AI for Retail

CHAPTER 27Transitioning to a Fact‐based, Data‐driven Culture

“The first principle is that you must not fool yourself—

and you are the easiest person to fool.”

Richard Feynman

If no other advice is taken from this book, I hope this chapter is the one that will be retained and utilized most. The one thing that so many retailers need to internalize is the benefits of applying the scientific method to their business and culture. Hypothesize, experiment, measure, repeat. This is how we know anything. How far is the moon from the earth? Are photons particles or waves? Does gravity travel at the speed of light or is it instantaneous? Will my customers adopt self‐checkout? Can AI double my FCF or not? Can I run e‐commerce profitably?

To optimize anything, we must first measure and measure well. Only through careful experimentation and measurement can we really know anything.

This is one of Focal's core values, and this mindset has been the main contributor for our success. At Focal, there are no bad ideas. We strive every day to convert almost all opinions and unknowns with facts as efficiently as possible. I often tell my team, “I don't want to waste time arguing about something we can easily go to the field and test in a day.” Back to Chollet's measurement of intelligence, the more efficient we are at converting experience to knowledge or skills, the more intelligent we are. So let's consciously try to set up systems to do so.

Now apply that thinking to your business. I have heard ...