Ecosystm had predicted that in 2020, AI and analytics would be a top priority for organisations as they embarked or continued on their Digital Transformation journeys. What we saw instead was organisations collecting the right data – but handling more pressing matters this year. They focused more on cybersecurity frameworks, enabling remote employees and the shifts in product and service delivery. In 2021, as organisations work their way to recovery, they will re-evaluate their AI and automation roadmaps, more actively. Ecosystm Advisors Alea Fairchild, Andrew Milroy and Tim Sheedy present the top 5 Ecosystm predictions for AI & Automation in 2021.
This is a summary of the AI & Automation predictions, the full report (including the implications) is available to download for free on the Ecosystm platform here.
The Top 5 AI & Automation Trends for 2021
- AI Will Move from a Competitive Advantage to a Must-Have
The best practices and leading-edge technology-centric implementations, over the years gives a very good indication of market trends. In 2018 and 2019 AI-centric engagements were few and far between – they were still in the “innovation stage” as trials and small projects. In 2020, AI was mentioned in most applications, showcased as best practices. AI is currently a competitive advantage for businesses. CIOs and their businesses are using AI to get ahead of their competitors and highlighting these practices for external recognition.
That also means that it is a matter of time before AI becomes a standard practice – processes are smart “out-of-the-box”; intelligent applications are an expectation, not the exception; systems learn because that is how they were designed, not as an overlay. If your competitors are using AI today to get ahead of you, then you need to also use AI to catch up and keep up. In 2021, having a smart business will not get you ahead of the pack – it will move you into it.
- AI Will Thrive in Areas where the Cost of Failure is Low
While organisations will be forced to adopt AI to remain competitive, initial exploration of AI solutions will be in areas that they consider low risk. The Financial Services, Retail, and other transaction-oriented industries will use AI to drive improved personalisation, increase customer retention, and improve their ability to lower risk and combat fraud. These are process-driven areas, where manual processes are being enhanced and enriched by AI. Although machine learning and other AI technologies will help improve the speed and quality of services, they will not be a replacement for many of the more complex business practices that companies and their employees frequently overlook to automate. The ‘low hanging fruit’ to add AI to will come first, with various degrees of success.
There will be industries and processes where organisations will be more skeptical about adopting AI. If Google finds a wrong translation or gives a wrong link, it is not a big concern, unlike a wrong diagnosis or wrong medication. In areas that are crucial to our well-being – such as healthcare – AI does not yet have the trust for acceptance of society. There are still questions around ethics and algorithm concerns.
- Technology Providers Will Stop Talking about AI
Technology vendors highlight what they consider their key differentiators, that show that they are ahead of the game. When every piece of software and hardware is intelligent, vendors will stop talking about the fact that they are intelligent. This may not fully happen in 2021 – but ENOUGH technology will be intelligent for those who have not yet made their software smart to understand that they cannot talk about its intelligent capabilities as that just shows they are behind the market.
The good news is that the less we hear about AI, the more intelligent applications will become. AI is quickly becoming a core capability and a base expectation. Systems that learn and adapt will be standard very soon – but be wary, as significant market changes can break these systems! Many companies learned that the pandemic broke their algorithms as times were no longer “normal”.
- Enterprises Will Seek Hyperautomation Solutions
RPA will increasingly become part of large enterprise application implementations. Technology vendors are adding RPA functionality either organically or through acquisitions to their enterprise application suites. RPA often works in conjunction with major software products provided by companies such as Salesforce, SAP, Microsoft, and IBM. Rather than having an operative enter data into multiple systems, a bot can be created to do this. Large software vendors are taking advantage of this opportunity by trying to own entire workflows. They are increasingly integrating RPA into their offerings as well as competing directly in the RPA market with pureplay RPA vendors.
As the RPA offerings continue to mature, enterprises seek to scale implementations and to automate non-repetitive processes, which require more intelligence. They will seek to automate more processes at scale. They will demand solutions that process unstructured data, handle exceptions, and continuously learn, further increasing productivity. Intelligent automation typically incorporates AI, particularly voice and vision capabilities and uses machine learning to optimise processes. Hyperautomation turbo charges intelligent automation by automating multiple processes at scale – and will become core to digital transformation initiatives in 2021.
- Businesses Will Put “Automation Targets” in Place
2020 was the year that many businesses started seeing some broad and tangible benefits from their automation initiatives. Automation was one of the big winners of the year, as many businesses took extra steps to take humans out of processes – particularly those humans that had to be in a specific location, such as a warehouse, the finance team, the front desk and so on (because of the pandemic, they were often working at home instead). Senior management is seeing the benefits of automation, and they will start to ask their teams why more processes are not automated Therefore we will start to see managers put targets around a certain percentage of tasks automated in an area – e.g. 70% of contact centre processes will be automated, 90% of the digital customer experience for a certain outcome will be automated and so on. Achieving these numbers may not be easy, but the targets will change the mindset of people designing, implementing, and improving processes.
