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The realm of Retailing is currently undergoing significant changes across the globe. Cisco Systems, Inc. released the results of a new market study, focused on the evolving retail shopping experience. Their report examined the impact of automation, self-service and omni-channel shopping experiences -- plus, consumer views about providing their personal information in exchange for more personalized services.
The majority (61 percent) of global consumers are open to shopping at a fully automated "self service" store with vending machines and kiosk stations offering a virtual customer service.
Additionally, when "checking out," the majority of consumers globally (52 percent) prefer self-check-out stations in order to avoid waiting in line to make purchases.
The younger consumers were the most accepting of this retail shopping experience: 57 percent of Generation Y (aged 18-29) and 55 percent of Generation X shoppers (aged 30 to 49) prefer self-check-out, while baby boomers (50+) represent only 45 percent.
Overall, the report demonstrates consumer interest in more automated and personalized shopping experiences, the type of connections made possible by what Cisco describes as the Internet of Everything (IoE).
The Internet of Everything phenomenon brings together people, process, data and things to make networked connections more relevant and valuable than ever before. Cisco recently released an Internet of Everything economic analysis that identified a $14.4 trillion in bottom-line business value that will be created over the next decade by the Internet of Everything innovations.
Highlights and Key Facts from the Study
The Cisco Customer Experience Report surveyed 1,511 consumers across 10 countries to examine the perceptions of consumers on their desired retail shopping experience.
Omni-Channel Shopping Experience
- One-third (34 percent) of global consumers use multiple channels when shopping. The survey shows 23 percent of consumers recently made in-store purchases based on research they did online, and 11 percent of shoppers purchased online after seeing it in a retail store.
- Avoiding lines: The majority of consumers globally (52 percent) prefer self-check-out stations in order to avoid waiting in line to make a purchase.
- Price check/product availability: When researching products in the store, 43 percent prefer using their own mobile phone, while 57 percent of consumers prefer using in-store touch screens.
- Rise of the digital mall: The majority (61 percent) of global consumers would be willing to shop in a completely automated store with vending machines with products and kiosk stations offering virtual customer service. And 42 percent of consumers would prefer to shop in these kinds of environments.
- Automated milkman: Almost half (49 percent) of consumers would allow an automated engine to make purchases for replacement products automatically. This could include restocking milk in the refrigerator.
- Budget tracking: Half of global consumers (52 percent) would likely purchase a device to help them stay on budget for clothing and other retail purchases.
- Automated shopping tips: Two-thirds (65 percent) of global consumers are comfortable receiving retail advice based on their location through their mobile device.
- Desire for more personal customer service: Although many shoppers want automation when purchasing, consumers are evenly divided, with 58 percent of consumers preferring help from an in-store associate. And when shopping online, slightly more consumers prefer to instant-message with a sales associate (30 percent), or call one on the phone (28 percent) than send an email (27 percent).
When you follow the proven methodologies of the market leaders, and deploy business technology for competitive advantage, you can fine-tune your current online business processes, improve operational performance and increase productivity.
But if this is the extent of your efforts to date, then I have good news for you -- we now know that there's huge upside potential for new value creation that's far greater than we ever imagined.
The Internet of Everything (IoE) is expected to enable global private-sector businesses to generate at least $613 billion in global profits in 2013, according to the "IoE Value Index" study released by Cisco.
The report -- announced via a global TelePresence event that connected more than 10 international locales -- found firms that optimize the connections among people, process, data and things will generate the largest profits.
The study of 7,500 global business and IT leaders in 12 countries reports that the United States, China and Germany are expected to realize the greatest value in 2013. However, the study also found that corporations could nearly double those profits through greater adoption of business practices, customer approaches and technologies that leverage IoE.
While IoE is already driving private-sector corporate profits, it is estimated that an additional $544 billion could be realized if companies adjusted their strategies to better leverage it.
"The Internet of Everything has the potential to significantly reshape our economy and transform key industries,” said Rob Lloyd, Cisco President of Development and Sales. "The question is who will come out on top and win in this new economy. This study shows us that success won't be based on geography or company size but on who can adapt fastest.”
The Internet of Everything is the networked connection of people, process, data and things, and the increased value that occurs as “everything” joins the network. Several technology transitions -- including the Internet of Things, increased mobility, the emergence of cloud computing, and the growing importance of big data, among others – are combining to enable IoE.
"This study confirms the potential for the Internet of Everything and our ability to make the world smarter, together," said SmartThings CTO Jeff Hagins, who participated in the global Cisco event. "With the SmartThings platform and open community, we believe that more developers and inventors will be able to participate in the value chain and ultimately bring the physical graph to life.”
The Internet of Everything Value Index builds on research that Cisco conducted earlier this year, which found that global businesses could pursue as much as $14.4 trillion over the next decade by leveraging IoE to improve operations and customer service.
Among business leaders who participated in the IoE Value Index:
- 69 percent said they thought the global job market would stay the same or improve due to IoE.
- 89 percent thought wages would improve or stay the same.
In addition, business leaders believe that the Internet of Everything will help drive better information security – an indication that they understand the importance of security and privacy to the growth of IoE. Fifty percent of business leaders said IoE would improve security while 26 percent thought there would be no change.
While businesses in the United States, China and Germany are poised to realize the greatest level of profits in 2013, IoE value is spread across firms around the globe. The 12 countries included in the study, which account for nearly 70 percent of global Gross Domestic Product (GDP), are expected to realize the following value from IoE in 2013:
While the Internet of Everything is driving a huge amount of corporate profits, an additional $544 billion could also be generated in 2013 if companies adjusted their strategies to better capitalize on it. “That figure should be a wake-up call to businesses large and small that IoE can significantly add to their bottom line,” added Cisco’s Lloyd.
To capture more value in the IoE Economy, companies should:
- Invest in high-quality technology infrastructure and tools.
- Adopt and follow inclusive practices that enable all employees to contribute.
- Develop effective information-management practices.
To maximize value from the Internet of Everything, firms should focus on the IoE-driven capabilities that will benefit their industries most:
- Manufacturing firms: real-time, multidimensional data analysis; integrated video collaboration; remote tracking of physical assets.
- Energy firms: integration of sensor data; ability to locate experts; predictive analytics.
- Retailers: predictive analytics and data visualization; BYOD and interacting with customers using rich media; mobile payments and remote customer monitoring.
Among all industries, services ($158.8 billion) and manufacturing ($103.1 billion) are expected to realize the greatest IoE value in 2013. To learn more about the upside potential view the following video, then visit www.InternetOfEverything.com to discover how to realize the full potential in your business.