Infor is hoping to differentiate its recently announced CloudSuite Retail offering through a strategic partnership with Predictix, which develops big data analytics technology focused on retail. Along with becoming a Predictix reseller, Infor is investing $25 million in the company for a minority ownership stake. Here are the key details from Infor's announcement:
Atlanta-based Predictix experienced more than 40 percent growth in SaaS subscriptions in 2015 and counts 5 of the top 15 global retailers as customers, managing more than $60bn in weekly forecasts. LogicBlox, the company's technology platform underlying all Predictix applications, revolutionizes the development of next-generation predictive and prescriptive applications, and has attracted funding from DARPA, the Defense Advanced Research Projects Agency.
Predictix applications feature machine learning and predictive (what will happen) and prescriptive (how to respond) analytics. Unlike legacy applications accessible only by select "super users," Predictix is designed for people across the retail operation to easily configure and build models, driving greater user adoption and enabling greater agility.
Infor plans to integrate Predictix into CloudSuite Retail, in order to deliver analytics for areas such as demand forecasting, merchandise financial planning, supply chain network flow optimization, and allocations and markdowns.
Analysis: Infor-Whole Foods Relationship To Underly the Predictix Push
Whole Foods is Infor's launch customer and co-development partner for CloudSuite Retail, and the Predictix partnership will tie into that effort.
Predictix's platform supports a number of different types of retail, including grocery, online, brick-and-mortar and fashion. Whole Foods, which is already a Predictix customer.
The food supply chain and grocery in particular is incredibly driven by factors such as promotions, sales, and the creation of category relationships, says Constellation Research VP and principal analyst Guy-Frederic Courtin.
To the last example, "I want to make sure if I promote beer, that pretzels are available," Courtin says. "You can think about those simple types of models, but as you get more insight into the data, what can you do from the standpoint of trying different things, being more efficient and anticipatory. It makes a lot of sense in grocery because it's very data-heavy, time sensitive and there are very thin margins. Any insight you can get is going to have an impact."
It's unclear how much functionality Infor and Predictix end up creating with grocers such as Whole Foods in mind can carry over to other types of retail, Courtin adds. "Because these sub-segments are so unique, I don't know, but at least it will give them a start," he says. "There are lessons in everything so it certainly should help."
Meanwhile, it will be interesting to see what Infor does in the longer term to evolve CloudSuite Retail, given the vendor whether consciously or opportunistically chose a grocery chain as an initial launch partner. "Grocery has some differences from apparel or durable goods," Courtin says. "It's fast-moving and has a lot of volume but not the same level of complexity from the assortment side as clothing, for example. The question becomes for Infor, do they then try to pick off a durable goods player to do the same thing with? It's something to continue to watch."
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