Staying competitive and meeting the evolving customer demands requires embracing cutting-edge technologies. Artificial intelligence (AI) and advanced machine learning software have emerged as invaluable tools for retailers looking to gain a competitive edge, improve customer experiences and optimize operations. AI is used in multiple areas across retail, from consumer product suggestions to merchandise demand forecasting and inventory allocation. To harness the full potential of AI and advanced machine learning, your company needs to be adequately prepared, which includes having the right technology for your organization’s unique environment and having a consulting partner with the expertise to implement and integrate the technology into your operations. enVista, a leading consulting partner, is well-equipped to assist retailers in beginning their AI journey.
In this blog, we will explore 10 critical steps for retailers to take to prepare for implementing AI into their organization and processes and how the right consulting partner can help you achieve those steps. We will also highlight current, cutting-edge software such as EVO Pricing and JustEnough Dynamic Retail Planning[KL1] & Execution from ToolsGroup, an AI-powered supply chain and retail planning solution provider., an AI-powered supply chain and retail planning solution provider.
1. Establish a Clear Strategy
Before jumping on the AI bandwagon, it is critical to establish a clear AI and machine learning strategy. This should include identifying specific business goals, aligning pricing strategies with revenue objectives and considering market dynamics and competitor positioning. AI implemented in a vacuum will only cause confusion between the people, processes and technology already in play.
To enable a successful implementation, partner with a consultant like enVista that is strategy-focused and will collaborate closely with your leadership team to establish a clear AI and machine learning strategy.
2. Invest in Data Management
Your company’s data is one of the main resources that any AI or machine learning system will draw from. If you are ready to start utilizing AI tools such as JustEnough Dynamics Retail Planning & Execution, you need to maintain data quality, accessibility and security to ensure you have accurate inventory management and demand forecasting. This will ensure that your AI system is drawing from an accurate and reliable data source that is consistent across the entire organization.
Consultants like enVista can analyze and adjust your company’s data strategy to be AI-ready via comprehensive data management solutions, including data collection, aggregation, storage and governance. We can help you select a data governance model, such as a process-first, technology enablement approach that aligns people, process and technology, that will allow your organization to maintain data integrity and keep data enterprise-ready.
3. Develop In-House Expertise
AI does not eliminate labor but redistributes that labor to other important roles across the organization and can often even create new roles that didn’t exist prior to the implementation of AI. For example, implementing AI into an organization will create the need for one or more people to oversee the management of the new technology. Having AI and machine learning expertise within your organization will help create a more enduring solution after the implementation and change management process is complete. You will need a person or team that is able to continually monitor the AI or machine learning system, ensuring that it is creating accurate outputs based on the data and proactively and retroactively solving any problems or glitches that may arise.
To avoid falling victim to tribal knowledge, which would quickly deteriorate in the event that new talent joins the organization, ensure someone is in charge of maintaining rigorous documentation of all technical details, standard operating procedures, processes and important knowledge in relation to that AI system and how it interacts with the organization at large.
When selecting the consultant that will help implement your AI, we suggest finding one with a team that specializes in building internal expertise in AI and machine learning. This means helping with talent acquisition, upskilling programs and change management.
4. Select the Right Tools and Partners
With the myriad AI tools available in the market, it is critical to ensure you select the one that is most suited to your organization’s unique environment. While one tool may work for a partner or competitor in your same field, it will not necessarily meet the needs of your business. When selecting the AI tool you will implement, complete a detailed audit of your organization’s people, processes and technology and evaluate tools based on that research. This will improve your objectivity and increase the likelihood of selecting the best tool for your business.
To help you make the right decision, start by compiling your specific business objectives and challenges, your technical requirements and constraints, the level of support and training you will need and other information that will guide you during the evaluation process.
enVista’s deep industry connections and expertise help retailers select the most suitable AI and machine learning tools and technologies. We evaluate options based on scalability, compatibility and ease of integration. We partner with dozens of industry-renowned software companies while still maintaining a vendor-agnostic approach that is committed to sourcing the right AI fit for you.
