So… what does the future of retail look like and what might an airport have to do with this?
Well first off, Omni-Channel’s a great buzzword, but how best to define the term and how can retailers (and even airport authorities) get from where they are today to the promised land?
This week’s share ‘Videos and Visions: Of Omni-Channel and Airports’ seeks to shed more light on both the definition and growing manifestation of future state omni-channel retailing.
To get started you should check out part of Jim Tompkins video ‘The Titans’ specifically focusing on his third game changing strategy ‘Omni-Channel Retail’
The entire video is 34 minutes long (well worth a look) but for today’s purpose have only selected the last 15 minutes in which Jim puts forward one of the most condensed, compelling and complete definitions of omni-channel retail I’ve seen to date!
Sure hope you enjoyed Jim Tompkins expanded views on omni-channel retail and how mastering same will truly be a game changing strategy for those retailers who successfully cross the chasm.
Evolution to omni-channel retail is all about transforming the customer journey and what better place to begin talking about journeys than the airport!
Omni-channel evolution is all about taking the ordinary, re-imagining what could be and then recreating the traditional customer experience into the extraordinary.
This is what has been done at the Frankfurt Airport through their omni-channel e-commerce transformation as highlighted in this video!
How are 160,000 daily travellers contributing to making the Frankfurt Airport the largest shopping mall in Germany?
The answer is e-commerce integration leveraging space and time to uncover opportunities for travellers to take better advantage of time during delays, stores in other terminals of airport and keep up with gate changes to ensure packages get to passengers before departure.
These opportunities also extend to arriving/returning passengers who can have their groceries ready for pick up upon their arrival/return to conveniently take home with them regardless of the time of day.
All of this was developed for Kai Schmidhuber of Frankfurt Airport courtesy of Kian Gould and the team at AOE, along with Magento, representing just one more example of how omni-channel continues to transform how we’ll all shop in the future!
Let’s now re-imagine all of the ordinary in a digital lens to see where space and dead time can be leveraged; the waiting room, concert venues, commuter trains/stations, sports stadiums, the gas station and even the shopping mall are all places ripe for re-invention.
Time to digitally rethink the ordinary to discover and create the truly exceptional.
Future of Retail as an Omni-Channel ‘Internet of Things’ | Jeff Ashcroft | LinkedIn
The future always comes faster than we think.
Even more so in the evolving world of fast retailing where websites are now merging with bricks and mortar stores to create what last April I dubbed The Endless Store.
How will retailers manage in stores without boundaries inhabited 24/7/365 by almost 8 Billion shoppers armed with mobile computing and payment devices?
Not easily, and certainly this new reality is as terrifying as it is awe inspiring to those with true merchant blood coursing through their veins.
Welcome to the world of Matrix Commerce aka Matrix Retail where retailers will have to monitor, manage, optimize and move more information and products faster than ever before.
The question is how will they be able do this quickly, accurately and effectively given the growing scale and complexity of evolving digital retail business?
When it comes to managing the reams of associated information and making the multitudes of rapid decisions needed to manage Matrix Commerce, new technology will be required to keep up. The human managers and masters of these retail supply chains, stores and online spaces will likely need to augment their capabilities through the use of cognitive technologies.
When it comes to products, many years and billions of barcodes have been printed to try and keep track of retail store inventories. And frankly other than improving checkout accuracy and speed this now somewhat antiquated technology still relies on people to maintain inventory accuracy at stores which just doesn’t work.
And even where the rare store can make it work, this method is not fast enough to keep up with the instantaneous requirement to power omni-channel retail.
The time for people to try and keep track of products in stores has passed, it’s over and never really worked, it’s now time for the products to keep track of themselves.
All products now need smart labels and smart tags to keep track of them at the item, pack, case and pallet level from manufacturing through distribution, to stores and then the ultimate delivery to, and returns by consumers. I would use the term RFID to describe these tags, but for some reason for several years RFID has been treated as the bastard child of the retail business, but hopefully not for much longer.
The tide is starting to shift towards the use of smart labels and smart tags as this example from lululemon‘s results quoted from RFID Journal demonstrates.
Global athletic apparel company lululemon reports that it has boosted its in-store revenue by deploying a radio frequency identification system at all of its stores to track its products’ movements as they arrive at stores, are placed on display on the sales floor and are sold. The system has increased the company’s inventory accuracy to 98 percent, says Jonathan Aitken, lululemon’s RFID program director, which is one reason that the company’s revenue is up, since its stores know what goods are available in the back room to be restocked on the sales floor and purchased. The company’s ability to access RFID-based inventory data and choose to sell goods online or in store accounted for 8 percent of e-commerce revenue for the quarter, said Stuart Haselden, lululemon’s CFO, during the firm’s third-quarter investor call in December 2015
Not only can this technology be utilized for inventory control and tracking purposes, it also can enhance the sales process and sharing of product information in store to assist in purchasing decisions.