The Retail industry has had to do a sharp re-think of its digital roadmap and transformation journey – Ecosystm research shows that about 75% of retail organisations had to start, accelerate, or re-focus their digital transformation initiatives. However, that will not be enough as organisations move beyond survival to recovery – and future successes. While retailers will focus on the shift in customer expectations, a mere focus on customer experience will not be enough in 2021. Ecosystm Principal Advisors, Alan Hesketh and Alea Fairchild present the top 5 Ecosystm predictions for Retail & eCommerce in 2021.
This is a summary of the predictions, the full report (including the implications) is available to download for free on the Ecosystm platform here.
The Top 5 Retail & eCommerce Trends for 2021
- There Will Only be Omnichannel Retailers
The value of an omnichannel offer in Retail has become much clearer during the COVID-19 pandemic. Retailers that do not have the ability to deliver using the channel customers prefer will find it hard to compete. As the physical channel becomes less important new revenue opportunities will open up for businesses operating in adjacent market sectors – companies such as food and grocery wholesalers will increasingly sell direct to consumers, leveraging their existing online and distribution capabilities.
Most customers transact on mobile device – either a mobile phone or tablet. New capabilities will remove some of the barriers to using these mobile devices. For one, technologies such as Progressive Web Apps (PWA) and Accelerated Mobile Pages (AMP) will provide a better customer experience on mobile platforms than existing websites, while delivering a user experience at par or better than mobile apps. Also, as retailers become AI-enabled, machine learning engines will provide purchase recommendations through smartwatches or in-home, voice-enabled, smart devices.
- COVID-19 Will Continue to be an Influence Forcing Radical Shifts
In driving the economic recovery in 2021, we will see ‘glocal’ consumption – emphasis on local retailers and global players taking local actions to win the hearts and minds of local consumers. There will be significant actions within local communities to drive consumers to support local retailers. Location-based services (LBS) will be used extensively as consumers on the high street carry more LBS-enabled devices than ever before. Bluetooth beacon technology and proximity marketing will drive these efforts. Consumers will have to opt-in for this to work, so privacy and relationship management are also important to consider.
But people still want to “physically” browse, and design aesthetics of a store are still part of the attraction. In the next 18 months, the concept of virtual stores that are digital twins will take off, particularly in the holiday and Spring clearance sales. Innovators like Matterport can help local retailers gain a more global audience with a digital twin with a limited technological investment. At a minimum, Shopify or other intermediaries will be necessary for a digital shop window.
- The Industry will See Artificial Intelligence in Everything
AI will increase its impact on Retail with an uptake in two key areas.
- Customer interactions. Retail AI will use customer data to deliver much richer and targeted experiences. This may include the ability to get to a ‘segment of one’. Tools will include chatbots that are more functional and support for voice-based commerce using mobile and in-home edge devices. Also, in-store recognition of customers will become easier through enhanced device or facial recognition. Markets where privacy is less respected will lead in this area – other markets will also innovate to achieve the same outcomes without compromising privacy but will lag in their delivery. This mismatch of capability may allow early adopters to enter other geographic markets with competitive offers while meeting the privacy requirements of these markets.
- Supply chain and pricing capabilities. AI-based machine learning engines using both internal and increased sources of external data will replace traditional math-based forecasting and replenishment models. These engines will enable the identification of unexpected and unusual demand influencing factors, particularly from new sources of external data. Modelling of price elasticity using machine learning will be able to handle more complex models. Retailers using this capability will be in a better position to optimise their customer offers based on their pricing strategies. Supply chains will be re-engineered so products with high demand volatility are manufactured close to markets, and the procurement of products with stable demands will be cost-based.
- Distribution Woes Will Continue
Third party delivery platforms such as Wish and RoseGal are recruiting additional international non-Asian suppliers to expand their portfolios. Amazon and AliExpress are leaders here, but there are many niche eCommerce platforms taking up the slack due to the uneven distribution patterns from the ongoing economic situation. Expect to see a number of new entrants taking up niche spaces in the second half of 2021, sponsored by major retail product brands, to give Amazon a run for their money on a more local basis.
As the USPS continues to be under strain, delivery companies like FedEx in the US who partner with the USPS are already suffering from the USPS’s operational slowdown, in both their customer reputation and delivery speed. In 2021, COVID-19 – and workers’ unions – will continue to impact distribution activities. Increased spending in warehouse automation and new retail footprints such as dark stores will be seen to make up for worker shortfalls.
- China’s Retail Models Will Expand into Other Markets
China’s online businesses operate in a large domestic market that is comparatively free of international competitors. Given the scale of the domestic market, these online companies have been able to grow to become substantial businesses using advanced technologies. All the Chinese tech giants – among them Alibaba, ByteDance, DiDi Chuxing, and Tencent – are expanding internationally.
