Digital Maturity in Retail Industry
Where Do You Belong in the Digital Transformation Quadrant & Maturity Index?
Digital transformation has become an industry buzzword. So much so that it is dominating retail industry conferences, panel discussions, business summits, etc. While some leaders are terming it as their biggest business enablers, some are admitting that it is one of their biggest challenges.
It is clear that digital transformation has indeed turned the retail industry dynamics head over heels. All the predetermined success parameters have been tossed out the window.
Lately, we have seen a lot of big-box retailers shut down, despite making the investments in digital solutions. On the other hand, we have seen smaller yet agile players disrupting the market with their solutions, processes, business models, and whatnot.
However, dividing the retailers into mere two categories of thriving and struggling brands would be too simple and we know that digital transformation is everything but simple. So how has digital transformation divided the retail industry? Let’s take a closer look.
We believe that retail industry can be divided into 4 major quadrants when it comes to digital transformation maturity.
- The Pioneers: This is the quadrant that boasts of the brands who are visionaries. These retailers set the tone for the industry. They are the ones who understand the true potential of digital and have realized how it can completely transform their business. These retailers would have already implemented game changing solutions long back and would have become extremely nimble due to agile operations irrespective of scale and size.
- The Explorers: These are the retailers who are aware of the potential of digital and see it as a strategic objective. But they are still evaluating different paths of transformation and are not there yet. They have witnessed what industry pioneers have done and are in the process of creating the roadmap of their own journey. They are making efforts to align their digital transformation to their own strategic goals.
- The Followers: These are the retailers who are struggling to grasp the concept of digital transformation. They are adopting digital solutions just to keep up with the competition. There is a lack of strategy and plan. We often see these retailers fail despite investing huge sums in technology. They end up accumulating technical debt which has a crushing effect on their business.
- Nay Sayers: These are the retailers who are in denial and have chosen to continue with the brick and mortar way of doing business. They do not make any digital commitments and don’t have much faith in transformation. They are the ones who believe that digital transformation is just a passing fad.
To identify which quadrant a retailer belongs to we use a digital maturity model. This model is designed to give the retail leaders a way to move forward with obvious pragmatism and digital readiness.
A retailer needs to move from one stage of the digital maturity matrix to the next in a well thought out manner. The success of your initiatives at each stage will depend on how grounded you are with your digital transformation strategy.
To create your own digital evolution roadmap, you can talk to our digital retail consultants. We can help you understand where you currently sit in the maturity matrix and the market quadrant and help you move from one milestone to the next.
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