Main article: X5 Retail Group
The directorate according to the Big Data X5 Retail Group expanded to several hundred people. What are they engaged in?
X5 Retail Group increased staff of directorate according to Big Data to 340 people, follows from the annual report of the company published in March, 2020. The directorate in March of the 2018th was created. Data brought TAdviser into X5 Retail Group that for 2019 the number of her employees grew by 200 people.
| ||We plan further gain of a command and hiring of professionals with necessary competences. Expansion is connected with development and implementation of new projects, - reported TAdviser in the company.|| |
In the annual report it is emphasized that quality and data availability – one of key factors of success for the company, and X5 of Retail Group pays much attention to the organization and the culture of data management.
| ||The directorate according to Big Data implements the culture of the management based on data and processes of management of data in which all business divisions and functions are involved, - it is specified in the same place.|| |
Information is provided in the annual report that daily the company collects about 7 million values of data through the of the loyalty program and uses internal resources for development of the analytical products and services helping to be differentiated from competitors in the market.
Several tens of services for internal use and external consumers are developed and develop in directorates according to Big Data. According to the representative of the press service of X5 of Retail Group, in networks of the company solutions on analytics and management of pricing, the range and promoaktivnost using the Big Data tools are already used.
For example, in 2019 the company carried out the pilot and began to implement the automated tender purchases of sugar, salt and other goods of category "Groceries" in retail chain stores Pyaterochka using the solution created on the basis of algorithms Big Data. Automation affected practically all stages of process of tender purchases: from the forecast of necessary amount of products before creation of the order and the delivery schedule on days. When forming lots for participants of the tender several parameters, such as products price at the exchange, the history of the previous biddings, seasonality, etc. are considered.
According to the annual report, using the solution on the basis of Big Data for the automated formation of the range now in networks assortment management on 28 types of goods, components more than 60% of all sales is exercised. New matrixes of the range are developed on the basis of understanding of demand from clients, roles of each of types of goods and their contribution to the general sales.
For the automated pricing the company has a separate system.
| ||Our system of the automated pricing allows X5 to make more exact and timely decisions concerning the prices. It helped us to improve perception of the prices and price positioning. Using algorithms and regular monitoring of the prices of competitors, we can automate at ourselves decision making about the prices, - the company in the annual report explains.|| |
The press service of X5 Retail Group told TAdviser that products on analytics of data for suppliers based on the uniform portal and efficiency analysis of use by partners of X5 Retail Group of advertizing channels are also implemented.
One more working product – forecasting of a response to actions, prevention of outflow of buyers, start of the personalized special offers which are picked up by method of machine learning.
Technologies of video control of queues, identification of emptiness on shelves, control of a zone of fruit and vegetables on the basis of computer vision are piloted. Concerning the last, in September, 2019 the pilot in 38 Pyaterochka shops and 6 Perekryostok supermarkets of Moscow and the Moscow region was started. The solution on the basis of computer vision in real time will recognize objects of different classes and also fixes their absence. In case of a deviation from target parameters there is an automatic notification of personnel of shop.
In department of fruit and vegetables the artificial intelligence is capable not only to analyze emptiness in general, but also to define existence or lack of separate goods on shelves and in boxes and also to fix violations of appearance of a zone. The press service of X5 Retail Group reported to TAdviser that this pilot still goes while the company processes results.
Follows from the annual report that Big Data are used in X5 Retail Group and for collecting and processing of a feedback from personnel of the company of all levels to use the received results for further decision making. So, in cooperation with directorate according to Big Data in mobile application which the staff of Pyaterochka uses the platform of polls was implemented. In 2020 it is going to scale it and on other businesses of X5 Retail Group.
X5 Retail Group transfers 95% of office employees for remote work
On March 23, 2020 TAdviser knew that X5 transferred about 17,000 employees to remote work, these are 82% of personnel of the Moscow offices. Till March 27, 2020 the quantity working at "udalyonka" will reach 95%. At offices there are only employees occupying crucial roles in terms of maintenance of continuous work of business.
Preparation of transfer to a remote format of work of staff of regional offices, including the service center in Nizhny Novgorod began.
For the organization of remote work in such amount by the company carried out a number of operational measures. For only several days requirements of all divisions of X5 and retail chain stores for necessary IT infrastructure were accurately defined: for March, 2020 about 14,000 licenses VPN are issued, about 10,000 corporate notebooks are brought into accord with increased requirements of security at remote work. IT support works in the mobilization mode: requests of users are processed within a special hot line, completion and mailing of necessary instructions is carried out, expansion of capacity of communication channels and VPN is made. All systems cope with the raised loading.
At the Moscow offices and also in shops of the Moscow region, compulsory procedure of temperature measurement of a body of employees at arrival is entered and during the working day, the temporary ban on business trips out of borders of the Russian Federation is imposed, holding actions and access for visitors is limited, resident instruction is suspended.
All employees who return from trips the abroad according to the order of the chief executive officer of X5, are obliged to pass the self-isolation period (14 days). At an opportunity the employee can work far off. All employees with the slightest symptoms of a SARS, including body temperature over 37 degrees, on objects X5 are not allowed.
At the same time load of employees of distribution centers, transport, shops which provide the increased demand from buyers increased. The number of personnel in shops is increased, the working schedule is changed and the additional personnel are brought to work. Work of offices is rebuilt so that to give the maximum support to work of distribution centers and shops.
Providing employees of retail with individual protection equipment continues: masks, gloves, disinfectors. In shops disinfection of premises, often used surfaces (carts, door handles, etc.) and also vent systems is regularly carried out.
Creation of Retail Innovation Tech Alliance
On February 25, 2020 "the M of Video Eldorado Group reported to TAdviser that together with X5 Retail Group, Beeline and Hoff created alliance on search and implementation of innovations. Retail Innovation Tech Alliance (RITA) will look for technological solutions both in the Russian market, and on international a startup platforms. Read more here.
