Meeting Unique Challenges of Retail Edge

The retail edge is an entirely different environment from traditional enterprise systems. It involves different people, demands, constituencies, applications, and skillsets. Simon Gamble from Mako Networks recently discussed the unique challenges of distributed retail enterprises in Episode 2 of our Utilizing Edge podcast season.

One of the most significant challenges is that the edge has a whole different group of stakeholders who are dependent on its services. As Brian Chambers mentions, Chick-fil-A doesn't have system administrators at the edge and can't deploy them across all of its restaurants to resolve issues. Different connections, solutions, and ways of connecting with different applications back to different motherships are needed for edge computing.

Moreover, franchise groups may have their own desires and wants for the technology being deployed at their edge, which can conflict with the brand's desires. The goal is to avoid a "wild west" environment with different concerns and challenges in every location. Segmentation allows the brand to deploy their standards in the important areas of the network and leaves the rest under the franchisee's control.

Typically, brands want to control point-of-sale and front-of-house networks, while franchise groups want to control back-office networks. Retail stores often have sub-tenants with different IT needs, such as separate pharmacies or coffee shops. Different companies may supply different products to the same store, like different suppliers for dairy and boxed foods.

Choosing technologies that can accommodate these scenarios is essential to avoid painting oneself into a corner. Technologies aimed at an enterprise may not fit the needs of a distributed retail enterprise with different products and needs. The degree of multi-tenancy required at the edge is an interesting aspect that hasn't been explored much yet. Segmentation is valuable, but multi-tenancy is also interesting because it presents different challenges.

Data processing at the edge is growing, and sending data to different locations for processing is becoming more common. Point-of-sale data that was traditionally used for accounting purposes in big retail is now being used for monetization, and retailers can earn revenue from selling this data. Processing video at the edge is also becoming more popular, allowing retailers to analyze customer behavior and make informed decisions about store layout and product placement.

As the price of computing continues to lower, businesses will be able to do more interesting things with their data for both monetization and business improvement. Small companies can benefit from the analysis thanks to the price of compute coming down, and it's making it more efficient for large organizations to make sense of it. Third-party companies are starting to appear to help with data analysis, and outsourcing can often be more efficient and cost-effective.

The use of "free" Wi-Fi and third-party providers is common for location-based services in retail. Segmentation is key, and shared infrastructure can be cost-effective as long as it is secure. Executives should receive summarized data instead of real-time monitoring.

Businesses are changing, and big data pieces are getting bigger. Companies are using edge IT infrastructure to make real profit and improve customer service through partner-based advertising, multiple tenants, loyalty programs, location services, etc.

While some technology is scary, it ultimately has to be helpful and self-repairing. Businesses need to look after their customers and employees to succeed. The intersection of customer experience and privacy is a complex challenge in the digital age. Convenience and fast service are what customers want, but respecting privacy is also important. Finding solutions to respect privacy and meet customer expectations is an ongoing challenge.

In conclusion, the retail edge presents unique challenges that require special purpose solutions. Segmentation is valuable, but multi-tenancy presents different challenges. Data processing at the edge is growing, and businesses are finding innovative ways to use it to make real profit and improve customer service. Watch Utilizing Edge 5x02 Stakeholder Demands at the Retail Edge with Simon Gamble of Mako Networks!