The Retail Technology Trap

Never Succumb To the Technology Trap

The experience most consumers will have with a digital retail service is a self-service check-out (like many major supermarkets); however, over the past couple of years, there have been a number of amazing technologies for retail businesses. This could include anything from the collaboration of Myer and eBay to launch the first virtual reality department store, Neiman Marcus’ “Memory Mirror”, Afterpay’s online payment instalments or Temando’s intelligent fulfilment solutions.

hand holding the phone with mobile wallet online  to shopping on the store

 

That said, when you hear about a new technology that claims to be the latest and greatest ever made, do you rush out and invest in it in the hope that it may add value to your retail business? If you’re the type of company with a habit of investing in technology for the sake of it, then you need a reality check. It’s time to turn your back on the technology trap and start using your common sense.

In his book Good to Great, Jim Collins it wasn’t a surprise that more than 80% of great companies do not rank technology as one of their top five reasons for making a great company. So, unless a technology fits squarely in with your Hedgehog Concept, you should ignore it.

Does the technology you use fit in with your Hedgehog concept?

Good retail companies often look to technologies to help take them to the next level, whereas great companies always use technologies as an accelerator to enhance their Hedgehog Concept. When a technology aligns with your Hedgehog Concept, you need to act like a great company and become a pioneer of it. If your Hedgehog Concept doesn’t drive the use of a technology, you either have to settle for parity or ignore it completely.

I’ve seen leading edge technologies that have been pioneered by great companies. However, I’ve also seen the same technologies in “comparison organisations” and witnessed them fail to produce the same results.

Before jumping on the technology bandwagon, you need to ask yourself:

  • How does this technology connect with our Hedgehog Concept?
  • Can we be pioneers in the technology?

If you answered no to both questions, just forget the bloody technology and move on. It’s so easy to panic in fear of being left behind, but you need to stop worrying about what technologies your competitors may or may not be using, as they will never be the answer to making you great.

The bottom line

Technology should only be used as an accelerator, rather than a creator of momentum. While I understand that it can be hard to dismiss the hype of current technologies, you need to have absolute discipline and steer clear of any technology trends that don’t support your Hedgehog Concept.

As Norwegian politician, Christian Lous Lange once said, “Technology is a useful servant, but a dangerous master.” Never use technology as a primary means of igniting transformation – but if you can, always become a pioneer in the application of carefully selected technologies.