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DIGITAL TRANSFORMATION
in Retail – A 30 Day Action Plan
Happiest People . Happiest Customers
Contents
© Happiest Minds Technologies Pvt. Ltd. All Rights Reserved2
• Abstract.............................................................................................................................................3
• Digital Transformation – A Brief Introduction....................................................................................3
• Digital Transformation in Retail........................................................................................................3
• Transforming In-Store Experience..................................................................................5
• Marketing.......................................................................................................................5
• Customer Service...........................................................................................................5
• Supply Chain..................................................................................................................5
• Buying............................................................................................................................6
• Challenges........................................................................................................................................6
• Commitment...................................................................................................................6
• Change Management....................................................................................................6
• Technology ....................................................................................................................6
• Complexity .....................................................................................................................6
• Training..........................................................................................................................7
• A 30-day Action Plan .......................................................................................................................7
• A 30-day Action Plan Framework......................................................................................................7
© Happiest Minds Technologies Pvt. Ltd. All Rights Reserved3
Digital Transformation is a conscious movement from point solutions that deliver incremental value to integrated process
and technology solutions that provide transformational outcomes in terms of Customer Experience, Business Efficiency
and/or Business Innovation. Disruptive technologies, such as SMAC, help enterprises get a pragmatic view of the market-
place and gain a new business perspective. They help businesses gather, process and analyze data to glean insights that
can help them understand trends and customer sentiments better and devise more effective experiences and processes.
Today, there’s more to purchase transactions than just the act of selling and paying for products bought. Customers
demand a more convenient shopping experience with more choices, easier access, simpler interfaces, and a wider selec-
tion of relevant offerings. Thus, those with the means to tap data streams for actionable insights have a competitive advan-
tage over others. And this is precisely what digital transformation does - help businesses meet changing customer demands
and cope with changing market conditions.
Digital transformation for retailers is about looking beyond marginal enhancements and rethink processes, creating a
connected engagement enabled by meaningful application of technology. It is not only about customer centricity, agility,
innovation, data intelligence and new value propositions, but also about streamlining processes, reduce costs and improve
efficiencies across the transactional cycle by transforming. With the rules of the game changing, retailers need to rethink
every aspect of their business – from sourcing and pricing strategies to inventory planning, employee training and customer
experience management:
Radical changes in the business landscape demand that enterprises relook their business models, add innovative capabili-
ties and strategize keeping new imperatives in mind. Surviving in a highly competitive marketplace needs more than just the
ability to sell; it calls for evaluation of existing business processes for identifying bottlenecks/loopholes, creation of more
robust frameworks for improving operational efficiency, and more importantly convergence of evolved technologies,
processes and enterprise solutions in the system for delivering transformational customer experience.
With personalization becoming the key to enhancing customer experience, it’s time for retailers to make the shift from
‘customer interaction’ to ‘customer engagement’. Apps and kiosks are replacing elements of traditional shopping experi-
ence, calling for store environments to evolve. Moreover, with an increasing number of customers moving to online
platforms, retailers are trying to cater to their needs by redefining delivery models and enriching shopping experiences
across all touch-points and channels.
What can retailers do today to embrace Digital? A 30 Day Action Plan that sets the focus, is actionable and can bring multiple
functions and units towards focused initiatives that are transformational is the need of the hour!
Abstract
Digital Transformation – A Brief Introduction
Digital Transformation in Retail
© Happiest Minds Technologies Pvt. Ltd. All Rights Reserved4
© Happiest Minds Technologies Pvt. Ltd. All Rights Reserved5
Stores are more than just sales channels today. They are experience centers - extended arms of an enterprise’s
digital touch-points. Organizations, thus, endeavor to integrate innovative digital experiences to ensure a connected
and engaging in-store experience. Digital transformation in-store happens when retailers deliver tailored experienc-
es to customer through a convergence of multiple technologies – for example, analyzing customer preferences
through behavioral analytics, detecting customer location in-store and delivering context-aware, personalized
promotions on mobile devices.
