Retail Reimagined
There’s no going back: retail is heading towards a digital future and Microsoft is leading the way.
How are Microsoft solutions supporting retailers to digitally transform their operations?
We are in the era of digital transformation, where businesses are embracing emerging technologies to revolutionize the way they work. Today, AI and machine learning are creating more intelligent businesses, the Internet of Things is offering companies new data points, and blockchain is delivering a new level of security and transparency across stakeholder networks.
These new tools and capabilities have been democratized by Microsoft Cloud. Now, retailers and consumer packed goods (CPG) companies can leverage our intelligent cloud to create data-driven organizations, boost efficiency, enhance customer personalization, and achieve greater revenue growth. Furthermore, we recently announced Microsoft Cloud for Retail, which offers a range of targeted solutions for the sector.
There was an e-commerce boom during the pandemic. What challenges did this create for your retail clients and how can AI help to overcome them?
The COVID-19 pandemic is the new chief innovation officer for the retail industry. We witnessed years of e-commerce growth in just a few months, hitting penetration levels forecasted for 10 years from now. This growth requires retailers and CPG companies to humanize their digital experience, re-creating the magic of physical stores. This can be achieved through livestreaming and virtual ‘clienteleing’, as well as delivering more personalized, targeted marketing.
Most of these activities can be enabled via AI, machine learning, and advanced learning capabilities, all of which are facilitated by our intelligent cloud. In one example, U.A.E.-based retail conglomerate, AL Futtaim, leveraged the power of AI and advanced analytics to accelerate its hyper-personalization strategy to boost customer satisfaction and accelerate growth.
How can brick-and-mortar retailers use technology to become more competitive?
Stores are going to play a more vital and diverse role, as customers increasingly demand a wider variety of services: buy online, click and collect, the list goes on. These services require a “phygital” world, that combines the best of physical and digital retail. For example, Switzerland’s largest retail company, Migros, is harnessing advanced technology to detect product freshness, quality, and stock. Doing so means the company can guarantee product quality, availability, and delivery on a continuous basis.
Supply chains, logistics, and delivery were heavily impacted during the pandemic. How can retailers utilize technology to remain resilient and profitable, even during challenging times? Supply chains need to be reimagined and re-designed on the principles of flexibility, transparency, and resilience, rather than cost and speed. We have seen retailers further localizing their supply chains and accelerating partnerships with logistics players to improve their last mile delivery and meet customer needs.
As for technology, AI and robotic process automation play fundamental roles in supply chain transformation. Starbucks is leveraging AI to create an integrated digital planning capability across the business, to reduce costs and increase the productivity. Using blockchain, the company has also enabled transparency across the supply chain, from bean to cup.