China’s rapidly recovering economy puts those businesses in a strong position to fund a competitive expansion into international markets using their domestic base, particularly with their Government’s promotion of the country’s tech sector. It is harder to impose restrictions on software-based businesses, unlike the approach that we have witnessed the US Government take for hardware companies such as Huawei – placing constraints on mobile phone components and operating systems.
These tech giants also have significant experience in a Big Data environment that provides little privacy protection, as well as leading-edge AI capabilities. While they will not be able to operate with the same freedom in global markets, and there will be other large challenges in translating Chinese experience to other markets – these tech players will be able to compete very effectively with incumbent global companies. Chinese companies also continue to raise capital from US stock exchanges with The Economist reporting Chinese listings have raised close to USD 17 billion since January 2020.
Ecosystm research finds that 47% of organisations re-evaluated cybersecurity risks and management making it the biggest measure undertaken by IT Teams when COVID-19 hit. There is no denying any more that cybersecurity is a key business enabler. This year witnessed cybercrime escalating in all parts of the world and several governments issued advisories warning enterprises and citizens of the increase in the threat landscape, during and post COVID-19. Against this backdrop, Ecosystm Advisors, Alex Woerndle, Andrew Milroy, Carl Woerndle and Claus Mortensen present the top 5 Ecosystm predictions for Cybersecurity & Compliance in 2021.
This is a summary of the predictions, the full report (including the implications) is available to download for free on the Ecosystm platform here.
The Top 5 Cybersecurity & Compliance Trends for 2021
- There will be Further Expansion of M&A Activities Through 2021 and Beyond
As predicted last year, the market is set to witness mergers and acquisitions (M&As) to consolidate the market. The pandemic has slowed down M&A activities in 2020. However, the market remains fragmented and there is a demand for consolidation. As the cyber market continues to mature, we expect M&A activities to ramp up over the next couple of years especially once we emerge from COVID-19. Some organisations that understand the full impact of the shift to remote working and the threats it creates have embraced the opportunity to acquire, based on perceived value due to COVID-19. The recent acquisition of Asavie by Akamai Technologies is a case in point. Asavie’s platform is expected to strengthen Akamai’s IoT and mobile device security and management services.
- After a Year of Pandemic Leniency, Regulators will Get Stricter in 2021
The regulators in the EU appear to have gone through a period of relative leniency or less activity during the first few months of the pandemic and have started to increase their efforts after the summer break. Expect regulators – even outside the EU – to step up their enforcement activities in 2021 and seek larger penalties for breaches.
Governments continue to evolve their Compliance policies across broader sectors, which will impact all industries. As an example, in Australia, the Federal Government has made changes to its definition of critical infrastructure, which brings mandates to many more organisations. Governments have shown an acute awareness of the rise in cyber-attacks highlighted by several high-profile breaches reported in mainstream media. Insider threats – highlighted by Tesla, where an employee raised the allegations of bribery by unknown third parties in exchange for exfiltrating corporate information – will also lead regulators to double down on their enforcement activities.
- The Zero Trust Model Will Gain Momentum
Remote working has challenged the traditional network security perimeter model. The use of personal and corporate devices to access the network via public networks and third-party clouds is creating more opportunity for attackers. Organisations have started turning to a Zero Trust security model to mitigate the risk, applying advanced authentication and continuous monitoring. We expect the adoption of the Zero Trust model to gain momentum through 2021. This will also see an increase in managed services around active security monitoring such as Threat Detection & Response and the increased adoption of authentication technologies. With an eye on the future, especially around quantum computing, authentication technologies will need to continually evolve.
- The Endpoint Will be the Weakest Link
The attack surface continues to grow exponentially, with the increase in remote working, IoT devices and multicloud environments. Remote endpoints require the same, if not higher levels of security than assets that sit within corporate firewalls, and it will become very clear to organisations that endpoints are the most vulnerable. Remote workers are often using unsecure home Wi-Fi connections and unpatched VPNs, and are increasingly vulnerable to phishing attacks. IoT device passwords are often so weak that brute-force attackers can enter networks in milliseconds.
Although endpoint security can be dealt with through strict policies together with hardware or software authentication, the difficult part is to adopt an approach that retains a relatively high level of security without having a too negative an impact on the employee experience. Experience shows that if the security measures are too cumbersome, employees will find ways to circumvent them.
- Hackers Will Turn the Table on AI Security
Cybersecurity vendors are increasingly offering solutions that leverage AI to identify and stop cyber-attacks with less human intervention than is typically expected or needed with traditional security approaches. AI can enhance cybersecurity by better predicting attacks enabling more proactive countermeasures, shortening response times, and potentially saving cybersecurity investment costs. The problem is that the exact same thing applies to the hackers. By leveraging AI, the costs and efforts needed to launch and coordinate large hacker attacks will also go down. Hackers can automate their attacks well beyond the use of botnets, target and customise their attacks with more granularity than before and can effectively target the biggest weakness of any IT security system – people.
