Technologies are transforming retail at a rapid clip. There is scarcely time to digest and fully deploy one innovative technology before another one surfaces. The 3 horizons framework is a method I use to conceptualize disruptive technologies and prepare for the future. By taking an organized, methodical approach to thinking about emerging technologies, it’s possible to reduce confusion and avoid overload when it comes to considering future technology deployments in your retail operation. Consider the 3 horizons and how this framework helps you prepare for what’s next.
Horizon 1 – Horizon 1 evaluates technologies in the “now.” These are technologies that have been tested and validated multiple times and are ready for imminent deployment. Today, Horizon 1 technologies include AI, frictionless checkout and others that are helping retailers overcome supply chain challenges and labor shortages in the present.
Horizon 2 – Horizon 2 technologies are those whose adoption is 1 – 2 years out. Frontrunners are already beginning to experiment with deployment and visualize the use cases for these technologies, but widespread implementation is still 12 to 24 months out. These technologies are top of mind and influence strategic plans for the organization. One example is extended reality in retail. Some retailers are already experimenting with augmented reality in dressing rooms. However, the next iteration will likely involve Oculus or Google Glasses. This is the next horizon in virtual experiences for both retail employees and shoppers, with applications for everything from employee training to product trial.
Horizon 3 – Horizon 3 technologies are 3 – 5 years out. These are massively disruptive technologies that will change the retail environment as it exists today. Consider, for example, the metaverse. Retailers purchasing storefronts in the metaverse would introduce truly hybrid shopping. Typically, there is some hesitation on horizon 3 technology adoption simply due to the inability to map out trends, consumer behaviors and ROI. However, awareness of horizon 3 is critical to the future success of the business.
With a keen awareness of horizon 1 technologies and general familiarity with horizon 3 technologies, retailers can stay current on the tools and trends that will continue to shape their business at a breakneck pace. If you’d like to learn more about the 3 horizons, I invite you to listen to the TelaidTechConnect podcast, where I recently explored this and other trends in retail technology in greater depth.
