The democratization of technology

Merriam Webster defines democratize as “to make (something) available to all people.” We are

witnessing the democratization of technology as technology providers are able to put

increasingly powerful solutions in the cloud, making industry-leading capabilities available to

even the smallest retailers.

This sea change in how technology is made available opens the door to significant opportunity

for smaller retailers. No longer does a retailer - or brand manufacturer - need to purchase

costly computer hardware, pay for expensive software licenses, and bear the burden of

expensive IT staff to manage it all. Instead, the smaller merchant can simply open the browser

on their inexpensive tablet or smartphone and log-in.

Small companies can leapfrog their larger competitors, much as developing countries deploy

the latest cellular communications technology, bypassing costly landline systems. Large

companies are encumbered by massive investments in existing infrastructure, large IT teams,

and unwieldy processes. In a world in which the pace of technology-driven innovation is

continuously increasing, large size is the enemy of the nimbleness required to successfully

navigate today’s - and tomorrow’s - tech environment.

Consider what’s happening today. A six store independent, deploying a multi-lingual app

enabling the retailer (and its brand partners) to message shoppers in the store based on

realtime location. But unlike competing beacon solutions providing the same offer to all

shoppers passing by a location, this platform leverages the latest big data science,

sophisticated predictive analytics, and machine learning to provide contextually aware offers to

the individual shopper.

But there’s more. A mid-size retailer piloting a people counting solution able to provide

anonymous demographics (age, gender, ethnicity) on shoppers coming into the store,

providing the retailer greater insight to their shopper base that is feeding merchandising,

marketing, and advertising decisions. A regional retailer installing technology using 3D sensors

able to provide deep analytics on shopper behavior at a category down to what specific

product the shopper picks up, from which shelf, and if it goes into the basket or back on the

shelf. And the list goes on.

The growing availability of powerful tech-enabled capabilities for small retailers is converging

with the already large and growing local movement. There is a window of opportunity for small

and local retailers - working with local and regional brand manufacturers - to turbocharge the

local movement by using new capabilities to know, understand, and market to their individual

shoppers. Imagine the small local honey producer now having the ability to partner with a local

retailer to communicate not only an offer but a video telling the local honey producer’s story, to

the shopper in the store. This kind of capability is poised to disrupt the largest brand

manufacturers.

But just like a populace gaining the right to control its destiny, there are responsibilities that

accompany this transformation. Independent and mid-market retailers must understand there

is a window of opportunity to leverage the technologies available to them to transform their

businesses. Some of the retailers I talk to across the country understand this, and they

personally dedicate time to staying abreast of how the latest capabilities can benefit their

business strategy. Some of these retailers are keen to pilot new solutions in an effort to learn,

others are aggressively bringing new solutions into the market to gain an edge over their larger

competitors.

But other retailers - too many in my mind - hang back, looking to follow, or even worse, bury

their head in the sand, refusing to acknowledge a rapidly changing retail world. Technology

alone is not a silver bullet for the retail industry but retailers and brands that ignore new

capabilities are destined to become cannon fodder as increasing innovation transforms retail.

Gary Hawkins is CEO of the Center for Advancing Retail and Technology. He can be reached at [email protected].