Retailer's Top 5 Challenges

Top 5 Challenges

In IHL’s recent survey, retailers were given a choice of 14 potential challenges ranging from fund availability to infrastructure to software development. They rated the following as the top 5 things that hold back successful deployment of mobile in their environments.

Having Proper Application in Place

By far the single biggest challenge reported (75%) from retailers in terms of deploying mobile devices was having the applications in place to actually make the devices useful. This is obviously critical as if the purpose of the device is for sales assist, not having the related applications to pull up previous order history, inventory visibility, and accessories that might go with an item would certainly stunt the potential sales increase using mobile.

What this indicates is that many retailers have delayed rolling out mobile because they have yet to complete their move to a single version of data for inventory and order systems as well as single system for customer data. However, if the purpose is simply to do line busting and speeding the checkout process, the hindrance is having an application that is available to handle the complete item catalog for the store. In either case, it makes total sense that the top challenge preventing mobile deployments is having the right software solution to make use of the systems.

Lack of Staff to Manage

Next in the line of challenges is having the appropriate staff both at the stores and at the district or home office to manage the devices and the users. Retailers continue to struggle to hire enough people in the IT departments to properly meet the needs of the organization. Deploying mobile devices at the store level adds to the number of qualified people needed. As such, simply having access to the people meet the needs to install, roll out and manage the devices and setup users, manage access control and security of those users on mobile devices is a key challenge for 60% of the respondents in the survey. This is particularly a problem in store environments that might experience annual turnover of 200-400% in associates. This is a problem across retail as the need for IT talent has outpaced the availability of that talent.

Support/Help Desk

Related to the challenge of having enough IT talent to manage devices and users, there is also the challenge of appropriately staffing the Support/Help Desk positions for all of the users of the devices and applications. 59% of the respondents mentioned having the resources to staff a help desk as a major challenge for deploying mobile devices in their stores. As many of these applications would work on both fixed devices and mobile devices, retailers need a way to diagnose issues as being related to the application, the device, or drivers. The same challenge for finding talent to manage the devices also comes into play when it comes to supporting them.

EMV or Payment Options

This next challenge is specific to the deployment of Mobile POS devices. 47% of respondents said that either EMV certification issues or lack of good payment options were a significant challenge in the deployment of Mobile POS. There are really several different sides to this issue. The first has nothing to do with the mobile technology, but rather a tremendous shortage of EMV certification experts that have delayed many retailers from getting certified by 2-3 years. Adding mobile POS requires an update to that certification and thus the potential for further delays.

The second significant issue here has been the availability of hardware products that match the mobile device choices and have the appropriate drivers. And then finally, the somewhat kludgy nature of many of these payment terminals and how they interact with the mobile devices can be an issue for some retailers. Purpose developed hardware can have devices built-in, but others seem like add-ons. Retailers have delayed deployments because the solutions do not match the ambiance or experience they hope to provide.

Managing/Monitoring Mobile Security

And finally, 45% of retailers report that Managing and Monitoring Mobile Security is a significant challenge to deploying mobile devices at the store level. Security is complex and takes on several facets. The first area is the physical security of the devices.

It would seem obvious that geofencing devices and “bricking” them outside of that fence would seem obvious, but there are numerous stories of retailers losing upwards of 50% of their consumer-grade devices within one year due to inadequate processes in this area.

Certainly, the physical security is a concern, but a bigger issue is the security of the data on the devices and locking down the interfaces and management of these devices. Many retailers are simply ill-equipped with the staff and knowledge to adequately protect devices at the store level.

It is critical that Bluetooth and WiFi networks are locked down and access via device is limited to a need-to-access level; having in place the proper procedures, access levels, while keeping these up-to-date with the rapid changes in personnel and devices/peripherals as required.

This is particularly daunting if a retailer enlists a Bring Your Own Device (BYOD) strategy. With the proliferation of cell phones and tablets this provides a dizzying number of combinations that must be secured and . managed at any one time. All of these factors provide unique security challenges and may delay deployments of mobile solutions at the . store level.

Despite the Challenges, Opportunities Provided by Mobile are Significant

In a market where consumers that once HAD to shop now must WANT to shop in stores, improving the customer experience is paramount to survival for many retailers, let alone success. The rewards of proper implementation are not only significant but also proven when best practices are adhered to and retailers do the groundwork to properly support the successful deployment. But what is obvious is that very few retailers can afford to deploy mobile devices at the store level without 3rd party assistance. Limited access to the amount of expertise and overall resources to successfully deploy mobile is a major hindrance to many retailers.

It is at this point where retailers must decide where they want to spend their time and where they want to be the experts internally and where bringing in a trusted partner for their mobile efforts makes sense.

Conclusion

In each of these Top 5 Challenges, there are companies that are experts at selection,deployment, management, support and security in a mobility as a service solution that can also include built-in technology upgrades. From IHL’s perspective, choosing to focus on application development and support of the customer experience is the best use of retailer’s internal resources and choosing a trusted partner for the other 4 of the Top 5 is the best approach for most companies.

Amazon and Walmart are not going away and retailers must move as quickly as possible to enhance the customer experience. Mobile solutions can be a key part of that improvement. Choosing what to do in-house,and whom to partner with are key decisions retailers must make to ensure success.

About IHL

IHL Group is a global research and advisory firm for the retail and hospitality industries. Through our research and data services, we provide the technology insight that companies need to effectively compete in a global market. IHL Group is a global research and advisory firm for the retail and hospitality industries. For more information, visit: https://www.ihlservices.com/

About Stratix

As the largest pure-play enterprise mobility specialist in the U.S., Stratix is dedicated to guaranteeing nonstop mobility. The company leverages 35+ years of expertise and experience to accelerate and inspire business mobility transformation for some of the world’s most iconic brands. Their SmartMobile programs ensure each client has the right technology, tools and support programs in place to stay ahead. For additional information, visit www.stratixcorp.com

What is your top mobile challenge ?

Managing Mobile Security
Help Desk Support
Lack of Staff to Manage
Device Asset Management