2011 | ISSUE #4

Shopping in the Digital Age Technology Drives Complexity of Essential Skills

Shireen enters a Canadian Tire store with a single mission: to find a new

dishwasher detergent. Dissatisfied with her previous brand, Shireen is looking for a more powerful cleaner.

Prior to shopping, she uses Canadian Tire’s website to research available products, features, pricing, and customer reviews. Coming into the store, Shireen knows that two products will meet her needs and that they are available at this location.

Once in the cleaning products aisle, Shireen finds the two products. Undecided, she takes out her iPhone, downloads the Canadian Tire app in less than a minute, and uses it to scan the Universal Product Code (UPC) barcodes of both products.

The scanning reveals that a fellow consumer has just posted a product review. He found it was superior to all other brands in handling caked-on food, exactly her issue. Then Shireen quickly checks a price comparison app on her smartphone and finds that Canadian Tire has the lowest price. Grabbing the detergent, Shireen heads to the self-serve checkout with her debit card.

* * *

Canadian Tire is just one of many retailers that have embraced advancing technology. It first implemented self-serve checkouts in 2006 and they are now available at over 100 of its 487 stores across Canada. The top consumer reason for these checkouts: to place the consumers in complete control of their own purchasing experience. The top operational reason for this new technology: efficiency.

continued on page 2

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Self-serve checkouts offer customers more control over their purchasing experience.

ContentsProblem Solving in Technology-Rich Environments .................................. Page 3Speaking Smartphone ........................ Page 4Essential Skills for Customers ............ Page 6Essential Skills for Cashiers ............... Page 7

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Adoption of self-serve technology is likely to mimic the adoption of self-serve gas stations in the 1970’s and bank machines in the 1980’s – most consumers will transition to the new technology. Employees of stores, airlines, literacy service providers, and Employment Ontario offices must continuously learn new technologies and new customer service strategies in order to keep up with changing consumer demands. Self-serve checkouts are just one way that technology is advancing.

Canadian Tire also has mobile barcodes that can be accessed using any smartphone, another increasingly popular new technology. While only 31% of Canadians currently own smartphones, that percentage has increased more than 50% from last year, according to the May 2011 Ipsos Inter@active Reid Report. More significantly, Canadians are using their smartphones actively for an average of 17.3 hours per week, vying with television viewing and internet browsing.

While some may think that these new technologies may go the way of the 8-track music player, the Technology Committee of the Retail Council of Canada found that “Retailing continues to become an increasingly technology intensive industry

[…] Because of this, customers expect more, demand more, and will reward the retailers who meet and exceed their expectations.” In 2008, the Canadian retail sector spent $1.6 billion in technology, more than both the Canadian manufacturing sector and the U.S. retail sector spent. The driving factors are cost reduction and increased customer service.

Statistics also indicate that technology is becoming increasingly mainstream in our lives. According to Empathica, within the past year 39% of Canadians and Americans have used retail new technology, regardless of their age. Of these, their experiences included self-checkout (86.3%), online shopping (80.4%), price check scanners (75.2%), and mobile phones (44%). These numbers will continue to grow rapidly, as more retailers adopt these new technologies.

While Canadian Tire is at the forefront of retail technology adoption, others are not far behind. For example, self-serve checkouts in North America are expected to triple by 2014 according to a study by Retail Banking Research Ltd. They are already prevalent at Loblaws/A&P grocery stores, Ikea, and Walmart – some of the largest retail chains in North America. The technology can also be adapted and cost efficient for independent stores.

And retail is not the only industry offering customers the ability to serve themselves. Self-service kiosks are equally popular in hospitality, healthcare, travel, government, and non profit. For example, the Toronto Public Library has just implemented self-serve checkout for borrowing library materials.

As technology continues to advance, organizations and businesses must align themselves with new practices and supply their staff with the appropriate training in order to keep up with consumer expectations. Change is inevitable, and the need to continuously adopt to new methods is only increasing.

