Since the pandemic, the retail sector has witnessed an unprecedented boom. As the world recovers from the economic standstill, the industry has come out with a significant transformation in the way companies operate; however, those limited to their traditional brick-and-mortar model have been forced to go online due to rising inflation and operational costs of business. 
As Pakistani businesses gear up for digital practices, they need to resort to a network of physical items, or “things,” that are implanted with sensors, software, and other technologies to communicate and exchange data with other devices and systems through the internet, which is in its eventuality referred to as the “Internet of Things” (IoT). According to experts, by 2020, there were nearly 10 billion connected IoT devices. However, by 2025 this number will go as high as 22 billion.
In this digital age, the Internet of Things (IoT) is driving significant and positive change in a variety of businesses and verticals. IoT has undoubtedly become important to raise productivity and improve people’s lives all around the world, and as a result, businesses must shift course and adapt to technological changes to be relevant, competitive, and profitable.
How is the dynamic changing locally?
The supply chain for any sector has always faced criticism due to its lack of optimization, but since 2020, we have witnessed the acceptance of IoT solutions to enhance efficiency in our logistics and distribution segment. The emergence of online platforms for both B2B and B2C segments has resulted in the evolution of consumer purchasing behavior and businesses are establishing themselves online, and the concept of Quick Commerce has taken shape in Pakistan. 
With the rising population and digital retail consumption, companies such as KistPay have launched schemes for mobile phones valued between Rs 10,000 and Rs 100,000 that can be purchased in 3 to 12-month instalment plans with a 20 to 30 percent down payment, indicating the rising demand for smartphones and how the market will eventually require a heavy investment in IoT solutions.
What needs to be 
addressed for a brighter economic future?
The emphasis on optimizing our current businesses and how IoT solutions will help retailers and associated businesses reduce operational costs while enhancing customer experience. As businesses seek to gear up for efficient practices, the reliance on foreign expertise and technology needs to diminish. If companies intend to export and increase margins, the need to collaborate with local IoT solution providers is paramount. 
We recently approached Harris Jamali, the newly appointed CEO of TPL Trakker Ltd., on how data-driven solutions are key to redefining the retail space in Pakistan. He stated, “Retailers and businesses alike must take this digital transformation seriously as we are all part of a connected supply chain where we need to work closely to simplify the ever increasing complexity of our collective environment. With unprecedented macro headwinds likely to persist across the globe, only those who embrace the power of technology and data to control their destiny will triumph. This requires companies to part with outdated legacy practices driving inefficient costs across the ecosystem and usher in a new era of investment in both time and money towards a sustainable and digital future.”
As TPLT aims to revolutionize the enabling environment with data-driven solutions, they are currently providing a wide range of services, from dispatch solutions to vehicle and goods tracking, providing predictive solutions to around fuel usage via Gen-Set Solutions and fleet sensors, or optimizing driver behavior via fleet management systems, all of which add to a more efficient supply chain and give businesses the edge to provide a competitive price to respective customers. “An intelligent business today is seeking a sustainable and digital edge,” Jamali added. “We should focus on transitioning our people towards future needs by equipping them with the tools and trainings to survive in this modern world and this course correction and investment is the responsibility of all employers. As location-based services allow movement of physical and human capital more seamlessly it will continue to facilitate and optimize supply chains across startups, SMEs, and major corporates. This efficient and sustainable allocation of limited resources will allow us all to serve our customers better each day.”
A tech-driven ecosystem
Innovation in retail ecosystems is usually overlooked since product innovation has received almost all the attention from existing businesses and startups. Pakistan earned a whopping $5.7 billion in revenue in 2021, contributing to the global growth rate of 15% in the same year. Between 2021 and 2025, and with an annual growth rate of 7%, Pakistan is even expected to outperform the global average by 6%. This growth is a result of various factors, i.e., technological transformation, e-commerce infrastructure, logistical improvements, and socio-cultural demands, which have led to a spike in online shopping.
However, the new partnerships in the retail ecosystem can prove to be very important since retailers sometimes offer the same products or very similar ones as their competitors. Consequently, they need to differentiate based on value delivery activities and functionalities. “In this age of digital transparency and data overload, businesses who invest in smarter and more focused analytics across their value chain will deliver real value to the end consumer.”Jamali added. Collaborating with other players in the ecosystem helps retailers with increased production levels and enhances access to market segments. This eventually leads to economies of scale and an improvement in the revenue model. IoT implementation can result in the development of new revenue streams for retail companies.

— The writer is a 
business consultant and can be reached at omar.saeed1971@yahoo.com.