Approximately 83 percent of enterprises in the retail sector have seen an increase in their enterprise ICT budget in 2022 compared to 2021.
The growth in ICT spending among enterprises in the retail sector was driven by the adoption of digital technologies for streamlining supply chains and improving customers’ experiences, found GlobalData, a leading data and analytics company.
The report reveals that about 55 percent of respondents claimed that there has been a 5 percent increase in their enterprise ICT budget in 2022 compared to 2021.
Another 28 percent claimed that there has been a significant increase (greater than 6 percent) in their enterprise ICT budget in 2022 compared to a year earlier.
Retailers are utilizing ICT technologies to enhance the shopping experience for their customers, boost operational effectiveness, enhance industry competitiveness, and implement digital transformation of their businesses.
“We see increased investment on emerging technologies such as Internet of Things (IoT) which helps in monitoring the overall supply chain process, but on the other, we see a greater emphasis towards investments in contact centers and communication solutions that help in transforming the customer communication channel to improve customer experience,” Aasif Iqbal, Technology Analyst at GlobalData, said.
More than 60 percent of respondents said that their hardware and software budget allocation towards communication devices and communication and collaboration software increased in 2022. The retail sector has been prioritizing upgrading existing communication & collaboration tools.
France-based retailer Carrefour is upgrading its internal communication, as well as customer interaction using multiple communication platforms and services provided by social media company Meta.
Managing customer experience in a rapidly evolving retail environment, with almost universal access to smartphones and social media, is also one of the key reasons for companies’ increased focus on social media-based communication tools, which allow them to promptly respond to customer requests as well as potential complaints.
More than 65 percent of the respondents from the retail sector confirmed their enterprise ICT budget allocation for disruptive technologies has increased in 2022 over 2021 with IoT and edge computing proving to be the most popular investment areas.
GlobalData’s report, ‘Enterprise ICT Investment Trends Retail’ is based on the company’s ICT customer insight survey between May 2022 and June 2022. The survey respondents included senior executives involved in IT decision making in enterprises cutting across several verticals and geographies.