We want it all, and we want it now – has the era of instant gratification made us less patient?

Do you ever get the feeling that people have no patience anymore?  No time to stop, reflect and do things at a more leisurely pace?  I do.  It seems that the more access we have to information, the more we want and the less tolerance we have to wait patiently for it.  And this affects our lives in all manner of ways.  From waiting for an analytic report to run on our work computers to growing annoyed at slow movie downloads on our devices at home; from standing in line at your local coffee shop while someone in front of you cannot make up their mind to waiting for what seems an age behind a crowd of folks to disembark an aircraft; from waiting for the lines at the supermarket checkout to clear to hanging on the end of the phone waiting for the call centre to take our call, it seems that the world has grown a little less tolerant.  We certainly live in the era of instant gratification, and yet it has made many of us a little crankier when we don’t get what we want, when we want it.

We want it all and we want it now

You might say that technology is to blame for this change in behaviour and many would agree: as we all have become accustomed to high-speed networks and super fast bandwidth speeds, information can be delivered to us in a fraction of the time it took a few years ago.   Negatively or positively, this has had an immense effect on our expectations.  Before, we would be content to drive miles to the store and shop, now we expect to go online and have products delivered to us instead.  Before we would go to the train station and wait for the train, now we want to check its status, buy tickets and be notified of any delays on our devices live.  Before we would go to the video store and rent a VHS copy of a movie, now we want it on our TVs in almost real-time.  And with us all having computers, tablets, e-readers and mobile phones, many of us with several of each, it does seem that we want to consume it all, and we want to do it right now.

However, others may say that technology is not to blame, that it is still a conscious human decision whether we search and consume a bit of information as opposed to focus on something else.  How many of us have turned to our Blackberry or iPhone at home to read and respond to a work-related e-mail in our free time instead of perhaps conversing with our family and listening to their day?  How many of us have chosen to BBM a friend or SMS a work colleague instead of focusing on what we started out doing?  How many people do you see with phones and devices almost glued to the palm of their hands checking out things online, conversing with friends, tweeting or updating their Facebook status?

Those that say technology has made our lives easier are, of course, correct.  And that goes from the simple ability to skype a loved one on the other side of the world in a matter of seconds, to technology such as our own that allows businesses to connect to various data sources, analyze their data and act upon it in real-time.  But as technology makes our lives easier, it has also upped our expectations to be able to get information and do something with it at rates faster than ever before.

In fact, I suspect that our expectations will only get more and more demanding as connection speeds get faster and our daily lives go at an even faster pace.   For, the faster we can consume information, the more challenging it will become for us humans to take the rational decision to stop, think, reflect and do something a little less hectic, with a little more tolerance and a little less impatience.  But that is a failing of us humans, not technology per se.  The main thing to note is that we still retain the option to choose how and when we consume information.  So next time you feel yourself running out of patience over something that hasn’t happened in a heartbeat or over a bit of information that you cannot obtain in a nano-second, just relax, count to ten and remember that life can be enjoyed just as well at a slower pace as it can at a fast one.   Indeed, we may want it all, but do we necessarily have to have it all right now?

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Big Data at the Magic Kingdom – a blessing or a curse?

It used to be the case that retail or telco or utilities were the markets that were getting the IT world abuzz with stories of big data analytics and making money out of large and complex data, markets where customers can be very fickle and operating margins very tight.  But an article earlier this year in the New York Times shows that big data and the ability to collect, transact, manage, analyze and act upon it is just as applicable to markets with which we wouldn’t normally associate data.  The big data analytics and reporting needs of retail organizations and telecom operators are by no means passé, but theme park operators and leisure companies are harnessing the big data wave, too, in order to deliver better customer service, up their game and drive profits.   It seems that Mickey, Minnie, Pluto, Goofy are on hand to act upon big data, too.

The article showcases the great wealth of information that not only can be collected on theme park visitors’ habits – from what rides they prefer to what signature Mickey Mouse keyring they chose as their souvenir of the day from the gift shop – but also on significantly improving the user experience.  By dispensing with coupon tickets, turnstiles and, in some cases, cash, Disney is now planning to arm its visitors with electronic wristbands and getting them to use them for purchases in the park as well as check in at sensors in order to ride they favourite attraction.  As such, not only can Disney ensure that visitors don’t waste half of the day by standing in line, they can also ensure that they are happier and potentially spending more money in their stores.  Families can pre-register online to ride at 1pm and turn up just 5 minutes beforehand and swipe their wristband.  That certainly beats getting in line at 11am and waiting 2 hours in the soaring heat for the 90 second ride.  Sounds good, right?

Sure, for the park operators this harnessing of the big data generated by all this online and sensor activity and using it to their advantage sounds great.  If they can reduce waiting lines, improve the user experience and fully digest who does what when, who buys what when and who wants to see what attraction when, then the park operator can tailour the park to meet the needs of the consumer and profit accordingly.  Happier guests will recommend the park to their friends, happier guests are sure to return themselves and happier guests may even spend more in the park’s stores, given that they are spending less time in the lines waiting for the rides.

