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1、Click here or press enter for the accessibility optimised versionClick here or press enter for the accessibility optimised versionExecutivesummaryDigital commerce is showing signs oflosing steam.After booming in2020-2022,1growth returned to nearpre-pandemic levels.Now,though,with,global inflation re
2、aching a15-year high of 8.8%in 2022,digitalcommerce growth is in peril.2Our research found that to retain andincrease customers,companies needto go beyond high-quality products atcompetitive prices,and back themwith superior digital experiences.Our global survey of 2,500 companiesacross 12 industrie
3、s analyzed thepractices behind exceptional digitalcommerce outcomes.We considered38 digital commerce capabilitiesacross five stages of the customerjourney:discovery,evaluation,purchase,after sales,and continuousengagement.We also examinedcritical aspects of digital commerceoperations:organization st
4、ructure,technology architecture,analytics,payments,system integration,anddesired goals or outcomes.The Infosys Knowledge Institute foundthat the necessary ingredients foroptimal digital commerce arepersonalization,a flexiblefoundational architecture,andleadership involving sales andtechnology teams.
5、Get personalization rightOur analysis indicates that the moredigital capabilities a companyimplements,the better it performs onstrategic,operational,customer,andfinancial outcomes.However,each capability impacts onlya few specific business outcomes.Thismeans it is critical to understandwhich capabil
6、ities actually helporganizations fulfill their goals mosteffectively.Two personalization initiatives greatlyimprove performance:(a)personalized offers and pricing,and(b)personalized customer service andcontext persistence across channels.These capabilities increase acompanys likelihood of reaching t
7、hetop-performing quartile performanceby 13%.However,only a minority haveimplemented them 18%havepersonalized offers and pricing,and39%have personalized customerservice.For personalization to succeed,companies need to build a strategy forpersonalization,implement thetechnical pathways,and establish K
8、PIsfor success.Personalization requiresboth tech-and business-centricleadership.Executive summaryRethink e-commerceleadershipOur data indicates that companieswhere digital commerce sits underchief revenue officers(CROs)or salesofficers(CSOs)perform better.However,just 5%of our surveyedcompanies have
9、 this organizationalstructure,while 38%have technologyleaders driving digital commerce.Currently,customer-facing leaders donot determine the vision for digitalcommerce capabilities likepersonalization.Instead,leaders suchas chief marketing officers(CMOs),CSOs,and CROs,who focus ondelivering value to
10、 customers,drivepersonalization strategies.As customer-centricity increases inimportance,this misalignment inleadership will create a bigger deficitin digital commerce performance.Technology is clearly the foundationof digital commerce.But our researchshows that technology is moreeffective with busi
11、ness vision andcustomer insight.Businesses should bring sales,marketing,and technology leaderstogether to drive the best outcomes.Shift to microservices andAPI-firstWe see a shift toward microservices-based and Application ProgrammingInterface(API)first architectures thatfacilitate third-party integ
12、rations andprovide the flexibility to handlecontinuously evolving technology andcustomer preferences.Half(51%)of the companies wesurveyed have already adoptedmicroservices-based and API-firstarchitecture in some form,and around95%plan to do so by the end of 2024.Although monolithic digitalcommerce p
13、latforms continue to beeffective,fewer companies considerthem because they are less adaptableto new capabilities.These traditionalplatforms include fully customized all-in-one solutions and monolithicsystems with predesigned features.Incontrast,microservices and API-firstcapabilities give companies
14、theflexibility theyre looking for its openstack enables businesses to build theirown microservices or integrate third-party microservices through APIs.Companies need to rebuild theirdigital commerce initiatives to alignwith their goals.This requires a holisticreview of six aspects organizationalstru
15、cture,technology architecture,digital capabilities,system integration,payments,and analytics.To effectivelysail through the ongoing wave ofdigitization,turn the page for our fourrecommendations for businesses.What are your interests?(Select all that apply)POST ANSWERCapabilities that improvecommerce
16、 performanceFrameworks for digitalcommerce architectureRecommendations fordigital commerceleadershipStrategies to growrevenue and profitPractices that reducecostsRecommendaRecommendations:Etions:Ev valuaaluatte y e your digitour digital commeral commerce orce organizganiza ation and initiation and i
17、nitiativ tives estto align with beso align with best t t technology and prechnology and prac acticesticesImplement morecapabilitiesPrioritizepersonalizationIntegrate sales andtechnology leadersAdopt microservicesand API-first approachClick here or press enter for the accessibility optimised versionH
18、ow to uncover digital commerceeffectivenessA couple of years ago,digitalcommerce promised to dominate theB2C and B2B markets.But that growthcurve has stalled.Digital commercewas estimated to have leaped aheadby five years in the initial months ofthe pandemic.3During the April-June2020 quarter,Walmar
19、ts digitalcommerce sales grew 97%year-on-year(YoY).4Amazons sales during thesame period grew 40%YoY to$88.9billion.5But as restrictions eased,consumersfell back into their old habits of goingout,see products firsthand,and bringthem home immediately.According toan IMF study across 47 countries fromJa
