Plug into Cloud Computing: Technology Concepts for Fuel Retailers - by Wayne Fueling Systems

Fuel retail operators function in a fragmented industry with intense competition, intense margin pressure on fuel sales, and strict, ever-changing regulation and compliance requirements. As major oil companies exit direct retail investment, retailers are making more technology decisions and investments to help cut waste from daily operations and drive value back to their unique marketing and individual brand initiatives. As a result, any opportunity to reduce the cost of doing business is worth investigating, as is quickly deploying promotional campaigns and marketing programs that help position and sell high-margin products. This scenario is ideal for cloud computing.

What if the data and processing power needed to run a profitable retail business was as readily available as electricity, water, or natural gas? And what if your IT infrastructure effectively provided you with “levers” or “dials” to source more (or less) computing power based on dynamically changing business needs - only paying for what you use? For one thing, you would no longer need to invest as much in costly, upfront, operator-owned resources like servers, licensed software, or system networking equipment. And if you don’t have to buy IT equipment, you won’t have to service, maintain, or upgrade it every time you want to add new functionality or comply with system security mandates. This could transition your IT capital expenditures to an operational line item.

Utility Computing (sometimes known as Cloud Computing) is a concept that has been around for the last 40 years, but it wasn’t until the internet started to offer significant bandwidth in the nineties that cloud computing emerged as an industry. Today, Cloud Computing is what interconnects consumers on Facebook, iTunes, Twitter, and Google, providing 24/7 access to services, products, and information from anywhere around the world. Cloud Computing helps provide small businesses with access to a rich marketplace of best-practice, retail-IT solutions without requiring an investment in a company-owned IT infrastructure to enable demand forecasting, supply chain management, loss prevention, business intelligence, and more. This idea is somewhat radical when you consider the possibility of a single-site operator who is expected to provide a similar level of customer service as a high volume retailer, but is not responsible for investing and maintaining the necessary complex- and expensive-systems at their site.

Companies like Amazon, use the cloud as an established marketplace for connecting people who have goods with the people who want them. And when you think about the speed at which Amazon can identify a consumer, personalize promotions, and transact a sale, it becomes evident that cloud computing is transforming retail like never before; so much so that retailers are adopting cloud-based solutions in many aspects of their enterprise – from core retail and general business applications to digital commerce and marketing initiatives. When you stop and think about it, today’s retailers are doing more for their customers with less technology infrastructure as a result of adopting cloud computing. Applying this trend advances the fuel retail industry, and promises to dramatically change the consumer experience at the pump.

In addition to improving the customer experience, cloud computing at the fueling site can help improve operational efficiencies. Through cloud IT capabilities, a site operator can leverage actionable, real-time data to proactively respond to equipment or system issues, industry or pricing dynamics.

Imagine what could happen if a station manager was automatically alerted when fuel inventories were low and simultaneously prompted by the system to take action? And what if the system was capable of displaying regional prices along with an option to execute price adjustments across one or more sites?, Then the operator could manage and replenish fuel inventory, and also trigger price changes with a touch of a button, both in real time. Today’s technologies allow this simple example to be a reality, eliminating the need to manually search and sort through complex data.

Plugging into the cloud can also inspire retailers to interface with their customers in new ways by simplifying access to hosted applications like mobile wallets and loyalty programs. Even better, the obligations associated with system availability, regulation, and serviceability of these applications usually resides with the service provider, not the retailer. For example, when you combine consumer preferences and purchase history with analytics and a location-based technology in the cloud you have the ability to deliver personalized marketing campaigns, digital coupons, and targeted promotions to mobile consumers within proximity to your site. And when you allow customers to pay with one-click of their mobile phone at the pump, you can forever change the experience of purchasing fuel.

The adoption of mobile payments is inevitable (projection of 1 billion smart phones will ship across the globe in 2015 according to mobilepaymentstoday.com), as is the mobile-payment industry becoming increasingly crowded with providers. But not all mobile wallets are created equal, and not all consumers will opt to use the same provider. The scalability inherent in cloud computing equips retailers and consumers alike with options to easily manage any number of mobile payment solutions. Site operators plugged in to the cloud can rapidly provision and release new payment offerings with less management effort or service provider interaction. So when a new wallet provider is introduced that offers better incentives and lower fees, the site operator can quickly and seamlessly switch providers without disrupting their forecourt.

These examples are some of many benefits to consider when assessing the power of cloud computing and the role this technology can play in transforming your business initiatives. But the reality is: The cost-effective access to technology and information through cloud computing is maturing at an exponential rate. Regardless of company size or IT requirements, cloud-supported IT services can help fuel retailers work smarter and take new retail offerings to their sites and customers faster – in some cases instantaneously or within a few days versus the weeks or months. And with the time and money you may save with cloud computing, what new opportunities will you embrace that help meet the demands of your customers, improve operational efficiencies, and ultimately increase your profits?