Digital transformation in retail: Transform or Perish

Digital technologies have disrupted many traditional business models, by transforming or creating a whole new business model. Uber, Airbnb, Skype, Alibaba, etc. are some of the best examples for the early disrupters who paved the way for new digital business models, thanks to digital disruption/ transformation. However, if we take the retail industry, it is not yet fully digitized, except for some early adopters. In the coming years, many key players would be embracing digitization and the trend will reshape the industry.

With advancements in technologies, availability of real-time data and analytics, retail industry will be transformed to meet consumer preferences as they evolve. Unlike the old days, the consumer has access to the product or service information and different purchase options. Online purchases have elevated the customer experience with more personalization. According to IDC Research, by 2020, at least 55% of all organizations will become digital with new business models and digitally enabled products and services.

To remain competitive in this rapidly changing industry, retailers must leverage the latest digital technologies and transform themselves to meet the changing consumer behaviour. They must leverage digital transformation technologies and create a new business model by placing the customer in the anchor position.

What is digital transformation?

Digital transformation is using digital technologies to create new — or modify existing — business processes, culture, and customer experiences to meet changing business and market requirements. This reimagining of business in the digital age is digital transformation.  In retail, it is nothing but moving from a product-centric approach to a customer-centric approach by extending hyper-personalized customer experience.

What are the challenges retailers face in their digital transformation journey?

Multi-channel buying experiences:

With the staggering growth in e-commerce, in-store purchases have come down. A good majority of consumers still prefer retail shops as they want to see, touch, feel, and try the product before they make a purchase. They may gather product information online and make an offline purchase or try the product and order online. This shows that consumers prefer a combination of both. Retailers who try to bridge the gap between online and offline and go ‘phygital’, stands a better chance to win the customer. Retailers must leverage the latest technologies to create an omnichannel customer experience, which enables them to extend personalized offers across channels.

Demand for seamless, superior customer experience:

A seamless customer experience allows both online and offline stores to complement each other rather than compete to keep customers coming back for more. Customers expect in-store retailers to keep track of their online purchases and treat them as loyal customers when they visit the store. Retailers must use advanced analytics for capturing customer data and produce meaningful insights to create an integrated customer experience.

Customer loyalty is driven by experience:

Customer experience fuels customer loyalty than just product features. Even if the retailers offer superior products, the customer is delighted only if they provide him with a superior experience. Though pricing offers and promotions are building blocks of customer experience, hyper-personalization is the critical factor. Retailers who can predict customer behaviour, anticipate their needs, and extend personalized offers exclusively for them via their preferred channel creates a profoundly loyal customer.

Key elements of digital transformation strategies in the retail industry

In-store experience

Ensuring better customer engagement and rich in-store experiences enable retailers to connect with customers through all touch points and influence buying behaviour. They can leverage beacons, IoT devices, and smart shelves to delight customers with in-store navigation, real-time product pricing, and offers.

Optimize consumer journey

Optimizing end-to-end customer experience across the customer lifecycle journey plays a crucial role in mitigating customer churn and ensuring customer loyalty. Retailers must leverage data analytics technologies to understand customer behaviour and preferences to provide tailor-made personalized offers or product recommendations in each stage of the customer lifecycle journey.

Advanced payment solutions

Frictionless payments or digital payment terminals enable consumers to move from cashless to cardless, significantly reducing transaction times.

Customer service

Advancement in artificial intelligence and machine learning technologies has changed customer care interaction by automating routine services which don’t require human intervention. Using a digital bot powered by AI & ML technologies enable retailers to answer standard questions, handle returns, help customers with product specification queries, etc. efficiently and thus improving the customer experience.

Digital transformation is key to success for retailers, perform or perish

Hyper-personalized customer experience stands tall in this digital economy. To win the modern customer, retailers must create a superior shopping experience that sets them apart from the competition. They must establish an exceptional omnichannel experience irrespective of the channels to win retail customers.

Can You Run a Hotel Chain from a Mobile Device?

The next time you leave your house, take a look around you. Wherever you are, and whoever you’re with, there is sure to be one commonality observed – the presence of a mobile device. Mobile technology and the digital age have long since descended upon our daily experience and, in many ways, completely transformed how we engage with the world both professionally and personally.

