Refining Big Data: The impact of data analytics in the retail industry

Abstract: We live in the most dynamic and expansive age of all time with immediate and virtually unrestricted access to information. This is changing the business landscape in the way companies interact, operate and make decisions. In this golden age of data, successful companies are able to refine data into valuable insights to reveal the most profitable path to every customer. Despite Big Data's endless opportunities, the research within the area is scarce. This study has its focus on the retail industry with its access to large volumes of rich consumer data creating untapped potential. The purpose of this study is to provide a deeper understanding of how Swedish retailers are exploiting Big Data, especially within marketing. A qualitative case study consisting of eight in-depth interviews with consumer insight experts from some of Sweden's largest retailers was conducted. The results show that Swedish retailers are only capturing a fraction of the potential value of Big Data. Out of the four components in the marketing mix, promotion was shown to receive far more attention than the others. Furthermore, all retailers were found to possess dynamic capabilities and only a few have the prerequisites to develop adaptive capabilities. Whether these two findings are connected will require further research.