Cash wasted on directionless digital transformations by retailers, report finds
09 July 2018 - 13:27 by Mike Price
A new study from Fujitsu has investigated how retailers are seeking to transform their operations with digital makeovers, and how in many cases this can be thwarted by a lack of planning.
Internet Retailing reports that 74 per cent of the organisations that have kicked off transformative initiatives in the recent past ended up doing so without tying this into the broader strategy that defines the direction of their business.
Fifty eight per cent said that hiccups in earlier attempts at digital transformations were enough to dissuade them from taking similarly bold steps in the future, even if doing so could actually help them.
Around £1 billion has been wasted on projects of this type which were either cancelled before completion, or seen through to the end but ultimately deemed a failure, analysts revealed.
The majority of retailers admitted that part of the problem comes down to a lack of in-house talent aimed at tackling digital projects. This means that when outlets want to improve their presence in the world of safe shopping online, it can often be difficult to achieve effectively without seeking outside assistance.
This comes at a time when every consumer in the UK has the expectation that mainstream retailers should embrace digital technologies. This applies not only to a smoother experience of safe shopping online, but to the application of digital solutions to their bricks and mortar presence.
Study spokesperson, Jat Sahi, said that retailers should really be able to transform their operations to cope with the demands of the digital age fairly effectively, so long as they take the time to strategise properly and make use of contemporary techniques. Yet all too often this is not the case, which is costly for the companies themselves and bad for their customers as well.