Mobile devices are the 24/7 hub of information, digital connection, and self-service convenience. It is what we use to call or text our loved ones, answer emails on the go, engage on social media, get answers to burning questions, capture memorable moments and growth opportunities.

It should come as no surprise that mobile is transforming the travel and hospitality industry as we know it, both from an external perspective (guest-facing) and an internal perspective (end-to-end operations). Mobile, cloud-based technology plays an integral role for today’s hoteliers, empowering them to meet the guest demand for convenience and personalization while delivering enhanced data capture, increased automation, seamless connectivity, and more. The saturation of mobile also means that guests — and staff — expect easy-to-use interfaces and seamless cross-device experiences.

According to a recent travel trends report, 88% of hotel guests wish to have a mobile application that can deliver them a personalized experience. Furthermore, 70% of millennials are likely to book holiday accommodations using a tech amenity like mobile payments, Smart TVs, or keyless entry. From an operational perspective, digital transformation is predicted to play a significant role in business growth across sectors like hospitality in the next decade.

Deloitte reports that the implementation of digital technologies can help accelerate progress towards enterprise goals such as financial returns, workforce diversity, and environmental targets by 22%. Surveys with top executives also reveal that digital transformation’s top benefits include improvement of operational efficiency (40%), faster time to market (36%), and meeting customer expectations (35%).

In this way, mobile technology isn’t just a part of the future of hospitality – it is the future of hospitality.

Hotel Guests Crave a Mobile Experience, Including Apps

Consider this: Hotel mobile applications help approximately 70% of travelers make booking decisions, and about 74% of travelers say they would prefer using a hotel application for booking and other details. Moreover, 62% of guests would be likely or very likely to check-in to a hotel via an app, 77% would like to request room service and other hotel facilities through the use of their mobile, and hotels that offer a mobile app see an 18% increase in room service orders.

Finally, there are currently 5.22 billion unique mobile phone users around the world (two-thirds of the entire worldwide population), and research reveals that 76% of consumers make purchase decisions on mobile devices because it “saves them time.”

Believe it or not, this is still only the tip of the iceberg. The mobile revolution is already well underway. The use of mobile apps within hotels creates an environment in which high-touch, traditional service is effectively paired with seamless, digital convenience. One service model does not replace the other; instead, they work in a lock-step to ensure guest service is continuously delivered according to brand standards, no matter the size or scale of the property. Those guests who prefer an in-person service exchange will benefit from enhanced staff engagement and quick response times. In contrast, those guests that prefer the instant gratification and autonomy provided by a mobile app will readily embrace a digital self-service experience.

Mobile apps offer a wealth of opportunity for hotels – they can act as a digital room key, a thermostat or entertainment hub, a marketing medium, a portal of information (social media accounts, loyalty rewards, 24/7 mobile concierge assistance, local information, amenity details, etc.) a means to check-in and out of the hotel, a booking system for amenities, upgrades, and experiences, and so much more. The flexibility, accessibility, and convenience offered by mobile apps can not only improve guests’ on-property experience but establish new opportunities for engagement and guest connection that contribute to enhanced guest loyalty.

This is especially important when we look to the post-pandemic landscape, as the hospitality industry struggles to hire back and retain key talent. While the industry has always grappled with high staff turnover, the impact of the COVID-19 pandemic has exacerbated this skills gap and, as a result, hotel brands must learn to do more with less. In many cases, the only way to effectively meet ever-evolving guest demands – especially on the heels of the pandemic, when enhanced safety protocols and procedures remain the primary focus – is to invest in digital technology that helps to offset operational demand.

To this effect, McKinsey reveals that the most successful organizations that dealt with the pandemic reported a variety of technology-related capabilities. With the help of mobile apps, hoteliers can effectively maximize staff productivity by automating cumbersome tasks that were once left to manual devices. This empowers staff members to redirect their time and energy where it matters most: the guest experience and their continued safety and satisfaction.

Can Hoteliers Effectively Manage Their Property from a Mobile Device?

Perhaps one of the most critical roles mobile technology has played in the hospitality industry is in the long-awaited departure from legacy platforms. In the past, core hospitality platforms such as PMS, CRS, and RMS were not only cumbersome and resistant to continued evolution – but their software often kept users essentially chained to the front desk or back office. Legacy technology simply couldn’t offer the on-the-go, flexible access that is now offered by cloud-based systems, which effectively allow hoteliers to manage operations at any time, from anywhere.

