Retail and Digital Innovation

40 terabytes of data generated per hour. This data could be used by the retail industry to get to know its customers, empower its employees, create an intelligent supply chain and reinvent its business models.

This is the key message of the speech by Satya Nadella, CEO of Microsoft Corporate, held at the opening conference of NRF 2020, the largest international event for the Retail sector that every year in New York opens new scenarios, stimulates sharing, collaborations, synergies and forges the path of the sector for the years to come. A leap into the future of Retail for the decade 2020 – 2030.

Smart Retail: AI, AR, VR and Machine Learning

“Smart retailing” starts with knowledge of customers.

The Retail industry collects and possesses data and information with one of the highest values and potential in the absolute sense: interests, preferences, moods, attitudes and purchasing frequencies of consumers. But how should we use this information, take digital technologies to the next level, support and enable the digital supply chain and redefine the same shopping experience within stores?

There are numerous cases of inspiration among some of the world’s top retail players who are implementing highly innovative solutions to exploit the potential offered by data analysis, to reinvent their business model, to offer their customers engaging, immersive, personalized experiences. AI, AR, VR and Machine Learning technologies are the basis of the project developed by Starbucks which has developed its own AI technology, called Deep Brew, which allows the brand to automate the inventory process, better allocate staff and deepen customer relationships. Starbucks CEO Kevin Johnson said technology is vital to its efforts to build deeper relationships with customers, particularly those in its loyalty program. “Deep Brew will increasingly power our personalization engine, optimize human resources, and drive inventory management in our stores,” said Johnson.

Daily life is hectic and the time available to consumers is increasingly short. That’s why consumers expect shopping to be simple, fast, frictionless. Thanks to technological innovation, it is much easier to shop today than it was five years ago. The customer can research and compare prices at home and go to the store, or consult their smartphone in real time to receive indications and suggestions from other users’ reviews. 60% of consumers say retail innovation improves the shopping experience, while 80% of consumers say innovation improves the online shopping experience.

The fundamental requirement begins with knowing customers and using data to learn more; Consumer behavior is the core on which retail must focus. Retailers must reinvent the business model and to do this they must use both innovative technologies and an empathetic approach to their target.

Don’t stay out of Digital Innovation

“Retailers don’t want to be left out of digital innovation. They do not want to have to reinvent the wheel but they do want to be protagonists themselves. They want the latest in technology. Retailers need to be proud of their innovative capabilities by developing their own digital insights and needs.” Nadella says again during his speech.

Today, 30% of e-commerce sales are made thanks to reviews and this value will continue to increase. It’s an exponentially growing number because 80% of consumers expect retailers to offer them personalized products and services.

Retailers are the custodians of the most important consumer data. They need to build relationships of trust whether it’s security and privacy, AI and innovative solutions on an emotional level or to guide purchases. Technology, Innovation, Storytelling and Empathy. Mixing these components together is the key to success for the retail sector over the next decade.

To do this, retailers must rely on development partners who have a transversal vision and are able to govern innovation processes in a seamless way between the real dimension of the stores and the digital dimension of the online world. Governing innovation processes, designing solutions that use technologies both for data management and for the use of immersive and emotional experiences for its consumers.

Business Application to govern internal processes and marketing and communication strategies.

Creative, Emotional and Concept Application to transform physical stores into travel destinations, virtual destinations to touch and live the product experience, get in touch with the values, traditions, flavors and smells of the stores.

Trust Relationships, Algorithms, Storytelling. Just some of the values that are part of the DNA of the Innovation Lab Team born within Axians in the Turin headquarters.

Combine Unified Infrastructure solutions with the development component of applications for Business and Customer Journey: from big data analytics to omnichannel strategies to reach the consumer and offer emotional experiences in-store and online.

Constantly explore the universe of digital innovation globally. Intercept, analyze, metabolize cutting-edge solutions present worldwide in order to shape them on the needs and demands of our customers to transform innovative ideas into new fascinating engagement opportunities for consumers.