Keys to Making the Right Technology Decision and Investment

By Craig Rosenblum, Principal, Columbus Consulting

The magnitude of investments in running Grocery retail is never-ending and growing in today’s uber-competitive omnichannel environment.  Due to this, it is more important than ever for Retailers to ensure they make the right technology decisions to compete and thrive to best serve their customers. Recognizing the limited amount of human, intellectual, and financial resources available in one’s organization, to make the right technology choice and investment, Retailers must have a:

1. Strategic Plan and Priorities

Having a strategic plan is crucial for maintaining a clear vision and effectively prioritizing tasks to achieve both short-term and long-term business goals. When identifying, prioritizing, and sequencing technological investments, retailers should consider the following:

• Does it provide a strategic advantage?
• Does it drive efficiency?
• Does it mitigate a competitive threat?
• Does it enhance the shopper experience?
• Does it replace outdated or discontinued technology?
• What is the rate of technological advancement, and will it require frequent updates?
• What is the return on investment?
• Are you accounting for the cost of change?

2. Clearly Outlined Objectives

Having a strategic plan is crucial for maintaining a clear vision and effectively prioritizing tasks to achieve both short-term and long-term business goals. When identifying, prioritizing, and sequencing technological investments, retailers should consider the following:

• Does it provide a strategic advantage?
• Does it drive efficiency?
• Does it mitigate a competitive threat?
• Does it enhance the shopper experience?
• Does it replace outdated or discontinued technology?
• What is the rate of technological advancement, and will it require frequent updates?
• What is the return on investment?
• Are you accounting for the cost of change?

3. Defined Roadmap of Deployment

Project management is vital to ensure a timely and successful technology implementation. Project plans should include timelines outlining key milestones, roles, and responsibilities. Weekly project updates (documentation and meetings) and project governance are essential, as well as executive and steering/selection committees and resolution processes. Incorporating RASIC (Responsible, Approve, Support, Inform, and Consult) project management helps ensure project success.

4. Definition of Success and Key Performance Indicators

Success means starting with the end in mind. Before you start, you should be 100% clear on your measurement of success. Recognize that success can be defined in terms of achieving business (e.g., time efficiency), project (e.g., implemented on time and budget), and return on investment (e.g., optimizing sales, margin, or resource reduction – labor, utility, cost) objectives

5. Change Management Requirements

Understanding your culture and resources is essential to the decision-making process. Consider the following:

• Do you like to be at the forefront and be a leader with technology or a fast follower?
• Do you prefer a Best-in-Breed or single-partner solution?
• Are your technological and business resources already at capacity?
• Do you need to augment or outsource to ensure project success?
• Do you need strategic (e.g., defining roles, guardrails, attributes) and/or technical/implementation support?
• Is the training going to be for the organization or train-the-trainer?
• How much process change will be required?
• Culturally, does your organization digest change well?
• How does the investment in technology change job descriptions, responsibilities, and performance metrics?

Without these elements, making and implementing technology decisions becomes more at risk, challenging, time-consuming, and costly when updating or implementing new systems, technologies, or platforms to meet business needs.

Technology is an enabler, not a solution. 

ABOUT COLUMBUS CONSULTING

Columbus Consulting delivers solutions that drive true value and have been transforming the retail, grocery and CPG industries for over two decades. We are a retail consulting company of industry experts. Our approach is simple, if you do it, we do it. We are more than consultants; we are experienced practitioners who actually sat in our clients’ seats. We understand the challenges, know what questions to ask and deliver the right solutions. Columbus offers a unique, consumer-centric approach with an end-to-end perspective that bridges functional & organization silos from strategy to execution. Our specialties include: unified commerce, merchandising & category management, planning & inventory management, sourcing & supply chain, data & analytics, accounting, finance & operations, people & organization and information technology. Let us know how we can help you.  To learn more, visit COLUMBUSCONSULTING.COM.