In a sense, these platforms were largely immobile and rigid, despite servicing an industry that runs in a 24/7, guest-centric manner. From a scalability standpoint, these systems also failed to offer easy upgrade or integration opportunities, which consistently create a bottleneck for hoteliers hoping to streamline and scale their operations while building out a more intuitive, future-friendly technology stack.

Specifically, this is where we’ve witnessed the rise of cloud-based microservices architecture. Technology vendors that aim to deliver truly flexible, cost-effective, and future-proof solutions to hotels utilize a collection of loosely coupled, vertically integrated services (applications) to implement business capabilities. In simpler terms, a microservices architecture (made famous by innovation leaders like Amazon) allows hoteliers to “break up” their software into individual components, based on the unique needs of their property, while benefiting from disparate functionality that can be connected via APIs to form the larger application ecosystem.

Moreover, utilizing a microservices framework, hoteliers are better equipped to deal with a high volume of requests while protecting the exchange of sensitive data across various platforms. When they do occur, which is rare, security issues are contained within each component rather than impacting the entire digital ecosystem.

Microservice-based architecture to enable plug-and-play software components is highly customizable – businesses can effectively build the systems they need to run their hotel precisely as they see fit. From revenue management to property management, guest relationship management, reservation management, channel management, and more, the possibilities are, quite literally, limitless. If a hotelier needs it, it can be created and vertically integrated. And yes, as you might have guessed, this can all be managed with ease from a mobile device. An executive from a 1,400-property hotel brand is currently running their entire business from his mobile device, with credit to the microservices architecture offered by APS (Above Property Services). Just as the mobile experience has transformed the guest experience, mobile technology is currently changing the way hoteliers do business – and it shows no signs of slowing down.

The demand for a mobile experience catered to the needs of both guests and staff alike is, quite simply, a demand that cannot be ignored or understated. Any industry that lives and dies at the hand of consumer opinion must remain increasingly agile and innovative in its service approach.

Understandably, hospitality is no exception – if anything, it is the ultimate case study. Hoteliers simply cannot expect to attract and maintain guest approval and loyalty if they remain reliant on legacy technology and resist the mobile revolution that has changed virtually every aspect of our lives. The only way to stay ahead of guest demands and industry trends is to adopt technology that allows you to move quicker than the competition. The flexibility, scalability, and functionality offered by cloud-based, mobile-first technology allows hoteliers to better serve and connect with their guests. At the same time, the convenience and high-touch personalization delivered to guests via mobile platforms and hotel apps is setting the new industry precedent for great service.

Ultimately, mobile-first technology leveraging next-generation infrastructure presents hoteliers with the opportunity to – finally – redefine what it means to be a premier hospitality provider in an increasingly digital and demanding age. In this way, continued mobile innovation is the ultimate catalyst to continued industry growth and evolution and the key to a successful hotel brand both now and in the future.

Banking as a Service (BaaS) and Top Financial Services Trends to Watch Out for in 2022.

The rapid wave of digital transformation set forth the transition of banks from rigorous to responsive, conventional to digitally savvy, and more receptive to change than ever before. Besides just being digitally established, they are moving fast-forward towards innovation and bringing a change in the industry practices.

Over the last few years, the banking sector has gone through an inevitable transformation as more and more fintech businesses come into the market. Financial services are evolving to the point where new products, channels, partnerships, and opportunities are being created. At the heart of this digital storm, lies the concept of Banking as a Service (BaaS).

So, what is Banking as a Service (BaaS)?

In simple words, Banking as a Service (BaaS) is the provision of banking products and services through third-party distributors. It is an end-to-end approach that uses APIs to connect fintech companies and other third-party organizations to a bank’s system. This helps such third-party Fintech organizations build innovative financial services upon the provider bank’s regulated infrastructure while enabling open banking services.

Banking as a Service (BaaS), disaggregating the traditional banking value chain.

The typical structural functions of a bank as we all know are accepting deposits, lending deposits to businesses, remittance, and payment processing. To facilitate these, banks require huge investments and other physical assets like property, infrastructure, etc. All these processes create gridlocks.

