Digital Retail Africa 2023 hosted by IT News Africa - Brendan Cuthbertson speaks on Digital Transformation in Retail- What Lies Ahead? at the Digital Retail Africa 2023 conference. #retailtech #ecommerce #customerexperience #onlineshopping

1. Brendan Cuthbertson
Head of Private Sector Sales Cisco
January 2023
Digital Transformation in Retail
What Lies Ahead?

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What is going on in Retail?
Online growth – here to stay
• Last mile delivery services, moving to autonomous and new
partnerships
• Stores becoming ecommerce fulfilment points
• Reverse logistics
• New automated DC’s
• 24x7 assisted online selling
Digitization & Innovation - Accelerating
• Personalized seamless cross channel and in-store experiences
• Capturing & leveraging Data from sensors
• 65% of enterprises will require indoor location asset tracking by 2023
(Gartner)
• Adoption of automation (IFTTT, Edge compute & analytics from sensors and
feedback via signage/ESL)
• Transparency from Edge to Cloud (Full Stack Observability)
• AI marketing, using customer-facing chatbots and virtual assistants
Physical stores – new roles
• Number of Connected devices in stores growing exponentially,
combined with Transition to Cloud leads to infrastructure dependency
• Blended Retail - emergence of unexpected retail combinations
• Rise of self checkout  increase of Fraud & Theft
(65% of shoppers use self-checkout, vs 35% before 2020)
• Monitoring & adapting to patterns, behavior in real time
• Getting ready to compete (against Amazon Go) AI, robotics, IoT, and
extended reality is enabling retailers to bring the convenience of online
shopping to offline shops
Sustainability
• Reverse logistics, waste management, local sourcing
• Customers want to see data on the environmental impact.
• Transparency and metrics are crucial
• offer customers the option to choose sustainability
• >40% of consumers will pay more for products that support
sustainability and align with fair trade practices
• 60+% customers buying products that will last longer
Data
• Customer tracking will become trust based
• Only 33% of consumers believe companies use personal data responsibly (Forbes)
• Coalition – data sharing across Retailers generates better insights into customer
preferences
• The rise of IoT and edge devices has caught the attention of hackers
• Data Management & Security (IoT, analytics, availability, compliance, ethics, etc.)
• Data Sovereignty + National Critical Infrastructure

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What do shoppers want from Retailers?
Convenience & instant gratification
Selection & choice
High-quality customer service
Feel good by shopping ‘Green’
Source: Capgemini 2022 consumer behavior tracker for the Consumer Products and Retail industries
Personal recommendations
57% of people say brands have one
shot to impress them, or they won’t
use it again.
The solution? Smarter technology that
pre-empts problems and threats

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From the traditional 4 P’s push model To the 4 new P’s enable ‘Retail Reflexes’
1. Personalization enabled by contextual data What
2. Prediction AI, ML and new algorithms When
3. Precision multi-data sensor fusion Where
4. Process automation programmable Retail edge How to respond
Digitization in Retail

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Here is a video of a retailer using technology to
create awareness and hype around their brand

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What are the leaders doing?
Next best action models being applied in
store are evolving to
Next Best Conversation models

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What are the leaders doing?
Next best action models being applied in
store are evolving to
Next Best Conversation models
Examples from the book:
Sense & Respond
1. Create a ‘two-way-conversation’
2. Focus on end results not products
3. Embrace change
4. Encourage collaboration
5. Stimulate learning
Real-time contextually relevant interaction with customers
(‘sense & respond’ API-platform)

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What are the leaders doing?
Walmart patents a connected
shopping cart that can measure
your emotional state, heart rate,
stress levels and even how fast
you are moving through the store
Amazon has filed a patent for
"Voice-based determination of
physical and emotional
characteristics of users”
Next best action models (starting to be)
applied in store are evolving to
Next Best Conversation models
Examples from the book:
Sense & Respond
1. Create a ‘two-way-conversation’
2. Focus on end results not products
3. Embrace change
4. Encourage collaboration
5. Stimulate learning
Real-time contextually relevant interaction with customers
(‘sense & respond’ API-platform)

