Accenture is betting on big data.
The consulting giant participated in DynamicAction’s latest funding round, which raised $15 million. West Coast Capital, an original investor in the analytics firm, added more money to the company’s kitty as well.
Accenture and DynamicAction also formed an alliance that has the consultant becoming a reseller and service provider for the platform, which simultaneously runs more than 600 algorithms on data from a retailer’s business, looking at conversion, inventory, profit, price, returns, order cancellations and so on.
After plugging into the comings and goings of a business, the system uses artificial intelligence to recommend specific actions intended to boost a retailer’s profitability.
Jill Standish, senior managing director of retail at Accenture, said DynamicAction’s expertise complements her firm’s strengths of changing processes and figuring out what’s broken in a company and how to fix it.
She said the DynamicAction system could plug into a lot of different retail data platforms and be up and running quickly, digesting data and advising retail executives.
“This is a catalyst for change,” Standish said, noting the system provides answers to questions retailers don’t know to ask and helps companies get out of their “departmental fiefdoms.”
A DynamicAction scan, for instance, can flag that one product is selling so well that its inventory is likely to sell out at full price, opening the way for other slower-moving goods to be placed more prominently to juice sales.
While the system is typically used to optimize web businesses at first, it can also be used with store data for an omnichannel approach.
DynamicAction said its top five retail clients experienced 91 percent full-price sell-through in 2015. (The company works with a host of big names, including Tesco, Brooks Brothers, Nine West and El Corte Inglés and has clients in 120 countries.)
“Every retailer has a ton of data, and more coming in day after day,” said John Squire, chief executive officer and president of DynamicAction. “It’s being able to pick out of the haystack this one tiny little needle.”
Sir Tom Hunter, the Scottish entrepreneur who leads West Coast Capital, said, “Global retail is going through incredible change, and where there is change, there is opportunity. Data analytics will be at the forefront of that change.”