The chief information officer of Dixy Vladimir Muravyev - about IT strategy, perspective and risky technologies in retail

Vladimir Muravyev: We lag behind in it the western countries for 3-5 years and I think that in the nearest future lag anyway will remain. It is connected, first, with inertness of our economy as such, and the fact that we have in general other priorities and drivers, than now in the West. Secondly, yet not all population of the country is ready to perceive new technologies which you mentioned.

Many retail networks, including Dixy, test these modern technologies, but to their real life application the long way still is necessary. I think, you should not implement something for the sake of a fashion. For any retail network, for any business, the main objective is to earn money, rendering services to buyers. And we too first of all are focused on that our business was profitable, and the buyer not only remained is satisfied, but also is happy. If we understand that some modern technology can give us strategic advantage, then we will develop it.

Vladimir Muravyev: I think, shops where there are no personnel will especially badly get accustomed. For example, shops like Amazon Go where the buyer comes, are taken away by goods and leave. Not because we cannot create such shops, repeat them will not make problems. A problem in another. In Moscow, maybe, it makes sense to open similar shops for creation "wow - effect". But in general, there is a high probability that at us many people will perceive such shops not as convenience, and more likely as an opportunity to take goods free of charge when nobody controls you.

Vladimir Muravyev: Yes, for certain free of charge they have persons interested to receive goods and there, but the level of consciousness of the population, it seems to me while is slightly higher. In similar foreign shops if you paid attention, on an input and output normal tourniquets, but not doors in all growth are set. And if our people can jump over tourniquets in the subway, then high probability that they will be able to make it and in such shop.

Besides, it is so far very expensive project. Perhaps all of us to it will come, but over time, definitely not in the next few years.

Vladimir Muravyev: In Russia the risk is still high that the sent drone will not return back. Though, of course, this "toy" will be interesting to much. We know the companies which intend to try delivery by drones, but so far it at the level of experiments. Including because it is difficult to call such projects paid back. Also there are regulatory restrictive factors. Probably, in the village such delivery would be simpler to be organized, than in big cities. There are less security issues in comparison with the cities where, for example, a huge number of wires, high houses, etc.

Vladimir Muravyev: There is a number of projects where we tried some technologies and are already ready to begin their replication. For example, the "computer vision" combined with artificial intelligence. It is about recognition of goods and persons of buyers. For example, it is possible to photograph regiments with goods then there is an automatic comparison with the plano-gram of the calculation of goods which is earlier loaded into base regarding whether correctly they stand, whether there are no products, etc. there.

Now we carry out projects on targeted advertizing in shops of one of our retail chain stores Victoria using a sensing technology of persons. On the big screens installed in trading floors the camera for recognition of a human face which, passing by, pays attention to the screen fastens. It is possible to define, the man it or the woman, approximate age, and taking into account these parameters, proceeding from the existing pool of advertisers, on the monitor is broadcast the most suitable advertizing. For women it can be cosmetics advertizing, and for the man of average years, for example, beer.

The technology well works: the person will quickly be recognized, and advertizing begins to be broadcast. And many advertisers are interested in promotion of the brand thus.

At first we experimented with this technology. It was interesting to us to know for a start who comes to our shops what structure of the population. Having placed cameras on some shops, we could compare our idea of buyers to what they in reality. It allows marketing to understand more deeply, for example, why in this or that area some products are on sale worse, and others it is better.

Recognition could be useful and at inventory of goods. The camera can be attached to the drone and to start it to fly between racks with goods for scanning of their barcodes. We begin to test such technology in one of our distribution centers.

Everything that is connected with mobile devices is also perspective. Everything that can be made via the mobile phone, beginning from creation of the order and the platform of e-commerce, before personal communication with the client when, for example, it is included into shop. We already have a considerable part of it.

Other perspective direction – Big Data. It allows to analyze, for example, what purchases are made in general by people.

Vladimir Muravyev: We pay special attention to analytics as without it it is impossible to be the retailer of top level, and the big team of specialists for this purpose works for us.

Also in cooperation with partners – the companies which provide mobile applications of an Internet-application, and with banks we look for ways of monetization of a trend of Big Data. It already well works at technology level: there is no problem to connect personification of the client with Big Data. For example, in Victoria supermarket chain based on SAP solutions the loyalty program "my Victoria" works. Its main goal – to understand preferences of our clients and to improve with them the relations.

Vladimir Muravyev: Be included in the list of the innovation retailers only for the sake of image for us not end in itself. First of all, we are concentrated on the client and if he is completely satisfied, will receive the best service even without innovations, so we well do the part. I will refrain from comments about inclusion in this list of dear rival colleagues.

Vladimir Muravyev: In addition to the most interesting to us technologies about which I spoke earlier robotization is also interesting to us. Here we do not speak about robots who can be seen at offices of one of large banks, and more likely the speech about robots for business process optimization inside. It can be robotization of operating activities, communication with the client through contact centers. It is transition to a certain virtual reality which will allow to satisfy as much as possible our client without presence of the person. Robots have great qualities – they do not sleep, are not ill, do not eat, are not late for work. In this direction we look. Here it is possible to note artificial intelligence.

