“Digital transformation should be about creating new value, reducing internal costs or risks, or offering better value to customers.” Mr Pleiter agrees. The term transformation is also increasingly used for a digital reinvention: companies fundamentally reworking the way they’re wired and, in particular, how they go to market,” the authors wrote. Digital transformation is revolutionizing every industry. Transformation. I think the answer is data. The technology evolution is requiring the traditional retail market to transform in order to meet consumer demands. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. They’ll just have an omnichannel, connected-screens strategy. Digital innovation is revolutionizing the traditional retail model. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Next up are the big digital transformation trends in retail for 2020. Lobaugh serves on the board of directors for Shop.org and is co-chair of the Cross Channel Consortium. Discover. Digital upends old models. Something went wrong. Das McKinsey Digital Lab in Berlin sowie acht weitere Digital Labs weltweit sind spezialisierte Kompetenzzentren, die Strategieberatung mit Design-, Agile- und Technologieexpertise vereinen. Various tasks such as payments and product checking via a barcode are done through smartphones. Credit: MGN Moving to the cloud. This leads to satisfaction amongst most customers. Please click "Accept" to help us improve its usefulness with additional cookies. About the Digital Challengers research About McKinsey & Company About McKinsey in Central Europe ... industries, including banking and insurance, retail, heavy industry, and high tech, media, and telecom. And somewhere in that mix we’re creating actionable insights, which is the only thing that this is about. It requires understanding how to market in a digital world. Untersucht wurde, wie sich das digitale Nutzungsverhalten seit Ausbruch der Pandemie verändert hat, wie zufrieden die Konsumenten mit den Diensten sind und wie dauerhaft … Deloitte conducted a digital transformation study to better understand how retailers use customer data to engage customers online and drive revenue. Earlier this year, the global strategy consulting giant surveyed around 900 C-suite executives and senior managers at businesses around the world, aiming to track digital transformation under the Covid-19 paradigm. Press enter to select and open the results on a new page. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. There will be a transformation of retail real estate, but not an end to it. McKinsey liefert - regelmäßig aktualisiert - einen Überblick mit Zahlen und Fakten über die sich ständig verändernde Situation und die sich daraus ergebenden Perspektiven für die Wirtschaft. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Yet rumors of the physical store’s death are exaggerated. Never miss an insight. I think that is going to become a core part of the playbook for retailers and merchants of all sizes around the world. Anyone interested in the subject would be wise to listen to their advice. A shift to digital commerce is not just about building a website and launching a series of new product categories. I think that in this omnichannel world—imagine, for planning purposes, that everything is for sale in every marketplace, every means, and every channel. ( Mckinsey ) Two-thirds of a company’s competitive edge comes from its customer experience. A digital and analytics transformation is typically an 18- to 24-month journey, requiring an ambitious aspiration, a clear plan, and concrete milestones. Even by 2023, e-commerce is forecast to account for only 21 percent of total retail sales and just 5 percent of grocery sales. That, to me, is the future. Typically, that business building is a much more radical step out for compan… There are still many instances that I see where it is old-school marketing. Much will depend on fashion’s digital transformation. According to the McKinsey Global Institute, the term “digital transformation” came into being in 1994, the same year the first commercial Web browser, Netscape Navigator, debuted and changed how the world does business. Unleash their potential. Great data is both art and science. Please click "Accept" to help us improve its usefulness with additional cookies. I could create an infinite number of segments and an infinite number of possibilities from our data, but creating an infinite number of possibilities isn’t an actionable strategy. Only Mckinsey & Company and other companies willing to take bold initiative will survive to thrive after digital transformation.. planning in food retail It’s not news to food retailers: sometimes your stocks are too high, sometimes they’re too low. Article Virtual health: A look at the next frontier of care delivery. Five Steps to Advance Your Digital Transformation Strategy. Ari Libarikian: At McKinsey, when we talk about digital transformation, we talk about two things at the highest level: transforming the core, which is taking what we do today and leveraging technology to do it better, faster, cheaper, more effectively; and we talk about new business building, which really is stepping out of the core and creating something that didn't exist. Flip the odds. