Overview of Digital Innovation in Retail: in search of value

After six years of recession, consumption in Italy is rising once more. In 2014, monthly household spending grew by 0.7% compared with 2013 and this upward trend in consumption continued into 2015. At the same time, Italian users are becoming increasingly inter-connected, digitally aware consumers. As of 2015, the number of Italian Internet users is approaching 38 million, of whom 17.7 million are online shoppers. Similarly, the use of mobile technology is steadily shaping the consumers’ buying process and their relationship with retailers. In addition to managing these changes in consumer behaviour, retailers have also to face continuously more complex back-end processes and the range of available products has increased while the average product life cycle has shortened. In this complex and constantly evolving scenario, digital innovation can help retailers to respond more effectively to consumer requirements and design processes that are more efficient. This report provides an overview of the state of the art of digital innovation in Italian retail, providing as assessment of the value of the investment and examining the various digital innovations that are capable of reshaping retailers’ processes. The management process for projects in this area is then analysed, focusing on the potential benefits and the measurement and monitoring systems that are used.