Our IT strategy in general is directed to, on the one hand, to satisfy the client, and with another – to increase efficiency of own business processes. We make many efforts to minimize labor costs and to increase efficiency. For an operations staff of shops, for example, we create mobile applications which would give the chance not to sit down at the PC. In them it is possible to do the order of goods, verification of the entering and outgoing documents, deliveries, to carry out inventory and inspections on shops, to communicate with the central office and the supervisor. All in one application.

The application already in a pilot project, now we complete its development and we are going to replicate on all shops in the nearest future.

Also we try to simplify work of cashiers, interacting with vendors which do cash registers. We aim to improve the interface, to make it simpler for the cashier.

Vladimir Muravyev: In Victoria shops of cash desk of self-service several years are operated, and every year the number of such cash desks grows in this network. On the one hand, such cash desks have all advantages of robots about which I spoke earlier, and with another is an image story. There is a separate buyer category which like innovations and which want to punch goods at such checkout. For Dixy we do not see sense in cash desks of self-service yet, they approach under a format of Victoria supermarkets more.

In a case with mobile cash desks economic effect is absolutely unevident. State regulation requires check of the increasing number of goods at the checkout recently. Now it is alcohol – scanning of excise stamps, and tomorrow there will be something else. Because of it the cash desk acquires different scanners and other additional elements. Therefore the mobile cash desk, probably, is good for those who buy, conditionally, only bread and water. And for more difficult enrollment of purchase such cash desk can be not really convenient.

Vladimir Muravyev: The subject is really fashionable, and for retailers in general rather advanced. At the same time, the product retailer has restrictions. The buyer, perhaps, also wants to see alternative methods of purchase and the goods delivery, but the market dictates restrictions which do not allow to implement these opportunities for 100%. For example, now it is impossible to order alcohol on the Internet, behind it you are forced to go to shop. Also there is a question: if you need all the same to go to shop why then not to purchase in shop and other products?

Vladimir Muravyev: It is one situation. There are still subtleties connected with fresh fruit and vegetables, meat and fish. Unlike alcohol, hour or two is enough to take of them in the wrong environment of storage, and the buyer will receive a defective product. Maintain such service very difficult. Considering all this, we approach a question of omnichannel very carefully: attentively we look at experience of competitors in this sphere and we think of implementation of the electronic commercial platform for bigger penetration, we think over logistics, delivery. It is necessary to consider that start of such project are enormous costs for retail chain stores, and not the fact that they are quickly monetized. We want to minimize these risks.

Vladimir Muravyev: I cannot open the budget in absolute digits, but I can tell about its dynamics and structure. In terms of operating costs the budget is reduced. I think, now it is a characteristic situation for any retailer as in an operational part the greatest opportunities for economy lie.

Reduce these costs becomes possible, including, due to growth of the market of services of outsourcing: a part of processes which the retailer executed earlier itself can be transferred to the outsourcer. Besides, service prices fall against the background of arrival on the Moscow market of new regional IT players.

In 2017, for example, we transferred engineering service of shops and contact center to outsourcing. It gave big economy. A part of the employees who are earlier occupied in these processes passed to the outsourcer, a part – went to other projects out of the company.

Regarding capital costs, we increase expenses on innovations, it is a trend. In the same part of the budget there are also fixed expenses on IT infrastructure, its updating and expansion. Amounts of data grow, and more and more capacities for their processing are required.

Vladimir Muravyev: The most expensive projects those which are regulated by the state. For example, in 2017 for all retailers, probably, transfer of cash desks in the online mode, the Mercury project was the most expensive project, and ahead of us waits for the Unified State Automated Information System to which alcohol is already transferred, and also transfer of cigarettes is expected now.

Also we put much in development of internal developments among which – mobile solutions. Among other large projects – projects on gain of cyber security, protection of company assets as the number of cyberincidents seriously grows and also migration of ERP systems on other platforms or versions. The decision on ERP will be made next year.

Vladimir Muravyev: There has to be a reasonable compromise according to tasks of the company. When you implement a system and you have with guarantee many problems which you will solve, in this case it makes sense in own development team. It will be cheaper for the company. It is also possible "to grow up" own specialists if in the company systems which are not widespread in Russia are used.

If to speak, for example, about the systems of SAP or Microsoft at which a part of processes in our company works then in the market there are a lot of consultants from whom it is possible to select. If the speech about any highly specialized systems – warehouse solutions, rare ERP solutions in Russia – here is more convenient to be guided by own specialists more.

We observe such balance. We solve every time by what forces it is more profitable to carry out tasks. Own developers at us about 100 people.

Vladimir Muravyev: "open source" - products have several advantages. First, they save from need of license fees which often require serious means, and secondly, they give flexibility in use of software platforms. They can be modified independently as it is necessary for you.