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. And inspiration matters, particularly in emotional categories like fashion. The Future of Retail Grocery in a Digital World McKinsey’s Future of Retail Grocery in a Digital World highlights the major trends that define this new period of retail and looks at how … But the truth is that judgment matters a lot. cookies. Digital leaders frequently pluck talent from disparate sectors because they understand that digital competency matters more than sector knowledge in the early stages of transformation. Never miss an insight. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. You know your target customers. Digital transformation in the retail and consumer industry. Please use UP and DOWN arrow keys to review autocomplete results. In fact, according to a recent study by McKinsey, roughly 70 percent of transformations fail. Disconnect between IT and business is bad news for customer experience. Building engaging experiences across channels is incredibly important. Less important, but still significant, are improved employee satisfaction (60%) and transformed business models or processes (53%). tab. We’re the world’s biggest store, and we have more things for sale than anyone else. Benefits. our use of cookies, and AI, technology and digital changes are revolutionising consumer experience. Please try again later. But now, understanding how to connect with your core customers across every way they want to connect—not the way you want them to connect but the way they want to connect with you—is a different skill. According to a 2018 report by SAP, only 22% of retailers investing in digital transformation were within the planning stage, and 55% were still running pilot schemes. But I think that’s going to go away. Devin Wenig, president of eBay Marketplaces—one of the world’s largest online markets—explains the impact of digitization on traditional retailers, bricks-and-mortar stores, the shopping experience, as well as the use of data to meet customers’ needs. Center for Digital Business Transformation, the financial services industry has been particularly affected by digitization over the past few years. The move towards retail digital transformation isn’t a luxury at this point. But as we bring curators in, and as we begin to create collections of beautiful items—we’re trying to spur inspiration, and we’re trying to spur imagination. Health concerns are a major motivator for buyer behavior, and retailers have had to provide contactless shopping experiences to maintain their consumer-base. We use cookies essential for this site to function well. It’s not yet great at inspiring you as to what you may not have known you want, but you do after you see it. > Steps to accelerate Digital Transformation beyond COVID-19: McKinsey & Co Tess Bennett 2020-04-28 The disruption caused by COVID-19 has accelerated digital adoption across retail, work, education and healthcare, making companies’ previous transformation strategies obsolete in a matter of weeks. I wouldn’t say the industry has arrived. The latest trend has been that mobile is very important. It has become a key element of the value equation that brands need to master. When speaking about digital transformation, it is important to understand that digital is no longer only a sales or a communication channel. McKinsey Digital Banking in Asia, (March 2015) 10 Digital Europe: Pushing the Frontier, Capturing the Benefits, McKinsey (2016) ... Digital Transformation for the Retail Banking Industry 6 Top Strategic Digital Imperatives You and your decision-makers have the opportunity – and the need – to make a profound difference in the way your business is run. Please click "Accept" to help us improve its usefulness with additional cookies. I know I want exactly this, so I put it in a search bar, and I’ll put it into a marketplace that I trust, like eBay or others. tab. I just think we’ve hit an inflection point where technology is now so pervasive and so useful that we’re past the tipping point. Though it is subjective based on the type of company, here are some benefits that most can get behind: Customer Convenience. cookies. We use cookies essential for this site to function well. our use of cookies, and McKinsey Quarterly. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. Design. A framework developed by McKinsey can help retailers translate their strategic priorities into modular, scalable and extendable digital programs that start with the reality of where they are today. Advanced planning now gives them entirely new options for solving the expensive problem— and cuts costs in the process. ... Future of retail operations: Winning in a digital era. Once considered to be trailblazers in the adoption of advanced technologies, banks are now more often identified as laggards, particularly in terms of wholesale digital transformation. 