Following is a white paper summary is written in association between Sonata Software & Bill Bishop, Chief Architect, and Co-founder, Brick Meets Click.
Digital innovations are driving consumers to reinvent how they shop and these innovations are coming from both large and small players who are developing new, digitally integrated value chains. The traditional value chain players (producers, CPG brands and retailers) are going to need to enhance their collaboration – especially around digital merchandising – in order to keep up.
Understanding The Race
According to a study by Deloitte, Digital is impacting 31% of F&B sales including a wide range of communication platforms such as apps, websites, and social media. These platforms offer consumers a wide variety of grocery options that make it possible to skip the trip down the aisles entirely for some or all of a household’s purchases.
shopping options are also changing shopper expectations. Today’s shoppers have plenty of alternatives to choose from (Like Big basket, Grofers, Amazon, Flipkart etc.), dynamic exposure to deals and offers and on-demand delivery.
Find out where your shoppers are
Traditional grocery retailers need to understand how their customers are changing where and how they shop for groceries. CPG brands & other suppliers need to learn how consumers are prioritizing channel choice when buying their products (in-store, or blended).
Ask these questions to understand your buyers better:
1. Which digital platforms are your customers using?
2. What channels are they using for different kinds of products?
3. Which digital influences do they pay attention to and/or rely on?
4. What are they looking for and not finding in terms of greater convenience, product information, assortment, and ease of shopping (such as ordering, fulfillment, payment, etc.)?
Once you position each digital innovation on the curve, you’ll have the information you need to decide when to make a significant investment. The current thinking is that it’s time to invest when the innovation is poised to move from Phase 1 to Phase 2, into the early mainstream market. Until then, less than 17% of consumers have adopted the innovation, and it’s still an open question as to whether it will ever reach the mainstream market.
How to race smarter
Today consumers have virtually unlimited choices. Criteria like "better for you," "organic," and "local" play more strongly for many products. As a result, shoppers are becoming more intentional about what they want to buy.
In this race to reinvent grocery shopping, everyone (supermarket retailers, wholesalers, CPG manufacturers, and other suppliers) will need to strengthen their collaboration around digital merchandising to fend off new options competing for the share of consumer mind and wallet – and to be present when consumers are making purchasing decisions. Shoppers are making decisions about where to shop and what to buy outside of a store. This means that if you're not present when they are making those decisions, you won't even have a chance to earn the sale.
So where to start?
Digital merchandising will be an increasingly important strategic skill because it gives the retailer and other players in the ecosystem "the ability to be present, in the context of the moment that a shopper is looking for something.
Here are six key steps to ensure your collaborative digital merchandising triggers a sale.
The New Reality
Consumer reinvention of grocery shopping, driven by digital innovation, is changing the way brands and retailers interact with consumers. They now decide where and how to do their grocery spending based on how well different value chains meet their needs. Not only does this call for a shift to better digital merchandising skills for the players in the traditional value chain, it also means that those players need to work together to serve the customer.
So far, the traditional value chain still does more than 95% of the grocery business, but new digital methods and enhanced collaboration are needed to hold onto that business. The key challenge for the industry moving forward is to change the way we look at the world. We need to look at grocery shopping the way that consumer do – which is increasingly influenced and informed by what they see on their screens, even when they are making in-store purchases.
"Shoppers will determine who wins this race. Retailers and suppliers can go it alone, but in this environment, both will be more successful if they collaborate."
– Bill Bishop, Chief Architect, and Co-founder, Brick Meets Click
You can read the full white paper here: https://bit.ly/2Njw3f1
Digital Transformation is in almost every c-level magazine, blog and whitepaper and executives do not want someone comes in and disrupt their business.
If you want to reap the rewards of the digital revolution, a smooth, easy and positive user experience is vital.
People may not be getting technically proficient, but they have become more comfortable using their smartphones to download music, find the nearest movie theatre or pay for purchases. This raises the bar for user experience.
Today organizations are adopting Mobility, Analytics, and the Internet of Things for Digital. However, solutions, which are not intuitive, responsive and social, does not have a place in the customer’s list. So it becomes appropriate for companies to get into the user experience space.
A UX design can supercharge productivity, add immense value to customer interactions, and help employees love their jobs.
It is extremely important to do an accurate analysis of users, their needs by conducting surveys, workshops to design the UX.
Here are six major criteria for UX design:
Overall UX design should have short navigation steps so users require very few clicks to get the information they want. It should be based on responsive web designs so application maintain full functionality, usability and appeal on different browsers and screens from desktop to laptops to tablets to smartphones.