Start of the first modules of Digital academy
Training in academy will allow to purchase or develop the technology competences necessary for effective work of a digital medium. Change management and products, the analytics and work with data, use of digital instruments, deepening of technical expertize and digital culture will be the main educational directions in academy. Rates are selected individually proceeding from a role of the employee in the company: technical functions and experts, owners of products, top management, linear personnel, etc. In academy employees of X5 and retail chain stores Pyaterochka, Intersection, Roundabout will be able to be trained.
More than 40 educational products for different levels of training are planned to start. Different formats of training are provided in academies: reference visits and exchange of experience, internal lectures, online courses, practical lessons and laboratories, coaching of a session, seminars and master classes. Teaching will be conducted both by representatives the companies, and the involved specialists from leading universities, the partner companies and the systems of online training.
| ||Business of X5 can be separated conditionally into two parts – traditional retail transactions and a digital block of tasks. For February, 2020 in staff only of corporate center X5 more than 1500 IT and Data-specialists. In 2020 we will actively increase their number for implementation of one of the directions of strategy – digital transformation of X5. One of tasks of academy to help the acting staff of the company to develop the technical skills and to acquire knowledge and competences. We plan that in 2020 several thousands of our colleagues will be trained,|
comments on start of Digital academy Tatyana Krasnopyorova, the HR director and to organizational development of X5 of Retail Group
In academy product X5 commands are already trained, and in 2020 there will begin the work internal schools in the Python and Data Science directions. Programs for the relevant digital directions will be implemented and there will be a single platform at which the staff of the company will be able to study.
The analysis system of delays at the checkout of own development is implemented in all shops X5
On December 24, 2019 the X5 Retail Group company reported about volume, the automatic system of the analysis of delays on cash registers is implemented in all shops of X5 networks. Authors of a system are 7 developers of the company, X5 became the patent holder. The solution underwent step-by-step implementation and completion since 2018, and for December, 2019 works in 15,752 shops. Read more here.
The pilot's results on automation of tender purchases of category "Groceries" in Pyaterochka
On December 17, 2019 the company X5 Retail Group announced the pilot's results on automation of tender purchases of sugar, salt and other goods of category "Groceries" in trade network "Pyaterochka". The solution created on the basis of algorithms Big Data X5 allows to increase efficiency of procurement process.
Automation affected practically all stages of process of tender purchases: from the forecast of necessary amount of products before creation of the order and the delivery schedule on days. When forming lots for participants of the tender several parameters, such as products price at the exchange, the history of the previous biddings, seasonality, etc. are considered.
Since April, 2019 the solution successfully works in the pilot mode for 20 product names of category "Groceries" in the macroregion Volga of retail chain stores Pyaterochka, providing 1326 shops. These are the goods of category which are most demanded at buyers: sugar, salt, rice, peas, grain, flakes. Testing showed that the automated approach allows to increase the forecast accuracy of required amounts, to reduce influence of a human factor. A system is also capable to monitor and analyze all process, to define its efficiency and stages requiring optimization and also to accumulate the user examination for further quality improvement of process.
In the nearest future the company plans expansion of this system in category "Groceries" for all regions of presence of retail chain stores Pyaterochka, inclusion of other categories of tender positions and also implementation of the solution in other X5 networks.
X5 Retail Group wants to pass to electronic price labels completely
On December 16, 2019 it became known of plans X5 Retail Group to equip all shops of networks "Pyaterochka", "Intersection" and "Roundabout" with electronic price labels. It is not the only digital project in the product retailer. In more detail here.
GPMD subscribed for data of X5 Retail Group for video advertizing campaigns
GPMD (Gazprom-Media Digital, the NSK subsidiary company) began to use the depersonalized information on purchases of consumers in shops of X5 Retail Group company (network "Pyaterochka", "Perekrestok", "Karusel"). Retail Group given to X5 will allow GPMD to target video advertizing campaigns on buyers of specific goods or brands, at the same time having reduced the cost of contact with target audience by 14%.
The advertizing campaigns of Huggies (Kimberly-Clark/Mindshare) and brands of the cat food and dogs implemented with the Group M agencies and also for May Tea company became the first projects placed by GPMD within cooperation with X5 Retail Group. Interest in placement of video advertizing using data of X5 Retail Group was already shown by producers of convenience goods (FMCG) – groceries, beer, snacks, energy drinks, candy stores and pasta.
The audience.x5.ru platform created by X5 Retail Group helps to create classroom segments of varying complexity depending on the frequency of purchases of brands in 1300 commodity categories and on some other parameters. The advertiser can start campaigns on stock of players of the Internet market. Based on a campaign expanded sales - lift - analytics on each of segments is available to the customer. In particular, the campaigns given about influence or separate creatives on sales increase.
GPMD uses data on purchases within hybrid model of placement. Seller suggests brands to use two types of targeting in one advertizing campaign not to lose a classroom scope: the first is based on data from X5 Retail Group, the second – on social and demographic data with a priority for consumers. Placement on a single platform of GPMD allows to implement end-to-end frequency and to exclude a simultaneous scope of the user on two signs.
Application of hybrid model reduces the cost of contact with target audience due to use of different strategy. So, the model allows to narrow an audience scope, having excluded those representatives social and demographic groups which are not consumers of this commodity category. Or, on the contrary to expand a scope at the expense of those people who overstep the bounds of the gender and age range outlining a core of target audience of a brand, but, nevertheless, are consumers of these goods. The notable prize in the price is reached at the expense of a bigger share of consumers at significantly smaller total amount of placement. According to GPMD, the hybrid model allows to reduce contact cost at least by 14%.
