IDC Retail Insights Arms Retailers With IoT Technology Strategy

New report outlines strategic IoT plan to guide the reduced cost of ownership of IoT technologies, and enable continued agility and innovation

IDC Retail Insights recently announced the availability of a new report, “Business Strategy: Developing an IoT Technology Strategy,” (Document# RI250271), which outlines how retailers must plan now for IoT, even if IoT hasn't made it to the top of the priorities list. According to the new report, applied IoT technology positively impacts top and bottom line business performance by improving omni-channel operations and enabling personalized and contextualized interaction with consumers. Understanding the technology landscape and defining a roadmap for IoT implementation requires uncommonly long range planning, but is rewarded with reduced long term implementation costs and total cost of ownership (TCO). 

The convergence of cloud, mobile, big data/analytics and sensors has created an opportunity for retailers to engage consumers and employees in radically new ways.  Within 5 years consumers will expect that retailers engage them with personalized and contextualized interactions. In the same time frame, if the retailer hasn't figured out how to improve real time inventory accuracy to 98% or better, they will struggle to close the online or click and collect sale.

 This report provides the following advice for retailers:

• A definition of IoT technology
• A thorough examination of the technology landscape for IoT (for retailers)
• Specific steps to developing a IoT technology strategy
• Guidance for driving retail IoT programs forward

Leslie Hand, research director, IDC Retail Insights, reports that, "Retailers can improve operations, reduce risk and loss, and wow the consumer with IoT enabled capabilities. Now is the time to establish a strategy and develop a roadmap for IoT. A well thought out plan will guide the reduced cost of ownership of IoT technologies, and enable continued agility and innovation. "

In another new report announced today, Business Strategy: Understanding the IoT Use Cases For Retail, many of the most common use cases that are being implemented today are discussed including product tracking / traceability, interactive consumer engagement and operations, mobile payments, asset management and fleet and yard management.

The IoT journey, rich in opportunities, is also full of challenges – the biggest of which is enabling tactical applications sometimes in isolation of a plan for an architecture designed for IoT. IoT requires an event oriented paradigm, which includes listening, bi-directional messaging, information distribution, and communications over a variety of networks. The architecture for IoT stretches the limits of retail legacy networks.  When evaluating IoT technologies, IDC Retail Insights recommends retailers gain an understanding of the technology landscape for the variety of technologies and the related intersection points as soon as possible

The new report outlines specific steps to developing a IoT technology strategy and emphasizes that retailers interested in engaging the omni-channel consumer with consistent personalized and increasingly contextualized physical and digital interactions, should consider how to build an architecture for IoT that will continue to adapt to consumer interaction patterns and needs. Meanwhile, technology vendors and consultants should help retail enterprises define and understand the IoT opportunities and the path forward.

About IDC Retail Insights
IDC Retail Insights assists retail businesses and IT leaders, as well as the suppliers who 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 the retail industry. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. For more information, visit www.idc-ri.com.