Digital retail transformation- In store



Brick-and-mortar retailers have a significant opportunity to leverage digital technologies to transform the store. Digital upgrades will help keep up with shoppers' demands, whether it be "scan and go," personalization or buy online, pick up in-store (BOPIS). Beacons, connected IoT devices, and smart digital hubs/stations allow for better customer engagement and rich in-store experiences. The technologies offer a wide array of opportunities: from indoor navigation, contextual promotions distribution, and customer self-service. By adopting innovative payment methods, retail brands move fast toward the digital future.

From Apple Pay to Tesco payments, consumers will soon be switching from cashless to cardless, so businesses should be able to keep up. Let's take a look at what retailers should evaluate when working towards in-store digital transformation, and how they can create real value for their customers.



With the help of augmented reality, Sephora allows the customers to "try on" their products. Namely, the company has built a virtual "Visual Artist" tool. After uploading your photo through Facebook Messenger, this smart chatbot will help you visualize different makeup styles and products, provide personalized suggestions, and offer some items you might want to purchase.

Another similar tool acts as an augmented reality mirror that simulates makeup on the user's face in real-time.

 Nike's new flagship store in New York, dubbed "House of Innovation 000," embodies the store of the future, with an app that creates digitally connected journeys for consumers to utilize mobile checkout, request try-on items throughout the store, or instantly shop in-store displays.

 Think of furnishing a home and IKEA will likely come to mind. IKEA has heightened user experience with the help of a mobile application utilizing augmented reality (AR). IKEA Place, available on Android and iOS, is basically an app that allows you to fit pieces of furniture in your house, using AR via a smartphone's camera. However, utilization of augmented reality is not the only thing that will help IKEA reach its clients. It has launched an idea hub called Space10, a research and design lab aimed at creating smart products and solutions.

 Starbucks has one of the most successful digital transformation cases in food-and-drinks retail. This coffee shop chain has launched its "internal venture capital-style incubator for digital technology," Starbucks Digital Ventures, back in 2009. One of its first products, its mobile application, became an integral part of the Starbucks digital ecosystem.


Another major innovation introduced by Starbucks as part of the company's digitization is its Mobile Order & Pay (MOP) feature. This means that customers can order their drinks in advance, pay directly within the app, and pick up their orders at the store. The benefits of such a system are obvious: It eliminates waiting, provides a convenient and secure payment option, and increases the store's through-put by reallocating labor from the register.

As a result, 6 million orders and transactions are served by the MOP every month.

Grocers such as Kroger have been quick to react with the launch of its "Scan, Bag, Go" technology last year, and many others have launched new technologies to accelerate the checkout experience. While eCommerce and mCommerce are considered the future, Amazon has implemented an advanced option for shopping in traditional brick-and-mortar stores. Amazon GO has thirteen stores in New York, Seattle, Chicago, and San Francisco.

What is special about those stores is that there is no need to pay for the purchased items in the store. The new store concept is part of the Just Walk Out Experience, because – with the app – that's all you do to purchase something. After downloading Amazon GO app, customers connect their Amazon accounts. Using computer vision, sensor fusion, and deep learning algorithms (a subset of machine learning), in-store devices indicate which items were purchased by a customer.

After customers leave the Amazon GO store, the Amazon account connected with the checked application is charged for the purchase. You can watch the Amazon GO introduction video to see how it works. But the industry is famously slow to adopt new technologies, and many retailers wind up sticking to legacy operations for fear of upending painfully tight profit margins.

According to a recent study by Oxford Economics, only 3 percent of retailers have completed company-wide digital transformation projects. That's an easy statistic to avoid in today's burgeoning technology landscape.

 According to Hitachi consulting survey, the largest barriers to improving digital maturity are a lack of internal strategy and a lack of knowledge and understanding of digital transformation, both at 29% of responses. At the same time, management buy-in was cited by a surprising 19% as an inhibiting factor, suggesting that despite the clear and present need to invest in digital, almost one in five firms are led by people reluctant to believe the hype.

Further to that, concerns over these barriers led a quarter of respondents to state they were "scared" to digitally transform, citing a lack of understanding around how best to begin transformational projects, coupled with a heightened fear of risk. If retailers are to survive this troubled period, then getting over these fears may well prove to be essential over the coming months.

