Derek Rodner
VP, Product Strategy
Agilence, Inc.

Big Data is considered an IT buzzword by many Loss Prevention (LP) experts; however, this is more than a fad and it’s time for LP and security experts to listen up! In the four years since the term Big Data was originally adopted within the IT community, the number of data sources has exploded, now including smart phones, social media posts, web interactions and much more. Each and every day an estimated 2.5 quintillion (that is 17 zeroes after 2.5) bytes of data are created, and nearly 90 percent of the world’s data has been created in the past two years, according to IBM. As a result, experts predict that by 2015, the global market for Big Data technology and services will swell to $16.9-billion, from just $3.2-billion in 2010. So, what does that mean for retail LP? A lot!

Within the next two years, 30 percent of retailers will run out of storage capacity, according to The Edgell Knowledge Networks, and while nearly 80 percent are aware of the Retail Big Data concept, less than half understand the implications it has on their business. One immediate implication is clear, if retailers continue to ignore this issue they will be overrun by it.

Beyond the amount of data, the types, sources and implications of the data are key to understanding and managing this growing stream of information. While there are two main types of data - structured and unstructured - there is a seemingly endless list of data sources. The number of data points continues to grow as data capture technology continues to advance, but the true power of Big Data comes in the insights.

Big Data can be a game changer for LP and security. Each and every data stream, whether it be structured or unstructured, provides a unique glimpse into the security and efficiency of an organization. From dwell time to the T-log, each and every data point is a piece in a larger puzzle. Armed with this information, LP experts can make calculated decisions based on tangible facts in order to cut shrink maximize profit.

With that being said, I think it’s time for Big Data to stop being categorized as a buzzword and begin its reign as a top retail tool. What better way to accomplish that than by formalizing this definition for the industry:

       Retail Big Data (n.) – is the collection of all data and video in a single place, available in real-time.

What could you do if you had all of that information available at your fingertips?
Assuming you don’t currently have this – since only two percent of retailers do – it’s imperative that you get involved in your organization’s process to develop and drive a Big Data solution. Big Data has the potential to drastically impact LP, so you need to get yourself a seat at the table. What role are you playing in the Big Data equation?