#NRF17 Two evolutions awaiting convergence

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Blogpost by Jerry Stam, Senior Managing Consultant Retail | Having visited the NRF* many times over the past decade, I consider it a fairly accurate indicator of where the retail industry is heading. eCommerce, cloud, security and mobile to name a few were “hyped” just in advance of mass proliferation. Strolling past the numerous booths this year it was interesting to see what was visible and what wasn’t.

Not so visible (anymore)

#1: POS systems are clearly out of vogue. In the past many booths featured different software and hardware options. This year few different POS software vendors were present and the old brick-like POS hardware was hard to find. Some Chinese vendors showed POS tablets integrating checkout and payment which seem to be preferred option going forward. Anyhow, POS is no longer interesting or so it seemed.

#2: Digital Shelf Edge Labels. There was a time when digital shelf edge labels seemed ready to conquer the world quickly. This year not so much. Maybe it is because there has been some consolidation in the vendor space, but it felt like some of the energy had disappeared.

#3: Cloud as standalone: Cloud seems to have gone back to where it belongs: A supporting technology enabling retailers to function, but not warranting too much attention on its own. While I consider the topic of hybrid cloud a hidden problem for many retailers in the years to come, NRF showed how cloud is now an integral (hidden) component of many solutions.

Very visible

#1: Virtual reality (VR): Have you ever tried a VR headset without getting a headache after a few minutes? I cannot, but it seems that vendors believe that VR has a future in retail especially for shopping in virtual stores. Although the improvement has been tremendous since the introduction of Second life in 2003, VR can still not match the experience in a real store in 2017.

#2: Internet of Things (IoT): One of the key evolutions as shown at NRF in 2017. Almost anything can seemingly be outfitted with sensors that report back. And if you want there is (almost) always Amazon’s Echo/Alexa that allows you to remotely control devices. From the heatmaps of how people move in stores, the fridge in your home to the remotely controlled cameras, IoT seemed everywhere at #NRF17.

#3: Artificial Intelligence / Augmented intelligence: One analyst wrote “IBM’s booth was so packed this year there seemed to be no time when there weren’t concert-sized crowds on its floor. The company showcased its real-time personalization with IBM Watson, which is able to take unstructured “dark data” and make it useable” **. If interest in Watson is any indicator of where the industry is moving, 2017 will be the year of Augmented Intelligence.

Awaiting convergence

But when I left NRF this year my feet hurting as usual, it felt as though next year could be the year of the real breakthrough for retail: Combining IoT and Augmented Intelligence. The more data (including IoT data), the better outcomes/predictions/analyses from Augmented systems. So, for me #NRF17 was an interim year where we saw the coming of age of IoT and Augmented Intelligence, but not (yet) the convergence of the two.

For you that should be an extra incentive to investigate what IoT and Watson / Augmented intelligence can mean for your business in 2017 and to start experimenting. Shall we check what #NRF18 brings next year?

* NRF = National Retail Federation’s Annual Fair in New York City with 25.000+ in attendance

** http://risnews.edgl.com/retail-news/Best-of-NRF-2017–Top-10-Takeaways108555