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Data analytics and the Blockchain - MBB7003M

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Data analytics and the Block chain on

TESCO
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 York Business School
PART ONE: BACKGROUND
1.0 INTRODUCTION:

AI/DATA ANALYSIS/BIG DATA AND BLOCKCHAIN:

Companies in the modern digital era have access to an unprecedented quantity of data, and those who can
successfully use this data have a distinct edge in the marketplace. Businesses may obtain insights and meaning
from their data with the help of four essential technologies: artificial intelligence (AI), big data, data analytics,
and data visualization. Big data technology may aid businesses in storing, managing, and analysing massive
amounts of data, while artificial intelligence can automate processes like these. Data visualization technologies
assist convey these findings to decision-makers in a clear and straightforward manner via the use of visual
representations of data that have been analysed for patterns and trends.

With the right tools and expertise, businesses can leverage AI, big data, data analytics, and data visualization to
gain a competitive edge in their industries and achieve their goals. The use of Big Data analytics can also help
businesses optimize their operations and improve their bottom line. For instance, by analysing sales data;
businesses can identify trends and patterns in consumer behaviour, allowing them to adjust their pricing and
inventory levels accordingly (Sharma and Dhir, 2021). Additionally, Big Data analytics can be used to identify
inefficiencies in the supply chain, allowing businesses to optimize their logistics and reduce costs (Sharma and
Dhir, 2021).

TESCO

Tesco is a multinational grocery and general merchandise retailer based in the United Kingdom. Established in
1919, the company has grown to become one of the largest retailers in the world, with operations in 12
countries and a workforce of over 450,000 employees. As of 2021, Tesco's revenue was £53.4 billion, making it
the ninth-largest retailer in the world by revenue (Forbes, 2021).

Tesco's success is due in part to its focus on customer experience and innovation. The company has a reputation
for being at the forefront of retail technology, with initiatives such as self-checkout systems, mobile apps, and
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online shopping platforms. Tesco has also leveraged big data and data visualization to gain insights into its
operations, customer behaviour, and market trends, enabling the company to make informed decisions and
drive business growth (Chandran, 2018).

Tesco's use of data analytics has not only helped the company achieve its goals but has also created a
competitive advantage in the retail industry. By leveraging the power of data analytics, Tesco has been able to
make informed decisions, improve operational efficiency, and provide personalized experiences to its
customers. For instance, Tesco uses predictive analytics to forecast demand and optimize inventory levels,
reducing waste and improving efficiency (Tesco PLC, 2021). Tesco has also implemented block chain
technology to improve supply chain transparency and reduce the risk of fraud (Tesco PLC, 2021).

PART TWO: DATA AND DATA ANALYTICS IN BUSINESS: THE CASE OF TESCO
1. Business problems and questions (500 words)

1.1. BUSINESS PROBLEMS AND QUESTIONS:

Competition in the market: Tesco faces stiff competition from both traditional retailers and online merchants.
Competition from discounters, shifting consumer preferences, and the rise of e-commerce have all eaten into
Tesco's market share and profitability.

It's challenging to keep a wide network of stores running smoothly while maintaining consistent standards of
service and product quality. Consistent challenges for Tesco include the need to adapt to changing market
circumstances and regulatory frameworks in order to streamline operations, reduce costs, and enhance supply
chain management.

Understanding and adapting to shifting customer tastes and purchasing habits is difficult. To remain competitive,
Tesco must continuously revise its product offerings and improve its customers' shopping experiences to meet
shifting consumer preferences.

Retailers in the present day require a strong online presence due to the expansion of e-commerce and the
importance of digital platforms. Tesco has invested heavily in technology, internet infrastructure, and digital
marketing in order to remain competitive in the online retail business.

Because of its global reach, Tesco faces challenges from regulations, compliance worries, and unstable political
climates. Different markets may adopt different tax systems, free trade agreements, and consumer protection
laws.

Supply chain management is already challenging under normal circumstances; add in disruptions from things
like natural disasters or geopolitical crises, and things become significantly more. Managing its supply chain an d
maintaining an accurate inventory are only two of Tesco's many responsibilities.

