Discussion #1
This week we covered how companies are using big data and how they can use that data. Select any company you would like (other than ones listed in the text) and discuss how the company is using big data to analyze trends, predict future trends, and/or make improvements to the company. Be sure to use specific examples and back up your ideas with current literature.
Office Depot, a leading provider of business services and supplies, products and technology solutions to small, medium and enterprise businesses, through a fully integrated B2B distribution platform with around 1,300 stores, online presence, and dedicated sales professionals and technicians. As every other retail Office Depot needs to study the current and future trends to have the products that customers want to buy. Information about the customer is truly power, consumer’s data analytics can help companies stay ahead of shopper trends by using retail customer analysis to discover, analyze and respond on meaningful data observations, including habits of in-store and online shopper. I once bought a desk at Office Depot, and later on the same week I got a coupon of 20% off a regular price furniture item, therefore Office Depot uses big data analytics to give personalized promotions and coupon to customers.
According to Narayanan (2014), “consumer buying patterns, potential markets, and identification of potential new products are among the revelations big data can deliver to companies looking to better understand markets, customer segments, and their own operations.” (par. 2) therefore, in today’s competitive market, traditional sources for decision-making, such as sales history, and the knowledge and judgment of management, are now inadequate, to support their business decisions, today’s successful retail leaders rely on up-to-date data, metrics and solid facts, about the customers experiences and the sales performance of the company comparing it to past years. Continuing with the desk example, from that purchase I received a survey link as well as a review of the product link to quality my purchase. In this survey, questions even about if I was greeted at the front door were asked, showing that Office Depot is trying to capture as much information they can to bring a better shopping experience to customers to increase their sales.
Additionally, according to “AI and Machine Learning at Office Depot” (2019), “at Office Depot we leverage data to build a product recommendation model for customers buying online and for email personalization.” (par. 1) therefore Office Depot is indeed using AI to analyze customer’s shopping patterns and sent personalized promotions, increasing sales and customer’s loyalty. Office Depot offers a live chat to online shoppers, to help them while they surf the website, but I think AI could be also be used in their website as a shopping assistant to answer frequent questions to the customer while they are shopping. “How artificial intelligence (AI) is reshaping retailing” (2018), “mentions that “Erica, a voice-activated AI-driven mobile app based virtual financial assistant from Bank of America’s retail bank, does precisely that.” (p. 1), even banks have AI to help customer with basic and not so simple task, but I do not believe that having a live chat is a bad business idea is just I have not seen much stores with this kind of online service anymore, 2020 is here.
Discussion #2
Discuss how you feel data analytics should or could be used in managerial accounting or if you feel data analytics could or should not be used in managerial accounting. Be sure to provide specific examples.