Discovering the benefits of digitization and the data it produces in a 1980 supermarket.
Observing over the course of four decades how the world learned to speak in gigabytes and terabytes, I have experienced first-hand the evolution of the business of technology, the changing attitudes towards digitization, and the proliferation of data and its uses....
No other barcode scanning system existed in Israel at the time and there were no barcodes on any product, but the CEO,, wanted to demonstrate to Israeli consumer goods manufacturers and retailers the benefits of adopting universal product codes .I was hired to babysit the new computer system and integrate it with the daily activities of the supermarket. In late 1980, supermarket barcode scanning systems were a novelty even in the country where they were first introduced in 1974—only 10% of U.S.
Even more important was what I learned about computers and data and the humans using them. A supermarket scanning system was , similar to any computer installed in any type of environment: It is a data collection machine. As often happens with pioneering efforts, this exercise in data analysis did not have any practical implications, as the management of the supermarket chain was not interested in data-driven decisions. The manufacturers of such systems at the time mostly talked about the potential reduction in employee pilferage as their key benefit.
One obvious potential benefit of a supermarket scanning system was in managing inventory and planning the amount of space dedicated to each item. That was yet another important aspect of supermarket operations that used to be based on experience and intuition, and, when intuition failed, by observing and recognizing the complete emptiness of storage bins and shelves.
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