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A recent study conducted by Tata Consultancy Services, India’s largest software company, showed that the potential for global retail Chief Information Officers to embrace disruptive technologies are too often hampered by lack of key resources and due to business alignment.
A CIO manages the implementation of the useful technology to increase information accessibility and integrated systems management. Almost two thirds (64%) of global retailers are considering cost reduction as a major focus over the next few years, versus only two fifths (38%) citing innovation, TCS said in a release today.
In December, TCS commissioned Forrester Consulting to conduct the study, “The Global Agenda of Retail CIOs,” to evaluate the state of IT within the global retail industry and CIOs’ attitudes and plans toward key trends and disruptive, challenging technologies.
Retail business executives’ core priorities remain revenue growth – with 87% listing it as a top priority - underpinned by multichannel integration and digital customer engagement, TCS said in the release.
Though retail CIOs believe that the disruptive technologies of mobility, social media, cloud, and big data will continue to radically transform the retail industry status quo, yet they are not staffed or structured adequately to take full advantage.
The release quoted Pratik Pal, president of retail, CPG, travel, transportation and hospitality for TCS as saying, “Retail CIOs are uniquely positioned with an enterprise-wide perspective to overcome operational silos and become true change-agents, critical to future cross-channel customer engagements and business growth.”
They are primed to expand their leadership role in the dynamic new world of retail by spearheading the digital and innovation agenda. As per global retail CIOs, mobiles is at the forefront of innovation that will continue to disrupt retail over the next years, while cloud frees up IT teams from traditional core functions to allow greater innovation.
CIOs plan to rapidly implement an array of mobile technologies, with context-aware tech (32%), mobile payments (28%), digital signage (24%), and mobile POS (22%) leading the way, said TCS.
Retail CIOs in the United Kingdom are global leaders in having already implemented some form of mobile payments (73%), while German retailers buck the global trend, with 60% having no mobile plans at all. Perhaps with an eye toward further improving customer service and logistics, six out of ten (59%) retailers plan to invest in mobile-enabling their partners and vendors over the next three to five years, the study showed said TCS.
While 41% of retail CIOs currently use SaaS (software-as-service) for back-office functions such as supply chain and product life cycle management or ERP, more than half (52%) intend to do so over the next five years.
