Microsoft Corp. recently said it would open retail stores
so it can better engage with customers and understand their needs, and
in the words of chief operating officer Kevin Turner “transform the PC
and Microsoft buying experience at retail.” The company also said it
has hired a former Wal-Mart executive, David Porter, to help run the
new retail chain.
Getting to know customers in that more direct fashion is something Apple Inc.
has already been doing quite successfully with its fleet of retail
stores. In Microsoft’s case, the company may actually end up with a bit
of a shift in image should the retail stores prove successful.
About a month prior to Microsoft’s announcement, consultant and blogger James Taylor had written, on a different topic, that U.K.-based grocery chain Tesco PLC
reigns supreme when it comes to reaping the benefits of business
intelligence business intelligence (BI), and that even Wal-Mart still
had much to learn. Taylor said that while Wal-Mart uses BI quite
effectively to run its supply chain, it doesn’t necessarily use that
analysis to understand and very specifically target its customers.
So back to Microsoft and its new retail chain. No doubt David Porter
will bring to the table very valuable Wal-Mart experience with retail
BI that Microsoft didn’t already have. Maintaining an effective supply
chain will help with store operations by keeping shelves stocked. But
actually engaging with the customer and ascertaining their perspectives
and desires is a very different focus from running a supply chain.
But maybe David Porter is planning on taking a different approach
than that applied at Wal-Mart, with a broader use of BI and a closer
relationship with the customer. But time will tell if Microsoft would
have been better off poaching talent from Tesco instead.
