Connectivity is an opportunity, not an expectation

Connectivity is an opportunity, not an expectation

Modern retail businesses naturally span different channels, employ digital technologies and are driven by data. As we increasingly seek to connect everything together, these trends and transformations are underpinned by the network .

But despite its importance, the network is often a topic that many of us tend to forget, overlook or assume. Wi-Fi and connectivity are fundamental expectations in modern life, for both businesses and consumers. Around 20 years ago, commercial Wi-Fi became commonplace for business operations but it was the growth of the smartphone market that really propelled its use for consumers. Back in those times, Wi-Fi was, at first, an innovative competitive advantage that allowed operations to run more smoothly and helped customers stay connected with their busy lifestyles. Fast forward to today, this technology has become a standard necessity. An expectation. The table stakes where we can’t really imagine a world where it didn’t exist.

Yet, despite these expectations, legacy network technology and outdated Wi-Fi policies exist around stores, hotels and public spaces and often fail to meet user expectations. Poor connectivity results in signal drop-outs, frustratingly slow internet speeds and prompts people to go elsewhere.

However, I’m left wondering if we’re thinking about the network in the wrong way. We assume that it’s a necessary operating requirement for doing business, and it is. But what if it’s more than that? What if connectivity presents a genuine growth opportunity and strategic advantage?

The evolving retail landscape

Retail operations are increasingly complex. The modern store operating model must consider elements such as online order picking in-store, connecting in-store colleagues to online customers and enabling the growing trend of retail media networks. Whilst these developments drive business growth, they’re all reliant on reliable, robust connectivity. Additionally, this complexity demands ever-increasing bandwidth to facilitate crucial and demanding data flows, enabling stock operations, unlocking revenue streams and enhancing customer engagement.

We know that connectivity quickly evolved from a ‘nice-to-have’ to a ‘must-have’. It has become a utility, almost as expected as electricity. Connectivity is the silent workhorse: always present, always out of mind,? always on… until it’s not.

When legacy systems are put under the weight of modern demands, it is reasonable for old systems such as outdated Wi-Fi to stumble or even completely collapse. But, for frontline colleagues and customers alike, this network reliance presents the invisible lifeline that enables effective, efficient working and convenient, speedy living.

AI has undoubtedly been a huge topic for many industries in recent times. So, it shouldn’t surprise us that the power of AI can also be applied to optimise and amplify our business-critical networks. So, I was delighted to attend the recent AI in Action event, hosted by Juniper Networks, which inspired me to recognise that it’s dangerous to assume connectivity.

When we assume connectivity, we forget the opportunity cost of poor Wi-Fi, where regular signal dropout or slow speeds aren’t just a momentary glitch but can lead to lost sales, poor experiences, or damage to the brand reputation. Additionally, we disregard the unique strategic value it presents.

The network is far more than just another ‘essential’ technology expense line on a financial report. Wi-Fi should be recognised as a strategic asset and an opportunity to drive revenues and reduce costs.

Musgrave is empowered by its network modernisation

At AI in Action, Musgrave ’s Head of Retail IT Operations, Neil Collins , described how the old network provided a scary and fragile restrictor for the company.

Musgrave is Ireland’s leading food retail, wholesale and foodservice company, including SuperValu and Centra, and recently deployed Juniper Mist? solutions. As a collective of independent retail businesses, the benefit has to be crystal clear for non-technical business owners to get. Furthermore, these retailers have the expectation and assumption that Wi-Fi should just work.

The network modernisation wasn’t just a technical upgrade though. This was a strategic play as the company recognised the role that a modern network can play in driving agility and innovation. Collins claims: "If Musgrave wants to be the disruptor, we're now empowered from a networking perspective to make that happen.” ?He continues: “Or if another retailer comes in and disrupts the market, we have the ability to react in a very timely and fast way."

A panel discussion featuring

But what exactly can modern Wi-Fi enable?

Wi-Fi as an enabler

When we decide not to take Wi-Fi for granted and consider investing in it, it naturally enables fast-paced retail operations and opens up its true potential. Stores transform into intelligent, hyper-connected environments acting as the hub for truly unified commerce. Physical spaces come alive with virtual interactions, aiding customers with instantaneous support and promotions whilst helping colleagues to get the job done, supported by unique insights in real-time and retrospectively. Connectivity underpins the operation and also future innovations, acting as a strategic asset.

Harnessing Wi-Fi as a strategic asset

When we pivot our perspective and start seeing Wi-Fi as a strategic asset, the opportunities it opens are immense.

For example, retail media networks are one of the major opportunities that is exciting many retailers and brands. With modern network technology, you can set up virtual beacon locations and hot spot zones which offer the chance to tailor media opportunities to customers. Imagine the ability to send customers personalised offers on their smartphones based on the products they’re currently looking at. Or perhaps trigger activities on digital screens as specific customers pass by. Yet, this is no longer something to imagine. With a modern network, this can be today's reality, connecting customers and commerce opportunities in real-time.

Empowering store operations is another frontier. Aspects such as mobile checkout and robotics rely on connectivity. Additionally, as we look to increase security and surveillance to minimise theft, the data flows must be rapid and expansive.

But it’s not only operational opportunities. Connectivity can help a customer browse a specific category to explore reviews or accessories. The network could power smart devices, such as AR-enabled mirrors, to help envisage that next great purchase.

Ultimately, it's the merging of digital capabilities, convenience and personalised data, alongside the human engagement of physical shopping that's set to redefine in-store retail experiences.

Finally, we can’t overlook the data opportunity. The network is the crucial conduit and is the pipeline through which the “new oil” (a.k.a. the data) flows. The network is in place to gather operational and customer data and insight, uncovering in-store customer behaviours, preferences and even highlighting trends and operating patterns. This type of intel transforms an ordinary store into a data- and insight-rich treasure chest to continually improve the business.

Conclusion: The network is about connection, so is retail

As we reflect on the shifting landscapes of retail, it’s clear that Wi-Fi can expand upon its utilitarian status. The network becomes a lever to realise multiple elements of the strategy – from innovative customer experiences, to levelling up operational effectiveness and efficiencies through to unlocking new growth opportunities.

At the heart, a network is fundamentally about connecting elements. In the complex modern retail environment, where we strive for customer engagement, connected unified commerce, simplified operations and real-time data-driven actions, connectivity becomes an opportunity, not an expectation.

Dive deeper and explore more about the opportunities of transforming connectivity. Last month, I appeared as part of 瞻博网络 ’ Retail Summit. It’s available to watch on demand, where you’ll discover:

  • How Halfords has transformed the network across its UK stores.
  • Five key themes for boosting your retail business forward.
  • The path to unlocking the network as a strategic enabler.

Watch Juniper Networks’ Retail Summit on demand

Dmitry Sokolov

Retail Digital Transformation | Connected Experiences | Business Development

12 个月

The network is the connective tissue for all store-level digital initiatives. It's also a tremendous source of intelligence on shopper traffic, behavior and engagement with the brand. Simply cannot be overlooked.

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