Index of Paper Presentations for the Parallel Sessions - Academy of ...

Standalone retailers also preferred rental model, having a low risk taking ability for new technologysolution. However, they are also willing to invest in new ventures to beat competition by embracingtechnological innovation to improve customer experience. Some showed an inclination to the revenuesharing model, where both parties invest and share the profits. They rely on the vendor‘s knowledge ofbest practices from similar implementations in a variety of projects. Vendor‘s local presence wasimportant to these retailers and considered local ‗word of mouth‘ as the best reference. They preferreddata integration for combining their point of sale with accounting systems to evaluate their marketingcampaigns.Challenges for Proximity Marketing in Emerging CountriesBluetooth and proximity marketing face challenges as the technology evolves in emerging countries.Infrastructure: To attain scalability and reliability, retailers will have to incur a high capital expenditurefor initial IT infrastructure investment, or tie-up with a service provider. An on demand cloud deploymentmodel has a very low acceptance in the emerging markets as the corporate data residing in external datacenters is perceived to be susceptible to data misuse and public access.Customization Agility: The agility with which solution providers can offer a localized and customizedoffering is a challenge. For this purpose, solution providers prefer to do business through channel partners.A local partner can learn the nuances within the market and mitigate challenges faced from localregulatory authorities and bridge the cultural divide. This kind of flexibility in customization will be thekey for international retailers.Managed Services Offering: The entire operational responsibility for proximity marketing solution shouldbe managed by the service provider. Several retailers have expressed their preference to the BOM (Build-Operate-Manage) model as their risk associated with this was minimal. This is why retailers prefer that thesolution be rented initially and managed by the Vendor.