During the placed GPMD campaign of forages for pets video advertizing was based on data of retail networks and was targetted on buyers of these goods. According to survey of the respondents seeing advertizing of brands conducted by GPMD, the affinitivnost of placement made 160 points when targeting on owners of cats and 260 points at placement on owners of dogs. The indicator of an affinitivnost shows a ratio of a share of consumers of a product among the people covered by advertizing concerning a share of such people in the population of Russia. Thus, buyers of cat food in audience of a campaign were on average one and a half times more, than in case of placement without targetings or using social and demographic targeting. In a case with buyers of dog food the indicator was 2.6 times higher.
| ||"This project and the first results – what many advertisers waited long ago for. Our partner, as always, supported as GPMD implementation of the latest technologies for the clients and in many respects provided success, – the director of development of products of the Big Data X5 Retail Group Prusov Dmitry specifies. – When planning advertizing campaigns using data it is necessary to consider a set of parameters. Targeting on social and demographic characteristics does not give the chance to increase efficiency or to reduce the cost of placements, and in fight for the target client advertisers looked for the supplementing targetings long ago. In their market exists much, however data of X5 add information directly on consumption of goods, and, above all can be used in hybrid model and do not require excess placement. For a brand it is an opportunity to optimize budgets and to increase investments into effective placements which will be correctly estimated afterwards both at online, and in offline".|| |
The robot began to select goods for Pyaterochkas and Intersections
On October 23, 2019 it became known that "Pyaterochka" and "Intersection" began to select goods for shops of networks robot. The new algorithm is implemented within digital transformation retailer X5.
As the chief executive officer of X5 Igor Shekhterman told RBC, the company created the decision-making model acting on the basis of advanced analytics using Big Data and machine learning. At the heart of data which are put in the program polls and checks of the buyers consisting in the loyalty program lie. They give understanding of requirements, a problem of an algorithm to define what goods are most demanded and should be on the shelf.
Thanks to new technology about 28 categories (coffee and tea, canned food, vegetables, cheeses, beer and vodka, etc.) in Pyaterochka of which about 50% of turnover are the share were reviewed. A system independently understands that it is necessary for the buyer, and remembers it, and in the future its use will allow to individualize even more the range in outlets.
| ||For example, coming to shop behind pasta, the consumer should make several decisions — shells or spaghetti, 50 rubles or 100 rubles. For an algorithm all these solutions represent "tree", and on the basis of a set of "trees" it works — Igor Shekhterman reported.|| |
He also told in an interview that Russians began to pay less attention to the prices in grocery stores, but treat convenience more exactingly.
According to Shekhterman, in 2012 the importance of the price was 60%, and by October of the 2019th — 53%. The representative of retailer predicted that in four years this indicator will decrease by 50%. At the same time Shekhterman pointed to growth of a factor of convenience which, according to him, by 2023 will grow to 45%.
Implementation of video analytics in supermarkets of Moscow and the Moscow region
Pilot project on equipment by electronic price labels of 7 Pyaterochka shops in Dolgoprudny
On September 2, 2019 the X5 Retail Group company announced start of a pilot project on equipment by electronic price labels of Pyaterochka shops. Modern technologies will allow to exclude the probability of mismatch of the specified prices for goods and to raise NPS ("satisfaction") of buyers.
Only Pyaterochkas located in the city of Dolgoprudny participate in this stage of the pilot. Seven shops are equipped in 58 thousand electronic price labels which cover nearly 100% of the range (except for isolated cases of promo-products located not on shelves of shop).
At the heart of "digital" price labels - the electronic paper operating as the display of the device, with three color ink – white, black and red (for holding promotion actions). Data-refresh is automatic without participation of personnel of shop – the price and information on goods changes in the online mode using a radio channel. The implemented price labels differ in low power consumption and 5 years without replacement of the battery are capable to work. The software of electronic devices is built in the operating architectural IT solution of shop that allows to update completely data in only several minutes.
System implementation of electronic price labels is the perspective direction of digitalization of retail and development of consumer experience and loyalty. Automation of process allows to optimize labor costs and to release several working hours of each employee for interaction with buyers and solutions of other tasks. This technology also leads to expense reduction on printing of paper price labels and to reduction of losses because of incorrect information on them.
X5 already uses more than 65 thousand electronic price labels in three supermarkets "Perekryostok" of a big format located in St. Petersburg, Stary Oskol and Moscow. Until the end of 2019 X5 will consider the possibility of implementation of electronic price labels in 15 Pyaterochka shops and 10 Perekryostok supermarkets. According to the results of the pilot and completion of a business case of the project the decision on deployment of the project on bigger number of shops of X5 networks will be made.
The expanded pilot of "smart shop" technology in Pyaterochka network
On August 7, 2019 X5 Retail Group announced what the retail chain stores Pyaterochka start the expanded pilot of "smart shop" technology which, as expected, will allow to reduce energy consumption in outlets by 4.9%. Read more here.
Opening of laboratory of robotization
In July, 2019 X5 Retail Group opened laboratory of robotization and carried out the first wave of screening of processes. The new working group as a part of department of information technologies of X5, project offices of retail chain stores and department of innovations of X5 will focus on problems of program robotization of routine processes, the company reported.
Tasks of laboratory - to reveal and digitize those "analog" processes where robotization for short term can bring the maximum economic effect, up to their full automation on the following, more large-scale stages of projects.
In 2019 the laboratory will be focused on processes in the field of commerce, finance, HR, IT support, in transport and logistics and also in other business processes, specific to retail. Savings of labor costs in the robotized business processes according to the results of these projects, according to preliminary estimates X5, should make from 20% to 70%.
| ||In 2017-2018 X5 carried out pilots in the field of Robotic Process Automation (RPA). For example, robots participated in financial processes, personnel recruitment, start of actions and special offers. Also we started one of processes, having combined RPA and machine learning technologies, - Alla Antonova, the Acting CIO of X5 told.|| |
As a result of pilots the decision on selection of laboratory in the separate innovation X5 project was made. On the basis of systems analysis of routine processes pipeline-projects for start of robots and screening methodology which will be applied also in the subsequent cycles were created.
| ||Robotization will help to reduce labor costs in tens of business processes and to increase labor productivity. Using robots of division X5 expect to save about 400 thousand man-hours in a year. Economic effect in two years can be more than 150 million rubles, - the chief innovation officer of X5 Ivan Melnik noted.|| |
In 2019 new technologies will be applied, in particular, to robotization and acceleration of entering of data into corporate systems, control of merchandising, processing of standard requests of users in technical support, accounting of sick leave notes, communication with suppliers of goods.
