The future of work? Modern working ideas are often still nonsense in the retail industry. Not to mention mixed work models, such as remote work and home office. In fact, the retail industry is said to have a relatively high online affinity, at least when it comes to online transactions and omnichannels. But this affinity seems to stop at the digitization of the workflow.
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The Covid-19 pandemic once again showed many retail companies that they still have some work to do in terms of digitalization and omnichannel. However, what should have attracted more attention is the lack of modern working models.
Digitization and the trend toward the “workplace of the future” are also important factors for the success of the retail industry. IDG Research Services and ServiceNow as exclusive research partners conducted a “work shift” study that shows this. The results available now are an overview of six areas (manufacturing, finance, telecommunications and technology, logistics, life sciences, pharmaceuticals, and trade), which are considered the cornerstones of the German economy. The results were determined through qualified interviews with 525 C-level and IT managers from DA-CH regional companies (with at least 1,000 employees). Retail and wholesale including online transactions conducted 107 interviews.
So much: In recent years, the industry has successfully invested in online shopping and corresponding structures, but it has almost completely ignored topics such as future workplaces and remote work. Is this another challenge for the retail industry?
IDG’s research shows that the difference between offline and online is clearly reflected in the digital context. Two-thirds of all retail companies in Germany sell products through fixed and online methods. Only 6% of people specialize in shopping on the Internet market. Companies in this field have already adopted key digital processes.
On the other hand, fixed retail is generally still behind, unable to provide customers with online shopping options. The Covid-19 pandemic only illustrates this again, because fixed retail is one of the biggest losers of this crisis. There are many reasons for the lack of a digital strategy: Many people are afraid to cannibalize their traditional branch businesses. Others avoid investing in a functioning online store and move towards omnichannel.
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In addition to online stores, there are other concepts that can give classic retailers a real competitive advantage. For example, pick-up or delivery services or style suggestions via web chat can make a difference.
However, what the Covid-19 pandemic really reveals is that from the perspective of “anytime, anywhere”, the retail industry pays the least attention to the concept of “future workplace”. But it is also clear: Just like online retail, the workplace of the future will require a fully functional infrastructure with seamless processes and digital workflows.
Although it is said that the industry has a certain online affinity, less than 20% of the respondents can imagine such a scenario: all employees can access all the data and systems related to it from anywhere. This is a very shocking judgment, showing that in all sectors, the urgency of retail and process digitalization is considered low. Many processes are still handled manually or digitally to a limited extent.
The potential of retail digitization is great. An obvious example is the human resources (HR) recruitment process. The digitalization process is driving new developments.Instant platform® The HR Starter app provided by ServiceNow makes the recruitment process easier for employers and potential employees. The HR manager digitally guides all the routines his company provides for the recruitment process.
Applicants will receive a link containing personal access data and passwords for the advertising location. They can use a smartphone or tablet to log in to a potential employer’s system and learn in advance the details of the workplace, the scope of responsibility or their colleagues. The app provides the option to select the necessary training courses and order the necessary work clothes if necessary. Then, the background knowledge and appearance of the newcomer can be done on the first day of work. All recruitment processes operate on this digital track-error-free, legally compliant and transparent.
The retail industry has a positive assessment of its own IT structure: it describes itself as a delivery department and business enabler. The business decision makers surveyed rated the IT organization as good.
However, there are some obstacles: the level of automation is not very advanced in the industry, and it is a problem for decision makers. This shows that the people in charge of IT and business know that action is needed, but it is likely to fail due to the corresponding driver for this change. Even the Covid 19 pandemic has not changed.
You can find out how retail can benefit from the digital process in the industry keynote on October 6, 2020: as part of our Digital Immediate Work Conference. Here, I discussed the current challenges of fixed retail and corresponding solution concepts with Klaus Peter Münstermann, an industry expert from T-Systems. Don’t miss the customer meetings with H&M, Coca-Cola’s European partners and many well-known companies. I look forward to seeing you!
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