IBM Systems Magazine, Mainframe - November/December 2015 - 25

Personal
Shopper

Retailer optimizes analytics to drive a more customized client experience
By Otto Wohlmuth k Illustration by Bruce Morser

customer's experience
is incredibly important
in how he or she views
a brand. For many, their first
experience will be online, likely
through a mobile device. Looking
at customer behavior can help
determine future interest, improve
customer satisfaction and increase
top-line revenue and growth.
Predictive analytics can
examine various parameters of
the business and gain a more
accurate picture of customers and
their expectations. This helps the
business make better decisions
faster and improves the efficacy
of future customer engagements.
Predictive models can provide
support for human decisions or, in
some cases, be used to automate
an entire decision-making process
(e.g., the development of selling
recommendations for online
transactions or purchases).
.

A

Predictive Analytics
in Retail
A classic example of predictive
analytics at work is retail. There,
predictive models are created
based on historical data to foresee

a customer's next action to
improve the experience.
A European retailer improved
top-line business results by
5 percent by utilizing predictive
analytics on the mainframe at the
point of sales. With it, the retailer
developed "suggestive selling"
recommendations based on past
buying behavior and the contents of
a customer's current shopping cart.
This retailer analyzes hundreds of
thousands of purchase transactions
daily across several locations.
With such a large volume of historical data, it sometimes took up
to a week for the retailer to upgrade
even a single predictive model.
This dramatically limited the
retailer's capability to run models
on full data sets and change, adopt
and improve models efficiently and
interactively-something it had
to do to gain more insight into its
current data and optimize the product assignments and marketing
campaign in a timely manner.

Customer Study:
Optimized Infrastructure
The European retailer believed
that it could drive more top-line

revenue with more accurate and timely predictive
models, but was limited by its existing infrastructure
because analyzing historical purchase data was
restricted to a few months and the frequency of
model refresh was limited to weeks. The most
demanding case took a week even with a small
subset of historical purchase data of a few months.
The enterprise entered into a First-of-a-Kind
project (research.ibm.com/client-programs/foak)
which brings together clients with researchers to
test technologies on real business problems. In
the existing infrastructure, customer and historical purchase data resides in DB2* for z/OS* with
IBM DB2 Analytics Accelerator. From there, data
sets are selected by an analyst and moved into the

TAKEAWAY
s 7ITH PREDICTIVE ANALYTICS COMPANIES AND
BRANDS CAN GAIN A MORE ACCURATE PIC
TURE OF THEIR CUSTOMERS AND ACQUIRE MORE
INSIGHT INTO THEIR EXPECTATIONS TO MAKE
BETTER DECISIONS FASTER AND IMPROVE FUTURE
CUSTOMER ENGAGEMENTS
s /NE %UROPEAN RETAILER IMPROVED TOP
LINE
REVENUE AND GAINED MORE ACCURATE AND
TIMELY PREDICTIVE MODELS BY OPTIMIZED ITS )4
INFRASTRUCTURE USING )"- $" !NALYTICS !CCEL
ERATOR AND A NEW FUNCTION ACCELERATOR
ONLY
TABLES TO KEEP INFORMATION ON THE APPLIANCE
AND IMPROVE RESPONSIVENESS AND ACCURACY

ibmsystemsmag.com NOVEMBER/DECEMBER 2015 // 25

pg 24-27.indd 3

10/15/15 2:14 PM


http://research.ibm.com/client-programs/foak http://www.ibmsystemsmag.com

IBM Systems Magazine, Mainframe - November/December 2015

Table of Contents for the Digital Edition of IBM Systems Magazine, Mainframe - November/December 2015