Once you have applied these criteria it is also important to measure the results, for future course correction. One initial KPI is user adoption rates, which should be higher than 60%.
The great user interface makes the experience better, transactions easier, decision making simple and cuts down the operational costs.
It is the deciding factor for keeping/loosing or successfully engaging a customer.
I have seen many businesses saying they have embarked on digital transformation while in reality, they have just digitized some of their processes.
There is confusion over the two terms, Digitization & Digital Transformation.
The two terms are often used interchangeably when their actual meanings are totally different. In fact, they point to two very different ways of responding to disruptive technology.
To digitize is to convert analog data into digital form. If you scan physical papers into electronic files, converted typewritten text into a digital form, switched from cassette tapes to MP3 files, or moved from old style camera film to digital photos, then you have digitized your data. It also means automation of manual processes like filling any application form by hand to entering data directly on digital media like iPad or web portal.
We now browse the internet for information, take pictures with our smartphones, and send emails from our laptops. This is digitization.
Digitization has made communication faster and easier and opened up new channels for real-time information. In the industrial sectors, digitization has involved the application of new technologies to existing business models to make them operate better.
Digitization is doing what you have always done, but using technology to make it more efficient. The business model does not change, but operational efficiency is improved.
DX is the process of changing existing business models with new digital technologies like APIs, Analytics, Mobility etc.
It goes deeper, creating new strategies and processes which lead to a new and better way of providing value for your customers, doing things faster, easier, and smoother. E.g. moving from snail mail to real-time social media or chatbot.
Businesses can use DX to expand into new markets, offer new products, and appeal to new customers. It is the process of moving to a digital business.
DX also means using the data collected from digitization for actionable insights and then changing the way we do business.
Digital transformation is not a one-time action, but a continuous process. It brings in the new business models and it will change the way business is carried out & it will go a long way in satisfying their end customer, which is the very purpose of being in the business
5G connectivity is set to accelerate the deployment of next generation ubiquitous ultra-high broadband infrastructure. Towards adopting this, intense efforts are on both from the government’s side and the industry.
As a first step , in the last Union Budget, a sum of Rs 270 crores for three years to establish the 5G test bed at IIT Chennai, has also been cleared. Department of Telecommunication, Government of India has also constituted a high powered 5G committee to speed up the adoption, promote Research and Development in 5G technology, products and services, and development of 5G standards, including generation of IPR.
The industry is also building its internal capabilities for 5G deployment of Micro network services, - there are several use cases - to ensure proliferation of affordable 5G services and technologies across all sectors (eg. healthcare, education, transport, utilities, manufacturing) and pan India. Once again, a massive effort to build an inclusive society.
NASSCOM’s ER&D Council Constitutes a Special Interest Group
A SIG has been constituted with a select group to share insights in shaping the direction that Industry and Government from India could adopt. This will be a peer group communication helping us with some possible directions for the future.
The team has proposed to have Public Safety and Security as a primary use case.
The team has proposed to have PoC built on implementing Industry 4.0 for a specific Industry Use case like Smart Factory etc.
The team has finalized AR-VR based e-commerce as another area for the PoC.
ARC takes every opportunity to shout from the rooftops when an owner-operator takes action to help them on their path to digital transformation and operational excellence. Equinor (fka Statoil) is the one operator which ARC has pointed to in the past as being the most progressive in terms of adopting digital technologies, IIoT-enabled solutions and testing/proving these new technologies in the field. One cannot overstate the importance of Equinor’s efforts since it most definitely paves the way for other operators who may be more conservative to adopt and deploy IIoT-enabled solutions to help lower cost per boe, increase production and recovery rates, and improve operational synergies and collaboration among their respective ecosystems – both internal and external. Everyone benefits when oil companies can make a profit at lower oil prices since it costs less to fill up my gas tank, costs airlines less to fuel their jets, and lowers the costs of a number of products manufactured from crude oil derivatives.
Equinor and Microsoft have recently entered into a strategic partnership agreement. As part of the agreement, Equinor will provide industry knowledge and business needs to support Microsoft in developing new solutions for our industry. Microsoft will provide expertise to accelerate Equinor’s IT development and establish new data center regions in Stavanger and in Oslo.
The partnership with Microsoft enables Equinor to shape and accelerate the development of fit for purpose IT services for the energy industry, and secure a faster transition to the cloud. Leveraging the cloud is a prerequisite for the energy industry’s transformation towards a digital future. Secure, reliable and cost-efficient operations are a requirement for Equinor’s adoption of the cloud.
