For that last few years, Cisco has been watching the impact of the Internet on transforming the retail industry. As more people, processes and things are connecting to the Internet, retailers can capture more data to better predict when and where consumers will want to buy and capture more revenues.
Today, Cisco released Internet of Everything research that equates to $81 billion globally in 2013. But this represents only 45% of the opportunity that could be gained by the Internet of Everything. Retailers could have realized an additional $99 billion this year if they were more connected across their operations. The good news is that retail IT executives are confident that can capture this value. On average, retail IT executives rated their ability to capture Internet of Everything at 7.2, on a scale of 1 to 10.
Hello, and welcome to my inaugural blog! I am happy to be here sharing my thoughts and experiences with you, because I have to tell you: I have the coolest job in the world.
I’ve spent my entire life in retail, starting as a part-time worker while in school and moving up through merchandising and operations to regional vice president at Shopko Stores, Inc., overseeing the work of 12,000 employees. Over more than 20 years, I fell in love with the whole process of retail. When I was invited to work in the retail technology sector, it seemed a natural extension of the work I was already doing. Relatively few tech companies build their solutions around store needs – too often, they tend to focus on technology for technology’s sake. In fact, sometimes retailers do the same thing! I saw an opportunity to impact how vendors – and retailers – think about technologies that truly add value to the business.
Today’s trend toward mobility, or BYOD, is a great example. I’m sorry if this shocks you, but mobility without a strategy has no value at all for the retailer! I have seen stores invest in Wi-Fi networks while continuing to build cell-based apps – this despite Wi-Fi’s higher speeds, more flexible capabilities, and ability to improve the shopping and selling experience. They don’t want employees surfing the Internet, so they block employee access to the network and information that could help improve sales. They understand that shoppers are “showrooming” – sharing opinions and comparison shopping online from the store – but do not leverage the same behavior to promote products and analyze customer trends.
Mobility is a vehicle for improving the business, an extension of overall strategy. (You might like to check out this Lippis Report on “Monetizing Public Wi-Fi in Business to Consumer Relationships.”) I work with companies to help determine how to use such vehicles to define the customer experience, collect and manage large masses of data, and make store operations more efficient. I also help design the Cisco solutions that solve these retail business problems.
Join me on a journey to learn how stores are approaching, managing, and dealing with today’s innovations and how they are meeting customer needs. We’ll talk about how stores are using today’s systems, the most recent trends, the latest research, and how retailers are dealing with this very rapidly changing industry. Please get back to me with your own stories and questions in the comments section.
One more word: I love retail trivia! Comment if you know the answer to this question: What retailer in the country has the highest amount of sales per square foot of its stores?
Ever felt that you’ve spent half your life searching for a parking space? Well, it’s not that much of an exaggeration. One study estimates that typical drivers spend 2,549 hours of their lives in the aimless, money-wasting, and gas-guzzling quest for a place to park.
Now imagine that through technology — connected cars, roads, and, of course, parking spaces — you could substantially reduce all of that wasted time and money.
Unfortunately, business and enterprise are rife with their own versions of wild goose chases for parking spaces: supply-chain deficiencies, checkout bottlenecks, quality-control failings, communication breakdowns, and, yes, clogged parking lots. These are but a few of the drags on productivity, efficiency, and innovation.
The solution for all these problems may be the same: connectivity.
The retail industry is facing unprecedented changes. Since Amazon went online in 1995, technology has been blurring the boundaries between virtual and physical retail space. The third annual Cisco study of consumers found that nearly 80 percent of U.S. consumers use the Internet to shop. Armed with their smartphones, customers now walk into a store with much more knowledge and power in the palm of their hands than ever before, enough to keep retail executives up at night.
Nearly one out of three shoppers search on their mobile device before purchasing in store. Customers want to know if items are available in the right size, right color, and right now. These shoppers expect the same prices, products, and offers regardless of the channel being used (e-commerce websites, brick-and-mortar stores, or mobile devices). I’m surprised at how many stores really don’t know what’s in stock. To keep up with today’s savvy shoppers, retailers need to update their inventory systems using signals from their supply chains, online presence, back rooms, and front stores in real time. And all of this is the in the context of shrinking customer spending, rising business costs, and competition.
With these monumental shifts in consumer behavior, it shouldn’t be a surprise that the biggest Internet of Everything (IoE) Value at Stake opportunities reside in extracting customer insights and creating better experiences. For years, retailers have trusted Cisco innovations to help them improve the store experience, increase supply chain efficiencies, and deliver a consistent multi-channel experience to their customers. Just last month, on stage at Cisco Live with John Chambers, I demonstrated Cisco’s location-based services to help retailers improve planogram and measure campaign effectiveness through the movement of customers. But there is much more that the Internet of Everything can do to address the two main goals of retailers: revenue and loyalty.