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supply chain attacks, retail, Austin, air conditioning Cybersecurity expert Eliza-May Austin speaking while seated in a lecture theatre

How your air conditioning could start a cyberattack

  • min read
    • Many big businesses know they could be cybercrime targets and invest in defenses like software and training. That's why cybercriminals are increasingly attacking through smaller suppliers who don't have the same knowledge and resources. It's called a supply chain attack. In Tomorrow Unlocked's second episode in the hacker:HUNTER Behind the Screens series, Eliza-May Austin, CEO and co-founder of th4ts3cur1ty.company (That Security Company,) explains how US retail giant Target was attacked through a most unexpected device – the air conditioning. We ask Austin how businesses can prepare for supply chain attacks and how she thinks things are going for women in cybersecurity careers. In Tomorrow Unlocked's Hacker: HUNTER Behind the Screens video, you talk about the supply chain attack on Target in 2013. Why is this attack so important? Businesses must work with other businesses, which makes us all susceptible to a certain degree of risk. Take an airplane, for example. To go from concept to in the air involves hundreds of businesses, contractors and applications. It takes just one breach to compromise that trusted ecosystem. It's something we should all take seriously. Your business th4ts3cur1ty.company (That Security Company) helps companies large and small harden their supply chains. How do you do that? There are many things businesses can do to defend against supply chain attacks. For example, we run penetration testing, consult on governance, risk and compliance and importantly, logging, monitoring and vulnerability management. Are businesses becoming more aware of supply chain attacks and responding appropriately? I can't confidently say yes, which is why I'm vocal on the issue. I recently asked a small-to-medium company (SMB) that supplies services to the medical sector if they'd considered how an attack would impact their clients' security. I was met with such bemusement you'd think I'd asked for a sandwich. What's the most common problem making businesses vulnerable to supply chain attacks? Not knowing how prevalent it is. But also, some businesses that do understand the issue's scale get overwhelmed by it. These attacks aren't always sophisticated – simple measures can go a long way. How did you get into cybersecurity? I moved from a degree in forensic science to a degree in digital forensics, did some internships and the rest is history. You don't need a degree to be in cybersecurity. Is the industry giving women equal opportunities to enter and succeed yet? I think this industry, like any, is what you make of it. Cybersecurity is a fantastic career choice for women and should be promoted as such. What could employers do today to attract and retain more women? I get asked this a lot, so I wrote 15 ways to attract more women to your technical cybersecurity team. I've included simple, practical things like considering the physical environment. For example, if employees have to crawl around on the floor to plug in a laptop, that may feel degrading when wearing a skirt. I also recommend being more open-minded about what kind of people you need: What is Ladies Hacking Society (LHS) and why did you found it? LHS is an awesome community of women who come together to learn from one another and teach each other hacking. I wanted to create a technical option for women because I found mixed events were not really mixed (mainly men) whereas women's events revolved around governance or high-level theory. It's a lot of fun and a great bunch of people. Which is the most important lesson from your 11 leadership lessons from terrible managers, and why? Lesson 3: A sense of humor matters. People tend to take themselves too seriously. Encouraging people to laugh and joke does wonders for team morale and gets people through stressful times. Let's all calm down and have a giggle.  