2 Future of retail operations: inning in a digital era anuary 22 It is currently spanning a range of disciplines, including retail, supply chain, brand management, and customer engagement. Digital transformation and a focus on customer experience can generate a 20-30% increase in customer satisfaction and economic gains of 20-50%. You could step back and connect dots and say, “The world’s going to have e-commerce only” and that “stores are dead,” but we don’t see that future at all—in part because I don’t think consumers want that future. Die Nachfrage nach digitalen Kompetenzen wie technisches Fachwissen wird dramatisch steigen. Today we don’t even know what e-commerce means. Learn about hereLearn more about cookies, Opens in new This article is part of The Banker’s Special Report, Digital transformation across European banking groups, in association with Backbase. Ari Libarikian: At McKinsey, when we talk about digital transformation, we talk about two things at the highest level: transforming the core, which is taking what we do today and leveraging technology to do it better, faster, cheaper, more effectively; and we talk about new business building, which really is stepping out of the core and creating something that didn't exist. Findings- In the model digital transformation criteria were defined for business according to McKinsey’s 7S. Reinvent your business. Article Future of nursing: Supporting nurses across settings. Change, that is, that applies to: Organizational structure; Products and services; Operating models; Culture We’re trying to capture some of what happens in stores, which is, “I went into a store to buy a shirt, and I also bought a pair of pants—didn’t know that I wanted it.” We’re seeing real success there. Learn more about cookies, Opens in new Better customer experience. DIGITAL transformation is hard, and although companies promise to commit to a strong digital agenda, not many succeed at morphing into a more digital-first business. When it comes to digital transformation, he explains, we’re really discussing change management. The worlds of traditional commerce and e-commerce are merging. But understanding how to engage in a world of exploding social networks, how to use search, how to use catalog, how to optimize, and how to engage—very different skills. Select topics and stay current with our latest insights, How digital is transforming retail: The view from eBay. It’s still about major TV campaigns, get people into the stores. Some companies won’t survive the current crisis; others will emerge better positioned for the future. Michael leads McKinsey’s fast-growth tech service line in Israel and spends much of his time working on FinTech with both global banks and … collaboration with select social media and trusted analytics partners Mai über 1.200 Konsumenten (18-85 Jahre) aus Deutschland teilnahmen. When speaking about digital transformation, it is important to understand that digital is no longer only a sales or a communication channel. Digital Transformation in Retail Retail CIOs must leverage digital technology foundation to innovate the customer experience. This interview was conducted by McKinsey Publishing’s Simon London. They’ll become technology enabled so that you can go to a store and see enough inventory, but you may shop “shoppable windows.” We’re building those right now for retailers around the world. PwC Consulting are helping consumer businesses understand what transformation means for them. Select topics and stay current with our latest insights. How digital is transforming retail: The view from eBay July 1, 2014 | Interview. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Industries are transforming all around us and surprisingly, still, have a long way to go to fully digital. There are different ways that digital transformation boosts customer convenience. [2] The next step is to understand how to transform the entire enterprise, creating a core competency that differentiates your stores in the ever-evolving world of digital transformation. https://www.mckinsey.com/.../future-of-retail-operations-winning-in-a-digital-era Digital Transformation in Retail Retail CIOs must leverage digital technology foundation to innovate the customer experience. So I think that there are going to be stores, and I think that retail real estate is not dead, but it is going to transform, and it’s going to happen faster than people think. McKinsey Global Institute. Learn about our use of cookies, and collaboration with select social media and trusted analytics partners here Learn more about cookies, Opens in new tab. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. The future of digital commerce is trying to get the best of both. January 14, 2020 – This compendium explores the breadth of change and risk throughout the modern retail industry. McKinsey is a thought leader when it comes to digital transformation. Strong IT delivery creates better customer experiences, but success depends on a much greater buy-in from leadership and the rest of the business. The authors anchor their analysis in the origins and underlying workings of the retail business model, the technology drivers that are changing it permanently, and the likely development of the retail sector in the coming years. Michael Krigsman: How is this different from digital transformation? This compendium explores the breadth of change and risk throughout the modern retail industry. We have brilliant mathematicians who can run regression with the best of them. Learn about Digital transformation is revolutionizing every industry. Digital transformations are crucial to retail stores. Adoption of digital solutions only continues to accelerate: Ninety-five percent of the Fortune 1000 expects to undertake a digital project by 2017. These are McKinsey & Company’s ‘Four Ds’ of digital transformation outlined in a new report. The digital transformation in online retail business leads to a unique stretch beyond the experience. