Rethinking Digitalization in Retail: Start with a Strong Foundation

Digital Tools Are Only as Good as the Infrastructure They Rely On

No matter which area of your business you choose to digitize or what system you implement, one principle remains constant: it has to work, seamlessly and reliably.

Of course, no rollout is ever perfect. Initial bugs and challenges are to be expected. But as long as these issues are addressed promptly and visibly, teams will remain patient and engaged. The real problems start when core functionalities break down—and stay broken.

Imagine implementing a new HR platform, only for employees to constantly experience login failures or sluggish performance. Or, more commonly, using cloud-based systems accessed remotely, only to find that connectivity issues render even the best digital tools practically useless. When employees experience delays, outages, or poor system responsiveness, frustration grows—and any innovation built on such shaky foundations is bound to fail.

Case in Point: A Costly Lesson in a Romanian Warehouse

In one of my old projects, we deployed a cutting-edge scanning system in a Romanian distribution center. The aim was to replace manual inventory tracking—done with paper and Excel spreadsheets—with a modern, real-time solution using handheld scanners. The business case was compelling, and the client invested significantly in the rollout.

The system was designed to guide warehouse staff directly to item locations, display pallet statuses, and track serial numbers. We trained key employees and scheduled a live inventory run for a weekend. The demo was flawless, and everything looked ready for a smooth transition.

But ten minutes into the real inventory process, things started falling apart. As workers moved further into the warehouse, the WiFi signal deteriorated—and eventually disappeared entirely. The system became unusable. What we hadn’t considered was that the warehouse’s network coverage only extended to the front area.

The result? A manual inventory, emergency staffing, and a major setback in trust. Although we eventually resolved the technical issue, the damage was done. The client incurred additional infrastructure costs, and employee confidence in the new system took a major hit.

The lesson was clear: if the underlying infrastructure isn’t rock-solid, even the most sophisticated digital tools will fail. And once employees have a negative experience, regaining their trust is extremely difficult.

Don’t Rush to Buy New Systems—Optimize What You Have First

Another common pitfall we see is the tendency to pursue complex, expensive solutions when simpler, more cost-effective improvements might deliver more value.

Often, companies already have the tools they need—but they’re underutilized. For example, rather than investing in a new data integration platform, a few well-written Excel macros could automate manual data entry tasks. It may not look as polished on a mobile device or have the same “wow” factor, but it works—and works well.

Employees often stick with outdated processes simply because “that’s how it’s always been done.” They may not realize that what wasn’t possible five years ago is now just a few clicks away. Before investing in any new technology, take a step back and review how tasks are currently being performed. Bring in someone with a fresh perspective to observe workflows and ask questions. You might find that processes that take two days today could be shortened to just a few hours—with minimal cost.

New Digital Threats in Unexpected Places

It’s not just operational readiness you need to think about—digital security is evolving fast, and with it, new risks are emerging in places we didn’t anticipate.

Take company vehicles, for instance. It’s great to have GPS tracking, remote access, and connected features. But what happens if those systems are compromised?

There have already been cases where vulnerabilities in apps like Kia Connect allowed attackers to start vehicles remotely within seconds. Volkswagen also experienced a data breach exposing detailed usage histories of electronic vehicle owners—including precise parking locations.

Now imagine a competitor intercepting your logistics data, or even remotely interfering with your fleet. While this may sound extreme, it illustrates a broader point: information security now extends far beyond traditional IT systems. It’s time to rethink penetration testing strategies and include assets we previously considered out of scope—like connected vehicles.

In Summary

If you’re planning to start your digital transformation journey—or expand it—keep the following in mind:

• Start by strengthening your IT foundations. No tool or system can succeed on an unstable infrastructure.
• Challenge assumptions about existing processes. There may be simple, inexpensive improvements that deliver huge value.
• Stay alert to emerging risks. Digital transformation brings not only opportunity but also new vulnerabilities—some of which may still be flying under the radar.

By approaching digitalization strategically and pragmatically, you’ll not only avoid costly missteps but also build systems your people trust—and use.