“The rapid technology development creates new opportunities, and the partnership enables our digital journey to deliver more safe, secure and efficient operations. Equinor’s ambition is to become a global digital leader within our industry, and a cloud data center in Norway will simplify and accelerate Equinor’s adoption of the cloud,” says Åshild Hanne Larsen, chief information officer.
The strategic partnership is a seven-year consumption and development agreement in the hundreds of millions of dollars (USD). The agreement will be a platform to identify innovative solutions for the energy industry and further capitalize on common business opportunities. Equinor and Microsoft will secure the desired outcome by committing key industry and technology expertise.
“Equinor has a history of innovation and technology development. Extending our long-standing collaboration with Microsoft enables continued IT-innovation, business growth and furthers our digital ambitions. The strategic partnership will, through cloud services, involve development of the next generation IT workplace, extended business application platforms and mixed reality solutions,” says Åshild Hanne Larsen, chief information officer.
ARC believes that as more owner-operators, independent E&P players, oilfield service providers, and other industry stakeholders push forward on their own digital transformational journeys, the oil & gas market will build up its immunity to price swings and help provide safe, more affordable and viable energy resources to mankind worldwide, especially those living in parts of the world where access to reliable and affordable energy is not a reality today.
About ARC Advisory Group (www.arcweb.com): Founded in 1986, ARC Advisory Group is a Boston based leading technology research and advisory firm for industry and infrastructure.
For further information or to provide feedback on this article, please contact email@example.com
About the Author:
As a senior analyst at ARC, Tim's research primarily focuses on upstream oil & gas automation as well as Digital Oilfield technologies.
Tim's focus areas include upstream oil and gas operational activities in support of the Digital Oilfield including multiphase flow metering, oilfield operations management systems, artificial lift optimization, leak detection systems, drilling optimization, compressor and turbine monitoring & controls, and general field devices such as radar and ultrasonic level measurement devices, and pressure transmitters, among others.
Remember the early 90s, when the mobile phones were not there. The only way to communicate to an out of office employee was landline phone or personal message via a colleague. Today there is no distinction between professional and personal lives as we are always connected.
In the age of Uber, Netflix and Airbnb disrupting traditional industries like Taxis, Video, and Travel; it is a required for organizations that their internal work environment also has a digital disruption.
The workplace is changing at an extraordinary rate. Employees have embraced the latest mobile devices and digital technologies at home. They now expect and demand the same in the office. As the latest digital natives join the workforce, having these kinds of tools and applications in place is more important than ever.
Improving customer service is the end goal of a digital workplace but the first step is to bolster the employee experience. Organizations are creating digital workplace by integrating e-mails, instant messaging, social media tools, and internal applications.
From Baby Boomers to Gen Z, today’s workplace contains a mixture of generations. Everyone has grown up with very different environment, technological and cultural experiences but still, all face similar challenges at work such as information overload, and daily changing technology.
Employees want to be connected across devices and with their colleagues and processes during their workdays
With digital enablement, IT service departments are most benefited with services like virtual desktops, software upgrades, remote support are possible.
As a digital workplace, many organizations are moving from a physical office or cubicle to a more flexible, open workplace that leverages digital technologies like social, mobile, analytics and cloud computing to create a digital workplace that senses and responds to the information needs of employees – anytime, anywhere, and on any device.
By adopting digital workplace, an organization gets diverse benefits:
The potential benefits of digitally enabling both staffs and the business mean that organizations will go a long way in satisfying their end customer, which is the very purpose of being in the business.
Remember as children we used to play more physical games & ground activities like football, cricket and even some local games. As we grew we were more physical in our daily activities which had helped us to be physically fit.
But in last few years digital has changed this picture. My children are glued to iPads, smartphones most of the time. Digital technologies have brought a tremendous shift in the way we spend our daily cores. We order our foods , we call cabs on our smartphones, no banks branch visits are required now as we do most of the financial transactions , and in the age of Whatsapp, nobody uses post to send a news to anyone.
This convenience and comfort have brought a sedentary lifestyle & health issues, but more people are wanting to live a healthier lifestyle without burning a hole in their wallets
Fitness industry is also adopting this digital change.
Some global fitness franchises launched an on-demand streaming services in the USA and UK that lets people access the group’s workouts any time from a computer, tablet or smartphone.
Instead of going to gym now, consumers work out on their own time in their own locations, but trainers and coaches can access their workout data from anywhere, providing quick feedback and tips to guide them along their fitness journey. The exercises are also available in different levels of difficulty: simple, medium and difficult.
Digital devices are more and more playing the role of personal trainer. Anyone who wants to train just needs the right fitness app.