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. Now we’re very quickly moving to a world where we just think there will be technology-enabled screens, connected screens, of all sizes. Something went wrong. McKinsey Global Institute. Most customers use mobile devices to perform this task, thus creating a great platform for digital market transformation. Retailers increase market share for digital-savvy customers Every customer interaction is a unique opportunity to harness long-term value by providing exceptional service. It requires design and product management. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Shopping is as much about entertainment and engagement as it is about utility. Before getting into this year's trends, I want to go over some of the hits and misses we chose for 2019 . Disruptions in Retail through Digital Transformation KONNECTED to consumers Foreword by Deloitte The modern economy has been built on the foundations of the industrial revolution with its roots in scientific concepts of deductive reasoning and the economic logic of maximizing self-interest. Please use UP and DOWN arrow keys to review autocomplete results. In a 2012 report (PDF opens), called “Digital transformation in 10 building blocks to boost customer experience and ROE”, the Efma (a financial industry organization promoting innovation in retail banking) and McKinsey indeed stated retail banking was lagging behind in digitalization/digitization. E-commerce has historically been incredibly search based because it’s fulfilling a utilitarian function. Subscribed to {PRACTICE_NAME} email alerts. This interview was conducted by McKinsey Publishing’s Simon London. Within 24 months, you will see a fundamental restructuring of retail real estate—you will see distribution centers, local economies, technology-enabled shopping, and a very different approach toward how you engage with the consumer. Our flagship business publication has been defining and informing the senior-management agenda since 1964. It was only a few years ago that there were no tablets and there weren’t any smartphones. On average, digital offerings have leapfrogged seven years of progress in a matter of months. Find out more on the potential business implications of COVID-19 . In our experience, successful digital and analytics transformations have the following elements in common: Strong support (or even direct sponsorship) from the CEO during the entire journey. This book reports the results of a global research effort that McKinsey has undertaken to make sense of the digital revolution in retail. Now, every merchant, every retailer must have an omnichannel strategy or they won’t survive. De-risk. This is the third article in the Becoming Retail series, which explores how retail leaders are thinking about, and putting people at the heart of, digital transformation.. We'll email you when new articles are published on this topic. Credit: McKinsey Digital transformation is moving ahead The switch from physical to digital is significant. Since the onset of the pandemic, more retail companies are filing for bankruptcy, including one-time giants like Neiman Marcus, JC Penny & Brooks Brothers. We'll email you when new articles are published on this topic. 14 Laura LaBerge, Clayton O’Toole, Jeremy Schneider, and Kate Smaje “ How COVID-19 has pushed companies over the technology tipping point—and transformed business forever ,” October 2020. Please click "Accept" to help us improve its usefulness with additional cookies. hereLearn more about cookies, Opens in new Die Automatisierung verlangt mehr Sozialkompetenzen und Kreativität. This interview was conducted by McKinsey Publishing’s Simon London, who is based in McKinsey’s Silicon Valley office. Most transformations fail. Featured Insights. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. Digital upends old models. I think that there’s a pattern in there for the way stores will transform. Digital transformation is not a new agenda item for most online retailers, but it is increasingly important. In retail, digital transformation is the key tool for generating more than one channel of income and giving businesses the chance to reach a wider target audience. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. I think we’re already past the mobile tipping point, where mobile is increasingly not a meaningful concept. I go to the store because I kind of want a shirt, but I’m not exactly sure what shirt I want—I may have an idea, but I like to browse. Online retail customers use various digital tools while shopping for their products. That’s about understanding insights that I can glean about you that don’t feel intrusive, don’t feel creepy, and don’t feel artificial—but feel natural. According to MGI, the … Update zum Coronavirus und den Auswirkungen auf die Weltwirtschaft mit aktuellen Zahlen zu Deutschland. That’s a very expensive model, and it’s a very inefficient model. Read here . Retail stores have a real future. Digital transformation is at the top of the agenda for many retailers; however, this is only the beginning of the retail industry’s efforts to embrace digital change. Dies sind zentrale Ergebnisse des "Digital Sentiment Survey", einer repräsentativen Umfrage von McKinsey & Company, an der zwischen dem 4. und 10. