The digital transformation of the retail industry is a broad topic. Retailers are increasingly turning to digital solutions, prioritising convenience and resource savings. In an interview with Jakub Maslowski, Chief Technology Officer at Żabka Future, we discuss digital tranformation in the retail industry using the example of the Żabka shop chain.
Brandsit: What is digital transformation for you? Why did you decide to take this step?
Jakub Maslowski, Żabka Future: We have approached the digital transformation holistically. Technology, together with business and ESG, drives the development of our organisation. We already created a pillar in our business strategy a few years ago, which was digital transformation.
Why did we decide to transform? We look at it not as a process that has a beginning and an end, but as a continuity of our work. Digital transformation is important to us because it enables us to adapt to the ever-changing digital landscape, increase flexibility and efficiency and better meet our customers’ needs. The goal of digital transformation is not just to implement new technologies, but to fundamentally change the way organisations operate, innovate and deliver value to their customers.
Beyond the first wave of change, its aim is to achieve a more integrated and holistic approach to digital technologies and their impact on the organisation. This means breaking down silos between departments, creating a culture of innovation and collaboration, and using data and analytics to make more informed business decisions.
With our current focus on leveraging emerging technologies such as artificial intelligence, blockchain and IoT, we want to use data-driven insights to drive innovation, optimise operations and create new business models – for example, with the Advanced Customer Insight Tool (ACIT) data-sharing platform, we continue to work with business partners who value quality information about consumer choices and guidance on opportunities to optimise in-store assortments. With continuously updated data on sales, promotions and consumer behaviour, the tool ensures a higher quality of collaboration.
“The goal of digital transformation is not just to implement new technologies, but to fundamentally change the way organisations operate, innovate and deliver value to their customers.”
Jakub Masłowski, Żabka Future
Above all, our aim is to create an agile, customer-focused organisation that can adapt to changing market conditions and deliver innovative solutions to meet customer needs in a rapidly changing digital world.
Brandsit: What do you use artificial intelligence for at Żabka? How do you perceive it?
Jakub Masłowski, ¯abka Future: AI/ML technologies at ¯abka are present in many areas of the ¯abka Group’s operations: e.g. in the area of the customer, where they help to select a tailored, optimal offer, through the area of the franchisee, whom they support in the ordering process and take care of optimal stocking. The logistics centres or even the daily work of many teams at the head office are supported by algorithms that make many processes happen faster, with less room for error. This “frees up time” for tasks that require human creativity or experience. AI at Żabka today is not seen as Sci-Fi. A large part of the team is aware of the type of support they can expect. We are actively working to identify and digitally transform more areas. Algorithms have become part of our everyday life.
Brandsit: How does Żabka contribute to sustainability through the use of technology in the retail industry?
Jakub Masłowski, ¯abka Future: A good example are the ¯abka Eko Smart shops in Poznań and Łódź, which are a kind of laboratory of ecological innovations enriched with smart solutions optimising the work of franchisees. For example, a multi-device management system was developed especially for the shop to help protect the environment and save energy (including green energy). It allows remote monitoring and control of functions and parameters, as well as troubleshooting (e.g. light on/off, appliance on/off, control panel locking, appliance temperature control). It also enables immediate fault detection.
Brandsit: There’s been a lot of talk about Żabka Nano autonomous shops, but I’m curious to know what other trends you’re seeing in terms of the use of technology?
Jakub Masłowski, Żabka Future: Autonomous shops are indeed a source of inspiration to discover more aspects in which technology allows us to greatly simplify the lives of our customers. What we are observing and working on today is the use of Virtual and Augmented reality technologies – I have no doubt that in many aspects the technologies used, for example, to train pilots will find their place in retail, in the areas of training or auditing. Technologies and monitoring or security systems relying on algorithms that recognise behaviour based on camera images provide greater security, but also provide the data necessary to optimise work both in the shop and in the logistics centre. In today’s environment, what also counts is efficiency and speed of response to needs or opportunities coming from either the company or the market. This is why low code platforms are so important today. Low code technology is an important part of digital transformation because it enables us to create applications faster with less time and human involvement thus accelerating the pace of innovation and reducing time to market. It is thanks to the significant lowering of the threshold for entry into the world of solution development that we are seeing a big improvement in efficiency, especially for non-IT teams. People who previously often had to specify requirements and then wait for them to be implemented are taking the helm and are able to deliver value in their area of work overnight.
