Gaps’ Dilemma: Integrating Data Analytics With Creative Design For Fashion Trends Analysis

The Problem Faced by Gaps in Identifying Trend Patterns

Discuss about the Business Problem of Gaps.

Gaps is a fashion apparel shop which is currently facing a decline in the sales rate due to lack of analytics measure that could identify trend patterns. As a result, there is a rise of decision making that is taking place to integrate data analytics into the company. Data analytics is necessary for the company but that will lead to the expulsion of other cost-creating elements like creative designers, and it is a risky move for a company to take such a step. The study focuses on the alternatives and the risk associated with such a move.

The problem faced by Gaps regarding the analysis and understanding of the tastes and preferences of the customers regarding fashion apparels. In the recent years, there has been a major shift in the retail industry regarding several marketing trends and change in the trend of human desire. In the recent periods, it has been identified that there are currently some sweeping changes in the trends that are taking place due to the exposure of people with the social networking sites. In the recent periods, customers are getting more informed about the fashion trends, more varied and refined in their demands, and accordingly there has been a rise in the demand for varied products in the market (Fernie and Sparks 2014). However, this has created a major problem for the retail organizations as a whole. In the retail sectors, the business has created the problem of understanding the changes in the demands of the customers. Due to this problem, Gap has faced a decline in their sales, which they have considered to be the result of the same problem. As a result, the company wishes to expand it analytic sector into the internet, and through the help of data mining, it could create a predictive analysis and gauge the rising trends of the customers (Nawaz, Salman and Ashiq 2015). For this purpose, Gap is attempting to expand their technical line-up to include such analytical techniques in their area. However, there is a major issue to address in this case: whether the prediction of a creative designer could be outperformed by predictive analysis made by the data analytics? This is a genuine which Gap might choose to address by combining to the two forces, as the innovation of a creative designer would help in the trend setting of a specific fashion statement which would not be possible by the Analytics area. The entire senior management, however, is facing a doubt regarding this case, as it brings up the disturbance in the general harmonious relationship that exists between creativity and commercialisation, designers and merchants that exist at most fashion brands (He and McAuley 2016).

Issues with Integrating Data Analytics and Creative Design

Gap also faces a problem regarding the medium through which it would like to interact or set up deals with the customers or others in general. In this case, taking into consideration the recent rise in online e-commerce transactions, Gap needs to change their selling model and upload their products online. However, for the achievement of this process, the company needs to put their product under Amazon and for that reason, there will be a middleman between the organization and the final customers (Lueg, Pedersenand Clemmensen2015). There is a problem posed in this case, as in that the customer information would not come to the company who would require it for the data analysis part, but would rather stay with Amazon, a third party, and hence, would have no help to the company to set up the predictive analysis part. Hence, for the main aim of Gap, regarding setting up of an analytical part in the organization to help in the trend setting would become in vain if the company hosts a certain product in the online platform of someone else.

In the case of this specific area of integrating the business with the IT section of analysis, there is a certain amount of investment that the company has put into to bring about this major change in the system. However, for this purpose, there has to be a department to be set up which actually deals with all the specific aspects that are related to the organization or the trend analysis of all the masses that are involved with the organization (Ott and Longnecker 2015). In general, the company has invested and set up an analytics section and has put forward certain radical changes in the organization so as to cut costs, and they have done these changes in a manner so that they would be able to eliminate traditional creative designers and using other resources, the company wishes to enlarge and create a collective ecosystem, a kind of a digital field that will help in the increase of the input of data which requires to be analysed and creating such a situation conducive for data intake and data analysis. The main points that the company wishes to take part in are:

