Retailers Who Lead the Way on Innovation Also Lead the Way In IT
As the lines between digital and physical worlds continue to blur, many retailers are exploring tools to create immersive experiences, gain a competitive edge, improve operational efficiency, and future-proof their business. Technologies, like digital twins – virtual representations that enable retailers to simulate and optimize processes in ways not possible before – and virtual reality (VR) offer differentiated customer experiences and help retailers manage business operations more efficiently. And of course, many are curious to understand how generative AI can bring value to customers and operations.
As retailers adopt these innovative tools, one area they need to prioritize putting resources toward is foundational IT. Innovative IT breeds equally innovative customer experiences, operations and more. Having a strong foundation of IT – including networks -- is necessary for any retailer looking to not only adapt to what is new and exciting but implement the best tools in the industry to maintain efficient, modern and customer-oriented operations.
In storefronts, smart tech, strong IT helps delight shoppers and gives retailers more powerful analytics
Using VR and digital twins are just two innovations companies are adopting to delight customers and create more engaging, efficient digital and physical storefronts. Companies, like Ray-Ban and Nike, are already using VR to offer customers the ability to try on products with via a “magic mirror” and an app. These companies are also able to track valuable analytics with store front digital twins, designing store front layouts and inventory placements based on customer shopping patterns and movement. This capability increases the customers’ positive experience, making them more likely to return. These innovations are made possible with the right IT.
The right IT also helps retailers make sense of large volumes of customer data being generated in stores and digital shopping places. Retailers can leverage generative AI to enhance product recommendations, personalize customer experiences, and streamline inventory management through advanced predictive analytics. Being able to make sense of this data to tailor experiences for customers is what retailers need. Prediction is the key to success in the retail world. Identifying insights from this data to create predictability around things like shopping patterns, demand and traffic flow will enable retailers to make better decisions across operations, from marketing to store layout. Networks themselves can also offer insights to retailers, including indoor location services and customer shopping habits, which can help retailers better manage product and asset locations.
In operations, IT can simplify and save resources
VR and digital twins also demonstrate incredible value in back-office operation. Digital twins are demonstrating their usefulness, for example, in warehouses. If a retailer can create a digital twin of a warehouse, they can then use the digital simulation to test out the best ways to store and manage inventory, instead of doing so with physical products. Beyond the warehouse, digital twins can also be a virtual double of a logistics network that assists with modelling traffic, road layout, and takes road work into account to design the best distribution routes and inventory storage locations.
Retailers who have made the boldest investments in IT are not only able to stay afloat in the constantly evolving areas of customer experience and operations but are leading the way and setting the stage for the future of retail. As modern technology relies on connecting users and devices to the cloud for running applications and accessing data, implementing the right modern IT networking solution using AI-driven operations to perform automation, predictive analytics, and intelligent troubleshooting can greatly benefit retailers by reducing operational complexity and cost, improving the experience for customers and employees, and ultimately, positively impacting business results.
-Jarek Matschey, Head of Retail Practice at Juniper Networks