News and Trends Analysis

End of "High Street Retail" As We Know It…..

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More than 2,000 UK jobs were axed yesterday, as Game Group closed hundreds of shops after the company collapsed into administration. The beleaguered video games retailer, which had 610 UK stores, was unable to meet a £21m second-quarter rental payment due on Sunday and appointed the accountancy firm PwC as administrator. Is this the end of “High Street Retail” as we know it? Is it the beginning of the end? 

The writing was on the wall for Game for some time now. Earlier this month,the struggling video games retailer had confirmed that a number of its suppliers were refusing to do business with the company, sending its shares down 63% to 1.29p. Back then Game said that while it was trying to resolve the matter “as quickly as possible”, it was unsure if its efforts would be successful.

The Game is not the only retail business struggling for the past few years. Almost all high-street retailers have recorded reduced operating margins and profits, if at all they were there. The difficulties at Game are testament to the current squeeze on living costs coupled with a change in shopping habits and games technology. The group has also been battered by competition from cheaper rivals on the internet, such as Amazon and Play.com, and the major supermarkets. Separately, many people now download game Apps direct to tablets or smart phones, rather than buying software to be loaded in to consoles like the PlayStation, xBox on Nintendo Wii.

What the Game story tells us however is something unique where a Technology brand is being eaten by fast evolving technology business models. As Matthew Warman states in the Telegraph, “the story of Game is simply the first taste of what the web is doing to global retail – its products happen to be bought by users who migrated quickly to the web. All other specialist retailers are being challenged online: Whittards, to take just one example, is under pressure from specialist tea and coffee retailers such as Teahorse and Kopi, who will send subscribers superb selections every month, and cater to profitable, premium niches yet don’t have the overheads of high street rents and other associated costs. Many consumers simply see that they don’t have the inconvenience of shopping. Where Game led, even the most aromatic of products is set to surely follow.” 



It was not so long ago that another high-profile retail venture went bust in the UK. It was in November 2011 that, Carphone Warehouse announced that it was to close all of its 11 Best Buy stores across the UK. The first Best Buy store in the UK only opened in April of last year. But the outlets failed to make a profit. Carphone Warehouse and Best Buy initially planned to open 200 Best Buy stores across the UK and continental Europe. But clearly they had to abandon those plans well and truly before they could take-off. Is there market left for technology shopping on UK high-street? Probably there is and there will be always that small niche segment of shoppers who prefer to touch their electronic goods, CDs, Games and likes before they buy them. But that segment is shrinking all the time and internet players will certainly be calling the shots in this segment of Retail market.

End of "High Street Retail" As We Know It…..

by
More than 2,000 UK jobs were axed yesterday, as Game Group closed hundreds of shops after the company collapsed into administration. The beleaguered video games retailer, which had 610 UK stores, was unable to meet a £21m second-quarter rental payment due on Sunday and appointed the accountancy firm PwC as administrator. Is this the end of “High Street Retail” as we know it? Is it the beginning of the end? 

The writing was on the wall for Game for some time now. Earlier this month,the struggling video games retailer had confirmed that a number of its suppliers were refusing to do business with the company, sending its shares down 63% to 1.29p. Back then Game said that while it was trying to resolve the matter “as quickly as possible”, it was unsure if its efforts would be successful.

The Game is not the only retail business struggling for the past few years. Almost all high-street retailers have recorded reduced operating margins and profits, if at all they were there. The difficulties at Game are testament to the current squeeze on living costs coupled with a change in shopping habits and games technology. The group has also been battered by competition from cheaper rivals on the internet, such as Amazon and Play.com, and the major supermarkets. Separately, many people now download game Apps direct to tablets or smart phones, rather than buying software to be loaded in to consoles like the PlayStation, xBox on Nintendo Wii.

What the Game story tells us however is something unique where a Technology brand is being eaten by fast evolving technology business models. As Matthew Warman states in the Telegraph, “the story of Game is simply the first taste of what the web is doing to global retail – its products happen to be bought by users who migrated quickly to the web. All other specialist retailers are being challenged online: Whittards, to take just one example, is under pressure from specialist tea and coffee retailers such as Teahorse and Kopi, who will send subscribers superb selections every month, and cater to profitable, premium niches yet don’t have the overheads of high street rents and other associated costs. Many consumers simply see that they don’t have the inconvenience of shopping. Where Game led, even the most aromatic of products is set to surely follow.” 



