Ruud Schoenmakers: ‘Retailers are becoming digital businesses’

By | News, Retail

The retail market is changing enormously, partially due to the growing success of digital platforms such as Amazon. At the same time, technology is developing further and further and customers are making more online purchases. How can retailers respond to this? Ruud Schoenmakers, IG&H’s new retail partner, shows us.

How will the retail sector look in 10 years?

“Developments are happening so rapidly, it’s actually impossible to look that far ahead anymore. Newcomers, sometimes industry outsiders, are making increasingly large impacts on customer expectations and ‘what it takes to win’ within retail. Until recently it was still possible to downplay these developments. However, these days are now truly behind us.

For example, supermarkets in major cities never used to view restaurants as competition. However, with the current growing success of platforms such as takeaway.com and UberEats, it’s becoming apparent that traditional parties are being affected and need to adjust their business models.”

What is the central challenge facing existing retailers?

“It requires a lot of attention and energy to ensure that the current operation runs smoothly. At the same time, it is becoming increasingly important to change rapidly and to innovate in order to remain relevant to the market.

It is extremely difficult to do two things at once. The question of how to combine these issues in a controllable manner without being hampered by the enormous complexity is causing headaches for many executives.”

What do retailers need to focus on?

“Just like in other industries, such as financial services, there needs to be a realization that the transition towards becoming a digital business is both essential and existential. The moment that you lose clients to new competitors, technology and data science capabilities become your best friend.

At the moment, I would dare to estimate that most retailers currently allocate 90% of their budget to simply keeping the current systems up and running. A mere fraction is used for exceptional, let alone innovative, solutions.

This is not a sustainable state of affairs. It is essential that retailers set up their organizations to be flexible in order to respond to the changing customer demands. Software that supports them in this can lead to a breakthrough, including the high performance, low code platform OutSystems as well as the use of cloud solutions.”

How important will data science become for ‘physical stores’?

“Shop assortments are currently quite static and homogeneous. Data science allows retailers to frequently check what the optimal assortment is for individual locations, leading to optimal turnover and profit margins.

Moreover, data science combined with technology allows retailers to make the switch to real one-on-one interaction with individual consumers via all channels. This is a totally different ballgame to the impersonal and primarily product-based mass communication. Isn’t it a shame that I, a man, keep seeing handbag commercials? It’s a total waste of marketing money!”

How much will organizations have to change internally?

“Successful transformation into a digital business requires different skills, leadership, governance, attitudes, and behaviour. This transition is substantial, impactful, and requires care.

I am very proud of the fact that we at IG&H, as sector insiders, not only can sharpen strategies, but also implement them. A new way of working also requires different behaviour. Our organization’s transformation professionals help executives and employees sustainably adjust their daily work methodology. What’s more, our technology experts can implement the required software so that it stays fast and flexible in the future.”

IG&H and GroupLife combine forces

By | Banking, Health, Insurance, News, Pensions, Retail

Consultancy firms IG&H and GroupLife are moving forward together under the name IG&H, resulting in a specialized consulting group that is able to help realize business and technology transformations from start to finish.

Both companies have in-depth sectoral knowledge, close customer relationships, high quality people and service. By combining their expertise in strategy, organizational transformation, data analytics and technology, they will be able to more effectively help organizations with transformative matters. The new consortium includes more than 220 specialized professionals.

Execution of strategy requires integral approach

Jan van Hasenbroek, managing partner IG&H: “The rapid developments in the technology sector have an enormous impact on the business models of our clients. In order to remain successful in the future, our vision must include addressing organization and technology together. This will lead to corporate strategies being immediately operable, providing concrete results and sustainable organizational transformation. GroupLife has an impressive track record and a proven methodology in business modelling, implementation of technological platforms, and data management. That’s why a collaboration fits well within IG&H’s strategy to continually strengthen its technological ecosystem.”

Wim Groenen and Tom Bottinga, co-founders of GroupLife: “In previous projects with joint clients, we discovered that we had similar ideas about how to address complex business transformations. IG&H knows how to combine its expertise in strategy, data analytics, technology and organizational transformation with sector knowledge. We are delighted with the collaboration and together with IG&H we can make an even greater contribution to the success of our clients.”

About IG&H

IG&H is committed to help leading organisations in the financial services, retail and healthcare sectors. With 160 involved and enterprising professionals, the consultancy and implementation firm, based in Utrecht, helps organizations take steps towards radical customer centricity. They set high standards for themselves and their way of working. With in-depth knowledge and a personal approach, they aid their clients to help them improve the sector. IG&H is recognized as a ‘Great Place to Work’ and puts a lot of emphasis on a high net promotor score.

New innovations are rapidly changing the game of omnichannel business

By | News, Retail, Retail

Looking at the retail innovations and trends in Asia and the US, we see a breakthrough in the retailers-customer dialogue; it will change radically in the next few years! Most disruptive innovations are 100% technology driven and we see some are about to become mature enough to be adopted by mainstream retailers.

How to embrace and take advantage of these innovations to increase customer service, while reducing the inefficiencies of current omnichannel commerce?

[Click here to read the article]