Retail Executive

SEP-OCT 2017

Retail Executive is the trusted advisor to top retail executives from the industry’s most profitable retailers. We help retail executives succeed in their job role and grow their business via exclusive, actionable, peer-driven content.

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Cardinal Innovation Challenges The Retail Industry Leaders Association (RILA) has developed (R)Tech, a new term that describes the confluence of retail and technology. An (R)Tech company embodies the strongest values of both industries, global and local, nimble and entrepreneurial, to delight profoundly empowered consumers. In 2017, the (R)Tech Center distributed an online survey to its founding members to develop a baseline of companies' organizational structures for innovat- ing. The data is from 27 respondents, 80 percent of which have annual revenues of $6 billion or more. Four Cardinal Challenges emerged from the survey and interviews; these factors inhibit the growth of innovation in retail companies. Visit rtech.org to learn more about (R)Tech Center for Innovation's activities. 1. PRIORITIZING Assessing consumer insights, futures planning, and visiting other innovators are the most used techniques for sourcing new ideas and identifying trends. TOP CHALLENGES: Identifying highest value projects and scaling them 100% 75% 50% Customer Experience Big Data Analytics Experience & Services Internet of Things VR & AR 96% 67% 67% 70% 59% 2. FUNDING Sample metrics for illustrating the value of innovation projects to obtain future funding include customer perception, customer count, % new product, sales/ orders, and innovation project milestones and budgets. TOP CHALLENGES: Securing funding for and measuring successes for innovation 39% 61% Specific Metrics None 3. TALENT Innovation teams mostly have technology, design, and engineering backgrounds. Senior leaders most often come from operations. TOP CHALLENGES: Dedicating resources and attracting the right talent 50% 25% 0% Grow by 10+ Employees Grow by 7-10 Employees Grow by 1-2 Employees Grow by 3-6 Employees Remain The Same Size 32% 11% 16% 16% 26% 4. CULTURE 19% of companies focus on higher-risk innovation projects. TOP CHALLENGES: Breaking free from legacy structures, established processes, and operating environments 50% 25% 0% CFO 8% 23% CEO 4% 41% Board of Directors 4% 19% Others on Exec Team/C-suite 35% 0% Heavily Involved Not Involved INNOVATION FOCUS AREAS WHAT INNOVATIONS METRICS DOES YOUR COMPANY TRACK? INNOVATION TEAM GROWTH IN NEXT 2 YEARS LEADERSHIP INVOLVEMENT IN INNOVATION PROGRAMS INNOVATION CHALLENGES By The numbers RETAILEXECUTIVE.COM SEPTEMBER/OCTOBER 2017 10

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