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Scandit Award Write Up

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Scandit receives Frost & Sullivan's 2018 European Retail Automation Technology Innovation Award

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Scandit Award Write Up

  1. 1. 2018 European Retail Automation Technology Innovation Award 2018
  2. 2. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 2 "We Accelerate Growth" Contents Background and Company Performance ...................................................................................... 3 Industry Challenges........................................................................................................... 3 Technology Attributes and Future Business Value .................................................................. 3 Conclusion........................................................................................................................ 6 Significance of Technology Innovation ........................................................................................ 8 Understanding Technology Innovation ........................................................................................ 8 Key Benchmarking Criteria ................................................................................................. 9 Technology Attributes ........................................................................................................ 9 Future Business Value........................................................................................................ 9 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices .....10 The Intersection between 360-Degree Research and Best Practices Awards....................................11 Research Methodology ......................................................................................................11 About Frost & Sullivan .............................................................................................................11
  3. 3. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 3 "We Accelerate Growth" Background and Company Performance Industry Challenges Today’s digitally-connected consumers interact with technology and smart devices to an extent that is redefining the retail shopping experience. Millennials, specifically, are the customers with the maximum impact on buying decisions and possess the highest purchasing power. This customer group grew up in the age of information and appreciates the role technology plays in having data at their disposal. As such, enriching customers with product information has become a wildly effective tool for inducing purchases, inciting interactions, and minimizing cognitive dissonance (buyer’s remorse). As a result, online retail, or electronic commerce (eCommerce), has gained considerable traction globally, forcing brick-and-mortar retail players to reinvent their approach to keep up in terms of ease of purchase, customized shopping experiences, and extensive cataloguing. That said, two key areas that need attention if in-store retail is to survive are cost reduction and acquiring and decimating information. 1.) Cost Reduction: Brick-and-mortar retailers are looking for ways to minimize costs to stay competitive with online retailers. This is certainly an ambitious goal as online retailers manage their costs by eliminating middlemen and by not having to acquire and maintain expensive store locations, which are essentially two of the biggest cost burdens of brick-and-mortar retailing. 2.) Acquiring and Decimating Information: Online retailers are equipped with advanced algorithmic methods designed to gather customer data and customize the shopping experience for each of their users. By contrast, offline retailers are at times left in the dark when it comes to understanding customer behavior and needs. Information on such vital factors is critical for store managers to optimize floor space, make decisions regarding what merchandise to stock and when, and how to arrange the store layout to maximize product visibility. Online shoppers can easily search for and locate their desired products by making a simple search engine enquiry or using inbuilt search capabilities on an eCommerce site, which is not the case for offline retail where customers sometimes have to search aisle-by-aisle to find their desired products, which may not even be kept in stock. One of the important factors driving shoppers towards the online platform is the availability of product reviews and information that is sometimes limited in physical stores. All elements considered, the fact remains that while online retail sales are growing at tremendous rates, brick-and-mortar stores still account for over 90% of retail revenues. In fact, over three-fourths of consumers still have a very positive outlook on traditional physical retailers. In light of this reality, it becomes essential for retailers to reimagine
