The Retailer Spring Edition 2023

THE RETAILER

6

HOW TO THRIVE IN RETAIL THROUGH THE PERMACRISIS

David Perks Director of Retail Services Objectivity

A guide to prioritisation and success. One thing I have learned from my 20 years in retail is that if you are standing still, you are actually going backwards. Permacrisis is the word that best describes retail and hospitality right now and it is likely to stick around for some time to come, so we better get used to it! A frustrating phenomenon I sometimes still see in retail is siloing. I find it confusing, as we are all supposedly serving the same customer. However, I have noticed a shift in mindset to a much more collaborative way of working across departments, and even across retailers, with recognition that we are all in this together and might need each other to cope and enrich retail. There are some fantastic growth stories out there, but they are few and far between with the vast majority being asked to cut costs and the inevitable squabble for who should cut how much from what budget to do “their bit”. Digital transformation is not a workstream, it is an enabler — but how do you turn a buzzword into tangible business value? The temptation when faced with budget cuts is to just pause everything. And yes, I have seen lots of that, but I have also seen very pragmatic approaches, which represent a shift away from the old way of simply cutting costs. Instead, retailers are choosing to be smart about costs and deliver small investments that improve productivity and ultimately deliver ROI and savings. Technology is clearly playing an ever-increasing role in streamlining busi ness operations with thousands of products available to solve just about every business problem — but, how do you know what is worth it and what is not? Product providers will all tell you that your business needs the solution they are offering, they will try to prove the ROI, etc., and in many cases this is true, but not always! So, how do you choose whether to buy or build while also influencing your peers and business decision-makers not to take a blanket approach to saving costs and look at things differently? 1. Invest in a transformation leader According to a recent report, 95% of companies surveyed by Accenture and Brightline believe that the Chief Transformation Officer role is critical for transformation success. This role has been growing in frequency and importance, with more board-level positions in place than ever before. The transformation leader’s role is pivotal in stopping siloing and helping companies step back and look at the business in a different way. They are highly collaborative and will deliver their own ROI (if they are any good).

2. Consolidate what you have Before you start throwing money into silos again in order to fix “issues”, invest in a thought partner that can offer an objective view of your current landscape. The right partner will also advise where to consoli date, reengineer, or remove applications before you start creating more technical debt. A good transformation leader will know this! 3. Be ruthless but realistic about the projects that need to stop, start, and continue Assessing your capacity and capability to deliver digital transformation will determine your approach. Addressing point 2 will flush this out but be ruthless about which project will get priority and sign off. Strong collaboration across teams will be needed as some areas of the business may receive more investment than others. 4. I can’t stop but lack capacity Consider outsourcing if you can’t recruit. Contracting onshore can be flexible but expensive, whereas offshore, although cheap, may not provide thought leadership and may cost more in the long run. There are a few nearshore options to choose from that can prove both cost-effective and provide quality, flexible resources while delivering across a number of different skillsets and technologies. If you choose the right tech partner, they can also develop your teams’ capabilities. 5. A few areas to consider prioritising Cloud migration — a good partner will move you to the cloud, but a great partner will do this in the most cost-effective way for you and your business. Data strategy — this area can burn through money very quickly. I see many businesses recruiting data specialists and that is great, but without a clear data strategy in place, this could be a waste. In order to see the ROI, it’s important to get the right balance of data engineers, architects, and scientists. likely to stick around for some time.” ‘‘ Permacrisis is the word that best describes retail and hospitality right now and it is