The development and implementation of new technology is vital to the future of retail. With all of the choices available, knowing when to start and who to team up with can make all the difference. But is it is more effective to build an internal innovation lab, hire a strategic partner, or create an effective hybrid of the two?
For example, should a retail company pair up with an augmented reality company’s existing platform or help develop an AR system to deliver a show-stopping customer experience? Retail TouchPoints uncovered a few examples of partnerships that might help companies decide if and when, and with whom, to take the tech plunge.
The key to success is to choose a match that mirrors your values and possesses brand and tech strength. And, of course, financial support. Last month, Sesame Workshop, producers of the iconic children’s brand Sesame Street, announced Sesame Ventures, an internal team that will partner with venture capital firms to make investments in for-profit startups that support its mission.
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Its first partner is Collaborative Fund and together they will manage a new $10 million fund called Collab+Sesame Fund. Startups focused on education, media, family development, local and cultural development, food, health and wellness will benefit the company’s mission of helping kids grow smarter, stronger and kinder.
Any relevant retail startup teaming with Collab+Sesame would benefit right away, seizing an opportunity to work closely with and utilize Sesame Workshop’s advanced research and global reach.
From The Ground Up
For those who want to solve their problems head-on and hands-on, it is possible to approach things from a more DIY approach. As reported, retailers such as Macy’s, Neiman Marcus, Zappos, Sephora and Walmart are among the growing list of retailers launching internal innovation labs.
These labs feature dedicated tech teams and change agents who focus on understanding shifting customer preferences, contributing actionable insights, investigating emerging technologies and solutions, and implementing new strategies across channels. In the age of the empowered customer, making tech serve both retailer and consumer could be the difference between keeping the doors open or closing them forever. Addressing specific concerns with an in-house experimentation and research and design team, while costly, can be most effective.
C Is For Cookie, AR Is For Augmented Reality
Of course, teaming up with a tech titan doesn’t necessarily mean it’s going to be gold, especially if you jump in too early. In 2012, Sesame Workshop announced they were teaming up with Qualcomm to utilize their Vuforia platform.
The union produced Big Bird’s Words, an augmented reality-based educational app. Preschoolers use a smartphone or tablet as a digital eye to build their vocabularies and make playtime digitally interactive. When pointed at a playset, the play environment comes alive through the device’s camera, transforming the playset into an interactive experience.
Qualcomm abandoned its AR division and sold its Vuforia platform to PTC, a tech firm interested in the Internet of Things, for $65 million in November 2015. Big Bird’s Words is still available through Google Play, currently garnering mixed reviews, possibly attributable to the fact that it was an early entry into AR apps and the gameplay didn’t deliver as much as promised.
Honey, I Shrunk The Fridge
Just unveiled at CES, Lowe’s Innovation Labs, a hub of Lowe’s Companies, Inc. and Marxent, virtual and augmented reality specialists, developed the Holoroom, an in-store and at-home virtual reality design tool that delivers a home improvement experience for customers.
Customers can design kitchens or bathrooms with an iPad by selecting from thousands of 3D representations of Lowe’s products, and then visualize their room in 360-degree virtual reality with an Oculus Rift.
Products like countertops, appliances, hardware and paint colors can be easily switched out to customize the room and help customers achieve their desired design.
They can then export their projects to YouTube 360 for viewing anytime, anywhere with Google Cardboard. Industry-wise the buzz is good and as the Holoroom is introduced into more markets, it will be interesting to see how the public reacts as AR looks to finally make its mark this year in a big way.
Innovation: In Cahoots Or Individual?
It’s never easy to take the plunge when implementing a new technology. Of course, timing is everything, but even if you’re not the first to do something, you can always improve on an existing method or experience.
Retailers should choose substance over flash; trendy gizmos are cool but do they deliver conversions or just encourage people to hang around? And whether you are buying the rights to use an existing platform or developing your very own custom design, teaming up with a company that can provide exceptional experience and knowledge — while it most certainly comes at a price — is priceless. As shoppers continue to embrace new technology you should always look for ways to get your tech match and vision met. And a financial backer never hurts; even if it is Grover.
