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Application Modernization is Transforming The Retail Sector. Here’s How?

The pandemic has altered consumers’ buying habits. Customers now strongly value multichannel customer experiences in terms of what they anticipate from merchants.

The applications that provide the basis for such capabilities must be current in order to stay relevant to consumers and offer effective and interesting paths to purchase.

Modernized applications are necessary for things like employee hand-held checkout, dynamic digital signage, curbside check-in, real-time inventory visibility for customers, appealing loyalty programmes, and personalized discovery feeds.

Unfortunately, a lot of retailers still rely on monolithic, legacy, tightly connected (read: unnecessarily complicated) application ecosystems and services, which make it difficult to build fast, especially at scale, shopping operations that cater to changing consumer needs.

Technology teams redesign or rewrite foundational platforms and systems in accordance with more cutting-edge development methodologies and tools. This process is known as “application modernization.” Modernizing your applications makes it possible to develop with much less risk.

When it comes to app modernization, the retail industry has been shaken, flipped on its head, and compelled to make a significant rethink.

Additionally, this was taking place before the pandemic. In fact, if the retail world was changing swiftly before 2020, it is now changing at warp speed, thanks to the retail industry being,


The divide between forward-thinking, digitally-based shops eager to challenge the status quo and those who are not has grown as a result of recent events, among other things.

The demise of the major UK retailer Debenhams serves as one illustration. Since the entire globe was essentially overnight compelled to adopt an online-only approach, there have been some notable winners.

Naturally, Amazon, but also other businesses who have been able to meet consumer demand, both out of necessity and leisure, or that have been able to change course and accommodate market considerations Convenience has been the motivating factor behind this in a world where on-demand delivery has been necessary.

Retail has been given a stern warning: adapt or perish. If they want to succeed, they must develop further and innovate to stay ahead of the competition.

To do this, it is necessary to evaluate the business’ models, costs, structures, and processes to decide which ones are working and which ones require updating.

This is never more severe than with technology, with everything from data centers to devices being analyzed through the lens of how the world shops now and what this means for a future economy.

Of course, the quickest and simplest way to do this is to stop all activity. Put an end to what you’re doing, take stock, and regain your motivation. But if anything, the retail triumphs of the pandemic have shown us how resilient the sector is.


Retail must be an opportunistic market, and as a result, chances are being created that are simply too excellent to pass up.

Although it’s frequently said that “the customer is king,” we’ve advanced well beyond this, and the client is now a Demigod.

The client journey is being prioritized in this case. Additionally, the value of employees is rising even further in importance.

Employers can increase productivity, work satisfaction, and security with the right technologies. Businesses are relying on tools like machine learning (ML) and artificial intelligence (AI) to help their workers and enhance consumer experiences in order to increase revenue more quickly.

This procedure is revolving like a fast-moving wheel. Not least of all because it affects and consequently influences every C-level employee within a firm.

The CIO, CEO, CTO, and CMO all recognise that while technology enhances the customer experience and boosts revenue, software is still required to manage a variety of operations at scale and with a variety of workloads.

As a result, we’ve seen a lot of companies streamline their operational procedures and go to the public cloud. The goal is to reduce friction for customers, and doing so calls for the flexibility and agility that the cloud provides.

Prone to change

Because of how quickly and at what a high degree the retail scene is changing, agility is essential. Businesses need to be proactive at all times to be able to optimize. This calls for the ability to properly translate the technology’s potential benefits for their unique operations, supply networks, workflows, and customers.

An excellent example of this is the grocery store company Sainsbury’s, which was able to quickly create an app for same-day delivery while its customers were at home, generally in four hours.

This seems straightforward on the surface, but takes into account the stock, supply chain, communications, client preferences, and geographic factors involved in each transaction.

Then take into account the fact that some grocery customers had to wait weeks for a delivery window at the height of the pandemic.

Volkswagen is an additional excellent example.

Customers may now make purchases in-store and then have their items transported to a parked vehicle. The boot is unlocked with a one-time passcode, the items are placed inside, and the boot is then closed, making them ready for pickup at the customer’s convenience.

App Modernization in Retail – Complexity and Cost Conundrum

It may take years to acquire these new skills or to change the organizational mindset necessary for the changes in retail.

As a result, we see merchants either stealing app or innovation ideas from smaller technology companies or forcing their most creative staff members to work on a project together.

We are witnessing contemporary stores transform into technology corporations, which then become software companies.

This feedback cycle improves the products, but in order for retailers to keep up with Amazon and other competitors, it must be done quickly and at a high cost.

This implies that speedy and effective software development is a competitive advantage. Large monolithic legacy applications provide a challenge since they are unstable, difficult to maintain, and impossible to scale beyond a certain point.

Finding individuals with the knowledge and enthusiasm to maintain these applications is even more challenging. Therefore, a crucial step in retailers’ transition should be upgrading their current portfolio of applications.