20、nuary 2018 to September 2021,theonline share of total spending jumpedfrom 10.3%in 2019 to 14.9%at thepeak of the pandemic,but then fell to12.2%in 2021.6As of early 2022,theshare of online spending across thecountries in the IMF study was only 0.6points higher than it would have beenwithout the pande
21、mic.Globally,companies struggle withgeopolitical and supply chain issues,as well as economic slowdown andhigh inflation.7Key priorities today areto cut costs,improve cart-to-orderconversions,and reduce customercomplaints.To uncover digital commerce bestpractise in these market conditions,the Infosys
22、 Knowledge Institutesurveyed 2,500 businesses across 12industries in 20 countries,with eachcompany having revenues greaterthan$500 million(see Appendix A).The research asked each respondentto rate their performance over thepast two years on 12 desired businessoutcomes.These outcomes coveredcustomers
23、,financials,strategy,andUncovering digital commerce effectivenessThe research identified and assessed five key aspects of digital commerceplatforms:1.A commerce platforms key digital capabilities relevant to customersof business-to-consumer(B2C),business-to-business(B2B),andbusiness-to-business-to-c
24、onsumer(B2B2C)companies.2.The organizational structure,comprising the leadership andstructure of roles across functions.3.The underlying technology architecture,or the foundationalstructure,of a digital commerce platform.4.The analytics use cases of digital commerce operations.5.Other integrated bus
25、iness systems(such as inventory management,product information,customer information,pricing systems forimproved transparency and flow of data within the organization.operations,and included outcomeslike cost reduction,increasingcustomer retention,and improvingapp performance metrics.Respondents were
26、 then assignedpoints based on their self-reportedperformance on these outcomes,andcategorized as below intoperformance tiers based on theirscore:Finally,we used linear regressionmodels to understand which digitalcommerce capabilities impactedperformance scores or increased thelikelihood of being in
27、the top tier forperformance.Bottom tier=Performance score ofless than 5Middle tier=Performance score of 5or 6Top tier=Performance score ofgreater than 6Click here or press enter for the accessibility optimised versionChangingprioritiesDigital commerce priorities areshifting.Our study reveals thatfin
28、ancial prudence will overtakecustomer-focused outcomes this yearas companies aim to reduce the costsof customer acquisition,delivery,fulfillment,returns,and other digitalcommerce operations.This shift toward financial outcomesmakes sense when you consider thatcompanies face record inflation,theRussi
29、a-Ukraine conflict disruptingsupply chains,and weak economicgrowth.8Financial prudence takesprecedenceThere is a slight shift in priority for thenext two years.Improve cart to orderconversions moves from third to thetop desired outcome,while reducecustomer complaints falls to rank six.Customer delig
30、ht is still imperative,though financial outcomes take thespotlight.Reduce costs gets a significant jumpup in priority,rising from rank five inthe past two years to rank three forthe next two years essentiallyexchanging places with customerretention rate.Again,improve supply chain andinventory manage
31、ment metricsremains the least prioritized outcome,while strengthen paymentscapabilities and infrastructure movesup from the second-least to the third-least priority.Similarly,expandproduct portfolio,improvetransparency and information flowwithin the organization,and improveuptime for website or app
32、remain inthe bottom five.Customer outcomes areparamountOver the past two years,digitalcommerce initiatives focused onreducing complaints and improvingcustomer retention rates.Of thesurveyed companies,30%rankedthese outcomes in the top three oftheir five most desired outcomes(Figure 1).Customer delig
33、ht was the top priority,followed by financial,operational,andstrategic outcomes.The next threemost desired outcome,in order ofimportance,were improve marketingreturn on investment(ROI),reducecosts,and increase basket size orrevenue per user were the next threemost desired outcomes.Changing prioritie
34、sWhat is your toppriority?POST ANSWERCustomer delightFinancial prudenceStrategic alignmentOperational excellenceThe two lowest prioritized outcomesin the past two years were improvesupply chain and inventorymanagement metrics and strengthenpayment capabilities andinfrastructure.Many companies alread
35、y coverinventory management well,so theynow focus on other pressingoutcomes.Payment management iscurrently ranked at the bottom of thelist,as many companies may not beproficient in it yet.Figure 1 reveals the top sevenpriorities for respondents to oursurvey,and how they changedovertime.Figure 1:Desi
36、red outcomes by share of respondents ranking them in the top three Past two years and next twoyearsSource:Infosys Knowledge InstituteClick here or press enter for the accessibility optimised versionMore digital capabilities,betteroutcomesThe more digital commercecapabilities companies adopt,thebette
37、r they perform.We created ameasure of adoption based on aweighted average of capabilitiesadopted,with each capabilitys impactchanging based on its difficulty toadopt.For example,adopting verifiedreviews is weighted less whencompared to adopting digital twinsdue to complexity.We furthergrouped respon
38、dents based on thismeasure and calculated the averageperformance score for each group(Figure 2).Finally we used multivariate analysisto determine the effect of adoption onperformance.We found that a 10%increase inadoption correlates with a 3%increasein performance on customer,financial,and strategic
