Starting from IT-enabled innovation capability disconnect, IT spend, Agile development in web and mobile commerce platforms and apps; everything is absolutely reflecting the scenario. Source, Courtesy & Inspiration Accelerating Digital Innovation in Retail - https://www.bcg.com/en-in/publications/2018/accelerating-digital-innovation-retail.aspx

1. Retail CIOs & their Imperatives
Retail CIOs have 'Do or
Die' imperative with
Digital
CIO role - No longer
running internal system
& produce operational
data for decision making
Consumer habits
changing fast. Its not
about yesterday; its
about today & tomorrow.
In US & Western Europe,
online sales grow 5
times than traditional
stores by 2022
Summary
4 Imperatives 1. Support for
personalization
2. Omnichannel
capabilities
3.Invest in Digital
infrastructure /
ecommerce apps and
platforms
4. Innovation discovery
Not enough CIOs feel not enough IT-enabled innovation; due to lack of speed in adopting new tools approaches.
Do or Die Customers demand a high level of convenience and expect personalized content. Amazon & Alibaba
setting the standard/raising the bar everytime.
Struggle Traditional retailers' CIO struggle with 'how to fund innovation' to compete with Digital-First / Born-
Digital retailers (e.g. Etsy or JD.com). Because they have not handled new investment funds for digital.
Good news
1. Outsourcing is an excellent option for commodity IT services; including Infra & Desktop support
2. Cloud technologies reduce infra & depreciation cost; usage of SaaS helps
3. Adopt Agile methods (especially in Web & Mobile commerce platforms & apps; and use 3rd party channels)
Ways for
improving
There is an opportunity to do this.
Courtesy & Inspiration - Accelerating Digital Innovation in Retails; Boston Consulting Group (BCG) June 2018

2. 4 Imperatives & differentiators
IT organization is
helping in digital
innovation and to
provide better
experience?
How can one
tell if?
Conclusion
Personalization
Understand customer taste
(i) next likely purchase
(ii) behavior based on recent
transaction
(iii) can help proactive
retention
(iv) provide targeted offer
1. Seamless online & in-
store experience
2. Pay online & pick-up at
store
Invest in Digital infrastructure
/ ecommerce apps and
platforms
1. Sell products directly;
Building front-end and back-
end
Many firms are not innovative
using IT and adopt frugal
innovation system. Innovation
measured as participation in
the following.
based on
1. Tech usage in-store
2. Customer ability to 'track
& trace'
3. Usability of mobile app
Leaders do
sophisticated analysis
of consumer data and
take omnichannel
approach.
REGISTER
Changes in inventory
Analyse consumer
profiles
Track delivery truck
routes
Omnichannel Digital infra Innovation
Discovery
Examples
1. Marketing & promo spend
optimization
2. Digital marketing & promo
optimization
3. Digital optimization
4. Enhancing online presence
Examples
1. Digital screens / kiosks (not
checkout)
2. Product hyper-
personalization
3. Mobile POS
4. Real-time store monitoring
Examples
1. CRM, Marketing, Customer
engagement
2. Web & Mobile cpmmerce
platforms & apps
3. Enabling 3rd party
channels
Examples
1. Use internal innovation lab
2. Partner with VC and conduct
Demo day
3. Participate in Hackathon
4. Opening offices in Silicon
Valley or Berlin
5. Piloting new tech from select
vendors
Gear up for the
future
Yesterday
1. Robust technical foundation
for social media feed
2. Rethinking customer data
usage
Today
1. It is agile
Tomorrow
1. Could be rapidly & seamlessly
integrating IoT, AR, Advanced
Analytics and making it work
with legacy system
Finally
Retail CIOs need to take a
fresh look at what they do and
determine a way to do it.
There's neither time nor
money to waste.
Courtesy & Inspiration - Accelerating Digital Innovation in Retails; Boston Consulting Group (BCG) June 2018