 Credits:
https://www.zdnet.com/article/10-vendors-enabling-digital-transformation-in-retail/ https://www.mytotalretail.com/article/the-journey-towards-in-store-digital-transformation/ https://insights.samsung.com/2019/02/04/the-emergency-of-digital-transformation-for-brick-and-mortar-retail/ https://www.cio.com/article/3394047/best-practices-for-digital-transformation-in-retail.html https://www.altexsoft.com/blog/business/digital-transformation-stories-how-starbucks-ikea-walmart-and-sephora-revolutionize-retail-industry/ https://www.forbes.com/sites/nikkibaird/2018/03/13/what-digital-transformation-actually-means-for-retail/#6cd98c097038 https://www.i-scoop.eu/digital-transformation/retail-industry-digital-mobile-shopping-transformation/ https://www.happiestminds.com/whitepapers/digital-transformation-in-retail.pdf https://www.consultancy.uk/news/19647/digital-transformation-is-essential-for-future-of-british-retailers https://www.cio.com/article/3394047/best-practices-for-digital-transformation-in-retail.html https://mi9retail.com/20-facts-you-need-to-know-now-about-digital-transformation-and-innovation-in-retail/ https://nrf.com/blog/digital-meets-physical-retail-experience-future

Artificial intelligence in Retail- Trends

The competition in retail is fierce and great products alone are no longer enough. Whether shopping online or in person, customers want seamless, personalized shopping experiences. Artificial intelligence and machine learning enable retailers to boost their bottom lines, in part by showing when it’s not necessary to offer a discount.

At the same time, these systems give shoppers prices they view as fair and non-arbitrary on the products they care most about. Some of the applications are highly visible attention-grabbers such as in-store robots scanning shelves and interacting with shoppers or online chatbots enhancing customer service, offering related items to a shopper’s selections or speeding the path to purchase. Many robots employed behind the scenes in distribution centers or retail manufacturing also leverage self-learning technology. Elsewhere, AI powers fraud detection and autonomous delivery technologies including drones and self-driving delivery robots.

With operations and CX has become increasingly important to the future of retail companies in the UK, many are turning to AI for help. A new survey has found 80% of retailers believe AI has the potential to increase customer loyalty, while 75% intend to engage an external technology supplier to enhance their AI capabilities.

Credit: Vue.ai
Vue. ai, an Indian-US startup that develops artificial intelligence platforms to help online retailers work more efficiently and sell more, raised $17 million in a Series B funding this week. This round was led by Falcon Edge Capital, with participation from existing investors Sequoia and Global Brains (KDDI Japan). 

Helping retailers compete by making better use of their data, Oracle continues to weave significant artificial intelligence and machine learning capabilities into its Retail Insights and Science Suite. With new features, such as notebook-based data science tools, retailers can quickly deploy new data science-driven solutions to further engage and delight customers across channels.

Gap Inc partnered with Oracle to deploy Oracle Retail Merchandising Cloud Service and Oracle Retail Integration Cloud Service to drive operational agility and furnish Banana Republic business teams with better intelligence. In addition to migrating complex retail and financial workloads to the cloud, Gap Inc is also looking to seamlessly connect front-end and back-end functions by moving from a private cloud to Oracle Cloud Infrastructure leveraging various Oracle technologies, including Oracle Exadata Cloud Service and Java Cloud Service as foundation for a Retail Integration Hub and Oracle GoldenGate for real-time data replication.

Banana Republic is obtaining a clear view of merchandising activities through the cloud. The apparel retailer, a division of Gap Inc., operates more than 600 company-operated and franchise retail locations worldwide and an e-commerce site, is deploying Oracle Retail Merchandising Cloud Service and Oracle Retail Integration Cloud Service, powered by Oracle Cloud infrastructure. The GAP Inc. is an existing Oracle Retail user.

