Research on the Innovation and Development of Retail Industry in Big Data Era

Transcription

1 Research on the Innovation and Development of Retail Industry in Big Data Era HU Lixia Beijing College of Finance and Commerce, P.R.China, Abstract: Big Data era for the development of the retail industry is both opportunities and challenges of the times. Big Data promoting changes are mainly reflected in the retail industry on the Big Data promote marketing innovation, promote management innovation, and promote business innovation and other aspects. Facing the challenges of Big Data Era includes technical, privacy, and statistical analysis. In the Big Data era, how to meet challenges and opportunities of retail industry, innovative management philosophy and approach, and further promote the social and economic development, is the subject of an important theoretical and practical value with research. Keywords: Big Data, Retail revolution, Marketing innovation, Management innovation, Business innovation, Challenge 1 Introduction The era of Big Data, the Enterprise s survival and development environment will be changed, and the value of enterprise creation and distribution will be changed too. According to McKinsey estimates that if retailers can take full advantage of Big Data, which will have an average operating margin of 60% growth, productivity will be achieved average annual growth rate of 0.5-1%. [1] How to meet the retail industry has brought the era of Dig Data challenges and opportunities, innovative management concepts, techniques, modalities, format, etc., to generate new productivity to further promote social and economic development, is an important theoretical and practical value with research. 2 Connotation and Development of Big Data 2.1 The connotation of Big Data Domestic and foreign experts and scholars have various definitions of Big Data methods, currently more accepted definition of the industry are the followings. Baidu Encyclopedia believe that Big Data, also known as massive data refers to the amount of data involved is huge, not by the current mainstream software tools, to capture within a reasonable time, management, processing, and organize to become more active to help business decision-making purposes information. U.S. National Science Foundation (NSF) believes that Big Data refers to data generated by a variety of sources of scientific instruments, sensing devices, Internet trading, , audio and video software, network flow, etc. Click on large-scale, diversity, complexity, long-term distributed data sets. U.S. consulting firm McKinsey report is defined as, Big Data refers cannot be used within a certain time of its traditional database software tools to capture, data management and processing of collections. Big Data valuable to expand the overall retail industry can be divided into two parts: one is big transaction data, namely retail business transactions data, including product data, sales data, operational data, financial data, customer relationship data and market competition data; Second is a large interactive data, interactive data retail business and customer information about that by the POS, Internet, networking, mobile, intelligent terminals, sensors and observation equipment, primarily including social network data, RFID data, time and location data, text data and observation data. [2] China today, from the perspective of the size of the data, Big Data era has arrived. According to ZDNet analysis report, the amount of data in 2013 China produced more than 0.8ZB (equivalent to 800 million TB), 2 times in 2012; to the amount of data generated by 2020 China is expected to exceed 8.5ZB,

2 10 times. On individual companies, Baidu amount of data in 2013 nearly 1000PB, Alibaba nearly 100PB, Tencent about 100PB. Lynx and Taobao system has precipitated a million members of the data, similar to Chow Tai Fook brand so there are millions of members of the data. [3] According to market research firm IDC, the amount of data generated worldwide in 2011 was 1.82ZB, each person produces the equivalent of the world's more than 200GB of data. In the coming years, the global digital information will show phenomenal growth is expected in 2020 will reach global data usage about 35.2ZB. [4] 2.2 The main features of Big Data Big Data has the following main four are as features, referred to as 4V feature [5]. Volume. First, you must have a large volume of data. But how much is considered massive? Currently does not have a defined number, some people think that the general should reach about magnitude scale 10TB. In the digital world, consumer everyday life (communication, internet browsing, shopping, sharing, search) are generating a huge amount of data. Variety. Data can be divided into structured data, semi-structured data and unstructured data. Compared with the previous text-based to facilitate the storage of structured data, unstructured data more and more, including blogs, audio, video, pictures, location information, unstructured data accounts for more than about 80% these multiple types of data processing capabilities of data put forward higher requirements. Value. The value density level of the data is inversely proportional to the amount of data. Body large amount of data is large, but the average value of a single message to a very low, that is, the value of the density is very low. How to complete the algorithm by powerful machines more quickly and accurately the value of data purification is becoming urgent problem of Big Data. Velocity. This is a big distinction between the traditional data mining data most significant features. In addition to the data value associated with the data size, the data is also proportional to the processing cycle. In the face of huge amounts of data, you need to get the information you need real-time analysis. More timely data processing speed, more large value, and more great of the effectiveness of Big Data will be. 2.3 The development of Big Data In the late 1990s, when the meteorologist weather map analysis done, biologists in establishing genome analysis process, due to the huge amount of data, has become unusable traditional computer technology to complete the task, Big Data the concept was discovered by people. As early as 1980, the famous futurist Alvin Toffler in his book The Third Wave wrote, If we say that IBM's mainframe opened the curtain of information revolution, so Big Data is third Wave cadenza. In 2008, with the rapid development of the Internet and e-commerce, traditional means cannot solve the problem of large-scale Internet and e-commerce businesses son of Big Data is the practical application of concepts and technologies of these companies Global into WEB2.0 era, Face book, blog, micro blogging and other social networks, such as the rapid development of mobile Internet, the amount of data further surge. Big Data technologies and applications is unprecedented prosperity. [6] in May 2011, to advocate for cloud computing company known for EMC in the cloud computing meet Big Data thrown out the concept of the annual meeting of Big Data; In June, IBM, McKinsey and other large data published research institutions reported to be actively followed up. At this point, the era of Big Data, as a formal concept gradually entered the public eye and triggered a series of social impact. [7] The U.S. government in promoting the development and application of Big Data is the most rapid and positive U.S. federal government launched the first Big Data action plan, the full deployment of Big Data key technology research and development. Britain, Japan, Australia and other countries are also actively promoting the development of Big Data. Britain will Big Data as a strategic technology in 2013, 189 million pounds for the UK funding Big Data research and development, is the largest funding areas. [8] Since 2012, China s domestic Internet companies and operators in the development and application of the first to start Big Data technologies, such as Sina, Taobao, Baidu and other companies have launched a Big Data pilot application projects. September 2013, the ninth Politburo collective 246