• Data Mining: Data mining is a way in which certain non-personal data are collected by the company and with the use of these data, there is a major analysis done on the collected data. The data used in this case is generally customer choices, links clicked or visited, websites, frequented, etc., all of which one to understand customer behaviour and to see a general way in which the trends and general customer needs are moving towards (Guerciniand Runfola2015). This is generally done through Google Analytics as Google is one of the most popular website and it is through this data collected by google that one can make a use of the same to measure customer likings and behaviour.
• Analysis of own data: Gap has its own database in which the company can in general store different kinds of data about customers and their preferences and by the use the same to create a general trend analysis by making sure how the company could select the next season’s assortment. By the selection of the specific data, the company can create a general list of the customer preferences and in that manner, the customer can make sure that they could retain the customer base that they already have and do not lose any in the midst of the change.
• Predictive Analysis: Once all the different kinds of data has been collated by the organization, it requires to pass the same data through some kind of predictive analysis and in that manner, create a prediction of how the trend is going to go forward and change in the midst of it. There is a necessity for the measurements to be conducted in this area, through the analysis of the data used, the predictions could be conducted. It is through the predictive analysis made by the company on the basis of the analysis of bigdata collection, that there could be a proper of identification of change in trend or trend spotting and would help the company to prepare for the same.
• Development of alternate online distribution: It is possible for the organization to create online distribution channels, or to use existing online distribution channels to expand the reach of the products (Choiand Cheng 2015). As of now, Gap is facing a decline in sales, and so there would be problem with profit since the company must expend some amount in the different aspects of marketing. But if the company chooses to develop different online distribution areas, then it will possible for the company to reach out, diversify sales, and also, identify different trends processes.
• Product development strategy: Once the company has identified certain trends and can use it to create certain predictive analysis, it is important for it to start on development of the product that is demanded by the customers. By starting to work on specific products, there is a possibility for the company to bring it out and create a trend that will boost specific and unique sales of the company (Moser2015).

The problem that the company is facing is whether it would be wise to discard the creative designer in place of the trend analytics, which would have the problem of deleting any form of innovation from the market. There is also, a problem regarding the online distribution selection which the company requires to do, in this specific area. The company however, have already begun to integrate the process of collecting bigdata and analysis and the discarding the creative designers, and using those resources in a manner to pile up on this area trend analysis and prediction.

Alternative Solutions to Gaps’ Dilemma

Since the company is facing a problem in these areas, it is necessary that the company finds some form of solution in this area so that they could bring about certain changes in their strategies and by the use of those changes, there could be a proper way in which the organization could be made to boost the sales of the products (Yandell 2017). Regarding this area, the company can also choose to not do anything, but wait for the sales to rise automatically, but since the company is behind times regarding the different analytical procedures, it would be necessary for it to go for the different alternatives in this area. Some of the different ways in which the company can choose to go for the boosting of their sales in the current business industry, that is, of fashion apparel are:

