How to be a disruptor

Transcription

1 How to be a disruptor The four pillars of innovation Part 4: Robotics-as-a-service

2 More than just a buzzword, innovation is about disrupting the market and achieving profitable growth. In an increasingly competitive business environment, brands and retailers need to find a way to set themselves apart from the competition. Doing this isn t about meeting customer needs; it s about creating them, by nurturing a culture of innovation and continually inventing. In this series, we look at the four key pillars of innovation in commerce today, including a look at the brands that are leading the way. How to be a disruptor 2

3 Brand Commerce and the four pillars of innovation In the fast-moving world of retail, innovation is driven by Brand Commerce - that is by narrowing the gap between inspiration and transaction, through: y Infusing retail experiences with brand purpose, creating reasons to shop direct y Infusing brand experiences with opportunities to transact, creating new paths to purchase ecommera, together with Isobar, has developed Brand Commerce to provide brands with a framework for innovation, and to help them achieve sustainable growth for their business. The two key principles of Brand Commerce (see figure 1) - maximising reward to optimise awareness and reducing friction to drive trading performance - underpin each of the main areas of innovation we are seeing in retail today. How to be a disruptor 3

4 Maximise reward Creating inspiring brand experiences to drive brand awareness Brand commerce Traditional commerce Reducing friction Creating frictionless transaction experiences to drive trading performance Figure 1: The two key principles of Brand Commerce How to be a disruptor 4

5 In this series, we take a look at the four pillars of innovation in commerce today, including a look at which brands are leading the way. The four pillars in the series are: Individualisation: Personalisation reimagined Hybrid digitalphysical stores: Two worlds collide The on-demand economy: Accommodating the new normal Robotics-as-a- Service: Augmenting the retail space How to be a disruptor 5

6 The ultimate aim is for humans to end up relying on collaborative robots because they have become an active participant in their daily tasks. Dr Graham Deacon, Robotics research team leader at Ocado Technology How to be a disruptor 6

7 Part 4. Robotics-as-a-service: Augmenting the retail space Robots have long enjoyed a starring role in science-fiction films from Knight Rider to Short Circuit, and beyond. But robotics and artificial intelligence are no longer confined to the fictional world, and increasingly we are seeing them play a part in the real-life business world. Over the coming years, as the cost of technology decreases and technological advancements continue, we are likely to see the role of robots evolve throughout the retail value chain in both physical and digital retail. Rather than replacing humans in our workforce, robots are being developed to ease the pressures on people and collaborate with us in innovative ways, as highlighted by Graham Deacon of Ocado Technology. Freeing humans of some of the more mundane tasks would leave us to focus on highervalue activities - on strategy innovation and process improvements. How to be a disruptor 7

8 One of the key ways in which robots are currently used in retail is in automating repetitive, manual processes. According to a recent McKinsey report, 53 per cent of retail s activities are automatable, particularly in areas such as stock management and logistics. Activities such as packaging objects for shipping, stocking merchandise, and data collection have high potential for automation. However, other common tasks in retail, such as advising a customer on what colour shoes to buy, require judgment and emotional intelligence, so are more difficult to automate currently. Despite the growing appeal of automation in some areas, David Autor, an economist at MIT, advises caution. Just because it is technologically feasible to replace a set of human tasks with work done by a robot, he says, that does not necessarily mean it is cost-effective. But as robots capabilities develop further and their footprint goes beyond the realm of repetitive tasks, so their potential uses are becoming more and more exciting for brands and retailers. How to be a disruptor 8

9 As we will see from the examples that follow, robots are already accelerating retail innovation, and over the coming years, they will only become more sophisticated. The potential use cases for robots in retail are numerous, covering both the front-end and back-end. Front-end: Back-end: Safety and security: y In-store surveillance y Dangerous activities Automation of customer service y Value-add services in-store, such as gift wrapping, currency exchange and price comparison y Facilitate webrooming and showrooming y Multi-lingual support y Personalised engagement/guidance Stock control and fulfilment y Support faster fulfilment (warehouse and delivery) y Stock control Scalability of business process y Routine checks and compliance audits y Training y Knowledge sharing across business functions/ locations How to be a disruptor 9

10 Robotics-as-a-service and Brand Commerce By leveraging robotics-as-a-service, brands and retailers can deliver on the two key principles of Brand Commerce: Maximise rewards Reduce friction y Standardised high quality of product/ service y Higher customer satisfaction levels y Effortless experiences for both physical and digital customers y Less time searching for products y Fewer returns y Improved business processes How to be a disruptor 10

11 Robotics-as-a-service in action Many brands and retailers have already experimented with innovative ways to leverage robotics-as-a-service in commerce. Here we take a look at who s doing what, and what the future might hold for this pillar of retail innovation. How to be a disruptor 11

