Table of Contents
The past
Virtual Platform
Mobile Technology
E-commerce
Social Media – Customer Benefits
Artificial Intelligence
Technology can have a significant impact on traditional businesses by studying its usage, application, and market demand. This paper explores the evolution and benefits of traditional business models that incorporate technological innovations.
We have seen a major shift in traditional business practices over the last 20 years. Technology’s rapid evolution has facilitated this shift. Oxford University conducted research and found that technology took 50 million people to reach their current level. This timeline is indicative of the technological potential. It was estimated that the Internet reached 50 million users in just 4 years after reaching the top. The Telephone took 75 years, Radio 38 years, Television 13 years, and Radio 38 years. These statistics make it easy to see how important technology integration is for traditional businesses. If a company chooses to stay stagnant, it could lead to a disastrous outcome in their long-term prospects. This report will explore the amazing journey of technology’s evolution and how it has changed consumers’ shopping habits as well as how it has affected businesses. Although technology is now a common practice in business, it was not always so. Businesses used to rely on manpower for their operations. They would also source their stock from potential suppliers by visiting them in person. This involved long journeys, multiple meetings, and updates throughout each stage. This process was costly, time-consuming and often led to mistrust from both suppliers and buyers. Management of the office was slow. It involved documentation of all transactions, tracking payrolls, employee details, and inventory. Print advertising would include magazine covers and billboards, which can be expensive for a brief period. Local distribution of brochures and flyers via direct mail. The integration of computers into offices made it easier for companies to do business in the late 19th-century. The computer and the accompanying software could perform complex calculations faster. This allowed employees to manage inventory and get updates when stock is low, making their operations easier and more efficient. Digitisation saved company records such as customer and employee records and secured sensitive data. Virtual PlatformProgression was not limited to back-office processes. The internet’s development in the late 1990s allowed instant connectivity using email and instant message. It was easy to communicate with customers, suppliers, and employees. This allowed for faster responses in emergency situations and more flexibility for dealing with less urgent matters. Email marketing was implemented. Customers received daily newsletters on new arrivals, as well as discounts on stock. The internet revolutionized the world and gave people a way to communicate with each other in real-time. The internet allowed businesses to be global and not reliant on local customers. The internet gave rise to new ways of shopping. Virtual stores allow businesses to present their products and services online. They also have global reach, which allows them to expand their business globally. PayPal and other intermediaries made it possible for consumers to securely pay for goods or services online. Mobile TechnologyTechnological innovation continued to flourish and advancement in the tech industry brought another milestone in the form of Mobile Technology that completely revolutionised the way we interact with the world and conduct our everyday lives. 3G Mobile Internet was widely adopted worldwide in 2003, which led to the advent of the mobile phone in 2007. The mobile technology has had a profound impact on the consumer’s shopping habits and their purchasing habits. Many retailers recognized the need for mobile responsive websites. They can be viewed easily on all devices, even smartphones. Consumers have become more knowledgeable shoppers due to the ease of conducting research on their favorite brands and discovering new offers. E-commerce platforms connect manufacturers directly to customers. This allows for transparency in pricing and disintermediation. They can enjoy larger discounts on the exact same products, while merchants can maintain low prices and still make a profit. E-commerceEstablished traditional businesses were able to utilise this technology and all it had to offer. Through years of customer service and reputation building, they were able analyse their data to tailor their customer experience and set up an online store. Setting up an online store allows customers to save money on their monthly fees. It is possible to target customers by gathering data such as the browsing habits of customers and tracking which products they choose to buy. Search engine optimization is a tool used by search engines such Google to help you get traffic from all around the world. Banner ads can be placed on websites with similar products. Digital advertising costs less than traditional print advertisements. It can also be easily modified without any additional fees or delays. Social Media and Customer Benefits. The greatest benefit of a digital marketing strategy by a business is the use of social media platforms like Twitter or Facebook. Facebook boasts 2.34 billion monthly users as of 2018. Social media gives businesses the ability to segment markets in the most specific way. They can analyze profiles to find out who their customers are and identify the attributes that will best match their products. Social media has the unique advantage of allowing consumers to interact with brands. It is important that this information be monitored from business perspectives. Customers can leave reviews on e-commerce stores or their social media accounts if they shop with the brand. Reviews can be viral and generate buzz for a brand’s products. This