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Retail

 Thinking about the ICT future of the store with my colleague Bharat Popat.  Doodling at the mental whiteboard.

 Current state in the lower left.  It’s client-server architecture. Three to six servers per store, depending upon segment and store size. Fat-client POS and desktops. Fans and hard drives. Ongoing break-fix maintenance contracts.  A network pipe just big enough to each night send out batched transactions, inventory, and other performance data, and download the price-item files, promotions, and performance reports.

 Now, a line from the lower left current state all the way to the upper right future.  From the “as is” to the “will be.”  Figuring three to five years.  An assumption that a retailer will want to lead the segment and compete worldwide. 

 Hmmm.

 Grab the pen and draw the line, and as you do so, calculate the evolution of technology and of consumer expectations.  Calculate the impact of global e-commerce, of multi-channel and omni-channel, of smart phones and tablets, of social networks and social shopping.

 Calculate the impact of content clouds and IP video, of augmented reality and “mashops” of virtual into the physical. Calculate the impact of right time data analysis. Calculate dynamic video messaging.

 Calculate how to cut time-to-capability down to weeks, not years.  Calculate how to do more and spend less.

 Now multiply it all by the demographic weight of the tech-savvy Millennial generation.  

 Do the math.  Yes, I’m prejudiced -- I’m a proud Cisco guy.  But it’s the math (not the badge) that leads me to this future state: a retail store that’s a living, breathing website.

 A retail store that’s built on a lean, network-based architecture and a significant increase in network capacity to and from the store.  

 Lean store and big pipe.  

 More about these calculations in weeks ahead.

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1 Comments.


  1. Interesting analogy there, since most retailers in the beginning of the e-commerce age thought that e-Commerce needs to replicate the store features in order to be successful.
    Now it is almost backwards that retailers are finding they need to make the store adopt certain web-like features like dynamic content, personalization etc. Consumers are picking the channel based on what appeals to them, whether it is web, store, voice or mobile.

    Maybe taken to the extreme there will be two models of stores going forward: Stores stictly as a fulfillment center for web orders that need quick local pickup (like a pharmacy pickup window) and stores that are full physical manifestation of the online experience complete with entertainment, education, services etc which will dynamically adjust as frequently as web site refreshes

       0 likes

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