Data in retail has long become a buzzing topic. Retailers worldwide are constantly looking for avenues to improve retail business and decision making using data, which is otherwise unused. When it comes to gaining advantage using data, the German football team’s story is always an inspiration.

If you are a football fan, you will probably remember the German national football team’s unbeaten run in the 2014 FIFA World Cup. After thrashing Brazil 7-1 in the semi-finals, Germany brought Argentina to their knees in a nail-biting final that they went on to win 1-0 in extra time. However, the real hero, the 12th man, during their dream run, was big data analytics. Using SAP HANA, Germany recognized their average ball possession time and reduced it from 3.4 seconds to 1.1 seconds. If big data analytics can help a national football team win the World Cup in 2014, imagine the limitless possibilities of data a decade later. 

Data analytics has taken the retail industry by storm. CEO Insights engages in an exclusive interview with Venkat Raghavan, Director, Analytics, Tesco Business Solutions —one of the world’s largest retailers of consumer goods, to learn more about the leadership dynamics in the analytics segment of the retail industry. With nearly two decades of experience, including setting up an enterprise-wide analytical center of excellence for a $500 billion retail company, Venkat is an excellent leader and problem solver. Below is an excerpt from the interview. 

In conversation with Venkat Raghavan, Director, Analytics, Tesco Business Solutions

Could you shed light on how the role of Analytics & Science leaders has evolved in helping leaders in today’s business environment?

In today's fast-paced business world, business leaders have seen their roles change dramatically, moving from gut-based decisions to data-driven strategies. This shift is crucial for large organizations, marking a cultural change toward using data to make informed decisions. I believe the main goal of analytics & science leaders is to guide organizations into a time where decisions are quicker, deeper, and based on data. It's about building an environment where uncertainty is tackled with data insights, providing a clear view of opportunities and risks.

The focus is on establishing a clear connection between investments in analytics and measurable financial impact on areas like sales, profitability, and cash flow

We can pinpoint three key roles that highlight the role of an analytics leader: creating access to new opportunities, building a capability engine, and delivering measurable business value.

Enabling access to new opportunities is one of the vital aspects. Analytics leaders act as catalysts, nurturing an environment where decision-making thrives on data-driven insights. Businesses inherently operate within a landscape of uncertainty, presenting both threats and opportunities.

Building a capability engine is the second part. Having established the potential for data-driven decision-making, the next step is building capabilities to deliver on that potential. This requires a strategic blend of skills development, data platforms, and fostering strong internal and external partnerships. Analytics leaders play a key role in defining the talent DNA we need, creating the right environment for success, and enabling teams through targeted skilling programs and the right tool sets.

Delivering measurable business value must be the goal. Gone are the days when analytics was just about generating reports. Today’s analytics leaders need to go beyond insights. The focus is on establishing a clear connection between investments in analytics and measurable financial impact on areas like sales, profitability, and cash flow.

How do you perceive leaders using data and analytics to build a data-driven culture? How does data-driven leadership help in shaping culture?

Leaders using data and analytics to build a data-driven culture truly embody modern leadership. By relying on data insights, leaders can make informed decisions, guide strategic initiatives, and create an environment where data is valued and used throughout the organization. This approach changes the organizational culture, ensuring decisions are based on solid evidence rather than just intuition. Data-driven leadership promotes transparency, accountability, and continuous improvement. Leaders set the example by advocating for data in decision-making and encouraging everyone to adopt data-driven methods in their daily work. This not only boosts efficiency but also gives colleagues a sense of ownership and confidence, knowing their decisions are backed by data.

While data and analytics provide valuable insights, what techniques should leaders follow to communicate these insights?

While data and analytics provide valuable insights, communicating these findings effectively is an art. Leaders must go beyond raw numbers and complex algorithms and master the skill of storytelling to make their insights compelling and impactful. Crafting a narrative, tailoring the message, and encouraging collaboration are the most important aspects. 

It all starts with crafting the right narrative. By turning data into a story, leaders can capture their audience’s attention and make complex information relatable and memorable. Whether illustrating the journey from problem to solution or highlighting the human impact behind the numbers, storytelling makes data a powerful tool for persuasion and engagement.