Already, phishing attacks account for many of the breaches we see today typically by employees being tricked into sharing their IT credentials via email or over the phone. As we move forward, these types of attacks will become much more sophisticated. Many of the deepfake videos we see have been made using cheap or free AI-enabled apps that are easy enough for even a child to use. As we move into 2021, this ability to manipulate both video and audio will increasingly enable attackers to accurately impersonate individuals.
Organisations across the world are experimenting with what work model would work best for them in 2021. The last week saw several announcements that make it clear that irrespective of the model that becomes prevalent, remote working and the hybrid/blended work model are here to stay.
Remote Working Remains a Reality in 2021
The reduced demand for office space has led companies to re-think their lease renewals and physical space requirements. Deloitte has announced that it will close 4 of its 50 offices in the UK. The four offices in Gatwick, Liverpool, Nottingham and Southampton employ around 500 people who would be allowed to move to other locations or offered permanent remote working options. Ecosystm research finds that about a quarter of global organisations expect to reduce commercial office space in 2021.
Most organisations have introduced remote working options till the end of 2020 and beyond; while some others have made working from home a permanent option. Organisations will have to re-evaluate when employees can be realistically expected to come back into the office, and many will extend their work from home policy. Amazon recently announced the extension of its work from home policy till June 2021, from January 2021. Other organisations are expected to follow suit as the virus continues to be active in many countries.
The Experimentation will Continue
Companies will continue to enable seamless collaboration that spans across virtual and physical realms. But what will be important is to see how organisations can successfully incorporate a remote working culture across its different locations. Dropbox has announced a new ‘Virtual First’ remote working policy which includes features such as the ability for employees to decline unnecessary meetings, and a way to open source their learnings with the wider business community. Dropbox will still retain some physical spaces called Dropbox Studios, that will either be repurposed office space or entirely new spaces designed for meetings, group events and special offsites. The core collaboration hours will typically be between 9am-1pm, as employees are no longer expected to be in the same locations or time zones.
Ecosystm Principal Advisor Ravi Bhogaraju says, “Flexibility (Work from home or Office Anywhere) is a company strategy and not a tactic. It needs to be evaluated within the context of the overall strategy of the company, how it creates value and how technology and talent can help provide better customer experience.”
Another experiment that was announced last week was Dubai’s efforts to revive its tourism industry. Remote working has been associated with stress and organisations are increasingly having to monitor employee emotional well-being. To overcome this, Dubai is inviting overseas remote workers to expand their workplace and remote working environment. Dubai’s new remote working program is welcoming remote workers with a valid passport, health insurance, proof of employment and a minimum monthly salary of USD 5,000 to visit and work from Dubai. Programs such as these highlights the potential change in the work environment that we might witness.
Talking about the implications of such moves on organisations, Bhogaraju says, “having everybody as free agents within the network working from anywhere – without fully enabling the process and workflows across teams and the entire organisation – will require a lot more patching or coordination. It can impact the customer experience, and also opens up the firms to compliance, tax and regulatory risks if not carefully managed – especially when cross-border work is involved.”
With experiments such as these, it will become even more important for organisations to ensure that they have the right technology in place that can not only ensure seamless access to company resources irrespective of the location of the employees but also that IT and cybersecurity teams are not overburdened by the need to secure the endpoints and network.
Other Factors to Consider
While organisations must keep working on understanding the right model that will work for them, there are some other factors that they should consider.
Ecosystm Principal Advisor, Mike Zamora says, “what employees are learning is that their home expenses are increasing – E.g. electricity, connectivity costs, and even food where employers have previously provided snacks, beverages and lunches. Increasingly this needs to be addressed by Businesses in order to maintain a strong connection with employees. If not, when the economy recovers, companies might find their talent moving to other companies.”
“As some companies have limited return to the office, the Business and Employees have learned what is essential to be completed at the office. This is usually collaborative tasks which cannot effectively be done through remote collaboration. In addition, there are some specialised assets (special work rooms for some industries) which cannot cheaply or effectively be recreated in the home environment.”
Bhogaraju also cautions, “an advantage of working from anywhere is that it opens up talent pools that were not available or accessible to employers before. However, without knowing what kind of employees would be needed to sustain the strategy on a mid to long-term basis the hiring would probably result in poor fit to the working environment – and lead to a spike in attrition as the employees would not be able to cope with the working arrangement.”
Download Ecosystm Predicts: The top 5 Future of Work Trends For 2021
The full findings and implications of The top 5 Future of Work Trends For 2021 are available for download from the Ecosystm platform. Signup for Free to download the report .