Banana Republic intends to drive operational agility and furnish business teams with a single view of inventory, product data and transaction details. For example, the combined solutions allow the retailer to synchronize merchandising operations from buying to inventory valuation. Moreover, a modern user interface delivers exceptions and alerts to simplify management of daily tasks such as managing purchase orders and sales auditing, including offering a path to resolution or items that require attention. Banana Republic users have the data needed to do their jobs more effectively and easily.

Kamal Osman Jamjoon Group LLC, a fashion retailer with more than 700 stores, now has a more unified view of operational data, improved store operations and is driving a higher level of customer satisfaction after deploying Oracle retail platform and technology. KOJ, which runs nine brands across seven countries, has achieved more than a 98% inventory accuracy as well. Operations and Customer Experience are the top benefits of AI in the retail industry. New research by law firm CMS and consultancy Retail Economics shows brands and retailers believe artificial intelligence (AI) can deliver significant opportunities on both fronts. 63% of respondents said AI could give rise to significant opportunities to optimize supply chains, while 53% thought it could reduce costs, and just under half (47%) said it could create more meaningful relationships with customers.





Credit: CMS and consultancy


While most businesses want to adopt AI technologies, many do not have the internal capabilities, meaning they either have to recruit and build up an in-house team or bring in an external provider. An overwhelming 75% of respondents said they intended to engage an external technology supplier to enhance their AI capabilities.

However, there are a few challenges with AI implementation. Just one in five consumers trust retailers and consumer companies to responsibly handle their sensitive data. At the same time, only one in six consumers feel comfortable with the idea of AI-powered in-home delivery, and 42% of shoppers forecast that drone delivery will never become mainstream. Companies will also need to up-skill rapidly to accommodate their new offerings. Nearly 60% of organizations feel they lack the specialized skills required to roll out new AI technology.

Credits:
https://www.retail-insight-network.com/news/pvh-deploy-oracle-retail-solutions/
https://www.fibre2fashion.com/news/textiles-technology-news/gap-inc-brand-banana-republic-adopts-oracle-retail-cloud-249049-newsdetails.htm
https://www.digitalcommerce360.com/2019/03/25/how-ai-and-machine-learning-help-retailers-optimize-price-and-promotions/
https://www.analyticsindiamag.com/mad-street-dens-retail-arm-vue-ai-raises-17-million-in-series-b-funding/
https://www.retailcustomerexperience.com/news/fashion-retailer-boost-store-operations-customer-satisfaction-with-oracle-technology/
https://www.consultancy.uk/news/21330/operations-and-cx-are-top-benefits-of-ai-in-retail-industry
https://www.forbes.com/sites/blakemorgan/2019/03/04/the-20-best-examples-of-using-artificial-intelligence-for-retail-experiences/#6b32ef644466
https://www.linkedin.com/pulse/artificial-intelligence-retail-vikas-d/


Digital Airports- Technology, Innovation and Analytics

All airports are looking for ways to increase productivity and efficiency in the world in addition to enhanced capacity, better security, passenger experience, and robust operations. In order to realize the full potential of advanced digital technologies and business transformation, there is still a long road to go. Next-gen Airports that are in construction today represents the most technologically advanced establishments that leave a source of inspiration for others to follow.

 There was a time where except the healthcare industry (robotic surgeries), use of robots and AI driven technologies was considered sci-fi and futuristic. We see so much of these in our daily lives especially when we travel for work or leisure. With the rapid pace of advancement, these technologies have now become commonplace. When you enter the Airport terminal doors, to the second you land in a foreign country, digital technology advancements are playing an increasingly important role in a wide variety of ways to identify, authorize, authenticate and verify.

Self- service check-in podiums are biometric-enabled (Iris, Thumb impression, smart card readers).
You can download a bespoke mobile phone application that is designed for you to help navigate through the airport, understand ongoing approvals and processes i.e. from check-in to boarding, and bag drop to shopping (duty-free). The new cognitive and advanced computing data technologies like big data analytics are also aiding airlines and airports to connect with their customers like ever before. Understanding of patterns in passenger choice, behavior helps better tailor services and market targetted consumers to promote these.

