Big on big data: Chalhoub Group’s strategy to stay agile, innovative, responsible

The strategic use of big data and AI (artificial intelligence) not only improves decision making and collaboration but also significantly boosts productivity, positioning businesses for sustained success in an ever-evolving market, shared Joseph Aoun, Director of Data Products at Chalhoub Group.

Here’s our exclusive Q&A with Aoun.

Let’s start with your thoughts on three areas where big data, analytics and tools such as AI and ML (machine learning) have made retail businesses more agile and future proofed.

In today’s fast-paced business environment, timely and accurate decision-making is paramount. The implementation of a single source of truth and automation enables leaders to access standardised, trustworthy data in near real-time, providing the insights necessary for informed decisions. And big data platforms break down silos by integrating information from diverse systems and functions, facilitating cross-functional collaboration. This holistic view of business performance empowers teams to solve problems and generate innovative ideas collectively.

Moreover, advanced analytics, including AI and ML, harness big data to unlock forward-looking insights. These predictive and prescriptive capabilities offer glimpses into potential future scenarios, allowing businesses to better prepare and anticipate changes. While we can’t predict the future with absolute certainty, these tools provide invaluable foresight.

The recent surge in Generative AI (GenAI) further enhances organisational agility. By automating repetitive tasks and augmenting the existing workforce, GenAI frees up valuable time for teams to focus on high-value activities. It enhances decision-making processes and accelerates content creation, enabling businesses to achieve more with their current resources.

Please share one data-driven investment that you’ve planned for 2025.

AI has become a significant priority for Chalhoub Group, especially following the widespread adoption of tools like ChatGPT. Recognising its strategic importance, we are committed to developing an AI framework and strategy this year and next. Our goal is to harness AI efficiently and focused on value, avoiding mere buzzwords while upholding our core values of ethics and respect. This initiative will likely involve further investments in our data platform, enhancing its capabilities as well as that of our people. We will ensure that these enhancements comply with our AI, privacy and security policies. Our approach aims to integrate AI in a manner that maximises benefits while maintaining our ethical standards. We will be setting up a cross functional taskforce starting by identifying and prioritising use cases all the way to tech, legal, learning and development (L&D) etc.

While every retail organisation worth their salt is aware of the importance of being data-driven, what are some key challenges being faced by organisations such as Chalhoub Group when it comes to not only leveraging data but using data-driven insights to make actionable changes?

There are several challenges we are facing in our journey to become a data driven Group. The first one is the mindset change. Data isn’t about technology it’s a mindset. Therefore, transforming and changing how people think and work is always the most difficult part. Resistance to change can impede adoption, necessitating clear communication, training and leadership support. You always find users attached to their old ways and the legacy tools.

Second is data quality and trust. We underestimate how precious data is as a resource. I like to say data is a reflection of business operations. If we don’t take care of our data in the source systems at the moment of capture, it will be very challenging to make good use of it and unlock value. Ensuring data accuracy, consistency and reliability fosters trust among users.

Finally, a potential results of the above, is adoption of new tools and new processes at scale. Ensuring they are embraced across the organisation requires ongoing support, training and feedback loops to refine data initiatives continuously. We work with L&D to define and implement data literacy tracks for different parts of the business to empower employees to analyse data effectively, translating insights into business decisions

Becoming data driven, is not a short-term tactical endeavour, it is a marathon that will extend over time.

Governance is one of the most pivotal areas of discussion where data is concerned? What are some measures that you undertake to ensure data remains secure?

At a Group level, we have established a privacy and security policy, ensuring our big data platform not only aligns with our internal standards but also complies with the regulations of the countries where we operate. Effective data governance is crucial for the adoption and return on investment (ROI) of our data initiatives. To facilitate this, we have implemented a lightweight framework designed to preserve agility without compromising security. We have defined the various roles and responsibilities within our organisation, from data owners and stewards to analysts. This structure ensures accountability and clarity in data management. Additionally, we have instituted rigorous processes and controls to guarantee that data is accessed appropriately, with the necessary approvals. Key performance indicators are established and developed according to the standards set by data owners and are thoroughly vetted and approved. Our approach to data governance not only safeguards our data but also empowers our teams to leverage data effectively, driving informed decision-making and business success.

Finally, is there a pressing data-related issue / security threat that keeps you up at night?

Data breaches and leaks involving sensitive information, such as customer data or financial details, present significant risks to businesses, especially those with a family-owned, privately held structure. The unauthorised release of such information can damage a company’s reputation and erode trust with stakeholders. It is imperative that we maintain stringent data protection measures to safeguard against these risks. At Chalhoub Group our commitment to data security is not just about compliance; it’s about preserving the integrity and trustworthiness that our business has built over the years.

On a broader and more philosophical note, the trajectory of AI development poses intriguing questions about the future. As we continue to advance AI technologies, we must consider the ethical implications and potential risks associated with creating systems of unprecedented power. While the idea of an AI becoming a threat to humanity may seem like the plot of a science fiction movie, recent technological breakthroughs suggest that these concerns warrant serious discussion.

While we embrace the benefits of AI and big data, we must remain vigilant about data security and mindful of the ethical considerations in AI development. Balancing innovation with responsibility will ensure sustainable growth and the preservation of our core values.

Join us at the Middle East Retail Forum 2024 to know more about Chalhoub Group’s innovation roadmap.