According to McKinsey, “the European digital frontier, represented by the ICT sector and its digitization of assets, uses, and labor, is only 60 percent as digitized as the US frontier.” However, the same source suggests we should remain hopeful, claiming that if Europe doubles its “digital intensity, Europe can add €2.5 trillion to GDP in 2025, boosting GDP growth by 1 percent a year over the next decade.”
Retailers are actively investing in technologies like artificial intelligence, machine learning, and automation that can transform their businesses into leaders for years to come. Whether digitization is adopted at giant FMCG retailers investing in IoT technologies to turn physical assets into smart and connected assets, fashion retailers investing in augmented reality programmes to enhance the customer experience, or grocery stores creating voice-enabled shopping; it is evident that the potential of these new technologies is only starting to be exploited.
The power of technologies like AI can be harnessed through automating supply chains, better managing and predicting stock requirements, personalising the customer experience and journey, identifying weak spots in the production cycle or customer experience before they become problematic, optimising marketing budgets, and enhancing the way retailers communicate with customers. If you would like to learn how leading European retailers are tackling the topic of digitization and automation, check out our digital roundtables.