In the technology-rich world of retail, organizations look to industry experts to guide decisions about which solutions are best for their business. Gartner’s annual Hype Cycle is one of the most trusted analyses of the retail tech sector, and Blue Yonder is delighted to be mentioned in three reports this year.
As noted in Gartner's Hype Cycle for Back-Office Analytic Applications, 2017, "Artificial Intelligence is the big story for back-office analytic applications in 2017. The AI market is in a period of massive, accelerating and disruptive evolution." We believe this is being driven by the fact that companies like Blue Yonder are applying complex algorithms that enable retailers to run smarter.
Blue Yonder has been listed in the Gartner Hype Cycle for Retail Technologies 2017, which can be a go-to guide for CIOs. Gartner research shows that only 2% of retailers are harvesting results from digital efforts, and 17% have yet to start designing their digital future.
AI is important in extracting this value, whether supporting the performance of machines or manpower. As the analyst wrote, “smart machines are an emerging ‘super class’ of technologies that can perform a wide variety of work and add great value to business process. At other times, humans will interact with algorithms that are acting as a support mechanism for business users.”
While the capabilities and benefits of AI are broad ranging, Gartner has identified some specific areas where Machine Learning can add business value in its Gartner Hype Cycle for Back-Office Analytic Applications 2017.
Replenishment in particular is an area in which AI investment is growing quickly. According to the report, "presently, we estimate that up to 50% of retailers have adopted some form of algorithmic optimization application, and expect algorithmic retailing will grow from its current penetration relatively quickly." The analyst lists Blue Yonder as a representative vendor for Algorithmic Merchandise Optimization and Algorithmic Retailing.
Blue Yonder is also listed as a sample vendor for Dynamic Pricing in the Gartner Hype Cycle for Customer Experience Analytics 2017. The analyst wrote: “Dynamic pricing can provide many benefits to both organizations and customers through increased sales and margins, faster reaction and reduced costs.”
The analyst also notes, "among the greatest challenges facing an organization that is trying to improve the customer experience are the complexity of channels, processes and siloed departments, and the fragmentation of a customer's experience across multiple channels". We believe this makes it more difficult than ever to provide relevant, contextual and
personal encounters – all things that today’s customer now demands.
As Gartner’s reports demonstrate, AI already has some powerful use cases in retail, and its continued adoption will see the business value of this intelligence grow over time. We believe the result of this trend is that retailers have two choices: get to the front of the queue and move ahead of the market, or wait to follow the lead of their competitors and risk getting left behind.
Our advice? It’s always better to lead from the front.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Gartner, Hype Cycle for Retail Technologies, 2017, 17 July 2017
Gartner, Hype Cycle for Back Office Analytic Applications, 2017, 17 July 2017
Gartner, Hype Cycle for Customer Experience Analytics, 2017, 19 July 2017