08 Aug 2017
SINGAPORE, Aug 09th, 2017 - IDC Asia/Pacific recently published report, IDC Asia Pacific Annual Business and IT Services End-User Survey Results II: Driving DX Transformation in the Retail Ecosystem, highlights the Asia Pacific excluding Japan (or APeJ) retail industry as one of the most active in leveraging technology to improve customer experience and generate more sales. Increasing demand for cross-border ecommerce, high internet penetration, and smartphone adoption in the region are driving retailers to adopt digital technologies and invest in infrastructure upgrades. In turn, this creates a lot of partnership opportunities for services vendors to aid retailers in their digital journey - creating engaging customer experiences and unifying commerce by transforming core business processes.
The retail industry in Asia/Pacific is at the forefront of digital transformation, with investments in DX technologies expected to double by 2019. Reinforcing this trend, we see retailers across Asia/Pacific clearly prioritizing the improvement of their networks, cybersecurity, and datacenters to build foundational capabilities that further expand digital initiatives across their business ecosystems.
“With this trend, service providers and vendors need to adapt their offerings and integrate 3rd Platform technologies with core retail functions to help retailers in the journey to converge their digital and physical channels," says Rijo George Thomas, Senior Market Analyst of IDC's Asia/Pacific Business and IT Services Research.
Here are other noteworthy highlights from the latest IDC business and IT services end user survey:
• The most common service categories adopted by retail organizations in APeJ include application services, network services and data center infrastructure services.
• Retailers plan to spend 47% of their digital budget on external vendors to drive digital transformation initiatives.
• Majority of retailers plan to focus on building foundational capabilities to drive digital initiatives by improving their enterprise infrastructure and cybersecurity posture.
• IoT is the top technology solution that retailers are planning to source from external IT and business service vendors, followed by next-generation security.
“Asia has a fast growing middle-class and millennial population, the buying and consumption patterns of whom have evolved to become more tech-enabled. To capture the spend from this growing segment, retailers in Asia are transforming themselves through the use of innovation accelerators such as AI, augmented and virtual reality, robotics, and blockchain to name a few,” says Cathy Huang, Senior Research Manager for Services, IDC Asia/Pacific. This transformation is multi-faceted, touching on operation, omni-channel, work source, data governance and so forth. To tap into these opportunities in the retail vertical, Services providers should demonstrate deep understanding towards the vertical, and explicitly include the knowledge transfer component in their services engagement, for example providing digital training for retailer organizations' employees.
For more information on this report, IDC Asia Pacific Annual Business and IT Services End-User Survey Results I: Acceleration of Digital Transformation Initiatives in the Region; IDC Asia Pacific Annual Business and IT Services End-User Survey Results II, please contact Cathy Huang email@example.com, Rijo Thomas firstname.lastname@example.org or your IDC account manager.
To know more about the key services opportunities in the APeJ retail industry, IDC has published an infographic Harnessing IT Services Potential: Insights from IDC’s 2017 IT and Business Services Survey. Click here to view and share infographic.
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