39、 outcomes,whencontrolling for outside factors.Figure 2illustrates that the top 30%ofcapability adopters outperformed therest on customer,financial,strategy,and operations outcomes.Personalization capabilitiesperform bestWhile our data shows that the morecapabilities a company adopts,thebetter it per
40、forms,its clear that somecapabilities deliver more than others.To investigate this,we identified 38digital commerce capabilities alongthe five stages of the customerjourney:discover,evaluation,purchase,after sales,andBetter outcomes with more digital capabilitiesFigure 2:More digital commerce capabi
41、lities adopted=higherperformance scorePerformance score was calculated by assigning points to how companies reported performance ontheir chosen top-five desired outcomes in the past fiscal year.The five-point scale of performanceranged from worsened significantly(-2 points)to improved significantly(
42、+2 points),making thesummed-up performance score range from-10 to+10 for five outcomes.The adoption tiers are asfollows:Low=Bottom 30%of adopters,Middle=Middle 40%of adopters,High=Top 30%ofadopters.Source:Infosys Knowledge Instituteengagement.We then aligned thesecapabilities with three horizons,bas
43、edon the sophistication required toadopt:Horizon 1(H1)capabilitiesrepresent the baseline for digitalcommerce,encompassing the mostadopted fundamental capabilities.Although crucial for digital commercedelivery,these capabilities alone donot offer a competitive edge.Horizon 2(H2)capabilities arewhat c
44、ompanies should focus on now.These are more sophisticatedcapabilities that many are in theprocess of implementing.Several of these capabilities,notablythose focused on personalization,areproviding correlate with higherperformance in customer,financial,strategic,and operational outcomes.Horizon 3(H3)
45、Horizon 3(H3)capabilities arewhat companies must prepare for inthe future.These are more of thecutting-edge capabilities,adopted at alower level in many cases,and oftenhave yet to prove their worth in termsof delivering business value.Depending on the maturity of thedigital commerce organization,com
46、panies may want to tackle easierH1 capabilities first.But more complex capabilities such aspersonalization,or AI agents,can leadto better performance on businessobjectives in the long run.Our analysisalso indicates that an organizationgains on performance with everyadditional capability implemented.
47、H3capabilities,primarily automation andartificial intelligence(AI),improveoverall performance by 1%.As a final note on horizons,it isimportant to understand that digitalcommerce capabilities dont buildupon one another across horizons.These capabilities do not buildsequentially.Basics done rightH1 ca
48、pabilities are the table stakes fordigital commerce.These includechannels of selling(websites andapps),and foundational capabilitiesrequired for marketing,pricing,customer assistance,and digitalsupply chain management(Figure 3).However,verified reviews and self-service chatbots or voice bots forcust
49、omer assistance correlate withbetter performance,making themmust-haves for every organization.Most companies have already enablede-commerce through brand websitesand mobile apps.The following are widelyimplemented:traditional and socialmedia marketing;search engineoptimization);chatbots or voice bot
50、sfor customer assistance;andautomated taxation,invoicing,andpricing systems.90%of respondents indicated thatthey plan to adopt most of thesecapabilities within the next two years.Maurus Puttonen,industry lead for retail,CPG andlogistics,FluidoThere are a lot of capabilitieswhich are believed to be h
51、elpfulfor the business,but mostcompanies find it difficult toascertain the actual value whenimplemented.While the impactof some capabilities is easier todetermine,it is extremely hardfor others such aspersonalization where there areless defined means ofmeasuring.Figure 3:Digital commerce experiences
52、 by adoption level and likelihood itincreases performance tierSource:Infosys Knowledge InstituteHow to get personalizationrightCompanies should add as many digitalcommerce capabilities as possible,butpersonalization has the highestimpact.We found that implementingpersonalized customer service,person
53、alized offers,and co-browsingto help customer experience products,correlate with top performance(5%,8%,and 7%,respectively).Personalization spans beyond in-person and online experiences to 3Dimmersive environments.It enablescustomization of ads,productrecommendations,pricing,and evenuser interface,c
54、atering to each stageof the customer journey.Companies primarily focus onpersonalization,along with customerassistance and loyalty managementinitiatives(Figure 3).However,mostcompanies still implementpersonalization in(a)customer servicewith context persistence acrosschannels(46%),(b)offers and pric
55、ing(58%),and(c)content delivery(56%).Personalization capabilities are only asgood as the technology driving them:data and systems that generate thatdata,analytics systems that drawinsights,and the tools that driveactions on those insights.The first step is to get productrecommendations right through
56、behavioral assessment and targetingrelevant content.For example,an online travel agent(OTA)can track attributes of a userssearch process,including location,family size,age groups,and triptimeline.If the user has bought asummer trip,the OTA mightrecommend winter trips to encouragerepeat purchases.Cus
57、tomer assistance is also a toppriority,with significant companiescurrently investing in co-browsing,likeremote screen sharing by salesrepresentatives to assist customers inexperiencing and using products orservices(45%).Co-browsing helps businesses instilconfidence in their customers.For instance,IQ