The platform for delivery of sendings from online stores
On April 26, 2019 it became known that X5 Retail Group, the Russian multiformat retail company, developed the digital platform for delivery of sendings from online stores in automatic post offices and points of issue of orders. The solution integrates a part of automatic post offices in Pyaterochka shops, the equipment of the sorting centers and warehouses with the help of a number of information systems, and capacities of information systems, according to in the companies, are expected processing of 1 million departures a day.
| ||In a basis of the platform the solution for accounting of departures from online stores, a system for data exchange with participants of process, a warehouse system for sorting processes, interfaces for partners and users is put. The architecture of basic elements of a system is based on microservices therefore its functionality can be developed quickly.|
Alexey Artyukhov, CIO of "omna X5"
Any Russian and foreign online stores and marketplaces which are engaged mainly in nonfoods can be connected to the platform. To partners from Russia X5 suggests to deliver sendings to distribution centers of the company, from abroad departures will be accepted at customs. Thus X5 will help online retailers to solve a problem of "the last mile" across all territory of presence.
For April 26, 2019 the platform works in the test mode: orders deliver to buyers in the Moscow, Kaluga and Smolensk region in TsTB automatic post offices, joint venture of Sovcombank and "omna X5". Four more partners of X5 from Russia and one of China prepare for connection.
In 2019 access to a system will be open for online stores and marketplaces of any profile, for partners "The portal of the developer" for simplification of the procedure of connection to a system will be created. In addition to issue in automatic post offices and points of issue of orders partners of X5 will be able to offer buyers delivery to cash desks.
Development and deployment of ASUM
On April 18, 2019 it became known that the Open Technologies company developed and implemented the Automated Control System for Capacities (ACSC) for X5 Retail Group. Read more here.
X5 saved 300 million rubles due to implementation of methodology of management of IT capacities
Natalya Kim, the head of department of infrastructure solutions IT of Retail Group X5 company, at a conference of TAdviser "Optimization of the IT infrastructure of 2019" which passed on March 27 told about a biennial implementation project in the company of methodology of management of IT capacities with the scenario of predictive analytics - Capacity management.
The speaker reminded that Retail Group X5 - the largest Russian retailer owning retail chain stores Pyaterochka, Intersection and Roundabout and shortly told about IT department of the company. In it more than 1300 specialists work. IT infrastructure of X5 of Retail Group includes four DPCs, more than 300 systems, 823 physical servers and 1181 databases.
Retail is a continuous transformation of business as customer needs change constantly, Natalya Kim emphasized. The index of loyalty of the buyer should remain at the level. A business cornerstone – increase in efficiency and cost reduction, and IT infrastructure – its platform. The lecturer listed the problems existing in the company before capacity management project implementation:
- real utilization of capacities is unknown;
- control of loading of the purchased capacities was exercised in a random way;
- the forecast of growth of capacities was performed manually on the basis of trends.
Two years ago, after studying world experience in the field of Capacity management, in the company implementation of capacity management processes began and it turned out that it is the best method of problem solving, Natalya Kim noted. The sequence of steps was following:
- process design, formation of regulations;
- development of methodology of modeling – how to consider how many "iron" will be required next year;
- implementation of monitoring systems of virtual, physical infrastructures and also monitoring of infrastructure of shopping facilities;
- resource optimization - redistribution, optimization of a storage system;
- automation for virtual environments - system implementation of project analytics, setup, integration with a management system for configurations (CMDB), automatic calculation of capacities.
The project team included databases specialists, to DWH, servers and OS. Real permanent participants there were only five people, but there were also external contractors, one of whom helped to write regulations. At the same time the speaker emphasized that the greatest value in the project was introduced by an internal command.
Initially the methodology was implemented in the "manual" mode. Technical X5 group together with the partner developed a mathematical model of data which compares data on load of the equipment in the past to development plans for divisions of X5. Taking into account a set of additional parameters, such as seasonality, number of shops, checks, model can predict date to which the reserve of IT capacities of each specific IT system will end. On the basis of these calculations technical experts of X5 make the plan of IT capacities for the year ahead with flexible hours of equipment procurement.
| ||After implementation we saw – some systems are overloaded, others are underloaded then they could redistribute and optimize loading, - Natalya Kim summed up the result of the project. – This year we want to see after what releases there are splashes.|| |
Now the capacity management process in the company is supported by the whole complex of IT solutions: the system of predictive analytics, the single database about an IT infrastructure status (Configuration Management Data Base, CMDB) and several solutions for monitoring of IT infrastructure.
In 2018 - 2019 as a result of implementation of measures for automation of methodology and optimization of IT infrastructure the company cut down equipment expenses for 300 million rubles, the speaker noted.
Robotization of intra day reconciliation of payments
On March 27, 2019 X5 Retail Group reported that they together with Alfa-Bank started robotic intra day reconciliation of payments. Robotic process allows to define quickly all possible errors and discrepancies in details and payment amounts.
Daily on the party of Alfa-Bank the program robot creates reports on all payments of X5 Retail Group companies which came to a banking system and sends them directly to the ERP system of the client. Further on the party of X5 reports are automatically verified with the documents sent and signed with a system by four parameters.
| ||The project of robotization of reconciliation of payments with X5 Retail Group — a precedent of robotization of the processes, sign for the industry, going beyond perimeter of bank — the director of transaction business of Alfa-Bank Pavel Ryazanov said. — Alfa-Bank offers the service allowing to optimize treasurer functions of customer organization.|| |
| ||Considering that the number of payments of X5 of Retail Group registered through all partner banks exceeds 30 thousand a day and continues to grow, the similar mechanism of additional check and protection is extremely important — the head of department of treasury of X5 of Retail Group Natalya Vlasova noted. — Intra day reconciliation allows to confirm quickly the fact of receiving the payments sent from group, bank for their subsequent execution and also to react quickly in case of contingencies.|| |
For March, 2019 robotic already about 30 processes. Due to performance improvement and decrease in number of errors the bank saves 85 million rubles a year.
"Intersection" and Roundabout will test personnel training using VR technology in 100 supermarkets
The pilot will pass in 100 Perekrestok supermarkets and three hypermarkets "Karusel" in Moscow and the Moscow region, St. Petersburg, Nizhny Novgorod, Voronezh, Sochi, Samara, Yekaterinburg, Perm and other cities. According to the results of three months the decision on possible scaling of technology will be made.