  4. 4. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 4 "We Accelerate Growth" brick-and-mortar environments in consideration of how today’s customers prefer to evaluate, select, and shop for products. Many retail brands are investing considerably in modernizing in-store experiences. Two of the approaches underway are implementation of automated retail and self-checkout solutions. The backend processes of supply chain management, inventory management, and product placement decision-making are also being reimagined for inducing cost optimization and efficient overall functioning. Certain technologies in use today are retail beacons, RFIDs, and barcodes. Out of these technologies, barcodes have been used for the longest time and have the highest potential for boosting in-store retail due to their non-technical nature, standardization, and pervasiveness. Technology Attributes and Future Business Value Product & Industry Impact Scandit, a visionary European company with offices in Europe and the United States, has developed transformational products and solutions based on the barcode framework to enable connected stores. The company has helped retailers leverage the ubiquity of barcodes and smart devices to seamlessly integrate technologies such as augmented reality and computer vision to transform the physical store experience. Scandit’s innovative approach is rooted in viewing digital mediums as extensions of physical environments. The company’s core product offering includes a mobile data capture solution that is built upon its proprietary innovations in computer vision and machine learning. While the traditional retail store environment relies on barcode scanning for billing and cataloguing, Scandit flips the dynamic and puts the barcode reader in the consumer’s hand, empowering shoppers with the ability to gather information about products available to them in a retail store. Using a typical smartphone and augmented reality (AR) technology, Scandit solutions allow customers to overlay digital information, such as product images and customer reviews, on top of the physical world. MatrixScan, a unique feature integrated into the Scandit platform, offers robust barcode scanning capabilities and can locate, track, and scan multiple barcodes and consumer products at once, even in the most unfavorable visual conditions. Along with barcode scanning, MatrixScan can also be combined with optical character recognition (OCR), another key feature of Scandit's computer vision platform, which shoppers can use to capture vital written data from forms or labels. While some of these features can be integrated by retail stores and brands into their stand-alone consumer-facing mobile shopping, gift registry or self-scanning/checkout apps, Scandit also offers similar solutions to empower store associates in day-to-day customer interactions, store operations and supply-chain related workflows. To ease the integrated process and make it easier for their customers to benefit from best practices
  5. 5. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 5 "We Accelerate Growth" obtained over many years of experience, Scandit also differentiates itself by offering its many solutions bundled into a consumer and employee-friendly mobile accelerator apps that are easier to integrate, deploy and use. The apps are designed to guide larger-scale implementations and deployments and not only encompass use cases into a retail store environment but also demonstrate how to transform processes that affect the journey of a product, from its production through the supply chain and down to the end consumer. Frost & Sullivan believes that Scandit’s products and technologies stand out for catalyzing brands’ efforts to revamp their in-store retail experiences that better align with today’s customers’ data-driven needs. Scalability Scandit’s barcode scanning, OCR and computer vision solutions for enterprises are a software-based alternative to dedicated physical scanners. Using a software-based approach frees brands from investing into costly hardware, and, most importantly, by combining barcode scanning with OCR and other computer vision capabilities dramatically improves the efficiency of key business processes and offers a future-proof user experience. The solutions are offered to end users via various integration points such as software development kits (SDKs) and cloud-based mobile applications (e.g. Keyboard Wedge, Enterprise Browser, Flow) that are customizable to match the needs of various enterprise barcode scanning scenarios. The solutions also serve as a basis of Enterprise Browser and Flow, Scandit’s rapid application development platform, which integrates functions to support Order Entry, Proof of Delivery, and Asset Management. Through its cloud-based scan analytics services, Scandit also serves as a tool of user engagement monitoring and helps retailers and brands better understand their customers. With each barcode scanned by the customer using the mobile application, the Scandit platform can collect information on the type of codes and products scanned by the user, the devices used, the time and location of the scanning activity (home, store, office; if shared by the end user). The image recognition algorithm leveraged by the platform is constantly updated and improved using the respective information. Thus, Scandit’s platform is not only designed to support more users, it actually gains from having more users that contribute towards improving the platform’s accuracy levels. Visionary Innovation Cost optimization is one of the major considerations and objectives of a brand or a retailer behind revamping its brick-and-mortar infrastructure. Scandit’s solutions are designed to help clients lower their operational costs and enjoy unprecedented gains. By using mobile phones as a platform for implementation and innovation, Scandit has enabled retailers to get rid of device ownership costs as their employees and customers can make use of their own devices with a simple app installation. Along with cost, the smartphone-based solution has also allowed Scandit to leverage a more superior suite of hardware