insight story smart grids

As bills rise, smart businesses are saving with smart energy tech

  • min read
    • Alongside emissions reduction goals, energy prices have hoisted reducing energy consumption to the top of business agendas. In the UK, between 2022 and 2023, electricity prices rose 67 percent and gas prices 129 percent. In the US, energy prices are up as much as 40 percent. It's no longer a case of, should businesses cut their energy use, but how? Many organizations are looking for technologies that can help them better control their power use and use more renewable energy. As I wrote in this primer on electricity's history, a shocking 13 percent of the world's population, mostly in sub-Saharan Africa, have no access to electricity. Could more business investment in renewables help to bridge the gap? Kaspersky's new podcast, Insight Story, unpacks emerging tech trends with global specialists and businesses successfully using the tech. Episode 2 looks at smart energy. I speak with Feroz Koor, Group Head of Sustainability at Woolworths Holdings. South Africa and Singapore-based Nilesh Jadhav, Founder and CEO of BtrLyf creators Qi Square, and former Programme Director, EcoCampus initiative, Nanyang Technological University. BtrLyf is an "AI-enabled assessment and marketplace platform to plan and achieve super-low energy, net zero and green certified buildings, quickly and at super-low costs." It creates 'digital twins' that let businesses model a range of energy conservation measures to find out what will work best.  Slashing grocery energy bills Woolworths has some 1,400 stores in Sub-Saharan Africa, Australia and New Zealand selling groceries, clothing, homeware and more. "Retail food businesses have a large energy footprint," says Feroz. Sustainability data science experts ESource says energy costs make up around 15 percent of food retail overheads. Feroz's company opted for smart tech to become more energy-efficient. "We've sub-metered all our stores with smart meters. There are different meters for lighting, refrigeration and air conditioning for example, so we can see what's driving consumption." The tech isn't cheap but paid for itself fast. Feroz recounts a huge discovery: "After metering one store in a new shopping center, we found we were being billed for other stores' electricity – the meters paid for themselves on the first day by proving it. We often use smart meter data to challenge incorrect billing – you'd be surprised how common it is." Meanwhile, the meters helped identify small changes that could save a lot of power. From smarter stores to smarter buildings Nilesh Jadhav, Founder of Qi Square who created BtrLyf, says, "Our customers want to improve their energy efficiency and reduce reliance on imported energy. Our platform makes the data available. So far, we've made digital models of 20,000 buildings in Singapore." Modeling their buildings gives businesses an approachable window on a daunting task. "If businesses can do an initial assessment of how they could save energy today, then how they could go to net zero [greenhouse gas emissions,] they can see the bigger picture." Woolworths is approaching a similarly daunting task – to use 100 percent sustainable energy by 2030. Feroz says, "We've made the commitment because it's the right thing to do, but we've got our work cut out for us. We have several options, like self-generation at shopping center level or sourcing from independent bulk producers. We're looking at wheeling, where you buy energy from a producer who then 'wheels' it through a distribution network. " From smarter buildings to smarter energy grids Increasingly nations and energy companies are making electricity smarter at grid level, aiming to reduce emissions and improve energy security. Smart grids can detect and react to customer use patterns, empower consumers to be more energy efficient and encourage renewable energy production by buying excess. All this can maximize renewable energy use and minimize the use of fossil fuel to generate electricity. Nilesh continues, "Microgrids take it to a system level using central energy management software and batteries to manage fluctuations." Smart grids also enable a market that incentivizes renewable energy production. Nilesh says, "If you can't put solar panels on your roof but your neighbor can, you could make a power purchase agreement (PPA). Singapore also has a market for renewable energy credits: You can buy these credits instead of buying electricity directly. If I want renewable energy but can't pay upfront for solar panels, buying renewable energy credits encourages third parties to invest, then sell the power." Securing smarter energy solutions Fabio Assolini, Head of Kaspersky Global Research and Analysis Team for Latin America, advises companies and nations to approach smart energy tech with due caution. "We've seen destructive attacks on civilian energy infrastructure – not just power grids, but their systems too." Fabio says over the years, these kinds of attacks are increasing. In 2021, a ransomware attack shut down a major US fuel pipeline. The same year, IBM reported energy was the third most attacked sector. Kaspersky threat predictions for 2023 foresee hacker groups carrying out high-profile cyberattacks on civilian infrastructure – such as energy grids and public broadcasting – using advanced persistent threats (APTs.) Critical infrastructure makes an attractive target for cybercriminals because of how much disruption successful attacks cause. Fabio suggests businesses pay attention to the security of their in-house energy infrastructure, as it may be particularly vulnerable. "Corporate and personal power grids are not as well protected as national infrastructure. They're often connected to the internet using older, more vulnerable hardware, and software not readily updated. Do a full security audit before launching a microgrid or smart grid." The future of smart energy for business Nilesh sees smart energy tech evolving through user participation. "On the tech side, I hope it'll go the same way as the smartphone: More resources for companies and innovators to make applications that sit on a central platform. Users could then adopt energy management tech faster. Over time, you'll see more participation from consumers." On the energy side, he thinks peer-to-peer energy sales are the future. "More people will be 'prosumers:' Consuming and producing energy and being paid for excess. Everyone will have better energy-buying options." Feroz has simple advice for businesses wanting to reduce their energy footprint. "Start now. The sooner you start doing something, whether it's just understanding your footprint or what your needs are, the better." Listen to the full Insight Story audio series on Podbean or your usual podcast provider.
