Retail Transformation Study How Retail Leaders Are...

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Retail Transformation Study How Retail Leaders Are Redefining IT and Transforming the Customer Experience

Transcript of Retail Transformation Study How Retail Leaders Are...

Page 1: Retail Transformation Study How Retail Leaders Are ...info.microsoft.com/rs/157-GQE-382/images/Retail_Transformation_Study.pdfHow Retail Leaders Are Redefining IT and Transforming

Retail Transformation Study

How Retail Leaders Are Redefining IT and

Transforming the Customer Experience

Page 2: Retail Transformation Study How Retail Leaders Are ...info.microsoft.com/rs/157-GQE-382/images/Retail_Transformation_Study.pdfHow Retail Leaders Are Redefining IT and Transforming

CONTENTS

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101316 41

Study Highlights

Store Growth / IT Spend Trends

Leaders and IT Investment

Focus on Security

Priorities and Purchase Intentions

How Does One Compete In Today’s Retail Environment

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Study Highlights

Source: IHL Group

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Segment Definitions

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Retailers, Leading and Otherwise

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BUSINESS MARKETINGPRESENTATION SLIDES

Study Details

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Store Growth

Store Count Growth

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IT Spend Growth by Retail Tier

Enterprise IT Spend Store IT Spend

Source: IHL Group

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IT Spend Growth

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2017 Spend Growth

3.8%

5.0%

1.3%1.8%

Leading Retailers Average Retailers Below Average Retailers

Source: IHL Group

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Lack of IT Investment Is Costly

68%

74%

Increased Sales Cost Reductions

Source: IHL Group

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Leaders and IT Spend

Source: IHL Group

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Security Spend By Segment

Non-EMV Spend EMV Spend

Source: IHL Group

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EMV Spend Non-EMV Spend

Leaders vs Others on Security

Source: IHL Group

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Leaders and Security Spending

Source: IHL Group

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BUSINESS MARKETINGPRESENTATION SLIDES

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Top Retail IT Priorities

Source: IHL Group

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Top Priorities of Leaders

Source: IHL Group

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Software IT Spend in Cloud

27%

Store Systems

33%

BI/Analytics

47%

eCom

46%

Sales/Marketing

30%

Core ERP

29%

Merch

25%

Supply Chain

Source: IHL Group

31% increase in percent of software budget in cloud

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Cloud Spend by Retail Tier

Cloud Solution Tier I Tier II & III

E-Commerce 39% 57%

Sales / Marketing 44% 49%

BI / Analytics 33% 33%

Core ERP 28% 33%

Merchandising 37% 22%

Store Systems 20% 40%

Supply Chain 28% 21%

Source: IHL Group

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Digital Signage

POS Software

POS Client - Base System

Up to Date/In Place Within 12 Months 12-24 Months 24-36 Months

Store Systems Purchase Timeframe

Source: IHL Group

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Consumer Mobile Checkout

Mobile POS

Mobile for Associates (non-POS)

Mobile for Managers

Up to Date/In Place Within 12 Months 12-24 Months 24-36 Months

Store Systems Purchase Timeframe

Source: IHL Group

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Store Systems Purchases

For FDC retailers in 2017, their biggest targets for purchase are:

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Source: IHL Group

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Store Systems - Leaders

Source: IHL Group

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Holistic Merch. Across Channels

Click & Collect

Ship from Store

Central Order Management

Return Online Purchases at Store

Up to Date/In Place Within 12 Months 12-24 Months 24-36 Months

Cross-Channel Commerce Timeframe

Source: IHL Group

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Split ticket

Order Inventory at Other Stores

Order Online from POS

Check Inventory at Other Stores

Up to Date/In Place Within 12 Months 12-24 Months 24-36 Months

Cross-Channel Commerce Timeframe

Source: IHL Group

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Cross - Channel Adoption

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Source: IHL Group

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Unified Commerce Leaders

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FDC Fulfillment Outsourcing

Source: IHL Group

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GMS Fulfillment Outsourcing

Source: IHL Group

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Fulfillment Outsourcing by Retailer Class

Source: IHL Group

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Fulfillment Summary

Source: IHL Group

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Key Final Nuggets

Source: IHL Group

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Speaking of Innovation Spend…

Source: IHL Group

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BUSINESS MARKETINGPRESENTATION SLIDES

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To Effectively Compete

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Foundational Technologies

Source: IHL Group and NCR Studies

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Technologies That Move The Needle

Source: IHL Group and NCR Studies

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BUSINESS MARKETINGPRESENTATION SLIDES

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Respondents by Retail Segment

Retail Segments

Source: IHL Group

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Respondents by Job Title

Job Title / Position

Source: IHL Group

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FDC Revenues by Channel

Retail Revenues by Channel

GMS Revenues by Channel

Source: IHL Group

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Respondents by Revenues

Retail Revenues

Source: IHL Group

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IHL Group License

and Fair Use Agreement

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