  6. 6. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 6 "We Accelerate Growth" capabilities that are now integrated into smartphones. In fact, Scandit has formed partnerships with device manufacturers to maintain the device-agnostic nature of its solutions. For instance, Scandit’s deployment across dm-drogerie markt, a German retailer, was intended to empower employees to manage shelfs and access inventory and sales data. The entire deployment was carried out using 25,000 Samsung Galaxy A5 smartphone devices enabled with MatrixScan. Deploying a retail automation solution on such a large scale, Scandit has set benchmarks for the industry, guiding them towards recognizing and remediating the issues that can be expected in future deployments. Scandit’s augmented reality offerings are one-of-a-kind and have empowered customers to make informed purchase decisions as well as assisted sales representatives to handle critical day-to-day operational tasks (e.g. shelf management, stock taking, click & collect) more efficiently, while freeing up time to engage in informative dialogues with customers. In today’s connected world, sales representatives often encounter situations where customers are more informed about the product than they are. By gathering information quickly, sales representatives can manage more merchandise without having to memorize detailed information about it. Scandit’s vision of empowering sales representatives by delivering to them product information in real-time is concurrent with the changing scenario of multi-brand retail, where physical stores are limiting the number of sales representatives on the shop floor, compelling the representatives to gather knowledge on more products, brands, and categories than ever before. In today’s customer-sales rep interactions, Scandit’s technology platform and solutions can be used to facilitate deeper conversations with customers where the app helps sales representatives demonstrate the different product features and uses or helps customers compare products by multiple parameters. Application Diversity Scandit’s mobile data capture solution has been designed for implementation in multiple industry verticals beyond retail, including logistics and transportation, manufacturing, and technology. The company’s solutions are customizable to meet client needs but also feature out-of-the-box scanning workflows and cloud services that can integrate with a client’s existing IT infrastructure. Frost & Sullivan appreciates that deployment of Scandit is not only profitable at the customer level, but across the whole supply chain, helping brands take charge of their processes by maintaining product visibility from the manufacturing floor to the shop floor, and even to the extent of knowing which customer purchased a particular product. Multiple stakeholders from various industries are covered within this process, ranging from manufacturer and transportation service provider to retailer. With these features, Scandit maintains its applicability across industries and is flexible enough to fit the diverse needs of each application.
  7. 7. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 7 "We Accelerate Growth" Conclusion Scandit exemplifies innovation with its approach to automating retail merchandizing and purchasing processes, empowering both customers and associates to make informed decisions. The future of retail is app-driven, and Scandit’s solutions contribute towards bridging the gap between online and offline retail. The smartphone enabled barcode reading technology helps retailers stay competitive with online platforms and customize the in-store experience to match the expectations of their digitally-dependent customers. The company has developed promising solutions and has proved the superiority of its technology as a part of multiple large-scale deployments that have resulted in cost savings and efficiency for all users. The various Scandit deployments have empowered retail stores to take informed decision according to the needs of their modern customers. For its strong overall performance, Scandit is recognized with Frost & Sullivan’s 2018 Technology Innovation Award.
  8. 8. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 8 "We Accelerate Growth" Significance of Technology Innovation Ultimately, growth in any organization depends upon finding new ways to excite the market and upon maintaining a long-term commitment to innovation. At its core, technology innovation, or any other type of innovation, can only be sustained with leadership in three key areas: understanding demand, nurturing the brand, and differentiating from the competition. Understanding Technology Innovation Technology innovation begins with a spark of creativity that is systematically pursued, developed, and commercialized. That spark can result from a successful partnership, a productive in-house innovation group, or a bright-minded individual. Regardless of the source, the success of any new technology is ultimately determined by its innovativeness and its impact on the business as a whole.
