Implementing IT Solutions in Retail: How to Avoid Frustration

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  • Oct 11, 2023
  • 5 min read
Cover: Implementing IT Solutions in Retail: How to Avoid Frustration

In today's fast-paced retail landscape, adopting innovative software solutions has become a critical factor in staying competitive and meeting evolving customer expectations. However, this is often a daunting endeavor. The task can become much more difficult if there are unrealistic expectations or unpreparedness for possible challenges. Let's shed some light on the problem and its solution.

Don't get trapped in false expectations

Unfortunately, retailers sometimes face unmet expectations from the implementation of IT products. A vivid example is the trend of adopting artificial intelligence solutions in retail. Undoubtedly, this is a breakthrough and powerful technology. However, some believe that it will become a panacea because AI can make the most accurate forecasts, for example. But you can have the most accurate predictions and fail to meet critical metrics because the rest of the supply chain processes are failing. Thus you'll be disappointed in the software as it won’t give you expected business results.

To avoid frustration and the needless waste of time and money on cutting-edge software implementation, a retailer needs to follow simple steps.

Define the needs and goals of your business

The first step in implementing software is to understand the unique needs and objectives of the company. It is vital to analyze pains, inefficiencies, and opportunities for improvement. 

Set the desired results and project KPIs

You must define the expected results from the software implementation and set project success indicators. Regularly tracking and analyzing project metrics will allow retailers to evaluate the impact of the software and make data-driven decisions for further optimization.

Predict the impact on employees and processes

A retailer needs to consider the impact of software on employees and processes, with a focus on change management. Proactive communication, comprehensive training, and problem-solving ensure smooth adaptation and engagement of everyone involved.

Assess the need for scalability and adaptability of the system

The software to be implemented must meet the future needs of the business. To stay flexible, retailers evaluate long-term growth plans and integration with new technologies. In addition, it is essential to consider the product's development plans and the frequency of updates.

Be ready for challenges

Innovations bring many benefits, but it is not without issues. Here are some of the common challenges retailers face during the software implementation process:

Integration difficulties 

Legacy or custom systems may have difficulty combining with new software, so integration may take more time and money than expected. It's essential to be prepared for this. Careful planning and implementation of integration strategies are necessary to ensure smooth data flow and optimal performance.

Resistance from employees

Successful implementation depends on employee readiness and acceptance. Resistance to change and lack of training can hinder the process. It is essential to provide comprehensive training, create a positive attitude, and involve employees in the decision-making process to increase ownership and engagement.

One of the top 10 regional operators in the U.S. 2022 by Progressive Grocery, recently adopted a modern solution to optimize merchandising operations. The company recognizes that the implementation process requires a great deal of team cohesiveness and involvement. The network employees had to undergo comprehensive training on working with the new program modules.

Ensuring data security and privacy compliance

Compliance with industry standards and regulatory requirements is a must. Strong encryption, access controls, and security assessments ensure protection against leaks and unauthorized access.

Managing costs and meeting ROI expectations

Implementing innovative software requires significant licensing, upgrade, consulting, and maintenance costs. Retailers must manage costs and set realistic ROI expectations. Realizing that benefits may take time will adjust expectations accordingly.

How do we mitigate challenges and maximize success?

The following strategies will help retailers navigate the complexities of the implementation process:

Ensure collaboration between IT and business units

It is critical to establish close collaboration between IT and business units to ensure a common understanding of project goals and requirements. Involving stakeholders from different business units allows you to gain information, align expectations, and identify potential obstacles early on.

Choose software vendors carefully

You’d better carefully evaluate potential partners' experience, reputation, and ability to meet specific business needs. By choosing reputable vendors with a proven history of successful implementations, you increase the likelihood of project success.

"We rejected solutions that were too complicated to implement and use. The key factor of the final decision for us was not only the acceptable functionality and price but also positive feedback from our partners who had already worked with the vendor. And when we compared the performance three months after implementation with the previous year, we saw outstanding results and realized that we were not mistaken", says Ani Gakharia, Commercial Director of AgroHub, a chain of supermarkets in Georgia.

Conduct pilot phases and testing before full-scale implementation

Such an approach allows potential problems to be identified and addressed on a smaller scale, minimizing disruption to the entire enterprise. This allows for adjustments and fine-tuning before implementing the software on a larger scale.

Dedicated and involved leadership is a key

It is essential for managers not only to monitor project KPIs constantly but also to ensure continuous collection and provision of feedback from all sides. This way, you will know if the project is on track and will be able to discuss and approve necessary adjustments with the vendor and the team on time. 

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With a complete understanding of their expectations, careful planning, attentive collaboration, and user decision-making, retailers can turn their software adoption endeavors into resounding successes that increase their competitiveness in the dynamic world of retail.

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