Another example is using kiosks and interactive digital displays to help customers browse through the entire cata-
logue and choose the items they need, especially apparels, ensuring superior experience for customers.
In addition, enabling store associates through assisted selling and advisory tools where store associates are armed
with customer information and insights, is the need of the day, be it to save a sale from showrooming or to enable
customer retention and loyalty.
• Transforming In-Store Experience
Retail organizations are now taking advantage of investments they had made earlier to understand specific market
segments and geographies better. Some are even exploring social media to get a better understanding of customer
behavior. Companies are getting better at automating their marketing activities, campaigns and promoting their prod-
ucts through digital media.
Transforming the Retail marketing function is essentially about understanding the customer in greater detail through
analytics and devising targeted and personalized engagement strategies across multiple traditional and digital
marketing channels. The challenge, however, lies in attributing the marketing spend and outcome across digital and
traditional channels.
• Marketing
The most prominent characteristic and critical aspect of the digital age is not the shift in technology but the shift in
customer behavior. Different customers prefer using multiple touch-points for resolving issues, expecting an integrat-
ed and seamless experience. New-age commerce demands that traditional and digital channels complement each
other and be used simultaneously to enrich customer experience.
Thus, retailers are moving from being reactive to being proactive, adopting an Omni-channel approach to enable all
touch-points to work in tandem and in multiple ways to support customers – social, online and mobile, in addition to
traditional IVR. Also, owing to the ever-increase capabilities of monitoring devices, organizations are looking to
improve customer service through connected devices, new reliability models and predictive maintenance. CRM
systems of the past are transforming to new age CRM solutions that provide not only information but also insights
and 360-degree view of customer transactions, interactions and social engagements.
• Customer Service
Every organization needs a flexible and transparent supply chain. But most companies lack visibility at critical points
in the supply chain, leading to considerable over or underselling during peak seasons. Technology enables accurate
and timely view of stock across all nodes, increasing efficiency, reducing costs and mitigating risks.
Digital transformation, through complete visibility across the supply chain, changes the value delivery process by
creating unique opportunities. A digital supply chain ensures superior collaboration and extensive information availa-
bility, resulting in improved agility, reliability and effectiveness. RFID, BLE and other emerging IoT sensors have
been instrumental in enabling such digital supply chains.
• Supply Chain
© Happiest Minds Technologies Pvt. Ltd. All Rights Reserved6
Digital transformation can drive customer satisfaction and retention by providing customers with products and services they
require, whenever and wherever they need them. Mobile apps, location-based services, big data and analytics have
brought about a significant change in the way retailers do business. These transformational forces have not only helped
retailers reach a larger audience, but have also helped them create a differentiated value proposition.
The road to digital transformation, however, is rife with challenges.
Challenges
Accuracy is an imperative both while procuring/replenishing and fulfilling orders, making monitoring such processes
critical. Technologies like RFID, IoT, etc. help retailers keep a tab on them through real-time updates of on-hand,
on-order, in-transit and open-to-buy products. Such technologies also help retailers extract insights on customer
demands across channels, including customer product ratings and social sentiments, ensuring that channel and
micro-specific forecasts yield better results.
Since the goal is to get as close to personalized assortments as possible, to address specific demands, many retail-
ers now try to involve customers in the buying process. They enable buyers and category managers with tools that
can help them do their job on-the-go and collaborate more with end-users, so they can bring in first-hand insights on
tastes and trends.
• Buying
In most cases, although initiatives are under-way, they are not transformational enough - they just end up being a
new website or a mobile app at the most, which marginally improves customer experience. Also, the commitment to
truly bring digital transformation in an enterprise goes beyond just ideation. It requires leadership level focus, an
assurance of budget and resources, and an ability to pursue the initiative with conviction.
• Commitment
Most departments act on their own accord, defining and managing their touch-points differently and adhering to
different metrics and standards. Transformation threatens the conventional way of doing things, provoking a self-de-
fense mechanism that resists change. Also, changes in roles causes challenges in taking ownership and proving
ROI. Thus, there is always is certain reluctance and skepticism associated with adopting new ways of working.