When it comes to tailoring the message, Leaders must adapt their communication style and content to suit different audiences, whether presenting high-level insights to executives or detailed data to analysts. This ensures everyone grasps the significance of the findings and their implications for decision-making.

Encouraging collaboration is of paramount importance. Fostering a culture of open discussion and inviting feedback from team members helps communicate insights effectively. This approach promotes a shared understanding of the data and collective ownership of the insights.

Effective communication of data and analytics blends storytelling, audience awareness, and collaboration. By mastering these techniques, leaders can turn raw data into actionable insights that drive informed decision-making and inspire positive change within their organizations.

What is your leadership approach in aiding the decision-making process?

In navigating the complexities of decision-making within Analytics and Science leadership, my approach is deeply rooted in fostering a culture of data-driven decision-making while maintaining a keen focus on strategic alignment. As a leader in this domain, I prioritize collaboration and partnerships, working closely with CXOs and key stakeholders to establish a Centre of Excellence dedicated to analytics. By leveraging a combination of advanced methodologies and practical problem-solving, I aim to address both immediate decision-making challenges and drive transformative initiatives across group business. This involves not only harnessing the power of data but also advocating a cultural shift towards adopting analytics as a core driver of strategy. Through these efforts, I strive to empower my team to make informed decisions that drive sustainable growth and innovation in today’s rapidly growing and emerging retail business landscape.

Which areas does Tesco plan to invest its time in to set benchmarks and make a difference in the market going forward?

At Tesco, we have four strategic priorities to drive long-term strategic advantage. These are: magnetic value for customers; I love my Tesco Clubcard; easily the most convenient and Save to Invest in. 

‘Magnetic value for customers’ embodies our aspiration to deliver a holistic value proposition to our customers, covering price, quality, and sustainability. I love my Tesco Clubcard is our 29-year-old loyalty program used by more than 20 million customers in our business.  It gives us the ability to manage vast amounts of data, gain unique insights and respond quickly and effectively. 

To be (easily the most) ‘convenient’ means serving customers wherever, whenever and however they want to be served.  We believe we can do that better than anyone by leveraging our existing reach and strong network.

Save to invest denotes that cost efficiency is a deep-seated principle within Tesco that has been brought back to the fore in recent years. It has enabled us to regain our competitiveness and rebuild the business's financial strength.

Data, Analytics and Science acts as the underpinning to help us make decisions across the four strategic priorities, to deliver speed and decision to everything we do and everyone we partner with – all anchored to our purpose of serving our customers, communities and planet a little better every day.

What would be your advice to budding leaders accessing new opportunities?

When exploring new opportunities and stepping into leadership roles, my advice for budding leaders centers around two key principles that have positively shaped my own journey.

Firstly, challenge the traditional notion of intellect and smartness. We're often conditioned to think that intelligence is about how much we know. However, in today’s rapidly evolving world, especially with the growth of technologies like AI, the focus is shifting. It’s not just about what we know, but about recognizing what we don’t know and embracing a mindset of rapid learning and adaptation. True intelligence lies in identifying gaps in our knowledge and quickly acquiring new skills and insights.

Secondly, in a world full of digital distractions and endless choices, aspiring leaders must master the art of prioritization and sacrifice. While technology gives us unprecedented access to information and resources, it’s easy to get overwhelmed by the abundance of options. To truly excel and emerge as a leader, you must be willing to make tough choices and prioritize your goals. This means understanding that you can have anything you want, but not everything. Success requires focus, determination, and the willingness to sacrifice distractions in pursuit of long-term goals. By embracing disciplined focus and selective prioritization, you can direct your energy toward making a meaningful impact and establishing yourself as a leader in your field.

Ultimately, this advice encapsulates a broader philosophy: embrace the unknown, cultivate a mindset of continuous learning, and be willing to sacrifice for your goals. By internalizing these principles, budding leaders can navigate the complexities of the modern world with clarity and purpose.