58、Geo is a geospatialsoftware company that uses co-browsing to walk their customersthrough the functionality of theirproducts.The future is immersiveand automatedH3 capabilities focus on raisingperformance.Targeted andautomated programmatic ad buyingincreases the likelihood of anorganization being in
59、the top quartileof performers by 6%.However,H3capabilities are still in their nascentstage.Less than one-fifth of oursurveyed companies haveimplemented most of thesecapabilities(Figure 3).Immersivetechnologies,such as 3D virtualenvironments,avatars,digital twins,and devices(headsets),evolveSteve Ton
60、gish,chief marketing officer,IQGeoIts difficult for us to give our customers something to play with.Werenow trying to figure out how we can,in a more controlled way,exposethem to our software so they can engage with it without giving thema sandbox.70%of the customers research happens online,and wewa
61、nt to provide them the opportunity to see it,feel it,and approachus with a positiveoutlook.continuously and uncover value-driven applications across industries.These applications primarily revolvearound realistic 3D product trialsbased in virtual reality(VR)andaugmented reality(AR)that helpreduce re
62、turns and increase customerengagement.With advancements inAI,the digital commerce space willlikely become automated.while over80%indicated they will implementeach capability(except voicecommerce)within the next few years.While,the least implementedcapability is voice commerce,orpurchases powered by
63、voicecommands given to AI-based agents,with 46%not even planning toimplement it.Current market signs indicate thatvoice commerce isnt meetingexpectations.In 2022,Amazon wasreportedly set to make$10 billion inlosses from the business unit thatAlexa operations fall under.9H3 capabilities have less ado
64、ptionnow.However,some,such as 3Dproduct trials and support,will beamong the most widely adoptedcapabilities in the next two years.Capabilities impactdifferent outcomesOther capabilities besidespersonalization affect digitalcommerce performance andoutcomes.We used linear regressionanalysis to underst
65、and therelationships of all 38 digitalcommerce capabilities.We found thatcapabilities can have both positiveand negative effects on one another.Below are the most prominentexamples of the correlations that wediscovered:Verified reviews of productsincreases the chances of improvingfootfall or traffic
66、 to a website;expanding product portfolio and/ormarkets;and reducing costs ofcustomer acquisition,fulfillment,and returns.Delivery within two hours of orderplacement can negatively impactcustomer retention and marketingWhich personalizationcapabilities have youimplemented?(Select all that apply)POST
67、 ANSWERPersonalized offers,andpricing for up-sell andcross-sellPersonalized product-orservice-specific contentProduct or servicecustomizationPersonalized customerservice and contextpersistence across digitalchannelsRajesh Varrier,EVP,head digital experience&Infosys AmericasPersonalization is no long
68、era luxury,but a necessity intodays digital experiencelandscape.By tailoring customerinteractions and anticipatingtheir needs,businesses can notonly improve customersatisfaction,but also increaseconversions and loyalty.Theability to deliver a personalizedexperience can be the differencebetween a one
69、-time customerand a lifelongadvocate.ROI,but correlates with expandedproduct portfolios.Automated order placement viacustomers IoT networks canstrengthen payment capabilitiesand reduce cost.Personalized offers and pricingimprove customer retention rateand increase footfall or traffic.Please see the
70、comprehensive table ofthese relationships in Appendix A.Click here or press enter for the accessibility optimised versionLeadershipmattersDigital commerce is no longer justabout technology its also aboutcapabilities that are not necessarilytechnology-based.However,it is stillseen as a solely technol
71、ogy functionfor many businesses.We asked aboutdigital commerce leadership and wefound there was a massive diversity ofwho leads.Yet there is a clear favoring of those inIT positions.More than one-third ofrespondents reported that their digitalcommerce is led by chief technologyofficer(CTO),chief inf
72、ormation officer(CIO),or the chief digital officer(CDO).However,with the rise of customer-centric capabilities,likepersonalization,digital commercenow requires leadership thatunderstands customers best.How to get betterperformanceChief revenue officers(CROs)or chiefsales officers(CSOs)that lead thed
73、igital commerce function performbetter than other leaders.While digitalcommerce requires the technicalvision of CIOs and CTOs,our analysisshows that companies have betterperformance outcomes when theyhave a CRO or CSO leading digitalcommerce(Figure 4).Controlling foroutside factors,we estimate thisp
74、ractice correlates with a 6%higherrelative performance on businessoutcomes than companies with onlythe CTO leading digital commerce.Leadership mattersHowever,there is no clear consensuson the ideal leader.Technology is theLeadership mattersFigure 4:Share of companies by digital commerce leadershipSo
75、urce:Infosys Knowledge Institutekey enabler of the digital experiencesthat a company implements.TheCTOs role cant be downplayed in adigital commerce organization.However,technology performs betterwhen complimented by the vision ofthose who focus on understandingcustomers,chief marketing officers(CMO
76、s),CSOs,and CROs.Digital commerce isa team sportGiven the evolution of horizons andcapabilities like personalization,companies need to approach digitalcommerce as a suite of products thatrequires constant improvement anditeration,rather than a one-shotinitiative.According to Gartner,Organizations fa
