Where Do Australia and NZ Stand in Retail’s Digital Transformation?

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By Published On: August 15, 20180 Comments

Statistics released this week show that a troublingly high number of Australian and New Zealand retailers feel they lag behind the rest of the world when it comes to digitisation.

A strong e-commerce model has become crucial for retailers who want to succeed in the international market. Businesses across the world are going digital, often by partnering with major online companies to streamline their multichannel offerings. Look, for example, at the recent partnership between Alibaba and Starbucks.

So how do Australia and New Zealand compare to their global counterparts in this digital transformation?

Infosys, a multinational consultancy specialising in digital services, has released a research report that aims “to better understand where Australia and New Zealand’s largest enterprises are in their digital transformation journey and what they require to accelerate that journey.”

The study, which surveyed 175 senior business decision makers from Australian and New Zealand companies with revenue of over $1 billion, found that, in contrast to a global 22 percent, only 17 percent of businesses are digitally mature enough to build disruptive business models at scale.

The study ranged across a variety of industries, but responses from the retail sector are particularly noteworthy. Although an encouraging 47 percent of retail organisations feel they are ahead of their international counterparts in becoming more digital, and 23 percent feel on par with global digitisation, there are still 30% who feel behind.

Infosys infographicHow do respondents compare to their global counterparts? (Image supplied.)

“The impact of digital disruption is being felt across the industry,” said Infosys in its press release, noting that 81 percent of the polled retail organisations indicated medium to high levels of disruption. “Yet leaders are encumbered by challenges to digitally transform.”

What are these challenges? A high 57 percent of respondents noted the need to improve the agility and flexibility of processes. Half (50 percent) saw organisational-level transformation as a way to overcome challenges, while 5 percent looked to engagement with transformation partners.

“Being digitally disruptive is not an IT responsibility alone,” said Mimi Lee, Digital Transformation and Change Management Lead at Asia Pacific Infosys; “it is a business imperative that should be driven by all leaders across the business. The technology platform lays the foundation, however the people and the culture are pivotal in enabling change.”

Click here to read the full report.

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