2020 has been a watershed year for Future of Work policies and technologies. Organisations are still evaluating their workplace strategies and 2021 is likely to see experiments in work models – every organisation will choose the model that works for their nature of work and their organisational culture. Against this backdrop of disruption and change, Ecosystm’s 360o Future of Work team – Audrey William, Mike Zamora, Ravi Bhogaraju and Tim Sheedy – present the top 5 Ecosystm predictions for the Future of Work in 2021.
This is a summary of the predictions, the full report (including the implications) is available to download for free on the Ecosystm platform here.
The Top 5 Future of Work Trends For 2021
- Human-centricity Will be Front and Centre of Organisational Priorities
2020 saw immense humanitarian disruption. Enabling remote work was a key component of business continuity. Both organisations and their employees have a better understanding now of the implications of remote working and how it can be made to work. They are also aware of the challenges of remote working. Monitoring productivity, maintaining the right work-life balance and ensuring employee emotional well-being have been challenging. Despite the challenges, hybrid/blended working is definitely here to stay. Employees will expect more options on the location of their work, often choosing to work where they are most productive.
All decisions related to the organisation, filtered through the lens of human-centricity, will drive better employee engagement – and engaged employees provide better customer experience. Organisations that will operationalise this at scale and across cultures will emerge as success stories.
- Technology Will Bond with Facilities and Operations – Connecting with HR Will be a Challenge
There has to be an alignment between the Business, People, Work Environment and Technology to make an organisation truly empowered to handle sudden pivots that will be required in 2021 as well (Figure 1).
This will require cross-departmental coordination and synergy. Tech teams have traditionally driven the Digital Workplace strategy; now they will have to work closely with Operations and Facilities Management teams on “Smart and Safe Office” strategies. That may not be the real challenge given that there are overlaps between these three teams – they have a shared language and similar KPIs. The real challenge will be the need for Tech teams and HR to work more closely to improve the overall employee experience, including a focus on employee productivity and wellness. Human-centricity makes the role of HR even more important – IT will find it challenging to find common grounds as there have traditionally been few shared KPIs between these two departments.
- Office Spaces Will Become Truly Digital
The hybrid/blended workplace model means that the physical workplace is not disappearing soon. Even as the model evolves for each organisation, what becomes clear is that employee expectations have changed drastically in the last year, and the traditional employee experience expectations of Salary, Recognition, and Job Satisfaction may not be enough. Employees will now expect flexibility, social cohesion, and effective communication. If they are to return to the physical office, they will expect the same benefits as working from home.
This will drive the adoption of digital tech to ensure the office space is safer, more effective and a productive environment for the employees and the business. Two key areas of focus will be on seamless access to information and employee control over work environment.
- Providers Will Deepen Digital Workplace Offerings, but the Market Will Not Consolidate
Key tech providers in the digital workspace space (such as Microsoft, Google, Zoom, Cisco, AWS and so on) will broaden their capabilities and make it easier to procure and use solutions. It will no longer be a “tool-centric” approach (chat, video, document sharing, online meetings, whiteboards and so on) – it will become a platform play. Information workers will be able to choose the approach that best fits the problem they are trying to resolve, without being limited by the capabilities of the tool. E.g. documents will be sharable and editable within chats; whiteboards will be integrated into all other communication services and so on.
Tech providers will deepen and strengthen their capabilities organically and acquisitions will mostly be about buying market share, customers and not the technology.
- Industry-centric Digital Workplace Services Will Emerge and Witness Rapid Growth
The Services industry has been leading in the adoption of digital workplaces – but blue-collar roles and front-line employees will also start benefiting from these technologies. In 2021, new digital workplace capabilities will extend beyond the employee base to systems that drive better connectivity and communication with customers. This will open the market up for smaller, niche players (and this may well run counter to the previous trend). Tech teams will focus on employees and a platform-based approach to collaboration, while Customer teams and others will implement tools and platforms to better communicate outside of the business. The next few years will bring the traditional “employee-centric” collaboration players into direct competition with the “customer-centric” ones. Those that play across both today (such as Google) will be better positioned to win the enterprise-wide “Future of Work” style deals.
Authored by Alea Fairchild and Mike Zamora
There have been a few articles recently about investment companies looking to buy large national US retail companies, for example, JC Penney and Dillards. Their historical approach was to purchase the land and develop the sites as a retail centre and operate their stores. They then lease the remaining retail space to other retailers. It is a business model which has been in use for many decades.
Historically a long and deep negative economic cycle has caused some retail operators/developers to sell part of their operations. This happened in the US in 1995 with Sears. The real estate development and investment companies’ interest is in exploring if there is a higher and better use for the properties. That is the essence of land economics, going from a lower economic use to a higher income/value use.
A key difference this time is the use of advanced technology. We see this in many dimensions: building systems and operations; retail management, social media, entertainment and food and beverage (F&B) operations.
