GS Retail

Lowering TCO by 30 percent with faster, smarter analytics

Published on 19-Dec-2011

Validated on 07 Oct 2013

"We need sophisticated analytics to be able to offer customers more of the products and services they want. IBM Smart Analytics System gives us the insights we need to propel growth." - Han-Yeol Yoon, Deputy General Manager, Information Service Department, GS Retail Co., Ltd.

Customer:
GS Retail

Industry:
Retail

Deployment country:
Korea - Republic of

Solution:
Big Data & Analytics, Big Data & Analytics: Operations/Fraud/Threats, Team Solution Design

Overview

GS Retail Co., Ltd. (GS Retail) is a conglomerate of retail chains that has modernized the Korean retail industry since its establishment in 1971. The group has four businesses: GS25 convenience stores, GS supermarkets, GS Watsons and Mr. Doughnut.

Business need:
GS Retail’s aging data warehouse systems could not perform the sophisticated data analytics the company needed to retain customers and grow business. The three separate data warehouses were slow to load and process, and bottlenecks occurred when a large number of users attempted access. There also was no data compression, so growth in data led to purchasing of expensive storage disk.

Solution:
The company implemented the IBM Smart Analytics System 5600 which brings together IBM hardware, software and storage to create a fast and easy-to-deploy, end-to-end business intelligence (BI) environment. The solution provides high performance both in handling simultaneous accesses and in processing mass data batches. It also features deep compression capabilities that result in significant savings on storage.

Benefits:
60 percent data reduction due to data compression; Up to 2.5-fold faster batch processing (6 hours vs. 9-15 hours); 30 percent reduction in TCO for data warehouse including storage disk, maintenance and back-up expenses; Availability of sophisticated analytical functions such as cross-data analytics

Case Study

GS Retail Co., Ltd. (GS Retail) is a conglomerate of retail chains that has modernized the Korean retail industry since its establishment in 1971. The group has four businesses: GS25 convenience stores, GS supermarkets, GS Watsons and Mr. Doughnut.

The need
GS Retail maintained separate data warehouses for convenience stores, supermarkets and its customer relationship management (CRM) system. Implemented approximately 10 years ago, the data warehouses were aging and in need of a performance upgrade. More than 600 store managers and marketing executives used the system, and there were complaints of bottlenecks when a large number of users attempted access, as well as slow loading and processing. Batch processing, which involves processing a large number of jobs that can run without human interaction, took 9 to 15 hours to complete, running over into store hours.

It was also difficult to achieve optimal data analysis, such as comparing results by territory, to improve business outcomes. With three separate data warehouses managing information coming from different sources, it was impossible to perform cross analysis or sophisticated data analysis.
Data volumes were growing, but without the ability to compress data, backups and storage required expensive investments in disk space. GS Retail required a high-performing, intelligent data warehouse environment to enable quicker analysis and processing of mass data and a more organized, sophisticated CRM.

The solution
GS Retail decided to implement a new data warehouse analytics system (DWHAS) data mart to provide the analytics it needed to propel growth, with better performance and cost efficiency. The company was looking for significant savings in hardware, software, operating and people costs and faster time to value with a reduction in the time and speed associated with deploying the data mart.

Having decided on an appliance-like system designed exclusively for data warehousing, GS Retail evaluated four-to-five appliance products using benchmarking on key scenarios such as mass data processing performance, performance in handling concurrent users, ease of maintenance, stability and implementation costs. Specifically, GS Retail needed a product that would perform best in two different types of functions including handling online transaction processing (OLTP) and simultaneously accessing users and mass data batch processing. In the end, GS Retail chose the IBM® Smart Analytics System 5600.

The IBM Smart Analytics System 5600 brings together IBM hardware, software and support to create a fast and easy-to-deploy, end-to-end business intelligence (BI) environment.

With their Smart Analytics System, which is based on IBM InfoSphere® Warehouse software, GS Retail can quickly and cost-effectively deploy new data mart and data warehouse managed application systems (MAS). Smart Analytics System provides faster time-to-value and reduced cost because of the deep integration and optimization of IBM software, server and storage. The IBM Software IT Architect (SWITA) blueprint designed for GS Retail allows the company to rapidly build new information management systems. With its modular design, IBM Smart Analytics System 5600 can affordably grow with the expansion of the business and data volumes.

The IBM Smart Analytics System 5600 provides high performance both in handling concurrent users and in processing mass data batches. The solution reduces Service Level Agreement (SLA) response times to queries about retail market analytics. It also features deep compression capabilities that result in significant savings on storage.

In addition to performance improvements, the IBM Smart Analytics System 5600 has laid the foundation for more customer-oriented information analyses, such as market basket analysis, which reveals buying patterns among consumers to enable retailers to cross-sell and up-sell.

The benefits

  • 60 percent data reduction due to data compression
  • Up to 2.5-fold faster batch processing (6 hours vs. 9-15 hours)
  • 30 percent reduction in TCO for data warehouse including storage disk, maintenance and back-up expenses
  • Availability of sophisticated analytical functions such as cross-data analytics

For more information
To learn more about IBM Smart Analytics System, please contact your IBM sales representative or IBM Business Partner, or visit the following website: ibm.com/smart-analytics-system/5600

Products and services used

IBM products and services that were used in this case study.

Software:
IBM Smart Analytics System 5600

Legal Information

© Copyright IBM Corporation 2011 IBM Corporation Software Group Route 100 Somers, NY 10589 U.S.A. Produced in the United States of America December 2011 All Rights Reserved IBM, the IBM logo, ibm.com, and InfoSphere are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml Other company, product or service names may be trademarks or service marks of others. The information contained in this documentation is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this documentation, it is provided “as is” without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this documentation or any other documentation. Nothing contained in this documentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM (or its suppliers or licensors), or altering the terms and conditions of the applicable license agreement governing the use of IBM software.