The Evolution of Telecommunications in Retail companies in recent years
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IT Infrastructure and Operations General Manager

Felipe Valverde Pietri

The Evolution of Telecommunications in Retail companies in recent years

Felipe Valverde Pietri
Felipe Valverde Pietri, IT Infrastructure and Operations General Manager

In recent years, retail companies have experienced an accelerated transformation in the telecommunications sector. With the exponential increase in the amount of data being transferred, stored, analyzed, and transformed into real-time information, the need for a robust, flexible, and secure communication infrastructure has become crucial for business success. In this article, we are going to explore the main initiatives necessary for business growth, such as the growing need for internet bandwidth, the evolution of connectivity technologies, the new telephony trends, the modernization of Data Center structures, and a constant concern with information security.

Increased internet bandwidth:

Retail companies have been experiencing significant growth in bandwidth consumption. With the evolution of applications and the approximation of the physical and digital world, the demand for internet bandwidth has increased considerably. The use of cloud-based services, real-time data analysis, high-quality video streaming, and other online applications have been driving this increase in consumption. Retail businesses are increasingly relying on a fast, stable connection to transact, manage inventory, provide omnichannel support, and provide an enhanced shopping experience for customers. At Riachuelo, it was no different, and in the last 3 years, we have evolved the bandwidth in 100% of our branches, distribution centers, and administrative buildings, seeking greater quality of services.

Evolution of connectivity technologies

Retail companies have adopted SD-WAN architectures to deal with increasing connectivity demands by providing centralized and optimized management of network traffic. This results in greater resiliency, flexibility, and performance for retail operations. At Riachuelo, 100% of our branches adopt Meraki technology by Cisco, offering a comprehensive unified network solution managed in a simplified way through a cloud-based panel.

Telephony trends:

The evolution of telephony has occurred with the migration of PBX (Private Automatic Branch Exchange) solutions to the cloud, which eliminates the need for local infrastructure and allows internal and external communication through voice calls over the Internet (VoIP). At Riachuelo, in 2022, we finalized the migration of all telephony in branches and corporate buildings to this new technology, bringing greater quality, efficiency and integration with collaboration tools.

Modernization of data center technologies:

At Riachuelo, we seek to modernize our Data Centers by approaching the new trends for cloud architectures. In this context, companies have sought to modernize using software-defined networking (SDN) solutions, such as Cisco ACI (Application Centric Infrastructure), which automates and orchestrates the network infrastructure, providing simplified deployment of applications, centralized management, and greater security.

Evolution of information security and concern with network microsegmentation:

With the increase in cyber threats, retail companies have directed efforts towards the evolution of information security. Micro-segmentation of networks has become a common practice, allowing fine-grained segmentation of the network and restricting access to authorized users only. This approach increases the protection of sensitive data, minimizes the impact of potential breaches, and strengthens the security of retail operations.

Evolution in telecommunications will continue to be the basis for enabling business transformations

Looking to the future, I see companies focusing on the pillars of digital transformation, bringing the experience of the physical world closer to the digital world. Artificial Intelligence (AI) will play an increasingly important role in retail, assisting in personalizing the customer experience, data analytics, chatbots and process automation. Evolution in telecommunications will continue to be the basis for enabling business transformations. Emerging technologies will continue to revolutionize the market that yearns for more speed and connection quality than ever before. For example, 5G offers ultra-fast speeds, low latency, and the ability to connect a large number of devices simultaneously. In retail companies, this will enable significant improvements in customer experience, process automation, real-time monitoring, augmented reality, Internet of Things (IoT) and innovations in logistics. At Riachuelo, we are piloting the technology with strategic partners in order to have greater mobility in the group's stores.  

In conclusion, telecommunications in retail companies have undergone a notable evolution driven by new application demands for greater quantity and quality of internet bandwidth to maintain a connected experience between the physical and digital worlds. The adoption of new technologies has been instrumental in improving the customer experience and streamlining operations. Retail companies must continue to keep pace with emerging trends such as artificial intelligence, digital transformation, and the potential of 5G to remain competitive in an ever-changing environment. Investing in advanced telecommunications infrastructure, information security, and technological innovation will be crucial to the continued success of retail companies in the future.

The articles from these contributors are based on their personal expertise and viewpoints, and do not necessarily reflect the opinions of their employers or affiliated organizations.