For further information visitIpsos Inter@active Reid, May 2011 report:ipsos-na.com/news-polls/pressrelease.aspx?id=5246

Retail Council of Canada - Technology Committee, 2010 report:www.retailcouncil.org/training/research/industry/2010_RCC_Retail_Tech_Exec_Summary.pdf

Retail Council of Canada and Industry Canada, 2010 State of Retail report:www.ic.gc.ca/eic/site/retra-comde.nsf/vwapj/qn00001_eng.pdf/$file/qn00001_eng.pdf

Empathica Consumer Insights Panel on Retailer Technology, January 2011 report:www.empathica.com/1-10-11_InsightsRetailerTechnology.html

Retail Banking Research Ltd., Global EPOS and Self-Checkout 2009 study:www.selfserviceworld.com/article/160994/New-study-says-self-checkout-terminals-to-quadruple-by-2014

Essential Skills Profile for Cashier (NOC 6611): www.hrsdc.gc.ca/eng/workplaceskills/LES/tools_resources/NOC/cashiers.shtml

It was only three years ago that cashiers used cash registers. Now customers have the option of checking out on their own, with one attendant overseeing the process for up to four customers.

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Problem Solving in Technology-Rich EnvironmentsWhere do humans fit into a

computerized world and how do computers change our ability to participate in society and work? To answer these questions, economists Frank Levy and Richard J. Murnane pose four subsequent questions:

1. What kinds of tasks do humans perform better than computers?

2. What kinds of tasks do computers perform better than humans?

3. In an increasingly computerized world, what well-paid work is left for people to do now and in the future?

4. How can people learn the skills to do this work?

Technology is based on the use of well-defined rules. Routine tasks are increasingly being performed by computers and other electronic equipment, leaving people with tasks that require more developed thinking skills including:

• problem solving;• decision making;• critical thinking;• job task planning and organizing;• significant use of memory; and• finding information.

Programme for the International Assessment of Adult Competencies (PIAAC) recognizes this relationship between technology and thinking skills, and has created a framework for problem solving in technology-rich environments (PS-TRE).

PS-TRE is about how people solve the type of problems that they encounter when using information and communication technologies. It includes “problems where the existence of the problem is a consequence of the availability of new technologies, where the solution requires the use of

computer-based applications or where the problem relates to the management or use of information technologies,” according to PIAAC.

Consider the advanced thinking skills required to be a customer or a self-serve checkout attendant in light of the three core dimensions of PS-TRE: task, technologies, and cognition. While at first it appears that technologies are merely an added dimension, their impact on tasks and cognition should not be underestimated.

Tasks have become more complex and multi-tasking is now the norm. Talking to a customer and ringing in their purchases used to be considered multi-tasking for a cashier. Now monitoring four self-serve checkouts at once, anticipating potential issues for each, talking to a customer and using technology to resolve any issues

while acknowledging another customer are all just part of everyday work for a self-serve checkout attendant.

Technologies have also become more complex, both in the increasing amount of them and in the increase in what they can do. Instead of just a cash register, the self-serve checkout has many features, and now the customer is the primary user. The customer can also use a smartphone, the Internet, and an in-store price scanner. The checkout attendant must not only know how to use all these technologies, but must also be able to help the customer troubleshoot problems encountered when using the technologies.

Finally, cognition skills requirements have also increased. Computers can easily resolve routine problems, like calculating taxes and giving the correct amount of change. Attendants and

PIAAC is the third international survey that measures levels of adult literacy within a country. Its predecessors are International Adult Literacy Survey (IALS) and the Adult Literacy and Lifeskills Survey (ALL). PIAAC Surveys are currently taking place, with results expected in 2013.

Three core dimensions of problem solving in technology-rich environments

Task/problem statementElements of a situation that trigger

and condition problem solving (e.g., directions).

TechnologiesThe devices, applications and

functionalities through which problem solving is conducted.

Cognitive dimensionsThe mental structures and processes by which a person actually performs

problem solving.

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customers are then left with non-routine problems that require deeper thinking skills.

