In a nutshell, what is rocket science retailing?
Ananth Raman: It means that retailers should * Use the data generated at your stores to understand customers and their needs deeply. * Develop the ability to respond to this understanding with better-tailored assortments, replenishment of the hits, and timely markdowns on what is left over. * Execute well, especially at the stores. Attend to data inaccuracy and placement of products within stores. * Align incentives within your organization and in the supply chain. * Use technology judiciously and pay attention to emerging new technologies, whose value might still not be apparent. * Explain the changes you are making to your investors. Q: In The New Science of Retailing, you and Marshall Fisher write that “well-designed incentives are a necessary condition for rocket science retailing to work.” What are some typical sources of incentive misalignment? How can incentive misalignment be reduced or overcome? A: We frequently see perverse incentive misalignment within organizations and in t