• Own Online Distribution: Since the company has to focus on both the expansion of sales through online distribution and the collection of big data to identify and predict change, it would be best of the company to create their own online distribution portal which they can use to expand the reach of their products. As mentioned by the senior management, using a third party for the online distribution of products would result in the data being stored in the storage system of the online third party. As a result, the main other function of the company, that is to grow along the lines of the changing trends of the masses and customers becomes in vain and remains out of focus. This would help the company to grow and though it might boost the sales due to increase in product reach, it will not be possible for the company to acquire data and to grow with the trend planning (Schabenberger and Gotway 2017). Hence, this kind of problem could be avoided if the company has its own online distribution portal wherein, the different information could be fed into and used by the company for the different kinds of analytic procedures necessary for the same.
• Combining creative designer and the bigdata analytics for identifying and creating trends: It would be unusually reductive decision on the company’s part if they choose to eliminate the entire creative designer section of an organization as a replacement to the trend setting. It is necessary for a fashion apparel industry to create innovation and to release the innovations into the market to create a trend. It should run concurrently with the aspects of making products which should already fit the running trends on the masses. Hence, for the purpose to serve both the trend setting part and the trend following part, the company must try to handle both in a manner that will help them boost sales through innovative products (Assunçãoet al. 2015). For this purpose, it would be necessary for the company to combine the creative designer section with that of the bigdata analytics part so that by doing so, the designer could take the cues from the different ways in which the customer trends are moving, and using those specific information, the designer could also bring about certain changes in their design process. The bigdata should be such that it should complement the designing process and would help the designer to work through it and come up with new innovative ideas and designs which could be used to create a boost in the sales, not out of trend conformation, but rather out of innovation (Schultz2016). Similarly, the data analytics could use their measurements to help the designer in the designing process and through that way, it could be possible for them to learn how the innovative products are faring in the market. Therefore, there should be a complementary relationship between the two.
• Globalization: While diversification process is possible for a company online, it remains limited to the geographical boundaries of the headquarters country of the company. Since, Gap happens to be a famous company, it could diversify their market physically by entering into foreign markets. In this way, it could have a major cost in the entry of the different area, but such costs will be turned into profits in the long run (Monroe et al. 2015). Also, the recent stock collection due to the decline in sales could be sold off to the people in the different other countries. For the diversification process to be properly created, there will be a need to ensure the presence of the company in the area. There will be a trend-setting procedure in this case, and since, it will be solely relying on trend setting there would not be a need to increase any part on the data analytics sector but rather to rely more on normal survey and the creative designers’ abilities to create the proper goods, by using innovative design, and hence creating a general trend toward this area (Jacobs, Chase and Lummus, R.R., 2014). Now, for the purpose of this kind of step, globalization could not happen all of a sudden. There has to be a creation of a demand in the host country so that one could create a smooth entry for the company. As a result, the preliminary step should be the transfer of present product into the different other countries to create an identity in that area and for this reason, there will be a boost in the profits due to stock clearance, there could be a general understanding of the trends of other areas, and a general diversification of sales reach would help in boosting sales (Beheshti-Kashiet al. 2015).

• Feasibility: The above alternatives have certain feasibility attached to it but the feasibility attached in on a different level. They also have certain costs, so there needs to be a calculation of the feasibility in comparison to the costs and thereafter, there could be a certain amount of way to find in this area.For the release of the companies own internet portal which they could use for the selling of their products online and thereafter be capable of collecting different sorts of data from individuals about the shopping habits and trends, it is much more feasible to build something rather than to use a third-party portal for the same purpose. However, it is clear that there will be certain costs attached to it (Blázquez 2014). The second alternative of combining creative design and data analytics would be most feasible in terms of the fashion industry as it would help the organization to tackle both the innovative side of the affair and the analytics part (Hammer, 2015). The third alternative however, would be feasible in the long run only, but it will have a major cost drain in the current period. The feasibility of the third alternative of globalization depends on many different factors including the future effects and so, there is a chance that it may not become feasible at all in the end.
• Benefits: On the basis of feasibility, it is necessary to look at the different benefits that each kind of alternatives offers. The first alternative has the benefit of being more capable of providing a secured platform or channel for the company to deliver products and to get filled with different kinds of information. The second alternative is also beneficial because it provides the company with two different aspects of the fashion industry which it needs to follow to survive – one being release of creative designs and the other being the continuation of serving the existing trend needs of the people (Van Der Aalst, et al., 2016). The benefits of diversification and globalization has the mark of expansion and creation of a global identity for the company as well, yet there needs to be a comparison made in this case, in relation to the amount of costs which is required to attain this benefit (Scholes, 2015).
• Costs: There are different kinds of costs that shall occur in this case when the organization is trying to establish the different kinds of ways to distribute products or collect information or to make an identity. There are web costs, and technical operating costs that shall come up when the organization is trying to establish an online identity. There will be technicians employed to look after the matter, and marketing costs as well, which would result in being recurring costs for the organization. In the case of the second alternative, there would be a major capital costs which would be necessary to integrate the data analysis part of the organization with that of the creative design ( and Wu, 2017). There will be recurring costs in this case which would be due to the payment to technical analysts and designers. The capital costs should also include the entire structural change in the organization which integrate technological data mining into the system, and there would be contractual prices with Google and other data mining applications. The last one will have a major cost drain as there would be complete shift of the company into the global area. It would be transformed into an MNC and there would be requirement of country based license fee, localization based collection and distribution of fees and other such aspects in the area of the organization to create proper diversification process (Rosemann and vom Brocke, 2015).
• Risks:It is necessary to create a risk log for all the alternatives to find out whether any one of them is suitable in terms of the risk that the alternative entails. The first alternative entails the risk of loss of personal information, change in the system and hence there will be a problem regarding change management, and the security features failures in the matter (Schivinskiand Dabrowski 2016). For the second one, there will a problem regarding the change management system, and also, regarding training and facilities to create an integration process in the organization for the benefit of the groups. The third alternative has the most risk because it will create a change in the structure thus will be related to change management, it will have an immense cost associated with it which will have the risk of returns and there is no surety about the demand formation (Poon, Lam and Moon 2017). These can be represented in the risk log and risk matrix in the following manner.

