Technological evolution, driven by the development of Artificial Intelligence (AI) and the Internet of Things (IoT), continues to transform daily life. One of the activities most impacted by these changes is commerce, especially retail stores that seek to adapt to compete in a phygital market.
Physical stores are adopting an increasing number of smart tools, allowing them to offer conveniences typical of online shopping, such as self-service kiosks, contactless payments, and cashier-less stores. These advancements enhance the customer experience, as well as optimize internal operations, enabling small businesses to compete with e-commerce giants.
This transformation brings multiple changes in people’s consumption habits, impacting traditional shopping methods. Currently, stores are redirecting their efforts to meet the new demands of customers through the implementation of smart devices. However, Palo Alto Networks warns about the cybersecurity risks involved.
Increasing productivity with sustainability: IoT-based solutions
Technology, besides streamlining the shopping experience, reduces operational costs, promotes customer loyalty, and increases satisfaction. Moreover, automation enhances inventory management, allowing for quicker restocking, more efficient customer service, and self-service systems that speed up transactions, boosting productivity.
IoT-based security systems strengthen theft monitoring, while energy usage is reduced through lighting and equipment optimization. Loss prevention technologies also help reduce waste and overproduction, promoting sustainability.
According to Starfleet Research data on best practices in retail security, 68% of companies have already implemented this technology to accelerate intelligent customer interaction, real-time inventory management, and digital operations system development.
In this way, productivity drives a more sustainable model, aligned with global commerce trends. Also, according to the report, 58% of retailers are implementing IoT-based energy management solutions, such as interconnected lighting systems and water monitoring apps, helping companies meet environmental responsibilities.
The challenges of cybersecurity in commerce transformation
The proliferation of connected devices also increases the potential risk surface for cyber attacks and data breaches. The rise of intrusion techniques has made IoT devices particularly vulnerable. According to the IoT Security Best Practices of Top-Performing Organizations in Retail report, only in 2022 did ransomware attacks grow by 67% compared to the previous year, highlighting the challenges faced by the sector.
Governments worldwide are responding with regulations designed to improve security in this area, such as the IoT Cybersecurity Improvement Act in the United States and the Cybersecurity Act of the European Union. However, these regulations alone are not sufficient to address the multifaceted challenges.
How to boost security in retail
With the increasing variety and quantity of smart devices being implemented in businesses, precise tracking of each one is essential. This visibility detects unauthorized devices and monitors suspicious activities, ensuring merchants can protect their networks against potential threats.
Marcos Oliveira, Country Manager of Palo Alto Networks in Brazil, states that it is essential to use advanced AI and machine learning to detect and prevent possible threats before they can exploit vulnerabilities in devices: “The proactive approach helps reduce the risk of data breaches and ensures that systems remain secure”.
“It is necessary to manage a centralized platform, where robust security policies can be applied to all devices, regardless of the manufacturer or operating system. Similarly, encryption and data protection should be business priorities, as attackers can easily intercept and exploit them”, he concludes.
The potential for digitization and automation in the retail sector is enormous and offers new opportunities for growth and innovation. However, the promise brings significant risks if companies are not adequately protected. As technology evolves, security solutions must keep pace, reducing threats that can compromise the business operations of any organization, regardless of size. Additionally, it is mandatory to ensure the protection of user and customer data. During periods of high commercial activity, such as December celebrations, it is advisable to anticipate and solidly protect oneself.
