Top 10 digital technologies
set to change the game
Australia has a problem.
4. Cybersecurity
When it comes to innovation in technology, we’re falling
behind. This is especially concerning for retailers, in an
industry that is undergoing some of the most drastic
changes in decades. A thriving innovation system could
create more than $24 billion in value by 2034, and create
over 500,000 jobs.
With most transactions and data being held online,
cybersecurity becomes a crucial issue. But security doesn’t
always start with prevention… but in detection too. Last
year Target in the United States suffered an attack which
exposed tens of millions of credit card numbers, and it
took the company days to find out it had been breached.
With retailing now almost completely globalised, the
proportion of offshore purchase compared to domestic is
on the rise and is predicted to reach 44% of all online
retail by 20171.
5. On-demand business and technology services
But many businesses, especially in fashion, have not only
adapted, but are doing extremely well in the digital
environment. Businesses like ASOS and Shoes of Prey are
harnessing new buyers through a combination of a digital
presence, social media prowess and partnerships with
bricks and mortar outlets.
As part of our 6th Annual Digital IQ survey, we identified
10 technology trends that are top of mind among
executives and will be industry game changers!
1. Business analytics
With so much data now able to be captured through
digital means, businesses have the ability to track and
analyse metrics and transactions. The most influential and
successful businesses will be those who capture those
analytics and extract useful information and practical
changes.
2. Socially-enabled business processes
It isn’t enough to just listen on social media. The next step
requires bringing social media into the core of business –
allowing employees to collaborate over social means.
Research shows businesses using enterprise social media
are able to be more productive.
3. Mobile customer engagement
The ‘always on’ customer is infinitely connected, expecting
immediate, relevant and quality experiences - now!
Retailers, and other businesses, need to provide services
constantly – doing any less will mean customers simply
move on to the next provider.
6. Sensors
The advent of connected devices allows businesses to
actually track what they’re doing more accurately than
ever before. These devices help businesses track user
movements within stores and push information via
smartphones. The ability to not only reach the customer
in-store, but detect which areas of the physical store aren’t
receiving attention is crucial information for a retailer. It’s
yet another example of how sensor technology can provide
a more accurate representation of the store more than
ever before. Products like iBeacon from Apple are already
being used by US retailers, such as Safeway and Giant
Eagle.
7. Robotics
Robotic help has been part of manufacturing for years
now. But robotic technologies are making a debut beyond
this and becoming an everyday part of ‘warehouse life’.
Amazon is using robotics in its warehouses to automate
shipping procedures, and companies such as Quiet
Logistics in the US are using robots to move shelves of
merchandise. The future of robotics is moving out of the
assembly line, and retailers are some of the first converts.
Mobile is the primary form of interaction for many users,
and as digital natives become the dominant demographic,
this will only become more important. Especially for
retail, the ability to purchase or browse on any platform is
crucial. Businesses will actively fall behind if they can’t
fulfil that requirement.
1www.digitalinnovation.pwc.com.au/borderless-commerce-globalisation/
R&C Outlook June 2014
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Top 10 digital technologies set to change the game
8. Battery and power
technologies
Advancements in battery technology
have allowed smartphones to become
the dominant form of communication.
But research in this area has hit a
roadblock during the past few years.
As the internet becomes more
connected with devices coming
online, battery power is set to see
rapid improvement if this research
continues – the connected device
revolution depends on it.
9. 3D printing
The 3D printing craze may not have
hit the mainstream yet, but for small
businesses this is a huge advantage allowing them to create prototypes
without relying on larger
manufacturers. For retailers, the 3D
printing trend represents a massive
change. Soon, the ability for
consumers to create their own small
pieces of merchandise could cut them
out of the equation – making
blueprints for those products in
demand.
Food for thought: A recent
Kickstarter campaign for a homebased 3D printer gained nearly $3
million more than it’s $50,000 target.
10. Wearable technology
The wearable technology market has
taken off in the health sector, with the
rise of products from brands such as
Nike and FitBit. With larger tech
businesses such as Samsung and
Google promoting their own
products, the wearable computing
market is here to stay.
For more information,
please contact:
John Riccio
National Digital Change Leader
+ 61 3 8603 4968
[email protected]
The real transformation aspect of
wearable tech will not be how these
products are sold, but rather what
they allow consumers to do. Although
apps already provide customers with
a way to compare prices in store,
doing so through a pair of glasses or
through a watch simply makes that
process even shorter. For retailers,
the importance lies in understand and
adapting these technologies to the
user experience.
These trends are transforming every
industry in one form or another.
Retailers have shown their ability to
survive by adapting to digital trends
and doing things differently. But
innovation doesn’t stop, and as digital
natives continue to become the
dominant demographic more change
will be needed. Success and
prosperity lies in ensuring that
innovation never slows down. How
often do you ask the question… how
are we innovating?
About Digital Change
We focus on enabling your business to
create value from the digital economy.
Offering a collaborative and
integrated end-to-end digital
consulting solution – we assess your
business to help you make sense of
both the drivers of disruption, as well
as the levers that can be enhanced by
Digital Change. Our core team has a
focus across all key industries and will
work with you to design the best
approach for your business.
An integral part of our offering,
Digital Pulse provides actionable
insights and thought leadership on
digital trends, strategy, technology,
innovation and disruption – aiming to
empower your digital journey.
For more insights, please visit Digital
Pulse:
www.pwc.com.au/digitalpulse
R&C Outlook June 2014
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www.pwc.com.au/industry/retail-consumer
Retail & Consumer contacts:
Stuart Harker
Australian Retail & Consumer Goods Consulting Leader
Global Retail & Consumer Goods Advisory Leader
+61 3 8603 3380
+61 418 339 231
[email protected]
Australia:
John Riccio
National Digital Change Leader
+61 3 8603 4968
+ 61 419 275 097
[email protected]
Paddy Carney
Partner
Assurance
+61 2 8266 7312
[email protected]
Lisa Harker
Partner
Assurance
+61 3 8603 2147
[email protected]
New Zealand:
Julian Prior
Partner
+64 9 355 8591
[email protected]
Peter Konidaris
Partner
Specialist Taxes and National
Business to Consumer Leader
+61 3 8603 1168
[email protected]
Suzi Russell
Partner
Specialist Tax
+61 2 8266 1057
[email protected]
Sarah Saville
Partner
Corporate Tax
+61 2 8266 8665
[email protected]
Daniel Rosenberg
Partner
Private Clients
+61 3 8603 3886
[email protected]
Kate Warwick
Partner
Advisory
+ 61 3 8603 3289
[email protected]
If you have any feedback for
us, or if there are any topics or
issues you would like to see in
upcoming editions, please
contact:
Stuart Harker
+ 61 3 8603 3380
+ 61 418 339 231
[email protected]
Andrea Marffy
R&C Industry Manager
+ 61 3 8603 3245
[email protected]
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