In today's competitive business environment, it is crucial to build and maintain client loyalty. Tesco has to
enhance its loyalty program, provide more individualized service, and live up to consumers' lofty expectations if
it wants to keep them coming back.

There is increasing pressure on the retail industry to enhance its environmental performance by, among other
things, reducing its carbon footprint. Greening its supply chain, packaging, and operations is a priority for Tesco's
competitors.
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1.1.1. TESCO and Big Data
Tesco has access to a plethora of data sets, including information from customers' in-store and online
transactions, loyalty cards, social media, and Internet of Things (IoT) devices. On a daily basis, Tesco amasses
more than 100 gigabytes of data (Tesco PLC, 2019).Tesco's Club card loyalty program is an application of big
data analytics. Tesco is able to track its customers' shopping habits, such as what they purchase and how often,
thanks to the Club card. This information is then utilized to tailor promotions and product suggestions to each
individual consumer, which may boost retention and revenue. Customers who often shop at Tesco may get a
coupon for a discounted trial of a different brand of coffee (Garca-Sánchez et al., 2019).

Big data is used by Tesco for supply chain analysis as well. To improve its supply chain, Tesco analyzes data
from its suppliers and logistics partners (Sun et al., 2017). This allows the company to see possible bottlenecks
and make data-driven choices. Tesco has also used big data to enhance its in-store operations, such as by
analyzing customer foot movement to enhance the store's layout and product placement (Berlingerio et al.,
2013).

Tesco is able to better analyze consumer behaviour, streamline processes, and make data-driven choices
because to its usage of big data, all of which contribute to the company's development and profitability.

1.1.2. Objectives of Tesco

 Be the customer's first option by offering high-quality, affordable goods and services that meet and exceed
expectations.
 To provide sustainable, profitable growth and returns for shareholders via innovation, efficiency, and business
investment.
 As a good corporate citizen, Tesco should behave ethically, support its communities, and minimize its
environmental effect.
 To provide workers a meaningful and gratifying workplace that promotes personal and professional growth.
 To keep Tesco at the top by innovating and responding to market and customer developments.

Tesco's aim is "To serve shoppers a little better every day". Tesco uses data analytics to understand customer
behaviour and preferences, invests in supply chain efficiency to cut costs and improve inventory management,
and creates new products and services to meet customer needs.

2. Data Collection (500 words)

2.2. SOURCES OF DATA IN TESCO

The multinational retailer, Tesco, operates as a brick and click store (online and offline). The company
generates and collects a vast amount of data from various sources, including:

Point of Sale (POS) Data:

This information is collected from both in-store and online purchases made at Tesco. What client’s purchase,
when they buy it, and how much they spend are all included. Tesco's point-of-sale system automatically logs
this information when purchases are made. Tesco may utilize the real-time information to enhance the shopping
experience for customers and boost revenue by adjusting the location, price, and availability of products and
services (Shukla et al., 2019).

Customer Relationship Management (CRM) Data:

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Tesco saves personal data such names, addresses, phone numbers, email addresses, and purchases made by
customers. Tesco's customer relationship management system stores this information for the express purpose of
tailoring advertisements to individual customers. Tesco may use this information to better understand its
customers' tastes, habits, and demographics. These findings will help the firm improve its products, advertising,
and customer service (Tiwari et al., 2018).

Loyalty Card Data:

Club card, Tesco's customer loyalty program, is a goldmine of information for the retailer. Tesco can monitor
client spending and tastes with the use of the club card system, allowing them to tailor their marketing efforts to
each individual. Club card registration is available both in-store and online, and all customer information is
maintained in Tesco's customer relationship management database. This information will help Tesco find areas
for expansion and fine-tune its product lines (Shukla et al., 2019).

Social Media Data:

In order to better understand its customers' attitudes, tastes, and actions, Tesco often checks social media sites
including Twitter, Facebook, and Instagram. The organization may utilize social media data to increase
consumer interaction, design focused marketing efforts, and find new chances for development. By employing
third-party solutions like Hootsuite and Sprout Social, Tesco may track mentions and interactions across
numerous social media channels (Kulkarni et al., 2018).

