GEC NEWS WIREThe multi-channel shopper is fueling a wave of digital disruption that threatens to put nearly half of retailer leaders out of business if they don’t transform themselves digitally. A new research report released today by Cisco, “Reinventing Retail: Cisco Reveals How Stores Can Surge Ahead on the Digital Transformation Journey” reveals that despite the risks, retailers around the world are moving too slowly when it comes to digital transformation and may not be investing in the right places. The holiday season’s choppy sales report and the recent closing of big box stores is just the beginning.
“The shakeup caused by digital disruption is already underway with many major retailers announcing the closure of hundreds of their brick and mortar stores in recent months, in order to better compete in a landscape where physical and digital channels are increasingly converging,” said Mike Weston, Vice President, Cisco Middle East. “Yet, there remains a tremendous opportunity, with the potential for retailers to generate more than $506 billion in value that can be achieved through digital transformation. Retailers need to make more progress in digitizing their workforce and their core operations in order to execute on the innovative customer experiences they want to deliver, and to position themselves for success in the new retail landscape.”
In an effort to help retailers achieve digital transformation, Cisco previously released a “A Roadmap to Digital Value in the Retail Industry,” which guides retailers through three phases: (1) Enable digital capabilities, (2) Differentiate their brand through new digital capabilities, and (3) Define new business models through digital disruption.
Key Highlights of the research were;
Retailers are stuck in the early phase of the digital roadmap; Retailers are missing a $187 billion opportunity by not prioritizing investments in Employee Productivity; Retailers are not investing enough in the areas that create competitive differentiation and new revenue streams; Retailers are investing too much in customer experience.