For example, if the barcode scanned does not reflect the correct product and/or price, the customer has to recognize the problem and alert the attendant. The attendant then must use their best judgment to determine and attempt alternative strategies to address the problem. Both individuals are exercising expert thinking and complex communications skills — the two skills that are mandatory in our technological world as described in depth by Levy and Murnane.

* * *

People not only still matter, but they matter even more in a digital world, for three main reasons: 1) technology is a tool to facilitate human needs – it exists to serve us; 2) complex problems cannot be solved solely through a set of rules; and 3) humans are the ones creating the rules performed by

technology. All these factors suggest a heightened need for developing thinking skills that will allow people to function in society and in well-paid jobs.

More InformationPIAAC Framework for Problem Solving in Technology-Rich Environments www.oecd.org/officialdocuments/displaydocumentpdf/?cote=edu/wkp%282009%2915&doclanguage=en

The New Division of Labor: How Computers Are Creating the Next Job Market a book by Frank Levy and Richard J. Murnane

Google Effects on Memory: Cognitive Consequences of Having Information at Our Fingertips news.columbia.edu/research/2490

Speaking SmartphoneA

smartphone is simply a cell phone with additional

functionalities including organization (calendar, contacts, to-do lists), web browser, email, instant messaging, camera, video, and music player. Functionalities differ depending on the specific smartphone model.

Given the complexity of these new machines, technologies and terminologies can get confusing. Any computer device has two parts that make it work: hardware and software. Hardware is the easiest – it is the physical part that you can touch. In the case of smartphones, the phones themselves are the hardware. Other hardware examples are computers and laptops, debit/credit card machines, tablets, self-serve check-outs, GPS machines, and the handheld devices couriers use to receive and deliver packages.

Software is not physical; you cannot touch it. It is the set of

instructions that makes the hardware work. There are two types of software: operating systems and applications. An operating system, sometimes called a platform, is the software that makes the hardware work at a basic level, allowing the hardware device to be turned on and off, for example.

Shireen Rangwala scans the Universal Product Code (UPC) barcode of a dishwasher detergent to find customer reviews.

Scan this Quick Response (QR) barcode using a barcode scanner app on your smartphone or tablet to view this issue of The Essential Skills Bulletin.

For a barcode scanner app or to create your own QR barcodes for free, try qrcode.kaywa.com.

QR Barcodes in Action

The ESSENTIALSKILLS Bulletin | 2011 | Issue #4 | 5

Smartphone ExamplesSmartphone (Hardware)

Operating System (OS) or Platform

OS Manufacturer

Comments

iPhone iOS Apple Apple’s hardware and operating system are proprietary and work only with one another. iOS also runs iPad (a tablet), and iPod (a music player).

Blackberry Blackberry OS; Blackberry 7 coming soon

Research in Motion (RIM)

RIM’s smartphone hardware and operating system are proprietary and work only with one another.

Many smartphones (e.g. HTC, Samsung, LG, Motorola, Sony Ericsson) – often referred to as “Android phones”.

Android Google, with partners

Android is currently the most popular platform, with 35% of worldwide smartphone operating system market share in the first quarter of 2011. It runs on almost any brand of smartphone, but not on iPhone or Blackberry.

Many smartphones, (e.g. HTC, Samsung, LG, and Dell) – often referred to as “Windows phones”. Recent significant addition: Nokia.

Windows Phone 7; Mango (Windows Phone 7.5) coming soon

Microsoft With Nokia’s first Windows Phone set to launch in October 2011, Microsoft is poised to gain smartphone OS market share (Nokia has 31% of smartphone hardware market share). Windows runs on almost any brand of smartphone, but not on iPhone or Blackberry.

Finally, the applications are also software (non physical), but they perform specific tasks for a user. These are often called “apps” for short. Some examples are: use GPS (Global Positioning System) to get directions to a friend’s house, read barcodes for product information, play games, find out tomorrow’s weather, and watch television. Most apps are available on multiple platforms.