The Smart Building revolution in Retail is about changing the management philosophy of buildings and using technology to aid in the process. The defining characteristic of building smarter is not the application of technology or a function of outcomes on energy use or maintenance. Instead, it is a commitment to leveraging the overall footprint to achieve the goals that perhaps inspired the building in the first place.
Evolution of Space for Retail Activities
The old axiom of real estate is location, location, location. This means that every retail centre will have to be assessed for its best purpose for its locations and surrounding environment. Retail has been morphing in the past few years from a traditional purpose of picking something up to an intersection of shopping and entertainment. This combines on-premise activities with a buying transaction which can be handled either onsite or online. Technology infrastructure investment opportunities are driven by optimising the customer retail experience.
Retail centres are seeking new functionality, including the adaptation of both design and use. Below are four approaches we believe can be used to assess each retail centre.
Reuse: Retail Lifecycle – Consumption to Redemption
There is a shift from consumers discovering and experiencing products in a physical retail space to retailers delivering on-demand. Many smaller retailers have capitalised on this by becoming pick-up points for online orders. They hope to increase footfall by drawing the customer into their own premises when retrieving their online delivery.
Retail centres need to expand on this trend to become a fulfilment location rather than a retail shopping space. Consumers could pick up online orders, recycle used goods, get products maintained and repaired, have appointments for personal services (dental, eye, hair, dry cleaning, etc.), try and test goods in mini-showrooms and collect points and benefits from gamification activities. By having a centralised exchange facility with multiple functionalities, consumer data can be leveraged to create marketing pull activities such as exclusive shopping events, and personalised customer service based on preferences and purchase history.
The current square meterage can be reallocated for distribution including the use of dark stores, green recycling centres for 3D printed product disposal and retail pick-up and exchange points. Staff will not be salespeople, but customer delivery service managers. The technology opportunities in this area would be re-allocation of network resources; focus on efficiency in delivery and customer satisfaction; and automation tools for customer service staff.
Redesign: Blended – Community Environment and Retail Experience
An alternative and more involved development approach would be to redesign the retail centre with deeper use cases to get more customers to come and stay longer. If a consumer stays onsite longer, there is a higher probability they will spend more at the retail centre. The future retail centre (Figure 1) would include additional space usages for a community space, a distribution centre for pick-ups, expanded F&B and remote working.
The technology opportunities are in two areas: customer experience and building operations. From a customer perspective, some technology examples would include entertainment and gaming in the F&B area, digital signage and mobile device technology to further engage people. For building operations examples could include technologies to control climate, lighting, security, energy management and building management.
Redevelop – Living Space for a Quality of Life
In some locations, the retail environment could have an oversupply of newly development retail centres. This means the optimal use for the centre would be to change it to a ‘Village Community’ – a community where people can live, work, learn and play. It would encompass multiple uses – multi-family residential units, a community centre, learning centres for younger children and a co-working area. The technology opportunies would be identical to a connected Smart City – at a lesser scale. Smart residential solutions would make the living environmental more user friendly. Retail could include digital media, mobile push features, enhanced and operational technology, energy management, climate control and security. Schools could include interactive and collaborative tools. Parks would have Wi-Fi and enhanced security. Connected Services (eg utilities, fire life safety, security and communications) could include operational technology systems for utilities, audio and video security systems and communication.
Repurpose: Knowledge & Learning Environment
For some retail centres a redevelopment may not be required, but would instead need a major repurposing of the space. The repurpose could be as a learning or healthcare centre. Learning environments require large open spaces with high ceilings for auditoriums or class rooms; common areas for gathering in between classes; onsite housing for students; food courts; and adequate parking for commuters. A healthcare environment would require patient reception, examination rooms, inpatient rooms, surgical units, and administrative offices. It could also include a medical learning centre.
The technology opportunities would be to develop a 24×7 site, with technologies to support the key purpose of the centre. The learning environment could include collaborative audio/video tools for Smart Classrooms. The social areas could including advanced food ordering and delivery systems and multiple player gaming centres for entertainment. The living areas would include systems and technology for smart living. The parking area could include enhanced security and surveillance systems, and smart parking systems. Behind the scenes, the building operations would need to upgrade energy management, building maintenance and management, digital food court operations, and a wellness air quality system.
The Future of Sustainable Retail Space
The decline of a retail centre is not necessarily a bad thing for a community. It is just the “Circle of Life” as an area evolves. Locations morph over the long-term. This has been seen in all the large cities around the world which have stood the test of time, eg. London, Paris, Amsterdam, New York, Tokyo and Beijing. The transformation also breathes fresh air into the surrounding environment. There are multiple layers of technology available to provide for an incredible Sustainable and Smart Community. It is large opportunity, not only for real estate developers, but also for technology vendors who understand the transformation process into the multiple variations of smart environments. Large real estate players and REITs will buy these retail portfolios and begin to transform older, low revenue, semi-vacant shopping centres into vibrant destination centres. Technology vendors should bring their ideas and systems to the attention of retail real estate owners early on in the the process. This will increase their chances of having their systems incorporated into the overall design concept and operational approach. It is a physical and digital transformation which improves neighborhoods, businesses and the city. It is a win for all.