77、il to recognize thatdigital commerce is a team sport thatrequires cross-organizational efforts todeliver business outcomes”.10InfosyssDigital Radar 2023 also found thatcompanies organized aroundproducts or value streams are 50%more likely to be among the fastest tomarket with new innovations.11Howev
78、er,most companies are notorganized to do this(Figure 5).Nearlyhalf(47%)of those surveyed reportedusing utilizing a centralized modelwhere a single designated functionalteam manages digital commerceinitiatives.Digital commerce is a teamsport where each organizationalfunction plays a role.Whiletechnol
79、ogy is vital,it is not sufficienton its own.To get the full value ofpersonalization,companies needmarketers and salespeople whounderstand personalization and canprofile customers based on dataprovided by IT.We found that 41%of the companieshave a hybrid model with centralizedleadership and specializ
80、ed digitalcommerce roles integrated acrossother business functions.Thisincreases the visibility and impact ofdigital commerce initiatives within theorganization.However,only 7%ofcompanies have a truly decentralizedmodel where digital commerce rolesare deeply integrated across businessfunctions.These
81、 few organizationsoperate with the belief that digitalcommerce is a part of their DNA anend goal for businesses that are nottruly digital natives.We have entered an era wherebusiness strategy is just as importantas technology strategy.However,thisdoes not diminish the critical roletechnology still p
82、lays in poweringexciting and evolving digitalcommerce capabilities.Digitalcommerce requires participation andpartnership between technologyleaders and business leaders.Figure 5:Most companies centralize digital commerce leadership andresponsibilitySource:Infosys Knowledge InstituteMarc Cohen,chief s
83、trategy officer,Blue Acorn iCiThe customer-facing sales and marketing teams are responsible forbrand and experience.They must know the difference between howcustomers are expected to feel and how they actually feel.Successfulcommerce programs require a strong collaboration between salesand marketing
84、,and IT functions,with a higher ownership of theformer in some better optimizedscenarios.Who leads digital commerce initiatives in yourorganization?POST ANSWERChief sales or revenue officerChief executive officerChief marketing or brand officerChief information,technology,or digital officerChief ope
85、rations,finance,or HR officerChief experience officerDedicated leader outside of the C-suiteClick here or press enter for the accessibility optimised versionFlexible technology is thefutureDigital commerce is still atechnological endeavor.But the waytechnology is architected haschanged.Technology ar
86、chitecturemust be flexible and extensible tokeep pace with digital commercecapabilities(Figure 6).We askedrespondents what types of digitalcommerce platforms they haveimplemented and plan to implement.Traditional monolithic platforms andcustom-made digital commerceplatforms,which are predesigned,pac
87、kaged suites.However,platformsenabled with microservices,API-first,cloud-native,and headless(MACH)will overtake as the most commonlyimplemented architecture in the nexttwo years.Microservices and API-firstdeliver flexibilityThe rise of MACH architectures makessense given their use of microservicesan
88、d API-first functionalities.These twoapproaches allow integration of arange of digital capabilities such asmobile apps,voice,IoT,wearables,andAR/VR which monolithic systemshave not traditionally been designedfor until recently.12Flexible technologyWhich of the followingdigital commerceplatform archi
89、tecturesare implemented in yourorganization?(Select allthat apply)POST ANSWERDigital commerceplatform based ontraditional e commerceproductsMicroservices api firstcloud native headlessmach architectureCustom built non macharchitectureFigure 6:Companies favor microservices and API-first over monolith
90、icarchitecturesSource:Infosys Knowledge InstituteMonolithic providers have noticed thevalue of providing flexibility of digitalexperiences.Earlier this year,SAPannounced its new composablecommerce solution that gives clients atraditional monolithic approach andflexibility in digital experiencesthrou
91、gh SAPs network of partners asmicroservices.13While MACHarchitectures look on track to passmonolithic platforms,monolithicplatforms can keep pace if theyprovide composable architecturesthat provide flexibility in digitalcapabilities.However,flexibility on its own doesnot link to performance.Companie
92、sstill need to be able to plug in thecustomizable bits that make the mostsense for their business.Throughlinear regression,we uncovered thatcustomizable architecture thatimpacts performance.Thisarchitecture correlates with a 4%higher likelihood of a company beinga top performer.Analytics is overwhel
93、mingDigital commerce capabilities are asgood as the data driving them.Theuse of real-time recommendationsbased on customer activity correlateswith a 5%higher likelihood of rankingas a top performer.However,roughly40%of companies have not started toimplement this real-timerecommendations.We askedcomp
94、anies about the implementationstages of six digital commerceanalytics use cases,and the results aregrim(Figure 7).Less than a fifth of the companieshave completed implementation ofany use case.More concerning,more10%of companies have no plans toimplement any use case we studied.This gap is concernin
95、g because itcould create a huge performancedeficit in the future.According to a 2021 study,24%of theexecutives viewed their companies asbeing data-driven,while 39%viewedtheir organizations to be managingdata as an asset.14Most companiesare still figuring out how to implementanalytics for digital com
96、merce.A clear disconnectThere is a clear disconnect betweenthe level of implementation ofcapabilities and their associatedFigure 7:Nearly 40%of companies arent using digital commerce analyticsSource:Infosys Knowledge Instituteanalytics initiatives.18%of therespondents have implementedpersonalized of
