In the evolving technology arena where companies come and go – do you remember the .com bubble that shot up in the ’90s when Argility was already rounding off its second decade of operations – many of those organisations are now firmly in the realm of ‘whatever happened to them’. Businesses came and went with what was later referred to as .bomb – a burst bubble indeed. But a few shining stars continued to develop and endure the test of time – Argility is one of those rare performers. The business has withstood and grown through a remarkable journey of 45 years of innovation, technological advances, and in doing so, delivering a transformative impact on our world and the success of our customers.

Since its inception Argility has been at the forefront of retail technology advancements, consistently pushing the boundaries of what is possible. Decades of long, prosperous customer relationships bear testament to ATG’s customer-centric culture, exceptional service, and innovative thinking. With each passing year, the company has risen to new heights shaping the digital landscape, and revolutionising various industries through the supply chain including retail, fleet and warehousing. All of this has filtered down to the enhancement of daily lives of both ourselves and our customers, in ways we could have never imagined.

Let’s take a quick walk down memory lane.

Circa: 1978 – point of sale (POS) – where it all began.
Circa: 2011/2012 – By this time, the company’s software was powering more than 6,000 retail operations internationally.
Circa: 2015 – Argility was a driving force behind digital eCommerce. Argility’s Omni Channel Business Solutions Framework and Single Customer View were providing a single customer data repository augmented by consistency of customer data across multiple channels.
Circa: 2016 – Argility was firmly established as a driving force in digital transformation.
Through IoT and real-time analytics, Argility became an enabler for customers to acquire a single view, across all channels including mobile, online, in-store and call centres. Argility was not only a leading digital transformation specialist but the first choice provider of converged traditional and digital commerce capabilities across a wide range of industry sectors including: financial services, retail and enterprise.
By 2017 – The Argility Technology Group was solving complex business problems by supplying and supporting various customised software solutions such as POS, ERP, Warehouse, Fleet and IoT management software, Proximity Marketing and more.
Circa: 2018 – ATG was the leading innovator and implementer of customised enterprise software solutions including all the foregoing plus Prescriptive Analytics and more.
By 2019/2020 – Artificial Intelligence (AI) had entered the picture and ATG was supplying and supporting various customised software solutions including all the foregoing plus Data Science/AI and Machine Learning (ML) solutions.
By 2021 Smollan entered the picture and in 2023 finalised its acquisition of ATG into the global group.

At the heart of ATG’s success lies a relentless commitment to excellence. Argility has been unwavering in the pursuit of retail and digital commerce solutions, which has yielded game-changing products and services that have become integral parts of our lives and advancements for our customers that enabled them to stay a step ahead of the competition.

The path we’ve walked since the early days has been nothing short of extraordinary. We’ve seen software evolve from punch cards and huge data centres to cloud computing, AI and the intricate, digital ecosystem we navigate today. We’ve embraced change, adapted to new technologies, and continuously redefined our offerings to meet the ever-evolving needs of our customers.

Impressive technological achievements aside, the Argility team has also been a champion of positive change. Through our corporate social responsibility initiatives, we have demonstrated a deep commitment to making a meaningful difference in society. Whether fostering diversity and inclusion, addressing socio-economic challenges of the previously disadvantaged, supporting the growth of our nation’s youth or empowering communities, Argility has consistently shown that our vision extends far beyond a balance sheet.

Beyond the code and the algorithms, what truly sets ATG apart is the people who have been the heart and soul of the organisation. The driving force behind the remarkable ATG story has always been our talented and resolute workforce. Comprising some of the brightest minds in the industry, our people have embodied the spirit of collaboration, pouring their creativity and passion into solving complex problems, pushing boundaries together and bringing their collective capabilities to bear on shaping the future with technology. Each individual past and present, has made ATG a great place to work and their contributions to our success, sustainability and growth, have been immense. Through their countless hours of dedication, passion, expertise, creativity, and unwavering commitment to excellence, they have propelled ATG to become the successful business it is today. Armed with experience, wisdom and a clear vision, we are enthralled with the possibilities that lie in the future.

In conclusion I would like to borrow a phrase from the great 19th century poet Robert Browning:
“The best is yet to come.”

Argility Winning the Java Talent War and Leading the Way

ajustus Oct 25, 2023 Digital Transformation, JAVA, Talent, Work Culture

ATG’s successful collaboration with Java Training leader – VZAP – by Keenan Naidoo, Argility Divisional System Manager.

The battle for tech talent has intensified in today’s competitive digitally transformed landscape, with Java skills emerging as a crucial differentiator. These skills remain scarce in the country, posing major challenges for organisations who need to stay ahead of the curve in the digital era. We firmly believe that by bolstering our technological prowess, we can contribute not only to the growth of our business but of the industry as a whole by equipping our local workforce with the tools they need to thrive.

These initiatives take various forms, including comprehensive technology training, workshops, and seminars led by industry experts. By providing opportunities to enhance skills and upgrade general capabilities, we ensure staff are positioned to tackle the challenges of today’s fast-paced digital business environment.

We recognise the importance of a supportive and collaborative work culture in nurturing talent. Our employees are our most valuable asset, and their development is pivotal to our overall success. By investing in that, ATG is not only empowering our people with the skills they need to excel but also fostering a culture of innovation and continuous learning. Ryan Hanson, Best Buy, once said – “I believe that the talent that we need for tomorrow exists within our organisation today,” which sums up our approach at ATG. We work hard to provide an inclusive environment where our people have access to online and face-to-face learning programmes, cross-functional collaborations, and knowledge-sharing platforms. Through these initiatives the group encourages the exchange of ideas, expertise, and collective growth.

We have tailored a specialised programme that directly caters to our group’s unique requirements. Unlike generic training programs, our focused initiative is designed to enhance our current capabilities, aligning closely with our solutions and software. By investing in this approach, we make sure our people acquire the exact skills needed to excel in their roles, thus creating a pool of talent primed to tackle the challenges of today and tomorrow.

The reskilling of our highly trained technical staff in Java has proved to an immensely successful collaboration with VZAP – renowned in IT for the quality of its Java training courses. These are geared for both first-time programmers as well as experienced developers looking to up-skill or cross-skill to Java.

