Accenture: Digital innovation to drive trillions of dollars in value

Retailers could unlock $2.95 trillion in value over the next decade simply by investing in transforming, digitally driven business models.



This was revealed in “Painting the Digital Future of Retail and Consumer Goods Companies,” a report from Accenture Strategy. The study surveyed 25,426 consumers across 33 countries during July and August 2016, including 2,532 U.S. consumers. Its goal was to quantify the impact of digital transformation on the retail and consumer goods industries, and consumers, in digitally developed economies over the next decade.



“Out of the $2.95 trillion in value identified, consumers have the most to gain — just over $2 trillion — through cost and time savings,” he added. “The success of retailers and consumer goods companies to unlock value will be dependent on their ability to gain a deep understanding of consumers, embrace disruptive technologies and adopt innovative business models.”



This includes creating a variety of shopping experiences that will give consumers simplicity, convenience or excitement — something they already crave. Today, 37% of U.S. consumers would allow companies to collect their personal data via intelligent devices in return for a better experience or financial reward. Another 37% would subscribe to a service that constantly looks for the best pricing deals on their behalf, and actively recommends which company to switch to, and when.



Meanwhile, over a quarter (26%) of U.S. consumers would use sensor-based digital services that preemptively address their needs without human intervention. Another 24% would subscribe to brands that analyze their shopping history to select products especially for them, and orders them automatically.



“The retail and consumer goods industries will change more in the next 10 years than they have over the past 40,” said Oliver Wright, managing director, global consumer goods lead, Accenture Strategy. “As expectations around cost, choice, convenience and experience continue to increase, consumers will challenge the industry to evolve and innovate which will drive huge growth in digital commerce.”



Among the next frontier of digital commerce comes potential disruption for people and society. Thus, companies, policymakers and regulators need to actively:



• Minimize impact on local communities: With an increasing number of retail stores downsizing or closing due to the rise of digital commerce, local communities need to respond. Businesses and government must establish economic development strategies and partner with communities to repurpose physical space as hubs for experiences, leisure and lifestyle activities.



• Reskill the workforce: Emerging technologies will drive a range of efficiencies which will significantly change the nature of the industry’s workforce. Business leaders and policymakers must focus on accelerating reskilling people, creating partnerships with educational institutions, and influencing public policy to meet the needs of the future workforce.



• Ensure sustainability: Meeting consumer demand for rapid delivery needs to be achieved in parallel to minimizing environmental impact. Shifting to electric vehicles and exploring load-sharing can help while also enhancing delivery efficiency. Furthermore, innovation in packaging design and supporting recycling infrastructure is also critical, helping to build a more circular economy.



“To thrive in the next decade, organizations must aggressively pursue in-novation and be willing to disrupt themselves,” Donnelly said. “The winners will be organizations that prioritize adopting a partnership mind-set to offer customers new value, meet consumer demand for new services through innovation, and implement advanced data sciences to derive deeper customer insight to enable better decision-making.”