12 Car factories first opened their doors to modern industrial robots in 1961, when Unimate, an almost-2,000kg robotic arm attached to a steel drum, joined the General Motors workforce. Today, at Kia, high-tech robots stamp, shape and weld cars, with a car body shell completed every 80 seconds. How to be a disruptor 12

13 Amazon s warehouse robots are one of the most well-known examples of robotics in retail, and a great instance of automation complementing human skills to increase productivity. Whereas workers previously had to manually search the shelves for the products required to fulfil each order, now the shelves themselves glide quickly across the floor on footstall sized robots. With over 30,000 of these robots in operation, Amazon can pack more products into a tighter space, as well as making stacking and picking more efficient by having the robots automatically bring empty shelves over to packers or the right products over to pickers. How to be a disruptor 13

14 US giant Target often pilots innovations in its stores, the latest of which are robots that track inventory on its store shelves, including shampoo and laundry detergent. The one-week trial at its downtown San Francisco department store used a robot called Tally, which moves autonomously around the store while scanning products to determine if they have been misplaced, mispriced, or are low in stock. How to be a disruptor 14

15 American hardware store Lowe s has developed a robotic customer service assistant called OSHbot, which helps customers find items they are looking for, as well as assisting managers with inventory tracking. OSHbot uses facial recognition technology to identify customers, before offering them a list of products based on what the shopper says they want. Having selected an appropriate item, the customer is then shown a map of the store and given the option to be guided to the product. OSHbot uses navigational technology found in driverless cars, allowing it to swerve around product displays and customers. Not only that, but OSHbot enhances the human offering it is multi-lingual, and able to track products in real time. The robot can also spot previously untapped revenue opportunities. For instance, lots of customers were asking OSHbot for mailboxes, so Lowe identified a potential opportunity to extend its offering in this category. How to be a disruptor 15

16 Domino s is piloting a 3ft battery-powered unit, dubbed DRU (Domino s Robotic Unit), to deliver pizzas from the customer s local branch to their home. The DRU contains a heated compartment for storing up to 10 pizzas, and is capable of self-driving up to 12.5 miles from a shop. Equipped with sensors to detect obstacles on its route, the robot can drive on both roads and pavements, and will return to its store to recharge once the delivery has been completed. How to be a disruptor 16

17 The examples here provide just a snapshot of the myriad ways in which brands and retailers can drive innovation through robotics-as-a-service whether in production, fulfilment, customer service or beyond. Robots are no longer science fiction in retail, and there are great opportunities available for brands and retailers that find ways to leverage robotics to solve challenges in creative, innovative ways. As technology continues to advance, the winners in retail will be those who come up with great ideas about how to actually use the technology. As Brian Gerkey of the Open Source Robotics Foundation points out, we need people who are probably coming from outside of the robotics community, who have a great idea for how to apply all this technology to compelling business challenges. How to be a disruptor 17

18 Ready to take the first step on your innovation journey? Together with the team at Isobar, we have put together a comprehensive innovation framework and step-by-step process, to help brands and retailers develop innovative solutions for their clients. How to be a disruptor 18

19 Our process INSIGHTS OPPORTUNITIES IDEATION PRIORITISATION BUSINESS CASE PROTOTYPE/ DEMO BOARD Business objectives Strategic objectives Ideation workshops Problem/solution statements Market sizing User validation Consumer facing minimum viable product Stakeholder interviews Consumer journey Proposition development Idea scoring ROI modelling Test & iterate Market data Trends Prioritisation matrix Launch & scale Consumer data Behaviours Innovations RESEARCH REPORTS VISION ARTICULATION CONCEPTS PRODUCT & P&L-DRIVEN SERVICE ROADMAP BUSINESS CASE PROTOTYPE Figure 2: ecommera and Isobar s innovation process How to be a disruptor 19

20 Contact us today to find out more about our innovation process, or to set up a visit to one of our Nowlabs, the hub of our global innovation acceleration initiative. info@ecommera.com +44 (0) How to be a disruptor 20

21 Sources y Business Insider UK, Robots are infiltrating retail, 6 June 2016 y Fast Company, What The Lowe s Robot Will Do For You And The Future Of Retail, 16 February 2016 y Financial Times, Why robots are coming for US service jobs, 3 May 2016 Fortune, y Target s New Robot Helper Is Busy At Work On Aisle 3, 28 April 2016 y McKinsey Quarterly, Where machines could replace humans and where they can t (yet), July 2016 PwC, y Service robots: The next big productivity platform, 2015 y Tata Consultancy Services, Robotics-as-a- Service: Transforming the Future of Retail How to be a disruptor 21