BaaS is bringing revolutionary changes in the finance industry by reconfiguring the value chain and promoting new sources of growth. FinTech companies & Non-banking Financial Services providers are working with traditional banks to create BaaS that enables innovative, specialized offers to get to market faster by combining the strengths of both institutions. With increasing problems of customers with existing banking barriers of regulation, security, and technology, Baas is delivering fast, agile and seamless offerings. The winning factor of BaaS is the ability to capitalize on technology investments and create value.

According to Finextra, the top companies that are actively pioneering BaaS strategies and have already experienced all the advantages first-hand are solaris Bank, Bankable, Starling Bank, Pi1, Green Dot, and BBVA.

The future of banking is driven by next-generation technologies, enabling customers to make seamless, safe, and rapid payments in order to meet their changing needs. Let’s look into some of the key trends that are disrupting the banking industry in 2022 and opening new doors of growth for banking.

Small business owner showing employee new plan on tablet computer

Embedded Finance or embedded banking: According to Juniper Research, the value of the embedded finance market will exceed $138 billion in 2026, from just $43 billion in 2021. Embedded finance is the seamless integration of financial services into a typically non-financial platform, enabling customers to use apps to avail banking services. Apart from the easy-to-use user experience, embedded finance is having a great deal of success because of its already existing broad customer base.  In addition to embedded payments, there are also emerging trends for embedded credit which allows customers to take credit within the non-financial platforms. For example, Amazon offers EMI options which purchasing any product. Moreover, embedded investments and insurance are integrated within the non-financial apps for a smooth customer experience. In fact, embedded insurance has the potential to increase the purchase of insurance for high-value products among eCommerce customers. Research reveals embedded insurance premiums to grow to over $10 billion in 2026, from just $3.8 billion in 2021.  

Emerging technologies in financial services: Advanced technologies like AI (Artificial Intelligence), Machine Learning, Blockchain, Internet of things (IoT) are rapidly transforming customer experiences by increased responsiveness, security, transparency, and time efficiency. Today, customers are exploring the benefits of open banking where they are thoroughly aware of their financial condition, they can plan investments, compare the alternatives and make better financial decisions.

Increase in Mobile Banking: According to 2020 mobile banking survey, approximately 58% of respondents indicated that they were visiting branches less frequently due to the pandemic; among them, over 61% indicated they were also using mobile apps more frequently. This trend is likely to continue as users are more comfortable than ever in availing mobile banking. Mobile banking enables users to have account information access, transaction access, investments, support services, and news and offers alerts. One of the biggest reasons for the rapid growth of this trend is because users can conduct almost all sorts of banking activities anywhere, anytime. This has further helped the bank to cut down on its operational costs by maintaining customer satisfaction.

To conclude, both banks and fintech’s are imbibed in a symbiotic relationship. The difference between the structure and functions of the two is even making the relationship more valuable. Along with the provisions of banking infrastructure, regulatory legitimacy, and the existing customers who still rely on banks; fintech brings the freedom to create, design, and experiment, offering user-friendly and tailor-made solutions for the customers. Finally, it would not be wrong to say that banks, fintech’s, and BaaS firms are most effective when they collaborate to reduce risk, maintain compliance, and provide the modern financial solutions that customers demand.

Future of automation in transportation & logistics industry

Like many other industries, the transportation and logistics industry is poised to grow exponentially with the advancements in technologies. As the latest technologies are redefining traditional business models, they must adapt themselves to stay ahead of the competition. According to Mckinsey, many operations will be automated by 2030, as artificial intelligence takes over the many repetitive activities that logistics companies perform. With endless possibilities in machine learning, artificial intelligence, robotics, and IoT, enterprises are looking at automation to streamline logistics on a global scale. 

Factors driving adoption of automation 

High per capita cost of manual labour 

Enterprises may find it challenging to find skilled labour, or they cannot meet the per capita cost for maintaining a large manual labour force. Because of fierce market competition, enterprises must keep their expenses to the minimum to win this race. Also, it is not an ideal solution to hire more labour to meet fluctuating demand and supply. To address this situation, enterprises can leverage automation as the best choice.

Technical advancements

Technological advancements in artificial intelligence, machine learning technologies, and IoT is redefining the entire ecosystem, and transportation & logistics is not spared. From planning until execution, AI will play a vital role such as automated transportation, order prediction, optimizing warehouse locations in line with requirements. However, lack of clarity on which technology will emerge as the winner may create some amount of confusion among the organizations to channelize and prioritize their investment in these technologies. 