From the above risk log, some of the following factors should be seen and undertaken which are:

1. Problems with Integration: This has a low problem can could be tackled with proper training.
2. Problems with information collection: This is a medium problem with low impact and IT based and could be solved by technicians.
3. Loss of information: This is a major problem since it will affect the goodwill of the company and should be solved by security analysts (Diamond, Diamond and Litt2015).
4. Change Management system: Since there will be some major changes in the system, there is need for change management system initiated by the management for smooth transitioning.
5. System Failure: This kind of problem could occur when there is a complete system failure and to remove this problem there would be a need for network analysts
6. Loss on Returns: Since all these cases have some costs, there is the problem of financial costs wherein there could be losses on the investments made.

Among all the different kinds of alternatives that have been used in this case, the best alternative that could be used would be the second alternative, that is, the alternative where there can be a combination of creative design and big data analysis (Porter and Kramer, 2019). This could be chosen as the best alternative since it has a good feasibility in its respect and it has the ability to cater to both the specific points where the company is facing a difficulty. It is in line with the different fashion trends wherein there is a need to be both a creative trend setter and the trend follower and the customers could be both satisfied and the company will be able to make their own signature in their line of work (Jordan and Mitchell 2015). This would give the company a major competitive edge and will help to establish an individual identity of the company among the masses. Also, there is already a plan for the company to establish a data analytics part, and the creative design section is present, so there would not be much requirement regarding whole structural changes in this case. While there will be recurring costs, the initial costs for the integration process will be low and hence, it will help in an easy transition into the new way of the company (Caroand Martínez-de-Albéniz 2015).

To initiate the alternate that has been chosen, the following project plan should be considered:

Deliverables: In this case, the outcome of the project will be the complete integration of creative design process and analytics and this could be understood through:

• Successful implementation of change management process
• Performance measures

Timing: The plan should have a timing to each of the processes and this timing should be supplemented with a Work Breakdown Schedule. The following should be considered:

• Timing of each sub projects
• The total timing
• Limited flexibility in timing

It is better to complete integration with 1 and half years.

Costs: Decisions regarding costs should be made by the management and there should be budget prepared which will help in the management of the finances put into the project.

Milestone: Each part of the project should carry a certain milestone compared with the project aim and the timeline along which such an aim is fulfilled. For the purpose of this case, the milestones should be understood and fulfilled on the basis of a Gantt Chart which will help in the measurement of the same (Schön, 2017).

Risks and Mitigation: As has been studied before, there will be risks attached to the plan and this risk would include different financial and other risks and to tackle the same, there should be a way in which the risk management should be conducted, along with risk identification and risk mitigation processes (Doppelt, 2017).

Conclusion

Hence from the study it is clear that there is a need for a business plan in this respect. Once the business aligns itself with the IT conditions of a company, it is necessary to identify and associate different kinds of alternatives in this area for the company to grow and adopt. The analysis of the alternatives has shown the company to have certain benefits and feasibility but each alternative has a risk attached to it. Out of those alternatives, the integration seems to be the best option and accordingly a high-level project plan has been drawn up to implement it successfully.

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