3 study conducted in Zhongguancun, Baidu CEO Robin Li site to explain the large data. Science and Technology Ministry, Development and Reform Commission are special clearly stated support for Big Data projects industrialization. As U.S. President Barack Obama's Committee on Science and Technology (PAST) Consultant, Teradata CTO Stephen Brobst told the Commercial Value reporter put it, the amount of data than in the past 40,000 years in the past three years to produce even more, the advent of the era of Big Data has no doubt we will soon face a revolution, emerging data will become a top priority for enterprise development, while the conventional technology has been difficult to deal with massive amounts of data PB level. Challenges brought about this change are successful business in the future course of development must face and only those who can use these new data types of enterprises in order to create significant and sustainable competitive advantage. 3 Big Data Promoting the Retail Industry Revolution The era of Big Data, Enterprise s survival and development environment will be changed, and the value of enterprise creation and distribution will be changed. Big Data helped promote the retail industry revolution is mainly reflected in marketing innovation, management innovation, and the business innovation. 3.1 Big Data promoting marketing innovation The core concept of marketing is to stimulate demand, grasp the needs and meet the demand. In a market economy, due to the participation of the main trade is diverse, so each customer's needs are also diverse. Only providing consistent with its personalized products and services for different customers is to be able to create greater value. Marketing guru Philip Kotler pointed out: If a brand is not at the level of human spirit is saying to consumers caused by strong spiritual resonance, no matter how the size of the brand in the next five years, it will exit the stage of history. Traditional marketing is through sampling and census data obtained by other methods, to understand customer needs and then stimulate and meet demand. The era of Big Data, these data contain a large number of Internet technology to bring the investigation closer to the real behavior record, these terminals audience used the equivalent of a recording instrument, the consumer behavior and all the real information are all recorded. Companies can more accurately understand the client's psychological characteristics and consumption habits, anticipate customer needs, can do even more than the customer needs to know what they will increase the added value of the new personalized services in the standard basis, thereby more efficiently excite and satisfy customer needs, and this will be the next most important source of corporate profits. [9] Therefore, the exact use of the marketing concept was born. That changed in the past precision marketing channels and marketing methods to the manufacturer's customers and vendors as the center, through the electronic media, build customer, vendor databases telephone, mail, Internet, etc., and through scientific analysis to determine the possible purchase customers, in order to guide manufacturers to change sales strategy for the development of a set of workable sales promotion programs, while providing customers, vendors, tracking services for manufacturers. According to relevant statistics, e-commerce company Amazon has nearly 1/3 of the revenue from the contribution based on the analysis of large data similarity recommendation system. The ebay defines more than 500 kinds of types of data to track customer behavior analysis. Among them advertising optimization projects, since 2007, ebay's advertising sales decreased 99%, the percentage of total sales of the top sellers has risen to 32%. Thus, in the era of Big Data, enterprise acceptance, analysis and use of Big Data, you can create greater business value. In addition, the impact of the marketing system to bring Big Data, not just the amount of data growing exponentially, and from quantitative to qualitative disruptive change, Big Data from the media, consumers, advertising and marketing, strategic planning, impact assessment, etc. the level of influence of the traditional marketing system, so to build a new all-media marketing becomes possible. [10] 247

