Disruptions Give Retailers a Chance to Master All Channels

Rhea-AI Summary

Information Services Group (Nasdaq: III) reports a significant shift in retail technology adoption post-COVID-19, emphasizing omnichannel platforms that link various shopping experiences. As businesses pivoted to e-commerce, many initiated modernization projects, integrating sales channels like curbside pickup and social commerce. The 2022 ISG Provider Lens™ Retail Platforms report identifies Oracle and SAP as Leaders in omnichannel commerce, while Salesforce and others excel in merchandising planning. The focus on data analytics is underscored, highlighting its necessity for adaptive retail strategies.

Positive

• Retailers are investing in omnichannel technology, enhancing customer satisfaction and loyalty.
• The report identifies significant leaders in the market such as Oracle and SAP in both quadrants.
• Increased IT budgets signal a strong commitment to technological modernization among retailers.

Negative

• None.

Companies that adapted quickly to COVID-19 are investing in omnichannel sales and marketing platforms for the long haul, ISG Provider Lens™ report says

STAMFORD, Conn.--(BUSINESS WIRE)-- Retailers around the world are adopting omnichannel technology platforms to seamlessly link all shopping experiences for better customer and business outcomes, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Retail Platforms Global report finds many companies launched major modernization projects following changes in shopping behavior triggered by the COVID-19 pandemic. When pandemic lockdowns began, retailers adapted within days to a rapid shift to e-commerce, activating new sales channels such as curbside pickup, lockers, social commerce and voice commerce. Omnichannel platforms are designed to integrate these and other shopping modes for greater customer satisfaction and loyalty.

“Integrated, omnichannel sales and marketing has become a must-have,” said Sunder Pillai, leader, Retail, for ISG. “Retailers are increasing their IT budgets and working with providers to get a comprehensive view of supply and demand and a unified customer profile.”

Omnichannel sales platforms are designed to let consumers move seamlessly from one channel to another, such as e-commerce to in-store shopping. When customers are able to do this, they spend more and tend to be more loyal, the report says. Platform vendors offer several new capabilities that enterprises need to achieve this. These include “headless” commerce platforms, which allow retailers to quickly integrate and disintegrate sales channels with a click.

Companies also want the ability to track customers’ activity across sales channels, consolidate real-time product and inventory data and use new information sources, such as online search data, to improve merchandise planning, the report says.

AI-driven algorithms are essential for making sense of the volume of data now available to retailers, ISG says. For example, it would be difficult to do merchandise planning based on hundreds of demand factors, in real time, using manual or spreadsheet-based assessment.

“Data and analytics are powerful competitive tools for retailers,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Consumer behavior is changing, and companies need to make the right decisions quickly.”

The report also explores other issues retailers face, including integrating omnichannel platforms with legacy and third-party applications, changing pricing in real time according to customers’ willingness to pay and using AI to analyze brick-and-mortar store layouts.

The 2022 ISG Provider Lens™ Retail Platforms report for global evaluates the capabilities of 26 providers across two quadrants: Omnichannel Commerce Platform, and Merchandising Planning and Management.

The report names Oracle and SAP as Leaders in both quadrants. It names Adobe, Blue Yonder, commercetools, Manhattan Associates, RELEX, Salesforce and SAS as Leaders in one quadrant each.

In addition, Spryker is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant.

The 2022 ISG Provider Lens™ Retail Platforms Global report is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220714005558/en/

Press Contacts:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What does the ISG report say about omnichannel technology adoption by retailers?

The ISG report highlights that retailers are increasingly adopting omnichannel platforms to enhance customer experiences and improve business outcomes post-COVID-19.

Which companies are named leaders in the ISG Provider Lens report?

Oracle and SAP are recognized as Leaders in both the Omnichannel Commerce Platform and Merchandising Planning and Management quadrants.

How has COVID-19 impacted retail technology according to ISG?

COVID-19 has triggered a rapid shift to e-commerce, with retailers launching modernization projects and integrating new sales channels.

What role does data analytics play in retail according to the ISG report?

Data analytics is essential for retailers to adapt to changing consumer behaviors and make quick, informed decisions.