Adaptable operating models, niche markets, advanced analytics, and composability will be hot topics next year.
The 50% of major retailers that do not develop adaptive operating models focused on continuously delivering personalized experiences and value to customers will fail by 2030, according to by Xiaotech Recently released industry predictions for the year ahead.
“After dealing with severe business disruptions caused by the pandemic, 2022 was the year that retailers invested heavily in creating omnichannel experiences for customers,” he says. Jonathan Summerfield, Founder and CEO, XIatech.
“In what will be a challenging economic environment, we predict that business leaders in 2023 will look to further streamline operations, using analytics to eliminate unnecessary cost and risk to drive sales by ensuring seamless purchasing and timely delivery of products to their customers. ”.
Over the past year, Xiatech has spoken with a number of business and technology leaders at retailers around the world.
Based on these conversations and other sources of information, such as an analysis of data at Xfuze, its hyper-integration platform, these are the team’s predictions for 2023:
10. The end of free returns. Under pressure to cut costs, retailers will start charging customers to return online purchases.
Although initially financially driven, customers will see this change in the long term as an environmentally friendly decision. Indeed, the circular economy will benefit as customers decide to gift and buy unwanted items as the economy becomes challenging for millions of people around the world.
9. Composable is generalized. Recognizing that legacy technologies prevent their organizations from responding quickly to changes in the marketplace, including threats and opportunities, most large retail executives will add composability (select and integrate the best digital services and business applications instead of monolithic ERP implementations) as a board-level topic as they explore how to improve business agility.
8. Hyperintegration gains acceptance in the industry. The urgency for organizations to significantly shorten the time-to-knowledge required to accelerate business transformation, while lowering the total cost of technology, will drive IT and business leaders to rapidly adopt hyperintegration platforms that unify real-time systems integration, data management, advanced analytics, and process automation capabilities in a single solution.
7. More industry consolidation. Many retailers that have failed to adapt in recent years to major shifts in consumer preferences and buying behavior will be acquired in 2023.
In addition, forward-thinking retailers will acquire technology startups to get ahead of their industry peers as competition intensifies to offer customers higher levels of personalized and engaging products and services.
6. Direct-to-consumer companies will dominate. Organizations that offer D2C eCommerce capabilities alongside traditional engagement channels will lead their industries because they recognize the value of owning the entire customer journey, including first-hand customer data.
5. Have the experience of the last mile. With continued supply chain disruptions, retailers will address costly delays by increasingly taking ownership of manufacturing and delivering products to customers.
These retailers will either start their own or acquire a postal service, or buy ships, planes, or factories, to ensure timely last-mile delivery.
4. Rise of the market niche. Growing consumer interest in marketplaces, which currently account for 40% of total UK spending online, will drive retailers to create their own online e-commerce communities of loyal customers while joining existing markets.
3. Machines to enhance analysis in real time. More than 70% of midsize and large retailers will have successfully implemented, or have started to implement, advanced analytics powered by machine learning and artificial intelligence needed to power real-time insights and decision-making, including prediction of customer behavior, inventory and sales. .
2. Data ecosystems create market leaders. The focus on delivering market-leading hyper-personalized omnichannel experiences to win and retain customers will drive retailers to build data ecosystems.
The need for data ecosystems will force IT teams to rapidly modernize legacy systems that are not designed to aggregate and process data from a network of internal and external sources.
1. Emergence of adaptive operating models. Most retailers that do not develop digital adaptive operating models (AOMs) focused on delivering value to customers will fail by 2030.
leverage Hyper-integration to connect systems, data, analytics, people and processes an AOM provides a single view and the ability to manage the phases of the value chain (plan, buy, move, sell, and engage) in real time.