AI Empowered retail roles: the new competitive advantage?

A Retailer can potentially use Artificial Intelligence (AI) to empower its people to analyse, transact and crucially sell faster and smarter to customers than its competitors. So, what might these jobs look like? Here are some ideas…

“Fixers” – Retailers are always looking to optimise their supply chain costs while improving the customer experience. A key pain point is last mile logistics – the need to offer increasingly timely, flexible delivery of goods to individual customers while maintaining the right economies of scale on distribution to achieve margin. A Fixer – possibly a third-party platform service provider – bids for and delivers instant solutions to solve these daily challenges. Their unique ability to use AI to continually optimise delivery routes and facilitate the sharing of local stock between Retailers (often competitors) to satisfy customer demand 24/7 places them at the heart of the Retail Sector in 2020.

“Instore Experience Trainers” – AI doesn’t innovate by itself; this advantage comes from people teaching or training it to deliver delightful and compelling customer experiences on any channel. An Instore Experience Trainer is someone who spends their working day testing different AI driven experiences from different Sectors and then uses this emotional insight to teach an Artificial Intelligence capability new ways to better engage customers instore – rapid human innovation scaled to differentiate thousands of individual customer interactions with a specific Retailer.

“AI Scanners” – As Artificial Intelligence grows so too does the opportunity for competitors to use it to analyse a Retailer’s offerings for strengths and weaknesses. An AI Scanner is monitoring daily how customers are engaging a Retailer’s Artificial Intelligence to identify such behaviour and its source to enable a proactive response to protect market competitiveness.

If you would like more information about how artificial intelligence can benefit your retail business, leave a reply below or contact me by email.

Artificial Intelligence: The new entertainment experience?

Artificial Intelligence (AI) can radically transform how we interact with a range of services, with Amazon’s Alexa being a notable example growing rapidly in popularity. But in what ways could AI disrupt how we use and consume entertainment? Here are some ideas…

Dynamic film narrative

An AI can use Machine Learning to find hidden insights in a data set to identify remedial action. This capability could be used to enable a film viewer to directly interact with a film’s narrative – pausing the action any time to tell the AI (or even the film’s characters themselves?) how they think and feel about the story. Sentiment that an AI can then analyse in the cloud to learn what an audience wants next that’s fed back to the content producer – greater plot exposition, more of their favourite characters or action. AI-driven blockbuster entertainment that never flops!

Game voice user interface

Natural Language Processing (NLP) enables an AI to understand and respond to spoken and written commands. In terms of a console gaming experience, NLP could transform such experiences. Rather than using a controller to direct and interact with non-player characters within a game, the player could talk to them directly, naturally – a new level of gameplay design that creates truly immersive experiences.

Personalised content maker

AI’s ability to analyse massive amounts of data from potentially any source is enabling deeper, richer forms of Personalisation. Could an AI use this capability to create brand new content (stories, images, even films or music) to an individual’s specific tastes and mood? On demand entertainment that always delights, never gets boring or ends – the perfect TV channel you won’t want to switch off!

If you would like more information about how artificial intelligence can benefit your retail business, leave a reply below or contact me by email.

Intelligent personal assistants: an opportunity for retailers?

Alexa is arguably the tipping point for intelligent personal assistants; with Amazon’s open source approach to sharing its app (“skill”) development capabilities the sky’s the limit for this new, disruptive form of natural language driven customer experience. But what could retailers make of this opportunity? Here are some ideas…

It’s not the hardware but the cloud analytics that matters

Critical to any retailer using an intelligent personal assistant to innovate their brand is that these use cases should primarily focus on the business outcomes from using its cloud analytics capabilities, not the front-end device itself.

A retailer, for example, could use Alexa to provide instore guidance to shoppers to help them find items or make simple queries, physical customer browsing behaviour captured in the cloud that when combined with online experiences enables deeper, more contextual forms of personalisation across all this retailer’s channels.

An opportunity to simplify (and risk of complicating) customer journeys

A unique strength of an intelligent personal assistant is that it has the potential to smartly rationalise customer queries and transactions – an opportunity to turn chatbots into compelling conversational experiences a customer would have a preference for using over engaging a person or using a digital channel.

But there remains a significant user experience design challenge for its natural language driven interface – at what point does the buying journey become too complex for this channel and risks increasing friction for a customer? Any form of customer experience that requires a customer to look at detailed product information or make comparisons between products could be difficult and hard to follow through spoken voice generated content alone.

