A Look Ahead At eCommerce Technology in 2012

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Brian Walker

As the calendar flips to 2012 we all seem to feel the urge to assess the near past and look to the near future. 2011 was a year full of industry rattling M&A and meaningful growth in eCommerce channels in the face of tough economic head winds. But, we have all already read too many posts recapping and listing 2011’s big events. Besides, we lived it already, time to move on. So what is 2012 bringing the world of eBusiness technology? A few things to look for:

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The Future Of Banking Is Mobile – Or Is It?

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Jost Hoppermann

A few days ago at Oracle OpenWorld 2011, I attended a presentation from one of the major consulting companies. The topic: banking in 2020. I heard about big data, the need for real-time analysis of information (in particular from the Internet), and a few other trends. While many of these trends were not new, I could only agree that they would be important in the future, as they align with Forrester’s 2008 research on what banking will look like in the future. (If you are interested in details regarding Forrester’s research on this topic, please see “Financial Services Of The Future: Collaborative Competition Will Be The Norm” and “Banking IT In 2023 Updated,” keeping in mind that 2023 is a metaphor for a longer-term perspective.) However, there was one statement within the presentation that I seriously disagree with.

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Magnificent Mile - Yes. Multichannel Mile…Still A Work in Progress

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Andy Hoar

Recently two colleagues of mine, Patti Freeman Evans and Martin Gill, put their respective cities’ shopping meccas to the multichannel test.  The question: To what extent were bricks and mortar retailers on Fifth Ave in New York and Oxford Street in London using their physical stores to advertise and promote their digital channels?  

Eager not to be left out...and curious to see how my city of Chicago would fare…I paid a visit to our world famous “Magnificent Mile” to see if/how bricks and mortar retailers promoted a connection to their own digital channels.

As I walked both sides of Michigan Ave (home to retailers such as Northface, Macys and Gap…as well as high-end retailers such as Tiffanys, Louis Vuitton, and Chanel)…I thought to myself, would Chicago be different from London and New York?  Would America’s heartland have a better feel for a large and growing number of shoppers today who may physically “be” in stores but whose shopping “attention” may reside elsewhere?

Some findings:

  • Traditional Brands Disappointed.  Count among this grouphigh-end/luxury brands and more established brands (e.g. Louis Vuitton, Macys).  Which is not to say that all youth-oriented brands excelled (e.g. Zara, Disney)…in fact, a surprising number of them failed to show their multichannel chops (e.g. no URLS in store, no discernable mobile presence). For example, The Disney Store was heavily promoting the “Cars 2” movie on monitors in its store, but I could not find any links anywhere to their content-rich website.
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The Multichannel Organization Revisited

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Jost Hoppermann

In 2006, Forrester found that organizational structure, internal enterprise goal systems, and most urgent business requirements were key obstacles on many firms’ journey toward broad multichannel solutions with rich cross-channel capabilities. At that time, a few advanced firms tried to establish a multichannel organization, an organizational layer to coordinate multichannel requirements and solutions between the different business groups and the IT organization. Has this changed over the past five years?

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Our Mediocre Multichannel Mission

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Martin Gill

In celebration of the fact that my Forrester Boss, Patti Freeman Evans, was over this week in London, we thought we’d go on a multichannel retail shopping tour of London to see just how well some major UK retailers are integrating their on- and offline channels and enticing their shoppers into engaging with them online.

The answer is sadly, not very well at all.

Hitting Oxford Street on a sunny Friday at lunch time, we performed an eyes-on tour of a rough cross-section of some of the better-known UK brands. We went looking for exciting new uses of technology disrupting the in-store environment. Examples of beautifully integrated online/offline/mobile channels placing the customer at the heart of the brand experience. Innovative applications of technology that seamlessly blended the digital and physical brands, enticing shoppers into engaging with these premier retailers both now, and later when they got home. Or even, how excitingly, via their mobile phones.

So while a hungry band of devotees of the fruit-flavored tech-god gathered outside the Apple Store, not realizing that just round the corner they could get their paws on a new iPad 2, sans queue, we started our shopping trip.

Flippancy aside, we were looking specifically for how well multichannel retailers are integrating physical and digital channels.

The results were (depressing) surprising :

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Agile Commerce: Three Questions For Jodi Watson, VP Global eCommerce

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Brian Walker

I recently had the chance to catch up with Jodi Watson, VP, Global eCommerce & Consumer Insights at Wolverine World Wide to understand what impact the transition to agile commerce is having on her role, her organization, and Wolverine World Wide’s business.

