The untrained eye may see the National Retail Federation’s (NRF) Annual Convention & Expo as just that – another convention and expo. To the contrary, ‘Retail’s Big Show’ is not only NRF’s flagship industry event held in New York City on the second week of January, it offers unparalleled education and networking opportunities led by a formidable who’s who of retail industry giants and other thought leaders from around the world.
On the heels of our Enterprise Tech Trends outlook announcement which cited that integrated omnichannel connections would be a key focus for enterprises in 2014, Verizon Enterprise Solutions convened a panel titled “Driving Consumer Experience and Trust in a Connected World” during Retail’s Big Show. Moderated by Ravi Bagal, vice president at Verizon Enterprise Solutions and consultant to Verizon’s Retail practice, the interactive conversation explored the foremost consumer, business and technology trends driving omnichannel retailing in 2014.
Speakers included, Founder and President at IHL Consulting Group, Greg Buzek; Chief Operating Officer at Thinaire, Mark Donovan; and Verizon Vice President Retail and Hospitality, Phil Burroughs.
“Retailers are extremely bullish about growth right now and are increasing information technology (IT) spend,” Buzek said.
And IT spend is increasingly becoming decentralized in favor of a shadow IT model which Buzek says has emerged into an $11.5 billion phenomenon globally.
“The grocery sector is leading the trend in retail where the IT department is now reporting to the CMO,” said Buzek.
“We define the three pillars of omnichannel retailing as mobility, cloud and security,” said Bagal. “Consumers think that retailers have already moved to omnichannel but in reality, the industry is still working to get there.”
Bagal added that the consumer-retailer relationship should be a dialogue in practice, but in reality it's a pair of monologues.
“Creating meaningful conversation between retailers and consumers should be the goal,” Bagal added.
For Donovan, omnichannel retailing comes down to consumer engagement.
“Mobile is at the center of engagement in the retail space, [building] trust and loyalty are essential,” said Donovan. “It’s an exciting time in retail as the industry undergoes transformation and reinvention.”
A key part of this transformation is cloud. Burroughs cited seasonal demands as one of the biggest reasons for cloud adoption in the retail sector.
“When it comes to cloud for retail, we’ve always been building the cathedral for Easter Sunday,” said Burroughs.
On security, Bagal noted that the industry has struggled to reconcile between driving innovation while managing risk.
“Historically, the view has been security is where innovation goes to die.”
Buzek also noted that compliance should not be the sole measure of security adding, “A retailer may be compliant with standards, but this doesn't mean they are secure.”
Burroughs concurred by saying, “The security risks are increasing in retail and the bad guys are getting smarter. The industry needs to come together when it comes to security. We have a huge responsibility to protect that data, and if you don’t overlay it with security from a policy, practice, execution and digital standpoint, then it’s all for nothing. One retailer's loss is not a competitive advantage.”
To learn more about Verizon’s solutions for the retail sector at NRF’s Big Show, please visit the Verizon booth at the Jacob Javits Convention Center or click here.