4 3.2 Big Data promoting management innovation Big Data era has changed the long-standing theory relies on the experience and management decision-making, intuition gives way accurate actual data analysis. From product design, marketing, planning, staffing adjustments to the company's strategy, etc., the data will be used as basis for decision making will lead to further scientific management. Big data context is the role of participants in the decision-making great changes. Traditional decision-making, because the data are scarce, important decisions often rely on high-level business experience and judgment. The era of Big Data, enterprise managers and employees in general, you can more easily get the actual market information, decision-making ability is greatly enhanced. Therefore, an important business decisions, you need leaders and frontline staff fought to raise the scientific level of decision-making. Thus, diverse features more prominent in the decision making big data environment, the source of the broader policy-makers, more diverse roles, relationships and more complex. In addition, the impact of corporate decision-making structure is an important factor in both centralized decision-making, distribution of choice and decision-making decentralized decision-making. From a centralized perspective of decentralized decision making and organizational theory that less affected predictable environment for business organizational processes applied, favors the formation of centralized hierarchical decision-making structures, and in unpredictable environments and enterprises face unconventional case, decentralized decision-making more effective. Under the decision-making environment more complex Big Data, more timely decision-making, decision-making knowledge more widely distributed, decentralized decision-making to become the main form of Big Data decisions. From the perspective of decision-making power distribution, high corporate decision-making and management efficiency, decision-making authority should be allocated to the most appropriate roles. In the era of Big Data, employee master and control the amount of information, the more decision-making power should in theory the larger the number, the trend is flattening the organizational structure reflects people management will be more obvious. Big Data context, because corporate management decision-making environment changed significantly, resulting in management decision-making data acquisition mode, participants in the decision-making, decision-making organization, decision-making techniques, and even the human environment management decisions, have undergone great changes. Therefore, the enterprise need to enhance the innovation management decision-making, thereby enhancing the ability of management decisions, the level and efficiency, and to keep the business competitive advantage in the fierce competition in the market. [11] 3.3 Large Data promoting business innovation Internet Institute of Oxford University Professor Victor (Vikor Mayer-Schǒnberger) noted that Big Data represents a unique society today a new capability - in an unprecedented way, through the massive data analysis, get great value products and services, or profound insight. Value chain is including three parts of the data itself, the skills and the thinking. In this three-part, based on the formation of a new industry. Big data provides a new resource and new capabilities for the retail industry to discover and create new value, and solve new problems provide a new vision and path, it raises the traditional resources, customers, values, structures, relationships, boundaries and other retail remodeling ideas. Use Big Data will bring the destruction of the whole industry chain in some industries, promote generate new products, services and business models. [12] For example, people receiving services, will be digitized and personalized way to present, by means of 3D printing technology and genetic engineering, retail and healthcare industries will also digitize and personalized service; operational data will appear manufactures and markets data, data and data products for the object to get business value through processing and transaction data, data and data products will be on the market as commodities like Taobao is selling and exchange. [13] 248

