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Digital Transformation

This document discusses digital transformation in the retail industry. It outlines key digital trends like the rise of social media, internet, and smartphone users which are driving m-commerce growth. Emerging technologies like data analytics, artificial intelligence, and the Internet of Things can help retailers transform digitally. Data analytics in particular allows retailers to better predict customer demand and behavior, optimize pricing, forecast trends, and enhance the customer experience. Implementing these digital tools and technologies can help retailers reduce costs, improve efficiencies, and drive new revenue streams.

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Maik
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97 views4 pages

Digital Transformation

This document discusses digital transformation in the retail industry. It outlines key digital trends like the rise of social media, internet, and smartphone users which are driving m-commerce growth. Emerging technologies like data analytics, artificial intelligence, and the Internet of Things can help retailers transform digitally. Data analytics in particular allows retailers to better predict customer demand and behavior, optimize pricing, forecast trends, and enhance the customer experience. Implementing these digital tools and technologies can help retailers reduce costs, improve efficiencies, and drive new revenue streams.

Uploaded by

Maik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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DIGITAL TRANSFORMATION IN RETAIL

 Digital Transformation in Retail


Industry
 Digital trends in Retail Industry?
- Increased number of social media and internet users
- The increasing number of smartphone users and the growing use
of m-commerce
- Digital Infrastructure

 Technologies that help in digital


transformation of retail industry?
- Data Analytics 
- Artificial Intelligence (AI)
- IoT 

 Case Study
 Conclusion
What is Digital Transformation in Retail
Industry?
Digital transformation is entering into every field and industry that we
know today.  Organizations go digital to improve their services and
facilities to bring up the satisfaction level of their customers. The idea
behind digital transformation in retail is based on the needs and
requirements of customers.
While deciding about going digital, retailers think about how they can
use emerging technologies to find new ways to drive revenue and
create innovative business models. As digital tools and technologies
emerge, they are going to have a considerable impact not only on the
services offered by the company but also its organization of the
workflow.
Digital transformation for retailers
- data intelligence
-agility
-customer centricity
-new value propositions and innovative
- reducing costs
-enhancing efficiencies
-streamlining processes
Re-considering every aspect of their business
-sourcing to inventory management
-employee management
-training
-customer experience management

Digital trends in Retail Industry


1. Increased number of social media and internet users
Provided the deep correlation between economic affluence and internet inclusion,
connecting billions and trillions of users to the world wide web is one of the
significant and most prominent opportunities for the retail industry. Expanding the
trend of using the internet through wireless devices equipped by technologies,
including 3G, 4G and public Wi-Fi, has placed mobility at the center of the next big
revolution for retail businesses.
2. The increasing number of smartphone users and the growing
use of m-commerce
Smartphone usage statistics reveal that an average person spends more than 2 hours
and 51 minutes per day on their mobile phones. 51% of users check their mobile
devices a few times per hour and 22% of users look at phones every few minutes.
More than 2.71 billion people in the world have smartphones and it is expected that
mobile owners worldwide will increase to 7.33 billion by 2023.With the increased
usage of smartphones, it is expected to drive the growth of mobile commerce in the
retail industry.
3. Digital Infrastructure
The fourth industrial revolution or Industry 4.0, is defined by emerging technologies
that blur lines between the digital and physical worlds. Combined with powerful
analytics tools, including scenario analysis, predictive learning algorithms and
visualization, access to data is transforming how companies perform.Companies can
now collect vast data sets from physical facilities and assets in real-time, execute
advanced analytics to generate new insights and make more effective decisions. The
digital revolution is transforming the way products are designed, developed and
delivered to customers. It offers tremendous implications for the retail value chain.

Technologies that help in digital


transformation of retail industry
1. Data Analytics 
As the retail market is becoming more and more competitive with each passing
day, nothing has been more crucial than the ability to optimize business processes
when satisfying customer expectations. 
Data analytics is nowadays implemented at all stages of the retail process, keeping
track of all emerging products, forecasting sales and predicting future demand. 
Following are some of the strategic areas where retail players
identify how data analytics can help them drive more revenue and
growth to their business
 Predict future performance
Retail players can predict the future performance of different products based
on the customers’ existing interests and likes.  
 Price Optimization
With price optimization, it becomes possible for retailers to determine
when to drop or raise prices. Before analytics was introduced, retailers
would drop prices after a buying season ends for a specific product. 
At the same time, analytics represents that a gradual price drop from when
demand starts vanishing would result in increased revenue.
Demand Prediction 
When retailers get an understanding of customers buying trends, they focus on areas
that would have high demand. It involves collecting demographics, occasion-based
and economic parameters to create a good image of buying behavior across the target
market. It helps in effectively managing inventory.
 Trends Forecasting
With data analytics tools, retailers can have a better understanding of the current
trends of their businesses. Data analytics algorithms can be used to forecast future
trends based on buying data. Forecasted trends tell us what needs to be promoted
to increase the revenue and what does not need to be promoted.
 Picking out the highest return on investment opportunities
Using data-driven intelligence and predictive risk filters, retailers can gain an
understanding of their existing and potential customer base. It can help them model
expected responses for marketing activities based on how they are evaluated by a
tendency to likely buy or buy.
 Customer Identification
Identifying customers is also essential in data analytics because it helps in selecting
which customers would tend to like a specific product. Due to this, most of the
retailers depend on recommendation engine technology, data fetched via
transactional records and online and offline loyalty programs. 

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