It was not so long ago that another high-profile retail venture went bust in the UK. It was in November 2011 that, Carphone Warehouse announced that it was to close all of its 11 Best Buy stores across the UK. The first Best Buy store in the UK only opened in April of last year. But the outlets failed to make a profit. Carphone Warehouse and Best Buy initially planned to open 200 Best Buy stores across the UK and continental Europe. But clearly they had to abandon those plans well and truly before they could take-off. Is there market left for technology shopping on UK high-street? Probably there is and there will be always that small niche segment of shoppers who prefer to touch their electronic goods, CDs, Games and likes before they buy them. But that segment is shrinking all the time and internet players will certainly be calling the shots in this segment of Retail market.

Davos 2012 Highlights

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In keeping with the tradition of opening blog posts of the year with reports from Davos, listing highlights from Davos 2012… 

 Digital Norms

  • The digital age brings transparency but also increasing threats to confidentiality.
  • Greater and more coherent regulation is needed, but there is a vacuum of regulatory bodies.
  • Corporations seeking to enter the Chinese market may be required to compromise their privacy values.


Growth and Employment Models

  • The development of a human capital index can help close the gap between the skills that are available and what business requires.
  • Education is the key piece in growth and employment.
  • Entrepreneurship should be actively encouraged.
  • Governments should rethink policies that impede the global mobility of talent.
  • Social protection and collective bargaining rights promote growth.

Leadership and Innovation Models

  • Accelerated communications and public demand for immediate information complicate the tasks of modern leaders.
  • The new brand of leader needs to respond both to his/her domestic constituency and to a global one as well.
  • Trust is the key issue and establishing trust depends on integrity, openness and commitment.
  • Social change is being driven by technology, and while leaders might not understand all aspects, success depends on picking subordinates who do.

 Social and Technological Models

  • New technologies offer many benefits, but also raise serious social, political, legal and ethical issues.
  • Developments in brain science promise help for people suffering from Parkinson’s Disease, depression and other disorders.
  • People can now customize technology to meet their individual needs and desires.
  • The gap between scientific and technological progress and the understanding of the general public is growing. New media can provide platforms for education, discussion and debate on the issues raised by advances in science and technology.

 The Future Enterprise Model

  • If managers want to influence behaviour, they should start by building a favourable working environment.
  • Three new major elements have emerged in the operating environments of enterprises in the last decade: greater demands from stakeholders, greater connectivity and faster change.
  • Old management values remain important but must be re-emphasized.
  • Decisions can often be implemented provisionally and tweaked along the way.

Sustainability and Resource Models

  • Modelling and future analyses have the potential to help governments understand complexity.
  • Technology is making possible the production of biofuels and polymers by various bacteria.
  • China can be looked to as a role model in the energy sector.
  • Food security is interlinked with other sectors: land, energy and water; managing this nexus is critical.
  • Moving forward to meet today’s challenges – and seizing the opportunities presented by new technologies – will require political leadership. 

Innovation Ecosystems 2.0

  • The focus of innovation is moving from the enterprise to national and transnational levels.
  • Some 50 countries have national innovation agencies and chief innovation officers responsible for driving innovation strategies.
  • Innovation is more than a process; it is an ecosystem with multiple stakeholders.
  • The global agenda on innovation needs to address global challenges. 

Shaping New Models with Technology Pioneers

  • Advances in educational technology will rapidly quadruple the number of people with access to full-time learning, causing a new revolution in education.
  • The ability to monitor and analyse a body’s biomarkers using advanced molecular techniques will lead to a fundamental change in how we discover, approve and pay for drugs.
  • The Internet was built to have a maximum of 3 billion devices connected to it. Capacity is running out and security is not robust.

  Source – World Economic Forum

Davos 2012 Highlights

by

In keeping with the tradition of opening blog posts of the year with reports from Davos, listing highlights from Davos 2012… 

 Digital Norms

  • The digital age brings transparency but also increasing threats to confidentiality.
  • Greater and more coherent regulation is needed, but there is a vacuum of regulatory bodies.
  • Corporations seeking to enter the Chinese market may be required to compromise their privacy values.


