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Why Most Smart Store Pilots Fail (And How to Build One That Doesn’t) | 5IM · Omni Talk Retail

• 0:00
  Foreign
• 0:11
  minutes
• 0:11
  is
• 0:12
  G
• 0:12
  Store's
• 0:12
  Troy
• 0:13
  Sidewick
• 0:13
  to
• 0:13
  share
• 0:14
  his
• 0:14
  tried
• 0:14
  and
• 0:14
  true
• 0:15
  tips
• 0:15
  on
• 0:16
  tech
• 0:16
  for
• 0:16
  the
• 0:16
  world's
• 0:17
  smartest
• 0:17
  stores.
• 0:18
  Troy
• 0:19
  Many
• 0:19
  retailers
• 0:19
  are
• 0:20
  looking
• 0:20
  at
• 0:20
  tech
• 0:20
  like
• 0:20
  RFID
• 0:21
  and
• 0:21
  inventory
• 0:22
  management
• 0:22
  software
• 0:22
  to
• 0:23
  be
• 0:23
  more
• 0:23
  agile
• 0:23
  as
• 0:24
  they
• 0:24
  encounter
• 0:24
  more
• 0:25
  and
• 0:25
  more
• 0:25
  market
• 0:25
  uncertainty
• 0:27
  with
• 0:27
  what
• 0:27
  tech
• 0:27
  is
• 0:27
  critical
• 0:28
  for
• 0:28
  stores
• 0:29
  to
• 0:29
  have
• 0:29
  right
• 0:29
  now.
• 0:30
  It's
• 0:30
  not
• 0:30
  just
• 0:31
  about
• 0:31
  knowing
• 0:32
  what's
• 0:32
  in
• 0:32
  stock,
• 0:33
  it's
• 0:33
  about
• 0:33
  being
• 0:33
  able
• 0:34
  to
• 0:34
  move
• 0:34
  fast
• 0:35
  when
• 0:35
  things
• 0:35
  change
• 0:35
  in
• 0:36
  the
• 0:36
  store.
• 0:37
  So
• 0:37
  the
• 0:37
  smartest
• 0:38
  stores
• 0:38
  are
• 0:38
  using
• 0:39
  RFID
• 0:40
  in
• 0:40
  their
• 0:40
  inventory
• 0:41
  systems
• 0:41
  as
• 0:42
  a
• 0:42
  foundation,
• 0:43
  but
• 0:43
  then
• 0:44
  they're
• 0:44
  layering
• 0:44
  on
• 0:45
  tech
• 0:45
  on
• 0:45
  top
• 0:46
  of
• 0:46
  that
• 0:46
  that
• 0:46
  helps
• 0:46
  them
• 0:47
  react
• 0:47
  faster.
• 0:48
  So
• 0:48
  think
• 0:48
  about
• 0:49
  visibility,
• 0:50
  exception
• 0:51
  based
• 0:51
  workflows,
• 0:52
  predictive
• 0:53
  alerts.
• 0:54
  So
• 0:54
  not
• 0:54
  just
• 0:55
  dashboards
• 0:56
  that
• 0:56
  are
• 0:57
  kind
• 0:57
  of
• 0:57
  collecting
• 0:57
  dust,
• 0:58
  but
• 0:59
  stuff
• 0:59
  that
• 0:59
  really
• 0:59
  actions
• 1:00
  the
• 1:00
  store
• 1:00
  associates
• 1:01
  and
• 1:01
  the
• 1:01
  people
• 1:01
  that
• 1:02
  work
• 1:02
  in
• 1:02
  the
• 1:02
  stores,
• 1:02
  what
• 1:03
  to
• 1:03
  do,
• 1:04
  telling
• 1:05
  them
• 1:05
  what
• 1:05
  to
• 1:05
  do.
