As the change cycles are quickening in the retail omni market there are reaction impacts to the retailers and the supply chain that require a great deal of attention in order to determine the appropriate reactions to the change. The changes are difficult at this time from the retailer perspective because these changes are buffeting in waves across the market place without a lot of time to determine the appropriate reactions. The new omni market world requires organization in order to identify and determine a reaction and then requires flexibility to react to the changes. The velocity of these actions will drive the market and unfortunately in this process will also disrupt the market in ways that will grow in impact and velocity. This will be unsettling for retailers that are accustomed to a measured progression through change while they make their way through the change until they reach a rhythm to respond to the changes.
Retailers must overcome their cultural tendency to wait for the the market to settle, because the market will not settle. More importantly the changes are not ending and will continue to build on each other to support changes to the changes, to the changes. This cycle of disruption and change in the market is built on a model of continuous change were the changes are in many cases building on the previous changes as technology catches up. Consumers are fundamentally changing the culture or the retail market and the omni market is the manifestation of this culture shift.
Retailers must meet these demands with their own cycle of continuous change in order to survive. Luckily most organizations accept and incorporate a continuous improvement process that can be expanded and utilized to identify and respond to the change. The continuous improvement model must be expanded though to the leadership of the retailers first and then pushed outward to engage and collaborate with partners from suppliers to end customers to be used as a basis to identify and respond to the changing market. It is important that the retail leadership embrace this model to change the culture, without this acceptance from leadership the continuous change model will not reach the critical mass of acceptance required to meet the velocity of change in the market.
The change cycles impacting the retail market will not slow and this is why it is so important for retailers to embrace the new model and the new culture quickly. The large legacy retailers are especially encumbered by large and relatively rigid operations that have been difficult to change in the past. These retailers must embrace the culture of change in order to identify and react to the quickening change cycles. Amazon as an example has a history of disrupting the market through quick cycles of change and engagement with the customers and this places them in an especially important position now to drive and encourage disruption in the market. Retailers must accept and react to this challenge to support the change and quickening cycles in order to survive.
And now for the audience participation portion of the show…
ECommerce will have wide ranging impacts on both the retail and manufacturing sectors. How can you focus these abilities to improve the consumer's experience? Improving the consumer’s experience will require a re-evaluation of the sales channels, the manufacturing channels and practices and the supply chain channels and practices from the raw materials to the consumers’ homes. In order to ensure and maintain success in this new reality you must harness the tools and capabilities in many new areas. How can you support these continuously changing requirements?