Market Technology Transformation

Disruption in the market is now being driven to a very large extent by technology and this technology transformation is being led by the demands on the supply chain from consumers on the market. In all aspects of the market we are seeing a transformation that is being driven by the changing lifestyles of consumers. These changing lifestyles are, to a very large extent, enabled by technology that is available to consumers in every aspect of their daily activities. Consumers have embraced technology in every aspect of their daily activities and the impact on their lifestyle has been dramatic in the opportunities to meet their changing demands. This presents a challenge to the extended supply chain partners to support the market transformation that is driven by changing technology.

The most obvious example of technology that has dramatically impacted consumer lifestyles is the smartphone. Consumers have embraced the smartphone in every aspect of their daily activities to enable them to meet their changing lifestyle. These demands have transformed the methods in which they communicate, shop, pay bills and share experiences. The smartphone, in combination with improvements in wireless network technologies, are key factors in the market transformation and this transformation is only increasing in velocity. I know in my own activities that this technology has transformed my ability to meet the daily demands of family and career to allow me to blur the line between all activities; I can shop any time and then plan for delivery to meet the immediate demands, I am available for response any time the need arises whether personal or work related and the technology allows me to react based on the demand.

Technology has become pervasive across all activities and this has transformed the consumer market into an expectation of 24/7 shopping and delivery to meet the demands at the time. These demands have required the transformation of the extended supply chain to quickly and efficiently address the demands first and foremost. Most importantly this has required the transformation of the extended supply chain to develop the methods and processes to quickly and efficiently sense and respond to the changes. The transformation requires not only efficient response to new demands but experimentation with capabilities to create new consumer demands. The velocity of transformation has reached a level where the ability to react to demands is not enough to maintain share in the market participants must anticipate demand before consumers realize in order to maintain share.

Experimentation can be frustrating because of the potential for mistakes and failures. However, the market is changing at such a velocity that there is no choice but to experiment with creating future demands. This is especially difficult in the retail market because the culture and accepted practice is at odds with leading edge experimentation. We are seeing now though especially with Amazon and niche eCommerce retailers the rise of experimentation as a key capability. This transformation has dramatically impacted large legacy retailers causing failures and a struggle to keep up with the changes. The market is now seeing early signs of leading retailers such as Target or Walmart finally transforming their practices to leverage the multi-channel marketplace to transform their business.

Change has been supercharged into transformation and consumers are driving the retail market into continuous transformation that requires new methods and processes to anticipate demand rather than react to the demands. These processes must support faster and more flexible adjustments that are driving continuous transformation of the market. We have reached a point with technology where the speed of change requires anticipating and adjustments rather than sense and respond. This will further shake out the market and drive transformation in the supply chain.