ion retailing

ion retailing

(Ion)

PROCESSES

  • value proposition
  • value creation
  • value delivery
  • value capture (appropriation: making money from the products)

CHALLENGES

  • from brick-and-mortar retailer (siloed business model) to e-commerce business (omnichannel business model)
  • move focus from what is offered to also on how it is sold
  • go online,
  • developed web-based stores and mobile apps,
  • increase the number of customer touchpoints throughout the digital space,
  • merge the physical and online worlds as part of their omnichannel agenda.
  • move value creation outside the organizational borders and is co-created with a firm’s partners and customers
  • review the purpose of the retail space fom a strictly fulfillment to a communicational, experiential, and transactional one

INNOVATION

Value Proposition - Offering a seamless customer experience : - Enabling shopping across different channels utilizing digital technologies (e.g., mobile channel) - Providing proper communication and information flows : - IT system that supports information flows across all channels - Mobile channels encompass communicational and transactional aspects of the retailer-customer interaction - Complementing products : - Adding services and/or products with a supplementary function - understanding customers' shopping behavior : - Using data analytics Value Creation and Delivery - Designing stores to follow the proposed offering, matching the needs and values of customers: - Developing a mobile app for self-service in a physical store;
- Use of in-store technology and mobile and social media platforms; - Use in-store devices to help customers find the product within the store, order products to be delivered to that store (click & collect) or to the customer’s home, and—if the customer is in the changing room—make a payment - Using hand-held machines, with an RFID tag for tracking the products, used by employees for monitoring product availability and inventory control - Training and engaging sales associates for new experience-oriented physical stores - Emphasizing more on customer satisfaction and store experience and less on sales volumes per associate - Adapting organizational structure to support such exploration - Directing relevant offerings to customers based on data analytics - Offering personalized promotions - Creating partnerships that help co-create proposed value - Collaboration with companies to cocreate in-store experience - Outsourcing operation of digital technology elements - Partners that provide and maintain IT systems (e.g., mobile payments, RFID)

Value Appropriation - Achieving operational efficiency and operational effectiveness through the usage of digital technologies Adopting new technologies (e.g., RFID) Matching demand by analyzing customer data (e.g., deciding on a store location) - Leveraging complementarities Product complemented with superior customer service

REFS