• Change Management
For a complete transformation to be successful, the foundation has to be strong – be it single view of customer,
orders, inventory, products, etc. or a scalable architecture to support dynamic changes in business. In addition, there
is also the challenge of choosing the right technologies that can really add value, rather than jumping on the band-
wagon. At the same time, it is necessary to take measured risks to understand what new technologies and infrastruc-
ture would work best for an organization.
• Technology
Digital transformation is too critical and complex for retailers to handle all by themselves. But while outsourcing can
ease the burden considerably, retailers must choose their partners carefully - it takes partnership of a different kind
to co-create meaningful digital journeys for all stakeholders – customers and enterprise entities. The need is to
unearth those digital moments in a customer’s experience or a retailer’s operational journey to create transformation-
al impact.
• Complexity
© Happiest Minds Technologies Pvt. Ltd. All Rights Reserved7
Despite such challenges, retailers must embark on their journey soon, lest they lose the race. Going digital is the only way
to succeed in the digital age. Technology can give a head start and help drive business value. A self-assessment can also
help identify areas retailers must focus on today to become digital masters of tomorrow.
Digital transformation must be a strategic initiative that cuts across functions and enables them to communicate, evangelize
and ideate together. Since transformation brings about considerable changes, retailers must have a change management
strategy in place. They must build partnerships, so they can leverage the strength of their partners to expedite transforma-
tion and establish thought leadership.
A 30-day Action Plan
A 30-day Action Plan Framework
Educating teams on the value of and empowering them through digital transformation is difficult, since all employees
are not on the same digital page. Despite the abundance of data, companies lack both infrastructure and skilled
resources to extract actionable insights from the information flowing in.
• Training
Re-think silos
Re-imagine
processes
and experiences
Re-design around
and beyond
existing constraints
Re-in force
the outcomes
Rollout!
Identify partners who are nimble and are not afraid of change themselves
Go beyond the constraints and identify 2-3 plausible DT stories to execute a Proof of Concept/
closed loop experiment
Build the business case for just those 1 or 2 truly transformational initiatives
What are you waiting for? Execute, Measure, Improve and Roll-out!
For a clear strategic focus, Chief Digital Officer becomes a critical stakeholder to get on-board.
Or Setup a focused Digital Transformation (DT) team with representation from all functions.
Identify overall DT champion and DT evangelists in every function
Start with no constraints and crowd-storm/ brainstorm
Re-imagine existing customer journeys and unearth the hidden digital moments – mobile,
in-store, on the web
Rethink existing business processes to discover and unlock inefficiencies that can be
eliminated through automation or digital enablement
Add the constraints – Technology, Infrastructure, Data/Information, Investments, Security,
Privacy, 3rd Party, Legal etc.
Gather insights on what you need and what you have?
Author
Happiest Minds has a sharp focus on enabling Digital Transformation for customers by delivering a Smart, Secure
and Connected experience through disruptive technologies: mobility, big data analytics, security, cloud computing, social
com-puting, M2M/IoT, Unified Communications, etc. Enterprises are embracing these technologies to implement Omni-
channel strategies, manage structured & unstructured data and make real time decisions based on actionable
insights, while ensuring security for data and infrastructure. Happiest Minds also offers high degree of skills, IPs and
domain expertise across a set of focused areas that include IT Services, Product Engineering Services, Infrastructure
Management, Securi-ty, Testing and Consulting.
Headquartered in Bangalore, India, Happiest Minds has operations in the US, UK, Singapore and Australia. It secured a
$52.5 million Series-A funding led by Canaan Partners, Intel Capital and Ashok Soota.
About Happiest Minds
© 2015 Happiest Minds. All Rights Reserved.
E-mail: Business@happiestminds.com
Visit us: www.happiestminds.com
Follow us on
© Happiest Minds Technologies Pvt. Ltd. All Rights Reserved8
This document is an exclusive property of Happiest Minds Technologies Pvt. Ltd.
Anitha has 10 years of experience in the IT industry on Digital Transformation Strategy, Consult-
ing and Thought leadership. Her expertise and interest lies in enabling Retail organizations build
transformational Digital Commerce and Omnichannel Business Capabilities leveraging multiple
technology levers.
