African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4194

Full Length Research Paper

The use of big data analytics in the retail industries in South Africa

Matthew Ridge
  • Matthew Ridge
  • University of Cape Town, South Africa.
  • Google Scholar
Kevin Allan Johnston*
  • Kevin Allan Johnston*
  • University of Cape Town, South Africa.
  • Google Scholar
Brian O'Donovan
  • Brian O'Donovan
  • University of Cape Town, South Africa.
  • Google Scholar


  •  Received: 29 May 2015
  •  Accepted: 09 September 2015
  •  Published: 14 October 2015

Abstract

The majority of publications around big data analytics are centred on technical algorithms or systems development. While research has been conducted on the use of big data analytics there is an apparent lack of studies which focus on industry-specific usage in South Africa. The purpose of the study was to assess the usage of big data analytics in the retail industries in South Africa. The benefits of using big data analytics are not specific to a particular industry. Retailers, for example, can use big data analytics to gain new insights about their customers in order to inform decision making around pricing and marketing. The usage of big data analytics was assessed by collecting data from interviews with retailers, big data vendors and professional services. The main finding of the study was that South African retailers are not using big data analytics. Some retailers are, however, using big data analytic platforms to improve the speed of processing large amounts of structured data and to deliver information cost effectively. The findings show that South African retailers find it difficult to identify a use case to justify the investment required for using big data analytics.

Key words: Big data, data analytics, retail industry.