Digital technology is an extremely disruptive factor for our modern world and for the way companies operate. The success of social networks, as well as the growing importance of platform businesses and e-commerce, would not be possible without digital technology. But people have already become accustomed to the existence and functioning of social media and amazon as a gigantic marketplace. How will new digital technologies and especially Artificial Intelligence (AI) change retail?
Table of Content
Introduction
Impact Areas of New Technologies in Retailing
Use Cases of Artificial Intelligence: Scan-and-go
Future Outlook: Connecting Services
Conclusion
References
Introduction
Digital technology is an extremely disruptive factor for our modern world and for the way companies operate. The success of social networks, as well as the growing importance of platform businesses and e-commerce, would not be possible without digital technology. But people have already become accustomed to the existence and functioning of social media and amazon as a gigantic marketplace. How will new digital technologies and especially Artificial Intelligence (AI) change retail?
Impact Areas of New Technologies in Retailing
In the highly competitive retail sector, companies are constantly trying to develop further in order to stand out from the competition or at least to be able to keep up. The optimization of the current business practice can proceed in different ways. On the one hand, internal processes and the supply chain can be improved without visibly changing the product range for the customer. The advantage of this is more efficient operations and thus cost savings. Starting with simple digital software such as ERP systems, which are nowadays standard for stationary trade as well as e-commerce, there are technical possibilities to make logistics and warehouse management smarter. Based on AI and the use of large amounts of data, consumption patterns can be analyzed, thereby creating forecasts, and ensuring a more optimal supply of internal processes up to the availability of the end products in the retail trade (Grewal et al., 2021).
However, AI and machine learning can not only safe costs and ensure the availability of physical resources, but also optimize services and digital offerings. Streaming providers can suggest suitable movies to users and at the same time plan for sufficient server capacity at peak times (Grewal et al., 2021). Supermarkets can reduce the waiting time of their customers by using sensors at the entrance and checkout data to predict the optimal number of open checkouts in good time (Grewal et al., 2017). Here we are in an area of activity of the new technology that directly affects the customer. This can positively influence sales figures and turnover, as when suitable product suggestions are made by digital sales assistants. At the same time, the customer's shopping experience is also improved in many places. The personalization of offers and services in particular has high potential here.
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- Quote paper
- Lars Bucher (Author), 2021, New Technology in the Field of Retailing. Artificial Intelligence and the Concept of Scan-and-Go, Munich, GRIN Verlag, https://www.grin.com/document/1191419
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