technology is the solution
We work, we sleep and we shop to dress and to eat. Exchange of goods and services has always been a natural way to survive and exist. Physical retail will continue to be an important part of our lives in the future, even though e-commerce has taken an increasing share of this pie. But physical retail must adapt to the new and disruptive reality to be profitable and appreciated.
Physical retail must, just like e-commerce, start using data and insights to better understand its visitors, customers and offer more attractive meeting places. But to get there physical retail needs to improve data protection and privacy. Today’s and future customers demand a sustainable retail based on data protection by design, where integrity has the highest priority. No retailer will survive without a balance between data and integrity.
Digitalization Is the Future
Digitization is about improving governance by giving employees the opportunity to create better strategies with the help of data and new technology. Those who are great at digitalization surpass their competitors in most dimensions of financial performance.
Reduce costs by up to 90 percent
Increase the understanding of process performance
Help decision makers to be proactive and act before problems arise.
Digitization has changed many industries since the 1990s. The changes are based on the development of new technologies such as social media, cloud, big data and analytics, embedded devices, 3D printing, the Internet of Things (IoT) and artificial intelligence.
The great interest in digitalization comes from the fact that those who perform well in digitalization surpass their competitors in most dimensions of financial performance. With the help of digitalisation, trade organizations can reduce costs by up to 90 percent for information-intensive processes. This leads to an increased understanding of process performance, reduces cost-driving routines and increases the possibility of understanding the causes of risks. Continuous access to customer and process data allows decision makers to respond before problems arise, generating potential cost savings. All in all, this is a paradigm shift that can be described in many ways, where some of the more popular descriptions are Digital Maturity.
Becoming digitally mature is therefore not just about investing in new technology. It is about adapting the organization’s view of digital innovation and improving governance by giving employees the opportunity to create better strategies with the help of new technology and customer and business data. The risk of mainly focusing on investing in new technologies is that it can cause negative effects. It can lead to deteriorating results and reduce the organization’s overall ability to create results.
Profitable strategies are based on data
So far, physical retail has mainly been developed through inspiration and imitation which is reducing their ability to be profitable. Instead, they need to sharpen their strategies and improve management by using customer and business data, move to data-driven decision-making, and measure the effectiveness of their investments.
The physical retail is about to be outcompeted by the global players on a playing field that is rigged against physical retailers and the society. In addition to growing e-commerce, physical retail fills an important human need. People want to keep and protect the personal proximity of physical retail. Physical retail is also a major employer, whose growth is an important economic driver in most Western countries. Therefore, a crisis-stricken retail results not only in uncertain conditions for the employees, but also for society as a whole.
Today’s physical retailers are bad data users. So far, they have instead been developed through inspiration and imitation of other players in the industry. The reasons for this are several, including lack of time, high costs, lack of skills, as well as weak and unreliable operational decision bases and methods. This in turn leads to low external validity, useless data and great difficulties in building a continuous learning in a changing industry.
The lack of data analytics expertise within its own ranks and among suppliers has made it difficult to streamline the distribution chain, as well as the need to be able to share important information about customers, store environments and goods within the organization. The fact that retailers are now investing more and more in digitalization therefore does not have to be entirely positive. The lack of functioning organizations, strategies and the lack of competence can instead lead to digitalization investments reducing the retail organizations’ opportunities to become profitable.
Physical retailers therefore need to use new technology in order to sharpen its strategies and improve management. They need to increase the use of customer and business data and move to a more data-driven decision-making. They also need to increasingly measure the effects of their investments before the changes are implemented.
Create the best shopping experience for your customers
Indivd gives you a complete understanding of your visitors and customers. That is the most flexible way to create accurate store experiences and make profitable investments. Create an account on Indivd Analytics for free, activate your stores and get all data updated daily. It doesn’t get easier than that.
Get valuable customer- and business data to measure success
Enable a digitally driven culture that strengthens your employees
Effectively use digital strategy, control and implementation.
Co-create data driven strategies with your partners
Why we do this: To Create the Right Balanced Center of Gravity
New and smart technology enables more practical, attractive and appreciated shopping places for the customers, as well as a more profitable and sustainable future for the retail industry. But the guarantee of realizing this is secure customers and preserved integrity.
That is why we need both to support and control technological development. The key is to find a balance between what inspires and what worries. Indivd constitutes this balance.