Interview • 30.03.2016

“The internet of things will emanate a strongly disruptive power“

Interview with Ralf Schienke, Retail Marketing Management Germany at Fujitsu

Ralf Schienke: The Iot will give the retail industry a strong competitive edge....
Ralf Schienke: "The Iot will give the retail industry a strong competitive edge. However, it is essential to include and inform those people affected by this type of reorganization by using successful change management".
Source: Fujitsu Technology Solutions GmbH

In these times of digitization, EuroCIS 2016 shone a spotlight on the big megatrends – for instance, the Internet of Things, IoT. The chance to make individual products “visible“ online, offers the retail industry great potential, especially in the areas of production and supply chain management. We spoke with Ralf Schienke, Retail Marketing Manager Germany at Fujitsu, about the current situation and the future of the IoT in retail.

Mr. Schienke, how strongly will the Internet of Things influence the retail industry? 


The Internet of Things (IoT) will have a similarly large effect on our daily lives as the Internet already exerts today. In the future, more and more animate and inanimate objects, that being buildings, clothing articles, groceries, plants, and animals will have IP addresses and computing power and therefore, be able to provide information about themselves and their environment.

According to the latest estimates by consulting companies like IDC, from an IT perspective, Earth will gain approximately 50 billion new “inhabitants“ by the year 2020. This change will strongly alter the society as a whole and subsequently also the retail sector. 

What new specific services are possible in retail by using the IoT? 

The Internet of Things will emanate a strongly disruptive power on products and the services industry: these products will be linked to the IoT during their entire lifecycle: during their development, distribution, sales and during use by the consumer. 

In the long run, it makes no difference whether we talk about food retailing, textile retailing or other areas. The integrated IoT services will hugely influence the design, cost and value for the customer. This will also significantly change the character as well as the potential of products and services. 

Let’s take food expiration dates for example that incorporate the real conditions of storage and the cold chain. Or products that are able to provide information about their origins, ingredients or their proper application. The IoT creates an added value. This is why a key question for retail will be who provides the services for this and who creatively uses and monetizes them.

The consistent shopping experience across all channels makes the crosslinked...
The consistent shopping experience across all channels makes the crosslinked store an important competitive advantage for retailers.
Source: Fujitsu Technology Solutions GmbH

How exactly do customers benefit from the new possibilities? 

Think of the goods that need to be at the right place at exactly the right time or products that better meet the individual expectations of their users. Patients receive individualized medical care because relevant information can be utilized thanks to wearables. Daily shopping is automated and become services that make daily life drastically easier.

The so-called omnichannel strategy is an important preliminary stage for this, but the Internet of Things also significantly increases the number of channels and touchpoints that need to be integrated. In light of this, the “omni“ moniker has perhaps been assigned a bit too early.

What retail areas can especially benefit from this?

The Internet of Things will greatly influence production and the supply chain: thanks to new information value loops, inefficiencies will be eliminated at many steps in the value chain, making significant cost and time savings possible. Sales data is transferred faster and more accurately into production and is going to help in saving energy and raw materials. Overproduction and the subsequent write-offs will be drastically reduced. 

Customer behavior such as motion patterns in the store will become better trackable and allow very accurate conclusions about the optimal store layout. Processes in warehouse and distribution centers most notably have lots of room for improvement as was already evident in several realized projects by Fujitsu.

What is the best way for retailers to proceed if they want to take advantage of the new possibilities?

We suggest identifying attractive pilot applications that allow concrete improvements in efficiency. We also recommend developing new products and services in fast test cycles and involving partners such as Fujitsu early on in the process to gather experience faster. This lets you quickly scale the application areas.

The Iot will give the retail industry a strong competitive edge. However, it is essential to include and inform those people affected by this type of reorganization by using successful change management. Regardless of whether those are employees or customers.

Interview: Daniel Stöter, iXtenso.com

related articles:

popular articles:

Thumbnail-Photo: The 6 technology trends affecting the security sector in 2021...
15.01.2021   #security #brick and mortar retail

The 6 technology trends affecting the security sector in 2021

The trends are shaped by how and why technologies are used

It’s useful when looking forward to first look backward: hindsight has a wonderful way of providing context for future-gazing activity. And when looking back over the past year, one insight could understandably be that attempting to predict ...

Thumbnail-Photo: How do technologies find their way into retail?...
17.03.2021   #brick and mortar retail #self-checkout systems

How do technologies find their way into retail?