Alexa’s use of APIs could enable a retailer to combine this channel with its mobile e-commerce site (or in-store tablets) for example to create a seamless, holistic experience where complex information is shared visually driven by a customer’s voice commands and smartly informed by Alexa’s AI.

Bricks and mortar as a truly experiential destination

Perhaps the most exciting thing about Alexa (and intelligent personal assistants in general) is the potential for them to create unique, personalised experiences instore – a direct, deep relationship between a customer and a retailer’s brand. And because its cloud driven this enables interconnectivity (IoT) with other instore technologies such as targeted digital signage, interactive mirrors, social media engagement and mobile point of sale.

If you would like more information about how digital transformation can benefit your retail business, leave a reply below or contact me by email.

Shopping with Artificial Intelligence: The frictionless family customer experience?

With Amazon, Facebook and Google all adopting an open source approach to development of their artificial intelligence (AI) services, what could this innovation mean for a family shopping on the High Street? Here are some ideas…

An end to Saturday morning parking mayhem – having to spend half an hour queuing to get into a shopping centre car park only to find out the only spaces left are on the hundredth floor can be a miserable start (and end) to a Saturday shop for the whole family.

An AI personal assistant could reduce the friction of this inconvenience by reserving a suitable car parking space at the shopping centre in advance, based on the family’s store preferences, accessibility requirements and other factors, like forecast weather. It can then send the reserved space location to the family’s in-car GPS and automatically pay for its ticket. The more an AI can effectively integrate or communicate with other systems the greater the convenience for customers.

No more bored kids looking at their mobiles – the family have spent hours traipsing from store to store failing to be engaged by any of these retail experiences. The kids are just itching to get their phones out to start socialising with their friends, and mum and dad are getting the feeling they are better off buying online.

An AI could transform the friction of this irrelevant customer experience by giving in-store products ‘personality’ –  a product can introduce itself using spoken voice to these customers (via a store branded mobile app for example), talk about its unique selling points and answer potentially any question about its suitability – all personalised using buying and social insights the AI has about the family. The more an AI can effectively apply analytics to create experiential, contextual shopping experiences, the more compelling and delightful bricks and mortar stores become for customers.

Empowered shopping without added wrinkles – So the family have found things they need and discovered lots of things they want, but mum and dad aren’t comfortable with uncontrolled spending across their bulging wallet of bank cards.

An AI could help remove the friction of this uncertainty by acting as a single channel for these customers to manage their disparate bank services in one place, giving on the spot advice about saving and spending to enable the right purchasing decisions and provide a secure, easy to use payment system using customer voice recognition (biometric authentication). The more an AI can create a platform that combines and simplifies a range of complex services; the better mobility customers have on the High Street – experiences that rival anything offered by online retailers.

If you would like more information about how digital transformation can benefit your organisation please contact the Sopra Steria Digital Practice.

 

“More is More”: Why retailers need to get even bigger to succeed in The Digital Age

With Tesco’s recent acquisition of the wholesaler Booker and Sainsbury’s buying the Home Retail Group (parent of Argos) last year, key UK market players are using inorganic growth to rapidly expand their physical retail channels. Yet given the ever-growing threat from digital disruptors like Amazon, and discounters (notably Aldi and Lidl), why would any retailer be looking to increase their bricks and mortar liabilities given this channel could be in long term decline? Here are some ideas…

The IKEA experience – perhaps ironically it is a pre-digital retail format that may offer the right approach to combining the unique strengths of the physical store experience with the choice, availability and (critically) lower prices offered by online channels. IKEA’s gigantic stores across the UK combine a compelling in-store experience where customers can physically explore a range of products with the convenience and price competitiveness of a wholesaler’s warehouse. In comparison, Amazon offers price and choice but it can’t replicate the tactical experience of interacting with a product, nor the instant fulfilment.

Sainsbury’s wants to exploit the supply chain capabilities of Argos – not just in terms of same day fulfilment, but the warehouse capacity its stores carry on the high street – physical retail as an unbeatable customer experience Amazon can’t imitate.

Best of both worlds – Arguably a challenge for both Aldi and Lidl is that their focus on lower prices constrains their ability to innovate their supply chains to deliver personalised, contextual experiences to individual customers. In response, not only can Tesco lever the supply chain capabilities provided by Booker to drive greater efficiencies across its operating model to drive stronger competitive pricing, the additional store capacity it now has available means offering greater customer convenience for its digital offerings (such as hundreds more Click+Collect points across the UK). This will enable Tesco to better blend its digital and physical customer experience together while delivering competitive pricing to rival the discounters.

If you would like more information about how digital transformation can benefit your organisation please contact the Sopra Steria Digital Practice.