Selling assistants who work with six types of goods will study at VR rates: meat, fish, cheeses, cookery, sausages, dairy products. During the individual occupations using the Oculus Go VR glasses the employee undergoes simulation of communication with the buyer behind a counter.
Each educational module consists of three stages. On the first it is necessary to repeat precisely a script of communication with the buyer, using hints of a system. On the second – to reproduce the same dialog, using a key word. On the third – to help the buyer to select goods using the received skills and without hints of a system.
Thus at personnel steady skills of effective communication with the buyer and good knowledge of goods form.
Development of digital services for pensioners together with RPF
On December 11, 2018 X5 Retail Group reported that they together with the Pension Fund of the Russian Federation began cooperation in the development areas and implementations of technology which will allow pensioners and persons of a pre-retirement age to receive discounts in shops of retail chain stores Pyaterochka, Intersection and Roundabout.
In 2019 based on mobile application of RPF using information systems X5 start of a pilot project – the digital social card containing information on the status of the citizen and the social privileges put to it in the form of the unique QR code is planned. Reading of the code from the screen of the smartphone will allow to define the right of the pensioner or person of a pre-retirement age to the privileges, discounts and other forms of social support provided by the state and the commercial organizations.
X5 as socially responsible business, provides several years discounts to buyers of advanced age. In Pyaterochka in the first half of day the discount of 5%, and on Mondays – 10% is provided to pensioners. Perekryostok supermarkets offer a discount of 10% from 9.00 till 1 p.m. on weekdays, and Karusel hypermarkets provide a discount of 5% from the moment of opening of shop till 1 p.m. Since the beginning of 2018 buyers of advanced age made purchases in X5 shops more than 406 million times. Total amount of a discount for pensioners in X5 shops was 9.9 billion rubles.
X5 will apply machine learning in marketing
The X5 Retail Group company, the multiformat retail company of Russia, completed on November 19, 2018 a pilot project on Reinforcement Learning (RL) technology — one of approaches to machine learning.
During the project of analytics and IT specialists of retail chain stores Pyaterochka and Glowbyte Consulting companies developed the solution for customization of actions and special offers using RL. A system automatically selects the offers, the most relevant for buyers, on the basis of the depersonalized data on the actions held.
Two million buyers of Pyaterochka who participate in the loyalty program of retail chain stores became audience of the pilot. All clients were separated into 27 groups depending on the history of their purchases. A system analyzed as target groups of clients respond to an action as sales volume changes and the special offer is how profitable. Then this offer was received by wider audience.
As a result of the pilot the project team defined the most profitable mechanics of actions and communications of Pyaterochka. The marginality of separate offers was twice higher than an average value before automation of this function.
| ||For us digital interaction with the buyer is extremely important as we want not just to answer his requests, but also to advance them. Therefore personalisation of approach to each client among the priority directions of development of retail chain stores, and Reinforcement learning technology — one of important tools for implementation of this task. We highly appreciate results of a pilot project in the field of machine learning and we are not going to stop on it. In the nearest future buyers of Pyaterochka are waited still by a set of unique offers which will be based on deep understanding of their requirements and interests — Aleksandra Kalyukina, the director of the department of marketing of retail chain stores Pyaterochka said.|| |
X5 Retail Group increases army of experts in Big Data and Data Science
In 2018 X5 Retail Group began to develop actively the direction of Big Data and Data Science, and less than in a year gathered for this purpose a team more than 100 people. Andrey Molchansky, the director of the department of development and maintenance of products of the Big Data X5 Retail Group told about it in October, 2018.
Within the division of Big Data created in the fall of 2017 the Data Science command where as of October more than 20 experts in analytical data (data scientists) work was also selected. They are divided into the product directions which the company expects to improve.
Around the Data Science group also the mass of other specialists works: business analysts, delivery of managers, architects, developers and other. They are selected in separate product commands which are is decentralized in directorate according to the Big Data X5 Retail Group. The sense of such separation is in that each person was directed to business improvement, Molchansky says. And the main advantage of work of a command should be expressed in a financial equivalent.
At the same time in commands the culture of Agile is implemented. It allowed to provide terms from emergence of the idea before creation of a prototype in 3 weeks, the representative of the company claims.
Data Science is already used in the company, for example, for improvement of the loyalty program and creation of targeted offers for buyers. By the fall the company carried out two pilot projects and testing in this area, and in target shops at the expense of it lifted traffic of buyers for 4%, Molchansky tells.
He added that the division of Big Data and Data Science – new in the company, to them is less than a year therefore some "wow - patterns" to report on identification so far early. Data still continue to be collected. At the same time, further development of the direction has wide perspectives. Data Science teaches the retailer to knowledge of the client, of shop and goods, Andrey Molchansky says. The more knowledge of it the company gains, the it can derive more benefit.
Knowledge of goods can be used first of all for optimization of the range. For example, if on the shelf there is too much some type of goods, the buyer, having staid some time at the shelf and having found it difficult to make a choice, can so it and not purchase, the representative of X5 Retail Group explains. Data Science allows to understand to the retailer what quantity of brands to expose on shelves in different shops to provide their maximum sales.
Also Data Science can be used for dynamic pricing, allowing to set the optimal price on goods taking into account their remaining period to the validity, Molchansky explains. It is more profitable to sell goods at which the expiration date comes to an end at a discount that it, eventually, was not gone.
Data Science technologies are used also for demand forecasting. On the basis of purchases of a large number of clients, the analysis of their checks it is possible to predict rather precisely during what period how many goods to order. This system can be delivered on training, having completely automated the system of the order.
At the level of Data Science shops it can be used, for example, for geoanalytics to receive recommendations about opening of new shops where they are most necessary.
The platforms of Big Data and machine learning existing in X5 Retail Group are founded on the Open source software. For example, software of Hadoop and Hortonworks is used. The systems of the operational analytics necessary for company management and shops, at the same time work at SAP HANA.