Growth and Employment Models

  • The development of a human capital index can help close the gap between the skills that are available and what business requires.
  • Education is the key piece in growth and employment.
  • Entrepreneurship should be actively encouraged.
  • Governments should rethink policies that impede the global mobility of talent.
  • Social protection and collective bargaining rights promote growth.

Leadership and Innovation Models

  • Accelerated communications and public demand for immediate information complicate the tasks of modern leaders.
  • The new brand of leader needs to respond both to his/her domestic constituency and to a global one as well.
  • Trust is the key issue and establishing trust depends on integrity, openness and commitment.
  • Social change is being driven by technology, and while leaders might not understand all aspects, success depends on picking subordinates who do.

 Social and Technological Models

  • New technologies offer many benefits, but also raise serious social, political, legal and ethical issues.
  • Developments in brain science promise help for people suffering from Parkinson’s Disease, depression and other disorders.
  • People can now customize technology to meet their individual needs and desires.
  • The gap between scientific and technological progress and the understanding of the general public is growing. New media can provide platforms for education, discussion and debate on the issues raised by advances in science and technology.

 The Future Enterprise Model

  • If managers want to influence behaviour, they should start by building a favourable working environment.
  • Three new major elements have emerged in the operating environments of enterprises in the last decade: greater demands from stakeholders, greater connectivity and faster change.
  • Old management values remain important but must be re-emphasized.
  • Decisions can often be implemented provisionally and tweaked along the way.

Sustainability and Resource Models

  • Modelling and future analyses have the potential to help governments understand complexity.
  • Technology is making possible the production of biofuels and polymers by various bacteria.
  • China can be looked to as a role model in the energy sector.
  • Food security is interlinked with other sectors: land, energy and water; managing this nexus is critical.
  • Moving forward to meet today’s challenges – and seizing the opportunities presented by new technologies – will require political leadership. 

Innovation Ecosystems 2.0

  • The focus of innovation is moving from the enterprise to national and transnational levels.
  • Some 50 countries have national innovation agencies and chief innovation officers responsible for driving innovation strategies.
  • Innovation is more than a process; it is an ecosystem with multiple stakeholders.
  • The global agenda on innovation needs to address global challenges. 

Shaping New Models with Technology Pioneers

  • Advances in educational technology will rapidly quadruple the number of people with access to full-time learning, causing a new revolution in education.
  • The ability to monitor and analyse a body’s biomarkers using advanced molecular techniques will lead to a fundamental change in how we discover, approve and pay for drugs.
  • The Internet was built to have a maximum of 3 billion devices connected to it. Capacity is running out and security is not robust.

  Source – World Economic Forum

Multi-Channel Retailing Takes a new Meaning with Retail Apps

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Retail Reference Architecture, it’s evolution and real-life pragmatic implementations happens to be one of my key interest area. So far on this blog I have discussed the concept of Retail Reference Architecture, proposed a concise yet complete Simplified Retail Reference Architecture and also shared some of the innovations from real-life implementations of Retailers such as ASOS. As a matter of fact I do follow fortunes of ASOS with great interest. To me this is a bold, new take on the science of retailing (…some might call is an Art of Retailing) which combines best practices from innovator’s such as Amazon.com and presents a unique and deceptively simple business model. This post shares some of my further observations about ASOS and more importantly how they continue to lead the innovative use of Information Technology in the retail space.

Since summer ASOS  has launched its App for the Apple range of mobile devices. The new service has been designed for iPhone, iPad and iPod Touch users, and along with the function to ‘save for later’ any item of interest sold by the trader, the app also includes a locator for local drop-off points for customers looking to return unwanted purchases.
Free to download, the new app lets you browse and shop directly from fashion editorials, very similar to Net-à-Porter’s. The app comes with trend reports and also contains content originally produced for the online version of the Asos magazine as well as exclusive footage and features such as video and 360-degree views of clothing items. The iPad app is available for free from the App Store since August this year with both Android and iPhone versions scheduled to launch by the close of 2011. 