Our people possess incomparable domain knowledge, technical skills and experience with our iRIS platform team alone boasting more than 340 years combined retail experience – a record, not many companies can boast. The business took a strategic decision to dip into this phenomenal tech reservoir and reskill in areas specific to our wider tech stack requirements and with rewarding outcomes for both our people and our company.

VZAP was only too happy to cater to ATG’s bright bunch of candidates and provided specialised short training courses in an atmosphere of collaboration with input from the Argility team to create individualised content. We knew what we needed, and our VZAP lecturers displayed great enjoyment in delivering it. They embraced the challenge of tailoring the curriculum to meet the needs of our teams with vigour and enthusiasm.

Gregory Guy, VZAP Senior Lecturer noted: “As we navigate this educational journey together, I find myself savouring every minute of it. ATG’s hard work, inquisitiveness, and commitment to learning creates an environment that fosters growth and mutual respect. We look forward to hosting more courses and collaborations with Argility in the future and believe their candidates are achieving great success going forward with their new skill set.”

We concur with that and envisage a future where our workforce possesses a deep well of Java and Google expertise, enabling us to deliver innovative solutions and maintain our competitive edge.

By continuously investing in our people’s growth and development, we are securing their professional success and contributing to the overall progress of our organisation plus the wider industry.

Contact Information:

Website: www.vzap.co.za

Email: java@vzap.co.za

Tel: +27 11 447 6620

ATG investment in employee training, development

ajustus Oct 9, 2023 Employee Training, JAVA, Upskill, Work Culture

These initiatives ensure ATG is winning the Java talent war.

The Argility Technology Group (ATG), part of the Data and Technology cluster arm of global enterprise, Smollan, has revealed details of its vision for the growth of the organisation through continuous investment in staff education programmes tailored to address specific skills gaps and align with the company’s strategic business objectives.

These initiatives take various forms, including comprehensive technology training, workshops and seminars led by industry experts. By providing opportunities to enhance skills and upgrade general capabilities, ATG ensures staff are equipped to tackle the challenges of today’s fast-paced digital business environment.

“ATG recognises the importance of a supportive and collaborative work culture in nurturing talent. Our employees are our most valuable asset, and their development is pivotal to our overall success. By investing in their development, ATG is not only empowering them with the skills they need to excel, but also fostering a culture of innovation and continuous learning. ATG provides an inclusive environment where staff have access to online and face-to-face learning programmes, cross-functional collaborations and knowledge-sharing platforms. Through these initiatives, the group encourages the exchange of ideas, expertise and collective growth,” says Faith Mangwane, ATG People Partner.

“At the core of ATG’s investment in its people is a deep-rooted belief in the inherent potential of every employee. The company provides career development pathways and promotes internal mobility, encouraging individuals to explore diverse roles and expand their professional horizons within the organisation. By nurturing talent from within, ATG retains top performers and cultivates a dynamic and motivated workforce,” adds Mangwane.

She confirms current training programmes in progress at ATG include:

- Retail4U-based Java training.
- Google Professional Certifications.
- Data literacy.
- Soft skills for EQ, conflict management, coaching.
- Junior, mid and senior management.
- Leadership and more.

Collaboration with Java training leader – VZAP

Keenan Naidoo, Argility Divisional System Manager, says one such initiative is the re-skilling of highly trained technical staff in Java – the widely used programming language for coding web applications.

For this exercise, ATG engaged with Van Zyl and Pritchard, commonly known as VZAP, renowned in the IT sector for the quality of its Java training courses that are geared for both first-time programmers as well as experienced developers looking to upskill or cross-skill to Java.

“Our people possess incomparable domain knowledge, technical skills and experience, with our iRIS platform team alone boasting in excess of 340 years’ combined retail experience. ATG took a strategic decision to dip into this phenomenal tech reservoir and re-skill in areas specific to our wider tech stack requirements.

“The battle for tech talent has intensified in today’s competitive digitally transformed landscape, with Java skills emerging as a crucial differentiator. However, these skills remain scarce in the country, posing significant challenges for organisations seeking to stay ahead of the curve in the digital era. We firmly believe that by bolstering our technological prowess, we can contribute to not only the growth of our business, but of the industry as a whole, as our local workforce are equipped with the tools they need to thrive,” says Naidoo.

He confirms ATG has tailored a specialised programme that directly caters to the group’s unique requirements. “Unlike generic training programmes, our focused initiative is designed to enhance our current capabilities, aligning closely with our solutions and software. By investing in this targeted approach, we ensure that our employees acquire the exact skills needed to excel in their roles, thus creating a pool of talent primed to tackle the challenges of today and tomorrow,” he adds.

Gregory Guy, Head Lecturer, VZAP, confirms that collaboration is key to any business success story. “So, it’s always refreshing to have a bright bunch of candidates to train and the Argility team have been just that. We offer specialised short training courses and having the input from the Argility team in creating individualised content to service their resources has been extremely helpful. They know exactly what they need for their team and our lecturers are enjoying delivering it to them. The challenge of tailoring the curriculum to meet the ATG team’s needs has been both invigorating and immensely rewarding.

“As we navigate this educational journey together, I find myself savouring every minute of it. Their hard work, inquisitiveness and commitment to learning creates an environment that fosters growth and mutual respect. We look forward to hosting more courses and collaborations with Argility in the future and believe their candidates are achieving great success going forward with their new skill set,” says Guy.

According to Naidoo, ATG envisions a future where its workforce possesses a deep well of Java and Google expertise, enabling the technology innovator to deliver innovative solutions and maintain its competitive edge. “By continuously investing in our people’s growth and development, we are securing their professional success and contributing to the overall progress of our organisation plus the wider industry,” Naidoo concludes.

Source: IT Web

Leadership moves at Argility Technology Group

ajustus Sep 13, 2023 ATG, Leadership, Smollan

The Argility Technology Group (ATG) – this year celebrating 45 years of operations and latterly owned by Smollan, has a new CEO. Tanya Long takes over the role from Marko Salic, who now moves to the position of Chief Data Officer (CDO) for the Smollan Data & Technology cluster and Chief Technology Officer (CTO) for ATG. Both appointments are with immediate effect.