Opening of shop laboratory for fast technical testing
On October 10, 2018 the X5 Retail Group company announced opening of shop laboratory for fast technical testing and R&D modern technologies.
| ||Quick and effective search technical solutions — a task for which we created shop laboratory. It is equipped by all necessary that employees could "lay out" quickly innovations on a regiment in a trading floor. Within the operating shop we not only check compatibility of technology with X5 IT infrastructure, but also we estimate impressions of clients.|
Fabricio Granja, CIO of X5 Retail Group
For October, 2018 the staff of laboratory tests in a trading floor of technology of electronic price labels, video analytics, smart shelves, digital dashboards and the scenario of independent scanning and payment of purchases.
After testing in shop laboratory of technology will pilot in Pyaterochka, Perekrestok and Karusel shops. At this stage specialists of X5 will estimate their cost efficiency, for example, influence on sales increase or on cost reduction. Depending on results decisions on replication on all shops as a part of retail chain stores will be made.
| ||In X5 at a stage of assessment and preliminary study there are more than 500 startups. The majority of technologies requires check on working capacity and compatibility with X5 IT landscape. On the one hand, in shop laboratory all ideas can be checked quickly now, with another – we will be able to increase number of experiments and "to accelerate" a funnel of innovations in general.|
Vadim Kapustin, director of strategy X5 of Retail Group
The project on the continuity of IT services
On September 19, 2018 it became known that X5 Retail Group began the project on the continuity of IT services. This concept assumes permanent availability of the main information systems in retail chain stores and a back office, fault tolerance of IT infrastructure, the minimum idle times of IT systems, readiness for fast recovery in case of emergencies.
In a project deliverable, executed together with Jet Infosystems, X5 Retail Group accepted the road map within which the company implements the strategy of development for continuity of IT services. At the same time plans of growth of X5 Retail Group and the forecast of how requirement of the company for IT services will increase were considered.
Options "plan of replenishment of goods" and "product availability check"
On September 18, 2018 the X5 Retail Group company reported that it added the next tools on the Clickserviceretail.ru portal allowing suppliers to predict more precisely production and deliveries.
According to the company, it occurred thanks to updating of an internal system of planning of X5 and its integration into the solution Click Service Retail which already provides suppliers with the online services including helping to predict production and deliveries for 60 days ahead.
As it was reported, two options are available to users of Clickserviceretail.ru: plan of replenishment of goods and check of product availability. Thus, to plan delivery to Roundabout and Intersection the supplier can on the basis of the draft copy of the order. It is created automatically based on the plan of the replenishment action made in an internal system of planning of X5. Also suppliers of Intersection can check for Clickserviceretail.ru in real time availability and a remaining balance of their goods in specific shop.
Since June, 2018 functions tested six suppliers of X5. For September, 2018 this analytics is available to 64 companies. In the long term all partners of retail chain stores of X5 will be able to predict deliveries online, and data on turnover of goods will be updated once a day.
"Help out testing - cash desks" in Pyaterochka network
X5 Retail Group announced on June 26, 2018 that the retail chain stores Pyaterochka started testing "Help out - cash desks" — devices for independent payment of goods. Such cash desks provide voice maintenance of purchase which is intended to help pensioners to understand the principle of operation of the equipment quicker. For foreign buyers in the interface of cash desk there are also English and Chinese languages.
The Help Out — Cash Desks interface is developed taking into account consumer experience and in stylistics of retail chain stores that, according to the company, does communication of users with this device simple and comfortable.
The first devices for independent payment of purchases are already installed in two shops in Moscow. Until the end of 2018 in 10 supermarkets Pyaterochka in Moscow is planned creation of special zones for independent payment of goods, in each of which will install up to 6 such devices. Help buyers to pay purchases on "Help out - cash desks" there will be an employee of shop. It will check documents upon purchase of alcohol and cigarettes.
On expectations of X5 Retail Group, the Help Out — Cash Desks installation in shops can help to increase the number of constantly working cash desks in shops, to reduce queues, especially in rush hours and to organize more active work of employees in trading floors. According to preliminary forecasts of the company, after testing using cash desks of self-service will pay about 50% of purchases.
"Help out - the cash desk" accepts for payment cash, bank cards of all payment systems, points of different programs of loyalty and coupons. The cash desk also allows to accumulate and spend bonus points of the loyalty program "Help out the card".
Testing of the project, according to plans of X5, will come to the end in December, 2018, by that moment about 50 cash desks of self-service will appear in 10 Pyaterochka shops in Moscow. Within the pilot experts of X5 will estimate working capacity and fault tolerance of systems, will define effective mechanics of informing on marketing actions, will finally configure the voice interface and will define what payment methods will be the most demanded among users "Help out - cash desks".
Robotization in X5 Retail Group
X5 Retail Group, which part retail networks "Pyaterochka" and "Intersection" are, carried out robotization of the service center. During robotization six robots for work with documents were started. Now these works are performed in total by seven processes of the service center which were executed by employees people using basic information systems of the company earlier.
As of the end of 2017 service center X5 which is in Nizhny Novgorod worked in 63 regions and contained up to 1 thousand employees. Annual document flow of the center, including EDI, exceeds 100 million documents. The center services the state of X5 consisting of 250 thousand workers and also 5 thousand suppliers.
Let's remind, X5 Retail Group owns Pyaterochka, Perekrestok and Karusel retail networks. As of March, 2018 the group owned 12.7 thousand shops. Net retail proceeds at the end of 2017 were 1.29 billion rubles, and according to the results of the first quarter 2018 — 350 billion rubles.
Where put people
As specified in X5 at the request of CNews, robotization did not lead to reduction of staff — rather, it was executed to prevent set of additional workers. Those employees who worked instead of robots earlier were reoriented on the new tasks, more difficult, managerial and creative, the company assures. It is about the insignificant number of employees who were engaged in manual processing of the same accounting documents, Yulia Burenkova, the chief accountant of X5 Retail Group explained.
At the same time the company is informed that by 2025 global robotization will lead to reducing costs of an office personnel for 40-70% and will exempt 120 million specialists from duties.