Freeletics Bodyweight app is more than just a training program. They have a community of over 12 million Free Athletes spread all over the globe. The app provides users with a unique social platform that allows Athletes to connect, motivate and inspire one another and achieve and share their progress and fitness goals.
An athletic apparel brand Athos has a full-body suit fitted with tracking sensors connected to an app that shows which muscles are firing and how much an exerciser is exerting himself or herself.
Another company, Focus Motion, is building products that connect with a smartwatch to automatically track motion and give real-time feedback on an exerciser's form or pace.
Equinox was the first chain to partner with Apple when it launched its Healthkit smartphone app in June 2015. The app syncs with members’ wearable technologies to track fitness data, analyze member behavior, and provide users with recommendations, tips and content to improve their fitness routines. The digital coach in Equinox’s mobile app uses artificial intelligence to learn customers’ habits and keep them engaged.
Fitbit, Apple, Garmin, Samsung, Nike & and Adidas are among the major suppliers of digital fitness market.
Fitbit tells you you've completed 80% of your daily 15,000 steps goal. So you walk around the house and make an excuse to go to the shop to achieve your goal.
The Nike came out with Fuelband, a fitness-oriented tech device which helped consumers to set fitness goals, monitor their progression, and compare themselves to others, all with integration into Nike+ community and phone application.
For those who still prefer to visit the gym have been helped by wearable technologies, which give real time feedback on the workouts. From shirts to shoes, wearable technology is now embedded in several types of fitness apparel. Profiles for runs or cycle rides are recorded using the GPS function. The data for distance, speed, duration, calories burnt off and heart rate is captured to support the design of personalized training programs
Modern day gyms are now equipped with workout equipment that are digitized for their clients to get more out of their exercise equipment.Going digital enables the user to choose the level of difficulty of their workout just by pushing some buttons.
Today sensors are inserted into pieces of clothing like socks, shorts, leggings, sports bra, etc. These are designed to improve efficacy of wearable trackers, making them highly discreet and increasingly accurate. The algorithms are mimicking a personal coach, tracking activity and technique while simultaneously picking up clues to predict the possibility of injury.
Holofit uses the virtual reality technology that transports its users from boring reality in a fitness center or hotel gym to real-life destinations, sport events or imaginative worlds. Users get to work out in space or underwater, in the Grand Canyon or in the historic recreation of Babylon, making progress while forgetting they are working out at all. They have also added the gamification and sport competition through its SportPlay application so you can take part in competitions like Tour de France.
Social media platforms like Facebook and photo/video sharing platforms like Instagram are making a trend of posting your fitness efforts and encourage your friends and families to participate.
There is also growing trend of companies offering workplace wellness technologies and programs that are helping achieve better productivity and reduced attrition.
Further this smart data is being used by Insurance industry for wellness and prevention of disease.
Fitness industry has come a long way with digital.
Digital Transformation is in full swing now and adopted by almost all the industries to improve the customer experience. But not everyone is sailing smooth. In fact, a majority of Digital Transformation initiatives face resistance to change and remain in the status quo.
Change is rarely comfortable, for the majority of organizations & employees. It is a normal attitude that when things are going well, why change? Like with any transformation, the lack of interest for change or the fear of consequences puts breaks on the changes you want to bring about.
Status quo comes from various different levels
Let us see how to address these status quo scenarios.
Digital Transformation brings in the new business models and it will change the way business is carried out.
By 2030, demand for fresh water is projected to outpace supply by almost 40 percent. Water utilities are being challenged to operate more efficiently, lower operating costs, and enhance customer satisfaction. Water scarcity has become a universal issue and reducing nonrevenue water has reached critical mass at utilities worldwide. This is particularly true in arid regions that rely on costly desalinated water as their primary source of potable water. The utilities are turning to SCADA to increase operator efficiency, engineering efficiency, and process optimization, while also being more responsive to the needs of their customers.
The latest generation of SCADA platforms provide the capability to collect, sort, and analyze data quickly and display it on executive dashboards. A surge of new hardware and software technologies emerging in the industrial sector are disrupting the way systems are designed and organizations operate. Some of the key disruptive technologies being incorporated into SCADA systems include the cloud, virtualization, mobility, Big Data analytics, and other Industrial Internet of Things (IIoT) technologies.
Coming to IoT and data analytics, there are solution providers that use these platforms to drive change from two directions: gathering and analyzing data to improve production processes, and then using the aggregated data to create solutions with a good business value proposition. One such solution was presented by Ecolab's subsidiary Nalco at the recent ARC Industry Forum in Orlando.
