Page 21 - AeM_Mar_2018

BEST PRACTICES & STRATEGIES

Deploying the right

technologies is

essential for retailers

to survive, says

GlobalData

Technology has become a strategic imperative for all greater automation and predictive analytics, which is
sectors and retail is not an exception. As retailers also increasingly powered by artificial intelligence and
across the world scramble to lure customers and machine learning capabilities.”
improve operational efficiencies, deploying the right Retailers are also embracing digital payment
digital technologies is essential for differentiation and technologies including digital wallets, mobile readers,
survival, according to leading data and analytics integrated apps such as WeChat, as well as blockchain
company, GlobalData.
to provide a seamless omnichannel experience to
The company’s report ‘Technology Trends in Retail, customers.
2018’ mentions various digital solutions that drive In addition, GlobalData predicts that as shopping habits
greater personalization and a smoother shopping change and digital technologies advance, the
experience across online and mobile platforms, as well automation of customer service based on AI and
as in brick-and-mortar stores. These solutions include robotics - combined with augmented reality
artificial intelligence (AI) for customer service, analytics experiences and new store formats - will evolve further
and smart supply chain management, but also in the retail sector over the next few years.
interactive tools based on augmented reality and the
latest digital payment methods. Improving last-mile Not to mention that new technologies will find their
delivery is another major challenge for retailers this ways into retailers’ daily business. Ocado Technology,
year, which requires shorter delivery windows and for instance, the technology division of the world's
innovative approaches such as small self-driving robotic largest online only supermarket, could come to their
vehicles. rescue, when talking about online fraud. The tech
company just revealed the world's first AI-based fraud
Andreas Olah, Lead Analyst for Digital Retail at detection system for online grocery purchases.
GlobalData, says: “Personalization can drive customer
loyalty and the ability to collect more data about their The new system relies on an advanced machine
behavior and preferences. By establishing what learning algorithm, using TensorFlow and the power of
customers are likely to be interested in through the Google Cloud, that’s part of the Ocado Smart Platform
latest analytics and AI technologies, retailers can upsell (OSP), an end-to-end solution designed to power all
more products and avoid going out of fashion.” aspects of a retailer's e-commerce business. Ocado
Technology developed a mechanism of predicting and
Furthermore, retailers are deploying a large number of recognizing incidents among millions of other normal
Internet of Things (IoT) devices in their stores and events, using data collected from past orders, including
warehouses to engage with clients and collect data cases of fraud. The engineers then implemented a
through sensors, cameras and Bluetooth beacons. deep neural network using TensorFlow and uploaded
However, since most IoT devices are connected via the whole fraud detection system to the cloud.
open networks, they become increasingly vulnerable to
cyberattacks. Which is why GlobalData foresees In any case, Olah concludes: “Instead of jumping on
cybersecurity and data protection capabilities to emerge every trend bandwagon, retailers need to be judicious
as key differentiators for technology solutions in 2018. while selecting digital technologies, which should match
customers’ specific needs and the retailer’s brand
Retailers are expected to invest substantially in smart identity to address existing problems and challenges. In
supply chain and inventory management capabilities addition, customers should be allowed to choose their
this year to achieve cost savings, eliminate preferred channels of shopping and be encouraged to
unnecessary steps in distribution, keep lower inventory interact with certain digital tools, rather than be forced
levels and thereby assert greater control over their to use them.” ◊
suppliers.
By MediaBUZZ
Olah continues: “Supply chain management systems
are expected to get upgraded, with the addition of

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