• 1:06
  And
• 1:07
  for
• 1:07
  retailers
• 1:08
  that
• 1:08
  have
• 1:09
  some
• 1:09
  of
• 1:09
  this
• 1:09
  technology,
• 1:10
  but
• 1:10
  the
• 1:10
  older
• 1:11
  version,
• 1:11
  like
• 1:11
  the
• 1:11
  handheld
• 1:12
  RFID
• 1:13
  readers,
• 1:14
  that's
• 1:15
  perfect.
• 1:15
  So
• 1:16
  keep
• 1:16
  that
• 1:17
  and
• 1:17
  you
• 1:18
  can
• 1:18
  build
• 1:18
  on
• 1:18
  that
• 1:18
  with
• 1:19
  the
• 1:19
  overhead
• 1:19
  systems
• 1:20
  and
• 1:20
  the
• 1:20
  newer
• 1:20
  tech,
• 1:22
  the
• 1:22
  handhelds
• 1:22
  still
• 1:23
  come
• 1:23
  into
• 1:23
  play
• 1:23
  and
• 1:24
  still
• 1:24
  have
• 1:24
  a
• 1:24
  purpose.
• 1:25
  So
• 1:25
  the
• 1:25
  overhead
• 1:26
  readers
• 1:26
  we're
• 1:26
  deploying
• 1:27
  now
• 1:27
  eliminate
• 1:28
  the
• 1:28
  manual
• 1:28
  work
• 1:29
  and
• 1:29
  give
• 1:30
  stores
• 1:30
  and
• 1:30
  the
• 1:31
  associates
• 1:31
  time
• 1:31
  back.
• 1:32
  So
• 1:32
  it's
• 1:32
  not
• 1:32
  replacing
• 1:33
  the
• 1:33
  people,
• 1:33
  it's
• 1:33
  helping
• 1:34
  them
• 1:34
  focus
• 1:34
  on
• 1:35
  what
• 1:35
  drives
• 1:36
  sales
• 1:36
  and
• 1:36
  engagement
• 1:37
  with
• 1:37
  the
• 1:37
  customers.
• 1:38
  And
• 1:38
  not
• 1:38
  counting
• 1:39
  socks
• 1:40
  in
• 1:40
  the
• 1:40
  back
• 1:40
  of
• 1:40
  the
• 1:41
  store.
• 1:41
  What
• 1:41
  if
• 1:42
  you're
• 1:42
  a
• 1:42
  mass
• 1:42
  retailer
• 1:43
  though,
• 1:43
  that
• 1:43
  might
• 1:44
  have
• 1:44
  some
• 1:44
  items
• 1:45
  that
• 1:45
  are
• 1:45
  RFID
• 1:45
  tag,
• 1:46
  but
• 1:46
  not
• 1:46
  all
• 1:46
  of
• 1:46
  them.
• 1:47
  What
• 1:48
  tech
• 1:48
  or
• 1:48
  what
• 1:48
  solutions
• 1:49
  do
• 1:49
  you
• 1:49
  put
• 1:49
  in
• 1:49
  place
• 1:49
  if
• 1:50
  that's
• 1:50
  the
• 1:50
  scenario.
• 1:52
  And
• 1:52
  that's
• 1:52
  most
• 1:53
  of
• 1:53
  them,
• 1:53
  I
• 1:54
  think
• 1:54
  there
• 1:55
  aren't
• 1:56
  100%
• 1:57
  or
• 1:57
  many
• 1:57
  aren't
• 1:58
  even
• 1:58
  50%
• 2:00
  RFID
• 2:01
  tag.
• 2:01
  So
• 2:02
  it's
• 2:02
  just
• 2:02
  a
• 2:02
  playbook
• 2:03
  that
• 2:03
  has
• 2:04
  to
• 2:04
  be
• 2:04
  considered
• 2:05
  where
• 2:05
  you
• 2:05
  have
• 2:05
  overhead
• 2:06
  RFID
• 2:06
  for
• 2:07
  the
• 2:07
  fast
• 2:07
  moving
• 2:07
  apparel
• 2:08
  type
• 2:08
  of
• 2:08
  items.