Juniper Networks has entered into an agreement to acquire Massachusetts-based 128 Technology for USD 450 million that will enhance its AI-driven enterprise networking portfolio. The deal is expected to close by the end of 2020. The combined portfolio of 128 Technology’s Session Smart™ networking and Juniper’s Mist AI platform will bolster Juniper’s AI expertise in SD-WAN technology.
Ecosystm Principal Advisor, Ashok Kumar says, “Juniper Networks has been a major player in enterprise networking from the core to the edge of the network with SD-WAN, WLAN, and AI-driven applications aware network products. Juniper had strengthened their enterprise networks portfolio with the acquisition of WLAN vendor Mist Systems in 2019 which provided cloud-based management and an AI engine. With Juniper’s acquisition of 128 Technology the network transformation process in the industry will continue.”
The platform created by 128 Technology bases decisions on real-time sessions instead of legacy static systems and networking approaches. The newer system created through this by Juniper will use AI to automate sessions and policies for a full AI-driven WAN operation – from initial configuration to customisable actions across various levels, and AI-driven support.
In addition to this, the automation is expected to reduce overheads, minimise IT costs and deliver better client and user-experience through automated network optimised for client-to-cloud. The two companies also aim to optimise the network and user experiences for voice, 5G and collaboration. Juniper continues to evolve the enterprise networking portfolio adding to the acquisition of WLAN start up Mist Systems for USD 405 million last year. Juniper’s AI -driven SD-WAN and networking products and services for enterprises and end-users is a step towards smart LAN and WAN environments.
A recent study on The Future of the Secure Office Anywhere, conducted by Ecosystm on behalf of Asavie found that 56% of global organisations are looking to improve employee experience, as they look beyond the COVID-19 crisis. The feedback from over 1,000 business and technology leaders globally, also finds that 55% of the organisations are also focused on digital transformation. This will require a re-evaluation of enterprise network solutions, to give employees seamless access to company resources as they continue to work remotely.
“Enterprise communications is being transformed to a user-centric, session-oriented distributed model from a legacy network-oriented centralised WAN model. In the new remote working environment of Office Anywhere, the traditional use of VPN in combination with first-generation SD-WAN will become an impediment going forward. Enterprises will need to re-design networks to address each end-user’s unique needs and their access to applications and all business resources as though they were a Branch of One.”
Authored by Alea Fairchild and Audrey William
Video conferencing company Zoom hosted its virtual Zoomtopia user conference lasts week. Given the attention the company has received as the de-facto standard video communication service for the many stranded work-from-home folks, Zoom has been using the event to launch a number of new products. This includes bringing into general availability its OnZoom events platform and marketplace, and introducing Zapps which brings apps from other providers into the Zoom experience.
ZaaP!
In this age of work-from-home connectivity, we are all asked to multi-platform depending on customer preference, company standards and choice of scale-out from a licensing perspective. But will video-led unified communications help position Zoom to be the infrastructure platform of choice of the workforce? Will Zoom as a Platform (ZaaP!) become a well-used phrase to discuss unified collaboration infrastructures?
The agenda of Zoomtopia, covering healthcare, government, financial services, sales engagement, blending learning in education, mindfulness, CSR, and a whole gambit of other vertical topics, demonstrates a virtual play to highlight use cases where other platforms have focused on the horizontal aspect of productivity.
If you compare Microsoft’s horizontal approach with Cisco’s networking approach, both come from places of productivity. Zoom, being video-led and UC oriented, comes from a place of communication and collaboration. Is collaboration now the real driver for the future of work?
Zoom connects the dots with these two product introductions. Zapps is designed to link productivity tools directly into the Zoom experience for user access to multiple applications from the platform. OnZoom allows hosts to run one-time events or event series with up to 100 or 1,000 attendees (depending on their license) and sell tickets for them. Zoom is also integrating the ability to receive donations through events via Pledgeling. Think a combination of EventBrite meeting GoFundMe meeting Facebook Events.
Zooming Ahead
With the wide variety of activities during this social distancing period around the world that have been Zoom-powered, familiarity leads to experimentation and early adoption.
Without using the word ‘portal’ – Zoom as a Platform (ZaaP!) enforces the drive for a main infrastructure for live interaction via video as the main means of communication over written material or pre-recorded media materials. And many of us are video-led, more than ever.
Zoom is scaling rapidly. When it started out many years ago, they were known as a company that offered video sessions for free and everyone was wondering who this new kid on the block was. In a span of a few years, they have become a powerhouse.
