Table of ContentsScanning in KeskoSelf-ScanningOverview of Self-ScanningAdvantages of Self-ScanningDisadvantages of Self-ScanningAvailable Self-Scanning TechnologiesBarcodeBarcode Digimarc barsRadio Frequency Identification (RFID)The growth of digital innovations has changed the food retail industry, with self-service technologies now the commonly used strategy. The theory of disruptive innovation, created by Harvard Professor Clayton M. Christensen in 1995, explains the "phenomenon by which an innovation transforms an existing market or industry by introducing simplicity, convenience, accessibility, and affordability where complexity and high cost “are the status quo”. The process of disruptive innovations generally follows a typical path, in which a product or service is initially created or developed in a niche market, then moves upmarket and ultimately reshapes the industry. (Clayton Christensen Institute 2018.) The process is generally longer and riskier than the conventional approach, but once the innovation is launched into the market, penetration is much faster and the degree of impact is higher on established markets. (As-sink 2006). Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get an original essay Disruptive innovations are usually developed by outsiders and entrepreneurs, rather than market-leading companies. The reason is that disruptive innovations are rarely profitable enough at the start for large players. Yet some argue that “disruptive innovations are not revolutionary technologies that improve good products; rather, they are innovations that make products and services more accessible and affordable” (Clayton Christensen Institute 2018). From the theory of disruptive innovation comes the concept of digital disruption. It is a transformation process brought about by digital technologies and emerging business models, which can affect the value of existing products and services offered in the business environment. (Oxford College of Marketing 2016.) Digital disruption has also influenced the food retail industry and, according to Chris Morley, Nielsen's U.S. president of consumer products and retail, "the food industry “Grocery is currently in the age of digital experimentation, where the road map for how to navigate and achieve real, profitable growth continues to evolve” (Nielsen 2018). Digitalization continually influences how customers plan their shopping trip, how they shop in physical stores, and what they do after they return. House. Not long ago, digitalization was a very small part of the shopping experience. Today, most of the shopping and customer experience is digitally influenced and more and more people are using mobile while shopping. As a result, retailers need to understand how their customers activate digital services while they are in the store and before and after their purchases. (Hoffman 2017.)Digitalization in KeskoAs discussed in the previous section, the food retail industry is experiencing a major shift, where digitalization is affecting all aspects of commerce. Most food retail companies, both global and local, have realized this transformation and are trying to meet the ever-changing demands ofcustomers by creating the best digital customer experience. Kesko also identified the new digital environment and updated its strategy in 2015 to involve a stronger digital approach to create competitive advantages and offer its customers the best digital services. One of Kesko's strategic objectives is to offer the best digital services in the commerce sector. In order to achieve its goals, Kesko has focused on creating new digital services, which include digital interaction with customers across all channels, targeted and personalized digital marketing, innovative e-commerce solutions as well as customer-oriented mobile services. (Kesko 2018a.) To ensure implementation of the new strategy, Kesko made organizational design changes in 2016 and employed dozens of new digital professionals. One of Kesko's most important digital services is the K-Ruoka mobile application, which has been launched. to the public in 2015. The mobile application was developed to facilitate customers' daily lives and gain a competitive advantage. From the company's point of view, the launch of the application was an important step in the implementation of digitalization. The K-Ruoka mobile application has several functions that customers have found very useful: shopping list, recipes, product and price information, personal offers. , online shopping, K-Plussa points information and K-Plussa cash balance, maps of the nearest K-food stores and a smart shopping history based on a shopping list, which can be shared with others. It's no surprise that K-food store customers have become very fond of the app and currently there are over half a million registered users of the app in Finland. From a commercial point of view, not only has the application improved the image of K-food stores, but it has also been calculated that the purchases of customers who use the application are twenty euros higher than those of non-users. Another notable development in Kesko's digital services is the digitalization of the K-Plussa system. The K-Plussa loyalty card can now be downloaded as an app and works like the regular K-Plussa card in K-Group stores. The benefits for customers are visible: no longer need to carry different loyalty cards in their wallet and all data on K-Plussa points, offers and campaigns are accessible via mobile. Digitalization is often understood as something that only happens online. In the grocery retail environment, it is important that stores are also part of the digital experience, as the store remains the ideal place to create the WOW effect for customers. By creating digital solutions and services, Kesko has been able to make shopping in physical stores easier. For example, self-checkout kiosks, deployed in more than 120 K-food stores, have significantly improved the customer experience and, according to a survey conducted by the Finnish Trade Federation in 2017, 90% of respondents believed that the Using a self-checkout was either very or quite easy and smooth (Kurjenoja 2017a). The self-scanning service is a technology that makes shopping even more convenient and is also closely linked to self-checkouts. In the next section, we will discuss the self-analysis, the pros and cons of the service, its features and different technologies. Self-analysis Presentation of self-analysis Self-analysis is a technological solution that offers the possibility ofsimpler analysis