Business analytics tools have become very popular in many industries, not the least of which is retail. While the technology is poised to offer valuable insights, it presents some challenges that can lead to misinterpreted data and irrelevant insights, writes Adrian Ott, CEO of Exponential Edge Inc.

Analytics tools are so widely deployed throughout retail now that they are being used by employees whose expertise lies far afield from data analysis, such as store managers. To be effective in providing insights, analytics have to be easier to comprehend and less vulnerable to misinterpretation, Ott reports.

The growing mass of data that retailers are collecting presents analysis risks of its own. With so much information at hand, it becomes tempting to produce "that's interesting to know" reports rather than analysis that leads to business value.

As retailers work toward greater personalization in interacting with customers, there is backlash from some customers who prefer to retain some privacy. This constituency has been known to provide false data, throwing a wrench in the analytics work.

To ensure that analytics remains relevant in the face of these challenges, the tools will have to come with relevant filters as well as measures that can distinguish between "interesting to know" insights and insights that are actionable, Ott writes.

For more:
- see Adrian Ott's post at Fast Company

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