Mobile device? Check. In-store wi-fi? Check. Let the benefits of mobility begin…
For most retailers, establishing a wi-fi network is often a tad more difficult than a simple plug and go set-up. But getting a network in place is just the first – and far from the biggest – challenge you’ll face if you want to grab the opportunities offered by in-store mobility.
Make no mistake, it’s well worth all the effort. Wi-fi can be real-time. It can take stock management and customer service to whole new levels. And by plugging the gaps in data accuracy, it’s a massive step towards the holy grail of multichannel retail.
But to benefit from all of this, you need to understand what you’ve already got and know what you want – and then be able to manage it. Whatever your set-up you’re going to be faced with a plethora of apps, devices, access points and terminations that make up your mobile estate. And that’s before you even think about throwing your wi-fi doors open to the public, leading on to even more benefits…
Compared to a fixed infrastructure, wi-fi networks throw up additional challenges around managing components effectively from a central point.
This is a key issue, because you’re going to face a momentous job managing and monitoring all the various devices – iPads, handheld terminals, RFID readers – as well as apps, firmware and access points. For a large organisation this can run into tens of thousands of devices. And if you can’t bring all that together in one place to manage, you’re onto a loser from day one.
Retailers are finding more and more ways of using in-store and distribution centre devices. As a result, more and more are expanding their wi-fi estate. But given that retailers are increasingly carrying business-critical applications over wi-fi devices, you can’t afford to risk the infrastructure integrity.
We’ve rolled out a significant number of wi-fi networks and act as guardians for many of our customers. That means they hand over all the worrying to us and we keep an eye on things remotely, stepping in whenever there’s trouble on the horizon, and fixing it before it affects business.
Assuming you’re up and running with a wi-fi infrastructure, you then need to look at building the management solution. This involves bringing the end user devices into configuration control to provide the following functionality:
• software/firmware distribution
• remote scan to configure (allows devices to have software loaded remotely)
• infrastructure component performance monitoring
• remote management to provide help desk and diagnostic capability
• alerting and reporting
Which brings us back to the statement: “If you can’t measure it, you can’t monitor it and therefore you can’t manage it.” It seems mobility is all about the three Ms.
Posted by Eddie Dodds, Infrastructure services director, BT Expedite & Fresca
We took a dozen senior IT folk from UK retailers with us to NRF. After two days trudging round three aircraft hangars full of technology, here are our joint conclusions below - you can also watch a short video of NRF 2011 Conference highlights:
1. Free Wi-Fi – Most large format outlets have a steel frame which, if you remember your O-level physics, forms a Faraday cage that doesn’t let radio waves in or out. So 3G coverage in retail is very patchy. If retailers want to encourage their customers to use their app in store (see previous post for the rationale), free Wi-Fi makes good business sense. With Wi-Fi, shoppers will always need to pass through the retailer’s landing page which is a terrific opportunity to promote their products. What’s more, the retailer can often get anonymised data about which other sites their customers are visiting. Free Wi-Fi will also be important for 2012 Olympics as foreign visitors hate roaming charges but like Wi-Fi. Burberry already offers it free. Tesco and Food Lion announced at NRF that they were going to. Definitely one for 2011.
2. Cloud Computing – a very confusing area complicated by there being no firm consensus on what it actually is. Long term, big picture, our customers don’t see running data centres as a core activity and welcome discussion about hosting their enterprise applications elsewhere. But, they tell us, the devil is in the detail; notably (1) how to get from where they are to a fully hosted environment without increasing costs in the short term and (2) what manner of integration framework might be appropriate.
Surprisingly, there wasn’t much talk about cloud computing at the show. Pretty much all the application vendors claimed to offer hosted or SaaS delivery models but the big SI’s such as IBM and Wipro were focusing on their software rather than infrastructure-as-a- service.
3. Digital Signage – this has come in leaps and bounds over the past five years. Intel showcased some HD screens of such astonishing quality that even seasoned signage sales people took off their hats. Our customers saw the value of being able to control point of sale messages centrally but still have two major concerns. Firstly, do shoppers really take notice of the signs or do they merge into the background as Tesco’s found with its in-store media network? Secondly, can the digital signage take a simple feed from existing content? No retailer can really afford to have to photograph its products twice, once for the web and a second time for HD 3D screens.
Intel are always good value at NRF. They don’t really have anything to sell so can put their marketing budget into showing cool stuff that they hope will increase the demand for computing generally.
4. Electronic shelf edge labels – No interest from our retailers. None at all.
5. Apple – every stand had an application running on a tablet and three out of four put you in a raffle to win an iPad if you let them scan your delegate badge. While many manufacturers have tablet devices on the market, this show was wall to wall Apple. Our customers explained how they’d spent the last twenty years keeping Mac’s out of their corporate IT but either had been or would shortly be over-ruled by their management. Apple technology is here to stay and technology vendors need to shape up to be able to offer support.
6. Payments – there was a huge amount of innovation around F2F payments ranging from fitting sleeves around iPad’s for card tranasctions to loyalty apps with embedded payment software so that customers can transact on their own devices. The business case, at least for US retailers who are incandescent about the commissions charged for credit cards, is to steer shoppers to the most favourable tender types. For example, the payment screen on your app would highlight store cards or gift cards and put Visa and Mastercard “below the fold”.
7. RFID – here at BT we’ve been big fans since we implemented the automated stock counting system in M&S stores in 2005. We see a strong role for the technology supporting cross-channel retailing as inventory accuracy is becoming of critical importance. There was surprisingly little RFID at NRF; really just Avery Dennison (BT’s partner) showcasing their fashion solution. None of the big application vendors or SI’s mentioned it.
8. Self-check out – the marmite of the retail technology world; some people are evangelical about self check-out while others see it undermining the long standing relationship between a retailer (represented by its staff) and its customers. Undeniably, the machines do tend to be rather ugly although if you can put the transaction on the customers’ phone then self-checkout hardware could be rather smaller. The verdict: we can all see advantage in reducing the queues in fast fashion but still struggle with how you remove the security tags. One to watch for 2011.
9. 3D virtual fitting rooms – Microsoft cancelled their prime stand by the main entrance two days before the conference which was very fortunate for one lucky 3D virtual fitting room vendor. Our small group wasn’t impressed. The garments don’t hang properly so you can’t genuinely see how they would look on you and (yet again) all the clothes would need to be re-photographed for this application. Maybe one for 2013.
Geoffrey Barraclough is BT Expedite’s Strategy, Marketing & Propositions Director