IBM Systems Magazine, Mainframe - November/December 2015
Table of Contents
IBM Perspective: Opening new options for real-time analytics
Editor's Desk: Predictive analytics enhances purchases
Infographic: Breaking down the mainframe skills gap
Partner PoV: IBM z Systems clients must manage existing and emerging assets together to get the most value
Focus on Storage: The IBM Spectrum Storage family of software-defined solutions simplifies storage management
Currents: Architect real-time analytics into operational systems for competitive advantage
Cover Story: Dynamic Spark: IBM brings the Apache project's analytics power to Linux and z Systems servers
Feature: Personal Shopper: Retailer optimizes analytics to drive a more customized client experience
Tech Showcase: In a roundtable, distributors discuss how IBM LinuxONE enables flexibility for users
Tech Corner: Runtime Diagnostics and Predictive Failure Analysis V2.2 improve z/OS availability
Solutions: Strobe 5.2
Stop Run: IBMer volunteers time to educate people about malaria and technology
Reference Point - Global Events, Education, Resources for Mainframe
2016 Mainframe Solutions Edition Product Index
IBM Systems Magazine, Mainframe - November/December 2015 - Intro
IBM Systems Magazine, Mainframe - November/December 2015 - IBM Systems Magazine, Mainframe - November/December 2015
IBM Systems Magazine, Mainframe - November/December 2015 - Cover2
IBM Systems Magazine, Mainframe - November/December 2015 - 1
IBM Systems Magazine, Mainframe - November/December 2015 - Table of Contents
IBM Systems Magazine, Mainframe - November/December 2015 - 3
IBM Systems Magazine, Mainframe - November/December 2015 - 4
IBM Systems Magazine, Mainframe - November/December 2015 - IBM Perspective: Opening new options for real-time analytics
IBM Systems Magazine, Mainframe - November/December 2015 - Editor's Desk: Predictive analytics enhances purchases
IBM Systems Magazine, Mainframe - November/December 2015 - 7
IBM Systems Magazine, Mainframe - November/December 2015 - Infographic: Breaking down the mainframe skills gap
IBM Systems Magazine, Mainframe - November/December 2015 - Partner PoV: IBM z Systems clients must manage existing and emerging assets together to get the most value
IBM Systems Magazine, Mainframe - November/December 2015 - 10
IBM Systems Magazine, Mainframe - November/December 2015 - Focus on Storage: The IBM Spectrum Storage family of software-defined solutions simplifies storage management
IBM Systems Magazine, Mainframe - November/December 2015 - 12
IBM Systems Magazine, Mainframe - November/December 2015 - 13
IBM Systems Magazine, Mainframe - November/December 2015 - 14
IBM Systems Magazine, Mainframe - November/December 2015 - Currents: Architect real-time analytics into operational systems for competitive advantage
IBM Systems Magazine, Mainframe - November/December 2015 - 16
IBM Systems Magazine, Mainframe - November/December 2015 - 17
IBM Systems Magazine, Mainframe - November/December 2015 - Cover Story: Dynamic Spark: IBM brings the Apache project's analytics power to Linux and z Systems servers
IBM Systems Magazine, Mainframe - November/December 2015 - 19
IBM Systems Magazine, Mainframe - November/December 2015 - 20
IBM Systems Magazine, Mainframe - November/December 2015 - 21
IBM Systems Magazine, Mainframe - November/December 2015 - 22
IBM Systems Magazine, Mainframe - November/December 2015 - 23
IBM Systems Magazine, Mainframe - November/December 2015 - Feature: Personal Shopper: Retailer optimizes analytics to drive a more customized client experience
IBM Systems Magazine, Mainframe - November/December 2015 - 25
IBM Systems Magazine, Mainframe - November/December 2015 - 26
IBM Systems Magazine, Mainframe - November/December 2015 - 27
IBM Systems Magazine, Mainframe - November/December 2015 - 28
IBM Systems Magazine, Mainframe - November/December 2015 - Tech Showcase: In a roundtable, distributors discuss how IBM LinuxONE enables flexibility for users
IBM Systems Magazine, Mainframe - November/December 2015 - 30
IBM Systems Magazine, Mainframe - November/December 2015 - 31
IBM Systems Magazine, Mainframe - November/December 2015 - 32
IBM Systems Magazine, Mainframe - November/December 2015 - 33
IBM Systems Magazine, Mainframe - November/December 2015 - Tech Corner: Runtime Diagnostics and Predictive Failure Analysis V2.2 improve z/OS availability
IBM Systems Magazine, Mainframe - November/December 2015 - 35
IBM Systems Magazine, Mainframe - November/December 2015 - 36
IBM Systems Magazine, Mainframe - November/December 2015 - 37
IBM Systems Magazine, Mainframe - November/December 2015 - Solutions: Strobe 5.2
IBM Systems Magazine, Mainframe - November/December 2015 - 39
IBM Systems Magazine, Mainframe - November/December 2015 - Stop Run: IBMer volunteers time to educate people about malaria and technology
IBM Systems Magazine, Mainframe - November/December 2015 - Cover3
IBM Systems Magazine, Mainframe - November/December 2015 - Cover4
IBM Systems Magazine, Mainframe - November/December 2015 - RF1
IBM Systems Magazine, Mainframe - November/December 2015 - SE1
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