The power of NLP: when David becomes Goliath

“Perhaps the biggest threat and opportunity organisations face is Natural Language Processing (NLP); where ever increasingly smart robots simplify transactions for customers.”

Yet the user experience of such intelligent personal assistants can at times feel underwhelming because they lack a sufficiently broad range of services versus other digital channels. Facebook M for example relies upon human trainers to complete more complex customer service tasks requested by users and Alexa utilises ‘skills’ – tailored apps such as Spotify. None of them appear to offer the same level of complete user freedom as using traditional web browsers to access any available content.

“Any organisation regardless of its size able to master NLP can potentially compete in previously unreachable or unscalable markets.”

One way these robots could overcome these limitations is to “learn” how to use NLP to access any digital service through its front-end without the need for any technical integration or human touchpoints. All transactions could then be consumed or simplified into one customer experience accessed by a single AI.

The implication for competitive advantage is that potentially any organisation regardless of its size that can effectively master these “platform on platforms” cloud capabilities will be able to compete in previously unreachable or unscalable markets

“In this “open season” competitive environment, NLP can enable an organisation to transform its relationship with an existing customer and steal new ones from competitors.”

One such service could be an AI that searches and buys the best priced goods from competitors from their own customer-facing channels (without their co-operation or collaboration) so empowering a customer to create their own “perfect basket” free from the constraints of only shopping with one brand. These competitors would still get revenue from these purchases but critically won’t have direct access to this customer relationship or loyalty – NLP is disrupting their competitive advantage by reducing their market power.

In this “open season” competitive environment, where switching costs are practically nil for customers, NLP can enable an organisation to radically transform its relationship with an existing customer and steal new ones from competitors – David becomes Goliath.

If you would like more information about how digital transformation can benefit your organisation please contact the Sopra Steria Digital Practice.

Platforms on Platforms: Innovation by subtraction

One of the competitive advantages of Digital Transformation is that it empowers an organisation to rationalise (or subtract) processes to innovate the customer and employee experience. So as organisations face new economic and competitive challenges how can adopting such capabilities benefit them?

Disruptors like Amazon and Uber have transformed markets using a global approach that removes the need for customers to use locally based, often more expensive incumbent competitors. This advantage is generated by their high volume, fast turnaround digital platform services that enable them to achieve economies of scale that drive greater choice and better prices for customers.

One wonders what further opportunities could emerge for “innovation by subtraction” delivered using Digital Transformation

In response, we have seen incumbents imitate this platform model such as Sainsbury’s intended integration of Grocer and Retail Catalogue propositions through its acquisition of Home Retail Group (that owns Argos). Such a move not only increases the level of choice Sainsbury’s can offer to match Amazon but also offers it other advantages in terms of more efficient logistics and faster deliveries (Argos, like Amazon, offers same day fulfilment).

Yet one wonders what further opportunities could emerge for “innovation by subtraction” delivered using Digital Transformation to disrupt sectors further – not just for engaging more demanding customers, but also to capitalise on increasingly fluid labour market dynamics like the Gig Economy.

Such a model potentially confers a range of co-opetitive benefits including deeper engagement in the Sharing Economy

Could the next disruption be “Platforms on Platforms”? This is where a disruptor creates a digital platform that enables a customer to consume personalised services from any competitor through one channel, effectively removing or subtracting the inconvenience or restrictions of engaging only a single retailer? Price comparison websites, for example, are an established form of the “Platform on Platform” concept, yet they arguably lack the ability for a customer to pick and mix offerings from different retailers into one truly personalised shopping basket.

Such a model potentially confers a range of co-opetitive benefits for contributing retailers – including opportunities to sell to previously unreachable customers, logistics efficiencies and deeper engagement in the Sharing Economy popular with millennials.

Organisations creating “Platforms on Platforms” to further disrupt their sectors or markets could become a key strategic trend over the coming years

Low skilled and temporary workers could also benefit from using a “Platform on Platform” service that pulls together in one place shift opportunities or short term assignments available during the same week (or even day) from different – potentially competing – organisations. Given the anticipated impact of automation, high wage costs (like the National Living Wage in the UK) and greater demands for labour flexibility, such a service could materially benefit these workers in the emerging Digital Economy (while also removing the need for employers to search and procure such flexible people resources independently).

Organisations creating “Platforms on Platforms” to further disrupt their sectors or markets could become a key strategic trend over the coming years. But to master this new form of competitive advantage will require innovation by subtraction using Digital Transformation.

If you would like more information about how digital transformation can benefit your organisation please contact the Sopra Steria Digital Practice.