Not An Overnight Game: Understanding Tech Implementation In Retail

Originally published in: Forbes

by Sergey Kozhevnikov, VP of Product Development at Teamwork Commerce

Technology’s role within retail is only growing in importance. Today’s consumers expect speed, convenience and high-quality experiences. Manual in-store processes not only slow down operations, but labor-intensive tasks take in-store associates away from the shop floor, reducing the opportunity to deliver the seamless and enjoyable experiences that shoppers now demand.

Modern technology innovations have proven themselves to be the solution to these challenges. We are now at a point where any retailer that isn’t operating with an all-encompassing technology stack is at a disadvantage to its competitors.

From the supply chain to the store, innovative solutions are helping retailers improve processes across their business. Omnichannel fulfillment provides customers with purchasing options that suit their needs. Item-level RFID enables real-time visibility of stock to optimize inventory management and streamline supply chains. Technology is allowing in-store visitors to complete transactions on their own with self-checkout or from anywhere on the shop floor with mobile point-of-sale (POS) devices.

Everywhere retailers look, technology is available to help them become more efficient, drive return on investment (ROI) and, most importantly, improve the customer experience. However, technology deployment is not necessarily a straightforward practice, and there are several considerations to make before taking the plunge.

Find the issue.

When it comes to technology adoption, it is wise to begin at the end. Retailers should ask themselves what the ultimate goal is. In an ideal world, they would know where the issue lies: too much in-store sales drop-off as a result of long queue times, high volumes of stock going to waste or poor customer satisfaction levels. Often, this is not the case.

Retailers must analyze their operations closely. An internal audit might highlight hidden issues that have gone unnoticed and need addressing as a priority. Finding the challenges and prioritizing the need to fix them can provide a clear pathway to technology implementation.

Once any issues have been uncovered, retailers must consider what the ideal picture looks like. Are busy stores creating shop floor congestion? A good problem to have, but a problem nonetheless. Retailers might set the goal of reducing in-store congestion at peak times by 30%. Objective outlined, the question now lies in how technology can provide the solution.

Source the solution.

Once the objective is outlined, there could be hundreds of potential solutions available from a range of technology providers. The biggest mistake retailers can make at this point is to simply jump at the first technology laid out to them.

Returning to the in-store congestion challenge, there are several potential avenues to explore. Retailers could look to improve their alternative sales channels to encourage more online or omnichannel sales, reducing the need to spend time in-store. They might look for a checkout solution—whether self-checkout or mobile POS. Alternatively, congestion might be caused by customers waiting around for a depleted staffing team to assist them, and retailers could look to automate more back-of-store processes to free up the time of their associates.

There is rarely one simple answer to an issue. Retailers should take their time, test different technologies and analyze which deployment—or deployments—can deliver the best results. Retailers must also ensure they partner with IT vendors that have a demonstrated track record of delivering valuable solutions.

Consider the challenges.

Even after the desired technology has been implemented, the process of integration can present its own hurdles.

One of the most obvious hurdles falls on deciding how to integrate the technology itself. Typically, retailers will choose to run a pilot rollout with the solution contained in one location. Taking place over a set period, the pilot will allow retailers to discover any initial issues—whether challenges exist around deployment itself or tweaks that need to be made once the solution is operational. It also allows retailers to get a feel for the technology in a day-to-day environment and pre-adjust components for a more seamless implementation ahead of full-scale deployment.

A lack of buy-in from the wider brand can also create challenges for retailers, especially those who are expected to use the technology daily. At this point, the onus falls on decision-makers to prove the value proposition to the wider business—and stakeholders might need convincing in different ways.

A CFO’s view on a seemingly expensive solution will be completely different from that of an in-store associate, who is being instructed to learn and leverage a potentially complex device. Where the CFO might need to be convinced of the long-term ROI, the in-store associate will need to know that they will receive full training on the device and, importantly, that they will be shown how the solution will make their job easier, freeing up their time to complete other tasks.

Either way, both parties must buy into the technology’s use case equally. They must also understand that deployment likely is not a quick fix, and patience is needed with all integrations. Only when an entire organization has an aligned view of technology can its value truly be recognized.

Think long-term.

Technology adoption is not a swift process. To keep up with ever-changing consumer trends, retailers must consistently review their technology requirements and improve their offerings wherever possible. Slowly, retailers can reach a point where they are utilizing an all-encompassing technology stack that communicates seamlessly in real time. But this cannot happen overnight.

While ROI can be delivered quickly, a long-term approach to technology investment can serve retailers well, delivering sustainable business results as they keep ahead of competitors with their integrations.

Importantly, retailers need to find the right technology partner who will guide them through the entire technology adoption process and help evolve their offerings over time. This will ensure that any technology implemented will be as effective as possible, as quickly as possible, to deliver high-quality customer experiences, as well as efficient processes that maximize returns for retailers.