• 2:09
  You
• 2:10
  keep
• 2:10
  your
• 2:10
  handheld
• 2:11
  scanning
• 2:11
  systems
• 2:12
  for
• 2:12
  other
• 2:12
  RFID
• 2:13
  that
• 2:13
  aren't
• 2:13
  as
• 2:14
  conducive
• 2:14
  for
• 2:14
  overhead.
• 2:15
  And,
• 2:15
  and
• 2:15
  then
• 2:16
  now
• 2:16
  we're
• 2:16
  seeing
• 2:17
  a
• 2:18
  lot
• 2:18
  of
• 2:18
  piloting
• 2:18
  around
• 2:19
  computer
• 2:20
  vision
• 2:20
  and
• 2:20
  that's
• 2:20
  where
• 2:20
  this
• 2:21
  is
• 2:21
  going
• 2:21
  to
• 2:21
  go.
• 2:22
  So
• 2:22
  cameras,
• 2:23
  looking
• 2:23
  at
• 2:24
  things,
• 2:25
  you
• 2:25
  know,
• 2:25
  and
• 2:26
  figuring
• 2:26
  out
• 2:27
  what
• 2:27
  your
• 2:27
  stock
• 2:27
  is
• 2:29
  combined
• 2:29
  with
• 2:29
  RFID
• 2:30
  and
• 2:30
  then
• 2:30
  combined
• 2:31
  with
• 2:31
  older
• 2:31
  school
• 2:31
  solutions
• 2:32
  like
• 2:32
  handheld
• 2:33
  readers
• 2:33
  and
• 2:33
  POS
• 2:34
  data,
• 2:35
  all
• 2:35
  that
• 2:36
  combined
• 2:36
  for
• 2:36
  those
• 2:37
  big
• 2:37
  stores
• 2:37
  will
• 2:38
  be
• 2:38
  the
• 2:38
  answer
• 2:38
  in
• 2:38
  the
• 2:39
  future.
• 2:40
  Well,
• 2:40
  I
• 2:40
  love
• 2:40
  that
• 2:40
  older
• 2:41
  school
• 2:41
  solutions.
• 2:42
  All
• 2:42
  right,
• 2:42
  so
• 2:42
  if
• 2:43
  I'm
• 2:43
  a
• 2:43
  retail
• 2:43
  executive
• 2:43
  listening
• 2:44
  right
• 2:44
  now,
• 2:44
  Troy,
• 2:45
  and,
• 2:45
  and
• 2:45
  I
• 2:45
  want
• 2:46
  to,
• 2:46
  and
• 2:46
  I'm
• 2:46
  bought
• 2:46
  in
• 2:47
  on
• 2:47
  this
• 2:47
  whole
• 2:47
  smart
• 2:47
  store
• 2:48
  idea,
• 2:48
  what
• 2:48
  does
• 2:48
  a
• 2:48
  smart
• 2:49
  store
• 2:49
  pilot
• 2:49
  look
• 2:50
  like
• 2:50
  and
• 2:50
  how
• 2:51
  long
• 2:51
  does
• 2:51
  it
• 2:51
  take
• 2:51
  to
• 2:51
  get
• 2:51
  a
• 2:52
  pilot
• 2:52
  up
• 2:52
  and
• 2:52
  running?
• 2:53
  Yeah,
• 2:54
  so
• 2:55
  it
• 2:56
  wasn't
• 2:56
  always
• 2:56
  this
• 2:56
  way
• 2:57
  and
• 2:57
  we
• 2:57
  weren't
• 2:58
  always
• 2:58
  this
• 2:58
  good,
• 2:58
  but
• 2:59
  we've
• 2:59
  become
• 2:59
  pretty
• 2:59
  good
• 3:00
  at
• 3:00
  moving
• 3:00
  fast.