paper dead shredder

Is paper dead?

  • min read
    • For retailers, predicting customers' future wants and needs is crucial – especially in this era of disrupted supply chains. I hope you won't recognize this story as something that might happen in your business, but it demonstrates how soon retailers of all sizes could find themselves in a new future. I bought a blouse recently from a traveling vintage clothes seller. Picture several racks of bright retro outfits set up under a caravan awning with a changing room crafted from tie-dyed blankets. Incense hangs in the air, as does the ringing of tiny bells attached to the seller's impossibly long hair, jingling as she wanders around after customers, straightening coat hangers. To pay, I offer cash, but she instead presents me with a beautifully calligraphed sign showing her bank account details. Given the riskiness of this practice, I offer a moment of security education. She tells me she's in the habit of giving out her bank details because it means more sales, and keeping enough change around is hard when you're always on the road. Even those on the fringes are moving towards electronic payment for its convenience and customer preference, albeit sometimes not in ideal ways. When it comes to meeting customer expectations in how your transactions happen, are you ready for a future where paper money, receipts, plastic cards are a thing of the past? Could your retail business work in a world where all money is changing hands by smartphone? Among Kaspersky researchers' privacy prediction for 2023 is that we'll keep seeing smartphones and other smart devices encroaching on activities once dominated by paper and plastic cards. A future where all we'll need is a smartphone seems close when we're paying by near-field communication (NFC) like Apple or Samsung Pay or QR code like Swish, or using apps to show COVID-19 testing and vaccination status. What does this mean for paper and plastic transactions? And what privacy and security issues should business consider when it comes to doing it all by smartphone? Environmental reasons to stop using paper and plastic Some might say the sustainability drive to eliminate paper and plastic in business transactions is overplayed. While both have significant environmental impacts, business transactions are not a major source. Meanwhile, electronic transactions can be responsible for much energy use and the equipment used will ultimately become resource-heavy and hard-to-recycle ewaste. Gen Z, Millennials and those younger will do much to avoid adding more plastic and paper to the world. Regardless of environmental impact, consumer demand for more convenient paperless and cardless transactions will only grow. Processes likely to move to smartphone apps Digitized identity documents look set to be the next big frontier for smartphones. It's already been a common approach to declaring COVID-19 testing and vaccination status worldwide, but soon passports, driver licenses, student IDs and more will be made available through apps. Germany started using app-based ID cards in 2021. Around the same time, Apple announced several US states would make digital identity cards and driver licenses available using Apple Wallet. ID stored on phones brings convenience and risk. A well-implemented system would let stores verify customers' age without seeing personal details they don't need, like home address – also known as 'zero trust' security. Digitized IDs could also speed up know-your-customer (KYC) procedures when applying for a loan with a smartphone. But using a smartphone to store growing amounts of personal data introduces 'single point of failure' security risk. Those who develop and commission smartphone software like apps must ensure top-notch device security and privacy-preserving data storage. Cardless cash withdrawal at ATMs is taking off around the world, especially where bankcard fraud is more common, like India. Smartphone apps enable cardless withdrawals, for example, scanning a QR code on the ATM screen with a payment app like Google Pay, or using near-field communication (NFC.) Again, these transactions aren't without risk. Speaking to price-comparison service Bankrate, Ricardo Pina, founder of personal finance blog The Modest Wallet, said, "Since bank cards are being replaced by phones, criminals will now be more enticed to target and hack your phone to mine your data, information and even change your phone and bank app settings." When will paper and card transactions become history? Those who run businesses that experience higher overheads thanks to processing cash, cards and printed receipts may dare to dream of a world where these go the way of the 'check.' Ubiquitous throughout most of the 20th century, many banks have stopped issuing and accepting these. Check payment is expected to be extinct by 2026. Those old enough to