Anitha Rajagopalan

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Digital Transformation in Retail

  • 1. DIGITAL TRANSFORMATION in Retail – A 30 Day Action Plan Happiest People . Happiest Customers
  • 2. Contents © Happiest Minds Technologies Pvt. Ltd. All Rights Reserved2 • Abstract.............................................................................................................................................3 • Digital Transformation – A Brief Introduction....................................................................................3 • Digital Transformation in Retail........................................................................................................3 • Transforming In-Store Experience..................................................................................5 • Marketing.......................................................................................................................5 • Customer Service...........................................................................................................5 • Supply Chain..................................................................................................................5 • Buying............................................................................................................................6 • Challenges........................................................................................................................................6 • Commitment...................................................................................................................6 • Change Management....................................................................................................6 • Technology ....................................................................................................................6 • Complexity .....................................................................................................................6 • Training..........................................................................................................................7 • A 30-day Action Plan .......................................................................................................................7 • A 30-day Action Plan Framework......................................................................................................7
  • 3. © Happiest Minds Technologies Pvt. Ltd. All Rights Reserved3 Digital Transformation is a conscious movement from point solutions that deliver incremental value to integrated process and technology solutions that provide transformational outcomes in terms of Customer Experience, Business Efficiency and/or Business Innovation. Disruptive technologies, such as SMAC, help enterprises get a pragmatic view of the market- place and gain a new business perspective. They help businesses gather, process and analyze data to glean insights that can help them understand trends and customer sentiments better and devise more effective experiences and processes. Today, there’s more to purchase transactions than just the act of selling and paying for products bought. Customers demand a more convenient shopping experience with more choices, easier access, simpler interfaces, and a wider selec- tion of relevant offerings. Thus, those with the means to tap data streams for actionable insights have a competitive advan- tage over others. And this is precisely what digital transformation does - help businesses meet changing customer demands and cope with changing market conditions. Digital transformation for retailers is about looking beyond marginal enhancements and rethink processes, creating a connected engagement enabled by meaningful application of technology. It is not only about customer centricity, agility, innovation, data intelligence and new value propositions, but also about streamlining processes, reduce costs and improve efficiencies across the transactional cycle by transforming. With the rules of the game changing, retailers need to rethink every aspect of their business – from sourcing and pricing strategies to inventory planning, employee training and customer experience management: Radical changes in the business landscape demand that enterprises relook their business models, add innovative capabili- ties and strategize keeping new imperatives in mind. Surviving in a highly competitive marketplace needs more than just the ability to sell; it calls for evaluation of existing business processes for identifying bottlenecks/loopholes, creation of more robust frameworks for improving operational efficiency, and more importantly convergence of evolved technologies, processes and enterprise solutions in the system for delivering transformational customer experience. With personalization becoming the key to enhancing customer experience, it’s time for retailers to make the shift from ‘customer interaction’ to ‘customer engagement’. Apps and kiosks are replacing elements of traditional shopping experi- ence, calling for store environments to evolve. Moreover, with an increasing number of customers moving to online platforms, retailers are trying to cater to their needs by redefining delivery models and enriching shopping experiences across all touch-points and channels. What can retailers do today to embrace Digital? A 30 Day Action Plan that sets the focus, is actionable and can bring multiple functions and units towards focused initiatives that are transformational is the need of the hour! Abstract Digital Transformation – A Brief Introduction Digital Transformation in Retail