5 4 Challenges Faced by Big Data 4.1 Challenge of technology applications Large capacity and many types of Big Data processing will bring great changes in enterprise information infrastructure will bring enterprise IT management, services, investment and new challenges in terms of information security governance. Traditional relational database (RDBMS) and Structured Query Language (SQL) data have been powerless to face the big, need more cost-effective computing and data storage technologies and tools are emerging. On the one hand, the amount of data far beyond the era of Big Data alone can accommodate the amount of data, you need to have a distributed storage system scalability. On the other hand, are more suitable for traditional database to store structured data, and semi-structured and unstructured-based Big Data, you need the new concept, the user will be freed from the complex data management, and design a newer data storage management. [14] 4.2 Challenge of protection privacy Many times consumers consciously hide their own behavior in order to protect their privacy purposes. Government or business and eager to get some valuable data to better understand the operation of the national economy and customer behavior, and launch more targeted products or services. Any business or organization to extract data from private sources and never will be the user s privacy data for commercial activities, we need to get the user s knowledge and consent. However, China and the world should be how to protect the user s privacy, should be how to develop business rules, laws and regulations should be how to develop a series of management problems are greatly lagging behind the pace of development of Big Data. Therefore, in the future, the countries need to apply for Big Data security issues in the world, to protect consumer privacy issues to regulate the management. 4.3 Challenge of statistical analysis Data analysis focused on traditional structured data expanded, and has formed a set of effective analysis system. The arrival of the era of Big Data, semi-structured and unstructured data is rapid growth, traditional statistical analysis techniques to bring a huge impact and challenges. [15] Big Data era, the traditional statistical work to achieve change in the thinking of statistics, statistical work purposes, statistical procedures, statistical research methods. Victor (Vikor Mayer-Schǒnberger) in its Big Data Era, a book does not directly give the definition of big data, he believes in the era of Big Data, the traditional data analysis should be done three major ideological shift: one shift sampling thought, in the era of Big Data, the overall sample is to analyze all the data associated with something, rather than relying on a small number of data samples; Second, the measurement data to change their thinking, be willing to accept the numerous and unorganized data, not the pursuit of accurate data; Three is no longer elusive quest causality, and focus instead on things related. [16] In addition, Big Data can reveal possible association between the variables from the level of data analysis, but how they relate to the data at the level of the concrete to the industry practice, how to develop Big Data applications executable program conclusions and so on, requires great performer not only be able to interpret the data, and well versed in the industry needs to develop between the various elements associated. [17] Data from multiple industries association analysis, the more accurate and comprehensive analysis of the laws and values behind the data. 5 Conclusions Big Data era for the development of the retail industry is both opportunities and challenges of the times. Retail industry will experience the era of Big Data is a new revolution. Precision Marketing, all media marketing, data decisions, staff management and other new management philosophy will enable the retail display a new vitality, greatly improving the efficiency of retail management and scientific; data and data operators make the retail market create new formats and create new value space, industrial 249

6 innovation and change retail chain, changing the relationship between the stakeholders. Meanwhile, there are some challenges and risks in information technology, information security, and statistical analysis of retail Big Data Era. With the introduction of matures and appropriate regulatory measures in Big Data Era, in the hope of future, Big Data era of retailing can be rendered safer, more accurate, more standardized and more convenient development. Author in Brief: HU Lixia (1977- ), female, Information Logistics Department, Beijing College of Finance and Commerce, P.R.China, associate professor, doctor, research direction is industry statistics and vocational education research. References [1]. Sheng Yanqiao. Big Data Leveraging the Retail Value [J]. Information and Computer (11) (in Chinese) [2]. Zheng Shurong. The Retail Big Data: Form, Application and Inspiration [J]. Theoretical Exploration (2) (in Chinese) [3]. Wang Donghua. The Era of Big Data Analysis of Retail Intelligence [J]. Information and Computer (3) (in Chinese) [4]. Huang Shengmin, Liu Shan. Deconstruction and Reconstruction of Big Data Background Marketing System [J]. Modern Media (11) (in Chinese) [5]. China Enterprise Evaluation Association. The Color of Gold and Silver Trading Centers in China E-commerce Business Development Report 2013 [M]. Beijing: China Development Press (in Chinese) [6]. Zhao Gang. Big Data Technology and Application Practice Guidelines [M]. Beijing: Electronic Industry Press (in Chinese) [7]. Jia Lijun, Xu Xin. Discuss the Nature of Its Marketing Implication of Big Data [J]. Nanjing Social Sciences (7) (in Chinese) [8]. He Baohong, Wei Kai Big Data Industry Review and Development [J]. Telecommunications technology. 2014, 1 (in Chinese) [9]. Yu Xiaolong, Wang Jinzhao. Economics of Big Data Meaning and Value Creation Mechanism [J]. Chinese National Conditions and Strength (2) (in Chinese) [10]. Huang Shengmin, Liu Shan. Deconstruction and Reconstruction of Big Data Background Marketing System [J]. Modern Media (11) (in Chinese) [11]. He Jun. Decisions That Affect Large Enterprise Data Management and Analysis [J]. Technology Progress and Policy (2) (in Chinese) [12]. U Xiaolong, Wang Jinzhao. Economics of Big Data Meaning and Value Creation Mechanism [J]. Chinese National Conditions and Strength (2) (in Chinese) [13]. Zhou Tao. Big Data: Commercial Revolution and the Scientific Revolution [J]. Banyuetan Network (in Chinese) [14]. Zheng Shurong. Retailing Big Data: Formation, Application and Inspiration [J]. Theoretical Exploration (2) (in Chinese) [15]. Meng Xiaofeng, Ci Xiang. The Big Data Management: Concepts, Technologies and Challenges [J]. Computer Research and Development (50) (in Chinese) [16]. Vikor Mayer-Schǒnberger. Big Data Era [M]. Hangzhou: Zhejiang People s Publishing House (in Chinese) [17]. Zhou Jinchang. Limit Big Data [J]. 21 Century Business Review (15) (in Chinese) 250