Many traditional computer software applications have been adapted for the smartphone, such as Microsoft

Word, Excel, and Skype. Other smartphone apps are websites that have been adapted to work better on the smartphone medium, such as Facebook and GoogleMaps.

The smartphone is just another type of computer that is becoming increasingly more powerful than a traditional desktop or laptop device in terms of capabilities and also in terms of convenience to the user – carrying something in your pocket or purse that weighs a few hundred grams is far more practical than lugging around a laptop.

More InformationSmartphoneswww.smartphonebasics.com

Canadians’ usage of smartphonescomscore.com/Press_Events/Press_Releases/2011/6/comScore_Launches_Mobile_Measurement_in_Canada

Canadians’ smartphone behaviour copernicusconsulting.net/handset-life-smartphone-upgrades

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Essential Skill

Prior to New Technologies

Since New Technologies Change in Essential Skills Required Due to Technology

Document Use

Customers read flyers to know what is on sale or featured. Read flyers of competitors to compare prices. Read receipts to ensure no price errors.

Still read flyers in print, but now have the options of online flyers and of finding out about a specific product using a computer or a smartphone. Read self-serve checkout machine to operate it and ensure their purchases are correct.

• From one to three media available for accessing flyers.

• From little product information available, to online availability prior to visiting the store and at the store.

• From reading paper receipt after the sale is complete, to reading checkout machines for operation and accuracy of purchases during checkout process.

Numeracy Estimate how much total bill will be, provide enough money or a credit card to pay for it, ensure correct amount of change has been received (if cash used).

Check total bill accurateness by reading it on the screen. Provide cash and ensure correct amount of change has been received, or use debit/credit card and ensure correct amount is being billed.

Now solely responsible for ensuring bill is correct, change is correct or correct amount is billed to debit or credit card.

Oral Com-munication

Greet cashier. Provide payment when asked. Receive change. Voice any concerns after receiving and reading receipt.

If an issue occurs, consult with self-serve check-out attendant to resolve.

From waiting for transaction to occur to a more active process of communicating with cashier/attendant if problems encountered.

Working with Others

Bring issues such as pricing to the attention of the cashier and wait for resolution.

Work with cashier/attendant to resolve issues, and learn how to use the appropriate technology to do so.

From a passive role to a more active role working with the cashier/attendant to resolve problems.

Thinking Skills

Product knowledge based on word-of-mouth from friends and family. Critical thinking skills to analyze and decide which product(s) and service(s) best meet needs. Problem identification to cashier.

Finding information about products using websites and smartphone, analyzing the information against own criteria to choose best product(s)/service(s). Problem-solving with cashier/attendant. If paying by debit, ensure accounts/PINs/balances are known so that transaction will be successful.

• Finding information using other sources (e.g. websites and smartphone apps).

• Critical thinking about own needs, criteria, and which product(s) and service(s) best meet them.

• Significant use of memory to remember card PINs and current balances of bank accounts to ensure enough money available.

Computer Use

None. Self checkout. Use websites and smartphones to gain more information about a product and coupons. Use smartphone coupons at self-serve checkout.

• From no computer use to a user/super user of computers, smartphones and self-serve checkouts.

• Using more than one technology device at a time or combining their use.

Continuous Learning

Very little. Continuous learning of new technologies (e.g. self-serve checkouts, websites, and smartphones).

From no requirement to continuous learning of new technologies.

Essential Skills for CustomersWhat does living in the Technology Age mean to essential skills? Consider how the essential skills required to function in our society have changed with the proliferation of technology. These are some examples of how being a customer has changed:

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In addition to a major skills shift for customers, the position currently known as cashier but increasingly as checkout attendant, has incurred some radical changes. The skills training focus of retail operational jobs lies in the following areas:

• customer service;• merchandising;

• product safety;• material handling;• order management; and• sustainability.