Supply Chain Data:

Tesco monitors its inventory, delivery delays, and suppliers' efficiency by collecting data on these activities.
Tesco's supply chain management system gathers this information and uses it to improve supply chain
procedures and guarantee the timely delivery of goods. By analyzing this information, Tesco can identify and
eliminate inefficiencies and bottlenecks in its supply chain (Tiwari et al., 2018).

3.Data Analysis (500 words)

2.3. DATA ANALYTICS IN TESCO

Tesco has a staff of data scientists and analysts that are in charge of managing and analyzing the data acquired
from a wide variety of sources. Hadoop and SQL are only two examples of the tools and technology used by
the corporation for storing and processing massive amounts of data.

Data Mining: Tesco finds patterns, correlations, and trends in massive data sets via data mining. Data mining
may reveal whether items are purchased together or returned. Tesco utilizes this data to tailor products and
promotions to consumers. (Shukla et al., 2019).

Machine Learning: Tesco analyzes consumer data and predicts preferences using machine learning algorithms.
Machine learning may help the organization estimate which goods consumers will purchase or customize
discounts and marketing communications. (Tiwari et al., 2018).

Predictive Analytics: Tesco predicts consumer preferences using predictive analytics. The firm may utilize
predictive analytics to estimate product demand or growth opportunities. Predictive analytics can improve
pricing and promotions to boost sales. (Shukla etal., 2019).

Data Visualization: Data visualization technologies help Tesco visualize massive amounts of data. The
organization may utilize data visualization to monitor marketing initiatives or consumer behavior patterns.
Tesco visualizes data using Tableau and Power BI. (Kulkarni et al., 2018).
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Natural Language Processing (NLP): Tesco analyses customer reviews, comments, and social media
contributions using NLP. NLP can determine consumer sentiment and views from text data. Tesco may utilize
NLP to detect and handle consumer problems. (Tiwari et al., 2018).

2.3.1. Tools for Big Data Management and Data visualization in Tesco
Tesco has been successful in driving company development, improving customer experience, and
differentiating themselves from competitors by using big data via the use of a variety of tools and technology.
The following are examples of equipment:

Teradata: Teradata is a data warehousing solution that Tesco uses to manage and analyse large volumes of
data. Teradata provides a unified data architecture that integrates data from different sources, such as point-of-
sale systems, customer loyalty programs, social media, and market research. With Teradata, Tesco is able to
store and process its data in real-time, which enables the company to make data-driven decisions and respond
quickly to changing market conditions. Teradata also provides advanced analytics capabilities, such as
predictive modelling, machine learning, and geospatial analysis.

Hadoop: Tesco employs Hadoop, a free and open-source distributed computing technology, to swiftly and
effectively analyze massive volumes of data. Tesco is able to store and interpret both structured and
unstructured data thanks to Hadoop. This includes things like transaction data, customer feedback, and the
sentiment of social media posts. Hadoop has allowed Tesco to mine previously unavailable or prohibitively
costly to store and analyze data for useful insights. Data mining, text analytics, and machine learning are just a
few of the sophisticated analytic tools that may be accessed via Hadoop.

Tableau: Tableau is a data visualization tool that Tesco uses to create interactive and visually appealing reports
and dashboards. Tableau enables Tesco's business users to analyse data and gain insights quickly. With
Tableau, Tesco is able to create visual representations of complex data sets, which makes it easier for users to
understand and act upon the insights provided by the data. Tableau also provides advanced analytics
capabilities, such as forecasting, clustering, and statistical modelling.

SAS: SAS is analytics software that Tesco uses to perform predictive analytics and data mining. SAS helps
Tesco to identify patterns and trends in its data and make data-driven decisions. With SAS, Tesco is able to
analyse customer behaviour, predict demand for products, and optimize its supply chain. SAS also provides
advanced analytics capabilities, such as text analytics, time series analysis, and neural networks.