Long, previously COO of ATG, is immensely experienced in the technology sector, where she commenced her career in 1988 supporting point-of-sale solutions. She moved formally into software development with UCS/Argility in 1989 as a developer, and progressed through to team leader – account management, project plus development management roles, which led her into various industries and corporations. She boasts three decades of experience at ATG, having begun as a Ceres developer. Her progression in the company saw her move into various roles and across many different clients. In the past seven years, she has served as COO and HR executive working alongside Salic to build and execute ATG’s vision for the group. “Tanya’s deep knowledge and care for the people, products, customers and processes, plus her passion to ensure ATG is filled with a skilled, engaged team of the best technical experts, has been instrumental in creating the organisation that ATG is today,” says James Collett, Smollan Chief Executive: Data & Technology.

As CEO, she will assume responsibility for all teams other than Data Science. Salic will continue to support Long during a transition period and will obviously remain available to the ATG teams from a CTO, leadership and advice perspective.

In moving to the position of Chief Data Officer (CDO) for the Smollan Data & Technology cluster and Chief Technology Officer (CTO) for ATG, Salic will retain his current Data Science portfolio and will continue to lead the relevant teams. “Marko will also continue to drive and evolve the Google partnership and will also assume responsibility for the senior data engineers within the DataOrbis South Africa team. Marko’s primary focus will be to serve as Smollan Data & Technology CDO and to lead the development of our data/AI strategy, thereby evolving our data science and advanced analytics offerings across the cluster,” says Collett.

He further confirms that in moving to the position of CDO/CTO, Salic returns to his first love – technology. “He is an innovator, a passionate technologist as well as a respected leader with a strong followership. Marko has led ATG into a new era. His leadership augmented by his technical expertise, has been at the forefront of the evolution of Argility into a group of five software businesses focusing on software and data analytics solutions for retailers and brands. More recently, Marko has driven the integration of ATG into the Smollan Tech and Data cluster, matching ATG’s technical expertise with the Smollan retail and data powerhouse to create a new phase for all involved in the disruption of the retail landscape.”

Collett notes these appointments bode well for exciting times to come where ATG will continue to push boundaries and be the company of choice for retailers and brands in software solutions.

Source: IT Web | CIO-SA | Intelligent CIO

Château Gâteaux optimises delivery process through ATG’s MultiTRAX

ajustus May 31, 2023 Customer Service, Deliver Management, Delivery and Scheduling, Delivery App, Digital Transformation, Last Mile Delivery, Management Module

Château Gâteaux, ‘The Cake People’, now in its 25th year of supplying gourmet cakes across SA, has optimised its delivery processes with the MultiTRAX delivery application from the Argility Technology Group (ATG).

With 20 outlets and still growing, Château Gâteaux has implemented the solution in its primary locations – Johannesburg, Pretoria, Cape Town and Durban – to streamline deliveries and allow customers to track their celebration treats delivery in real-time.

Stefan Terblanche, ATG’s Client Success Manager, says the newest features to MultiTRAX include enhanced Management Module functionality such as:

Improved delivery file integration;
KPI dashboards with graphical driver and customer metrics;
Improved map views including optimised route numbering;
In-depth self-service driver and customer reporting functionality; and
Estimated time of arrival (ETA) visibility to control room staff across all deliveries in a delivery schedule, allowing effective communication with the customer while goods are in transit.

Château Gâteaux vehicles make up to 25 deliveries daily. The company, therefore, implemented MultiTRAX to ensure optimal delivery efficiency.

“The MultiTRAX system integrates customer delivery data from the Château Gâteaux e-commerce site, validates address quality against Google Maps and then allocates the daily deliveries to the nominated driver. A critical dependency of the system is quality and address validation at the point of input by the customer. Because the accuracy of the address data is crucial for seamless navigation by the driver, the address validation feature simplifies user capture ensuring tighter control and fewer delivery failures. Another benefit of MultiTRAX is that delivery notes are digitised in logical process flows and are immediately made available to the control centre through the MultiTRAX Management Module, ensuring delivery note real-time availability to control centre staff,” says Terblanche.

The MultiTRAX Management Module allows the central delivery control room to view and track the driver’s progress on the optimised delivery route. Review of previous delivery routes and obtaining a better understanding of driver productivity is enabled through the Management Module. Extensive reporting regarding all delivery activities, per driver, is available to the central control room through the selected MultiTRAX reporting parameters.

Terblanche explains that MultiTRAX is a customer-centric delivery application that keeps the customer informed of the delivery progress. Customers can view the driver position and ETA via their smartphones and each delivery is concluded with a digital customer satisfaction score entered by them onto their phones. This helps Château Gâteaux to gain a clear picture of its customer satisfaction levels. Driver inefficiencies can be promptly identified to allow for performance improvement on highlighted areas of weakness based on specific customer scores and celebrations of what ‘good’ service looks like.

Geospatial stamping on all deliveries will allow Château Gâteaux to analyse and clearly understand their selling and delivery areas.

Michelle Crafford, Château Gâteaux Operations Manager, says MultiTRAX has provided a much-needed solution for its e-commerce delivery service. “We are obsessed with excellence and mastery of everything we do. Due to the nature of our products, it is important for us to deliver each handcrafted cake to customers as efficiently as possible. Not only has MultiTRAX provided us with an easy-to-use system, which optimises our delivery routes, they have also enhanced our customer experiences through the live tracking feature. Additionally, clients can rate our delivery service, which assists us to ensure that the highest possible standards are maintained,” says Crafford. “Château Gâteaux is a highly valued customer of ATG and we are proud that the power of MultiTRAX is contributing to the continued growth and success of this high-profile South African brand,” concludes Terblanche.

For more information, contact our Business Consultants at 011 712 1300, email info@argility.com or visit our website, www.argility.com

Source: IT Web | IT Online

Stefan Terblance ATG Client Success Manager

The Argility Technology Group Creates New Customer Service Role in the Business

ajustus Feb 9, 2023 ATG, Customer Service, New Appointment

The Argility Technology Group has established a new role in the business – Client Success Manager (CSM) and has appointed Stefan Terblanche, to the position.

Stefan steps into the role with over two and a half decades experience in the retail industry having worked in various areas including operations; business optimisation; strategy and customer service.