remember when checks were commonplace might think they'd disappeared years ago. But sometimes these methods strongly persist in parts of an economy that need them for specific reasons. A few years ago, a friend and I hiked the five-day South West Coastal Path in Cornwall, UK – and yes, it was glorious. This part of the UK is far from any major city. We were surprised to notice most bed-and-breakfasts  accepted only cash or check. Once we understood the area's geography, we paid by check wherever we could. Traveling on foot and far from towns, it seemed unwise to part with cash we might need. These businesses told us they didn't take card payments because they only had customers in summer, making point-of-sale machines uneconomic. Similarly, can smartphones – and reliable access to affordable data to operate apps – be all things to all people in all places? While access to mobile technologies has certainly enabled greater economic participation from marginalized people, we can easily overestimate how many can and will use these technologies if we use them or see them used around us often. Pew Research estimates around 85 percent of the US population owns a smartphone, but in China and India, it's lower at 70 percent. While China leads the world in mobile payment adoption, smartphone ownership numbers don't tell us how many people could use their smartphone for payments – for example, successfully download and register to use payment apps, and access data when needed. Cash transactions still account for far more business than many people think – in 2021, customers used cash for over 20 percent of point-of-sale transactions globally, according to the International Currency Association. Many businesses wouldn't survive losing 20 percent of their sales. There is also the inevitable backlash against smartphones because of negative mental health impacts, seeing some choose to quit or radically reduce how much they use them. It seems paper- and card-based identity and payment options will be with us much longer than we think, if the lifecycle of check payment is anything to go by. For small business, alternative point-of-sale card payment providers are fast making accepting cards more affordable, making paying by card even more ubiquitous without reducing security. When it comes to taking payment, it 'pays' to be flexible and listen to what your customers want, rather than focusing on what suits your business. Meanwhile, keep an eye on evolving technology making retail transactions simpler and more affordable.
tale two metaverses

The Metaverse’s history shows we’re not quite ready for it

  • min read
    • In October 2021, Facebook Founder and CEO Mark Zuckerberg changed his company's brand name to Meta to reflect what he sees as the importance of the metaverse to their business strategy. Experienced using a virtual reality (VR) headset, the three-dimensional virtual environment lets characters (called avatars) engage in social and commercial activities much like real life. Many global business giants see the Metaverse as a huge commercial opportunity that will change how we live and work. Should your business get involved? I believe the Metaverse's history shows while it's an environment you should get familiar with, it may not be the time to invest big. Here's why. MMOGs have been around since the 1990s. Their popularity has risen fast worldwide with improved internet connectivity, computer power and immersive graphics. One such game, space simulator EVE Online, has seen over 60,000 players simultaneously playing. And like in the Metaverse, trading virtual items for real-world money in MMOGs has become big business. What's the Metaverse's attraction? The Metaverse has business potential because of our willingness to invest so much time and money in playing games online. In a 2022 virtual conference on the Metaverse, Datin Lorela Chia, CEO of Haus of Stylo, Malaysia, gave examples of the fashion and games industry collaborating, like creating and selling virtual garments for avatars. But it's not just about buying and selling things – the Metaverse offers a way to meet, discuss or learn that's more immersive than other online communication tools. Bill Gates said in 2021, "Within two to three years, I predict most virtual meetings will move from 2D camera image grids… to the Metaverse – a 3D space with digital avatars." Metaverse follows in Second Life's footsteps In almost every way except the VR headsets, there was a Metaverse from 2003, when Linden Labs launched virtual world Second Life. Second Life is a virtual world that lets users create avatars and settings, and teleport from one place to another in seconds. Second Life has an estimated 800,000 users and many of the characteristics of a real-world civilization – rules, citizen rights, homes, shops, universities and events. It has many business applications