Time for Retail Therapy with Digital Process Acupuncture

Cognizant Time for Retail Therapy with Digital Process Acupuncture 3344353 In-store beacon technologies. Mobile shopping. Contactless payments. When it comes to digital process innovations, retailers have been trailblazers - especially on critical customer-facing functions. But what about reinvigorating outdated processes in the middle and back office? Consider: digital process acupuncture. The precision application of digital PAY technology to just the right processes or sub-processes can help relieve operational stress in business value chains to unlock unprecedented value. We surveyed 95 European and U.S. retail leaders to understand how and where they are applying digital tools and techniques to optimize work. Here's what we found: Trim the Fat, Build Digital Muscle . and Follow the Money Digital process acupuncture releases massive cost savings and revenue growth in the retail sector. 9.8% 8.0% ALL INDUSTRIES 0101 10 AVERAGE COST REDUCTION AVERAGE REVENUE INCREASE 9.6% 8.2% RETAIL AVERAGE REVENUE AVERAGE COST 01 INCREASE REDUCTION 0101 Source: Cognizant Center for the Future of Work 100 Selling - Digitally – by the Pound: Pervasive and Persistent Process Digitization Retailers are focused on shoppers... 67% 36% OPEN HAVE ALREADY DIGITIZED HAVE ALREADY DIGITIZED FRONTLINE B2C CHANNELS BACK-OFFICE AND EXPERIENCE PROCESSES ... but digitization plans and pilot initiatives underscore the movement of digital investments from the front office to the middle office. SALE 37% 35% 35% ARE PILOTING DIGITAL ARE PILOTING DIGITAL ARE PILOTING DIGITAL INITIATIVES FOR INITIATIVES FOR INITIATIVES FOR GOODS SOURCING/ SUPPLY CHAINS MARKETING SERVICES BACK-OFFICE SUPPORT SERVICES Source: Cognizant Center for the Future of Work The Healing Touch: Pinpoint Techniques that Release Value Interestingly, the most-hyped industry trends, such as virtual reality, lag behind others that are already in progress. (Percent of respondents citing digital process solutions, services or approaches already in use) 54% 53% • Trade management, digital supply chain, warehousing Digital/automatic detection and tracing (inventory, stock, people, deliveries) PAY Digital payments, e-wallets 52% SALE! 45% Digital marketing, promotions, upsell/cross-sell Social shopping 39% 40% SALE! THIS GUY. • Smart stores, store optimization, planogram • Crowdsourcing, polling, A/B testing Mass-customization, made-to-order O 34% BUY Finger, facial, retinal recognition 32% Source: Cognizant Center for the Future of Work Virtual reality Business Drivers for Retailers Are Clear: Security Tops the Agenda As digital processes proliferate and generate value, an entirely new ecosystem of services will develop to enhance security, privacy and regulatory compliance. (Percent of respondents who rated the driver as highly important) 73% 54% 24/7 SALF Cybersecurity - privacy across channels and/or processes 65% Changing store portfolio management and/or product mix Consistent consumer experience - end-to-end channel integration Source: Cognizant Center for the Future of Work 01 10 10 1 From Symptom to Cure: Applying Digital Process 0 \0 Acupuncture to Reinvigorate Retailers Process change for retailers looks and feels different in today's digital age. Operational leaders must be innovative and nimble, while simultaneously managing organizational change. Rather than reactively performing major surgery, consider undertaking digital process acupuncture to heal and energize operations and deliver lasting outcomes across the extended retail value chain. To learn more, read our white paper at: http://cogniz.At/digitalprocessacupuncture, or visit our business process services business unit at: http://cogniz.At/bps. KEEP CHALLENGING" © Copyright 2016, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trade- marks mentioned herein are the property of their respective owners. TL Codex 1797