| | March 20179CIOReviewretail channels, customer expectations of consistent and flexible shopping mean that all of the retailer's customer-facing processes must be unified. These processes should be defined in their most basic terms: Consume, search, purchase, fulfill, and return. Retailers of all types must engage in digital business transformation built on a foundation of customer understanding to facilitate a unified retail commerce experience.Physical Retail Space is a Prime Target for Enhancing the Customer Experience through Digital The symbiotic relationship between stores and eCommerce for most traditional retailers is in fact the thing that allows them to have a significant online presence. Any single store location, even if unprofitable, likely has a relationship with customers who shop mostly online. In fact the powerful combination of digital and physical is where a multichannel retailer can exert itself. Manifestations of this include click­and-collect and order online for in-store pickup but much more is needed to reinvigorate the physical shopping experience. It's not only about being Omni-channel, rather it is about focusing on providing a unified customer experience. This focus will become transformative when retailers and suppliers collaborate to build an effective consumer ecosystem centered on customer experience.Advanced Analytics must be Applied to the Customer Experience to Drive Reorganization around the Customer The impact of digital business and IoT will require advanced analytics to support real-time decision-making to take advantage of momentary business opportunities. These opportunities will demand a different approach to marketing, merchandising, pricing, distribution, store operations and almost every other internal process. Ultimately, the retailer will need to be able to decide in a split-second, if an opportunity is potentially desirable or should be passed up in favor of the next momentary opportunity. Success will require retailers to use a combination of knowledge, innovation, speed, and strategy to maintain and grow market share in the digital economy.Watch-out for Known Barriers Impacting Digital Transformation SuccessRetail CIOs need to be cognizant of the top barriers to success, developing a game plan for each. Five key areas to focus on are as follows:1.Existing Skills and Resources Comprise the Largest Impediment. One major area of concern focuses around advanced analytics skills that are required for digital business. Start by doing a gap assessment and working with HR to facilitate change in hiring and promotion. 2.Leadership is a Major Retail Issue. This may be driven by the complexity of the retail organization structure, as well as turnover in key positions such as the CMO or chief merchant. The impact of digital on traditional retail business models is so pervasive that success is improbable without strong, long term leadership. Start by educating the senior executives on the impact of digital technologies. 3.Funding Remains a Significant Barrier. There is some improvement on IT spending for retail, but this is a constant challenge. 4.Culture and Organization Structure Issues Manifest in a Variety of Ways. The most common remains cross channels silos that inhibit the organization's ability to deliver a truly unified retail experience. As the retailer increases its focus on customer experience, the o rganization structure must evolve to support customer expectations. 5.Technology Challenges Plague Multichannel Retailers. Many still rely on a complex web of legacy applications, including those internally developed and many still on mainframe technologies. Do not begin execution of a digital strategy, without having done a gap analysis and identifying the foundational steps that will enable success. The powerful combination of digital and physical is where a multichannel retailer can exert itselfBob Hetu
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