When considering roles in the retail world, a scientist is probably not a factor on the top of many people’s lists.
But there is a growing demand for the application of science in retail, specifically when it comes to analysing data and using it to adapt to changing consumer demands.
This task is where “data scientists” come into play. Far from white-coated, four-eyed experts in a lab, these scientists can look like everyday business professionals – it’s what their minds do that makes the difference.
These scientists work with huge volumes of data to discover insights, trends and strategies that can move businesses forward.
They have already been called “the future of IT” for the groundbreaking work they have done for companies like Facebook, Google and LinkedIn, and now these skills are being transferred to companies in a wide range of other industries.
In a 2012 Harvard Business Review article from visiting professor Thomas H. Davenport, explains that “more than anything, what data scientists do is make discoveries while swimming in data. It’s their preferred method of navigating the world around them.”
While there are no university degrees for data scientists (yet), Davenport says data scientists can be found through a number of characteristics essential to their jobs.
“[Data scientists are] at ease in the digital realm, they are able to bring structure to large quantities of formless data and make analysis possible. They identify rich data sources, join them with other, potentially incomplete data sources, and clean the resulting set,” he outlines.
“In a competitive landscape where challenges keep changing and data never stop flowing, data scientists help decision makers shift from ad hoc analysis to an ongoing conversation with data.”
So how does this fit with the retail world?
The overwhelming volume of data now available to retail companies has made it hard to analyse how consumers are behaving and what they really want. In turn, that has made it harder for retailers to adapt, whether in brick-and-mortar stores, online, mobile or all of the above.
In order to make the most of the data available to companies, someone has to go through it all and figure out where its value lies.
Simply put: data scientists are becoming more and more common in the retail world as companies try to boost sales and keep up with the fast-pace of life.
How Popular Are Data Scientists In Retail?
While smaller retailers, and those in Australia, may just be catching on to the data scientist trend, it is quickly becoming big business in the United States and elsewhere.
An Inside Retail article about data scientists in the industry recently reported that US budget department store Walmart is looking to hire 40 to 50 data science PhD’s “and no doubt has many already on staff”.
Online entertainment giant Amazon is also reported to be “big on data scientists”.
Shopping centre chains are also reaching out to this field of science, with Westfield in the US recently posting a job advertisement for data scientists that suggests the company is very eager to get professionals on their team.
“Only 10% of retail is transacted online. Do you want to work with a company that has one of the largest physical shopping platforms on the planet; creating digital solutions?” the application tempts.
The job advertisement also goes on to explain exactly what the data scientist’s role will be, and highlights how important this role could be for the retail world.
“You will be able to develop your expertise in leading-edge technologies as you help us better understand the tons of data we collect,” Westfield outlines.
“Taking this data and turning it into action will be the second challenge as we deliver a real-time, location based platform that will change the experience of shopping in stores. This is a great opportunity for a data scientist with a passion for identifying and answering questions that help us build the best products.”
The retail industry has faced blow after blow over the past decade, with the global financial crisis, growing debt and changing consumer platforms challenging companies around the world.
But the boom in online, globalised shopping has meant that these merchants can adapt and offer more specialised services that actually give shoppers more of what they want.
The shortcomings, however, tend to stem from a lack of understanding when it comes to using the data obtained. What’s more, innovation often seems more like a hit-or-miss strategy, rather than a calculated move.
But retailers have a much a better chance of keeping up with consumer trends by employing people with the sole job of studying this data, proving or disproving hypotheses about the industry and adapting as a result.
Just as shopping and retail is becoming a more interconnected experience, so too are different industries and professions meshing to form new jobs that could have a huge impact on the way business is done – and how consumer interests are considered.
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