like hybrid conferences, virtual project meetings and data visualization for education and collaboration. IBM has used Second Life for internal meetings. BP for graduate recruitment and Imperial College London for virtual hospital tours. But with all its functionality and experience, Second Life hasn't gained mainstream commercial success. So why does Mark Zuckerberg believe his Metaverse has massive disruptive potential? What's enabling today's Metaverse? The answer lies in how the internet evolved since its birth in 1983. The power of 5G and fibre, smartphones and social media have all played a role. Today's advanced internet technologies make the Metaverse possible, but the devices and applications we use daily will determine whether it has significant commercial potential. Second Life runs on a desktop computer and connects to a network of Linden Lab servers. It's a security risk for businesses with network firewalls. Second Life is also 'synchronous:' users only get value from being online at the same time as other users. So there are no users in most Second Life locations most of the time. To use a real-world retail analogy, there's a lack of footfall. This is also true for the Metaverse. Its commercial potential will depend on user numbers and where they spend time. It's critical there's on-demand universal access across computers, laptops and mobile devices. Perhaps 'Web 3.0' will be the technology that delivers on making Metaverse experiences securely accessible to a global marketplace across different devices, but especially mobile devices like smartphones. What is Web 3.0 and why does it matter? IT industry analyst Robin Bloor recently said, "Web 3.0 is the third generation of the internet — a global network that permits intelligent interactions between all its users and devices." Web 3.0 is a theoretical new blockchain-based iteration of the web. It could provide increased data security, scalability and privacy for users. It would let users publish rich media content to a global audience and make a Metaverse more commercially viable than Second Life. By making the web more powerful, intuitive and secure, Web 3.0 could mean the volume of online users accessing and creating content grows faster. One major difference, most relevant to the Metaverse, is better handling of the 3D graphics needed for virtual worlds. Blockchain important to Metaverse commerce Metaverse settings are computer-generated environments or 360-degree photos and videos captured by consumer or professional cameras. These digital images and videos are now traded on the internet. Blockchain can validate ownership of these digital assets, enabling the fashion industry to sell digital garments. In Second Life from 2005, you could create digital assets and trade them for the digital currency Linden dollars. Today, the same thing is happening in the Metaverse using blockchain and cryptocurrencies like Bitcoin. These latest developments, alongside artificial intelligence that connects buyers with sellers, will add to the growth of the Metaverse. How will the Metaverse affect business? The future shape and commercial potential of the Metaverse go beyond numbers of users. It also depends on how often they visit, for how long, where and why. With pandemics and climate change restricting face-to-face contact and travel, applications that enable remote communication and collaboration have grown fast. Online meeting app Zoom saw daily meeting participants grow from 10 million to 300 million between 2019 and 2020, mostly from small business and personal use. Will the Metaverse become the new virtual meeting space Bill Gates predicted? It seems unlikely for now, with the convenience and ease of use of Zoom and other online meeting platforms. More likely, the commercial potential of the Metaverse will be unlocked by applications that benefit more from immersive experiences. It could also be useful in mental and physical health therapies that use virtual reality and for complex 3D data visualization. Facebook (Meta) has invested hugely in strategy based on VR headsets as the gateway to their Metaverse platform. Unlike the browsers found on every smartphone and laptop, few own or have access to a VR headset. At the moment, Metaverse suffers from the same problem that restricted Second Life – a limited marketplace, until the technology evolves to the point where VR headsets or glasses are affordable and ubiquitous. Unlike recent disruptions like cryptocurrency, the Metaverse relies on mass adoption to be profitable for business. Several factors in the market today make mass Metaverse adoption unlikely, like low VR headset ownership and lack of systems to access the Metaverse with commonly owned devices. While businesses should closely follow the Metaverse's development, it may be premature to invest heavily at this time. In any case, watch this space.