Apache Spark: Apache Spark is a distributed computing engine that Tesco uses to process large amounts of
data quickly and efficiently. Spark enables Tesco to run real-time analytics and machine learning algorithms on
large data sets. With Spark, Tesco is able to process and analyse data in real-time, which helps it to respond
quickly to changing market conditions. Spark also provides advanced analytics capabilities, such as graph
processing, streaming analytics, and deep learning.

. 4. Practical outcomes // decisions taken (500 words)

2.4.DATA VISUALIZATION IN TESCO

Tesco uses various data visualization techniques, such as dashboards, charts, and graphs, to present data in an
easily understandable and visually appealing format. The company has developed a custom dashboard tool
called Tesco Explore, which allows its employees to create and share interactive dashboards that provide real-
time insights into the company's operations. These dashboards can display a wide range of data, such as sales
by product category, store performance, customer demographics, and market trends.

Heat Maps:
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One of the key data visualization techniques used by Tesco is heat maps, which display data as color -coded
grids. Tesco uses heat maps to visualize customer behaviour, such as foot traffic in stores and online browsing
patterns. For example, Tesco uses heat maps to identify the most popular products in its stores and adjust its
merchandising strategies accordingly. Heat maps can also be used to identify areas of high demand for specific
products or services, allowing Tesco to optimize its inventory and supply chain operations.

Predictive Analytics:

Another important data visualization technique used by Tesco is predictive analytics, which uses machine
learning algorithms to forecast future trends based on historical data. Tesco uses predictive analytics to identify
customer preferences, such as which products are likely to be popular during certain seasons or holidays. This
enables Tesco to adjust its marketing and promotions accordingly, ensuring that it meets customer demand and
maximizes sales.

Overall, data visualization is an essential tool for Tesco to gain insights into its operations, customers, and
market trends. By presenting data in an easily understandable and visually appealing format, data visualization
enables Tesco to make informed decisions that drive business growth and enhance customer satisfaction.

Tesco’s use of data visualization is supported by a team of data analysts and visualization experts who use a
variety of tools and technologies to create compelling visualizations. These include tools such as Tableau,
Power BI, and D3.js, which allow analysts to create interactive visualizations that can be customized and
shared across the organization.
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2.5. BENEFIT OF BIG DATA AND DATA VISUALIZATION IN TESCO

The use of big data and data visualization has brought numerous benefits to Tesco, including improved
decision-making, customer engagement, and operational efficiency.

One major benefit of big data is the ability to gain insights into customer behaviour and preferences. By
analysing data on customer transactions, Tesco identifies patterns and trends in purchasing behaviour and tailor
its product offerings and marketing strategies accordingly. Data visualization has further enhanced these
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insights, allowing Tesco to quickly and easily identify trends and patterns through visual representations of
data.

Another benefit of big data and data visualization is improved operational efficiency. By analysing data on
store performance, inventory levels, and supply chain operations, Tesco identifies areas for improvement and
optimize its operations accordingly. Data visualization also helps Tesco to identify bottlenecks and
inefficiencies in its operations, allowing it to make more informed decisions about where to invest resources.

In addition to these benefits, big data and data visualization has also helped Tesco to better engage with its
customers. By analysing data on customer feedback and preferences, Tesco now tailor its offerings and
marketing strategies to better meet the needs of its customers. Data visualization also helps Tesco to
communicate these insights to customers in a more engaging and intuitive way.

Furthermore, Big Data and Data Visualization have enabled Tesco to improve their online shopping experience.
Tesco uses data from their online shopping platform to analyse customer behaviour and preferences. By
presenting this data in visual formats, Tesco identifies opportunities for improving the online shopping
experience, such as optimizing the user interface, suggesting products based on past purchases, and offering
personalized promotions. By leveraging Big Data and Data Visualization, Tesco has been able to increase
customer satisfaction and loyalty with their online shopping platform.