Rolf Schumann, CDO of the Schwarz Group, provides answers at the "Retail Innovation Days"

Tech is cool! Gimmicks, gadgets, gizmos – they impress and inspire quickly. However, it often takes much longer than technology experts and developers initially predict before the technologies actually arrive in everyday life and are used by ...

Thumbnail-Photo: More than 400 Danish Coop Stores Now with Electronic Shelf Labels...
29.01.2021   #electronic shelf labels (ESL) #price labelling

More than 400 Danish Coop Stores Now with Electronic Shelf Labels

Back in 2010, the first Coop store implemented electronic shelf labels from the IT company, Delfi Technologies.

Store no. 400 became Irma at Islands Brygge in Copenhagen, which has undergone a major renovation project, where investments have been made into several initiatives to improve the shopping experience – this includes electronic shelf ...

Thumbnail-Photo: Successful co-op association has the largest profit in the country...
24.12.2020   #electronic shelf labels (ESL) #price labelling

Successful co-op association has the largest profit in the country

The local Kvickly store has found the recipe for making profit. In the future, even more energy will be spent on customers and staff members

Electronic shelf labels play a crucial role here.

Thumbnail-Photo: First Amazon grocery store opening in Britain...
15.03.2021   #brick and mortar retail #food retail

First Amazon grocery store opening in Britain

Young shoppers interested in skipping checkout lines with cashier-less tech

With the first Amazon grocery store opening in Britain, latest research from Mintel reveals that three quarters (76%) of Brits say they would shop at one.When asked what would encourage them to shop at a physical Amazon grocery store, almost two ...

Thumbnail-Photo: BAUHAUS introduces new click and collect technology...
10.03.2021   #electronic shelf labels (ESL) #price labelling

BAUHAUS introduces new click and collect technology

New solution helps store associates pick items for Click & Collect orders

With help from electronic shelf labels and handheld terminals, it has become much faster and easier for BAUHAUS to navigate through the store to find the right items. A new solution that also saves a lot of time on replenishment.With a product range ...

Thumbnail-Photo: The rise of the virtual fitting room with the corona pandemic?...
30.11.2020   #fashion #virtual reality

The rise of the virtual fitting room with the corona pandemic?

Trying on clothes via AI, AR or VR

The rising usage of smartphones is expected to take the virtual fitting room market to $19,250.4 million by 2030, from $3,128.6 million in 2019, at an 18.5% CAGR between 2020 and 2030.A virtual fitting room is a digital representation of a fitting ...

Thumbnail-Photo: Klarna starts cooperation with Verifone
23.12.2020   #digitization #self-checkout systems

Klarna starts cooperation with Verifone

The idea: a shopping experience in stores that is unique worldwide

Klarna, the leading global payments and shopping service, announces a strategic partnership with Verifone, a global leader in payments and commerce solutions, that will make Klarna available as the first-ever buy now pay later solution to millions ...

Thumbnail-Photo: Danish supermarket chain implements ESL in all stores...
10.02.2021   #electronic shelf labels (ESL) #price labelling

Danish supermarket chain implements ESL in all stores

The chain is investing in modernization and more digital initiatives

The privately owned, Danish supermarket chain Løvbjerg is doing well, and has experienced a great development in 2020 with a 18% growth. The chain is therefore also investing in modernization and more digital initiatives. Most recently, ...

Thumbnail-Photo: Checkout-free hotel convenience store in Yokohama, Japan...
17.02.2021   #self-checkout systems #self service

Checkout-free hotel convenience store in Yokohama, Japan

Using biometric authentication technology

Zippin announced the launch of its latest retail format: a hotel convenience store. Zippin's partner, Fujitsu, the leading systems integrator in Japan, has worked with Koyo Group to implement the world's first checkout-free store within a ...

Supplier

HappyOrNot
HappyOrNot
Innere Kanalstraße 15
40476 Düsseldorf
Reflexis Systems GmbH
Reflexis Systems GmbH
Kokkolastr. 5-7
40882 Ratingen
SALTO Systems GmbH
SALTO Systems GmbH
Schwelmer Str. 245
42389 Wuppertal
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
CCV GmbH
CCV GmbH
Gewerbering 1
84072 Au i.d.Hallertau
Axis Communications GmbH
Axis Communications GmbH
Adalperostraße 86
85737 Ismaning
iXtenso - Magazin für den Einzelhandel
iXtenso - Magazin für den Einzelhandel
Celsiusstraße 43
53125 Bonn
Citizen Systems Europe GmbH
Citizen Systems Europe GmbH
Otto-Hirsch-Brücken 17
70329 Stuttgart
EuroShop
EuroShop
Stockumer Kirchstraße 61
40474 Düsseldorf