internet of things customers

When tech goes shopping: How smart-device customers are changing retail

  • min read
    • Science fiction author William Gibson coined the term 'cyberspace' in his 1984 novel Neuromancer to describe an imagined internet-based virtual world. His idea was like the internet of things (IoT) we have today, but he didn't foresee its kooky yet useful features – like replacement ordering coffee capsules or printer ink cartridges – which, banal as they are, have the retail sector aflutter imagining how to serve its new non-human consumers. The network of internet-connected 'smart' devices is growing fast and infiltrating many parts of life. Market intelligence firm IDC projects there'll be 55.7 billion internet-connected devices worldwide by 2025. This is just the beginning. Gibson pointed to the future of artificial intelligence needing human sensibility to be more 'intelligent' and so, useful. It's not long since smart fridges were considered expensive Proofs of Concept with little added value for the consumer. But that view changed as costs fell and technology adapted to show its usefulness. Should we expect more devices like printers and fridges with sensors to make inventories, monitor supplies and replenish them automatically? Futurist Matthew Griffin from 311 Institute thinks so. "We've already seen fridges that have cameras and AI machine vision. They know what's in the fridge and can reorder things through your favorite online shop. HP printers monitor ink levels and order replenishments," he said. But we also live in a time when some tech advances have moved away from regulatory and social boundaries detrimentally. We're playing catch-up in areas like privacy regulation and limiting the spread of misinformation on social media, and living with the consequences of unrestrained, fast-moving innovation. For Griffin, there are big security and privacy implications of letting IoT devices act like humans. "Every aspect of your life will be watched and monitored by systems that monitor your behavior around the house by listening to cues," he says. "In short, your privacy is non-existent — which is where regulators come in." Kaspersky's Senior Security Researcher Dan Demeter believes it's crucial IoT makers and sellers do their part by securing devices. "The kinds of steps they must take include regularly auditing source code and black box testing. Having a bug bounty program lets makers take advantage of cybersecurity vulnerability researchers out there looking for rewards. Regular 'red team' testing (also known as ethical hacking) is important nowadays because supply chain attacks are becoming so common." He goes on to say, "If you find a vulnerability, make it easy for customers to patch their devices. Don't have 'vendor backdoors' on your IoT devices, but let users run and manage them on closed networks. Make sure the device's operating system is secure and make default logins and passwords unique and hard to crack." Satisfying the smart device customer Smart devices are already customers. Amazon's digital assistant Alexa acts as an ecommerce assistant, as do car 'infotainment' systems and a growing number of smart appliances. Siri and Google Assistant are moving in the same direction. Samsung fridges can already order from third-party suppliers, but it won't end there. Griffin sees a future when a manufacturer like Samsung creates smart fridges that order replacement groceries from a Samsung-owned store. "These new 'customers' let companies create new business models and revenue streams," says Griffin. "If one million fridges needed milk, they could form buying consortiums using blockchain and hold an e-auction to get the best deal. Then they could take the money they save their owners and put it in a bank account to help owners save for a holiday, or even invest it." Retailers will think of smart devices and appliances as we do smartphones, where an Apple iPhone must buy apps from the Apple app store. Griffin continues, "It'll be the same with other smart devices — if you want to buy X, their device is connected to their store." Privacy concerns, unfamiliarity with and distrust of 'smart' services and lack of standards for consistency across applications and brands will temper IoT-market growth. But Dan Miller, Lead Analyst and Founder of Opus Research, is optimistic. "While they