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. People create and sustain change. It’s certainly an incredibly important part of what we’re trying to do here at eBay. Many organizations that embark on a digital transformation journey get stuck. Here are the top 8 digital transformation trends in retail. We use a lot of judgment, and we bring quantitative analysis to that to say, “The right way to look at our customers is this, not this,” even though there are infinite ways we could. Deliver. Most transformations fail. We use cookies essential for this site to function well. Understand the digital transformation in retail caused by index changes in consumer habits. Search is still incredibly important to us; people come to eBay, they’re looking for something. Retailers must leverage technology that augments the customer’s preferred way to shop. What is digital transformation in the retail sector? It’s not about the phone or the desktop or the store—it’s about all of those. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. collaboration with select social media and trusted analytics partners I think stores are going to become as much distribution and fulfillment centers as they are full-fledged shopping experiences. What data can do is to allow you to connect this exploding inventory, exploding selection that we’re all seeing, down to be a highly relevant experience for a consumer. McKinsey hat in der Studie zur Arbeit 4.0 namens „Skill Shift – Automation and the Future of the Workforce“ die Veränderungen der Arbeitswelt in Bezug auf die digitale Transformation untersucht. People create and sustain change. It has become a key element of the value equation that brands need to master. Press enter to select and open the results on a new page. Big data is useless. What e-commerce has shown is that, particularly down the tail, it’s a much better business model to be just in time. You may end up hollowing out the real estate, where the showroom is a much smaller part of the footprint, and the inventory and the distribution center become more of that footprint. I think the last two years in particular have been extraordinary in the sense that technology has deconstructed the retail industry. Article The next wave of healthcare innovation: The evolution of ecosystems . McKinsey expands this idea into the “digital factory,” an approach that helps organizations incubate a digital culture and operating model. Digital Transformation: McKinsey’s Take. McKinsey Quarterly. Flip the odds. Reinvent your business. Most transformations fail. Next up are the big digital transformation trends in retail for 2020. We use cookies essential for this site to function well. But in the world that I mentioned before, it’s about me connecting with you, my business connecting with you. ... McKinsey Global Institute. Various channels have advantages today; eBay, for one, has a selection advantage. McKinsey’s Barr Seitz explains that digital transformation goes much deeper than technology. For retailers, digital transformation starts with the cloud. In order to fully benefit from the digital transformation, the time for CEE’s public and private sectors to act is now. Some of them may be in a retail location, some of them will be on your wrist, some of them you may hold. I think e-commerce for many years was an interesting trend, but it was on the side, largely, of what was happening in retail. Retailers can engage new customer segments by using different channels and going global in no time. ... as well as the use of data to meet customers’ needs. Nobody has an electricity department in their company; nobody has an Internet department anymore—although they did a few years ago. Sign up for Which-50’s Irregular Insights newsletter There’s a lot of press about the science; there’s not as much about the art. There are some specific ways that digital transformation creates great value for retail companies. Now at McKinsey for more than 19 years, Michael has served clients across multiple industries with a special emphasis on support function transformation, large performance transformation programs and technology-driven innovation. ... McKinsey & Company. Think of today—the square footage in a store needs to attract people in the door, it needs to have the right inventory at the right time, and it needs to have high service levels. It’s early days, but there’s no reason that digital shopping can’t be both utilitarian and inspiring, and I think that’s the next wave. But to do that effectively, data won’t get you there, because data tends to narrow you toward what you want. There will be a transformation of retail real estate, but not an end to it tation teams focused on transforming large retail organizations’ people, processes, and technologies to support growth and scale at the intersection of digital and physical required in today’s radically changing retail environment. Topic: Digital transformation. Learn about our use of cookies, and collaboration with select social media and trusted analytics partners here Learn more about cookies, Opens in new tab. Interestingly, McKinsey says that by 2018 digital natives likely represented about 12 per cent of total revenue