Recently, I got to learn about companies like Extreme Analytics that help provide information about the travelers, their locations, also the variety of mobile apps that they use as they move through the airport. These applications have a thoughtfully designed user interface that monitors network performance to ensure the consumer is provided with adequate bandwidth and connectivity. In a case when the user feedback/response drops, the designated network manager is able to determine the cause of the deficiency:

a) bandwidth limitations at the edge or core, due to the broadband connection back to the Internet, or; b) the result of a slow remote application server.

The amount of situational awareness that these real-time analytics provide can then be combined with other real-time user and environmental inputs to provide a view into function and security. It is imperative to understand that one cannot see the concept of digital transformation in isolation.

DT is not just about customer experience or made for just customer-facing solutions. It is about a progressive and stable omnichannel customer experience through pervasive digital channels like mobile, www, chatbots, SMS, USSD, airport kiosks, and airport signage. Scoping such implementation includes support from the contact center, airport agent solutions, inflight operations, revenue management and packaging, marketing and pricing.



Credit: Datalex 


One can highlight the plan based on the chief complaint/ pressing issue or a problem that the airline is trying to solve. However, a comprehensive strategic directive is required to address all problems w.r.t digital transformation effort.


Think of the airline brand as a retailer and a mere seller of airline seats.
Airlines clearly understand that engaging and delighting customers are the only way to drive loyalty and this can be achieved by aligning their digital products offerings through the customer’s journey. These airlines also need to stress on providing unique content and capabilities that are required as per demand study.

Case Study: EasyJet. 

EasyJet has put in a great deal of effort to make sure their customers are not drawn in solely by the inexpensive price of its flights but are more driven based on the customer experience provided. Easyjet aims that when their customers travel with them their travel is easy, comfortable and informative through digital apps.

You can scan your passports on your phone and input all passenger information into EASYJET's online portal. You order a sandwich that can be delivered to your seats and you will get an automatic text if your flight is boarding/ or if it is delayed. When you land, you get the baggage carousel number and a navigation map to get there.

You can book parking, do car hire at just a click of a button!

Here are the few use cases: 

1. Enterprise-wide- Real-time operational insights 

Industry: Airports/ Airlines 

Capability: Real-time operational visibility 

A wise man once said, Your eyes cannot see what your brain doesn't know. To smoothen out operations and improve performance, Airlines also need to gain visibility into its operations. A big problem here is disconnected, disparate and redundant IT/IOT systems. To gain facility-wide visibility and control, Melbourne International Airport integrated its IT and OT systems to allow one view of the entire airport’s operations in its Situational Awareness Platform.

Multiple TIBCO technologies were used to incorporate essential operational modes, such as landside transport, aircraft positioning, vehicle information, vehicle flow, flight schedules, fire systems, asset management systems, check-in, and baggage handling. The dashboard access allows airport managers and operators to visualize potential opportunities defining the customer’s journey through the airport and act real time.

The platform processes data from more than 2,000 aircraft, 1,000 airfield and terminal assets and 15 core operations systems.

The outcomes were: 

1. Real-time geospatial mashup of data streams in a fully interactive map on any device

2. Unprecedented visibility into airport operational systems

3. Incident identification and management

4. Industry-leading analytics and predictive capabilities for proactive resource and demand management

5. Will allow for collaborative decision making (CDM) between airport operators, service providers, stakeholders, and airlines to improve quality of service to customers

6. Fully supported COTS platform with long-term development road map minimizes time-to-value

7. Fuels continuing the drive for greater operational innovation and efficiency

8. Enables the enterprise strategic vision through a robust set of core integration technologies



2. Tracing Consumer demand 

Industry: Manufacturing, Food & Beverage including airport stores/chains 

Capability: Paperless product traceability, automated business logic

Now more than ever manufacturers are under pressure respond to consumer demand for traceability and deliver outstanding customer service. To address this challenge, a major Australian soft drink manufacturer implemented an information database system that connects the customer experience directly to production. The solution involved making the production information system available to the Consumer Complaint hotline and applying a series of automated business rules.

Each bottle’s product code could be traced back to the production facility, line, time of manufacture, and the line leader and shift manager details. This allowed the company to react in real-time to product issues but also gave the manufacturing teams visibility into the value and impression they create with their customer.

