Digital Transformation In An Omni-Channel World
By Erin Harris, Editor-In-Chief, Cell & Gene
Follow Me On Twitter @ErinHarris_1
November 2015 Innovative Retail Technologies
You can’t talk about innovative retail technologies without discussing digitization. Much has been written about retail’s digital transformation and what it means for the retailers who embrace it, or worse, the retailers who don’t. Migrating to the technologies that will enable continued and improved relevance to the connected consumer is not only important, it’s expected. But let’s face it — digital transformation is a big term for what you’ve already accepted as business-as-usual over the past few years. You’re already going mobile. You’ve long been moving back office processes away from pen and paper. The question is, who’s in control? Are digital technologies transforming you, or are you strategically leveraging digital to transform your business? Digital transformation is not a megatrend to be feared, but rather a strategy to be defined. And that strategy should be omni-channel focused.
Digital technologies continue to expand their influence, as early adopters can be rewarded by consumers. And, yes, digitization is about retail execution that’s faster and clearer than your competition. But digital technologies not only aid the connected consumer, they also are an enabler of omni-channel retailing, a fact that is loudly evidenced by our annual Tech Spending Report (see page 5). Indeed, Senior Executive Editor Matt Pillar’s comprehensive report is based on quantifiable data from IRT readers, and the report illustrates the convergence of digital channels in stores, thus supporting the ongoing relevance of the store and contributing to the maturation of omni-channel.
Akin to other business-related strategies, developing a digital strategy should involve technologies that improve operational efficiencies across the enterprise. As such, a thoughtfully crafted three- to five-year digital strategy must include not only the technologies that push the innovation envelope, but also the fundamental tech infrastructure that fosters omni-channel integration. Paper-laden anything just isn’t smart retailing, but retailers don’t need to make hasty, drastic changes to their tech stacks to digitize their businesses. There’s real value in the fail fast, fail cheap approach, but true advancement also means tending to the tech-savvy consumer by first understanding the customer experience and building on the necessary technologies and processes from there — digital, physical, or otherwise. Budget-conscious solutions spending decisions can be prioritized to include mobile, cloud, personalization, and more if they make sense for the brand.
A sensible strategy is one that addresses ongoing digital disruption while staying true to the omni-channel commitment. I checked in with Ivy Chin, senior VP of e-commerce and omni-channel digital at Belk and Innovative Retail Technologies editorial board member, for her take on forming a digital strategy. Chin suggests identifying a change agent from each functional area to lead the change — someone who has credibility with the team, is passionate about this new vision, and has a strong desire to see the digital transformation be successful. It is important to provide the materials and tools for these change agents to be successful, from identifying business process impacts to developing a communication plan. Chin stresses the importance of developing a change management program with the executives by understanding their interest level, what concerns they may have, and what motivates them, and devising a change management and communication plan specific to each program.
Retailers deal with digital trends differently, and each company’s goal should be to pursue strategies that align with their stage of digital awareness and readiness as well as their corporate objectives. And that starts at the top. To Chin’s point, the leadership team’s all-in mentality around meshing digital and physical retailing is a key driver to omni-channel success.