Retail Executive

NOV/DEC 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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Page 35 of 47

Consumer Analytics Digital Identity/Presence Cloud Connected Products/Internet of Things Mobile Payments Store of the Future Artificial Intelligence/Cognitive Computing 55% 26% 29% 33% 35% 36% 46% Consumer Trust In A World Of IoT As digital transformation continues to shape retail, so does cyber risk. D R . L E S L I E A M E N T Retail, Wholesale & Distribution Research Team Leader, Center for Industry Research & Insights (C&IP), Deloitte Services LLP applications, have been gaining notoriety. These appli- cations combine location specificity and interactivity, allowing users to connect with others based on their current locations such as when shopping in a connected "store of the future." While these technologies have the potential to facil- itate deeper digital relationships and interactions be- tween retailers and their customers, they may simulta- neously open new doors for criminal activity that could potentially tarnish those relationships. Surprisingly, SENSITIVE CONSUMER INFORMATION: RISKS AND REWARDS Personalized experiences that drive lifetime consumer loyalty. Mobile functionality that enables seamless in- store and online shopping and buying. Connected ex- periences and products that offer improved, 'smarter' lifestyles. The future certainly looks bright for business- es willing to push technology to its limits. According to Deloitte's survey, retailers plan to invest in the following technology initiatives at a healthy level. (See Figure 1.) ▶ Leveraging consumer analytics (55 percent) ▶ Establishing and securing digital identities and presence (46 percent) ▶ Transitioning to cloud-based technologies (36 percent) ▶ Securing devices connected via the Internet of Things (35 percent) ▶ Enhancing mobile payment options (33 percent) ▶ Investing in "store of the future" (29 percent) Not surprisingly, all involve multichannel capture, analysis, and usage of potentially sensitive consumer information. (See Figure 1.) However, digital innovation in retail brings more than just profit potential. New applications specifically designed for mobile de- vices, such as location-based social networking (LBS) Eager to reap the benefits of stronger customer relationships and improved product experiences, businesses are often making digital innovation a top strategic priority. Many, however, are not balancing the remarkable benefits of digital transformation with the potential for increased cyber risk — particularly when it comes to the impact potential breaches can have on the delicate balance of trust today's retailers have with their customers. Figure 1: WHERE WILL YOUR ORGANIZATION IN- VEST TO SUPPORT STRATEGIC INITIATIVES? ©2017 Deloitte. Retail sector only analysis adapted from "Cyber risk in consumer business." IoT Innovation By L. Ament CONSUMER TRUST IN A WORLD OF IoT RETAILEXECUTIVE.COM NOVEMBER/DECEMBER 2017 34

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