IT Competence center in Innopolis
On May 24, 2018 X5 Retail Group announced the beginning of cooperation with the Republic of Tatarstan in the innovation and technology spheres. The relevant agreement was signed by the minister of informatization and communication of the Republic of Tatarstan Roman Shaykhutdinov and the chief financial executive of X5 Retail Group Svetlana Demyashkevich within the St. Petersburg International Economic Forum.
The parties agreed to develop the innovation and social and economic infrastructure of the Republic of Tatarstan in the field of retail and also to work on gain of import substitution and development of the Russian information technologies.
The agreement provides creation in the territory of the Innopolis special economic zone of IT Competence center of X5 Retail Group. For this X5 Retail Group the status of the partner of the Innopolis SEZ will be given. In competence center the innovation products will be developed for automation and robotization of processes in retail trade, testing of the modern technologies, products and services created in the Innopolis special economic zone.
| ||"Creation of IT Competence center based on the University will strengthen Innopolis and will enrich with new knowledge our internal IT command. Experience of colleagues from the centers of development of robotics, modeling and the analysis of Big Data and also the center of geographic information systems of the University Innopolis will allow us to increase examination and to provide higher quality of the implemented solutions. Certainly, the next step behind creation of specialized product commands as in Innopolis there are all conditions for development of innovations and new technologies", – added Fabricio Granja, the CIO of X5 Retail Group.|| |
Also under the terms of the agreement of X5 Retail Group together with the University research projects are going to carry out Innopolis and to train IT specialists, to organize the IT Olympic Games for school students, to create educational programs for students and to employ the best IT specialists in X5.
| ||"The Innopolis university lets out IT specialists for work in the real sector of economy and implements projects on a joint of education, science and business together with hundred thirty partners. Cooperation with X5 Retail Group, the largest player of the market of retail, will allow us to understand more deeply tasks of the leading Russian companies, to develop effective digital solutions, to promote implementation of the latest technologies in daily processes and to prepare the personnel which is most demanded by the industry" — Semenikhin Kirill, the director of the University noted Innopolis.|| |
About mobile development in X5
X5 develops mobile applications for internal business processes, including in the field of logistics and interaction of divisions. Justified focus: more than 250,000 employees are employed in the company, and their number will increase – opening on average in 8 shops a day, X5 Retail Group grows on 20-30% a year (today the number of shops already exceeded 12,000).
However not smaller value buy mobile applications for clients of the retailer, including in the conditions of digitalization they turn one of key communication channels with buyers.
As a result mobile applications undertake functionality of interaction with loyal clients of retail chain stores of X5, offering the last most personalized dialog format, including due to providing unique offers to each user on the basis of his consumer experience.
Of course, the speech does not go only about support of communications – mobile applications are a basic component of programs of loyalty of X5 Retail Group. The first started for Perekrestok network more than 10 years ago, having received mobile application in 2016. And since 2017 clients of Pyaterochka and Karusel networks use them.
Loyalty applications unlike plastic cards expanded possibilities of the user. For example, with their help it is possible to keep the list of purchases, to receive personal offers, discounts and to trace a status of the bonus account.
Such approach became a serious call for X5 IT-systems: for tens of millions of clients hundreds of transactions per second, with processing of thousands of promo-rules are carried out, turning purchase into difficult multistage process.
Win against queues
Start of an ecosystem of mobile applications of loyalty turned back for X5 an unexpected call, namely increase in holding time at the checkout at emergence of emergency situations in IT systems. Delays turned out to be consequence of the existing IT architecture within which the single system of processing of loyalty works, so, the client's request in mobile application is processed by the same system which works at the checkout.
In X5 Retail Group coped with a situation – first of all, in processing of loyalty separated logic and resources between work of cash desks and mobile application. push and SMS mailings which provoked users to open applications also gave the raised load of processing. Today in the company structure time of sending notifications to clients more precisely. Also in an IT circuit of the company the system of operational communications, including on the basis of messengers earned that it also allows to react to new calls as fast as possible.
And here for cash desks and for mobile application refused creation of independent circuits of processing of loyalty here – because of too high cost. Quickly modern IT experts help to react to requirements of the IT-system - it is about the microservice architecture allowing to react quickly to peak loads on processing of loyalty, giving the chance to accelerate work of mobile applications and to decrease in their influence on cash desks.
In the company practicians of DevOps also began to implement, reprofiling commands at the expense of people from different departments and departments, staking on fast IT development. In total in a month, specify in the company, the IT department on average represents more than 200 changes, connected anyway with portals or mobile applications of X5.
As a result in work of mobile applications of loyalty and the more so about caused by them expectations at the checkout clients of X5 Retail Group can forget about delays safely. Cash desks will continue to service buyers even at the emergency failure in work of processing of loyalty and forced reset of the IT-system today (process at the same time will take no more than 15 minutes). And on solution of the problem of peak loads on processing of loyalty no more than 1-2 minutes are required.
To all clients of X5 Retail Group the flexible IT architecture of the company allows to shop in shops in the quiet mode, without dead time and with the maximum convenience (all in 2017 in X5 shops more than 3.8 billion purchases were made, i.e. at once is one quarter more, than the previous year). And an opportunity to receive personal offers and discounts on a permanent basis, provided for users of mobile applications, leads to growth of audience. So, at the end of 2017 more than 2 million buyers used client mobile applications of X5 Retail Group already.
X5 will test three types of the innovation goods marking for quality control
X5 Retail Group, one of the leading multiformat retail companies, will test three unique technologies with drawing on products of the innovation marking blocking sale of goods expired and fixing violations of temperature at storage and transportation at once.
In particular, X5 together with several suppliers began a pilot project within which sells products of categories "juice" and "ultra-juice" with the barcodes of the EAN 13+5 format containing information on a goods expiration date. It allows not to allow sale of overdue products which at the checkout is identified as defects. At the moment the technology is tested in 200 Pyaterochka shops in Moscow and the Moscow region.
In the nearest future X5 will begin piloting of new technology of rejection of stale goods using thermoactive tags. Tags chameleons will help buyers and the staff of shop to set whether temperature condition during the transporting and storage of products was observed. This technology is especially relevant for quality control of frozen goods in case of which defrosting the tag will change color and will not return initial at repeated freezing any more. This technology is developed by students of the Tomsk State University (TSU) which since 2016 is a partner of X5. Testing of thermoactive tags became a new stage of interaction of the retailer and higher education institution in the field of development of technologies.
