This IDC FutureScape provides retail IT executives across the globe with actionable insights and analysis for likely future technology and business scenarios. The intended readers of this IDC FutureScape include but are not limited to members of the executive, business, and IT leadership of retail organizations worldwide.
This IDC FutureScape provides retail IT executives across the globe with actionable insights and analysis for likely future technology and business scenarios. The intended readers of this IDC FutureScape include but are not limited to members of the executive, business, and IT leadership of retail organizations worldwide. The IDC FutureScape predictions suggest that the next five years will continue to focus on the adoption of disruptive and innovative technologies, which will drive digital transformation (DX) forward at a rapid pace through several key themes, including:
- Technology-driven transformation altering business and society
- Speed of change, delivery, and operations separating thrivers and survivors
- Data and intelligence representing a unique opportunity for creating unimaginable value
- How the industry is learning to utilize artificial intelligence
- Protecting the security and privacy of digital assets and creating trusted transfers of value
- Consumers expecting more convenience, customization, and control
- How to retrofit old systems into the DX world
Our worldwide retail industry 2019 predictions are:
- Prediction 1: DX acceleration among the “digitally determined” will result in 20% of retail organizations advancing to stage 4 of DX maturity by 2020.
- Prediction 2: 50% of retailers will plan to implement a digital “core” platform by year-end 2019, which will enable faster innovation, continuously utilizing insights to drive intelligent actions.
- Prediction 3: By 2020, retailers will increase track-and-trace and predictive agile execution investments by 30% to meet consumers expectation of real-time order visibility and perfect delivery performance.
- Prediction 4: By 2022, retailers will double investments in distribution automation to meet the dramatic increase of single-item, one-click impulse and auto-replenishment ecommerce and marketplace orders.
- Prediction 5: By 2021, 30% of retailers will provide real-time contextual experiences wherein conversational search is empowering, services find customers, content supports sales, and consumers monetize their data.
- Prediction 6: By 2023, 25% of retailers will create more customer “promoters” by interweaving customer experience, product and service development, and assortment orchestration to grow 25% faster than their peers.
- Prediction 7: By 2022, retailers will have increased investment in workforce technology and training by 30% to equip staff for competitive and differentiating customer experience–focused roles.
- Prediction 8: By 2023, 40% of nonfood retailers will have capabilities to profitably mass customize new product introduction, including new “lot size of one” design, buy, make, and move skills and systems.
- Prediction 9: By 2023, 50% of retailers will have implemented IoT in at least four digital transformation use cases, also enabling the reallocation of up to 3% of operations budget to innovation budget.
- Prediction 10: By 2020, retailers will have raised annual spend on data privacy safeguards by 25% given heightened concerns about data privacy and regulatory requirements including the EU’s GDPR.
This IDC study explores how different drivers are collectively impacting technology in the retail industry and offers guidance on actions to consider. Retail organizations are hard pressed in the new digital era to respond to a wide range of political, economic, social, cultural, technological, legal, and experiential forces. These forces alongside ever-expanding data assets, increasing market pressures, sweeping regulations, and changes in the global populace and in consumer expectations for experiential retail call for the industry to act in innovative ways that meet rising expectations, improve outcomes, and deliver value.
The 2019 worldwide retail industry predictions offer a glimpse into the future of the retail industry as it is being transformed in the new digital era. The future belongs to visionary leaders and forward-thinking organizations that are able to break the shackles of legacy systems and accelerate mastering digital-first strategies. The thrivers will be those that champion data-driven, experiential, and personalized approaches to experiential retail business and IT.
Learn more about the 2019 Retail Predictions
For context around these predictions, including the IT impact and guidance on how to integrate each prediction in the digital strategy of the enterprise, view the IDC FutureScape: Worldwide Retail 2019 Predictions web conference on-demand.