As the App design James Davie says, “this App design provided a series of new challenges. Most importantly striking the perfect balance between giving the user the familiar ASOS shopping experience, and the equally familiar iPad navigation experience. The final result is a balance of both which should give the user a quick, painless and enjoyable shopping experience.”  Having personally used this App now I can confirm that this is one of the best fashion retailing App available out there with intuitive navigation, fresh content, catalogue, bold designs and just tons of “coolness”! Above the cosmetics, what stands out for me is the fact that, customer accounts are totally synchronised across all of the retailer’s platforms so whether they are using the new apps, the standard website or the mobile site all of their details will remain consistent.
This App and iPad appear to be made for each other and not just a lift-off from ecommerce site made to fit with iPad format. Just to clarify I am not a regular ASOS shopper but as a keen Retail Technology practitioner and follower…this company and it’s innovation are worth watching!

Multi-Channel Retailing Takes a new Meaning with Retail Apps

by
Retail Reference Architecture, it’s evolution and real-life pragmatic implementations happens to be one of my key interest area. So far on this blog I have discussed the concept of Retail Reference Architecture, proposed a concise yet complete Simplified Retail Reference Architecture and also shared some of the innovations from real-life implementations of Retailers such as ASOS. As a matter of fact I do follow fortunes of ASOS with great interest. To me this is a bold, new take on the science of retailing (…some might call is an Art of Retailing) which combines best practices from innovator’s such as Amazon.com and presents a unique and deceptively simple business model. This post shares some of my further observations about ASOS and more importantly how they continue to lead the innovative use of Information Technology in the retail space.

Since summer ASOS  has launched its App for the Apple range of mobile devices. The new service has been designed for iPhone, iPad and iPod Touch users, and along with the function to ‘save for later’ any item of interest sold by the trader, the app also includes a locator for local drop-off points for customers looking to return unwanted purchases.
Free to download, the new app lets you browse and shop directly from fashion editorials, very similar to Net-à-Porter’s. The app comes with trend reports and also contains content originally produced for the online version of the Asos magazine as well as exclusive footage and features such as video and 360-degree views of clothing items. The iPad app is available for free from the App Store since August this year with both Android and iPhone versions scheduled to launch by the close of 2011. 

As the App design James Davie says, “this App design provided a series of new challenges. Most importantly striking the perfect balance between giving the user the familiar ASOS shopping experience, and the equally familiar iPad navigation experience. The final result is a balance of both which should give the user a quick, painless and enjoyable shopping experience.”  Having personally used this App now I can confirm that this is one of the best fashion retailing App available out there with intuitive navigation, fresh content, catalogue, bold designs and just tons of “coolness”! Above the cosmetics, what stands out for me is the fact that, customer accounts are totally synchronised across all of the retailer’s platforms so whether they are using the new apps, the standard website or the mobile site all of their details will remain consistent.
This App and iPad appear to be made for each other and not just a lift-off from ecommerce site made to fit with iPad format. Just to clarify I am not a regular ASOS shopper but as a keen Retail Technology practitioner and follower…this company and it’s innovation are worth watching!

Gartner: Top 10 Strategic Technologies for 2012

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Gartner recently published the top 10 technologies and trends that will be strategic for most organizations in 2012. Gartner defines a strategic technology as one with the potential for significant impact on the enterprise in the next three years. It may be an existing technology that has matured and/or become suitable for a wider range of uses. It may also be an emerging technology that offers an opportunity for strategic business advantage for early adopters or with potential for significant market disruption in the next five years. These technologies impact the organization’s long-term plans, programs and initiatives. They are as following;

Media Tablets and Beyond. Users can choose between various form factors when it comes to mobile computing. No single platform, form factor or technology will dominate and companies should expect to manage a diverse environment with two to four intelligent clients through 2015.

Mobile-Centric Applications and Interfaces. The user interface (IU) paradigm in place for more than 20 years is changing. UIs with windows, icons, menus, and pointers will be replaced by mobile-centric interfaces emphasizing touch, gesture, search, voice and video.

Contextual and Social User Experience. Context-aware computing uses information about an end-user or objects environment, activities, connections and preferences to improve the quality of interaction with that end-user or object.

Internet of Things. The Internet of Things (IoT) is a concept that describes how the Internet will expand as sensors and intelligence are added to physical items such as consumer devices or physical assets and these objects are connected to the Internet.

App Stores and Marketplaces. Application stores by Apple and Android provide marketplaces where hundreds of thousands of applications are available to mobile users. Gartner forecasts that by 2014, there will be more than 70 billion mobile application downloads from app stores every year.