Even if it’s difficult, modernizing existing programmes should be part of the endeavor since creating new ones is generally rather simple.

The expense of updating these programmes therefore becomes a concern (money is not infinite, remember). It must be completed with an eye toward ROI.

When it comes to stock forecasting and fulfilling orders with prompt delivery – all against a backdrop of low prices and top online rankings – retailers need to be cost-effective clairvoyants. These could be the main areas of focus for any business looking to modernize as addressing them can provide a quick return on investment (ROI).

For instance, about 2% of retail revenue loss is attributable to shrinkage and significantly more attributable to inventory distortion (having too many or too few of an item).

App Modernization in Retail And How To Win At It?

Being able to innovate every day is necessary to succeed in retail. Something like this needs to be ingrained in the culture.

The potential impact of this discovery on the IT industry is enormous. To allow for adaptation and prevent vendor lock-in, it will establish new enterprise architectures and create systems that are open source or employ open source software. Modernization in retail is as much a state of mind as it is a vision, but success will come if retailers and vendors collaborate, use the correct tools, and concentrate on the areas that will have the most impact on costs and customers.

For a retail business to be future-proof, it is essential to understand when an application modernization strategy is required.

Here are several signs that using our app modernization expertise will help you deliver the best possible customer service:

1. Regardless of the size of the digital project, it took six to twelve months or more to go from idea to launch (e.g., employee hand-held checkout, dynamic digital signage, curbside check-in, etc.)

The likelihood of competitors overtaking retailers as first-movers increases the longer a store takes to implement an innovation. Additionally, every day spent in development rather than operating results in lost revenue.

In the current retail environment that is evolving so quickly, time to market is essential. Deploying a solution to deal with antiquated software development methods or monolithic architectures will inevitably take years. 

2. You are concerned about the implications that any system testing or modifications will have on your business.
Innovation must include testing the capabilities or apps that enable digital transformation. Consider the possibility that each time your company tries to test a modification, it can conflict with other tools, programmes, or applications.

The decoupled design can then be put into use. There is a little probability that changing or enhancing one application will have an impact on any other applications thanks to a DevOps strategy, test automation, and decoupled design. You start to worry about a domino-like scenario every time you want to install or test a change to your internal software or shopping flow, which shows that your app needs to be modernized.

3. Changing the ecosystem as a whole is dangerous and time-consuming. Your batch changes together for testing since testing one change at a time is inefficient.

Imagine that while you are making changes to one application, your team suggests making as many modifications as possible to other applications at the same time.

If so, it’s most likely due to the interrelated nature of many, if not all, of your applications. Decoupled architecture has considerable benefits for yet another reason.

Because other projects are still in development, delaying the distribution of new functionality or a digital experience prevents controlled testing of each feature. Because they improve the shopping experience in real-time, the most relevant shops continue to remain at the top of consumers’ consideration lists.

This is made possible by modernized ecosystems that allow for extremely quick turnarounds and constant, granular modifications. Because of the deadlines for other projects, your firm must release customer-centric modifications immediately.

4. A strict framework prevents your customer experience (CX) from reflecting the nuances of your organization.

Retailers who know their customers well are aware that when consumer and industry trends change, substantial, ever-changing features within the buying experience must be introduced. A company that fully comprehends the client journey makes use of this understanding to continuously improve the path to purchase.

An example of a contemporary CX feature is a retailer’s app’s ability to instantly turn a BOPIS order to a curbside pickup order as more consumers use omnichannel services. Traditional firms sometimes rely on obsolete versions of legacy programmes, which results in rigid systems.

Rigid systems signify an inability or great effort to implement these more minor but crucial adjustments. Rigid systems signify an inability or great effort to implement these more minor but crucial adjustments. If your IT staff is too apprehensive to implement these minor but crucial user experience changes, it’s probably because you haven’t carried out a comprehensive programme modernization overhaul.

5. Technology-based business decisions are feared in society since they are expensive and difficult to reverse.

For all the reasons above, even the most minor digital transformation efforts can feel like large undertakings.

Fear and hesitation surrounding the IT work required to build new capabilities are significant indications that the existing approach is too burdensome. If crucial technology projects are consistently shrouded in concerns reminiscent of toppling a delicate house of cards, we can change that.

The retail environment of today demands the capacity to act in a way that anticipates and keeps up with the speed of the evolving client buying trip.

Kilowott is a firm believer in modifying technology to produce the most compelling experiences along the route to purchase.

Your company shouldn’t be concerned about the effects of changing the path to purchase to meet present and future client needs.

Speed, adaptable technology, and painless implementation are necessary for innovation. Modernizing applications is so frequently required by innovation. Need guidance from an expert to modernize your retail solutions with web or app?

Contact Kilowott, Kilowott number, Kilowott email, Kilowott Sales
Jonas Bocarro
Jonas Bocarro

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