Tesco has successfully leveraged these tools to achieve their objectives, including improved customer
segmentation, supply chain management, and online shopping experience. As the volume and complexity of
data continue to grow, businesses that invest in Big Data and Data Visualization are likely to gain a competitive
advantage and achieve their objectives more effectively.

5. Conclusions and future recommendations for the company (500 words)

3.0. CONCLUSION AND RECOMMENDATIONS

In conclusion, Tesco's success in leveraging Big Data and Data Analytics is a testament to the power of these
technologies in driving business success. By analysing customer data, inventory levels, supply chain
operations, financial data, and operational data, Tesco has been able to make data-driven decisions that have
improved the customer experience, reduced costs, and increased profitability. This success is supported by a
strong data analytics team, advanced technologies, and a data-driven culture.

According to a study by McKinsey and Company, companies that use Big Data and Data Analytics to drive
business decisions outperform their peers by up to 6% in profitability and up to8% in total shareholder return.
This underscores the importance of data analytics in driving business success and the potential benefits that can
be realized.

As the retail industry continues to evolve, other companies can learn from Tesco's example and leverage data
analytics to improve operations, increase profitability, and drive sustainable growth. The benefits of data
analytics are clear, and companies that invest in these technologies and capabilities are well-positioned to
succeed in today's competitive business landscape.
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4.0. REFERENCES
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Conference on Intelligent Data Analysis (IDA), 165-176.

Chandran, S. (2018). How Tesco is using data to improve its operations. Brunswick

Chen, J., Li, X., and Hu, X. (2021). Artificial intelligence in supply chain management: Abibliometric analysis.
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Davenport, T. H., and Harris, J. G. (2007).Competing on analytics: The new science of winning.Harvard
Business Press.

Davenport, T. H., and Harris, J. G. (2007).Competing on analytics: The new science of winning.Harvard
Business Press.

Few, S. (2012).Show me the numbers: Designing tables and graphs to enlighten.Analytics Press.

Forbes. (2021).World's Largest Retailers 2021: Walmart, Amazon Increase Their Lead Ahead Of The Pack.

García-Sánchez, F., Hernández-Ortega, B., and Luna-Reyes, L. F. (2019). ‘Big Data and LoyaltyPrograms: The
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Gartner. (2021).Top 10 Strategic Technology Trends for 2021.

Kulkarni, A., Garud, R., and Bhattacharya, S. (2018). ‘Social media analytics: An exploration of Tesco's
Twitter handle.’ International Journal of Research in Marketing, 35(1), 165-180.

M. S. Alnabulsi, “The impact of big data analytics on Tesco's operations management,” Journal of Enterprise
Information Management, vol. 31, no. 3, pp. 480-496, 2018.

Manyika, J., Chui, M., Miremadi, M., Bughin, J., George, K., Willmott, P., and Dewhurst, M.(2017). Artificial
intelligence: The next digital frontier?

McKinsey Global Institute.McKinsey and Company. (2014). Big data and advanced analytics in retail. 20

McKinsey and Company. (2016). "How companies are using big data and analytics."

N. Gupta, “Big data and its applications in the retail industry ,” International Journal of Advanced Research in
Computer Science, vol. 8, no. 5, pp. 405-407, 2017.

Sarkar, S. (2019). "Data Analytics in Retail: Transforming Retail with Big Data Analytics." DataFlair.

Sharma, R., and Dhir, A. (2021). “Big Data analytics in supply chain management: A review.” International
Journal of Information Management, 57, 102295.

Shukla, P., Banerjee, M., and Singh, N. (2019). “Examining the impact of big data analytics onmarketing
decisions: A study of Tesco.” Journal of Retailing and Consumer Services, 50, 272-280.

Sivarajah, U., Kamal, M. M., Irani, Z., and Weerakkody, V. (2017). “Critical analysis of Big Datachallenges
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Sun, H., Yan, X., Gao, D., and Guo, B. (2017). “Big data for supply chain management in theservice sector:
Challenges and opportunities.” Journal of Service Theory and Practice, 27(6),1176-1199. doi:
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Tesco PLC. (2021). Sustainability. Available at https://www.tescoplc.com/sustainability/