Expert Talk: Artificial intelligence in the retail backend

AI in the retail backend: does it always make sense?

The e-commerce market is characterized by constant change, new technologies and upheaval. For a variety of reasons, the retail backend is therefore becoming increasingly important, because only those who establish a future-proof IT infrastructure in the company will remain competitive. So what makes a future-proof and robust retail backend and which systems belong to it?

The 5th Expert Talk with Dörte Kaschdailis, Managing Director of opexxia GmbH, a consulting firm for retailers in the areas of digital transformation and retail backend, dealt with precisely these questions. Her experience and knowledge, especially on topics such as the introduction of ERP systems and robust retail backend issues and processes, provides an in-depth look at an e-commerce topic that many find exciting but also extremely complex. Dörte's appeal: The vast majority of companies have legacy software in operation, even digitalos that achieved groundbreaking results in e-commerce 20 years ago. Old technologies everywhere need to be replaced by new technologies that are committed to the MACH principle.

What makes a good transformation?

Various considerations must be taken into account when evaluating and replacing old systems and technologies. Above all, companies need to be aware of what makes them special and what their customers expect or want from the company. Depending on where you want to differentiate yourself from the market, it can make sense to break away from standard software and introduce your own workflows. It is these levers that enable companies to make the difference against strong competition.

However, it is still the case that companies absolutely need ERP systems, but should increasingly turn to classification standards when procuring products and data. Not only to obtain bundled and structured product data, but also to create a data basis that is suitable for the further refinement and processing of product data. This is the only way for companies to stand out with very good product information or to make their pricing competitive.

However, the retail backend not only includes ERP systems, but also PIM and, depending on the IT infrastructure, DAM and CRM systems. It should not be a question of classifying systems according to importance, but rather of having a clear idea of which data processes take place in which systems. Only those who have a clear overview and have thought through their data processes can determine how artificial intelligence can be used in a supportive and profitable way within the existing system landscape.

Degree of automation, flexibility and scalability

Technologies have never been as mature as they are today. This means that system landscapes must be very well networked with each other, but also that all employees in the respective company must have an understanding of where sovereignty lies, which data processes run in the systems and how they interact. The main aim of these architectures must be to have a high degree of automation but still be flexible enough to be able to react quickly to changing business aspects. This could be, for example, an uncomplicated connection to a new marketplace. The third requirement is scalability: IT infrastructures must be able to handle higher order volumes quickly without major additional expense or enable the targeted expansion of online product ranges.

Artificial intelligence can provide real added value and support in all of these areas. Watch the recording to find out what stumbling blocks there are when introducing intelligent software and what modern companies need to consider. We would like to thank Dörte Kaschdailis for the exciting talk and are already looking forward to the next talk with Iwan Uswak, Senior Expert Data Orchestration at Fressnapf Holding SE, where we will discuss in depth how to overcome data silos and the importance of different types of data. Will you be there too?

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