The solution uses real-time data to significantly improve the planning and management of physical stores. Data sources, derived from IBM’s Metro Pulse, pass on the SAP Cloud platform to provide insight immediately available. All these fundamental transformative insights for better decision making are fueled by business activities and real-time market signals and digital activities.
This is the first step for a specific industry solution resulting from the two companies’ digital transformation partnership, announced last year. It is one of the industry-specific digital solutions currently under development. In particular, this is the result of IBM’s investment in retail and consumer electronics business for SAP S / 4HANA industry solutions. The two companies also intend to collaborate with SAP Model Company, a ready-to-use end-to-end reference solution that can be customized to meet specific business and industry requirements in order to accelerate profitability.
IBM Metro Pulse uses IBM’s cognitive services to provide local insights into weather conditions, events, traffic, and demographics, and helps address the key challenges of specific areas such as the availability of shelf products and the precision of forecasting demand. During testing of this cognitive technology in more than 100 stores in several US markets, the solution showed an improvement in the precision of predicting the most difficult products to predict for 75%.
SAP will combine the various data sources, including IBM’s cognitive capabilities, on SAP Cloud Platform, enabling retailers to identify and take immediate action based on these new insights to improve business performance.
For example, a New York City sales manager for a beverage company may expect sales during the New York marathon in one of its stores along the route. Using this new solution, you can include information about traffic flows at different points along the route, as well as the impact that weather forecasts will have on demand. This allows you to predict with a far greater accuracy the peaks of store-level questions. Based on these analyzes, the sales manager can create activities and suggest orders to sales representatives, who in turn can discuss with each individual shop manager the appropriate implementation modalities.
“SAP S / 4HANA, coupled with IBM’s cognitive services, provides specific consumer and retail insight professionals with a competitive edge in major markets,” said Laurence Haziot, IBM Global Managing Director and General Manager Consumer Industries .
“Through this important collaboration between SAP and IBM, retailers and consumer product companies can respond with speed, accuracy, and confidence in relevant local events. SAP S / 4HANA includes features that allow users to perform end-to-end processes in ways not provided by other systems, “said Lori Mitchell-Keller, Global Global Manager, Consumer Industries at SAP.