Let’s start on a light note. For a brief period of time, the Internet of Things became associated with the fridge that orders milk by itself. This retro-futurist icon is a great example of a common tendency for extremely disruptive technological waves to first enter the public realm in the form of low impact nice-to-have use cases (personal computers and robotics suffered the same fate at first). Besides being amusing, these are also instructive. The small-mindedness of a fridge that has a direct line to the supermarket is a great way to make a really important point: the value of the Internet of Everything (IoE), ultimately, is about the network, not the individual connections. Read More »
IOT::Empowering the Enterprise turned out to be quite the dance party this year. Or at least the kind of Internet of Things (IOT) party you’d expect when you bring together over 300 IOT thought leaders, including startup founders, venture capitalists and corporate investors, and Fortune 500 executives.
And adding real-time biometric analytics doesn’t hurt either, tracking everything from temperature, movement, sound, and even crowd sentiment and energy levels.
With much of the IOT buzz focused on consumer tech, this event was specifically focused on IOT in the enterprise. It showcased the ecosystem of innovators that are fundamentally changing cities, manufacturing, energy, transportation, retail, and the many other industries embracing the Internet of Everything (IOE). Cisco Investments, co-hosted the event on our campus with other leaders in the space – SAP, Siemens, Sapphire Ventures, and Silicon Valley Bank, all helping to make IOT transformative. Read More »
Today, mobile devices are everywhere — and vying for the attention of just about everyone. On a train, in a café, or in the park, people are gaming, connecting with far-away friends, and watching TV shows.
Increasingly, they are also researching, browsing, and buying products.
Such tech-savvy mobile shoppers are driving a retail revolution that has left many brick-and-mortar retailers scrambling to catch up. In fact, mobility and apps have created an industry disruption similar in scope to what we saw with e-commerce in the late 1990s and early 2000s.
For many traditional retailers, the stakes are high and the challenges daunting. However, I see tremendous opportunities. Read More »
Our world is rapidly connecting people, process, data, and things in ways that were unimaginable just a few years ago. The Internet of Everything (IoE) is at the heart of this transformation.
As more dark assets are “lit up,” organizations will receive an influx of valuable data that can lead to insights, knowledge, and opportunities. However, much of the data generated will be just beyond reach, frequently referred to as “dark data.” Read More »
Today’s retailers face a hard truth: their customers have embraced digital technologies faster than they have.
But I believe that retailers have an opportunity to elevate the shopping experience in exciting new ways. By integrating the digital and the physical — in effect, merging clicks with bricks — retailers can capture new revenue, along with loyal, satisfied customers.
First, retailers need to understand a changed landscape. In only the past five years, mobility, analytics, e-commerce, and other technologies have had a profound effect on the entire shopping experience, putting the customer in charge. Traditional retailers must respond with highly relevant experiences that drive greater efficiency, savings, and engagement.
Recently, I shared some thoughts on this topic with Cisco, both for a new global study on retail trends and also in a podcast titled The Last Checkout Line. The U.S. and U.K. findings of Cisco’s study were released early this year and showed some surprising results. As Cisco’s paper emphasized, customers demand a hyper-relevant shopping experience, in which past shopping histories, current contexts, and future plans drive real-time interactions with the retailer, in-store or out.
Some retailers are already excelling in these areas. Sephora, the French cosmetics franchise, is a good example of a retailer that is offering digital and mobile experiences in-store, enabling customers to interact and discover products in new ways while also bridging a seamless connection with the online experience. Other retailers have leveraged analytics to ensure stock availability for individual customers, integrating with other store locations to ship products to the customer’s home or a more convenient store location.
I believe that all retailers will need to assess their current capabilities. The mobile experience in the store is essential, both to interact with customers on a deeper level and to empower in-store associates with real-time contextual information. This requires enabling Wi-Fi and expanding bandwidth to accommodate new digital experiences.
Analytics, of course, is critical to understanding customers, in-store and out. Retailers will need accurate information at all stages of the shopping journey. That includes accurate data on inventory and customer browsing habits; there is no faster way to disappoint a customer than not having the item he or she expects, or to make the customer wait.
But retailers will also need to be sensitive to how much information customers are willing to share. There’s a fine line between an appropriate “opt-in” incentive and one that is perceived to be intrusive. If retailers get it right, customers will see the clear benefits and value in sharing their data.
As Cisco’s retail paper stressed, technology has accelerated changes in customer behavior, and traditional assumptions around age demographics are outmoded. Gen Y can enjoy the store experience, for example, while older customers may be highly connected and mobile. Retailers will need flexible, future-proof infrastructures that enable them to respond to ever-shifting customer demands.
I see the winners in retail succeeding on three key fronts:
- They will provide breakout innovations that set market expectations for new kinds of customer interactions, new ways of sorting and tracking products, and new ways of fulfilling customer needs. These will be highly relevant and situationally aware; that is, aligned with customers’ current contexts.
- They will have flexible systems and architectures in place to support these new kinds of interactions, and adapt to changes in customer behavior.
- And they will ensure a consistent, seamless experience, whether the customer is engaging via email, call center, online, a mobile device, or with an in-store customer associate.
In the end, winning retailers will shift their focus from short-term profits to a customer-centric strategy. After all, the more relevant, streamlined, and seamless the customer experience, the more likely it is that those customers will return — again and again.