The CSM will be tasked with building relationships by acting as the interface between the customer service teams and the company.

This is a very exciting time in terms of ATGs market position and growth. The goal with this new position is to build on the existing strong customer relationships with the objective of entrenching ATGs service offerings to secure and maintain long-term agreements with the group’s client base. The CSM will work closely with ATG’s executive management team and clients to assist in understanding the customer’s needs; business objectives and the most appropriate technology solutions to meet those requirements. As such, the role required an appointee with an in-depth knowledge and understanding of Argility’s full suite of service/solution offerings. Stefan met this criteria having previously been an ATG client and then joining the group as a Retail Solutions Consultant for a number of years.

The appointment is effective immediately.

For more information contact us on 011 712 1300, email info@argility.com or visit our website, www.argility.com

Is it digitisation, digitalisation or digital transformation?

ajustus Feb 9, 2023 Digital Transformation, Digitalisation, Digitisation

In the ‘digi-world’, companies are confusing these terms in ways that short-change the power and importance of digital transformation.

By Tanya Long, Chief Operating Officer – Argility Technology group

There is, of course, no such word as ‘digi-world’ but from the outset, I think you get the drift. What company is not scrambling to keep abreast of the latest digital transformation strategies aimed at effecting significant change in business operations?

You’ll note I don’t talk about companies ‘considering’ digital transformation. The reason for that is clear – the digital horse is well out of the box and any company not, in 2023 (post- the pandemic/remote working and more) in the throes of digital transformation is probably destined for the scrap heap.

But it can be a daunting prospect in terminology alone. We have digitisation, digitalisation and digital transformation. I will outline the differences between them and show how this is anything other than an argument in semantics.

Each one is often interchangeably and inappropriately used, with people using one but then clearly meaning another. I will also shed light on where it is all headed and what it can do for businesses.

Let’s kick off with a definition of each term.

Various sources, including Gartner, describe digitisation as the process of changing information from analogue to digital form, also known as digital enablement. Whereas digitalisation as a term is accused of being fraught with ambiguity, but is defined as the use of digital technologies to change a business model and provide new revenue and value-producing opportunities, it is the process of moving to a digital business.

Each one is often interchangeably and inappropriately used, with people using one but then clearly meaning another.

In short, migrating from analogue to digital: digitisation relates to information, digitalisation relates to processes.

Let’s move on to digital transformation, which McKinsey defines as an effort to enable existing business models by integrating advanced technologies. It allows digital technologies to be integrated into already existing business models, changing the way the company operates and delivers its product or service.

Hopefully, at this point, you are not feeling even more muddled because, as Forbes notes, companies confuse them at their peril. So, as can be seen from the foregoing, all three of these terms have distinct meanings but again, I confirm this is more than an argument in semantics.

Forbes emphasises that in reality, people are confusing them in ways that short-change the power and importance of digital transformation, thus putting the very survival of their organisations in peril.

It explains that a company may undertake a series of digitalisation projects, from automation through to employee retraining, but that is not digital transformation, which Forbes notes is not something that organisations can implement as projects.

Instead, this broader term refers to the strategic business transformation that requires cross-cutting organisational change, as well as the implementation of digital technologies.

Digital transformation initiatives will typically include several digitalisation projects, but again Forbes emphasises that executives who believe there is nothing more to it than digitalisation are making a profound strategic mistake.

Each of these terms is required for different actions/scenarios in a business, but are not enough in themselves to drive the next action. The real distinction is that digitisation and digitalisation are about technology, whereas digital transformation is about the customer, and on that note, all sources are in agreement with Forbes.

Where my opinion differs is that none of the definitions brings disruptive technologies into the picture.

If digital transformation has turned the business world on its head by revolutionising how companies do business with their customers and above all how their customers interact with them, what have disruptive technologies done? Think about it the next time you tap your phone to order a taxi.

So, yes, digital transformation is a reality that businesses today are forced to embrace, plan for, or risk being fired out of the market by competitors that are getting it right.

But it is the digital disrupters such as blockchain, artificial intelligence, the internet of everything and more, that are having the greatest impact.

Of course, all of these terms eventually end up interwoven, with all roads leading to a successful and agile digital transformation implementation – without it, there is little hope of being a market disrupter.

Let’s break down what’s driving digital transformation and what are the caveats on the journey.

Unquestionably changing consumer demand is at the top of the list. Customers today have the power of choice that is enabled by digital technologies, and they wield it like a weapon and quite rightly so.

Service, convenience, user-friendly interactions are all top of their – not a wish list – but rather their demand list.

Changing technologies and evolving competition in markets where businesses capable of embracing change and focusing more on customer-driven strategies are capturing, keeping and growing their businesses. Companies with the vision to transform and in doing so, see opportunities before they turn into imperatives for sustainability are winning.

Two factors are highlighted as the biggest obstacles to successful digital transformation journeys: poor change management and not focusing on the crucial customer experience.

Strategic planning that aims to apply digital technologies – across all aspects of the business – is essential if companies are to meet ever-changing customer demands.

Digital transformation is about removing customer effort and frustration, being relevant and providing hassle-free convenience. It is the ability to be agile and take a holistic look at the entire customer experience.

In a nutshell and to again refer to Forbes, we digitise information, we digitalise processes and roles that make up the operations of a business, and we digitally transform the business and its strategy.

Source: IT Web

Tanya Long, Chief operating officer, Argility Technology Group.

Long has 30 years of industry experience. Her career in the IT sector started in 1988 in IT support for point-of-sale solutions. She moved formally into software development with UCS/Argility in 1989 as a developer and progressed through to team leader, account management, project and development management roles, which led her into various industries and corporations.

In 2017, Long returned to Argility (having previously worked at the company in a technical capacity) as human capital executive, where she reunited her retail, IT, leadership and HR knowledge to drive her zeal for transformation.

In her capacity as COO, Long is responsible for overseeing operations, with a specific focus on human capital, sales and marketing, and ensuring the company culture and vision shows up daily for customers through an engaged technical team of experts.

The right people key to realising data analytics potential

ajustus Jul 5, 2022 Data Analytics Team, Data Science, Data Team

Everybody is waking up to the power of data, but there’s less understanding of how to create a data analytics team that delivers results. Spoiler: it might not be necessary.

