What Digital Transformation Means To Retailers
A recent BusinessWeek article titled “America’s Retailers Are Closing Stores Faster Than Ever” summarizes the epidemic that retailers are facing today (see Figure 1).
Figure 1: Growing Epidemic of Store Closures
Retailers are closing stores at a record path and the driving force behind the acceleration in store closings is Amazon, who now accounts for over 50% of all on-line retail sales (see Figure 2).
Figure 2: Amazon’s Growing Dominance of e-commerce; source: “Competitors Can’t Keep Up With Amazon’s Growth”
What are retailers to do when the tricks and techniques that worked in the past just don’t work in today’s real-time data and analytics driven business world? Business models that worked in a world that valued size and location quickly fall apart in a world where retailers are leveraging customer, product and operational data and analytics to provide a highly-personalization shopping experience and anticipate customers’ shopping desires to provide a wider range of highly-relevant, and easily accessible products (think Amazon 1-Click®).
Check out my interview on DealCrunch titled “How Dell EMC Helps Retailers Realize the Value of Their Data by Analyzing It to Predict Business Outcomes and Improve ROI” that discusses how retailers can take advantage of their customer, product and operational data to compete in this real-time, predictive retail world to optimize key operational processes, reduce security risks, uncover new revenue opportunities and provide a more personalized, more prescriptive customer experience from research and selection to product usage.