Inside Naivas Supermarket Chain’s Digital Transformation Journey

You don’t want to be the one playing catch up when it comes to adopting technology. This is not the case though, for Naivas. The retail sector is one of the first sectors to be affected by accelerated digital transformation not for adoption’s sake, but to stay ahead of the competition. E-commerce was the major disruptor in the retail sector having posed a challenge to supply chain retail stores and corner shops. During the pandemic, for instance, e-commerce really grew up and out with most of us preferring No Contact shopping and delivery. It challenged retailers, particularly supermarkets. Re-evaluation became mandatory and technology became vital for the maintenance of their customer bases and to improve shopping experiences. It was such innovation that put Alex Karanja on the dx100 Awards radar.

As Head of Digital Transformation: Data Analytics and Innovation, Naivas Supermarket Chain, Karanja’s submission was also his inaugural. He made it to the shortlist of the revered CIO of the Year Africa Award. It was certainly worth a good conversation.

Who is Alex Karanja?

I am a technology enthusiast who believes that technology has the power to transform our everyday interactions and improve, if not exceed, our aspirations. I consider myself a rather quiet fellow most of the time, given that I grew up in a large family with five brothers. I am married, with two young boys who I surprisingly learn something new from every other day. I see a lot of myself in them.

What precisely is your main role at Naivas?

My job title is Head of Digital Transformation: Data Analytics and Innovation. I lead the team behind the implementation of technologies that brings business innovation and delivers the customer promise. My team provides solutions to support our primary focus as being customer centric. I am extremely passionate about IT, data and how both can be leveraged to enhance business processes, develop a data-centric corporate culture, enhance productivity and process ownership, and lower overall operating costs.

What does your typical day at Naivas look like?

I would describe myself as a night owl who much rather prefers a late night to an early start. My day typically starts off with a series of meetings with company leaders and department heads to discuss ongoing projects, new initiatives, and any issues or challenges that need to be addressed. These meetings often involve reviewing progress reports, discussing strategies and plans, and making decisions about resource allocation and prioritisation. Lunchtime, for me, is usually time to catch up on industry news and trends by reading tech blogs and news articles. In the afternoons, I might have additional meetings with external partners, vendors, or technology experts to discuss new technologies or partnerships that could benefit our company. As the end of the day approaches, I often take some time to review progress reports and action items from the day’s meetings and work, and to plan for the next day’s activities. I will also check in with my team and provide guidance or support as needed. I try to leave work at a reasonable hour so that I can spend time with my boys. I mostly dedicate any late hours to self-development, tinkering around with tools and new tech.

Digitally, what is the edge that Naivas has over other players in the supply chain sector?

We have an appetite for innovation and technology continuously investing in digital infrastructure not only to improve our own processes but also to influence efficiency in our vendors operations. Naivas leverages on data analytics tools and technologies that enable us to collect analyse vendor and customer retail data in real-time, and to use this information to make more informed business decisions. By developing loyalty programmes and other incentives that reward customer loyalty, we provide a personalised shopping experience, which then influences the vendor demand and supply forecasting, as well as promoting variety for the customers. We also invest in vendor relationships by fostering digital engagements which not only consume feedback, but builds flexibility in the business interactions such as aligning schedules of work between various parties.

Your project using WEBCON BPS got you on the final list for the dx100 Awards. How did you feel about that achievement?

Honestly, I was elated. It came as a surprise and an honor to be on a finalist. It was the very first time I had applied, and my peers had enthusiastically encouraged me to do so. Becoming a data driven business not only for big decisions but also for day-to-day frontline decisions is my team’s objective. Having this not only recognised but to also have it resonate with the industry is truly rewarding. WEBCON BPS is a low code platform that is workflow oriented. As it is business process centric, it allows the business to not only digitalise, but also process re-engineer simultaneously. It has a distinct feature termed as InstaChange allowing us to be agile on the go, rolling forward any process changes into the existing data instances. It truly lives up to the mantra ‘fail fast, fail forward.’

Had you anticipated winning the CIO of the Year, Africa award? What was your reaction when you didn’t?

To have my name mentioned among such talented finalists was already a big reward for me. To get this far, I did have the confidence to take the prize. The support and words I received from my peers at the event was the most humbling part of the experience. Ultimately, my satisfaction comes from seeing the positive impact technology can have on our business and on the lives of our customers and employees. If I am very proud of the work that my team and I have accomplished, it is because I intend to focus on driving innovation and transformation.

In your opinion, what was it about the project that got you to the nomination list?

The project addressed challenges not only in our business, but the industry at large with the various players in the supply chain. By embarking on an ambitious project to evolve our business process, we not only sought to disrupt our own traditional beliefs on the way of work, but also have a wider impact on the standards which the supply chain operates on. Our project’s achievements bring a level of transparency and clarity of ownership that quickly identified the bottleneck in the chain allowing for quicker decision turnaround times and productivity from all parties. Transformation is more than just a senior management responsibility. By being process centric, we were able to carry the business along as a whole. Apart from the dx100 Awards, what other awards have you been listed for, and won?

I have played in the background for a long time and participating in CIO events has been a very good entry to the industry peers. I hope to gain more from these interactions and perhaps some trophies along the way.

