Adapting Existing Tech Boosts Traditional Retail Performance
Category: Innovation & Design · Effect: Moderate effect · Year: 2023
Traditional retailers can achieve significant performance gains by creatively adapting readily available technologies to their specific operational needs and resource constraints.
Design Takeaway
Prioritize the adaptation and integration of existing, familiar technologies over the wholesale adoption of new, complex systems when designing solutions for resource-constrained traditional retailers.
Why It Matters
This research highlights that innovation in traditional retail doesn't always require adopting the latest, most expensive solutions. Instead, a strategic approach to modifying and integrating existing technologies can lead to improved efficiency, revenue, and data management, even with limited resources.
Key Finding
Traditional retailers can improve their business by creatively combining and modifying existing technologies, rather than solely relying on new, complex systems. This approach, supported by awareness and partnerships, leads to better inventory management, increased sales, and saved time.
Key Findings
- Traditional retailers often adapt existing technologies by combining them with local conditions or improving their functionality.
- Examples of adaptation include using PoS systems with printers and scanners, combining mobile apps with PoS for mPoS functionality, and using adapted EDC machines for digital transactions.
- Successful technology adaptation is linked to task-technology fit, which is supported by retailer awareness, strong partnerships with tech providers, and perceived technical competence.
- Expected performance improvements include clearer inventory data, increased revenue, and time savings.
Research Evidence
Aim: How can traditional retailers in emerging markets effectively adapt existing technologies to improve business performance?
Method: Qualitative case study
Procedure: The study involved a qualitative investigation of traditional retailers in a developing country to understand their approaches to technology adoption and adaptation.
Context: Traditional retail sector in emerging markets
Design Principle
Leverage and adapt existing technological affordances to meet specific user needs and contextual constraints.
How to Apply
When designing for traditional retailers, explore how existing tools (like basic PoS, mobile phones, or common payment devices) can be combined or slightly modified to achieve desired functionalities, rather than proposing entirely new systems.
Limitations
Findings are specific to emerging markets and may not directly translate to highly developed markets with different technological infrastructures and consumer expectations.
Student Guide (IB Design Technology)
Simple Explanation: Small shops can make their business better by cleverly using and changing the technology they already have, like combining a simple cash register system with a barcode scanner, instead of buying expensive new machines.
Why This Matters: This research shows that innovative design solutions don't always mean creating something entirely new. Adapting and combining existing elements can be a powerful and practical approach, especially when resources are limited.
Critical Thinking: To what extent does the 'familiarity' of technology in an emerging market differ from that in a developed market, and how might this impact the transferability of these adaptation strategies?
IA-Ready Paragraph: Research by Isharyani et al. (2023) indicates that traditional retailers in emerging markets achieve performance improvements by adapting existing technologies, such as combining PoS systems with printers and scanners. This suggests that design solutions should prioritize modularity and the creative integration of familiar tools to meet specific operational needs and resource constraints.
Project Tips
- Consider how existing, low-cost technologies can be combined or modified for a specific user group.
- Focus on the 'fit' between the technology and the user's tasks and environment.
How to Use in IA
- Reference this study when justifying the choice to adapt existing technologies or when exploring how to make technology accessible and effective for users with limited resources or technical expertise.
Examiner Tips
- Demonstrate an understanding of how to leverage existing technological affordances and adapt them to specific user contexts, rather than solely focusing on novel invention.
Independent Variable: ["Adaptation of existing technologies","Combinations of technologies","Improvements to existing technologies"]
Dependent Variable: ["Business performance (inventory clarity, revenue, time savings)","Utilization of adapted technology"]
Controlled Variables: ["Retailer awareness","Partnerships with technology providers","Perceived technical competence","Limited resources","Unique additional services"]
Strengths
- Applies a relevant theoretical framework (TPC) to a novel context (traditional retailers in emerging markets).
- Provides concrete examples of technology adaptation.
Critical Questions
- What are the potential downsides or limitations of relying on adapted technologies versus cutting-edge solutions?
- How can designers facilitate the 'awareness' and 'perceived technical competence' among traditional retailers?
Extended Essay Application
- Investigate how a specific existing technology (e.g., a common mobile app) could be adapted to serve a niche market or solve a problem for a user group with limited resources, drawing parallels to the adaptation strategies discussed.
Source
Retail technology adaptation in traditional retailers: A technology-to-performance chain perspective · Journal of Open Innovation Technology Market and Complexity · 2023 · 10.1016/j.joitmc.2023.100204