97、fers and pricing,39%have implemented personalizedcustomer service,and 31%haveimplemented personalized product orservice-specific content.However,only 10%have engaged in analytics totrack performance of personalizationinitiatives.Chase Bruch,vice-president of customerintelligence,Blue Acorn iCiOne of
98、 the key shortcomings is alack of commitment tofundamentals.Companies arepulled into new tooling beforethey maximize the utilityof their current stack.Companiesshould activate their data,useexisting tools,and focusingon the core building blocks ofsimplified reporting andexhaustivetesting.Even worse,
99、the implementation ofanalytics for personalizationcapabilities like customer profiling,marketing,and real-timerecommendations is much lower thanthe implementation of thesecapabilities.Without data andanalytics,companies may as well takeshots in the dark.Companies mustimplement capabilities and analy
100、ticsinitiatives in parallel.Otherwise,theROI in analytics remains unknown.Deliver real-timerecommendationsOur analysis suggests that analytics forreal-time recommendations based oncustomer activity provides a 5%higher likelihood of having top-tierperformance.To deliver real-timerecommendations,compa
101、nies needthe right data,coupled with advancedAI tools.And the solution needs tocontinuously evolve to track changesin parameters related to customerpreferences and occasions.Rakesh Pissay,AVP senior enterprise architect,Infosys Ltd.Its surprising that,when online commerce experiences are moreimporta
102、nt than product,price,and promotion,this is the level ofanalytics coming from all of the initiatives companies haveimplemented over the past couple of decades.This clearly shows thatthere is a significant amount of spend on capabilities withoutknowing theeffectiveness.Real-time recommendations also
103、tie topersonalization capabilities,makingoffers,pricing,and content moreeffective,helping improve businessoutcomes.Generative AI isalready in useThe extraordinary success ofapplications like ChatGPT has paved away for organizations to exploreendless use cases for generative AI.The exploration has cr
104、eated tools thatrange from personal assistants toaudio editors digital images creatorsto code developers.Generative AIsutility has already influenced digitalcommerce.The clothing company Stitch Fixbegan experimenting with generativeAI platforms last year.Stitch Fix is anonline clothing service that
105、usesalgorithms to recommend clothingbased on customer preferences.Figure 8:Companies dont always prioritize integrating systems that improve performanceSource:Infosys Knowledge InstituteRecently,they experimented withgenerative AI image platform,DALL-E2,to create visuals of their clothingbased on cu
106、stomer preferences.15Heinz used the same AI platform togenerate an ad campaign of ketchupbottles to promote their brand.16Generative AI use cases are potentiallyvaluable across many businessfunctions.For digital commerce,particularly marketing andpersonalization,generative AI isalready proving its v
107、alue.Integration improvesoutcomesSystems integration connects a digitalcommerce platforms informationsystem,including inventory,customers,pricing,and marketing.Much like data analytics,marketingand AdTech systems were ranked asthe lowest priority systems forintegration into the digital commerceplatf
108、orm.These systems generatecrucial data used to designpersonalization initiatives.Similarly,customer data platformsranked fourth and pricing seventh,even though these systems drive thebulk of analytics initiatives.Regression analysis of the systemsintegrated and the outcomes theyaffect points to thre
109、e keyrelationships:Integrating logistics and fulfillmentsystems significantly increases thelikelihood of(a)improving supplychain and inventory managementmetrics,(b)reducing costs,and(c)strengthening payment capabilitiesand infrastructure.Integrating product informationmanagement systems increases th
110、elikelihood of(a)increasing footfallor traffic,(b)reducing costs,and(c)strengthening payment capabilitiesWe asked respondents to rank the topfive business systems critical forintegration with their digitalcommerce platforms.Inventory management ranks highestby the number of times it is chosen intop
111、five,but performance enhancingintegrations are less prioritized(Figure8).These relations reaffirm thatbusinesses must take a holistic view ofdigital commerce,which includessystems integration.Every aspect affects the experiences acompany delivers and the outcomes itderives,whether directly or indire
112、ctly.and infrastructure.Integrating invoice managementsystems increases the likelihood of(a)increasing footfall or traffic,and(b)strengthening paymentcapabilities and infrastructure.Click here or press enter for the accessibility optimised versionHow to accelerate performance in digitalcommerceCompa
113、nies pursue digital commerceinitiatives to drive business outcomes:to deliver new experience tocustomers;to improve financialperformance;to position themselvesstrategically;or to bolster theircommerce operations.Regardless of what outcomescompanies prioritize,the more digitalcommerce capabilities ad
114、opted thebetter companies perform.Specifically,companies can find themost performance gains throughpersonalization capabilities.But adopting capabilities is notenough.Our study found that gooddigital commerce performancerequires ownership across sales,marketing,and IT.It is critical to haveIT leader
115、ship that creates the technicalbackbone and sales and marketingleadership that guides customer-centric capabilities likepersonalization.Digital commerce apps and use casesevolve exponentially.This requires atechnical architecture that supportsrapid evolution.We found that amicroservices and API-firs
