Hot off the presses for 2016, a joint study from The National Center for the Middle Market and Magento Commerce reveals that digitization remains a chief concern for businesses.
The research, “How Digital Are You?,” found that the fastest-growing middle market firms place a greater emphasis on digitization than their similar-sized counterparts. The data also highlighted the shifting focus of mid-market players’ digitization investments, marking a departure from the back office and operations-focused spending that has defined digitization activities in the past.
Unique among participating industries, the retail and wholesale sector has experienced a sea change led by technology and shifting consumer expectations. On the heels of NRF last week, here are a few unique insights for the retail industry:
-
Mounting pressure to digitize retail and wholesale trade
As brick-and-mortar stores struggle to keep up with strong online competition, the pressure to digitize has never been greater. While more than three quarters (78 percent) of retail and wholesale trade businesses say digitization is important relative to other business priorities, retail lags other sectors in the priority it places on digitization who rate digitization importance at 90 to 93 percent. -
Bogged down by complexity and slow progress
Not surprisingly, retailers and wholesalers were more likely to report a slower pace of digitization than other industries (37 percent). Integrating with legacy systems combined with a failure to prioritize the implementation of digitization efforts contribute to the problem. While the average payoff timeframe for digitization projects is three years, many firms cited waiting up to five years or more to realize a return on their investment. -
Wake up and smell the innovation
The study revealed that most retail digitization investment goes towards back office operations (e.g. accounting) and facilitating current business (sales, customer service, marketing and logistics), with only 8 percent currently being invested in innovation projects which are important drivers of future growth and profitability for these companies. As the barriers to embracing next-era technologies dissipate, retailers will need to step up their game or get left behind. -
New Year, New Me for Retail
The data revealed that the business services and technology sector had the greatest percentage (50 percent) of companies that consider themselves digitally advanced, while more than one third of retailers (35 percent) feel somewhat or very far behind on digital readiness, leading 29 percent to increase their investment in digitization projects in the next 12 months.
"Clearly, the study validates that improving digitization is important to every industry in the digital age and that technology is rewriting the rules of the game. Businesses that are complacent or just average in this area will get left behind," said Peter Sheldon, Chief Strategy Officer, Magento Commerce. "To keep pace, companies must take necessary steps to address key digitization barriers and move quickly to successfully adopt next-era digital tools. In doing so, these businesses secure not only continued relevance, but also superior returns and growth."
To learn more about the study:
October 13, 2021
October 26, 2021
January 18, 2022
February 7, 2022
February 7, 2022
April 23, 2022
May 7, 2022
May 7, 2022
May 9, 2022
June 24, 2022
June 25, 2022
July 29, 2022
July 30, 2022
August 1, 2022
August 8, 2022
August 12, 2022
August 22, 2022
August 26, 2022
August 27, 2022
August 27, 2022
August 27, 2022
August 31, 2022
September 7, 2022
September 14, 2022
September 14, 2022
September 14, 2022
September 14, 2022
September 15, 2022
September 15, 2022
September 17, 2022
September 17, 2022
September 17, 2022
September 18, 2022
September 18, 2022
September 18, 2022
September 19, 2022
September 19, 2022
September 19, 2022
September 19, 2022
September 20, 2022
September 24, 2022
September 24, 2022
September 26, 2022
September 26, 2022
September 27, 2022
September 27, 2022
September 29, 2022
September 29, 2022
October 10, 2022
October 10, 2022
October 12, 2022
October 14, 2022
October 17, 2022
October 25, 2022
November 4, 2022
November 4, 2022
November 14, 2022
November 17, 2022
November 25, 2022
November 25, 2022
November 25, 2022
November 25, 2022
November 27, 2022
November 29, 2022
December 6, 2022
December 7, 2022
December 7, 2022
December 7, 2022
December 12, 2022
December 15, 2022
December 16, 2022
December 16, 2022
December 17, 2022
December 20, 2022
December 21, 2022
December 30, 2022
January 3, 2023
January 5, 2023
January 5, 2023
January 5, 2023
January 9, 2023
January 13, 2023
January 28, 2023
February 1, 2023
February 3, 2023
February 3, 2023
February 4, 2023
February 4, 2023
February 6, 2023
February 6, 2023
February 6, 2023
February 9, 2023
February 12, 2023
February 13, 2023
February 15, 2023
February 15, 2023
February 15, 2023
February 15, 2023
February 15, 2023
February 16, 2023
February 16, 2023
February 16, 2023
February 20, 2023
February 20, 2023
February 21, 2023
February 22, 2023
February 23, 2023
February 24, 2023
February 24, 2023
February 25, 2023
February 26, 2023
February 28, 2023
March 6, 2023
March 6, 2023
March 6, 2023
March 8, 2023
March 8, 2023
March 8, 2023
March 9, 2023
March 10, 2023
March 10, 2023
March 10, 2023
March 13, 2023
March 14, 2023
March 15, 2023
March 15, 2023
March 17, 2023
March 17, 2023
March 17, 2023
March 18, 2023
March 22, 2023
March 22, 2023
March 22, 2023
March 23, 2023
March 23, 2023
March 25, 2023
March 29, 2023
March 29, 2023
March 30, 2023
March 30, 2023
March 31, 2023
April 1, 2023