rightfully raise privacy concerns, they are key to providing secure and personalized digital ecommerce assistants. A lot of these issues can be overcome in short order." Miller goes on to say, "Expect voice assistance to be integrated into kitchen appliances as well as TV remotes and smart speakers where they're already used to order new entertainment content," says Miller. Miller predicts next we'll see digital assistants develop into voice agents aware of people's purchasing patterns, payment preferences and preferred sellers. "Voice brings the added advantage of being a biometric signature and key to personalization." Retailers look to IoT data for personalization There's a roll call of ways IoT will change retail and ecommerce. It promises many ways to improve transactions, systems and processes. For retail, stock availability and order fulfillment can become more transparent and responsive in real-time, giving confidence consumers can find and buy what they want when they want it. For wholesale and manufacturing, managing stock levels, ordering and production will be easier through real-time analytics. Connecting with retailers will enhance supply chains by reducing system holdups. Remote device monitoring will mean valuable intelligence for predictive maintenance based on time and usage and performance analytics from day-to-day usage. Personalized offers based on first-hand customer intelligence could build loyalty and brand connection. 'Frictionless' stores like Amazon Go already let consumers select goods in an IoT-connected store then pay with smart devices without scanning and check out. IoT ecommerce will go further as devices themselves monitor usage and buy replacement supplies. David Dubois, Associate Professor of Marketing at graduate business school INSEAD, specializes in understanding how to turn data-led insights from digital technologies like IoT, AI and blockchain into commercial intelligence. "IoT devices can make every product 'alive' by capturing a continuous flow of data reflecting its use and the state of the machine the device is in," he says He believes IoT devices can prevent maintenance issues like waiting for repairs to machines or reordering coffee capsules. But more importantly, he says their data is a strategic tool for companies to expand into new services, products and competitive space. "By monitoring running information, Nike gets information on things beyond its point of interest. It can, for instance, collect data on heart rate tied to stress and sleeping patterns and expand by rolling out new solutions in these spaces," Dubois says. Will algorithms eventually shop for humans? As more IoT devices make buying decisions, like the printer that monitors and reorders paper and ink, could these internet-connected devices eventually act like customers? Retail futurist Howard Saunders thinks we're entering a time when algorithms, artificial intelligence (AI) and IoT will collude to remove friction from our lives, like the chore of replenishment. "We're witnessing the crystallization of the difference between 'retail' and 'shopping,'" Saunders says. He continues, "Retail has grown to encompass everything online – hospitality, banking, museums – but people want to know if there's a future for 'shopping' in a world that faces the relentless march of AI and the algorithms. That's shopping in the sense of heading out for a day's browsing, meeting and trying on that happens in our town centers and malls. My answer is an emphatic YES!" Saunders' vision of the future high street will excite many. "As routine replenishment is taken away from us, real-world shopping will become more engaging. From corner shop deli tastings and bakery workshops to big brand playgrounds in urban centers, shopping is becoming less about getting stuff and more about experiencing things. It's already happening. Shops that just sold things are dying while young brands with something to say are taking their places. I say bring it on." Smart devices are increasingly behaving like consumers, from making recommendations based on past buying to replenishing supplies. Retail brands must plan to adapt to this new kind of customer while realizing people will still want experiences retail can provide. IoT manufacturers and suppliers can lead the way in consumer trust by upholding customer privacy and securing their devices well.
