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IDC FutureScape: Worldwide Retail 2018 Predictions

IDC FutureScape: Worldwide Retail 2018 Predictions

This IDC study explores the mandate for adaptive retail — platforms, composable microservices-based applications, and integrated AI-enabled, augmented and connected experiences — for consumers in their stream of life and for associates in their individual roles and collaborative work processes. In 2018, retailers will accelerate technology investments, in response to market forces that have left retailers with no choice but to digitally transform (DX) business, process, and technology underpinnings to radically and continually adapt to consumer buying patterns.Leslie Hand, vice president, IDC Retail Insights, stated, "Platforms with a digital core play a central role, but well-thought-out DX use cases will enable organizations to focus on executing against their customer experience objectives in stepwise fashion, staying agile, and adjusting on the fly to continue to serve the customer in their stream of life, above all. Attention to consumer need, customer journey patterns, and the ability to maintain customer loyalty by engaging the consumer continually in their context is the key to success."

Please Note: Extended description available upon request.


IDC FutureScape Figure
Executive Summary
IDC FutureScape Predictions
Summary of External Drivers
Predictions: Impact on Technology Buyers
Prediction 1: By 2019, 50% of Retailers Will Have Adopted a Retail Omni-Channel Commerce Platform; Revenue Gains Increase, with TCO, Inventory Costs, Operational Costs, and Promotional Pressure Reduction, Will Enable up to a 30% Increase in Omni-Channel Profitability
Associated Drivers
IT Impact
Guidance
Prediction 2: By 2019, the Top 30% of Retailers Will Be Actively Engaged in Digital Transformation, Driving Organizational Shifts and Investment Strategies in Foundational Platform Technologies That Are Cloud Based, AI Enabled, and Composable
Associated Drivers
IT Impact
Guidance
Prediction 3: By 2019, 40% of Retailers Will Have Developed a CX Architecture Supported by an AI Layer; Such a Platform Will Enable CX Hyper-Micro Personalization, Providing up to a 30% Conversion Increase and Thus up to 25% Higher Revenue
Associated Drivers
IT Impact
Guidance
Prediction 4: By 2021, Retailers Will Have Embraced Geospatial Data to Drive Greater Efficiency in Omni-Channel Orchestration, Reducing Inventory Carrying Costs by up to 25% Across Distribution Centers and Stores
Associated Drivers
IT Impact
Guidance
Prediction 5: By 2020, More than Half of Consumers Will Expect Perfect Fulfillment Execution as a Top Reason for Loyalty to Retailers; As a Result, Retailers Will Increase Their Budgets for These Technologies by up to 20% to Create a Fully Transparent and User-Friendly Fulfillment Experience
Associated Drivers
IT Impact
Guidance
Prediction 6: By 2021, 10% of Chain Retail Sales Will Be Created and Managed via Voice-Enabled Digital Assistants, Which Will Accelerate the Predominance of Marketplaces for Buying Everyday Goods
Associated Drivers
IT Impact
Guidance
Prediction 7: In the Midst of Rapidly Evolving Cyberthreats and Threat Actors of Increasing Sophistication, 75% of Retailers Will Have Adopted Artificial Intelligence–Based Cyberdefence Technologies by 2020
Associated Drivers
IT Impact
Guidance
Prediction 8: By 2019, 40% of Retailers Will Have Begun Significant Workforce Transformation to Meet Growing Pressure to Deliver a Resonating Omni-Channel Customer Experience by Breaking Down Digital-Physical Engagement Silos
Associated Drivers
IT Impact
Guidance
Prediction 9: By 2020, 20% of Retailers Will Have Redesigned PIM/MDM as AI-Enabled Networks for Competitive Insights That Connect Product Attributes Through Social Semantics to Meaning and Purpose in Customer Contexts, Creating Actionable insights to Unify Merchandising and Marketing
Associated Drivers
IT Impact
Guidance
Prediction 10: Through 2021, Responding to Stakeholders' Experience Expectations, Retailers That Leverage AI, AR, and IoT for Employee and Customer Engagement Will See Customer Satisfaction Scores Rise by up to 20%, Employee Productivity Rise by up to 15%, and Inventory Turns Rise by up to 25%
Associated Drivers
IT Impact
Guidance
Advice for Technology Buyers
External Drivers: Detail
Sense, Compute, Actuate: The New Data-Centric Paradigm
Pace of Change: Technology Capabilities Enable Sustainable Change at the Speed of Digital Business
DX Delta: Leaders and Disruptors Widen Performance Gap
Human Versus Machine: The Impact of AI and Automation
Platform Disruption: Unleashing Digital Innovation's Power for Scale
The Future Workforce: Global Demand for Digital Talent
Cyberthreats: Theft, Ransom, and Cyberattack on the Rise
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