Using Microsoft Azure cloud to enhance its ability to deliver personalized services and drive innovation, Nalco can connect to thousands of sensors in facilities worldwide. Nalco’s 3D TRASAR platform for real-time water monitoring collects and analyzes real-time water usage data to improve efficiency and cut water, energy, and operational costs. The company is taking full advantage of the Microsoft Azure platform, including the Azure IoT Suite, to accelerate water scarcity solutions for customers across multiple industries around the world.
In addition to TRASAR, Ecolab has developed a Water Risk Monetizer that enables companies to quickly and easily assess how water availability and quality could impact their ability to operate, grow and generate profit. Water Risk Monetizer is also built on Microsoft Azure and assess water-related risks at a site and enterprise level. The tool can help end users make a better business case for proactive water management strategies and prioritize locations for investment based on water scarcity risk. In short, it helps customers understand the full value of water to their operation.
Microsoft recently used the Water Risk Monetizer to help inform strategic water management decisions at its data center in San Antonio, Texas. The data center is located within the Leon Creek Watershed, an extremely water-stressed region which also presents water quality issues due to flooding, storms and stream bank erosion. Data from the Water Risk Monetizer revealed that the risk-adjusted value of Microsoft’s water use at this data center was more than 11 times greater than the current water bill presented by the San Antonio Water System. The numbers made the business case. Microsoft installed Nalco’s TRASAR, which enabled the plant to reliably use recycled water instead of potable water, saving Microsoft more than $140,000 in water costs and avoiding the use of 58.3 million gallons of potable water per year.
At the foundation level i.e the field device level, flow and level measurement devices, mainly ultrasonic flowmeters, are employed in the water & waste water industry to measure flow. Connecting the smart flowmeters with IoT is helping both industrial and commercial owners to track water usage, control quality of water and reduce costs to large extent. Data from these smart meters is sent to the controller, which is then sent to the cloud for further actions. Access to the cloud data via apps enables users to switch on/off the valve and track wastage as well as over consumption.
The residential real estate industry was built upon personal relations and contacts. Knowing the trustworthy estate agent personally, was more comfortable for buyers to make investments.
Today the scenario is changing. Several online estate agencies have been set up, which allow owners to buy and sell properties digitally.
At every step in the process of finding, visiting and buying a home, property managers are now focused on enhancing the customer experience with help of digital technologies.
Digital technologies are used for real estate portals, to find a trusted agent, view potential properties and invest as required.
Some property managers allow their agents to shoot, edit and upload video footage of their properties using their mobile devices. This resulted in the increase in reach and quick selling.
Digitization can help you increase your reach from a bunch of agents and investors to thousands of individuals who have interests in purchase and sale of Real Estate.
Digital has come into real estate as well:
99Acres.com to rent or check out the property before buying.
From the buying or selling when we come to occupied properties, digital technologies are used for the betterment of occupants.
From living rooms to the yard, we are embracing the digital technologies which are helping the booming real estate industry.
A few years ago, the impact of digitization was only established in top industries like Banking, Insurance, and Retail. Now times have changed – the recruitment industry is also adopting digital transformation.
Everyone is a candidate at some point in their journey. Whether you are an employer or a candidate searching for a job, the digital transformation is helping the recruitment industry to implement smarter hiring strategies.
Recruiters are the brand ambassadors of a company as they are the first people with whom a candidate interacts. But getting the right people with the right skills, at the right price, has been a long-running headache for recruitment teams.
It’s a competitive marketplace for talent, with demand for skilled labor far exceeding the supply of qualified candidates actively looking. This makes it more important need for recruiters, to master new digital techniques to find, reach and engage right skilled potential candidates.
Candidates seeking jobs in the market are also now tech-savvy and expect fast and easy application processes and communication. Their behaviors and preferences are changing. Power has transferred from recruiter to candidate.
There are multiple ways digital can help:
Assess the digital footprint of the candidate: Recruiters can use this data to get important insights into the skills of potential candidates. Correlations between social media profiles can reveal important aspects such as interests and hobbies, as well as an overview of the candidate’s personality. How suitable is the candidate to an organization’s culture can be assessed based on her/his social media sharing habits on subjects like gender, age, race, and politics.
Online language/skill assessment: It is one of the easiest ways for companies to filter through the pool of candidates efficiently. Recruiters can ensure the quality of their hires via psychometric and other tests.
Online job portals: Monster, Glassdoor, Indeed, Naukri and TimesJobs have helped in reaching out to candidates across different geographies and industries. They have also helped in building good candidate pipelines for recruiters. LinkedIn has started this revolution long back and has the credibility of companies as well as candidates equally.
Advantages of Digital Transformation in Recruitment:
Digital is helping to convert the chaos of recruiting into “Smart Recruiting”.