The announcement of OnZoom is something that marketeers will take note of. Many marketeers are Zoom users but could be using other platforms for hosting events. The solution will have in-built tools for selling tickets, scheduling, gifting tickets, promotional activities, etc. Zoom is thinking about video and layering that with added functionality to run a large-scale event. You can see them going into using AI to churn out rich analytics on attendees, attendance rates, effectiveness of campaigns and so on. All of a sudden it is about hosting an event with in-built rich features plus analytics so events can be run better. They are reaching a new audience and making it a fully built all-purpose solution for event organisers and marketeers.
Security Front and Centre
Ecosystm research shows that security has been a key component in organisation’s COVID-19 responses – and rightly so (Figure 1).
While Zoom received some negative publicity this year around security, they were quick to admit the issues and made incremental changes in the subsequent months including an acquisition. With E2EE, no third party including Zoom is provided with access to the meeting’s private keys. Zoom’s E2EE ensures that communication between meeting participants using Zoom applications is encrypted using cryptographic keys known only to the devices of those participants. Zoom is starting to penetrate larger accounts and the security aspect is important as it is the top of the mind discussion for every business leader.
Ecosystm Comments
With the hybrid work model evolving between home and work, and work patterns changing, one thing that is going to stay is the use of video and collaboration tools and it is only going to accelerate (Figure 2).
What Zoom is doing well is how they take workflows and APIs seriously, making productivity flow into UC and UX, and not the other way around.
With longer work hours becoming a norm, growing instances of emotional stress and mental fatigue, UX becomes paramount. Knowledge workers want to seamlessly move between workflows and still find the experience simple and not tiring. Zoom is building on that vision as a platform enabler and infrastructure provider.
The Retail industry has had to pivot fast this year – having faced early supply chain disruptions, social distancing restrictions due to COVID-19, uncertain demand and falling margins. But the biggest challenge faced was the evolved consumer buying behaviour. Customers were forced to go online, and eCommerce platforms thrived even through the difficult times. Retailers have to continue to cater to this shift in buyer behaviour.
As retailers continue to evolve their capabilities, Woolworths, the Australian chain of grocery stores, recently announced that it has launched new micro automation technology for one of its eCommerce facilities located in Melbourne to speed up the fulfilment of online grocery orders. In 2019 Woolworths had partnered with a US based eGrocery startup, Takeoff Technologies.
Woolworths Automates Dark Store
Woolworths eCommerce floor space spanning across 2,400 sqm is equipped with micro automation technology that allows it to segregate and move groceries from automated storage units that can hold an inventory of 10,000 products and bring them directly to those you pick the orders. The innovative model is designed to make the inventory storage space compact and move high-volume online grocery products to consumers with greater speed, efficiency and accuracy. While grocery products will be picked from automated units, perishables such as fruits, vegetables and meat will continue to be picked up by shop floor workers. Woolworths has employed 50 new employees to fulfil online orders and is expected to fill 100 more vacancies.
“It appears that Woolworths is continuing to use New Zealand to test new technology before introducing it into their much larger Australian market. They are extending the introduction of the technology they first announced for use in their New Zealand online fulfilment centres – the Auckland dark store in November 2019 with a second in Christchurch announced in January 2020,” says Ecosystm Principal Advisor Alan Hesketh. “The Carrum Downs, Melbourne, store will be the first implementation of automation in Australia. Woolworths has announced a third dark store for Wellington in late September 2020 – it would be surprising it was not automated as well.”
Talking about the increase in the use of dark stores, Hesketh sayss, “The challenge with the current model of online stores is the use of expensive retail floor space for picking orders that cannot be used to serve physical customers. With the increase in online sales, accelerated by COVID-19, the volumes are now sufficient in urban areas to make these dark stores profitable. This allows the use of lower-cost, centralised, distribution central space for the dark stores.”
An Example of how Retailers are Pivoting Successfully
Woolworths has been constantly developing their capabilities to improve customer experience and process efficiency. The demand for online products and groceries skyrocketed during COVID-19 which resulted in a temporary shortage of online products and Woolworths had to temporarily stop online ‘Pick up’ and ‘Delivery Now’ orders nationally. To ensure smoother delivery services, they partnered with Sherpa, Drive Yellow, and Uber. Earlier this month, Woolworths announced that six stores in Australia would go completely cashless. Woolworths has around 1,050 stores in Australia which operates on a mix of cash and e-payments.
To keep pace with the online growth, Woolworths automated dark stores will be a potential game changer as they are expected to be able to dispatch online orders five times faster, compared to a standard Woolworths store.
“This increased capacity also means Woolworths’ online offer is less likely to be overwhelmed in the event of another COVID-19 lockdown. This improved access to groceries will be an important benefit to vulnerable members of communities, as well as those customers wary of visiting physical stores,” says Hesketh.
“For their physical stores that support home delivery, Woolworths will now be able to repurpose or release the space used by the pick-and-pack operations. In-store customers will get a better experience without the Woolworths personnel picking orders in the aisles.”