Digital laggards heading for extinction, Hitachi Consulting research
Retailers failing to engage in digital transformation won’t be around by 2024, according to 90% of senior decision makers within the retail industry. In fact, a quarter believe that those steadfastly clinging to more traditional ways of doing business won’t exist three years from now.
New research, published by Hitachi Consulting and involving 200 retailers, all of which were at the most senior level/C-suite, shows that 45% have passed the midpoint on their digital transformation journey. And only 1% consider themselves to be where they want to be.
A lack of internal strategy (29%), management buy-in (19%), and knowledge (29%) are the biggest barriers, according to three-quarters of respondents asked to consider their own operations. Concerns over these barriers led a quarter of respondents to state they were “scared” to digitally transform, citing a lack of understanding around how best to begin projects, coupled with a heightened fear of risk.
“More and more retailers are experimenting with innovative technology. But as the research shows, it’s a small minority that are at the more advanced stages of the digital transformation journey, and the majority are therefore missing out on many of the benefits, such as improved cost control and profitability,” says Pierson Broome, retail specialist at Hitachi Consulting.
“However, it’s not all doom and gloom. 99% of retailers are now tackling digital transformation – even if some aren’t far along their journey, that’s significant progress compared with a few years ago. Now their focus needs to be on implementing a full and clear digital transformation strategy, guided by the knowledge and experience of experts and backed by senior management, to provide a solid foundation for remaining at the cutting edge of retail IT systems. This will give them the best shot at not only surviving to 2024, but thriving.”