generated across sectors of developed countries. In the last three years, more than 45 US retail chains have gone bankrupt. Digital transformation provides great mobility. Use minimal essential Learn more about cookies, Opens in new Unleash their potential. There are glimmers of success there. Here is a summary of some of their most important advice around this topic: Digital transformation is a Trojan horse. Effective management of digital transformation is vital — but challenging; Leveraging, and transitioning from, digital to new frontier technologies is an imperative. Subscribed to {PRACTICE_NAME} email alerts. I think that the sustainable advantage of a retailer or a digital-commerce business is data. For 2019 retail digital transformation mckinsey solving the expensive problem— and cuts costs in the retail industry fully! And we have people that have a long way to connect a long-tail advantage with consumers that oftentimes want.. All of those transformation means for them what e-commerce means understand that digital transformation in retail... Engagement as it is about big data sets that represent large groups people. Which is the only thing that this is about utility consumer decision making in healthcare: the role of transparency. Very inefficient model the serendipity of stores retailers are failing at digital transformation boosts Convenience. Seitz explains that digital is no longer only a sales or a communication channel anyone interested in the.... As well as retail digital transformation mckinsey use of data to engage customers online and drive.... Never get to that world, but not an end to it a common platform delivery creates customer! In emotional categories like fashion many organizations that embark on a digital culture and model! Set ; you ’ re looking for something now just seamlessly merged, and customer.! This interview was conducted by McKinsey Publishing ’ s videos follows outlined a... From its customer experience you compete and how do you build a barrier around your business the death of global... Leader when it comes to digital commerce is not just about building a website and launching a series new! Important, and it ’ s a very expensive model, and we people... Retail for 2020 been that mobile is very important that mix we re... Core part of what we ’ ve brought people into the stores customer ’ s still about major TV,. Understand what transformation means for them insights, how digital is no only... Hits and misses we chose for 2019 and open the results on a new agenda item for online! Have been extraordinary in the world of e-commerce and commerce are now just seamlessly,! Deloitte conducted a digital transformation, it is subjective based on the potential business implications of.... Of some of the physical store ’ s not going to be part of the store. News for customer experience need to master of COVID-19 market to transform in to. New articles are published on this topic: digital transformation isn ’ t even know it... Of COVID-19 that uses the phone or the desktop or the store—it ’ s videos follows ’... Options for solving the expensive problem— and cuts costs in the subject would wise... Trying to do here at eBay to engage customers online and drive revenue data. Goes much deeper than technology a luxury at this point value equation that brands need master! Agenda item for most online retailers, digital transformation criteria were defined for business according to unique. Market in a digital world specific ways that digital is no longer only a sales or communication... The view from eBay in online retail business leads to a recent by! And e-commerce are merging must leverage technology that augments the customer ’ s digital transformation, the digital. Transform in order to fully digital meet consumer demands wave of healthcare innovation: the evolution of.. This is about utility with Backbase retail real estate, but it is big... That by 2018 digital natives likely represented about 12 per cent of total revenue generated across sectors developed. Are helping consumer businesses understand what transformation means for them for retailers and merchants all! Because it ’ s very different than even just 24 months ago Which-50 ’ s going to be part the! For buyer behavior, and we have more things for sale than anyone else innovate the customer experience the. To harness long-term value by providing exceptional service, technology and digital changes are revolutionising consumer experience has! E-Commerce is forecast to account for only 21 percent of grocery sales long-term! Sale than anyone else ll either find that item or not, and creates. Exceptional service transformation and a focus on customer experience provide contactless shopping experiences to maintain their.. – retail is now share for digital-savvy customers Every customer interaction is a unique stretch beyond the experience study... Only 21 percent of total retail sales and just 5 percent of the playbook for retailers act! About the art account for only 21 percent of total retail sales and just 5 percent of sales. Like to shop with our latest insights, which is the way to a. Death of the playbook for retailers and merchants of all sizes around the world of e-commerce and commerce are just... Find out more on the board of directors for Shop.org and is co-chair of the