How is automation moulding the future of logistics industry?

Automated warehouse

Warehouse automation is one of the first areas companies try to attend when it comes to investing in automation. On a bigger scale, it encapsulates the automation of existing processes to improve efficiency, reliability, enhance accuracy, and leads to improved ROI. Bringing inventory to the order picker to minimize his movements inside the warehouse, automated storage and retrieval systems (AS/RS), automated carrying vehicles, automatic conveyors, etc. are some areas where automation can play a significant role in a warehouse. 

On-demand Automated trucks

Consumers have moved from owning a product to avail its benefits- the sharing economy. Uber and Airbnb are classic examples of how taking away the ownership of privileged customers. Transportation & Logistics industry is also witnessing the same “shared economy” model in the form of on-demand automated trucks. On-demand autonomous trucking improves the efficiency of freight movement and reduces the increased cost of hiring and training drivers. The autonomous truck would work round the clock with double the work done by non-automated trucks. On-demand trucks remove the burden of enormous initial capital investments from the organizations, reduced transportation costs, and ultimately elevate customers with competitive prices. 

Real-time tracking

Consignment delivery has always been a significant concern for enterprises as timely delivery of goods is directly proportional to customer experience. Real-time monitoring can enable logistics providers to address demurrage and detention problems and take corrective measures such as informing the customers about any possible delays due to traffic or bad weather, resulting in reduced failed delivery instances and improved customer satisfaction. 

Automated Analytics Systems 

In this era of “Data is the new Oil,” T&L companies must leverage the power of data analytics to stay ahead of the competition. Those organizations who rely on traditional or outdated IT systems can’t drive insights from available data and hence fails to understand and meet customer preferences and market dynamics. T&L companies are sitting on a vast amount of data which is not explored for generating insights such as customer churn prediction, demand generation analysis, and supply shortage prediction.  Automating the entire system help enterprises to create actionable insights periodically and salespersons can act accordingly. Sales figures can directly be induced back to the system from sales POS, and the system can generate revised insights to best suit the current situation. 

Automation: Gateway to the future

Though Transportation and Logistics companies have been relying on advanced technologies to handle the complex network, they haven’t explored the commercial side of automation yet. When employed correctly, automation can substantially improve organizational efficiency, sales growth, performance, reduce the cost, and most importantly increased revenue. 

 

 

Sarabi Tech and StreetGooser announces strategic partnership

Nairobi & BangaloreJul. 20, 2022 – Sarabi Tech and StreetGooser are pleased to announce they have entered into a strategic partnership, combining Sarabi Tech’s cloud computing technology services with StreetGooser’s world class Accommodation Management Software and next-gen technology services.

With technology playing an increasingly critical role in every aspect of business, companies recognize that they need to accelerate the development of digital solutions to ensure they remain on the competitive vanguard.

The SarabiStreetGooser partnership brings together deep skills in business and technology strategy, cloud computing, technology development and deployment, and organizational change management to help support clients through successful transformations. 

“The Sarabi-StreetGooser partnership is a powerful combination. StreetGooser’s understanding of complex digital product interactions, its deep engineering expertise, and Agile, collaborative approach is uniquely complimentary to how the Sarabi team works. We believe this helps to generate industry leading technology products and platforms,” said Peter Mukulu, Sarabi Tech Company’s founder and Chief Executive Officer. “With 14 sales offices across Africa, along with close-to-client locations in East Africa, West Africa and South Africa and the added capabilities of over 50 StreetGooser employees, this partnership will allow us to drive far more business impact for our clients.”

“Partnering with Sarabi Tech to deliver transformation for our clients will allow us to provide the very best business, travel technology solutions on which we’ll conceive, design, and build the next generation of transformative enterprise and digital products and platforms,” said John Varghese, StreetGooser CEO. “Together, working as one team, we will unlock the full potential of digital transformations and place our clients on the best path for success in the new digital business landscape.”

Additionally, StreetGooser will become part of the Sarabi Alliance Ecosystem, a network of partnerships that provides proprietary access to tools, technologies, and delivery capabilities that help Sarabi teams deliver breakthrough client results.

By virtually connecting Sarabi Tech’s more than 20 consultants with StreetGooser’s deep next-gen technology and engineering expertise, the collaboration represents a step-change in the way both businesses address the needs of the market.