The grey eminence of retail: Why innovation starts in back-end systems

Artificial intelligence (AI), automation, and retail media are dominating the conversation—and for good reason. But the truth is, without a solid foundation in back-end systems, the entire business grinds to a halt.

At this year’s Retail Arena, hosted by Dagens Industri in Stockholm, I sat down with Simon Skoog, Chief AI Officer at Apotea, to explore how AI and cloud strategies must be rooted in the business itself—not just in the IT department.

Simon captured it perfectly: “Technology for the sake of business, not for the sake of technology.” This mindset is the driving force behind Apotea’s success—a seamless alignment of strategy, technology, and business value.

From strategy to real value

Apotea has achieved what many aspire to but few accomplish: seamlessly integrating AI into the core of their business.

Their success is grounded in three essential principles:

1. Business anchoring: Every AI initiative is directly linked to the company’s strategy and goals, with leadership involved early on.
2. Early wins: Begin with small, manageable projects that demonstrate clear value and pave the way for the next.
3. Right competence: Invest in top talent and build a strong in-house AI team that delivers real results—not just talk.

A tangible example is Apotea’s AI-driven assortment planning, which uses data to keep the right products in stock at the right time. It might not be flashy, but this practical application is where genuine business value is created.

Retail media, AI, and the comeback of the physical store

Throughout the day, discussions spanned retail media and the surprising renaissance of the physical store. Today, many view the store as a vital meeting place, one that must seamlessly integrate with e-commerce. With generative AI transforming how consumers search and shop, the boundaries between channels are rapidly fading.
Yet whether it’s digital screens in-store or advanced algorithms in the cloud, one truth remains: Without accurate inventory and smooth data flow, no amount of front-end innovation can deliver real results.

The grey eminence of retail

Wearing a deliberately grey suit, I coined the term “the grey eminence of retail” to describe Infor™.
We may not always be visible, but we ensure the entire organization functions smoothly. Like the skeleton and bloodstream, we’re unseen yet essential for everything to work.
Everything customers and employees experience on the surface—AI tools, digital signage, and personalized campaigns—depends on solid back-end systems. That’s where we create real value: in the invisible infrastructure that makes everything else possible.

From sleepwalkers to strategists

It’s easy to blindly adopt new technology or “move to the cloud” just because others are doing it. True success, however, comes from aligning technology with strategy, culture, and capabilities.

As Peter Muld, Chief Information Officer (CIO) at ICA Gruppen, emphasized, it’s not about layering technology onto outdated business models. Instead, it’s about creating a foundation for innovation where AI naturally drives business growth and development.

Where real innovation begins
Retail is evolving faster than ever, but success isn’t about chasing every new technology wave—it’s about building a solid foundation that lets you ride them effectively. AI, cloud, and automation are powerful tools, but without well-organized back-end systems, they remain technology without traction.

We are the quiet forces behind retail’s success—the “grey eminences” who ensure everything runs smoothly, even when invisible.

For those aiming to lead, it’s not about the next trend; it’s about creating the foundation that makes true innovation possible.

The future of retail begins in the back-end systems, and strengthening that foundation today makes it easier to innovate with confidence as the industry evolves.