5. Data Security and Compliance
Data security and compliance are paramount in the retail sector today. When sensitive information such as customer and company data are being transmitted through an AI platform, it is critical to ensure the right systems are in place to protect that data. You can leverage secure AI in your retail processes by implementing robust security measures, encryption and access controls, while ensuring that you adhere to data protection regulations such as GDPR and CCPA. This ensures that customer data is safeguarded and compliant while utilizing AI and machine learning tools effectively.
enVista can offer guidance on what measures your retail organization needs to take to leverage AI securely, and we can even implement those measures for you to ensure it is comprehensive and reliable.
6. Piloting and Testing
An expansive AI rollout is an incredible undertaking in cost, time and resources. It is important that everything is in place to ensure a successful launch that will reap the maximum amount of ROI. Pilot projects and rigorous testing are important tools to use when planning toward an AI release in your organization. A pilot program can help you and your workforce get your feet wet, understand how the AI will truly impact your processes once it is in place and inform the rest of your rollout. Most importantly, it will allow you to iron out any kinks that may arise before moving forward, saving you from costly mistakes that would require costly resolutions.
enVista’s consultants have vast experience in assisting retailers with designing and executing pilot projects. Many of our clients utilize AI and machine learning tools like EVO Pricing to refine pricing strategies and JustEnough Dynamics Retail Planning & Execution to optimize inventory management. Our experience in analyzing results ensures that retailers can make informed decisions about scaling AI initiatives before getting too far into the process.
7. Enhance Customer Experiences
Every decision a retailer makes should be viewed through the customer’s lens, and this includes the decision to implement AI. Ultimately, AI is meant to enhance the customer experience. Whether this be through personalized shopping experiences, AI-powered communication, customer feedback analysis, smart shelves and RFID technology or the myriad other options, AI is supposed to take existing customer data and experiences and enhance them for maximum convenience and satisfaction.
Selecting the right AI tools to make sure you are getting the best customer experience helps drive engagement, lifetime value and near-term return on investment. enVista’s consultants are dedicated to helping clients take a client-centered approach to their technology decisions, and we know how to guide your strategy, evaluation, selection and implementation with the customer as the core foundation.
8. Streamline Operations
AI will operate best when it is implemented into streamlined operations. Murky processes that are not well operated or maintained will only be exacerbated by adding new technology to the mix. Before considering what AI you might want to introduce to your organization, start with a detailed audit of your organization’s supply chain network. A solid supply chain will be foundational to any AI decisions you make.
enVista’s expertise in supply chain management, inventory control and logistics optimization are invaluable. We can help you select, implement and effectively leverage AI and machine learning tools to predict demand, manage inventory efficiently and reduce operational costs, thus improving your bottom line and competitive position.
9. Data-Driven Decision Making
It is important to have a culture of data-driven decision making within your organization. This will ensure that decisions are based on insights generated by AI algorithms and machine learning models, fostering agility and adaptability in a rapidly changing market.
Cutting edge AI tools like EVO Pricing are a great way to be able to see results from your data-informed decisions quickly and scale them rapidly. enVista’s consultants are data experts and can help you sort through your gleaned insights and leverage them to inform each new decision you make.
10. Continuous Learning and Adaptation
The world of AI and machine learning is continually evolving. While a successful implementation is critical, it is just the beginning of your AI journey. Once you have implemented AI into your retail organization, you will embark on the evergreen journey of continuous improvement.
enVista keeps retailers informed of the latest advancements in AI and in retail. We help retailers adapt their strategies to stay at the forefront of innovation, ensuring that their AI initiatives remain relevant and effective. Further, enVista provides training programs and workshops tailored to the tool retailers use like EVO Pricing and JustEnough Dynamics Retail Planning & Execution.
AI and advanced machine learning are the future of retail. enVista, as a trusted consulting partner, is poised to guide retailers through each step of the process while leveraging specific tools such as EVO Pricing and JustEnough Dynamics Retail Planning & Execution. With enVista’s expertise and industry knowledge, retailers can establish clear strategies, invest in robust data management, develop in-house expertise, select the right tools, prioritize data security and compliance and embrace a culture of continuous learning.