  9. 9. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 9 "We Accelerate Growth" Key Benchmarking Criteria For the Technology Innovation Award, Frost & Sullivan analysts independently evaluated two key factors—Technology Attributes and Future Business Value—according to the criteria identified below. Technology Attributes Criterion 1: Industry Impact Requirement: Technology enables the pursuit of groundbreaking ideas, contributing to the betterment of the entire industry. Criterion 2: Product Impact Requirement: Specific technology helps enhance features and functionalities of the entire product line for the company. Criterion 3: Scalability Requirement: Technology is scalable, enabling new generations of products over time, with increasing levels of quality and functionality. Criterion 4: Visionary Innovation Requirement: Specific new technology represents true innovation based on a deep understanding of future needs and applications. Criterion 5: Application Diversity Requirement: New technology serves multiple products, multiple applications, and multiple user environments. Future Business Value Criterion 1: Financial Performance Requirement: Potential is high for strong financial performance in terms of revenues, operating margins, and other relevant financial metrics. Criterion 2: Customer Acquisition Requirement: Specific technology enables acquisition of new customers, even as it enhances value to current customers. Criterion 3: Technology Licensing Requirement: New technology displays great potential to be licensed across many sectors and applications, thereby driving incremental revenue streams. Criterion 4: Brand Loyalty Requirement: New technology enhances the company’s brand, creating and/or nurturing brand loyalty. Criterion 5: Human Capital Requirement: Customer impact is enhanced through the leverage of specific technology, translating into positive impact on employee morale and retention.
  10. 10. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 10 "We Accelerate Growth" Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Frost & Sullivan analysts follow a 10-step process to evaluate Award candidates and assess their fit with select best practice criteria. The reputation and integrity of the Awards are based on close adherence to this process. STEP OBJECTIVE KEY ACTIVITIES OUTPUT 1 Monitor, target, and screen Identify Award recipient candidates from around the globe  Conduct in-depth industry research  Identify emerging sectors  Scan multiple geographies Pipeline of candidates who potentially meet all best- practice criteria 2 Perform 360-degree research Perform comprehensive, 360-degree research on all candidates in the pipeline  Interview thought leaders and industry practitioners  Assess candidates’ fit with best-practice criteria  Rank all candidates Matrix positioning of all candidates’ performance relative to one another 3 Invite thought leadership in best practices Perform in-depth examination of all candidates  Confirm best-practice criteria  Examine eligibility of all candidates  Identify any information gaps Detailed profiles of all ranked candidates 4 Initiate research director review Conduct an unbiased evaluation of all candidate profiles  Brainstorm ranking options  Invite multiple perspectives on candidates’ performance  Update candidate profiles Final prioritization of all eligible candidates and companion best-practice positioning paper 5 Assemble panel of industry experts Present findings to an expert panel of industry thought leaders  Share findings  Strengthen cases for candidate eligibility  Prioritize candidates Refined list of prioritized Award candidates 6 Conduct global industry review Build consensus on Award candidates’ eligibility  Hold global team meeting to review all candidates  Pressure-test fit with criteria  Confirm inclusion of all eligible candidates Final list of eligible Award candidates, representing success stories worldwide 7 Perform quality check Develop official Award consideration materials  Perform final performance benchmarking activities  Write nominations  Perform quality review High-quality, accurate, and creative presentation of nominees’ successes 8 Reconnect with panel of industry experts Finalize the selection of the best-practice Award recipient  Review analysis with panel  Build consensus  Select recipient Decision on which company performs best against all best-practice criteria 9 Communicate recognition Inform Award recipient of Award recognition  Present Award to the CEO  Inspire the organization for continued success  Celebrate the recipient’s performance Announcement of Award and plan for how recipient can use the Award to enhance the brand 10 Take strategic action Upon licensing, company is able to share Award news with stakeholders and customers  Coordinate media outreach  Design a marketing plan  Assess Award’s role in future strategic planning Widespread awareness of recipient’s Award status among investors, media personnel, and employees
  11. 11. BEST PRACTICES RESEARCH © Frost & Sullivan 2018 11 "We Accelerate Growth" The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Frost & Sullivan’s 360-degree research methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. The integration of these research disciplines into the 360-degree research methodology provides an evaluation platform for benchmarking industry participants and for identifying those performing at best-in-class levels. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages more than 50 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from 45 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com. 360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS

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