Now, instead of waiting for daily and weekly reporting, the company can identify and react to issues by the hour. The accuracy of complaint data was increased by up to 95 percent.



3. Single Sign-on, Customer Insights 

Industry: Transport, Airports 

Capability: IOT, automated business logic, border management solutions (Passport Control, visas, pre-clearance, automation) 


Changi airport is the front runner when it comes to Digital Airports. With the convenience of a single account, customers can now view their Changi Rewards loyalty points and iShopchangi purchase history on the same dashboard on the Changi Airport website and iChangi mobile app. For Changi Reward members using the iChangi app, they can enjoy the convenience of the Changi Rewards e-Card as well.

For CAG, the benefit is also significant. The single login ID enables a consolidated 360-degree view of the customer, which was not possible previously when the individual systems maintained their own set of user databases. These numbers will continue to soar in the coming years as new airport features like greeting through robots (at Tokyo Airport ) and the airport luggage check-in robot (at Geneva Airport), become more common.

Automated processes and driverless vehicles will eventually handle baggage handling, refueling, security, and check-in processes, which will be necessary to manage the sheer volume of things and people efficiently. As airport operators think about the airport of the future and act to align their systems to achieve that goal, they are experiencing difficulty in moving from legacy systems to automated processes and, eventually, integrating A-CDM completely.

The most significant legacy issue, by far, is operating airports in silos – something future airports cannot afford. Airlines have an extensive laundry list of tasks – each as urgent as the next – that is required to be done more efficiently with fewer resources.

According to Frost & Sullivan, these challenges, combined with global capacity constraints, will drive up airport IT spending over the next five years. For an organization as complex as an airport, the crucial element of successful airport digital transformation is the integration of the airport’s operational planning and IT solutions.

While emerging technologies such as biometrics, the blockchain, and artificial intelligence are exciting, these point solutions solve specific problems in a very complicated environment. This is a crucial distinction because passengers have grown accustomed to seamless experiences, and expect as much wherever they are, whenever it is.

Their everyday lives involve highly interconnected hardware and software that simply do not operate in silos – and airports must behave this way as well. Silos leave financial value on the table. When people and software operate in silos, the lack of alignment not only severely cripples operational and cost efficiency but also leaves the door open to risky miscalculations that result in delays, inconvenience, and even mishaps.

Moreover, burgeoning passenger growth is only increasingly burdening the traditional siloed set-up. As inefficiencies compound, airports will continue to bleed money through delayed and reactionary decision-making. Particularly in times of irregular operations, operators risk missing opportunities to deliver compelling customer experience. In response to this, airport operators are today automating many of their processes on systems that can plan complex, interdependent resources. Full integration begins by implementing a single, holistic system that gives planners a complete view of on-the-ground operations.

Then, they will truly be able to drive operational performance improvements across the business. By uniting all these voices and sharing timely, accurate information, airport operators can work with confidence. These are powerful tools that are available, out of the box, and can be configured to solve the many scheduling challenges in the airport. Airports are barged with an ever-increasing passenger base and digital technology is expected to aid and augment an airports’ ability to handle enhanced capacity. Digital transformation efforts can improve passenger experience by streamlining processes, which in turn will help drive revenue growth for the airports.


References/Credits: 

https://www.nagarro.com/en/blog/tag/digitization

http://www.changiairport.com/corporate/media-centre/resources/publication/issue-7/a-seamless-digital-experience-through-one-changi-id.html

https://www.circusstreet.com/blog/easyjet-digital-transformation

https://www.lux-airport.lu/category/blog/

http://blog.datalex.com/introduction-to-airline-digital-transformations

https://www.extremenetworks.com/extreme-networks-blog/how-to-enjoy-air-travel-again-elevating-the-air-traveler-experience-at-the-airport-of-2020/

http://www.airport-world.com/news/general-news/6153-blog-the-rise-of-the-digital-airport-experience.html

http://www.adlittle.com/en/insights/viewpoints/airport-digital-transformation

https://www.internationalairportreview.com/article/76057/future-digital-technology/

https://www.forbes.com/sites/michaelgoldstein/2019/03/27/what-are-the-best-and-worst-airports-for-business-travelers/#c17d3a572322

