IDC Guides Retailers Through Retail Business Model Innovation in New IDC MaturityScape. Retail C-suites’ top priorities for the next five years revolve around innovation, digital supply chain, ecosystem enablement, and customer experience. Progress in these four macro-areas is leading retailers toward what IDC defines as new “commerce everywhere” business models, architected to generate value in the ecosystem beyond selling products and services to consumers. Globally, 90% of retailers feel the pressure to evolve toward customer-experience-based business models, according to the IDC Retail Innovation Survey 2018. Despite the clear importance of innovation in long-term agendas, when it comes to execution, retailers are facing significant challenges in prioritizing specific innovation missions in adopting an innovation model and building the business case for innovation.
The new IDC MaturityScape: Retail Business Model Innovation demonstrates the significance of conceiving retail innovation beyond mere new technology implementation, positioning it in the broader perspective of retail business model innovation. This IDC study describes the key characteristics of the five maturity stages of retail business model innovation, ranging from the lowest Ad Hoc stage (defined as “stuck in legacy”) to the most mature Optimized stage (defined as “innovation-culture-driven”). It shows how retailers should fundamentally aim for business model innovation through the development of an innovation culture, the definition of an innovation strategy, execution based on a retail commerce platform, and the attainment of long-term profitable growth — building up what we call retail innovation excellence.
“Retail innovation directed at commerce everywhere business models is the key for long-term profitable growth,” said Ivano Ortis, vice president, IDC Retail, Manufacturing, and Financial Insights. “Retailers have the opportunity to generate new value across the extended retail value chain through retail commerce platforms and data-driven internal and external collaboration. Retailers should carefully assess their business model innovation maturity according to the four core dimensions of vision, people, process, and technology. This will enable them to identify the next best steps to advance toward the Optimized maturity stage, which is characterized by a single innovation strategy.”
IDC Retail Insights assists retail businesses and IT leaders, as well as the suppliers that serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing asset-intensive, brand-oriented, technology-oriented, and engineering-oriented retail industries.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a wholly owned subsidiary of IDG, the world’s leading technology, media, research, and events company.