There are, of course, also difficulties with such software. It is not easy correct to select the platform which further the company will use. A shortcoming is also the lack of the guaranteed support, it is necessary to rely on non-commercial terms of use and community.

I think, in use of the licensed and open source software there has to be a reasonable balance too. We, in particular, try to use open source in frontal solutions which we do in shops: all this that is connected with data collection terminals, with cash devices, with peripheral devices.

We would never begin to apply open source in financial systems, ERP, security systems.

Vladimir Muravyev: We created this accelerator on purpose more widely to look at the market of the ideas which lie in retail. We want to find perspective startups which for one reason or another do not enter the broad market. Perspective for us as for the retailer and for the buyer.

We together with partners from Skolkovo business school watched about 100 startups which addressed us. They were in different stages: and in a stage of a ready-made product, and in an idea stage. From about 10% from them we made pilot projects, and anyway as a result we are going to use about a half of them. With someone we already reached understanding of need to sign the agreement.

Recently we declared the winner of our first accelerator about the choice. The GoodsScan project is an automated system of monitoring of trade inventories on distribution centers of the retailer using technologies of "computer vision" and "machine learning". Project implementation allows to reduce costs on inventory on 90% and to increase efficiency of warehouse logistics. Dixy will provide to development team the platform for testing and will finance start of works. In case of success of a pilot project we will be able to replicate this technology on all our distribution centers.

The effect of an accelerator is, and we want to continue this activity. At primary stage we are ready to put in each selected project to 1 million rubles.

Vladimir Muravyev: We in the company have no such position as Digital Officer or the chief innovation officer because we adhere to the following look: very pro-active people who are selected by the CEO Sergey Belyakov work at positions of top managers at us, forming a team of adherents. And our CEO the innovation person in itself very much. He entirely separates those trends which are in world economy, in product retail. Moreover, he introduces many ideas and in fact stimulates a command for their piloting and implementation. In this plan, I consider, we were very lucky.

All innovation sessions at us take place with a command, and the innovation startups are discussed with a command. Therefore separately chief financial officer or the HR director do not play a role here. Innovations are discussed by a command with the clear leader.

Vladimir Muravyev: The chief information officer of any large company should combine in himself many roles. He should be both the leader, and the coach, and just the manager, and should plunge into operating activities and monitor innovations. It is difficult.

One of difficulties – when at you is big collective, and there is a task both to develop people and to bring the value of the company. The Chief information officer's task – to form such team which, on the one hand, will add value to business and with another – a command will be allocated on achievement of a maximum as a command and for education of each team member as persons. This balance, this synergy it is very important. Yes, it is difficult, but it is very interesting.

Vladimir Muravyev: I do not interview linear employees but only candidates for the main leading positions. If to speak about evaluation criteria, then the first – the person should be a professional with profile education. With mistrust I treat people who, for example, got an education of the agronomist, and then suddenly began to program. There will not be enough basic education in such cases sooner or later.

The second – the person should be the person and the member of collective. Sometimes happens so that as the professional of people is very good, but I see that he will not be able to fit into the acting collective because of any traits of character. For example, he is not a teamplayer, and the individualist.

And the third – I pay attention and sometimes I give tests to look, how well the person thinks. It is important because even if the person – the good professional also approaches in a command, but does not want to think, develop, it means that he stiffened somewhere in time. Such employees do not move the company forward, and we need those who will move, develop itself and to move the company.

Vladimir Muravyev: I earned the first money when to me was years 14. We had a gardening partnership, and we helped to build a fence around it. There were not enough working hands, and we for days on end dragged boards, sawed them, and as a result with children earned 25 rubles in a week. From them I gave a half to parents, on the others then bought sparkling water.

Vladimir Muravyev: I got the first managerial experience about 20 years ago when I was appointed the head of software development of one large trading company. And still yesterday the programmers who are sitting next to me appeared at me in subordination – more than 10 people. It was not absolutely clear what with them now to do. After that and still I worked as the Chief information officer and, in fact, only the number of people and a profile of the company changed.

Vladimir Muravyev: Sure, optimal, rational professional. Rational – because I will never implement or try projects in which I do not see value for all, for business. Sure I because, having made a choice of the solution once, I surely go there where solved. Optimal – because I try to go to the selected direction with the minimum fluctuations.

Vladimir Muravyev: In people - non-obligation: when promised, but did not make. I always promise only what I will make and when the person something promises me, I wait too that it will execute it. Certainly, I work on it, I try to understand the person and the reasons for which he could not keep the promise.

Vladimir Muravyev: If not in IT, then in science. Upon termination of institute I had a choice – to go to the applied industry or to remain in science, mathematics. Sometimes I think whom I could be if remained in science. I felt in myself potential to it. And if I could not work now, I think, I would invest in something scientific. It would be some laboratory, an innovation, maybe, something, connected with researches in the field of physics, space, biology, chemistry.