2019 Retail C-Suite Viewpoint Survey

Transcription

1 SURVEY INSIGHTS 2019 Retail C-Suite Viewpoint Survey Executive summary highlights from a global survey of 200+ C-suite leaders on key digital transformation imperatives. SPONSORED BY 1

2 Global Research On the C-Suite s Transformation Agenda Incisiv s quantitative survey involved 221 C-suite leaders across continents, industry segments and company sizes to understand digital transformation priorities, challenges and plans. Respondents by format: Respondents by region: 48% 16% 33% Grocery 34% Hardline Respondents by revenue: 32% Softline 20% 16% 2 29% Small 35% Medium 36% Large 250MM - 500MM 500MM - 1B 1B+

3 The Retail Transformation Imperative Modern shoppers demand anytime-anywhere convenience and the C-suite is adapting to offer infinite choice abandoning channel-centric approaches for a holistic view of retail. 3

4 The New Shopping Experience is Digital Digital touches every aspect of today s shopper journey linking online and offline relationships with retailers and brands. 75% of retail store visits today are influenced by digital channels 1. 58% of all retail sales by 2019 will be influenced by digital channels 1. The C-Suite recognizes the current metrics are broken and sales by channel and same-store sales growth limit their view. Executives are ready for a new approach to measuring performance prioritizing relationships over transactions. New business KPIs the C-Suite plans to track over the next 24 months: #1 Digital influenced store sales. #2 Customer time in stores Incisiv BRP-Windstream Consumer Shopping Study 2018

5 Infinite Customer Choice The Anywhere Shelf The C-suite plans to aggressively expand fulfillment capabilities to offer a full spectrum of options across every channel. Today: A natural fit Today, each retail format has a natural fit for what s most important guiding current capabilities. Tomorrow: Infinite choice Over the next 24 months, all formats will offer multiple fulfillment options to meet customer expectations. % who currently offer, by format: % who plan to offer in 24 months: Hardline Softline Grocery 57% 42% 28% 79% 80% 75% 5 Ship from store. Pick up in store. Delivery using third party services. Ship from store. Pick up in store. Delivery using third party services.

6 The Retail Transformation Challenge The mandate is clear, but the C-Suite is more focused on execution, chiefly customer experience and the supply chain. 6

7 Retailers Everywhere Aren t Ready for The Anywhere Shelf While retailers plan to expand fulfillment options for infinite choice, current supply chain capabilities are severely underprepared. 55% retailers don t have a single view of inventory across channels. 78% retailers don t have a real-time view of inventory across channels. 50% retailers believe supply chain capabilities are behind sans the right platforms and tools for a unified commerce environment. 7

8 Customer Experience and Supply Chain Maturity Demands Edge Technologies The retail C-suite is questioning the maturity of their customer experience and supply chain. Technology effectiveness drives digital maturity. In the survey s independent quantitative and qualitative probes, the C-Suite consistently validated the importance of the right technology to empower key business functions. Executives who rated their technology as being more effective also reported higher maturity of the related business function. 8

9 Emerging Technologies Have the Broadest Business Impact The C-suite sees AI, connected devices and voice recognition having the broadest business impact on productivity, operational efficiency, agility and customer experience. Top technologies with wide business impact: Current adoption: #1 Artificial Intelligence / Machine Learning 12% #2 Connected Devices 17% #3 Voice Recognition 4% 9

10 A New Hiring Frontier in The Gig Economy Talent is a key challenge for the C-suite evolving macro conditions and changing work conditions bring new obstacles. Lack of talent is a top-3 challenge for C-suite demanding strategic intervention. 45% view attracting the millennial workforce as a top-3 challenge. Top concerns for managing associates: 54% 35% 30% 10 supporting rising wage rates. compliance to federal and local laws. hiring in the gig economy.

11 Dated Technology Holding Data Insights Hostage While all key priorities revolve around using customer data to enhance experience, retailers still do not have a single source of truth or the human capital to fuel insights. 50% are unable to integrate data from multiple sources. 45% struggle with limited resources who can navigate output of analytics tools. 46% state data is of poor quality and lacks trust from business leaders. 44% admit to the lack of a clearly articulated analytics strategy. 11

12 The Retail Transformation Roadmap: Cloud and AI Will Drive the Intelligent Enterprise Retailers need to look at agility, intelligence and automation to incrementally evolve to the Intelligent Enterprise. 12

13 Changing the Way Businesses Think About Transformation The C-suite no longer has time for multi-year transformations. Ready to invest, executives demand targeted, high-impact strategies to navigate their top transformation challenges: #1 Balancing short term financial goals against long term transformation goals. #2 Resistance to change in the organization. 48% 41% 13

14 Cloud and AI are Positioned to Fuel Intelligent Enterprise The C-suite sees the cloud having more than 2x the impact on business agility than any other technology. 14 The C-suite is planning a 5x increase in artificial intelligence adoption over next 2 years.

15 Cloud is Setting a New Standard for Business Agility With business agility as a C-suite imperative in the digital age, cloud-based solutions are now an integral part of the IT architecture. 78% retailers already use cloud. 92% will use cloud by Top benefits of cloud: 64% 57% 53% 15 ability to adapt quickly to new business needs. faster time-to-market. reduced cost of ownership (TCO).

16 Supply Chain and Store Systems are Positioned for Growth Cloud-based solutions are used across functions, with ecommerce and marketing leading the pack while supply chain and store systems have tremendous room for growth. Status of adoption of cloud or SaaS based solutions, by function: Online / ecommerce Marketing Merchandising Store Systems Supply Chain Exclusively (-100%) Extensively (-75%) Half (-50%) Some (-25%) No Adoption 16

17 The C-Suite is Ready to Experiment with AI AI has the highest rate of pilots and expected adoption among a set of 8 emerging technologies. Top AI use-cases where C-Suite sees the highest impact: CUSTOMER EXPERIENCE 36% personalize product recommendations. 20% localize / personalize pricing. MERCHANDISING 50% boost promotional performance. 29% improve product assortment. 17 SUPPLY CHAIN 35% advance demand forecasting. 50% sharpen inventory levels. STORE OPERATIONS 39% enhance labor scheduling.

18 Talk to us to dig deeper. SPONSORED BY Incisiv offers digital transformation insights to consumer industry executives navigating digital disruption. JDA Software is the leading supply chain provider powering today s digital transformation. We help companies optimize delivery to customers by enabling them to predict and shape demand, fulfill faster and more intelligently, and improve customer experiences and loyalty. Learn more about JDA: jda.com/retail Microsoft enables retailers to deliver personal, seamless, and differentiated customer experiences by empowering people, enabling digital transformation, and capturing data-based insights to drive growth. Learn more about intelligent retail at: microsoft.com/retail 18 Copyright 2019 Incisiv Inc