has a negative side. A customer can complain about the experience or product they receive, including delivery delays, product damage, or simply not living up to their expectations. There are several ways to make this known. Customers use social media to voice their dissatisfaction and get prompt responses from brands. This helps customers resolve their issues faster. A brand doesn’t want bad press so they need to be vigilant in maintaining a good online reputation. It was not an easy decision for traditional retailers to make the online presence necessary. John Antioco CEO of Blockbuster was an example. Antioco received a proposal from Reed Hasting in 2000 to become a partner. Reed would own and operate Blockbusters online. Blockbusters shops would promote Netflix. John Antioco turned down the idea. Blockbuster was at that time the biggest Video outlet, boasting over 9,000 stores. Late fees, which account for about 16%, made them the biggest revenue earner. Reed’s proposal was to adapt their business model in order to make it more convenient for customers. Customers would pay a subscription fee and be able to keep the DVDs as long as they want if they subscribed. Blockbuster wouldn’t lose any revenue from this revenue if they had to remove late fees. John Antioco soon realized that Netflix was a threat to their business and proposed that late fees be cancelled and that they invest in a digital platform. However, the board rejected his proposal. Blockbuster’s survival was at stake when this decision was made. Blockbuster closed 2 stores in 2010 and Netflix was worth 28 billion. While Blockbuster’s business model is laudable, it was the inability and unwillingness to risk new ideas that cost them their success. Artificial IntelligenceComputing systems are now being programmed to think and act as humans do, or as it is better known Artificial Intelligence (AI). Computer systems that can process information and data in order to mimic human processes such learning, reasoning, self-correction and reasoning. Although the initial concept of AI was developed by a variety of scientists, mathematicians, and computer scientists in the 1950s, it took a lot of fundamental changes to make the technology work. AI technology is rapidly improving. We are now seeing AI used in a variety of business sectors, such as Telecommunications, speech recognition software, and Amazon’s Alexa. Amazon has created an AI-based business that combines the best of both traditional and new technology with e-commerce and traditional business models. This allows customers to shop in one place, allowing them to save time and money. The new Amazon Go store was appropriately named. Amazon Go, which combines Artificial intelligence with weight sensors, cameras and QR Code Scanning software, offers an automated shopping experience. The app is downloaded to the customer’s mobile device and they can shop at the store. To enter the store, customers will need to scan their QR code. Each customer’s details are tracked by hundreds of cameras placed at various angles of the score. Sensor fusion software then uses data from cameras and weight sensors to determine which items were lifted to be purchased. The customer won’t be charged if they return the item. After shopping is complete, customers leave. No checkout is required. Customers will be sent an email with receipts for all items purchased. Amazon will then charge their Amazon account. The receipt includes details about how long the customer spent in the shop. Software also tracks inventory so that customers can reorder as needed. The software can be used to suggest products and promotions to customers. While self-service shops have their benefits, they also have some downsides. Although the convenience of self-service shopping may seem to justify privacy concerns, consumers might be uncomfortable with companies having access to their personal information. To shop in the store, you must have an Android or iPhone of the latest generation to access the QR Code. This is problematic since the elderly and older generations are still not using smartphones. Amazon Go appears to be very popular, and plans are in place to expand. Amazon Go opened its first store in Seattle in January 2018. There are currently 11 locations, including 3 in San Francisco and 8 in Chicago. Plans are in motion for a London store to open in the latter part of 2019. The store has no employees other than the chief cook who prepares the ready-made meals. There are also employees who stock shelves, assist customers and help them when they need it. Because the software is so advanced, they won’t disclose any details. But it opens up new possibilities to retailers. Many people have predicted the impact technology could have on traditional business. Zippin, a Silicon Valley-based company, is working to produce an even more sophisticated and intuitive version Artificial Intelligence. The company’s goal is to provide directions to every product in a store as well as suggestions for food that could go with it. Zippin also tested similar software to Amazon Go, but they are not selling it to retailers. It has been suggested that the AI software is being developed to think faster and offer customers suggestions by voice. If a customer has recently had a visit to the doctor that revealed high cholesterol levels, then the software will suggest foods to lower Cholesterol. Traditional businesses are constantly evolving and mutating to stay competitive. We’ve seen technology evolve, be adopted and modified to help improve our lives as well as the business industry. In combination with existing business models, technology innovations can help a company expand and grow. As you can see, research and innovation continue to make shopping easier, faster, and more convenient for consumers. It’s exciting thinking about the future of technology as it continues becoming an integral part in our daily lives.
