BizBahrain Magazine Nov-Dec 2017

Expert Opinion | Information Technology
The Next
Generation of
E-Commerce
by Dr. Jassim Haji
The rise of ecommerce a decade
ago had a severe business impact
on many high-street stores;
everything has changed especially
consumer buying behavior. Hence,
many big stores are set to transform
shopping by establishing a seamless
link between the online and offline
worlds.
In the near future, almost every
product in such stores will be
“smart” and in some cases virtual.
Radio frequency ID (RFID) tags - tiny
microchips that can be attached to
items and send out unique signals -
have been mooted for use on individual
items in retail for over a decade, but in
combination with mobile technologies,
they can not only revolutionize the
supply chain, but also transform the
payment experience. What’s more,
near field communication (NFC) chips
will enable smartphones to become
payment devices, and location-based
services will give the customer what
the want - and what they might not
realize they want - in-store or at home.
By combining all these technologies
and uniting home ad store retail
channels, exciting new ways of tailoring
shopping directly to the customer will
become possible. Retailers that fail
to keep up are likely to risk the same
levels of damage as those that failed to
adapt to the ecommerce revolution.
With RFID tags attached to every
item in a store and sensors on every
shelf, it’s possible to detect when any
product has been removed. If the item is
paid for, stock-keeping can be informed
and more put out and ordered - or, if
discarded in store, it can be returned to
its correct location. If the item is taken
through an exit without being paid for,
alarms can be triggered. Since the RFID
tag is unique, the stocking system will
66 November-December 2017