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• We see Cisco as your company’s nervous system that
• Connects the Edge with the Cloud
• Enabling Corporate Reflexes at the Edge
o Sense (sensors, cameras, wifi devices)
o Analyse (AI, ML & Analytics using Edge Compute)
o Respond (Displays, Signs, Sounds, Mobile & Actuators)
• Allowing, companies to Learn & Adapt ‘on the fly’
• With Enterprise grade end-to-end Security
• You need the right Partners
Bringing Retail to life

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Viana™ People Counting
Monitor traffic capacity in your physical spaces

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promote
a SKU
target individual
customers
contextualize
an offer
customize
an offer
anticipate
a need
Customer centric
Data-driven
Retailing
Digital Capabilities
Supply Chain
Retail
Operations
Customer
Experience
Store
Online
3G
Individualized
pricing
Personalized messaging
Coupons
Click & collect
Crowd logistics
Instant
delivery
Contextualized
recommendations
& offerings
Seamless brand experience
Mobile app
Indoor Navigation
CRM
Video
Wireless
CMX
Big Data Analytics
Cloud
Fog computing
Pick-up points
Smart Lockers
Connected Staff
Application Centric
Unified access
Behavioral data analytics
Kiosks
Signage
Real-time
data analytics
Secure mobile payment
Real-time inventory
‘e-butlers’
Mobile Payment
Bitcoin Payment
Multi-screen
content
Flexible order
fulfilment
Semantic search
Single view of the customer
Cross-touchpoint tracking
WFM
T&A
Delivery scheme
Dynamic trip
optimization
Anticipatory
logistics
Customized products Gamification
Unattended AI
merchandising
Free-Wifi
most
leaders
innovators
Separate
channels
‘omni-channel’
integration
Network as
The Platform
Generic products
Stamps
Shopping list
Discount
Flyers
Personalized
shopping process
Return to store
Product availability
In store on web page
Book appointment
for advice in store
Personalized
support
Personalized fulfillment
Connected services
IP/CCTV
4G
External APIs
VR Shopping
UX is no UI
AB Store Testing
Blockchain provenance
Li-Fi
IoT Store Sensors
Bots
Product-aaS
ML Stock Replenishment
NPS measured CX
Frictionless Payment
Buy in-store
fulfill on-line
In-store robots
Smart Labelling
AI Targeted Ads
Smart Changing
Rooms
Robotic
Delivery
Clienteling Apps
Customer emotion
analytics
Smart Shelves
Smart Buildings
Voice Order at Home
1hr delivery
Store NFV
CCTV/Video
Analytics
AR
Wearable
Compute
IoT post-sale
Enable
Differentiate
Define
Conversational UI
The availability of Digital Capabilities is dependent on the Network (as a platform)

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*Source: Dell’Oro, Omdia, Synergy
Wireless LAN
DC Switching
(managed)
SD-Branch
Routing
Campus
Switching
(managed)
SP Core +
Edge Routing
Voice
LAN
Switching
(managed)
Cloud and
Network
Edge
Security
Telepresence
#1 in market
share
It’s why we serve 98% of
the Fortune 500.

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Cisco Full Stack Observability
‘We used to be a paramedic, now
we are a brain surgeon.’
- Executive Waitrose
Actual customer case

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What does the Store of the Future look like?
Mall of the Emirates and Cisco collaborate to
create the
‘store of the future’

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Into the Future
AI
Blockchai
n
Quantum LEO
Networking
Metaverse
/VR
Sustainability

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ChatGPT is a chatbot launched by OpenAI in November
2022
ChatGPT interacts with the user in a conversational way.
The dialogue format makes it possible for ChatGPT to
answer follow up questions, admit its mistakes, challenge
incorrect premises, and reject inappropriate requests
In closing
How many of you have heard of or used Chat GPT?

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Some examples

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So back to the 4 new P’s & how they enabled ‘Retail
Reflexes’

23. Thank you