phygital business

How ‘phygital’ tech could save post-pandemic retail stores

  • min read
    • COVID-19 has had a monumental impact on retail worldwide. While everyone has found lockdowns and social distancing challenging, stores are working hard to adapt to shifting consumer expectations and a new reality. It's make-or-break for many bricks-and-mortar outlets. How will savvy stores stay safe from the crumbling façade of face-to-face shopping? One way is by using interactive shopping experiences that combine physical and digital – or 'phygital' shopping – to keep, win and wow customers. Storefronts shutting, ecommerce booming In the UK in 2020, according to research by professional services firm PwC (formerly PricewaterhouseCooper,) around 10,000 more chain stores closed than opened – that's around 27 closures every day. The US fared better within this downward trend, with Coresight research finding 5,437 more stores closed than opened in the same year. Meanwhile, the Office for National Statistics reported UK ecommerce grew by 46 percent in 2020 – its strongest annual growth since 2008. The global picture was similar, with eMarketer estimating worldwide ecommerce sales grew 28 percent in the same year. Adding interest to physical shopping Phygital retail isn't entirely new. Stores have been experimenting with these new technologies for a few years. The 2021 opening of 'frictionless' grocery store Amazon Fresh in London shows the potential of phygital technology to change physical shopping beyond recognition. Customers at Amazon Fresh scan a QR code when they enter, place items in a basket and leave when they've finished shopping. In-store cameras and sensors track what's placed in the basket, and the shopper is automatically charged. Forget lines and self-checkouts announcing "unexpected item in the bagging area." Neil Saunders, managing director and retail analyst at GlobalData Retail, thinks more consumers will want both ease and inspiration from their shopping experience, post-pandemic. "Technology can make the shopping process more convenient and enhance it with the likes of augmented reality or location-based push notifications with offers." Starting the phygital journey doesn't mean an overnight transition to fully digitized business. It may mean introducing relatively simple tools that enhance the consumer experience. Letting shoppers check when their order will be ready to pick up or alerting customers when their favorite item is on sale can go a long way to making shopping more convenient. New audio documentary Fast Forward by Kaspersky Tomorrow Unlocked explores more phygital experiences in retail, with analysis from expert technology futurists, in episode 2: Scan purchase for maximum score. Not just for the biggest players More ambitious retailers who have embraced technologies like augmented reality can expand their digital horizons by giving customers new ways to understand products. Sportswear brand Adidas launched three augmented reality experiences at their flagship store on Oxford Street in London, letting shoppers use their smartphone camera to explore new product features. While high-tech retailers like Samsung and Amazon undoubtedly pioneered digital in physical retail, small and medium-sized businesses and non-tech firms can benefit from this emerging trend – if they ask the right questions. Bart Veen, Founder and Creative Director of event company BART, has created technology-led events for brands like Tommy Hilfiger and the Mall of the Netherlands. He believes technology shouldn't be used for technology's sake. There must be a well-defined understanding of the impact the technology will have on the business. Improving the customer experience is more than a nice-to-have for high street stores – it may give a much-needed edge in a competitive market. According to Salesforce's 2020 State of the Connected Customer report, 80 percent of customers think the experience a company provides is as important as its products and services. But the same research found two in three customers felt impersonally treated in their interactions with stores. There's a fine line between using technology to refine customer experience and overusing digital tools that take away the personal touch shoppers want. On their phygital journey, stores should work with experts in tech who know how to avoid crossing the line. "Innovation is doing something that hasn't been done before, and it's all about collaborating. If you have the best experts together and you all have the same goal in mind, you can create something extraordinary," says Veen. Post-pandemic retail Like many industries, the banking sector doubled down on digitization as COVID-19 limited access to face-to-face banking. But as online banking keeps growing, branches are still vital to many, especially older people and small business owners. Yet, most provide few services beyond the traditional offering of paying in cash and checks, activating cards and buying foreign currency. The UK's Barclays bank saw an opportunity and converted 25 closed branches into Eagle Labs: Spaces for co-working, mentoring and networking, as well as getting banking advice. They also used digital technologies to enhance start-ups' experience and make services faster and more convenient, while bank staff offered valuable personal customer interaction and support. As retail bounces back after COVID-19, there's a need to reassess what physical stores do. Barclays is just one of many companies looking to move beyond its traditional services. Fashion, grocery and electronics are all accelerating their digital transformation to meet customer expectations better. Mark Thomson, Director of Retail and Hospitality Solutions for Europe, the Middle East and Africa at retail technology provider Zebra Technologies, believes the most effective phygital solutions enhance the physical experience with digital benefits. An effective shopping experience blends in-store and online. "Customers measure an in-store experience against an online one, so it needs the right technology to let retail staff host an experience rather than just attend," says Thomson. "Physical stores have a future, but as part of a more digital world." As the lines between physical and digital retail blur, retailers in all industries can capitalize on recent tech innovations that make in-store shopping less stressful and more convenient. From cashier-less shopping to augmented reality to location-based push notifications, future retail will pair the best of technology with personalized experiences.
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