By Tanya Long, Chief Operating Officer, Argility Technology Group

Data has emerged as the new gold in the digital world, offering businesses and even governments the opportunity to understand clients/citizens and markets better, and to develop new products and services that will drive profitability. However, it seems too many organisations see technology as the key to the world of data.

As always, technology is important but it’s by no means the complete solution. When it comes to data, it’s the right human skills that make all the difference − human judgement and acumen simply cannot be substituted. So while companies are prepared to spend large sums on acquiring data analytics software, they should actually begin by focusing on how to build the right data analytics team.

The first thing to realise is that these skills are in short supply. Data science has become one of the hottest jobs globally − the third best job in America in 2022, according to Glassdoor.

Locally, there is also high demand for data scientists. The opening of large new data centres by companies such as Amazon and Microsoft have hoovered up those with data skills, as have international projects such as the Square Kilometre Array and MeerKAT.

Another big factor in the local skills shortage is that data scientists can work remotely with great success; local skills are finding work in global markets.

The outsourcing option

Bearing the skills shortage in mind, companies should first conduct a rigorous business case for creating a data analytics capability in-house. The data analytics outsourcing market looks set to grow fast − Grand View Research predicts a 22.8-plus% compound annual growth rate between 2018 and 2025, driven by a combination of the importance of data analytics and the difficulties of creating and, crucially, maintaining an effective data analytics team. This trend is growing in the wake of COVID-19 and the growing acceptability of remote working.

The opening of large new data centres by companies such as Amazon and Microsoft have hoovered up those with data skills.

Here are some factors to consider when looking at the desirability of forming an in-house data analytics team, or opting to outsource it:

Multiple skills needed. Data analytics is complex and one skillset is not sufficient. An ideal team would include a data engineer to oversee the extraction of data, a data scientist who uses hard mathematics to write algorithms to derive insights and predictions from the data, and an analytics engineer, who translates data science into business analytics, thus linking the data scientists and data engineers. Other key roles include a visualisation expert to make the data easily usable by the business, a business analyst who interprets data to provide reports, a business product owner to link the business and analytics teams, and a data scrum master to ensure effective development practice.

Overhead increases. The previous point should clearly show that managing a complex team like that to ensure it is effective and delivers a return on investment is going to be a significant burden. In tandem, costs, including HR and equipment costs, will also be under upward pressure.

Requirement for new domain knowledge grows rapidly. Technology and new data types are constantly emerging, business models and markets are changing more rapidly, and so new tech and business skills will need to be developed and then retained.

In today’s markets, speed is of the essence, so individual growth needs to be continuously developed and accessed rapidly. Businesses of today are increasingly pressured to ensure their team is constantly doing interesting work, growing their skills and engaged.

Being one of the most sought-after skillsets, retention of solid machine learning and data science skills should be a business priority. The same point can be made with respect to the kind of reports and problem-solving needed to support decision-making processes − the reporting and analysis universe within the organisation needs to be carefully curated to ensure it is fit for purpose.

In summary, outsourcing effectively passes the burden of setting up, managing and maintaining an effective data analytics function to a specialist partner, leaving the client free to focus on what the data is saying and then devising strategies accordingly.

Going the in-house route

It is often suggested that outsourcing data analytics is indicated for companies that have great volumes of data, whereas companies with smaller amounts of data might be more suited to developing their own data analytics teams.

There is no hard and fast rule; everything will depend on the company’s strategy, and particularly its ability to manage and sustain the complexities surrounding its data and required capabilities.

Whatever avenue is chosen, a key first step is to develop and support an organisational data culture. The data team, insourced or outsourced, will only reach its full potential if the organisation as a whole understands what data it has and what it can do.

Organisations must also deal with the perception that analytics will be used primarily to automate business processes and so eliminate jobs whereas, in fact, the real value is increased ability to develop new products and services that drive growth. This needs to be made abundantly clear.

As noted above, a good data team requires multiple skills. While the specific recipe may vary, a crucial role that must be filled is the interface between the data specialists and the business.

Expense, both initial and ongoing, is always an issue. Efforts to build an in-house data team should begin small with specific business cases and proceed in an iterative fashion to build momentum and acceptance.

A related point is that no return on investment will be obtained if the basics are neglected − as with all data projects, the problem is not the amount of data but its utility. The first step must always be to consolidate all the data in one place and ensure it is clean and properly modelled.

Data and the ability to use it to generate insights is central to remaining competitive. Is your organisation ready to take on the task of developing its own specialised data team, or does it make more sense to outsource this function to specialists?

Published: IT Web

Tanya Long, Chief operating officer, Argility Technology Group.

Getting there: Key success factors for retailers

ajustus Jun 10, 2022 Data Analytics, PredictRetail, Retail

Success Factors: Using data analytics to become truly customer-centric is now within reach for retailers, but they need to adopt a focused approach with a clear plan − or risk failure.

By Tanya Long, Chief Operating Officer, Argility Technology Group

This article builds on the argument made in my two previous articles that data analytics, and especially the emerging capability to perform predictive analytics, offer retailers a genuine opportunity to reinvent themselves as customer-centric organisations, deepening customer loyalty and enhancing profitability in a volatile marketplace.

As always, though, nirvana isn’t reached in a day, and there are numerous pitfalls along the way. In this final article, I want to look at how to successfully make the move to becoming a data-driven organisation, rather than one that relies on intuition.

Based on my experience in the industry, the following key success factors need to be integrated into the plan:

Avoid grand projects and keep an open mind. It’s imperative to move away from grandiose projects led by IT, to which some corporates appear addicted. A much better approach is to focus on iterative projects led by the business that are less risky and allow the organisation to learn as it goes. This in turn means being open to changing tack as the data dictates − we have to be open to what the data is telling us, and act accordingly.

Understand data needs. It is also important to recognise that most retailers already have all or most of the data they need − don’t waste time and money trying to get at the data you want (or think you want).

In line with my advice in the first point − take baby steps, survey the existing data and work with that, at least in the beginning. That said, it is vital to take the necessary steps to ensure the data to be used is clean and reliable; the old “garbage in, garbage out” mantra holds good.

