Digital Transformation In Supermarkets 2020

The road to doing business online began with the entry of Amazon, the retail giant in e-commerce. Amazon started its operation with the sale of books, and with a powerful sales platform, it broke into the music, television, and even the perishable food industries.

The success of Amazon in capturing this market through online means led companies like Walmart to invest in new digital technologies on the sales floor for more than three years, to improve the consumer’s shopping experience, optimize space productivity and increase turnover, among other objectives.

The measure of confinement with the Covid-19 accelerated the trend of buying online, prompting many consumers to test sales platforms and home delivery.

But in the 80s, the effect called “Cocooning,” to a lifestyle of being at home, allowed companies like Domino’s to be very successful with the delivery of pizzas at home in 30 minutes. Today, several pizza companies sell pizza slices online. The restaurant industry, like the supermarket industry, are taking the same approach Pizza Companies have done for years now.

But what does digital transformation mean? For Brian Solis, founder of “FutureWorks,” it is an investment in technology in the company, which requires the design of a business model and processes to create new value for customers and employees to compete in the digital economy effectively.

At Competitive Commerce, we suggest that before starting a digital transformation process, you need to develop two capabilities: the first, strategic innovation, which includes evaluating new business opportunities, exploring new industries and experimental innovation with new technologies such as artificial intelligence, Business Intelligence, Internet of Things, among others.

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It would be costly for a company to invest in all technologies, in addition to defining a position in the market that allows leadership and customer satisfaction.

The second capacity is the operational one that includes the design and definition of the process to be automated, the adoption of new technologies, evaluation of different platforms, integrations, connections, and support at the process level, such as the measurement of indicators.

But above all, it requires the development of its people, digital skills, commitment, collaboration, teamwork, recognition, and well-being.

The development of these two capacities impacts our business model. We must define our new technology partners, estimate the resources we are going to allocate, adjust the cost structure and estimate revenue in new business units. It is also necessary to establish other forms of communication with customers, and evaluate new marketing channels for greater geographical coverage that in its entirety allow it to achieve an innovative value proposition in the market.

The process is not easy, but as a consultant I recommend that companies that want to take a step towards digital transformation, carry out an “Innovation Diagnosis” to measure their current capabilities and establish the gap that exists between their current situation and the desired one, to generate the necessary change that allows a successful transition from analog to digital.

We can help you with that diagnosis. Write to us at [email protected] or visit us at