Retailers agree with leaders in the financial services, manufacturing and public sector that disruption is the new normal for businesses today. Across all industries, executives identified digitalization as a trend that is fundamentally redefining the way that organizations operate.
Although most of today’s large retailers were not designed with the digital age in mind, they have now recognized the need to innovate and adapt rapidly, to maintain market share and keep up with new digital native competitors. Despite the challenges ahead, nearly three quarters of retailers surveyed told Fujitsu they are confident that digitalization can bring significant benefits, with co-creation and strategic collaboration being vital to success.
Of the 250 retailers Fujitsu surveyed, 40 percent said they believe that their business will not exist in its current form by 2021. Almost all (97 percent) agreed that their organization has already been impacted by digital disruption and acknowledge the need for their business to evolve to thrive in a digital world (98 percent). In line with this perception, 75 percent believe the retail sector will fundamentally change in the next five years – and indeed, over half (54 percent) say they have already changed their business strategy.
Despite this optimism, digital transformation also presents a range of challenges for the retail sector. Nearly three quarters (73 percent) of those surveyed believe that their organization needs to innovate faster to stay relevant, and respondents identify ageing technology and infrastructure (43 percent), lack of the right skills and talent (31 percent), or simply the complexity of the challenge (32 percent) as factors that are holding them back. More than a third (35 percent) are concerned by the high level of disruption, and 56 percent agree that digital disruption is the biggest challenge they face as a business. On top of that, almost (48 percent) are finding that increasing digitalization is making it harder for long-term business planning and decision-making.
Having a clear, actionable plan is considered to be the most important factor that will enable retailers to prosper in a digital world (54 percent) and the majority of respondents (74 percent) believe technology is at the heart of their organization’s ability to thrive. Consequently, 64 percent feel that collaborating with technology experts will be vital to succeed.
Richard Clarke, Vice President Global Retail Business Development at Fujitsu, said: “Despite the significant change that the sector is facing, retailers are confident in their ability to thrive in an increasingly digitalized world, and they are investing to optimize internal processes and become more agile. Driven by the aim of enhancing customer service, most retailers have already deployed new technologies, developed new services, and are set to become more competitive than ever before. Digital disruption is now the new normal for retailers, and as our survey confirms, they are ready to prosper from it.”
Fujitsu is the leading Japanese information and communication technology (ICT) company offering a full range of technology products, solutions and services. Approximately 156,000 Fujitsu people support customers in more than 100 countries. We use our experience and the power of ICT to shape the future of society with our customers. Fujitsu Limited (TSE: 6702) reported consolidated revenues of 4.7 trillion yen (US$41 billion) for the fiscal year ended March 31, 2016. For more information, please see http://www.fujitsu.com.
Fujitsu enables customers to capitalize on digital opportunities with confidence, by helping them to balance robust ICT and digital innovation. Fujitsu’s full portfolio of products, solutions and services gives its customers a competitive advantage in the era of digital transformation. In Europe, the Middle East, India and Africa (EMEIA) the company employs more than 29,000 people. For more information, please see http://www.fujitsu.com/fts/about/
All other company or product names mentioned herein are trademarks or registered trademarks of their respective owners. Information provided in this press release is accurate at time of publication and is subject to change without advance notice.
Date: 06 March, 2017
Company: Fujitsu Region
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