Tech Bytes: Three ‘disruptive’ lessons from Northwest Arkansas Technology Summit

Hands down, “digital disruption” was the theme of the third annual Northwest Arkansas Technology Summit, held in Rogers, Arkansas. In line with evolving concept itself, there were many definitions of what digital disruption truly means heard throughout the event.



Jon Stine, Intel’s global retail enterprise lead, views disruption as “changes and shifts in consumer behavior where value is created, captured and delivered.” For Larry Logan, chief marketing officer, Digimarc, disruptors require retailers to become “obsessed with finding and hitting consumers’ needs.”



Darshan Gad, VP, omnichannel member communications and innovation, Sam’s Club, believes disruption enhances the value of change, and solves acute needs and challenges for consumers. “And traditional players that can’t keep up will get displaced, and new markets will be created,” he added.



Overall, disruption is about embracing the change caused by consumer demand, and finding new ways — and solutions — to address their needs. What’s the benefit? Dr. John Cohn, IBM fellow, Internet of Things, put it best: “Companies that can take a step back and face disruption with vision, boldness and guts will be the winners.”



The following “must-have” lessons gleaned from the conference are paramount in any retailer’s journey toward becoming that “digital disruption winner”:



• Learn to simplify. While disruption eventually leads to programs that streamline the shopping experience, disruption is not just about “being on the cutting edge.” Instead, “it’s about simplifying and managing [processes], and accelerating the experience,” said Rita Carney, VP, IT business continuity and disaster recovery, Walmart.



Walmart’s Scan & Go program is a great example of this simplicity. Leveraging one of the industry’s biggest disruptors — the smartphone — Walmart launched its Scan & Go concept. An app that lets shoppers scan item barcodes via their smart phone as they shop, the solution enables them to pay for their order right in the store aisle, then simply show their e-receipt to an associate on their way out of the store. No more estimating basket costs, or waiting on long checkout lines.



• Leverage what is purposeful. Digital disruption is not a one-size-fits-all concept. What may benefit one brand may be unimaginable for another. Consider the concept of RFID. For retailers such as Ikea, RFID streamlined the shopping experience within a pop-up store this summer. However, the concept has not made its way to store-level among other companies.



For example, Walmart is keeping its eye on the technology at store-level, according to Don Frieson, the chain’s executive VP of operations. In the meantime, RFID remains a valid concept in Walmart’s supply chain.



“Distribution center back doors have RFID readers and our pallets feature RFID labels,” he said. “The information flowing through the solution has streamlined our supply chain. As the cost of the technology continues to drop, it may be something to revisit, but for now, we see value in the supply chain.”



• Be a differentiator. There is no doubt that digital disruption is transformational for the industry. With Gartner predicting that more than 20 billion connected devices will emerge by 2020, retailers will have plenty of opportunities to introduce new services. However, the most valuable programs will be those that help retailers stand out from their competitors.



Consider Lowe’s. The home improvement chain has laid down its initial disruptive gauntlet with the introduction of an augmented reality-based service that allows in-store customers to virtually design or renovate rooms in their homes. The program, which is featured in a dedicated space at store-level called Holoroom, started as a tablet-based app in select stores. Holoroom expanded to at least 12 more stores this year, and is now accessible via virtual reality goggles.



There is no doubt that disruptors are changing the retail landscape and there is no sign of slowing. Rather than shy away from this evolution, retailers must step up and decide how they too, can use disruptors to positively transform the retail experience.