116、t enabledarchitecture,fully customizable,willkeep pace with rapidly evolving digitalcommerce applications and use cases.We recommend a four-prongedapproach to accelerate digitalcommerce performance:Implement more capabilities.Prioritize personalizationexperiences.1.Implement morecapabilitiesOnly the
117、 top 30%adopters of digitalcommerce capabilities show aperformance difference from the rest(Figure 2).Companies need toexperiment and adopt a wide range ofcapabilities across the five stages ofcustomer journey,as well as thosepertaining to the past,present,andfuture horizons.Through H1 to H3 aswell,
118、the performance increaseslinearly but not significantly indicating that it is good to adoptcapabilities across horizons but moreIntegrate IT,sales,and marketingleaders.Adopt microservices and API-firstarchitecture with open stackintegrations.What accelerates performance?Amit Kalley,CEO,Infosys Equin
119、oxThe beauty of MACH commerce platforms is that you can pick andchoose industry proven capabilities to be deployed either to graduallystrangle your monolith,or to drive a complete migration off yourlegacy platforms.Integration is simpler,cleaner,and easier tomaintain,with business logic fine-tuned v
120、ia microserviceconfigurations in the orchestrationlayer.important to get the onesimplemented to work betterirrespective of their level ofadvancement.Companies should prioritize thefollowing capabilities,whichcapabilities correlate more stronglywith performance.1.Verified reviews(H1).2.Self-service c
121、hatbots or voice botsfor customer assistance(H1).3.Personalized customer service andcontext persistence across digitalchannels(H2).4.Personalized offers,and pricing forup-sell and cross-sell(H2).5.Co-browsing to help customersexperience products and servicesremotely(H2).6.Targeted automated(programm
122、atic)ad buying(H3).2.Prioritize personalizationexperiencesPersonalization of customer servicewith context persistence across digitalchannels,and personalized offers andpricing for up-selling and cross-selling,have a significant positive correlationwith overall performance on businessoutcomes.We disc
123、overed thefollowing on the implementation ofthese two and other personalizationcapabilities:Personalized offers and pricing leadto an 8%higher probability(each)of significantly improving bothClearly,multiple aspects ofpersonalization are effective at drivingbetter outcomes.However,fewcompanies have
124、reported theimplementation of these capabilities.3.Integrate sales andtechnology leadersDigital commerce is still very much atechnology endeavor,but it alsorequires the strategic focus ofcustomer retention rate and trafficto digital channels.Personalized customer serviceprovides a 9%higher probabili
125、ty(each)of significantly improvingboth supply chain and inventorymanagement metrics,andpayments capabilities andinfrastructure.Personalized product-or service-specific content similarly lends an8%higher chance of significantlyimproving cart-to-orderconversions.business leaders.Our study indicatestha
126、t CROs and CSOs drive betterdigital commerce performance.Theseleaders correlate with a higherlikelihood(15%higher than CTOs)ofdriving their organizations into thetop tier of performance on desiredbusiness outcomes.These leaderscorrelate with a 12%higher averageperformance score compared to CEOs,who
127、lie at the bottom in leadingdigital commerce effectively(Figure5).Businesses must now re-evaluate theirstrategic vision with the monetaryaspects in focus.This is expected toclarify the goals that a business mustset for itself,and the capabilities to beimplemented to achieve them.Withjust 5%of the co
128、mpanies currentlyhaving CROs or CSOs leading digitalcommerce,it is difficult to define whatbest practices do they employcompared to those with technologyleaders(CTOs,CIOs,or CDOs).Undoubtedly,the technology leadersplay a key role in building the entireecosystem containing everything thatmatters arch
129、itecture,capabilities,analytics,system integrations,andpayments.Therefore,it is critical fororganizations to have theirtechnology units and sales leaderswork in tandem toward a commonstrategy that drives the rightdecisions,especially if leadershipchanges need to be undertaken.4.Adopt microservices a
130、ndAPI-first architectureMicroservices and API-firstarchitecture is the way forward forfuture digital commerce platformdesigns,as the flexibility to rapidlyintegrate or adopt various capabilitiesbecomes the prime objective of theunderlying architecture.While mostfirms are yet to adopt microservicesan
131、d API-first functionalities into theircommerce architectures,95%do aimto get there gradually.However,most microservices and API-first commerce vendors only providelimited flexibility,scalability,andtechnical agility through APIs,makingthose solutions good when used as-isor as-delivered.But the ongoi
132、ngdigital evolution requires moreflexibility to handle unknownexpectations that would mostdefinitely emerge after thedeployment of a solution.Moreover,the lack of mature business tooling is akey problem with typicalmicroservices and API-first solutions.To tackle this,we recommend afutureproof approa
133、ch called MACH-X.MACH-X stands for microservices,API-first,cloud-native,and headless withextensibility,which provides greaterflexibility for companies toincorporate the fundamentals of AgileDevOps and Continuous Integration/Continuous Delivery(CI/CD)andenable the extension or overriding ofany micros
134、ervice capabilities thatneed to be resolved.It also allowscompanies to plug in their own orthird-party microservices.Thisextensibility is achieved via an openstack that divides API layers in a waythat separates customizations fromthe core,which in turn enablescompanies to add capabilities withouthav