Next-Generation Analytics. Analytics is growing along three key dimensions:

  1. From traditional offline analytics to in-line embedded analytics.
  2. From analyzing historical data to explain what happened to analyzing historical and real-time data from multiple systems to simulate and predict the future.
  3. from structured and simple data analyzed by individuals to analysis of complex information of many types (text, video, etc…) from many systems

Big Data. The size, complexity of formats and speed of delivery exceeds the capabilities of traditional data management technologies; it requires the use of new or exotic technologies simply to manage the volume alone.

In-Memory Computing. Gartner sees huge use of flash memory in consumer devices, entertainment equipment and other embedded IT systems. In addition, it offers a new layer of the memory hierarchy in servers that has key advantages — space, heat, performance and ruggedness among them.

Extreme Low-Energy Servers. The adoption of low-energy servers potentially delivering 30 times or more processors in a particular server unit with lower power consumption vs. current server approaches.

Cloud Computing. Cloud is a disruptive force and has the potential for broad long-term impact in most industries. While the market remains in its early stages in 2011 and 2012, it will see the full range of large enterprise providers fully engaged in delivering a range of offerings to build cloud environments and deliver cloud services.

“These top 10 technologies will be strategic for most organizations, and IT leaders should use this list in their strategic planning process by reviewing the technologies and how they fit into their expected needs,” said David Cearley, vice president and Gartner fellow.

The complete related Gartner press release can be accessed here.

Gartner: Top 10 Strategic Technologies for 2012

by

Gartner recently published the top 10 technologies and trends that will be strategic for most organizations in 2012. Gartner defines a strategic technology as one with the potential for significant impact on the enterprise in the next three years. It may be an existing technology that has matured and/or become suitable for a wider range of uses. It may also be an emerging technology that offers an opportunity for strategic business advantage for early adopters or with potential for significant market disruption in the next five years. These technologies impact the organization’s long-term plans, programs and initiatives. They are as following;

Media Tablets and Beyond. Users can choose between various form factors when it comes to mobile computing. No single platform, form factor or technology will dominate and companies should expect to manage a diverse environment with two to four intelligent clients through 2015.

Mobile-Centric Applications and Interfaces. The user interface (IU) paradigm in place for more than 20 years is changing. UIs with windows, icons, menus, and pointers will be replaced by mobile-centric interfaces emphasizing touch, gesture, search, voice and video.

Contextual and Social User Experience. Context-aware computing uses information about an end-user or objects environment, activities, connections and preferences to improve the quality of interaction with that end-user or object.

Internet of Things. The Internet of Things (IoT) is a concept that describes how the Internet will expand as sensors and intelligence are added to physical items such as consumer devices or physical assets and these objects are connected to the Internet.

App Stores and Marketplaces. Application stores by Apple and Android provide marketplaces where hundreds of thousands of applications are available to mobile users. Gartner forecasts that by 2014, there will be more than 70 billion mobile application downloads from app stores every year.

Next-Generation Analytics. Analytics is growing along three key dimensions:

  1. From traditional offline analytics to in-line embedded analytics.
  2. From analyzing historical data to explain what happened to analyzing historical and real-time data from multiple systems to simulate and predict the future.
  3. from structured and simple data analyzed by individuals to analysis of complex information of many types (text, video, etc…) from many systems

Big Data. The size, complexity of formats and speed of delivery exceeds the capabilities of traditional data management technologies; it requires the use of new or exotic technologies simply to manage the volume alone.

In-Memory Computing. Gartner sees huge use of flash memory in consumer devices, entertainment equipment and other embedded IT systems. In addition, it offers a new layer of the memory hierarchy in servers that has key advantages — space, heat, performance and ruggedness among them.

Extreme Low-Energy Servers. The adoption of low-energy servers potentially delivering 30 times or more processors in a particular server unit with lower power consumption vs. current server approaches.

Cloud Computing. Cloud is a disruptive force and has the potential for broad long-term impact in most industries. While the market remains in its early stages in 2011 and 2012, it will see the full range of large enterprise providers fully engaged in delivering a range of offerings to build cloud environments and deliver cloud services.

“These top 10 technologies will be strategic for most organizations, and IT leaders should use this list in their strategic planning process by reviewing the technologies and how they fit into their expected needs,” said David Cearley, vice president and Gartner fellow.

The complete related Gartner press release can be accessed here.