Retailers ship millions of corrugated displays into their US stores every year, but 42% of them never get executed on the selling floor. CPG's and retailers have told us that they don't have the data to tell them which campaigns should be expanded, which campaigns should be cut back, and which campaigns could be improved. Retailers comparable store sales growth have languished for years, traffic is down and subscriptions for newspapers have fallen at least 70%. Seventy five percent of shoppers have a smart phone with them when in stores, yet engaging the shopper with their smart phone is rare. There is an imperative for a solution that offers the likelihood of faster innovation, increased revenue and decreased costs. At Shelfbucks, we have an Internet of Things Ecosystem that addresses these issues for Merchandise Displays:
Source: Business Insider
We've gathered thought leadership from Accenture, McKinsey and Bain, well known and respected firms, that provide support for Shelfbucks' architecture.
Accenture examines the ideals for an As-a-Service delivery model and postulates that a new path may be required to achieve benefits:
"Getting to As-a-Service requires simplification – removing unnecessary complexity, poor processes, and manual intervention to make way for a nimbler and more proactive way of running a business."
Accenture brings credibility to IT strategy as evidenced by its number one ranking in Global IT Strategy Consulting.
Disclosure: Shelfbucks created its Merchandising Optimization Platform without any assistance from Accenture, nor were we trying to adhere to Accenture's As-a-Service delivery model. It was serendipity that our design concepts run parallel to Accenture's approach.
In addition to Accenture, McKinsey has a point of view on how retail can improve, and Shelfbucks has included their perspectives in a prior blogs here and here. Now we are seeing McKinsey opine on how the Internet of Things can be applied to retailing to improve the supply chain and the shopper experience.
"Investing in IoT hardware—from sensors embedded in manufacturing equipment and products to electronically tagged items along the supply chain—is only the starting point of the value equation. The biggest competitive gains come when IoT data inform decisions. Our work shows that most of the new business value will arise from optimizing operations. "
And McKinsey on retailing:
"In retailing, for instance, one of the largest sources of value could be the sales lift that real-time, in-store personalized offers are expected to deliver. This will require the sophisticated integration of data across many sources: real-time location data (the shopper’s whereabouts in a store), which would link to data from sensors in the building; customer-relationship-management data, including the shopper’s online-browsing history; and data from tags in the items on display, telling the customer to enter a specific aisle, where he or she could use an instant coupon sent to a phone to buy an item previously viewed online."
Bain is another thought leader who has published articles on the potential for improvement by the Internet of things. According to Bain:
The Internet of Things is not one market but a set of overlapping markets with strong connections to the data center and analytics. Understanding where battlegrounds are emerging, how platform dynamics will shape competition and profitability, and what barriers exist to adoption (for example, security and interoperability) will help companies determine where to invest and what capabilities are required to win.
And Bain on hurdles that will have to be overcome:
"At the infrastructure and database layers, they will need to learn how to manage the interaction of millions of sensors and find ways to cost-effectively collect and analyze the huge volumes of unstructured data they produce."
The 5 components of Accenture's As-a-Service delivery model with comments about Shelfbucks approach to merchandising displays:
Shelfbucks Helps Retailers and CPGs Improve the Effectiveness of Traditional Merchandising Efforts by Tracking the Entire Lifecycle of Merchandising Displays and Delivering Comprehensive and Actionable Insights that Improve Program Performance
Measurement of Display Effectiveness--at Scale
Shelfbucks Helps Retailers and CPGs Convert More Shoppers to Buyers by Adding Compelling Personal Digital Experiences to Traditional Point-of-purchase Merchandising
Rich Digital Shopper Experiences
Content can be judiciously pushed to
Shoppers based on proximity to merchandising