Online and bricks & mortar retailers who continue to operate in status quo mode will not be able to keep up with the customer experience demands of the mobile connected consumer.
The world of retail is now omni-channel and shoppers live in a fast moving connected world where Endless Store shopping environments will be the norm.
Products will soon utilize smart labels and tags to keep track of themselves, communicating with both systems and consumers to manifest the emerging future of retail as an omni-channel internet of things.
I study disruptive technology, specifically innovative technology that gains so much momentum that it disrupts markets and ultimately businesses. In the past several years, disruptive technology has become so pervasive that I’ve had to further focus my work on studying only disruptive technologies that are impacting customer and employee behavior, expectations and values and affecting customer and employee experiences. I can hardly keep up with today let alone consider the potential disruption that looms ahead in every sector imaginable including new areas that will emerge and displace laggard perspectives, models and processes.
The image above represents the focal point of my work in 2009 – 2012. I called it the “Wheel of Disruption” (WoD) and it was meant to document and convey that the “Golden Triangle” of real-time, mobile and social, surrounded by the cloud, was inspiring incredible innovation and thus producing new and disruptive new apps, tools and services.
Watson Analytics Allows Brands to Use Everyday Language to Identify Hidden Data Connections and Drive Better Business Performance
IBM (NYSE: IBM) today (Dec 3rd) announced new commerce capabilities that help online merchants easily gain the insights needed to evaluate category and product performance and make quick and effective merchandising decisions. Leveraging cognitive capabilities from Watson Analytics, IBM Commerce Insights allows practitioners to gain a real-time view into customer behavior and market factors that are impacting their business, proactively identify opportunities and roadblocks and take informed actions to increase sales and business performance.
It’s been a bit of a whirlwind since the launch of X. In the last two weeks, I’ve hosted conversations about the promise of experience design in London, Düsseldorf, Oslo, Sydney and Geelong.
Somewhere along the Atlantic, I was asked to answer a few questions ahead of my arrival in Geelong for the Pivot Summit by Courtney Crane of the Geelong Advertiser. Thanks to the magic (or curse) of inflight wifi, I was able to make her deadline. But it was more than a Q&A, it was the purpose of the conversation that stopped time to reflect on how this once bustling city is proactively investigating how to build upon its history to adapt for the future.
Selling change to organizations is difficult. One reason is that change represents a threat, a chance for things to go wrong. It’s no wonder that many people avoid anything that smells of change.
Another reason is that different people in the organization have different worldviews, different narratives.
Consider the difference between “offense” and “defense” when confronting a new idea.
The person who is playing offense wants to get ahead. Grow market share. Get promoted. She wants to bring in new ideas, help more customers, teach the people around her. Change is an opportunity to further the agenda, change is a chance to reshuffle the deck.
The person who is playing defense, though, wants to be sure not to disappoint the boss. Not to drop a ball, break what’s working or be on the spot for something that didn’t happen.
Either posture, surprisingly, can lead to significant purchases and change.
Defensive purchases are things like a better insurance policy, or a more reliable auditor. Offensive purchases include sophisticated new data mining tools and a course in public speaking.
The defensive purchaser switches to a supplier that offers the same thing for less money. The offensive posture demands a better thing, even if it costs more.
Not only are people divided in their posture related to change, they’re also in different camps when it comes to going first. For some, buying something first is a thrill and an opportunity, for others, it’s merely a threat.
While we often associate defense with late adoption, that’s not always true. The military, for example, frequently pushes to buy things before ‘the bad guys’ do. For example, the internet was pioneered and supported by the defense establishment.
And while you can imagine that some people seeking to make change happen are eager geeks of whatever is new, it’s very common for a proven success (a titan) to wait until an idea is proven, then overinvest in putting it to use in order to continue to steamroll the competition. Trader Joe’s did this with laser scanners… They like change, as long as that change is proven to help them win even more than they already are.
Play with the graph a little bit and consider who you are contacting and what story you’re telling…
Those in the know in online retail have been leveraging dropship vendors to create expanded ‘endless aisle’ assortments for a number of years now.
Through the ongoing development of the Matrix Retail approach it’s now become apparent a new reality is emerging best described simply as the ‘Endless Store.’
Just as an ‘endless aisle’ expands assortments well beyond the current store and retailer stocked web assortments, creating the ‘Endless Store’ connects and extends the bricks & mortar and virtual environments within which retailers operate. The potential for dramatically improved customer service and functional development of a unified retail customer experience is now within reach of every retailer.
We say we want to treat people fairly, build an institution that will contribute to the culture and embrace diversity. We say we want to do things right the first time, treat people as we would like to be treated and build something that matters.
But first… first we say we have to make our company work.
We say we intend to hire and train great people, but in the interim, we’ll have to settle for cheap and available. We say we’d like to give back, but of course, in the interim, first we have to get…