and a comfortable way to make purchases, as it skillfully unifies the three essential elements that customers and merchants highly value: convenience, service and efficiency. Self-scanners allow customers to pick up, purchase and bag items while shopping, consequently speeding up the purchasing process and giving cashiers more time for other tasks. Through self-scanning technologies, part of the tasks of store employees is transferred to the customer and, as Marzocchi (2006) argues, self-scanning technologies are a form of customer participation in the creation of the service. Generally, there are two types of scanners in retail: handheld and mobile scanners. The handheld scanner is a separate device, which can be picked up by customers at the start of their shopping and is used to scan items as they shop. Mobile scanners are apps provided by store owners. A customer downloads the application to his/her mobile device (e.g. a smartphone) and uses the mobile device's camera to scan the barcodes of the products he/she wants to purchase. Self-analysis offers many benefits and unlimited opportunities. As a study from research agency VDC points out, “Retailers who deployed self-scanning found that at least 8% of everyday shoppers preferred to self-scan and pay for items themselves while shopping and often have larger average baskets. » . In the study, it was also observed that people of all ages use self-checkout. The solutions are widely used by shoppers looking for a new experience and the freedom to shop on their terms. (Husain et al 2016.) An overview of the advantages and disadvantages of handheld scanners presented from the retailers' and customers' perspectives is provided in Table 1.Advantages of Self-ScanningDisadvantages of Self-ScanningRetailersProfitabilityIncreased SalesAutomationReduction of Costs labor costsIncreased shopliftingCustomersEfficiencyEase of useMore controlReduced waiting timeUncertaintySelf-scan errors Self-scan is growing rapidly. According to the list of retailers that are already using or testing this solution (Appendix I), we see that in total up to 22 chains have adopted this solution. According to research conducted by research agency VDC, the expected annual growth rate of self-analysis software reaches 14% (CAGR, 2015-2020) (Hu-sain et al 2016). In addition, Nielsen researched, through a survey of 30,000 consumers in 60 countries, that "a portable scanner for purchasing products when shopping to avoid queues at checkouts is used today today by 12% of respondents worldwide, and 70% are willing to try it when it becomes available” (Ekman 2016). There is a growing demand for self-scanning solutions in Europe, and the number of European stores using self-service solutions (SST) as part of their customer service strategy is growing. For example, self-analysis solutions have been successfully applied and scaled in retail chains such as Waitrose (UK), ICA (Sweden) and Tesco (UK). A study conducted in Sweden found that Swedish customers use the self-scanning service and agree that it makes shopping easier, faster and more efficient (Ekman 2016). In the United States, customers also emphasize speed and convenience when shopping. According to eMarketer's survey of American Internet users, at least about 30% of participantsindicate they will return to stores with seamless and fast self-service options. Additionally, data from the 2013 Harris Survey showed that 88% of U.S. adults want their retail experience to be faster. (Nallapureddy et al 2017.) Available Self-Scanning TechnologiesDue to the rapid advancement of self-scanning services, there are several ways to recognize and read data for self-scanning devices. In this section, we will discuss three main scanning technologies presented in the market. These are barcodes, Digimarc barcodes and radio frequency identification (RFID). Barcode Being an optical representation of data, an array of machine-readable parallel lines alternating between white and black lines, as shown in Figure 2, barcode technology represents an easy and inexpensive way to record data or information in a number of applications. Nowadays, it's quite difficult to imagine life without barcodes, as they have totally changed the payment and inventory control process, not to mention many other industries. According to GS1, the number of scans exceeds 5 billion per day. Therefore, barcodes are going to last a long time due to the level of implementation they have already reached. Barcode technology has such key benefits as being a proven technology with deep roots, lack of adoption challenges for technology that works with barcodes, and an established ecosystem. (Nallapureddy et al 2017.) Digimarc BarcodeBeing faster, more reliable and more functional than the current UPC/EAN symbol and taking up no space, Digimarc Barcode is an essential advancement in traditional barcode functionality. With Digimarc barcodes, product packaging can be scanned at checkout with Digimarc compatible POS image scanners, significantly faster than traditional UPC barcode scanners. The Digimarc barcode is based on a robust fixed-code direct-sequence spread-spectrum image watermarking technology using a rotation, scale, and translation invariant pattern (see example given in Figure 3 below). (Nal-lapureddy et al 2017.) Digimarc and leading retail network manufacturers and thermal printer suppliers distribute a more powerful labeling solution for packaged food retailers and brands. The Digimarc barcode for thermal labels provides safer and more efficient reading, saving time and reducing costs, actively encouraging accurate data in retail and logistics environments at the same time. (Nallapureddy et al 2017.) Tenable adoption is questionable unless there are stimuli beyond the short lines for the customer to accept this solution. Digimarc-based codes must overcome implementation issues with manufacturers, package printing companies and POS data capture solution providers. Despite the sufficient traction with data capture solution providers, there is still much work to be done to drive acceptance on the packaging side. (Nallapureddy et al 2017.) This solution has the following key advantages (Nallapureddy et al 2017): Orientation (quick scan) – Adjustment of the packaging regarding the scanner is no longer mandatory due to the character of the barcode which is designed to be ro -resistant to orientation and, due to the imperceptibility of the watermark, provides considerable print redundancy on all sides of the package. Customer Engagement – ​​The Secondary Benefit of. 2017.)