The cognitive retailer

Retailers find themselves in a time of extraordinary disruption and opportunity. By definition, that means that historical data—the buying and behavior patterns on which demand forecasts, assortment and allocation plans are typically built—are of little help in merchandise planning, forecasting and distribution decisions.

Perhaps as importantly, data gathered throughout this past year will reflect the industry’s highly unusual circumstances, which will impact the accuracy of future plans.

To operate in today’s environment and ensure their place in the future, retailers need to not just adapt, but also act—by which we mean shift from a reactive mindset to one that is proactive, predictive and, ultimately, prescriptive.

In this paper, we explore how retailers can take control of their future by advancing their digital capabilities, including the use of data, analytics, AI, automation and cognitive computing, in order to better anticipate and respond to trends, shape and influence events, identify exceptions and outliers and leverage timely insights to drive standard decision making.