  • 4. © Happiest Minds Technologies Pvt. Ltd. All Rights Reserved4
  • 5. © Happiest Minds Technologies Pvt. Ltd. All Rights Reserved5 Stores are more than just sales channels today. They are experience centers - extended arms of an enterprise’s digital touch-points. Organizations, thus, endeavor to integrate innovative digital experiences to ensure a connected and engaging in-store experience. Digital transformation in-store happens when retailers deliver tailored experienc- es to customer through a convergence of multiple technologies – for example, analyzing customer preferences through behavioral analytics, detecting customer location in-store and delivering context-aware, personalized promotions on mobile devices. Another example is using kiosks and interactive digital displays to help customers browse through the entire cata- logue and choose the items they need, especially apparels, ensuring superior experience for customers. In addition, enabling store associates through assisted selling and advisory tools where store associates are armed with customer information and insights, is the need of the day, be it to save a sale from showrooming or to enable customer retention and loyalty. • Transforming In-Store Experience Retail organizations are now taking advantage of investments they had made earlier to understand specific market segments and geographies better. Some are even exploring social media to get a better understanding of customer behavior. Companies are getting better at automating their marketing activities, campaigns and promoting their prod- ucts through digital media. Transforming the Retail marketing function is essentially about understanding the customer in greater detail through analytics and devising targeted and personalized engagement strategies across multiple traditional and digital marketing channels. The challenge, however, lies in attributing the marketing spend and outcome across digital and traditional channels. • Marketing The most prominent characteristic and critical aspect of the digital age is not the shift in technology but the shift in customer behavior. Different customers prefer using multiple touch-points for resolving issues, expecting an integrat- ed and seamless experience. New-age commerce demands that traditional and digital channels complement each other and be used simultaneously to enrich customer experience. Thus, retailers are moving from being reactive to being proactive, adopting an Omni-channel approach to enable all touch-points to work in tandem and in multiple ways to support customers – social, online and mobile, in addition to traditional IVR. Also, owing to the ever-increase capabilities of monitoring devices, organizations are looking to improve customer service through connected devices, new reliability models and predictive maintenance. CRM systems of the past are transforming to new age CRM solutions that provide not only information but also insights and 360-degree view of customer transactions, interactions and social engagements. • Customer Service Every organization needs a flexible and transparent supply chain. But most companies lack visibility at critical points in the supply chain, leading to considerable over or underselling during peak seasons. Technology enables accurate and timely view of stock across all nodes, increasing efficiency, reducing costs and mitigating risks. Digital transformation, through complete visibility across the supply chain, changes the value delivery process by creating unique opportunities. A digital supply chain ensures superior collaboration and extensive information availa- bility, resulting in improved agility, reliability and effectiveness. RFID, BLE and other emerging IoT sensors have been instrumental in enabling such digital supply chains. • Supply Chain
  • 6. © Happiest Minds Technologies Pvt. Ltd. All Rights Reserved6 Digital transformation can drive customer satisfaction and retention by providing customers with products and services they require, whenever and wherever they need them. Mobile apps, location-based services, big data and analytics have brought about a significant change in the way retailers do business. These transformational forces have not only helped retailers reach a larger audience, but have also helped them create a differentiated value proposition. The road to digital transformation, however, is rife with challenges. Challenges Accuracy is an imperative both while procuring/replenishing and fulfilling orders, making monitoring such processes critical. Technologies like RFID, IoT, etc. help retailers keep a tab on them through real-time updates of on-hand, on-order, in-transit and open-to-buy products. Such technologies also help retailers extract insights on customer demands across channels, including customer product ratings and social sentiments, ensuring that channel and micro-specific forecasts yield better results. Since the goal is to get as close to personalized assortments as possible, to address specific demands, many retail- ers now try to involve customers in the buying process. They enable buyers and category managers with tools that can help them do their job on-the-go and collaborate more with end-users, so they can bring in first-hand insights on tastes and trends. • Buying In most cases, although initiatives are under-way, they are not transformational enough - they just end up being a new website or a mobile app at the most, which marginally improves customer experience. Also, the commitment to truly bring digital transformation in