The link between omnichannel innovation and edge computing

As autumn (and Black Friday) approaches, it’s a good time to revisit retail trend projections from earlier this year. In addition to mentioning artificial intelligence’s (AI’s) burgeoning retail applications and the circular economy, the National Retail Federation’s (NRF’s) annual trends forecast emphasised that omnichannel capabilities would continue to evolve rapidly.  

That’s certainly been the case throughout most of 2024. I mentioned in March that my discussions with retail professionals at Vertex’s NRF 'Big Show' booth suggested that the traditional boundary between physical and digital channels is blurring. IDC Research has used the phrase 'transcendent commerce' to describe what sounds like the next phase of omnichannel – a form of digital commerce that 'leverages the power of analytics and AI to move beyond traditional, siloed business models and tactical channel engagements.' 

Retailers’ intensifying focus on omnichannel advances begs an important question: what do retailers with leading omnichannel capabilities do differently to the rest of the pack? A recent survey report from BCG and World Retail Congress points to some interesting answers.  

BCG’s analysis of 400-plus executives at global retail companies identifies three levels of retail innovation maturity ('leaders', 'followers', and 'laggards') based on the level of importance companies place on innovation and the financial returns organisations generate from those investments. Although retail innovation applies to numerous activities, it’s reasonable to infer that omnichannel figures prominently among those capabilities. 

According to the report, retail innovation leaders: 

• Use innovation to shift customer expectations; 
• Enlist external partners (e.g., consulting and software firms); and 
• Simultaneously invest in multiple innovation projects. 

The report also emphasises that retailers can enhance innovation by aligning with strategic goals and reviewing their data and technology stacks. 

Those reviews should extend to tax technology and zero in on edge computing functionality. Edge computing helps move tax calculation close to the point of need. For example, Vertex O Series Edge provides localised tax calculation endpoints paired with a unified source to manage full tax configuration, audit records, compliance activities and data analytics. As my colleague Matt Thoman — Retail Solution Owner for Product Management at Vertex —notes, Vertex O Series Edge with EdgeLink “adds self-updating endpoints and centralised, on-platform management, fully completing the connection between the central system and tax calculation at the edge.” Matt has detailed the benefits of our new EdgeLink suite of features; our product page has additional information.  

At a time when retailers strive to sustain an excellent, seamless customer experience across all digital and physical channels, it’s important to keep in mind that the speed and accuracy of tax calculations affect the customer experience. When sales spike on Black Friday, for example, the tax automation solution must manage peak load spikes without any lags or latency.  

Conducting a thorough review of your existing tax technology suite — one that considers how edge computing can help tax, finance and IT groups alike — can help transform innovation 'followers' into leaders.