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Retail is the segment that has seen the most digital transformation of the business
While 84% of global companies say that digital transformation is critical to their survival over the next five years, only 3% of them have completed enterprise-wide transformation efforts. This is what shows "SAP Digital Transformation Executive Study: 4 Ways Leaders Set Themselves Apart", one of the most comprehensive studies on the subject, carried out at the initiative of SAP. Based on the results of interviews with more than 3,000 senior executives in 17 countries, the study identified challenges, opportunities, value and relevant technologies used in digital transformation.
Scenario in Brazil and Latin America.
More than half of companies in Latin America and Brazil expect to increase their revenues between 2017 and 2018, but they are aware that, in the next two years, the speed of changes in the market should increase, generating a need to also accelerate the "go to market".
Claudio Muruzabal, president of SAP LAC and the Caribbean, also highlights the importance of digital transformation for all industries, not just retail. "It's no longer a simple choice. Digital transformation is the essential engine for revenue, profits and market growth for companies in all segments."
The survey carried out by SAP fully endorses the executive's observations, pointing out that 56% of Brazilian companies expect revenue growth of 5.1% to 10% from the digital transformation starting next year. And 51% of them want to accelerate the market.
While today companies invest more in Big Data and Analytics (63%), Security Platforms (59%), Mobile (51%), Cloud (50%), Iot (45%), in the next two years they will invest primarily in Big Data and Analytics ( 78%), Cloud (61%), Security Platforms (58%), IoT (53%), Mobile (44 %), Machine Learning / AI (29%).
The study also shows that the biggest challenges to digital transformation initiatives in Brazil are lack of leadership (24%), lack of management (19%) and lack of skills in the workforce (16%).
Impact on retail
The retail industry is undergoing digital transformation. The sector is at a time full of opportunities and in which innovation is key to approaching and dynamizing the conversation with a new generation of consumers, much more attentive and demanding. According to Nielsen data, already in 2018, millennials will represent half of global consumption and this number will increase to 75% in 2025.
"Retail is consolidating itself as one of SAP's strategic industries in Latin America. In the first half of this year, sales in this sector totaled double digits, both in cloud solutions and in on-premises installations", says Muruzabal. He highlights that the moment for retail is that of an industry undergoing digital transformation. "We are in a very special moment for the sector, and the speed with which this segment grows and transforms does not happen by chance, it has everything to do with the models and changes through which the consumer is today".
For Muruzabal, more than ever, the customer must be the main focus of attention. "Customer experience is the gateway to successful digital transformation and day-to-day tools such as emerging data to understand customer behavior patterns; omnichannel to manage the relationship; and technologies emerging technologies such as machine learning – even capable of detecting a person's mood according to their comments – are vital to generate the responses desired by companies", he explains.
In Brazil, one of the large companies operating in retail, which has already realized the new reality and updating its business, taking it to the cloud, is Grupo Boticário, the third largest cosmetics company in the country and the largest franchise network in the world. With more than 4,070 stores in Brazil and nine other countries, Boticário started the digital transformation journey with a variety of SAP solutions to simplify its business.
“In addition to the significant value we offer to retailers around the world, including Macys, Burberry, Mink, L'Oreal, The BodyShop, and, in Latin America, to companies such as Grupo Éxito, Liverpool, El Palacio de Hierro, Mabe and the Brazilian Marisa stores, which are advancing their digital transformation plans with our participation, we are focused, with our expertise and experience, on leveraging digital transformation for companies of all segments and sizes", emphasizes Muruzabal.
Scenario in Brazil and Latin America.
More than half of companies in Latin America and Brazil expect to increase their revenues between 2017 and 2018, but they are aware that, in the next two years, the speed of changes in the market should increase, generating a need to also accelerate the "go to market".
Claudio Muruzabal, president of SAP LAC and the Caribbean, also highlights the importance of digital transformation for all industries, not just retail. "It's no longer a simple choice. Digital transformation is the essential engine for revenue, profits and market growth for companies in all segments."
The survey carried out by SAP fully endorses the executive's observations, pointing out that 56% of Brazilian companies expect revenue growth of 5.1% to 10% from the digital transformation starting next year. And 51% of them want to accelerate the market.
While today companies invest more in Big Data and Analytics (63%), Security Platforms (59%), Mobile (51%), Cloud (50%), Iot (45%), in the next two years they will invest primarily in Big Data and Analytics ( 78%), Cloud (61%), Security Platforms (58%), IoT (53%), Mobile (44 %), Machine Learning / AI (29%).
The study also shows that the biggest challenges to digital transformation initiatives in Brazil are lack of leadership (24%), lack of management (19%) and lack of skills in the workforce (16%).
Impact on retail
The retail industry is undergoing digital transformation. The sector is at a time full of opportunities and in which innovation is key to approaching and dynamizing the conversation with a new generation of consumers, much more attentive and demanding. According to Nielsen data, already in 2018, millennials will represent half of global consumption and this number will increase to 75% in 2025.
"Retail is consolidating itself as one of SAP's strategic industries in Latin America. In the first half of this year, sales in this sector totaled double digits, both in cloud solutions and in on-premises installations", says Muruzabal. He highlights that the moment for retail is that of an industry undergoing digital transformation. "We are in a very special moment for the sector, and the speed with which this segment grows and transforms does not happen by chance, it has everything to do with the models and changes through which the consumer is today".
For Muruzabal, more than ever, the customer must be the main focus of attention. "Customer experience is the gateway to successful digital transformation and day-to-day tools such as emerging data to understand customer behavior patterns; omnichannel to manage the relationship; and technologies emerging technologies such as machine learning – even capable of detecting a person's mood according to their comments – are vital to generate the responses desired by companies", he explains.
In Brazil, one of the large companies operating in retail, which has already realized the new reality and updating its business, taking it to the cloud, is Grupo Boticário, the third largest cosmetics company in the country and the largest franchise network in the world. With more than 4,070 stores in Brazil and nine other countries, Boticário started the digital transformation journey with a variety of SAP solutions to simplify its business.
“In addition to the significant value we offer to retailers around the world, including Macys, Burberry, Mink, L'Oreal, The BodyShop, and, in Latin America, to companies such as Grupo Éxito, Liverpool, El Palacio de Hierro, Mabe and the Brazilian Marisa stores, which are advancing their digital transformation plans with our participation, we are focused, with our expertise and experience, on leveraging digital transformation for companies of all segments and sizes", emphasizes Muruzabal.
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