From “simple Retailers” to “Innovator Retailers”: how is the field reacting to Digital Transformation?

Although it is still early days for digitization in Retail, it seems that Retailers are now at the forefront when it comes to Digital Transformation and the adoption of end-to-end systems that are integrated with Cloud software.

We have already discussed the impact of technological progress on the Retail industry on a number of occasions. The Emerging Opportunities to Deploy Industry Processes in the Cloud study carried out by Forrester Consulting for SAP has now provided us with numbers that paint a picture of the results achieved by those who have embraced Digital Transformation.

87% of the 135 companies examined in nine different countries have planned or made significant investments in end-to-end and cloud software.

 

What results have been seen?

“Innovator retailers” is the name given to retailers who have chosen to use a combination of types of smart technology to achieve their digital transformation goals, investing in the digital consumer supply chain, smarter distribution technologies and consumer centricity.

81% of these companies now have a 55% edge over Competitors that have been “left behind”.

97% of “innovator retailers” also say that the quality of the services that they provide has improved, while 93% believe that they are more competitive and claim that they can attain better results thanks to the integration of Cloud software in their systems.


How?

The most significant forms of technology are unquestionably the Internet of Things, Machine Learning and Real-time analysis. More than 92% of companies feel that moving end-to-end processes to the Cloud could enhance the digitization capacity of the entire Retail system.

It seems that the Cloud is deemed to play a crucial part in the digital priorities of Retailers and that they are prepared to invest even more in order to improve all of their processes: from purchasing to sales.

 

After all, the benefits are plain to see. Now all that’s left to do is work out how to optimize these resources in order to enhance their performance, although we’re sure that the future has some big surprises in store.

Would you like to discover more? Read also Digital Transformation and Italian Retailers

Unconventional Field Marketing, Unconventional Corporation, Unconventional Team: check out the corporate video!

The thing that makes Pardgroup S.p.A. stand out from all of the other players in the market is unquestionably its unconventional approach.
For instance, over the years we have established unconventional relationships with our Clients, our Suppliers and all of the Staff and Partners who work in our offices on a daily basis. We wanted to share with you some pictures of the passion and dedication that all of us at Pardgroup show every day as we strive to provide unbeatable services for everyone who chooses to work with us. Portrayed in the pictures are our offices, our routine and our faces. It goes without saying that we hope you like them!

Watch the full video and all of the clips on our YouTube channel!

Pharma Trade: Pardgroup gets in on the evolution of the pharmacy channel too

The world leader in the distribution of health and well-being products has landed in Italy with three new stores.

Among the suppliers, Pardgroup has supported the new openings with the creation of planograms in the Pharmacy channel to complete what the Company offers for the Trade.

Planograms are an essential business tool: allocating and optimising the position of off-the-shelf products and their categories is vital for the success of in-store sales. You therefore need to trust a reliable partner who has already gained this expertise in other markets.

The work carried out for the major pharmacy chain is part of a pool of Pardgroup services, providing complete consultancy in the Trade, partly thanks to the support of Business Intelligence specialists who can gather data from stores and sales channels, then analyse and aggregate it to make it meaningful for the Client. Based on this data, Pardgroup then makes planograms, implements them in store and develops merchandising activities thanks to the Field Force working all across the region.

 

Pardgroup is therefore the only partner that can offer integrated consultancy to its Clients, including in the Pharma channel now too.

Read also Field Marketing: which services should we offer today?

Digital Transformation and Italian Retailers

How does Italy differ from the rest of the world when it comes to digitalization?

A study conducted by Fujitsu, as part of its Digital Transformation PACT project, surveyed 190 leading businesses in the Retail sector and revealed some interesting differences. Globally, Retail is struggling to achieve tangible results, but in Italy the trend seems different: 65% of respondents claim they are happy with the investments made in this “digital” transformation.

The study centres around four factors deemed crucial for a successful digital transformation – People, Actions, Collaboration and Technology –  and what emerges from the Italian Retail landscape is a Culture of innovation. Specifically, 41% of Retailers are convinced that the most important factor is skills, therefore People, while 18% believe it’s Technology.
These findings are different at the global level, where 18% of respondents would invest in Actions and only 24% in People.

 

In Italy, 60% of surveyed organisations describe their own digital skills as inadequate and thus rely on external consultants, firms or start-ups (in 78% of cases) to develop tailored training programs for them.
The co-creation of Digital Transformation processes is also perceived differently in Italy compared to abroad: globally, Retailers are mostly averse to this possibility, while in Italy 30% of respondents view it favourably, and 90% of those are already experimenting with new business models.

 

Another difference between Italy and the rest of the world is that, in our country, over 70% of respondents think that too much emphasis is being placed on change, and too little on the skills and actions required to support such change.

Furthermore, while 47% of Italian Retailers are investing in Internet of Things systems, 82% are worried about their ability to adjust to emerging technologies such as artificial intelligence.

 

In Italy, 64% of respondents claim to have already implemented projects related to digital transformation, compared to only 35% worldwide. 52% of Italian Retailers are already turning to digitalization to transform their Customer Relations. But how, exactly, is “digital transformation” understood by companies? For 53% it means transforming a company’s revenue and business models; for 12% it means creating new digital business processes.

About half of the Retailers surveyed in Italy (47%) believe that the main impulse towards Digitalization comes from the Customers themselves, since customers – according to 88% of the sample – have high expectations regarding companies’ degree of evolution. However, 70% feel that this process leads to an increase in competition, and 88% of respondents believe it’s impossible for them to properly identify or predict who their competitors will be five years from now.

 

And what are the tools being used? The technologies deemed most crucial for companies’ financial success over the next ten years are cloud computing, big data analytics and artificial intelligence; the last two, together with cybersecurity, are also considered essential for growth, but mainly in terms of in-house skills and process optimisation.

Source: CIO

Are you interested in this topic? Also read:
The Internet of Things (IoT) to support the Customer Experience