• 3:01
  So
• 3:01
  a
• 3:02
  typical
• 3:02
  pilot
• 3:02
  takes
• 3:03
  60
• 3:04
  to
• 3:04
  90
• 3:04
  days
• 3:05
  to
• 3:05
  kick
• 3:05
  from
• 3:05
  time
• 3:06
  you
• 3:06
  kick
• 3:06
  it
• 3:06
  off
• 3:07
  until
• 3:07
  getting
• 3:08
  insights
• 3:09
  from
• 3:09
  that
• 3:09
  pilot.
• 3:10
  So,
• 3:11
  you
• 3:11
  know,
• 3:12
  there's
• 3:12
  plugging
• 3:13
  in
• 3:13
  things
• 3:13
  and
• 3:13
  there's
• 3:13
  installing
• 3:14
  things,
• 3:14
  but
• 3:14
  it's
• 3:14
  not
• 3:15
  about
• 3:15
  plugging
• 3:15
  in
• 3:16
  sensors
• 3:16
  and
• 3:16
  waiting.
• 3:17
  It's
• 3:17
  kind
• 3:17
  of
• 3:18
  like
• 3:18
  live
• 3:18
  fire
• 3:19
  testing
• 3:19
  with
• 3:19
  the
• 3:20
  store
• 3:20
  associates.
• 3:21
  So
• 3:23
  does
• 3:23
  it
• 3:23
  reduce
• 3:23
  the
• 3:23
  BOPIS
• 3:24
  misses
• 3:25
  or
• 3:25
  the
• 3:25
  skips
• 3:26
  in
• 3:26
  the
• 3:26
  BOPIS
• 3:27
  process
• 3:27
  or
• 3:28
  does
• 3:29
  it
• 3:29
  help
• 3:29
  associates
• 3:30
  find
• 3:31
  products
• 3:31
  faster
• 3:31
  to
• 3:31
  help
• 3:32
  the
• 3:32
  customer?
• 3:33
  Are
• 3:33
  we
• 3:33
  saving
• 3:34
  labor
• 3:35
  and
• 3:35
  focusing
• 3:36
  on
• 3:36
  what's
• 3:36
  really
• 3:36
  important
• 3:37
  for
• 3:37
  sales?
• 3:38
  So,
• 3:39
  you
• 3:39
  know,
• 3:39
  a
• 3:39
  lot
• 3:40
  of
• 3:40
  pilots
• 3:41
  are
• 3:41
  tech
• 3:41
  showcases.
• 3:42
  That's
• 3:42
  what
• 3:42
  you'll
• 3:43
  see
• 3:43
  when
• 3:43
  you
• 3:43
  go
• 3:43
  to
• 3:44
  customers
• 3:44
  and
• 3:44
  clients.
• 3:46
  That's
• 3:46
  not
• 3:47
  what
• 3:47
  these
• 3:47
  should
• 3:47
  be.
• 3:47
  They
• 3:48
  should
• 3:48
  be
• 3:48
  behavior
• 3:48
  changing
• 3:49
  labs
• 3:49
  where
• 3:50
  we
• 3:50
  change
• 3:50
  how
• 3:50
  the
• 3:50
  associates
• 3:51
  act
• 3:52
  with
• 3:52
  the
• 3:52
  customers
• 3:53
  in
• 3:53
  the
• 3:53
  store.
• 3:54
  And
• 3:54
  then
• 3:54
  they'll
• 3:55
  want
• 3:55
  this
• 3:55
  tech.
• 3:56
  If
• 3:56
  it's
• 3:56
  working,
• 3:57
  they'll
• 3:57
  want
• 3:57
  it
• 3:57
  and
• 3:58
  they'll
• 3:58
  ask
• 3:58
  for
• 3:58
  it
• 3:59
  after
• 3:59
  the
• 4:00
  pilot's
• 4:00
  done.
• 4:02
  So
• 4:03
  where
• 4:03
  is
• 4:04
  the
• 4:04
  smart
• 4:04
  store
• 4:05
  tech
• 4:05
  kind
• 4:06
  of
• 4:06
  heading?
