Budgetary restrictions hampering IT modernisation in retail

Retailers’ efforts to update IT systems are being hampered by budgetary restrictions (58%) and lack of technical knowledge (49%), according to Boomi’s The State of Modernization, Transformation, and Innovation in the Digital Age’ report.

However, the study did find there is growing recognition of the importance of modernising digital capabilities in the sector, with 40% reporting that they are in the early stages of doing so. This is more than any other industry included in the survey.

The growing shift to eCommerce during the Covid-19 crisis means there is likely to be pressure on retailers to invest more in digital technology to meet evolving customer needs. And in the survey of 1,200 business and IT decision makers across eight key industries, 49% of those in retail saw improved customer experience as the top benefit of such modernisation. This was followed by revenue growth (48%) and enabling the adoption of new technologies (41%).

Additionally, 37% of retailers reported they are in the process of rolling out transformation; defined as the process of updating and evolving the way that a business interacts with customers, employees and partners. Improved customer satisfaction was the biggest benefit of transformation listed by retailers (52%).

Across all industries, it was stated there is a need to get technology ‘right’ over the next 12 months to ensure continued success, and 86% of those polled believe that technology will dramatically change the way their organisations operate over the next 10 years.

“The next decade will undergo an even more rapid pace of change than the 2000s and 2010s,” said Chris Port, chief operating officer for Boomi. “Though modernisation, transformation and innovation have paid dividends in recent years, organisations can’t afford to rest on their laurels. Especially now. Not when business priorities, drivers of change and technology needs are rapidly converging, as reflected in this survey.”

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