You would deserve it so all the best with that! Now, what is the result of getting recognised to the CIO given how CIOs weren’t recognised as much prior to the digitally accelerated transformation of the pandemic?

The recognition at these awards had a big influence on me. I am now totally focused on innovation and data analytics in our company with the fortune of having a CTO run with the daily operations. The innovators are heroes of change and are rarely acknowledged for the impact they bring, and have, alongside the evolution of adoption. Shining a light on these roles within the ICT business infrastructure has a tremendous effect of validation and inspiration to the industry at large.

In your opinion, what has been the tech uptake by supermarkets in the African space? Do you think the players in the supply chain sector are using technology to its full potential?

The increasing penetration of smartphones and mobile internet across the continent has created new opportunities for digital engagement with customers. In particular, the supply chain sector has been investing in technologies such as mobile apps, digital payments, and e-commerce platforms to enhance the customer experience and drive sales. Many retailers have also been using data analytics and artificial intelligence (AI) to gain insights into customer behaviour and preferences, and to optimise their supply chain operations.

What can be done to improve the use of technology in the retail sector?

Of course, there is always significant room for growth and improvement in terms of technology uptake by supermarkets and players in the supply chain sector in Africa. Many small and medium-sized enterprises (SMEs) in the sector are still not fully leveraging the power of technology. They still encounter challenges such as limited access to affordable and reliable internet connectivity, as well as a shortage of skilled technology professionals. Generally, the emergence of AI in the common space should be a tool we leverage to get ahead of the curve as I see this being used in the future.

It can be said that e-commerce has quite revolutionised the retail sector. Does this pose as a challenge to supermarkets?

With the growth of online marketplaces and e-commerce platforms, consumers have more options than ever before when it comes to shopping for groceries and other consumer goods. However, I still believe that supermarkets provide an unmatched experience for consumers. Many consumers still prefer to shop for groceries in person, particularly for fresh produce and other perishable items. Supermarkets can leverage this preference by providing a seamless omnichannel experience that allows customers to shop online or in-store all the while also providing customers with personalised experiences and fostering digital engagements to build customer loyalty. With data analytics coming into play as well, supermarkets can predict and deliver an experience that consumers would want to have.

What can supermarkets learn and borrow from e-commerce platforms in Africa?

As much as technology is becoming a norm, the support system around it is what needs a lot of investment. We are not only talking about the skills needed, but also, government incentives for trainings. When you release a tech invention, the bigger part of the success is the usage of that technology. You need to train your people and make them more aware. I think when we get to a point where the same way people operate social media platforms is the same way they navigate other systems banking on technology, then we would be further ahead. Like I said, many consumers still prefer to shop for groceries in person, particularly for fresh produce and other perishable items. Supermarkets can leverage this preference by providing a seamless omnichannel experience that allows customers to shop online or in-store. However, to achieve that, we need the public to be more aware.

Maybe they can make it more fun the way social media platforms are doing it. Yeah. You gamify things, you put in some competitions. We are building the innovations team and having a CTO run operations. It allows us to focus on enhancing the customer experience. There are exciting things in the pipeline including gamifying how we operate as employees. We might also be working on a super app. You will see more about it soon.

What would you say drives and motivates you?

I am a curious mechanic, a term I picked up in my earlier years. Providing solutions and tech supported ones at that, drives me. I aspire to be a part of the digital disruption wherever I go.

Could you share an example of something that has challenged you, perhaps even to the point of failure?

I think challenges and successes go hand in hand. Project failures are always life lessons. I’ll give an example. Four years ago, we felt it was a good time to do internal systems change at Naivas. The highlight of that project for me was that we were able to do it without closing any branch as we had around 60 branches at the time and had very little customer downtime. However, it was during the pandemic. The data analytics part, which was a big part of that project, did not go as planned. We reached a point where everyone was trained, but the existing experience needed to handle normal project management just didn’t work. The biggest lesson from that was we need to be agile and flexible. That was a real struggle on the assumptions we made and the consequences of those decisions. We also learnt a lesson on how to balance business and technology.

Could you give us an example of a project you have worked on that was successful and you achieved what you set out to?

I would obviously talk about the project that got recognition at the dx100 Awards …! A while back, I did a lot of implementations for retail in systems. When I was a real techie. There was a time when I was in Lusaka for over a month, and we essentially changed the business process and systems of that supermarket in that window. We talked solutions one week, and the next week was about providing the solution for it then the following week, we were talking about something else entirely.

We did that project in a very short time and you couldn’t recognise that store two months later.

What would be your advice to young individuals who aim to one day be in the C-suite, like you?

Identify your interests early. If its tech, then identify it early, and choose an industry early so that you are not just oriented towards an industry, but you also have deep knowledge about said industry. It is also important to focus on yourself and your growth. The phrase ‘fail fast and fail forward’ resonates across all levels. Aside from this, focus on building a strong foundation, develop your leadership skills, build a strong network, be adaptable, focus on adding value. That is my advice.

What do you do outside of work?

I enjoy playing football. I joined a group of older gents, and we play at Galleria. The younger ones outpace me now. I also enjoy road trips; I find driving calming even when at the karting track.

Do you follow the English Premier League?

Yeah. Actually, you will be surprised but I’m a fan of Tottenham Hotspurs.

ARTICLE by STEVE MBEGO