http://www.airport-business.com/2019/03/europes-airports-embrace-digital-transformation-sesars-innovative-excellence/

https://www.moodiedavittreport.com/the-digital-conversation-how-to-maximise-digital-revenues-at-the-airport/

https://en.airport.ir/news/63405/The-rise-of-the-digital-airport-experience

https://www.circusstreet.com/blog/easyjet-digital-transformation

https://www.isa.org/intech/201708channel/

Technology led and Consumer Driven Ecommerce

With the passing of time, a lot of retailers have started to experiment with the latest technology. Although, we know that technology is really important to any retail organization, and retailers are doing their best to serve their customers. On this journey of customer satisfaction, retailers work towards implementing the ideas and also ensure that the entire process is seamless.

Over the years, customers have become connected to their favourite brands in a way that was never seen before. One of the most common ways is by interacting with them on the various social media platforms where the brands educate and provide relevant information to the consumers. The future of retail looks like this: A customer walks into a store and a sales associate says, “Welcome back.

We think you’ll like this product.” The product offered is chosen not only by using the consumer’s prior purchases but also by the store’s intelligent software. The software knows the product’s characteristics (including style, fabrication, color, design, fit, etc.) match what the customer likes. The software is not using the kind of algorithm that Amazon uses to sell books (“customers who bought this also bought these other things”); it’s much more sophisticated than that. It works the way Spotify recommends new music.




Spotify looks at the many characteristics of a song and identifies how it compares to other songs, making its recommendations highly personal, targeted and effective. We are no longer in the business of brands creating value in the rarefied confines of their owned-and-operated supply chains, protected from the extremes of competition that they could afford to extract value through a series of imprecise, expensive, third-party handoffs. As the shift from physical to online stores continues to gain momentum, the legacy institutions will still comprise the greatest share of brand fulfillment, even as their singular power over consumer choice and brand strength is eroding.

 A wave of digital retailers is moving from the internet and into some of the empty mall space left vacant by companies in bankruptcy, like Sears and Payless ShoeSource, or trimming back their real estate, like Gap. One venture capital firm is at the center of the new normal in retail as traditional sellers scale back their footprint while digitally native companies open some of their first brick-and-mortar locations.

 Headquartered in Venice, California, Fifth Wall Ventures has backed more than a dozen businesses, including electronic scooter maker Lime, co-working platform Industrious and real estate analytics company VTS. It has $305 million in assets under management, investing mostly in tech and real estate. Now, it has its eyes set on retail. Fifth Wall has raised $64.5 million as of November, and has a target of $200 million, for a new retail fund, according to a filing with the Securities and Exchange Commission.

 I bought the shorts and, returning to the hotel, I searched the internet for the sandals. I found them on birkenstock.com and was completely dumbfounded by the choice on the site – there are literally hundreds of style/colour combinations to choose from; far more than I had ever seen in any store – the choice was incredible!

 Second example. I am a keen skier and, in the past, have treated myself to Kjus skiwear, which is expensive, stylish, technical clothing. The only physical retail stockist in the UK is Snow+Rock, so last month off I went to the Kensington High Street branch. I found a pair of black salopettes but didn’t like the colour of the jackets and so I returned home to look online.



On kjus.com I bought a jacket, two further pairs of salopettes and three mid-layer vests. None of these options had been available in the store. Department stores survived for decades when consumer behaviour didn’t change very much – as they controlled store opening hours, the locations (stores) where you could obtain the product and the selection.

 Now via the internet and mobile, the consumer is in control with 24/7 opening hours, a variety of delivery options and in most cases access to the whole product file of every brand.

References:
https://www.forbes.com/sites/richardkestenbaum/2019/02/04/retail-technology-nrf-oracle-barneys-zebra-technologies-columbus-consulting-infor-steve-sadove-true-fit-revolve-group/#44d41b016399

https://www.entrepreneur.com/article/329922

https://www.warc.com/newsandopinion/news/from_banner_ads_to_brand_creation_the_digital_retail_revolution/41688

https://www.cnbc.com/2019/03/04/meet-fifth-wall-the-vc-firm-helping-online-retailers-open-more-stores.html




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