an enterprise goes beyond just ideation. It requires leadership level focus, an assurance of budget and resources, and an ability to pursue the initiative with conviction. • Commitment Most departments act on their own accord, defining and managing their touch-points differently and adhering to different metrics and standards. Transformation threatens the conventional way of doing things, provoking a self-de- fense mechanism that resists change. Also, changes in roles causes challenges in taking ownership and proving ROI. Thus, there is always is certain reluctance and skepticism associated with adopting new ways of working. • Change Management For a complete transformation to be successful, the foundation has to be strong – be it single view of customer, orders, inventory, products, etc. or a scalable architecture to support dynamic changes in business. In addition, there is also the challenge of choosing the right technologies that can really add value, rather than jumping on the band- wagon. At the same time, it is necessary to take measured risks to understand what new technologies and infrastruc- ture would work best for an organization. • Technology Digital transformation is too critical and complex for retailers to handle all by themselves. But while outsourcing can ease the burden considerably, retailers must choose their partners carefully - it takes partnership of a different kind to co-create meaningful digital journeys for all stakeholders – customers and enterprise entities. The need is to unearth those digital moments in a customer’s experience or a retailer’s operational journey to create transformation- al impact. • Complexity
  • 7. © Happiest Minds Technologies Pvt. Ltd. All Rights Reserved7 Despite such challenges, retailers must embark on their journey soon, lest they lose the race. Going digital is the only way to succeed in the digital age. Technology can give a head start and help drive business value. A self-assessment can also help identify areas retailers must focus on today to become digital masters of tomorrow. Digital transformation must be a strategic initiative that cuts across functions and enables them to communicate, evangelize and ideate together. Since transformation brings about considerable changes, retailers must have a change management strategy in place. They must build partnerships, so they can leverage the strength of their partners to expedite transforma- tion and establish thought leadership. A 30-day Action Plan A 30-day Action Plan Framework Educating teams on the value of and empowering them through digital transformation is difficult, since all employees are not on the same digital page. Despite the abundance of data, companies lack both infrastructure and skilled resources to extract actionable insights from the information flowing in. • Training Re-think silos Re-imagine processes and experiences Re-design around and beyond existing constraints Re-in force the outcomes Rollout! Identify partners who are nimble and are not afraid of change themselves Go beyond the constraints and identify 2-3 plausible DT stories to execute a Proof of Concept/ closed loop experiment Build the business case for just those 1 or 2 truly transformational initiatives What are you waiting for? Execute, Measure, Improve and Roll-out! For a clear strategic focus, Chief Digital Officer becomes a critical stakeholder to get on-board. Or Setup a focused Digital Transformation (DT) team with representation from all functions. Identify overall DT champion and DT evangelists in every function Start with no constraints and crowd-storm/ brainstorm Re-imagine existing customer journeys and unearth the hidden digital moments – mobile, in-store, on the web Rethink existing business processes to discover and unlock inefficiencies that can be eliminated through automation or digital enablement Add the constraints – Technology, Infrastructure, Data/Information, Investments, Security, Privacy, 3rd Party, Legal etc. Gather insights on what you need and what you have?
  • 8. Author Happiest Minds has a sharp focus on enabling Digital Transformation for customers by delivering a Smart, Secure and Connected experience through disruptive technologies: mobility, big data analytics, security, cloud computing, social com-puting, M2M/IoT, Unified Communications, etc. Enterprises are embracing these technologies to implement Omni- channel strategies, manage structured & unstructured data and make real time decisions based on actionable insights, while ensuring security for data and infrastructure. Happiest Minds also offers high degree of skills, IPs and domain expertise across a set of focused areas that include IT Services, Product Engineering Services, Infrastructure Management, Securi-ty, Testing and Consulting. Headquartered in Bangalore, India, Happiest Minds has operations in the US, UK, Singapore and Australia. It secured a $52.5 million Series-A funding led by Canaan Partners, Intel Capital and Ashok Soota. About Happiest Minds © 2015 Happiest Minds. All Rights Reserved. E-mail: Business@happiestminds.com Visit us: www.happiestminds.com Follow us on © Happiest Minds Technologies Pvt. Ltd. All Rights Reserved8 This document is an exclusive property of Happiest Minds Technologies Pvt. Ltd. Anitha has 10 years of experience in the IT industry on Digital Transformation Strategy, Consult- ing and Thought leadership. Her expertise and interest lies in enabling Retail organizations build transformational Digital Commerce and Omnichannel Business Capabilities leveraging multiple technology levers. Anitha Rajagopalan