• 4:06
  Troy,
• 4:07
  what
• 4:07
  do
• 4:07
  we
• 4:07
  think
• 4:08
  we'll
• 4:08
  see
• 4:08
  after
• 4:09
  some
• 4:09
  of
• 4:09
  those
• 4:09
  deployments?
• 4:10
  Deployments
• 4:10
  have
• 4:10
  been
• 4:10
  done.
• 4:10
  Those
• 4:11
  pilots
• 4:11
  have
• 4:11
  been
• 4:11
  done.
• 4:12
  Where?
• 4:12
  Where?
• 4:12
  What
• 4:12
  is
• 4:13
  the
• 4:13
  art
• 4:13
  of
• 4:13
  the
• 4:13
  possible
• 4:13
  here?
• 4:15
  So
• 4:15
  I
• 4:15
  think
• 4:15
  it's,
• 4:16
  it's
• 4:16
  kind
• 4:16
  of
• 4:17
  like
• 4:17
  the.
• 4:17
  I
• 4:18
  mean
• 4:18
  I've
• 4:18
  seen
• 4:18
  this
• 4:18
  in
• 4:19
  retail
• 4:19
  for
• 4:19
  a
• 4:19
  long
• 4:20
  time,
• 4:20
  this
• 4:20
  word,
• 4:20
  but
• 4:21
  I
• 4:21
  think
• 4:21
  we're
• 4:21
  really
• 4:21
  there
• 4:22
  in
• 4:22
  the
• 4:22
  orchestration
• 4:23
  era.
• 4:24
  So.
• 4:25
  So
• 4:25
  all
• 4:26
  these
• 4:26
  things,
• 4:26
  all
• 4:26
  these
• 4:27
  devices,
• 4:27
  the
• 4:27
  stuff
• 4:28
  we
• 4:28
  just
• 4:28
  talked
• 4:28
  about
• 4:28
  playing
• 4:29
  together,
• 4:30
  the
• 4:30
  magic
• 4:31
  is
• 4:31
  when
• 4:31
  they're
• 4:31
  all
• 4:31
  working
• 4:32
  together.
• 4:32
  So
• 4:33
  planogram
• 4:34
  compliance,
• 4:34
  automated
• 4:35
  replenishment
• 4:36
  from
• 4:36
  back
• 4:36
  of
• 4:36
  the
• 4:37
  house
• 4:37
  to
• 4:37
  the
• 4:37
  front
• 4:37
  of
• 4:38
  the
• 4:38
  house,
• 4:39
  Bopus
• 4:39
  triggers.
• 4:40
  So
• 4:40
  it's
• 4:40
  not
• 4:41
  just
• 4:41
  merchandise,
• 4:41
  it's
• 4:42
  not
• 4:42
  just
• 4:42
  inventory.
• 4:42
  It's
• 4:42
  like
• 4:43
  merchandising,
• 4:44
  staffing,
• 4:44
  fulfillment,
• 4:45
  shrink
• 4:46
  the
• 4:47
  store.
• 4:48
  Tech
• 4:48
  becomes
• 4:49
  like
• 4:49
  a
• 4:49
  central
• 4:49
  nervous
• 4:50
  system
• 4:51
  so
• 4:51
  that
• 4:51
  these
• 4:52
  retailers
• 4:52
  and
• 4:52
  most
• 4:53
  importantly
• 4:53
  their
• 4:53
  associates
• 4:54
  can
• 4:54
  help
• 4:54
  the
• 4:54
  customers
• 4:55
  and
• 4:55
  help
• 4:56
  sales.
• 4:56
  So
• 4:56
  it's
• 4:56
  really
• 4:57
  all
• 4:57
  the
• 4:57
  orchestration
• 4:58
  around
• 4:58
  all
• 4:58
  this
• 4:59
  tech
• 4:59
  coming
• 4:59
  together.
• 5:01
  Awesome.
• 5:02
  Thanks,
• 5:02
  Troy.
• 5:03
  Thank
• 5:03
  you,
• 5:03
  Troy.