Essential skills training should use these contexts to create programming and instruction that are applicable to the daily work of individuals. In addition,

keep in mind that the most important essential skills for a cashier (NOC 6611) are document use, numeracy, and oral communication. The following table lists some examples of how the essential skills requirements of a cashier have changed with new technologies:

Essential Skill

Prior to New Technologies

Since New Technologies Change in Essential Skills Required Due to Technology

Reading Very little prose (sentences and paragraphs), mostly document use.

More reading required as more product information becomes available online including customer reviews, and magazine/newspaper article reviews.

More reading than before as product information (details and consumer reviews) become available online.

Writing Shopping lists, questions for store.

Same but fewer questions as most information now available online. Shopping lists and questions may also be created on smartphones. Writing product reviews online.

• Same writing but less questions, more shopping list info and product reviews.

• Can be done on smartphones or on websites.

Essential Skills for Cashiers

Essential Skill

Prior to New Technologies

Since New Technologies Change in Essential Skills Required Due to Technology

Document Use

Read flyers to know what is on sale or featured. Read printout to balance cash.

Read flyers online. Read computer to balance cash. Monitor computer screen to assist up to four customers as required. Check store(s) inventory for product availability. Check competitors’ prices online.

• From checking out customers to monitoring the checkout of and assisting up to four customers.

• From asking a co-worker to checking store(s) inventory and competitors’ prices online.

Numeracy Receive payments from customers and make change. Balance cash against cash register printout.

Troubleshoot pricing, customer payments, and change issues. Payments are performed by the customer directly and include cash, debit or credit. Balance cash against computer printout.

From handling customer payment and making change to monitoring up to four customers making their own payments.

Oral Com-munication

Greet single customer, ask for payment. Speak with customer about competitors’ prices. Call co-workers for store(s) inventory, pricing, and other issues.

Greet up to four customers, provide any required assistance for up to four customers.

• From one to up to four customers at once.• Providing more complex information to

customers re: products, inventory, prices, technology issues.

• Less interaction with co-workers about pricing and inventory since information now online.

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Essential Skill

Prior to New Technologies

Since New Technologies Change in Essential Skills Required Due to Technology

Working with Others

Interact with co-workers to resolve customer issues such as price checking and product availability at other stores.

Interact with up to four customers and use the computer system to resolve customer issues.

From escalating customer issues to a co-worker, to resolving them independently using online sources.

Thinking Skills

Problem solve customer issues/complaints. Problem solve if cash does not balance at the end of a shift.

Same problem solving skills required, but now most of the customer issues are around the use of the self-serve checkout. Some job task organization in monitoring up to four customers at once.

• Problem solving now focused around use of the self-serve checkouts.

• From little or no job task organization to ensuring can service up to four customers at once.

Computer Use

Use checkout machine. Monitoring up to four customers using self-serve check-out machines, and troubleshooting issues. Check competitors’ prices online. Check other store(s) for product availability online.

• From computer user to computer coach/ trouble-shooter.

• From asking co-workers to checking inventory and price information online.

Continuous Learning

Learn about new equipment, procedures, policies, products, and services. Learning occurs primarily through on-site training and co-workers.

Same learning topics and means, but more learning required than previously - not just about products and customer service, but also about new technologies.

• Increased requirement for continuous learning.

• Continuous learning emphasis on new technologies and customer service skills.

Reading Internal policies, procedures, and memos about changes.

Still reading these materials, but they are now also available online. Some streamlining due to technology, new materials added due to technology.

• Materials available in print and online.• Some materials complex less and some

more complex.

Writing Very little writing required, perhaps a note to cashier on next shift.

Same. Not much change.

For comments and inquiries, please contact: Ontario Literacy Coalition (OLC)

Telephone: 416.963.5787 | Email: olc@on.literacy.ca | Website: www.on.literacy.ca

Advisory CommitteeValerie Currie, Fanshawe College, Woodstock Campus

Jacqueline Gibson, YMCA of Greater Toronto Lesley Hamilton | John Mitteregger, Job Skills

Wendy Olson, Dryden Literacy AssociationSam Sanfilippo, Assessor, Learner Support Worker