But isn’t this all a little too much?  Especially when theme parks are a place to go to escape from the realities of life for a while?  You might argue that the simplicity and innocence of theme parks – especially Disney and the market it serves – will be lost in favour of a system where it is all about gleaning as much information from the visitor as possible and using it to the operator’s advantage.  Will parents be happy standing with their kids on their shoulders watching the parade of smiling cartoon characters on Main Street knowing all too well that theme park operators are busy behind the scenes analyzing, crunching and mining information about them and their activities both done and pre-planned for the day ahead?  Or is this now just the way of the world?  After all, theme parks are businesses, too.

With all things in life and certainly with big data and personal information, you have to find the happy medium.  I am sure that parents who pre-register their childrens’ information into the parks’ systems will not want to divulge too much data, nor have that information abused, but then they might appreciate the fact that their kids’ wristbands will tell Cinderella that one of them is celebrating a birthday and have the cartoon character wish the kid a very special day automatically.

While it is fair to say that theme park and leisure companies do need data in order to compete more tactically – somehow building a newer, faster rollercoaster ride doesn’t seem to cut it anymore these days – it is also fair comment to make that theme park operators need to be sensitive to the needs of their customers:  offering a tailour-made and extra-special experience at the Magic Kingdom sounds great, but overstepping the mark and making it too intrusive can do untold damage to the theme park company and its reputation.

But whether you believe it to be a good thing or just way too over-the-top, my guess is that digital wristbands and data analytics at theme parks are here to stay.  It seems that no business can afford not to embrace and ride the big data analytics wave.

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Beyond sweaters and ballet shoes

Why should retail organizations care about fast and cost-effective analytics?

In recent weeks, there have been some well-publicised examples of retail giants whose financial performance has been severely impacted by breakdowns in the supply chain.  As salt in the wound to these behemoths of retail, there are just as many examples of organizations that have exceeded market expectations due to an ability to behave nimbly and respond quickly to changes in consumer demand.

For example, leading UK retailer Marks and Spencer recently announced that it could have sold three times more sweaters, had it paid closer attention to data generated by its own stores. This had a major impact on its share price, making it the second biggest faller in the FTSE 100 for the quarter. At the same time, John Lewis (another retailer) predicted consumer demand and provided the right stock to the right stores.  Sales of its ballet shoes were up 129% year-on-year and profits were big.

This news made me wonder what the root of this issue was; which factor could cause success for one and failure for another.  Was it just a case of getting lucky with the right stock at the right time or was there something buried deep in the DNA of the organization that gave some retailers a crucial advantage?

The answer is simple – success comes from the ability to distill actionable intelligence from data gathered from a range of internal and external sources. This data consists of diverse factors including: the demographical characteristics of your main customers; their psychological state and purchasing patterns; how they plan to use your products; the macro economy; even what the weather is doing that day.  Investigated quickly enough to catch the trend at its birth, these all come together to define crucial business decisions such as: what to stock; when and how much of it; how to position it in the physical environment of the store and how to package and market it.

Having access to a fast and affordable analytic database platform can unite all the data from operational systems (EPOS, stock, merchandising, loyalty, ERP etc) and give business managers access to the right information at the right time, helping them to drive growth, performance, competitive advantage and, ultimately, profits.  With a fast and cost-effective analytic database engine, retailers can optimize their merchandising and product range by understanding buyer behavior and identifying trends immediately. They can also refine supply chain management by co-coordinating stock deliveries and replenishment, meeting the demands of each potential customer.

Cross-purchasing behavior analysis can also be calculated using a fast analytic database engine, which allows for large datasets to be joined together.   Such intelligence can then be used for marketing purposes, product range decisions, promotional planning and evaluation, shop floor layout.  The opportunities are endless.

Nevertheless, success is not just based on speed or high performance; any analytic solution needs to be cost-effective.  There is no point in a retailer investing in analytics if the system to be deployed involves a stack of new hardware that needs to be powered and then cooled, as well as configured and maintained.  Retailers will be far better off with systems that leverage off-the-shelf hardware and have as little a footprint as possible.

Savvy organizations, such as US retailer Sheetz, are using analytics to adapt product selection and availability to the needs of their customers faster, to improve customer service and tailor the shopping experience to the individual in a cost-effective way. In today’s competitive retail market where the slightest negligence renders giant chains out of business, it is no longer just about survival of the fittest, but survival of the fittest and quickest.  Retailers cannot afford to be anything but ultra-responsive; they need a business intelligence system that provides analysis without prompts or delays.  By ignoring this key need, they stand to lose out on opportunities that can make or break their business.  And that is something that goes beyond the ability to analyze sweaters and ballet shoes.

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