I am convinced that further advances in the platforms themselves, but also continued awareness in this area, can be a breakthrough for the business-IT relationship and significantly increase efficiency, which is what we are all striving for.
“Low-code technology is an important part of digital transformation as it enables us to develop applications faster with less time and human involvement thus accelerating the pace of innovation and reducing time to market.”
Jakub Masłowski, Żabka Future
Brandsit: How are you responding to trends in robotisation and self-service?
Jakub Maslowski, Żabka Future: Robotisation, automation or self-service – it can be summed up briefly: ‘low code’. At Żabka, the question of robotisation is not “when?”, but “to what extent?”. I have already talked about digital robotisation platforms, the digital-physical dimension of robots still needs to be mentioned. Everyone has had the opportunity to see our robot Robbie preparing hot dogs in an autonomous shop in Warsaw, but this form of using machines also has a place in the areas of logistics and warehousing – here I can cite the example of the new logistics centre in Małopol near Radzymin near Warsaw, which we are preparing to open. The centre is planned to feature an automated high-bay warehouse nearly 40 metres high. It is equipped with innovative automatic solutions, which will not only speed up the logistical handling of shops and improve the quality of service for franchisees, but also minimise the environmental impact.
Brandsit: What are the biggest challenges that the retail industry will face in the coming years, and what roles can technology play in solving them?
Jakub Maslowski, Żabka Future: The retail industry is constantly evolving and will face several significant challenges over the next few years. For example, in the area of the customer, retailers will need to provide a personalised, seamless shopping experience and delivery. Technology can help with this, specifically the implementation of artificial intelligence (AI) and machine learning (ML) algorithms to analyse customer data and provide personalised recommendations.
For retailers, supply chain management, inventory management and supply chain optimisation will also be a challenge. Technologies such as radio frequency identification (RFID), blockchain and automation can help streamline supply chain operations and improve inventory management.
As the use of technology in retail increases, cyber security threats will also become more prevalent. Retailers will need to invest in advanced cyber security measures such as biometric authentication, encryption and firewalls to protect customer data and prevent cyber attacks.
Another challenge is the need for retailers to provide a consistent shopping experience across all channels, including online, mobile and in-store. Technologies such as augmented reality (AR), virtual reality (VR) and voice assistants can help bridge the gap between online and offline channels, thereby creating a seamless omnichannel experience.
“Retailers will need to invest in advanced cyber security measures such as biometric authentication, encryption and firewalls to protect customer data and prevent cyber attacks.”
Jakub Masłowski, Żabka Future
Brandsit: What technologies are used in your shops and how do they affect the shopping process? Can you say more about the technologies that support the daily work of the franchisees?
Jakub Masłowski, Żabka Future: Żabka provides franchisees with a number of uniquely designed, state-of-the-art tools that support shop management and facilitate daily operations. These smart solutions include the Cyberstore platform, the OptiPlan tool, the e-learning platform and many others.
The Cyberstore platform was designed with extensive input from all end users and consists of applications in 6 main categories: shop management, warehouse (OptiPlan), finance and billing, reports, information register and personnel. Thanks to the applications, users can, among other things, manage fixed assets and courier shipments, place orders, verify franchisee billing, analyse KPIs, check messages and recommendations from Żabka’s head office, access marketing materials and manage communication with staff.
More than 15 million data records are used by algorithms that make analyses and predictions used by trading partners carrying out in-store quality checks on standards, resources and performance.
“By going paperless, we save an estimated 1,550 trees a year.”
Jakub Masłowski, Żabka Future
As part of the solutions ecosystem, Żabka has also implemented an electronic document workflow. By not using paper documents, we are estimated to save 1550 trees per year.
Brandsit: And the employees? Has the digital transformation extended to your offices, your headquarters and your logistics centres?
Jakub Maslowski, Żabka Future: Digital transformation has fundamentally changed the way we work, both in the office and when carrying out our daily duties. It is not just the implementation of new technologies – it is a comprehensive change in the way our organisation and employees approach work. Innovation is a key element in the development of our network. We have optimised in-house processes, saving tens of thousands of working hours every year. We have an app that automates some tasks, freeing up the time of our employees, colleagues and franchisees. This allows them to devote the minutes or hours saved to other tasks. We focus on creating a culture of innovation and collaboration between departments and using data and analytics to make more informed business decisions – all in the name of increasing flexibility and being more responsive to customer needs.
