A Smart Retail Process Rated on its Cumulative Process Intelligence Quotient (CPIQ)

Jim   Sinur
Jim Sinur VP and Research Fellow, Aragon Research Read Author Bio || Read All Articles by Jim Sinur

In my series "How Smart Is Your Business?" I've outlined the four dimensions of the ISAA framework, enumerating the ways to measure the intelligence of your processes in terms of being:  Intelligent, Social, Agile, and Autonomous.  I have proposed a way to measure and visualize the cumulative intelligence of a process by creating a shape that lets us observe its cumulative IQ — a Cumulative Process IQ (CPIQ) diagram — and have given the CPIQ a test drive.  I promised to rate some innovative processes using the cumulative process intelligence quotient (CPIQ).  Last month I looked at a smart medical process; this month I describe another one of my favorites, a smart process that manages the retail therapy experience.

The Challenge

Create a highly-individualized shopping experience for customers, while managing inventory levels and keeping special situations in mind.  For clients with registered cell phones in an area of the store, invite them in with specials that relate to the clients' potential needs/wants, leveraging known information to increase revenue.

The Solution

Determine the physical location of the customer in the store, and push offers related to the location.  For instance, if the client is in the men's department looking at ties, offer a coupon for shoes or men's scents.  In the case where the mobile opportunity is not available, print related offers on the back of the receipt of current purchases.  This has increased revenue, reduced inventory, and pushed slower lines into the fast lane.  This is an impressive business solution that leverages process.

Figure 1.  CPIQ of a Smart Retail Experience.

Net; Net

In this organization's CPIQ diagram (Figure 1) you can visually see where the intelligence of this process is more advanced.

This is a highly-summarized and anonymous case study provided by Tibco.

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Standard citation for this article:

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Jim Sinur, "A Smart Retail Process Rated on its Cumulative Process Intelligence Quotient (CPIQ)" Business Rules Journal, Vol. 15, No. 10, (Oct. 2014)
URL: http://www.brcommunity.com/a2014/b781.html

About our Contributor:

Jim   Sinur
Jim Sinur VP and Research Fellow, Aragon Research

Jim Sinur is an independent consultant and thought leader in applying business process management (BPM) to innovative and intelligent business operations (IBO). His research and areas of personal experience focus on business process innovation, business modeling, business process management technology (BPMT), processes collaboration for knowledge workers, process intelligence/optimization, business policy/rule management (BRMS), and leveraging business applications in processes. Mr. Sinur was critical in creating the first Hype Cycle and Maturity Model, which have become a hallmark of Gartner analysis, along with the Magic Quadrant. He has been active in the rules, data and computing communities, helping shape direction based on practical experience. Mr. Sinur has vertical industry experience on the investment and operational sides of the insurance and financial services.

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