Innovating Retail with Commerce Everywhere Business Models · 2020-06-09 · Innovating Retail with...
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Innovating Retail with Commerce Everywhere Business Models An IDC ebook
Transcript of Innovating Retail with Commerce Everywhere Business Models · 2020-06-09 · Innovating Retail with...
Innovating Retail with Commerce Everywhere
Business ModelsAn IDC ebook
Innovating Retail with Commerce Everywhere Business Models
Asia Pacific
31%
Europe38%
AD HOCStuck in legacy
OPPORTUNISTICLate follower
REPEATABLEUse case-focused
MANAGEDProgram-driven
OPTIMIZEDInnovation
culture-driven
2% 25% 32% 35% 7%
Globally, more than one third of retailers are working on an innovation strategy
Innovating Retail with Commerce Everywhere Business Models
Efficiency and short-term profits
What are C-levels’ priority domains for the next five years?
The Commerce Everywhere Value Chain
Culture
Disruptive tech.
Micro-services
EcosystemCo-innovation
Dev and int. services
Business Model
Innovation Innovation excellence and long-term growth
Tech IP-as-as-Asset
Tech-IP-sourced revenue
Digital Supply Chain
Customer Experience
Platform Cost structure Visual Commerce
BlockchainConsolidate data and use analytics
Innovating Retail with Commerce Everywhere Business Models
Commerce Everywhere value chain is impacting the business as usual
Digital assets as monetization
platforms
Store as services
hub
Visual and voice
search
Human-AI augmented
CX
Connected stream of life
Loyalty beyond rewards
Commerce Everywhere
Business Models
Innovating Retail with Commerce Everywhere Business Models
Within next 12 months, 60% of retailers will execute innovation through a retail commerce platform
ERP
CONSUMER Services
E2E Security
COMMERCE SERVICES
- Single commerce engine- Order capture - Order configuration- Payment- Delivery set-up
CONTENT OPTIMIZATION SERVICES
- Content management- Adaptive content distribution
Development & Integration Services (API)
ENTERPRISE Services
DATA Services
Store operations
Product & Customer IOT External
CUSTOMER EXPERIENCE SERVICES
- Context discovery
- Customer journey personalization & loyalty
- Interface enablement (voice, image, text, AR)
ORDER FULFILLMENT SERVICES
- Fulfillment optimization- Networked, KPI-based- Delivery execution- Returns management
Store
Mobile
Web
Connected Product
Robot
Social
Marketplace
Ecosystem Network
Enterprise Applications
Supply Chain
Merchandise and Assortment Planning
Price and Promotion
Finance and Accounting
Asset Management
HCM
AI/ML Analytics
Innovating Retail with Commerce Everywhere Business Models
Two thirds of retailers are shifting to AI foundations
Asia Pacific 36%
Fashion & luxury34%
Low priority Evaluating AI foundations
Starting to implement AI foundations
Have already implemented
AI foundations
All activities are automated and data-driven
5% 32% 30% 28% 5%
Innovating Retail with Commerce Everywhere Business Models
Almost half of retailers are innovating their business model by changing customer experience approach
Empathy at scale
CONSENTConsolidate consumer data
39%
CONVERSATIONSWill generate revenue through visual commerce in the long-term
34%
CUSTOMER JOURNEYSExecute through contextual interactions
34%
43%
Innovating Retail with Commerce Everywhere Business Models
What is Changing in Retail Customer Experience?
Innovating Retail with Commerce Everywhere Business Models
By next 12 months, more than half of retailers will have launched at least one co-innovation program
Currently running at least one co-innovation
program
Will launch at least one co-innovation program
in next 12 months
46%9%
Extremely important to leverage open-APIs-based integration and development services
USA 15%
45%
ECOMMERCE 51%
Innovating Retail with Commerce Everywhere Business Models
IDCRECOMMENDATIONS
Innovating Retail with Commerce Everywhere Business Models
Assess now the maturity of retail business model innovation
Innovation activities are on hold as the retailer predominantly focuses on running opperations; legacy retail business models are the norm.
Innovation is the retailer´s last chance to address urgent issues with case-specific isolated initiatives; new retail business models are adopted when widely consolidated in the industry.
Innovation culture is in embryonic phase, embraced in specific teams or functions that work on limited retail DX use cases; new retail technology implementation is understood as new business models’ execution.
Innovation is among retail executives’key priorities and is executed on DX programs; newly adopted retail business models have limited impact on revenue and profit generation.
Innovation culture premeates the organization, driven by a structured innovation strategy; new retail business models are driving long-term profitable growth.
AD HOCStuck in legacy
OPPORTUNISTICLate follower
REPEATABLEUse case-focused
MANAGEDProgram-driven
OPTIMIZEDInnovation culture-driven
1 2 3 4 5
Innovating Retail with Commerce Everywhere Business Models
Identify the maturity gaps and build a three-horizons roadmap based on DX business use cases
INMEDIATE
MIDTERM
LONG-TERM
HORIZON 1 Retail Commerce Platform Foundations 70% of
DX budge
HORIZON 2 Embedded AI/ML Analytics
Foundations 20-30% of DX budge
HORIZON 3 Streamed Ecosystem Collaboration Typically unbudgeted in the initial stages of DX
USE CASE
USE CASE
USE CASE
USE CASE
USE CASE
USE CASE
USE CASE
USE CASE
USE CASE
Innovating Retail with Commerce Everywhere Business Models
Related Research
• Retail Business Model Innovation in Europe
• IDC PlanScape: Architecting a Digital-Platform-Enabled Retail Innovation Strategy
• IDC MaturityScape: Retail Business Model Innovation 1.0
• IDC TechScape: Worldwide Retail-Innovation-Enabling Technologies, 2019
• IDC Techbrief: Blockchain in Retail
• IDC Innovators: AI-Enabled Commerce and Customer Experience in Retail, 2019
Innovating Retail with Commerce Everywhere Business Models
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