Thanks to one more pilot project of X5 buyers also using tags chameleons will be able to control actually remaining period of the validity of goods. At the wrong storage the expiration date of a product can decrease and to trace a current status of goods, some suppliers of X5 will apply special tags which under different temperature conditions change the color with a different speed on the products. So, for example, at a temperature of +4 °C the tag chameleon completely will darken in 6 days, and at a temperature of +6 °C – in 4.5 days. Using such tags buyers will be able to obtain reliable information about quality and security of products, and the staff of retailer – to update goods in trading floors more quickly and to eliminate violations of storage conditions of products on all supply chain.
X5 aims to offer buyers only safe products and to control goods quality on all chain of their movement – from the producer to cash desk of retail store. End-to-end quality control of goods using technologies is impossible without participation of suppliers and producers therefore X5 welcomes and considers the different technology initiatives of producers of food aimed at gain and automation of quality control.
Pyaterochka and Intersection created special directorate for the analysis of Big Data
In Retail Group X5 company there was a directorate of "Big Data" — separate division which will be engaged in the analysis of Big Data. Anton Mironenkov who was earlier holding in the company a position of the director of strategy at which he will be replaced from now on by Sergey Goncharov was appointed the head of department. Mironenkov announced creation of new directorate during the performance at the forum Food Business Russia, Interfax tells .
According to Mironenkov, Big Data are a strategic direction on which the future of retail depends. Retailers should as soon as possible learn to monetize Big Data and to use them for optimization of workflows and increase in level of convenience of clients. With respect thereto the analysis of "Big Data" which the retailer daily accumulates in considerable volumes was selected in the separate direction.
As the representative X5 Retail Group explained at the request of CNews, the company considers management of Big Data "as the instrument of increase in sales and profitability of core business due to better knowledge of clients and also as a source of new income due to monetization of data".
- Mobile technologies will get into all spheres of life of people more and stronger. Considering it, we have big plans for development of functionality of mobile application. At the same time, for us the shop remains "client interface number one" still. Therefore our task to make convenient and pleasant user experience in which we would attract our conservative audience to offline - to purchases using mobile application.
- One of the main trends is use of Big Data for improvement of the value proposition for clients based on understanding of their real requirement, i.e. due to better knowledge of clients, their features, preferences, tastes and habits. In process of further market development of product retail and gain of the competition, the quality of traditional processes will depend even more on efficiency of use of information. The technologies of Big Data already demanded in many industries show nearly the best result in the field of trade in goods of fast consumption (FMCG).
- Personalisation of offers will consist not only in development of loyalty and special marketing offers on the basis of requirements, but also is more global – in transition to opening of outlets on "role model": it is deeper individualization of all range and separate goods, services and services for each buyer taking into account their consumer missions.
- Cooperation and partnership between offline and online players — one of important trends today and in the future, and offline - retailers will actively participate in it.
2011: The plan together with A. Chubais to start Shop of the future
On April 21, 2011 it became known that the ambitious project of Anatoly Chubais on construction in Russia of retail network, equipped with RFID tags, faced an unexpected problem. The project left the planned supplier of the technological solution - Sitronics. Nevertheless, Rusnano and X5 holding promise to implement the project.
The president of the company Sergey Aslanyan told about an exit of Sitronics from the Shop of the Future project. According to him, such solution has a variety of reasons, including one of partners in project implementation did not arrange the company. "This partner — not Rusnano, - Aslanyan noted. - We suggested to replace it, but Rusnano refused".
| ||"The most expensive phase of stay of the buyer on time in shop - calculation at the checkout - will pass actually instantly because each goods will be marked by a nano-tag, and when passing the cart by the reader device the price will be automatically defined", - the chairman of the supervisory board of Alfa Group (the major shareholder of X5) Mikhail Friedman promised. The first pilot "shop of the future" should be created until the end of 2012, according to Chubais's forecasts, development of network of such shops could create in Russia demand for RFID tags of 50 billion pieces a year.|| |
The source familiar with project parts explained CNews that Sitronics considered for itself risks of participation in this project too high. "X5 required from Sitronics to develop the technological solution, to provide a guarantee of low prices of RFID tags and, besides, X5 have no necessary infrastructure, - the interlocutor of CNews says. - And it in the absence of guaranteed demand that is caused by a number of technology problems, in particular, is not possible to read out information with RFID through aluminum jars, tanks with liquid, etc."
Rusnano, in turn, assures that the project develops according to the plan and all partners involved in it work on the approved diagram. "As this project is rather unique, naturally, that the parties in the course of negotiations try to observe balance of risks and interests, - told in the press service of state corporation. - Recently to us from shareholders of Sitronics, probably, in connection with its reorganization, the offer on change of the technology partner came from Sitronics to Mikron (belonging to Sitronics the microelectronic plant - a comment of CNews), and this offer was accepted us".
The representative of X5 holding Svetlana Vitkovskaya does not comment on an issue of relationship about Sitronics, but also promises that the project will be executed in terms and "all necessary measures are for this purpose undertaken". Discussion of the Shop of the Future project really was at the level of Micron, the vice president of Sitronics Irina Lanina says, but any specific arrangements it was not accepted.
IT projects in X5 Retail Group
IT projects in Perekrestok network
Information technologies in the Intersection network
Main article: Information technologies in the Intersection network
IT projects in Pyaterochka
|Without involvement of the consultant or not data||Projects based on technologies of Internet of Things (IoT), Complex projects of creation of the engineering systems||Internet of Things of Internet of Things (IoT)||2019|
IT projects in Spar
- ↑ The robot began to select goods for Pyaterochkas and Intersections
- ↑ of X5 shops developed the digital platform for delivery of sendings from online stores
- ↑ Owners of Pyaterochka and Intersection replaced a part of accounting with robots
- ↑ Pyaterochka and Intersection created special directorate for the analysis of Big Data
- ↑ Chubais will build shop of the future without Sitronics