135、ing to go down the significantupdate path.17Did you find this reportinsightful?POST ANSWERYes,very much so.There were some usefultakeaways.Not so relevant to me.Digital Commerce Radar 2023,the first of its kind by Infosys,sought to identify what elements of digital commercematter to companies,custom
136、ers,and employees,and how they impact business performance.We identified six keyelements of digital commerce operations:organizational structure,technology architecture,digital capabilities,system integration,payments,and analytics.We found that each element is crucial for the success of a companys
137、digital commerce operations.When companiesget them right,they perform better than their competition.Across industries,businesses must evaluate theirpractices and initiatives and align them with best practices to thrive in the next wave of digitization.To download this report,click here.AuthorsJitesh
138、 Gera|Infosys Knowledge Institute,BengaluruDylan Cosper|Infosys Knowledge Institute,DallasAnalysis and ProductionIsaac LaBauve|Infosys Knowledge Institute,DallasPragya Rai|Infosys Knowledge Institute,BengaluruReferences1.The State of eCommerce-Pre&Post Pandemic(2022),July 2022,PipeCandy2.Global infl
139、ation will fall in 2023 and 2024 amid subpar economic growth,January 2023,International Monetary Fund3.COVID-19 pandemic accelerated shift to e-commerce by 5 years,new report says,Sarah Perez,August 24,2020,TechCrunch4.Pandemic helped drive Walmart e-commerce sales up 97%in second quarter,Sarah Pere
140、z,August 18,2020,TechCrunch5.Amazon reports record quarterly profit and 40%sales growth backed by strong COVID-related demand,Eugene Kim,July 31,2020,Business Insider6.Pandemics E-commerce Surge Proves Less Persistent,More Varied,Joel Alcedo,Alberto Cavallo,Bricklin Dwyer,et al.,March 17,2022,IMF7.C
141、onsequences of the War in Ukraine:The Economic Fallout,Brian Michael Jenkins,March 7,2023,The Rand Corporation8.The outlook is uncertain again amid financial sector turmoil,high inflation,ongoing effects of Russias invasion of Ukraine,and three years of COVID,April 2023,International Monetary Fund9.
142、Amazon Alexa is a“colossal failure,”on pace to lose$10 billion this year,Ron Amadeo,November 22,2022,ARS Technica10.How to Develop a Digital Commerce Strategy,Sandy Shen and Mike Lowndes,November 6,2021,Gartner GARTNER is a registered trademark and service mark ofGartner,Inc.and/or its affiliates in
143、 the U.S.and internationally and is used herein with permission.All rights reserved.11.Digital Radar 2023,March 7,2023,Infosys Knowledge Institute12.MACH-X:The Future of E-commerce,accessed March 3,2023,Infosys13.SAP Delivers New Approach to Composability,Helping Businesses Drive Profitability and M
144、ove Fast on Their Own Terms,Riad Hijal,March 27,2023,SAP14.How Well Does Your Company Use Analytics?,Preethika Sainam,Seigyoung Auh,Richard Ettenson,et al.,July 27,2022,Harvard Business Review15.Your Opinion Matters,Reza Sohrabi,Agnieszka Szefer,Alex Whedon,July 19,2022,Stich Fix16.Heinz A.I.Ketchup
145、,August 17,2022,Campaigns of the World17.MACH-X and e-commerce:Why the future is flexible?,accessed on March 3,2023,InfosysClick here or press enter for the accessibility optimised versionAppendix A:CapabilitymappingAppendix A:Capability mappingNote:*The figures in parenthesisindicate the increase o
146、r decrease in thelikelihood of significantly improving inan outcome.These estimates resultsfrom regression analysis betweencapabilities(and other controllingfactors)and outcomes and areadditive in nature.This means theimplementation(or discontinuation)of individual capabilities that correlatewith an
147、 outcome can increase thelikelihood of significantly improvingperformance on that outcome by thesum of the impacts for each correlatedcapability.Click here or press enter for the accessibility optimised versionAppendix B:ResearchapproachInfosys commissioned an independentthird-party survey of 2,500
148、companiesacross 12 industries globally.Thesurvey was conducted from Octoberto November 2022.The respondents belonged to four keyfunctions within an organization technology,sales,marketing,andcustomer service and comprised C-level,senior management,and middlemanagement executives involved ineither st
149、rategy,evaluation,orimplementation of digital commerceinitiatives.Each organization in thesurvey met the minimum criteria of$500 million in total revenue and$100million in e-commerce revenue.The survey aimed to determinerespondent organizations capabilitiesand practices around the keytechnological a
150、nd organizationalaspects of digital commerce.We askedrespondents about their companiesfinancial performance(overall profitgrowth and e-commerce revenuegrowth),the share of e-commercerevenue,and profit growth over thelast fiscal year.We also asked aboutthe key business outcomes thatmatter to them per
151、taining to digitalcommerce,and how they performedon those outcomes in the previousfiscal year.We assessed the implementation ofvarious technology and organizationalcapabilities and practices to study theoverall maturity of digital commerce.In addition,we quantified eachrespondents performance on the
152、irAppendix B:Research approachdesired business outcomes tocompare differences acrossgroups of companies,industries,and capabilities orpractices.We also conductedlinear regression analyses todetermine which capabilitiesand practices significantlycorrelate with businessperformance,to makerecommendations on whatbest practices companiesshould adopt based on ouranalysis.Click here or press enter for the accessibility optimised versionRead more of our research: Infosys Knowledge Institute at or email us at .Cookies Terms PrivacyP O W E R E D B Y