Digital Transformation: Top 10 Terms Defining the Future of Retail
There has been a lot of discussion about the digital transformation of retail, and yet the concept is so all-encompassing that it can be a challenge to keep track of what it really means, where you are in the journey and how it directly applies to your business.
Aperion and EnsembleIQ have partnered to research how digital transformation is shaping retail and how we as an industry can form a common lexicon to identify best practices and share our successes. The full Retail Digital Transformation Glossary is available for download; however, these are the top 10 terms defining the future of c-stores:
AI-ENABLED RETAIL
AI (artificial intelligence) is the simulation of human intelligence processes by machines, especially computer systems. These processes include learning (the acquisition of information and rules for using the information), reasoning (using the rules to reach approximate or definite conclusions) and self-correction. Applications of AI include expert systems, speech recognition and machine vision. AI-enabled retail is used by retail stores.
DIGITAL TRANSFORMATION
Evolution of the retail experience through integration of a wide range of technologies including, but not limited to, interactive signage, camera/bar code smartphone app-based ordering for out-of-stock or bulk items, personalized in-store messaging, smart fitting rooms, RFID deployed at item level, biometric payment authentication, and RFID-based whole-trolley/basket checkout.
DISTRIBUTED ORDER MANAGEMENT (DOM)
System that intelligently divides orders across various systems and processes utilized by the multiple parties involved in replenishing an order. It provides a unified view of inventory to intelligently source the line item components of that order, to meet current and future customer demand while optimizing inventory, logistics and asset utilization.
INTERNET OF THINGS (IOT)
Concept of getting objects such as cars or household appliances to talk to each other via the internet.
NATURAL LANGUAGE PROCESSING (NLP)
Application of computational techniques for analysis and synthesis of natural language and speech.
OMNICHANNEL RETAILING
Establishing a presence on several channels and platforms (i.e., brick-and-mortar, mobile, online, catalog) and enabling customers to transact, interact and engage across these channels simultaneously or even interchangeably.
POINT-OF-SALE (POS) SYSTEM
Tool used for receiving payments from customers and recording financial transactions in an electric integrated computer system or cash register.
PRESCRIPTIVE ANALYTICS
Tool that provides recommendations on probable outcomes and next best courses of action.
RFID (RADIO FREQUENCY IDENTIFICATION)
Technology that uses radio waves to identify people or objects carrying embedded microchips. Passive RFID is primarily used for tracking purposes. Active RFID allows additional data to be collected, e.g., temperature.
UNIFIED COMMERCE PLATFORM
Single platform with advanced middleware that simplifies the technology needed to sell across multiple channels.