Set goals − actionable insights are key. A related point is that it is easy to fall in love with the data and embark on data-related projects that are interesting but that don’t deliver any real benefits. A disciplined approach is vital, and a data project must be aimed at generating insights that are actionable.

Knowing everything there is to know about a customer segment for itself is ultimately counter-productive. A better approach is to identify what information is needed to reach a strategic goal or make a better decision.

A disciplined approach is vital, and a data project must be aimed at generating insights that are actionable.

It may be interesting to know a customer’s preferences in the abstract, but it is only valuable when aiming to leverage that knowledge in order to get the customer to buy while they are in the store or on the website. An important element is speed: the actionable insight needs to be generated rapidly so that action can be taken in real-time.

Change the corporate culture. If the retailer is going to become customer-centric, just acting on insights is not enough. The whole organisation has to change its focus or predisposition − everything everybody in the company does or says must be founded on the customer.

For that to occur, a vital first step is for everybody to understand the direct link between customer-centricity and the bottom line (and thus, in turn, on benefits, job security and the rest of it). Segmenting customers in terms of their lifetime value to the company, and how much it costs to acquire and then service them, will help to make the business case for data projects. It’s particularly important that the CFO is involved so the return on investment for specific data projects is well understood.

Another central part of the new culture is a shift towards making decisions based on evidence only, not on emotion.

Use the growing understanding of the customer intelligently. My main point here is to ensure the customer experience is well designed in light of this knowledge and is constantly being refined via a feedback loop that links into strategy and operations. Every interaction with the customer, including those undertaken by software, must be linked to data.

Leadership must be on board. A profound change like this will not succeed without strong leadership. It is a vital step to get the leadership team on board and motivated.

Pay due attention to talent management. The customer-centric retailer needs staff who have the right skills. Specifically, this means access to specialists like data scientists but generally an ability to solve problems and follow logic becomes critical.

Make sure the technology is in place. As should be clear by now, technology is not a silver bullet, but it does need to be in place. Storing, processing and analysing fantastically large amounts of data depends on technology, and the building blocks must be solid.

Develop a pilot to demonstrate the value of predictive analytics to the organisation. There’s nothing quite so powerful as a successful project. It remains important to make the case for data’s role in helping the company to become more customer-centric and why that would be beneficial but give the project the best chance of succeeding by carefully designing a pilot project that can be relatively quickly deployed to show what you mean.

Retailers face a set of tough challenges in the short- to medium-term. Only those that harness the power of data to help them understand the challenge and craft effective responses will survive − as will those that understand this is not a quick dash, but a journey undertaken with an open mind.

Published: IT Web

Tanya Long, Chief operating officer, Argility Technology Group.

Is customer-centricity in sight for retailers at last?

ajustus May 31, 2022 AI, Customer Centricity, Data Analytics, PredictCustomer

Data analytics—and particularly predictive analytics—can give retailers a significant edge in an industry that is rapidly changing.

By Tanya Long, CEO, Argility Technology Group

In my first article, I looked at data and the opportunity it offers to businesses and other organisations in general terms.

I argued that by learning to use data effectively, companies could not only understand the past better, they could also develop strategies with a much higher chance of success because they are based on extrapolations from real facts and not feelings or gut instinct.

I also made the point that retail is a sector in which this kind of data-driven decision-making holds particular promise. In this article, I want to explore why this should be, and what the benefits are.

First, let’s take a look at some of the retail trends and how they are in turn driving the shift to a data-centric approach.

As we emerge from the COVID-19 pandemic, it’s becoming clear that the move online which we have seen building over the past decade or more has considerably strengthened. Four of the five most valuable retail brands in the world are now online merchants – Amazon, Apple, Google and Microsoft, with the fifth, Visa, also heavily involved in the online world.

Real-world shopping remains important, of course, but the enforced move to digital channels during lockdown has had an effect: in the past six months, 65% of consumers made a purchase from a physical store – but 78% had purchased from Amazon, 45% from a branded online store, 34% from eBay and 11% from, of all things, Facebook.

The move online looks irreversible, especially when one considers these amazing figures relating to each generation’s preference to buying goods from a physical store: Baby Boomers 31.9%, Millennials 31%, Generation X 27.5% and Generation Z 9.6%.

In other words, Generation Z represents a step change, and it’s hard to imagine that the cohort that follows it will not continue along the same trajectory.

Blurring boundary

Retailers can draw two major conclusions from these and similar findings. The first, obviously, is that they had better have an online strategy; the second is that the line between the virtual and real is blurring in consumers’ minds.

By this, I mean that consumers not only want to move seamlessly between real and virtual channels and have the same experience on all, they no longer see a reason why the convenience and personalisation they are already getting online should not be replicated when they visit the store.

In the end, the retail experience can slowly become a collaboration between retailer and customer.

Among the multiple implications of all this, data emerges as a common thread. The digitalisation of the retail environment online means that a considerable amount of data is generated, which can be used to refine the customer experience and to improve the business processes.

But the same information can be used by retailers with real-world stores to adapt steadily their in-store environment by leveraging the lessons of online.

For example, beacons can be used to make the in-store customer experience much more personalised, mimicking to some extent the online experience. Beacons are essentially communication points that prompt customers to log in via their mobile devices to receive useful information such as where to find a certain item, or what specials are running.

Mobile phones have a crucial role to play in the digitalisation of real-world shopping and in bringing the virtual and real together. Research shows that half of shoppers use their phones as an in-store research advisor.

Mobile devices can also be used to offer more convenient, highly personalised ways to pay—it’s a fact that a large percentage of customers (almost 30%) abandon the purchase during the payment phase, so improving it makes a lot of sense.

A more sophisticated approach would be to allow customers to upload their shopping list so that the most efficient routing through the store can be prompted via the beacon, offering special deals at appropriate points.

As in the online world, this data can be used to refine the whole environment, making it more efficient and profitable for the company, and much more engaging for the customer.

In parenthesis, I want to emphasise the important role that data can also play in running the business, thus indirectly contributing to serving them better. The use of digital technologies across the supply chain is another topic, but again will generate a lot of useful data that can be used to improve the business in all sorts of ways.

Another avenue to explore would be the BOPIS (buy online, pick up in store) model, which some customers prefer.

