Retail giants preparing for the upcoming technology revolution in the supermarket sector?
In the rapidly evolving world of retail, change is no longer an option—it's a necessity. As online sales continue to soar, traditional supermarket retailers are rethinking their business models to keep up. This shift could lead retailers to focus more on fulfilling online orders and less on the high street.
One such example is Tesco, a British supermarket chain, which announced plans in 2014 to migrate to a unified global network. The aim was to enable the rapid and effective introduction of new technologies and services. Supermarket giant Morrisons, on the other hand, admitted that its IT infrastructure is antiquated, while Tesco's move signifies a proactive approach to the digital transformation.
The pressure on existing IT systems is immense, especially with the advent of omnichannel strategies. Today's shopper can interact with a retailer through various mediums: in-store, online, 'click and collect', home delivery. Retailers have evolved their use of technology to provide efficient services for customers. However, any breaks or inabilities to interact with a retailer can lead to immediate criticism via social media.
Cindy Truyens, SQS, emphasizes the importance of a stringent quality regime for updating legacy systems and mitigating risks. Change should be approached with the same due diligence for a successful transition, ensuring seamless integration and operation from the start. Senior management should work closely with the IT team to instill confidence in the change process.
Middleware is used by some as an alternative to replacing legacy systems, but it can lead to cracks and glitches. If a legacy system is a key part of the future strategy, it may need to be replaced to prevent obsolescence. Last year, the Currys website struggled with additional demand during Black Friday, causing customers to wait in a virtual queue for up to an hour. Black Friday and Cyber Monday put pressure on infrastructures to deliver a seamless multi-channel experience.
The entry of Amazon into the European grocery market could have a significant impact, aiming to capture a predicted £17bn online grocery market by 2019. Retailers must be mindful of the potential impact of changing legacy systems on supplier and customer relationships. CIOs must prioritize a smooth transition when introducing change to avoid relying on overly complex systems.
In conclusion, the retail landscape is changing at an unprecedented pace, and retailers must adapt to survive. By focusing on seamless integration, prioritizing a smooth transition, and maintaining a stringent quality regime, retailers can navigate the digital age and continue to serve their customers efficiently.
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