Shop X: Using Technology For Competitive Differentiation In High-Street Retail (Strategy Focus)

Publication Date	September 2007
Publisher	Datamonitor
Product Type	Brief
Pages	14
ISBN Number	not applicable
Product Code	DAT07286

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Summary

Introduction

Profit margins within the retail sector are being pushed down due to a variety of factors including the pressures of globalization, issues such as the relaxation of trade tariffs and the deregulation of domestic economies. In face of rising operational costs and razor slim profit margins, retailers are using technology to increase operational efficiency and counterbalance soaring costs.

Scope

This brief looks at the issues holding deployment of technology back, and examines ways in which vendors can expedite penetration.
Attention is also given to the problems facing integrating technology with store systems.

Highlights

Due to cost restrictions most new technologies are restricted to tier 1 retailers. In order to achieve the greatest ROI possible and thus increase the chance of uptake, vendors and retailers should work closely in order to establish relationships that will enable them to develop the most pertinent technologies.

One of the greatest objections NFC vendors are likely to face in convincing retailers to implement NFC technology is the excessive interchange fees that retailers pay to banks and card companies for processing each transaction. Technology vendors and retailers should work together to exert pressure on banks to cut these.

Reasons to Purchase

Many technologies have not achieved the degree of market penetration expected; this brief examines go to market strategies that will help drive uptake
Gain insight into how to integrate technologies and applications in order to achieve maximum ROI.

Companies Mentioned:

ACT Teleconferencing, Inc. , Blackbaud, Inc. , Oracle Corporation , RightNow Technologies, Inc. , Rudolph Technologies, Inc. , SAP AG , SunGard Data Systems Inc.

Content

Catalyst
Summary
Analysis
- RFID provides more effective management of retail assets
- Failing to achieve expected penetration - what vendors can do
- Although RFID prices are falling, vendors and supply chain companies are still subsidizing retailers
- Case study: Gillette razors have implemented an excellent example of a closed loop application
- RFID can be integrated with other applications
- Case study: Marks and Spencers demonstrates the importance of a careful cost benefit analysis
- Companies are using 'slap and ship' tagging to comply with retailer mandates
- NFC is an ideal payment method for industries in which speed is essential
- Problems facing vendors of NFC technology
- Digital Signage is a highly effective advertising platform
- Case study: Wal-Mart's digital signage system is an excellent example of narrowcasing
- To increase ROI and drive uptake vendors should integrate digital signage with other applications
- Self service check outs provide a solution to employee shortage's
- Loss of impulse buys must be considered when calculating ROI
- Digital signage vendors should integrate BI offerings into technology offerings
Actions
- RFID
- NFC
- Digital signage
- Self service
Appendix
- Definitions
- RFID - Radio Frequency Identification
- Methodology
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
List of Figures
- Figure 1: How NFC works
- Figure 2: Self service check out