Solution Iteration 2 (Using Tools) based on latest Iteration

Shopping app: this is the one stop for shopping experience in AEON grocery store. Based on the usage of handphone's camera and built-in algorithm, the app can retrieve product's information quickly by scanning bar-codes. From the received information and historical data, the app can provide initial analysis and recommendations to customers. This is a form of edge computing technology. App can be synchronized with self-checkout counter for payments 

Advantage: provide a mobile, convenient and compact solution for customers. App is installed in personal handphone to make use of customers' own computing resources and provide the personal shopping experience.
 

Big Data and AI: Data collected from customers’ personal accounts by utilizing cloud computing  for data uploading on AEON mobile app. The data then will be analyzed and collated into monthly financial diary, product allergic warning, budget warning, and cheaper product recommendations for the customers. AI can also help to perform deeper analysis on the preliminary analysis shared from the apps and self-checkout counter.

Advantages

• Standard technology to handle massive amount of information.
• Detect hidden correlation between different metrics collected from customers.
• Big data and AI can help generating data which can be used as  customers’ insights for the company.
• Using this data will help the company to see the market trend and make strategic decision.
   

Blockchain usage: Related production information such as origin, production location, certification, sustainability, etc. are stored in company's blockchain platform. Customers can use their cameras to easily access the QR code provided at the side of the products. 

Advantage: secure and unchanged information in the system. Provide transparent information to customers as needed
 

Image recognition: one challenge of bar-code scanner by handphone is the difficulty in getting data if the bar-code is curved along the shape of products. By using image recognition, the recognition algorithm of the app can be improved through many samples collected from customers

Advantage: abundant supply of data for improvement. Technology is available in the market. The recognition algorithm can be improved in the continuous way.
 

Self-checkout counter: accepts customer's QR ID to access cloud storage to retrieve shopping list

Advantage: Technology is available in the market. Self-checkout counter serves as interaction point between online and offline shopping activities. Usage of self-checkout counter can be intuitive. 

[convenient shopping experience for customers and valuable data source for the company]

As each user has own account, his or her data will be captured in the apps and upload to company's data warehouse through cloud technology.

Data will be captured from the apps for:

• Basic demography information: age, gender, occupation, birthday
• Shopping activities: items purchased, categories, spending record
• Shopping budget per month/week, average actual spending, actual spending
• Time spent per shopping time
• Location of shopping
• Types of payment
• Types of packaging preferred
• Shopping items on special occasion: holiday, festive, birthday
• Attention on environmental-friendly and sustainable product

Simple data analysis will be performed by the app, such as:

• Total actual spending, assuming all scanned items will be purchased
• Simple comparison from budget and actual to give out alerts

Complicated data analysis can be done through AI, such as:  

Collection of items to be purchased during grocery visit

Basic data analysis can be done from the apps and transferred to data warehouse for deeper analysis into shopping habit, behavior, usual shopping item, change in income, care for environment and sustainability.

From this, we can understand better each customer to create a great individual shopping experience.

1. Self-checkout counter will allow customer to save time from queueing in long line: 
   →  time saving: by using their own phone to scan the products, the customer would get proper information on what they’re buying while doing grocery shopping. 
2. Use of your phone to scan your products and not a machine provided by AEON stores
   → Convenient and safer: As a matter of fact, when customers are shopping, they are carrying plenty of things: their phone with their grocery shopping list, their bag, their basket and so on. By giving the customers a public phone to scan the products, it is difficult for the customers to carry everything out. Moreover, with the global pandemic, lending a public phone that everyone touched before is not that hygienic especially for Japanese people. By developing AEON application and letting consumer use it with their own cellphones, it is better in terms of hygiene but also more practical for the customers.
3. AI provides product recommendation that contains no ingredients related to customers’ allergy through their mobile phone so that they can control their better health
   → Customized/personalized service, feeling of belonging with a qualitative service: At the same time, this build a great customer value as well in terms of marketing, as AEON would be trying to better understand their customers and to offer them specific services. With the gathering of all these data, they would be able to modify their storage and how their hallways are organized, so that they would improve their customer experience through time as well.
4. AI provides product recommendation to cheaper product when customer scans a certain product to purchase
   → Social: the customer is getting specific recommendation based on his/her budget thanks to the AEON application and based on his/her previous grocery shopping. It is easier for the customer to build a budget then, but it is also an important social matter for AEON: it gives the impression of being the grocery shopping mall FOR the customers, and not looking to make huge benefits.
5. AI provides new data also to the customers, based on their previous consumption and making them specific recommendations to cope with their budget
   → In control: by getting specific recommendations from the store, the customers can choose to apply these or build their owns in terms of budget. They are still in control, while saving some time in terms of budget studying.
6. Ordering your grocery shopping online and going to pick it up at a specific counter in Japan: perfect in the middle solution for the customer 
   → Coping with busy schedules: Not entering the store and losing some time in it but also coping with new hygiene restrictions due to the COVID-19 pandemic. However, it is better than doing grocery delivery for Japanese people, as they have busy schedules and could be working on late hours. It would be hard for them to be sure to be home on specific hours to get their grocery shopping delivered.

Cheaper Product Recommendation

Product Allergy Warning

Monthly Financial Diary

Security check-points

• At the enter/exit of the store, there are check-in/check-out points for customer to synchronize the apps and identify the store branch
• RFID security gates at exit point to detect the items without complete payment

Redesign of baskets and shopping carts

• Baskets and shopping carts are designed with an adjustable housing to mount different types of handphone

Shopping apps: Customers will install the AEON Shopping App that can: 

• Store personal profile: personal information, planned budget, food allergies
• Provide a unique personal QR code for check-in/check-out the store
• Transform personal smartphone into bar code scanner using back camera
• Update the shopping list and total shopping price when new item is scanned/removed
• Display basic information of item: name, weight, price, expiry date from item’s barcode
• Record the data on the shopping activities: actual spending, spending by categories
• Show the monthly/weekly budget, the average spending based on past shopping
• Alert on overspending of monthly/weekly budget
• Alert on the potential allergy to the customers
• Get personal recommendations to certain items ("Last time you also purchased") based on both online/offline shopping
• Cross-selling/up-selling recommendations: “Most of our customers also purchased”…
• Work with self-service counter to generate bill and make payments
• List out the number of items for cross-checking before payments

Shopping apps concepts

Traceability of items: 

• Item information is stored in blockchain for customers' references
• Customers can scan a QR code to access the information

Better self-service checkout counter 

• Upload the shopping list from app to counter
• Display the complete list with quantities for checking before payment
• Provide wide range of payment options, preferably non-cash. Can accept vouchers by additional scanning at counter
• Opt in for purchase shopping bag that can be reused or biodegradable shopping bag

Online grocery shopping: 

• Order online your grocery shopping, and then go get it at a specific counter to gain some time and never actually enter the stores