Becoming customer-centric

All of these digital innovations have one thing in common: they generate large amounts of data about customers that offer retailers a golden opportunity to learn more and more about how to serve them better and deepen their loyalty.

In the end, the retail experience can slowly become a collaboration between retailer and customer.

At a very practical level, data analytics will enable much more accurate segmentation, moving away from the crude living standards measure (LSM) to customer lifetime value (CLV), customer acquisition cost (CAC) and cost to serve.

The latter three measures allow not only a more granular understanding of customers but also of their value/ potential value to the business, and so how much to invest in them.

Once one starts thinking about data and how it can help retailers truly transform the way they do business, to put the customer at the centre of everything, it’s clear that the sky is the limit.

However, as always, there are some caveats to bear in mind and I will look at those in my final article.

Published: IT Web

Tanya Long, Chief Operating Officer, Argility Technology Group.

Furnmart & ATG – A 21-Year-Old and Ongoing Success Story

ajustus May 30, 2022 Furnmart, Partnership, POS, Retail Management System, Retail4U

In 2001, Argility entered into one of its longest running client relationships with Furnmart.

The Argility Technology Group (ATG) – with a 35-year plus history as a leading software developer and supplier to the retail and supply chain sectors, has announced that 2022 will mark the 21st anniversary of its partnership with Furnmart.

Furnmart is a successful retailer of furniture, kitchen appliances, home entertainment and bedding. It operates stores under both the Furnmart and Homecorp brands across Botswana (56 stores), South Africa (50 stores) and Namibia (45 stores).

Shawn Wilsnach, ATG Java Divisional Manager, says the relationship has been both rewarding and highly successful. “It is an interesting history and timeline that spans over two decades with requirements changing as Furnmart grew and developed into the retail powerhouse it is today.

“In approximately 2010, Furnmart recognised the need for a browser-based system that incorporated existing functionality and proven stability, but that could accommodate both its current and future needs. This is when ATG presented its updated Java platform as a long-term future alternative to the original system and together both companies embarked on extensive development to customise the Java systems to Furnmart’s business requirements. Roll-out of that project was completed to all three countries in 2015,” says Wilsnach.

He highlights the fact that Furnmart stores process 133 different types of transactions on the Java system every month.

Wilsnach notes the successful implementation of the Java-based retail management and merchandising system provided enhanced functionality to enable the Furnmart group to continue competing successfully well into the future.

This was part of the overall value proposition of the solution implemented by ATG, which also included:

Data that is easily accessible for use by other applications used in the Furnmart Retail ecosystem;
Services orientated architecture (SOA) that enables easy integration with third-party applications;
Browser-based technology that enables remote access across the business; and
The end-to-end solution was presented on a software as a service (SaaS) – always an attractive billing model with monthly subscription and support fees, and ongoing customised development as required.

Argility designed the system to retain Furnmart’s existing distributed architecture. “Each store has its own servers to enable it to continue trading regardless of whether or not it has network connectivity. When online, these servers replicate back to head office every hour. It also facilitates a full retail and credit solution, and is based on Argility’s deep understanding of, and experience in, the retail business,” he adds.

The Java solution provides additional key benefits to Furnmart. “Data has emerged as a key competitive differentiator in today’s environment because we now have sophisticated new generation analytics capabilities, with artificial intelligence well on its way to becoming mainstream. Furnmart now has an end-to-end system with readily accessible data that can interface with other systems. Argility’s Java solution also provides easy online, real-time interfaces to third-party systems through web services – a growing requirement in the face of the rapidly increasing demand to integrate across multiple specialised systems seamlessly.”

In a retail world where enhanced customer service is the name of the game, Wilsnach highlights the positive outcomes of this long-term relationship for Furnmart as:

Exceptional, online services to Furnmart customers;
Accessible, valuable customer and trading data;
Enhanced efficiencies; and
Superior decision-making based on sophisticated, deep analytics.

“Furnmart’s unique business model meant it was impossible for us to simply use an off-the-shelf application,” says Theo Kukard, General Manager: IT at Furnmart. “A specific issue is the fact that, like furniture retailers across the sub-continent, we also act as credit providers to our customers, something that you don’t find elsewhere in the world. Furnmart’s customer-centricity drives us to ensure that we are always evolving in order to provide positive customer experiences at every touch point.

“We have continued to partner with Argility because they have a deep understanding of the furniture retail business embedded in their solutions and skilled, dedicated teams who provide invaluable support and rapid development of enhancements and new features,” says Kukard.

Argility and Furnmart continue to strengthen their partnership, working closely together to explore new ways of taking full advantage of the implemented technologies with the goal of helping Furnmart expand its highly successful business. This includes ongoing engagement with the Furnmart executive team providing guidance on accelerating digital transformation, enhanced business efficiencies through best-of-breed tech stacks and improved customer engagement.

Source: IT Web

ATG – the next chapter

ajustus May 25, 2022 ATG Memories, New Chapter, Office

ATG the next chapter

By Anja Justus, Marketing Manager – Argility Technology Group

The ATG family has moved to new offices – not too far from our previous space – so we are keeping that great central location.

Our old offices served us well and was a place that saw many innovative ideas come to life yielding unforgettable memories. However, change is the one inevitable aspects of life. We couldn’t be more thrilled about our new space and starting this new chapter.

“Every success story is a tale of constant adaption, revision and change” Richard Branson.

Over the past few months, we were technically ‘homeless’, embracing the home-office way of working, but that is not to say ATG was standing still – we most definitely were not. ATG has undergone many changes during that period. Now after months of preparation and hard work, we have eventually moved into our new domain.

There were several motivating factors behind the move. Yes, our lease agreement had come to an end, but it was fortuitous timing as it encouraged us to rethink how we needed to get ready for the post-pandemic journey and embrace the new future of work.

Onwards and upwards

ATG continues to grow, and we would love to have all our colleagues back in the office. But as a natural step of growth and with the changing world of work due to COVID19 , we had to explore the options of allowing our colleagues to work from across the globe and to complete assignments when and where they feel most productive. So we decided a hybrid/remote working environment was the best model to adopt.

Our new space is slightly smaller than the previous one, but our office features and facilities have had a major revamp benefiting both our customers and the ATG team. Therefore, we now have more greenery, collaboration spaces, and high-tech meeting rooms. What more can anyone ask for?

