Ice cream sales are notoriously dependent on weather conditions. Six years ago De IJsMaker was established in Rotterdam to address the need for reasonably priced, superior ice cream. The brand is currently growing quickly and intends to go national. This success is primarily attributable to creative digital transformation and data-driven decision-making, using digital tools to streamline operations.
As it expanded, De IJsMaker ran into operational difficulties. In order to optimize staffing and inventory, the owner used the Cohelion Data Platform to analyze sales, weather forecasts, and local events. employing digital business models, where increasing customer satisfaction and efficiency is greatly aided by data analytics. To ensure they have the right inventory and personnel on hand, their Flavor Predictor tool, for example, uses weather and historical data to forecast which flavors will sell best on a particular day.
Even though De IJsMaker makes good use of data analytics, ice cream shops could benefit even more from the integration of AI and machine learning. To produce even more accurate forecasts, AI might examine more complex data patterns, such as social media trends and consumer behavior. This use of AI is related to the value that businesses can derive from information goods. AI might, for instance, improve dynamic pricing, provide promotions based on demand in real time, or make tailored flavor recommendations at shops to improve the user experience. Furthermore, research has demonstrated that conversational AI like chatbots for online ordering and reservations can greatly increase both operational effectiveness and customer satisfaction.
Expanding into AI does however come with challenges. It requires significant investment and technical expertise. However, as seen with their self-service kiosks, even incremental changes can greatly improve efficiency and sales. The potential for AI to further personalize and streamline operations is promising, but it needs careful implementation.
In my opinion the IJsMaker’s journey highlights the power of data in transforming a small business. The potential for AI in this context is exciting, offering a way to enhance customer experiences and operational efficiency. However, it raises questions about the balance between investment and return, especially for smaller businesses. Could the integration of AI in small businesses like De IJsMaker be a feasible and beneficial step? How might customers feel about their buying patterns being used to enhance their experience?
References:
Conversational AI in Restaurants Case Study: How AI Is Transforming the Dining Experience. (2023, November 29). Pragmatic. https://www.pragmatic.digital/blog/conversational-ai-in-restaurants-case-study-how-ai-is-transforming-the-dining-experience
Gawkowski, E. (2024, July 8). AI in Restaurants: 10 Tips on How to Boost Your Restaurant with AI | UpMenu. UpMenu. https://www.upmenu.com/blog/ai-restaurant/
Suurenbroek, H. (2024, July 2). Read De IJsmaker case study and learn what they gained. Cohelion • Data Management and Integration Platform. https://cohelion.com/other-industries/de-ijsmaker/
This is a great article! I especially like how it relates a business that is typically local and traditional (ice cream shops) with digital optimization and transformation, opening possibilities for it to go national. This is a great reminder that digital transformation is not confined to big enterprises with lots of data; even small businesses can leverage technology to overcome operational challenges.
I also agree that there is a big concern related to the cost/benefit of incorporating AI in small businesses, and even its ethics. But it’s exciting to see how incremental changes, like the implementation of self-service kiosks, can make a significant impact. It raises important questions about balancing technological investments with maintaining the authenticity and personal touch that customers love about small businesses.
I also think it’s important to consider how customers might feel about AI predicting their preferences and whether this enhances their experience or feels intrusive. Overall, this article is a fantastic look into the future of small business innovation, showing that even the most traditional sectors can benefit from embracing new technologies!
In my view, in most cases it is very interesting for small businesses to start focusing more on using data analytics and AI. In a lot of companies, there is a lot of untapped data that could actually include valuable information. This is often due to the use of tools that do not have a central data source as is often the case with Excel, for example. For customers, this application will be much a very pleasant change. It will make them even more responsive to their needs. In addition, customers will not notice anything using, say, patterns because actually their experience improves. I hope small businesses will focus more on the use of AI and data in the coming years because there is still a lot to be gained in this for these types of businesses.