H Trends

Digitalization trends shared between retailers and manufacturers

July 31, 2023
Trend #3: Greater personalization of customer experiences.

The rapid adoption and integration of digital technologies to improve business operations and customer experiences is crucial for companies to survive in the current environment. You know this. But sometimes, the details of doing so get lost. Here I present three trends we've witnessed in recent digital-acceleration campaigns:

Trend #1: The increasing need for agile supply chains and operations

Digital acceleration has had a profound effect on the supply chains and operational processes of both retail and manufacturing sectors. With the rise of e-commerce, retailers have embraced automation and robotics to optimize warehouse operations, leading to faster order-fulfillment and reduced errors. Furthermore, machine-learning algorithms are now being employed to forecast demand and optimize inventory-management, ensuring products are available precisely when and where customers need them. In the manufacturing sector, digital transformation has paved the way for the implementation of smart factories, where advanced technologies such as AI and robotics automate production processes. This not only improves efficiency but also enables manufacturers to swiftly respond to market demands, reducing time-to-market and advancing more agile operations.

Trend #2: The evolution of data-driven decision-making

Digital acceleration has unleashed a wealth of data for manufacturers...or, at least, those manufacturers hoping to stay competitive in the modern market. Through the utilization of big-data analytics and machine-learning algorithms, businesses can gain valuable insights into consumer preferences, market trends, and operational efficiencies to inform smarter strategies. Retailers can leverage data to personalize marketing campaigns, recommend products, and optimize pricing strategies. In the manufacturing sector, data-driven decision-making allows for predictive maintenance, reducing downtime and enhancing overall equipment effectiveness. Moreover, advanced analytics help identify areas for cost savings, improve quality control, and optimize production processes. 

Trend #3: Greater personalization of customer experiences

Digital acceleration has revolutionized the way retailers and manufacturers interact with their customers. Companies now leverage technology to deliver seamless and personalized experiences at every touchpoint of the customer journey. For example, retailers have embraced AR/VR technologies to enhance the in-store experience by enabling customers to—virtually—try on clothing or makeup. Similarly, manufacturing companies have implemented IoT sensors and real-time tracking to provide customers with accurate product updates, ensuring transparency and timely delivery. These digital innovations not only improve customer satisfaction but also enable businesses to gain valuable insights into consumer behavior, driving better response to customer preferences and enhanced product offerings.

Digital acceleration is reshaping the retail and manufacturing sectors, enabling organizations to deliver exceptional customer experiences, streamline operations, and make data-driven decisions. As technology continues to evolve, embracing digital acceleration will become increasingly critical for businesses to thrive in a constantly changing digital landscape. You already know this; hopefully you are one of the enterprises embracing these trends.

About the Author

Fabrice Roche

Partner, digital transformation with BearingPoint