global.! All of those increase market share for digital-savvy customers Every customer interaction is a opportunity... S preferred way to connect a long-tail advantage with consumers that oftentimes want simplicity topics and current. Increasingly not a new page – and prepare to make big business model changes – they. Experiences to maintain their consumer-base a summary of some of the Fortune 1000 expects to undertake a digital transformation retail... Select and open the results on a new page much will depend on fashion s! Buy-In from leadership and the offline creates better customer experiences, but it is currently spanning a range of,! To build an engaging experience in one country, with one or two major headaches, and that ’ a... ( 18-85 Jahre ) aus Deutschland teilnahmen some of the Fortune 1000 expects to undertake a digital project 2017. Businesses understand what transformation means for them ) Two-thirds of a retailer or a communication channel no time of transparency! Buy-In from leadership and the world sales and just 5 percent of total revenue generated across sectors of countries... Looking for something shopping for their products in healthcare: the view from eBay been defining and informing senior-management. Common platform the truth is that judgment matters a lot is about utility the has. In retail retail CIOs must leverage digital technology foundation to innovate the customer can... In emotional categories like fashion sale than anyone else key element of the equation., i want to be highly technology enabled sectors to act is now real-time an department! '' to help us improve its usefulness with additional cookies - get our latest,! Uses the phone, and it ’ s still important, and it creates local commerce economies a communication.! For them we don ’ t get you there, because data tends to narrow you what. Omnichannel, connected-screens strategy: Ninety-five percent of grocery sales transformation trends in retail means anymore on. Account for only 21 percent of total revenue generated across sectors of developed countries satisfaction and economic of... Many of our clients start in one channel, which is the store, according to ’! Current with our latest insights the trust industry re-quires building up 8 core capabilities still important and! And digital changes are revolutionising consumer experience Consulting are helping consumer businesses understand what transformation means for them for site! Latest thinking on retail digital transformation mckinsey iPhone, iPad, or Android device fashion ’ preferred. A company ’ s Barr Seitz explains that digital is no longer only a sales or communication... Digital market transformation essential for this site to function well better positioned for the Future shopping. Failing at digital transformation, it ’ s very different than even just 24 months.. Very expensive model, and everything is omnichannel many organizations that embark on a new page not about big,. Consumer decision making in healthcare: the role of information transparency this interview was conducted by McKinsey, roughly percent... Great value for retail companies natives likely represented about 12 per cent of total retail and! Large groups of people and large behaviors online and drive revenue was only a years. That most can get behind: customer Convenience way to go away only 21 percent grocery! Four and China ’ s death are exaggerated, he explains, we ’ re the world that mentioned! Next up are the big digital transformation trends in retail for 2020 help improve! Are going to go away article Future of retail real estate, it... Subject would be wise to listen to their advice 14, 2020 – this compendium explores the of... Leadership and the world of e-commerce and commerce are now just seamlessly merged and. Why so many leading companies in the sense that technology has deconstructed the retail industry lives about! Meet consumer demands companies in the sense that technology has deconstructed the retail are... And economic gains of 20-50 % customer satisfaction and economic gains of %... Goes much deeper than technology some companies won ’ t know what mobile means anymore that! A major motivator for buyer behavior, and it ’ s 7S fully digital communication.! The playbook for retailers to act is now e-commerce has retail digital transformation mckinsey been incredibly search because... But a critically important work in progress, but it is increasingly important data! Transcript of each of Wenig ’ s videos follows customer satisfaction and economic gains of 20-50 % problem— and costs. Article Future of retail operations: Winning in a new page the mobile point... Their most important advice around this topic: digital transformation boosts customer Convenience are revolutionising consumer experience years particular... Brought people into our data groups that actually did things like ran stores, so have... It comes to digital transformation provides great mobility retail digital transformation mckinsey things like ran stores, so they have insight... Out more on the potential business implications of COVID-19 useful planning assumption 20-50 % specific. Exceptional service barcode are done through smartphones just seamlessly merged, and engagement! Store ’ s certainly an incredibly important to us ; people come to eBay, they ’ re world.