The Future of Retail is Here: A Deep Dive into POS, AI, and Running a Successful Agency

Today, I had the pleasure of speaking with Jared Smith, the CEO of Kitestring Technical Services, right here in Bentonville, Arkansas. Jared's a fascinating guy – he actually has a PhD in physical chemistry from UC Berkeley, but for the past 12 years, he's been at the helm of Kitestring, a thriving 150-person professional services firm specializing in retail technology.? We had a wide-ranging discussion about everything from the evolution of point-of-sale (POS) systems to the potential of AI in retail and even touched upon the importance of self-care for entrepreneurs.

For those unfamiliar, POS systems are the heart of retail operations. They're the systems that process transactions, count inventory, and even play a role in customer engagement through loyalty programs and targeted promotions.? Jared's deep expertise in this area, particularly with his company's history rooted in POS development, made for a captivating conversation.

The Ever-Evolving Landscape of POS Technology

Our conversation started with the evolution of POS, a topic close to both of our hearts. We reminisced about being early adopters of Scan and Go technology at Walmart and how far it's come. Remember the days of tiny barcodes on produce that would trip up the system? Thankfully, those days are largely gone, thanks to a combination of improved technology and savvier shoppers.?

We both agreed that the future of in-store checkout likely lies in a blend of self-checkout kiosks and traditional cashier-assisted lanes. The key is to provide a seamless and efficient experience for the customer, regardless of their chosen method.? Jared highlighted the potential of technologies like RFID (Radio-Frequency Identification) and computer vision to revolutionize checkout. Imagine a world where you simply walk through a checkout with your cart, and the system automatically identifies and rings up each item using a combination of RFID tags and cameras. No more individual scanning, no more waiting in line – just grab and go!

Of course, there are challenges to overcome. RFID signals can be disrupted by liquids and metals, while computer vision struggles with obscured items in a packed shopping cart.? However, Jared believes that a hybrid approach, combining these technologies with sophisticated algorithms that predict missing items based on weight and typical cart contents, could be a game-changer.

Omnichannel Retail and the Blurring Lines of Commerce

The conversation then shifted to omnichannel retail, a hot topic in the industry.? Omnichannel represents the convergence of online and offline shopping experiences.? Think buying online and picking up in-store (BOPUS), ordering groceries from your phone and having them delivered to your car, or even receiving a purchase made online from a store associate who happens to live along your route home.?

Jared pointed out that Walmart's early experiments with BOPUS, like the Alaskan Bush Pilot Project in the 90s, predate the widespread adoption of the internet.? This program, designed to deliver goods to remote areas via airplane, was a testament to Walmart's forward-thinking approach and a precursor to the omnichannel strategies we see today.

This seamless integration of online and offline channels presents unique challenges, particularly when it comes to inventory management.? When does an online sale become a store sale? If a customer purchases an item online but picks it up in-store, how does that impact inventory tracking and sales figures? These are questions retailers are grappling with as they navigate the evolving retail landscape.

The Promise and Peril of AI in Retail

No conversation about the future of retail would be complete without addressing the elephant in the room – Artificial Intelligence.? While AI holds immense potential to transform the retail industry, from personalized shopping experiences to optimized supply chains, it's also surrounded by hype and uncertainty.

Jared emphasized the importance of approaching AI with a healthy dose of caution. Retailers, particularly in the mission-critical world of POS, should be wary of jumping on every AI bandwagon. Implementing untested technologies can be disruptive and costly, especially when dealing with systems as vital as POS.

However, this doesn't mean retailers should ignore AI altogether.? Jared believes that AI can significantly enhance operational efficiency, particularly for professional services firms like Kitestring.? He shared a fascinating study where consultants utilizing AI tools experienced a significant increase in productivity and quality.?

While general-purpose AI tools like ChatGPT have garnered significant attention, Jared sees immense value in specialized AI models trained on specific industry datasets.? Imagine an AI assistant trained on a retailer's historical sales data, customer demographics, and inventory levels. This AI could provide invaluable insights for forecasting demand, optimizing pricing strategies, and even personalizing marketing campaigns.

The Importance of Self-Care for Leaders

As our conversation drew to a close, we shifted gears to a topic near and dear to both of us – the importance of self-care for entrepreneurs.? Running a business, especially one with 150 employees relying on you, can be incredibly stressful.? Jared and I bonded over our shared commitment to physical and mental well-being. We both frequent the same gym, Blake Street House, where we indulge in a combination of cardio, strength training, heat therapy, and yes, even the cold plunge.

While we may jokingly refer to it as "trendy," both of us have experienced the profound impact these practices have on our mental clarity, energy levels, and overall well-being.? Jared emphasized how crucial it is for him to prioritize sleep, exercise, and a healthy diet to manage stress and make sound decisions for his company.? He firmly believes that taking care of himself makes him a better leader and enhances his ability to navigate the complexities of running a successful business.

The Enduring Power of the Agency Model

Our discussion ended with a thought-provoking reflection on the agency model itself.? Despite the allure of the SaaS (Software as a Service) model and the pursuit of "unicorn" startups, Jared remains a staunch advocate for the enduring power of professional services firms.

He highlighted the lower barrier to entry for service-based businesses, where entrepreneurs can often start small, even on the side, and scale gradually.? He shared Mark Cuban's philosophy of "reading the freaking manual" – identifying a need in the market and acquiring the necessary skills to fulfill it, even if it's as simple as mastering a new software API or understanding the intricacies of a specific technology.

Jared believes that the high failure rates often associated with startups, particularly in the software space, are partly due to the pressure for rapid growth and the need for substantial upfront investment.? In contrast, the agency model allows for a more sustainable and iterative approach, where entrepreneurs can bootstrap their businesses, add team members as needed, and focus on delivering exceptional service to their clients.

Key Takeaways and a Vision for the Future

Our conversation with Jared was a refreshing reminder that the future of retail is being shaped not just by cutting-edge technology, but also by the human element – the entrepreneurs, developers, and leaders who are constantly innovating and adapting to the ever-changing demands of the market.

From the evolution of POS systems to the transformative potential of AI and the enduring power of the agency model, Jared's insights provide a valuable roadmap for anyone navigating the exciting and challenging world of retail technology.? As Northwest Arkansas continues to solidify its position as a hub for entrepreneurship and innovation, I'm confident that leaders like Jared will play a pivotal role in shaping the future of this dynamic industry.