Now, slowly but surely we are settling in and getting back into the swing of in-person things.

Teamwork

A big shout-out and special thanks to everyone involved who worked tirelessly around the clock and behind the scenes, to successfully transition us into the new environment.

Nothing is stopping us now!

Tech meets nature

Let’s take a brief tour:

First, a warm welcome to Reception, where we will help you find your way.

Next, our office space: An open floorplan concept with hot desks, allowing you to choose the perfect spot where the magic happens.

Many collaboration and innovation spaces are strong features from where creativity and epic outcomes will flow.

Our user-friendly shiny meeting rooms are kitted with the latest technology to ensure we don’t miss a beat, allowing us to connect anywhere with team members or customers.

The Pause and Patio area: A great welcome space for employees and guests – our favourite place to breathe, connect and enjoy a cup of coffee/tea; a place for many celebrations to come.

Last but not least, welcome to The Firs! The hustle and bustle below us keep us sane. With great restaurants within easy walking distance, we can grab a meal or have a team lunch – doing it in style. Sometimes the best ideas happen outside of the office.

ATGs’ new chapter

But more important than any office space – our people – they make our working environment a place of energy and synergy, taking us to new levels of possibilities. We’ve got a great team of innovative, passionate, motivated, productive, creative thinkers and lifelong colleagues – this is the essence of the ATG family.

It has been quite a rollercoaster ride for ATG with many challenges and exciting times – we look at our new space as the start of another chapter in our history.

“In every end is the seed of a new beginning” Liz Hester.

If you are in the area, please pop in and say hello!

Using data to discover the future of retail

ajustus May 19, 2022 Artificial Intelligence, Data, Digital Transformation, PredictRetail, Retail

As business digitalisation continues apace, more and more data is being generated. Retailers need to understand its value and how to leverage it.

By Tanya Long, Chief Operating Officer, Argility Technology Group

Digitalisation has been growing for many years, and the social and business changes driven by the global response to the COVID-19 pandemic have accelerated it.

Hybrid working models that involve increased working from home get a lot of the limelight, but equally significant has been the definitive growth in online retail.

For example, e-commerce in the US increased from $431.6 billion in 2020 to $469.2 billion in 2021, with shopping habits looking like they have permanently changed to include a growing online proportion.

The move towards digitalisation across all industries has resulted in record levels of IT spend. Gartner forecasts that worldwide IT spending will jump by 5.5%, its biggest increase in more than a decade, to reach $4.5 trillion in 2022.

Unsurprisingly, given that data is the major by-product of digitalisation, a hefty proportion of that spending is going on big data and business analytics. Investment was projected to reach $215.7 billion at the end of 2021, with a compound annual growth of 12.8% until 2025.

These are all big numbers but, as always, much of that spend does not necessarily result in bottom-line benefits. There’s a lot of focus on collecting data but turning it into insights that generate business benefits is rather more hit and miss.

Effecting that transformation requires not only a profound understanding of the technology involved but, even more critically, how the particular industry sector works.

Goldilocks technology

It seems as though we’ve been talking about data warehouses and business intelligence forever, and business is littered with projects that never really lived up to expectations.

What’s changed is the emergence of new technologies that make it possible not only to collect and store vast amounts of data, but also to process it to extract valuable information.

Thus far, predictive analytics is not a crystal ball, but if one believes half the hype one reads, that could happen in the distant future.

Perhaps the most important of these is the cloud itself, because it provides a way for companies to access the plentiful and cost-effective storage they need to deposit huge and increasing amounts of data, and also the sheer computing power needed to process and analyse it − think artificial intelligence (AI) and machine learning (ML), both used to turn data into information.

As always, though, technology is only part of the story − and not necessarily even the most important part. The real point is that the cloud’s resources make it possible to mine data for patterns, deploy sophisticated statistical models and create models on which to base decisions.

In short, the real story is data and what it can be used to do. There are basically three ways in which data can be used, namely: to describe, to diagnose and to predict. The first two are backward looking: using data to establish what happened (descriptive), and then to understand why it happened (diagnostic). Both are obviously very valuable and can be used profitably to improve future performance.

However, the real benefits come when one starts to be able to use data to look to the future − what is usually called predictive analytics. It uses AI, ML, data modelling and the rest of them to analyse current data and make predictions about the future.

Of course, one has to understand this approach is predicated on the assumption that the future derives from the past, and thus that the past contains the seeds of the future.

Predictive analytics thus becomes less useful when change is highly disruptive, and also the further into the future one goes. The further forward in time one goes, the greater the tendency to regress to the mean, to become more and more generalised.

Clear benefits

Thus far, predictive analytics is not a crystal ball, but if one believes half the hype one reads, that could happen in the distant future.

But it does offer an evidence-based − or data-driven, to quote the industry jargon − way to identify how the near future is likely to unfold, and what actions a specific business should be taking to defend its current position, or to take advantage of new opportunities.

In this way, it can help an organisation to move away from the challenge of choosing between a large number of 50% probabilities, to choosing between a small number of high probabilities.

This is an extremely valuable strategic tool given the growing complexity of the business environment, and the intense competition fuelled by the globalisation of markets and a volatile economic environment.

All of these combine to create what is known as a VUCA world − one that is volatile, uncertain, complex and ambiguous − and so the company that is able to develop a likely-to-succeed strategy based on evidence rather than intuition is already better positioned than competitors.

In certain environments, organisations have experienced that business intelligence delivers a return on investment of 80%, which just goes to show the importance of data-driven decision-making − but the return can shoot up to 250% when predictive analytics is used.

The reason for this startling increase is that decisions are taken based on the rigorous analysis of fact and not on intuition.

The frustration for CFOs when considering the investment in AI and ML is that actual guarantees on ROI is not set in stone, the statistics come from passageway talk about successful projects. But there is no doubt the success is there and that the benefits abound.

Retail is a particularly VUCA sector because it straddles both the real and digital worlds, and consumers are growing ever-more demanding. For them, as I will explore in my next article, predictive analytics is especially attractive.

Source: IT Web

Tanya Long, Chief operating officer, Argility Technology Group.