Since 1883, Wolverine World Wide has been a global manufacturer and retailer of footwear and apparel brands, operating in more than 190 countries around the world to bring to life brands such as: Bates, CAT Footwear, Chaco, Cushe, Harley-Davidson Footwear, Hush Puppies, Merrell, Sebago, Patagonia Footwear, and Wolverine. Jodi is an experienced direct-to-consumer leader with more than 15 years in eCommerce, catalog, and retail at a wide range of firms prior to Wolverine World Wide.

Forrester: Jodi, thanks for taking some time out to talk to us about agile commerce. We have been talking to clients about the evolution of their business from channels to touchpoints that span mobile devices, social networks, advertising, marketing, traditional channels, and various places online. How are you looking at this and what does it mean for your business?

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Welcome To The Era Of Agile Commerce

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Brian Walker

Multichannel commerce no longer makes sense. As consumers are increasingly connected through a wide array of Internet-connected devices, the traditional multichannel commerce experience is becoming obsolete. Customers no longer interact with companies from a “channel” perspective; instead, they interact through touchpoints. These touchpoints include channels such as stores, branches, call centers, and websites, but also emerging interactions such as apps, social media, mobile sites, SMS messages, and interactive advertising -- across a wide range of devices such as smartphones, tablets, Internet TVs, cars, and even appliances. 

As a result, it is time for organizations to leave their channel-oriented ways behind and enter the era of agile commerce —optimizing their people, processes, and technology to serve today’s empowered, ever-connected customers across this rapidly evolving set of customer touchpoints. This is agile commerce.

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Commerce Technology Coverage Expands! Welcome Peter Sheldon

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Brian Walker

I am thrilled to announce that Forrester is expanding our coverage of commerce technology and services with the addition of Senior Analyst Peter Sheldon. Many of you are likely readers of Elastic Path’s excellent blog and, therefore, will be familiar with some of Peter’s work. Peter brings a strong background in eCommerce, mobile commerce, and digital content, most recently serving as product manager at Elastic Path Software where he had been responsible for the road map and strategic direction of the Elastic Path commerce platform.

Peter and I will be collaborating closely on our research on commerce technology and services. We have a lot planned. In 2011, a few of the key areas you can look for expanded research on from us include:

  • The changing nature of multichannel commerce solutions.
  • eCommerce/Commerce platforms.
  • Mobile commerce.
  • Full-service eCommerce service providers.
  • B2B eCommerce solutions.
  • Digital commerce solutions (content and software).
  • How to select a systems integrator.
  • The changing nature of search and discovery solutions.
  • Content management for commerce.
  • Shopping APIs and commerce syndication.
  • Global eCommerce technologies and services.

Please join me in welcoming Peter to Forrester, and I know we all look forward to our expanded commerce technology research.

Thanks, Brian

Participate In The Next-Generation Multichannel Research: We Need Your Help!

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Brian Walker

Customers have changed. They are more than ever connected, informed, and in control — their mode of operating and the ways they want to engage continue to change rapidly. They expect to find information, make a purchase, and get service when and where they want it, across touchpoints. Yet businesses are struggling to deliver well in even one channel. They are not organized to meet the changing customer needs and struggle to empower their employees and partners through enabling technology and operations. Businesses across verticals are faced with the pressure to revamp tired business processes, hierarchies, and technology road maps and innovate to meet the stream of innovation and market transformations they face.

This is a topic we are working on now. But we need your help. If you are an eBusiness leader, please help us by participating in our research through this survey. You are not alone in facing these challenges, and the more information we collect, the clearer the insights we can share back with you.

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Announcing Forrester’s 2010 B2C eCommerce Platform Wave

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Brian Walker

After many months of analysis and hard work, we are very pleased to have published the B2C eCommerce Platform Wave report late last week. Some high-level conclusions:

  • Demand for eCommerce solutions continues to be strong. This is fueled by homegrown and older applications under strain from growing businesses, by strategic multichannel initiatives, and by the cost to maintain these legacy systems. As evidence, 57% of online retailers have increased their eCommerce technology spending in 2010, and 27% of US online retailers are planning to replatform in the next 18 months.
  • This is a transformative time in eCommerce. Platform solutions are changing rapidly. New solutions are coming available, and the current platforms are maturing quickly into multichannel solutions. We are very close to seeing the “e” drop from eCommerce Platform. And we are seeing that in our client inquiries and projects as well as seeing it in the evolving platform products.
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