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systems originally implemented to solve
specific problems for specific channels.
Many retailers, for instance, have
relied on e-commerce engines to deliver
their omni-channel experiences. Lower
percentages have centralized on in-
store POS, as well as customer relation-
ship management (CRM) or enterprise
resource planning (ERP) solutions. But
the limitations of purpose-built and
disparate technology environments, say
analysts at Boston Retail Partners, strain
to keep pace with rapid advancements in
consumer technology and behavior.
“In omni-channel, you have multiple
channels, but you don’t have one piece
of software, one version of the truth,”
Morris recently told eMarketer. “You
have many versions of the truth. In the
unified commerce world, it’s all connect-
ed in real time. I don’t just mean the Web
side, but the mobile side, the Web side
and the store side – all in real time.”
The complexity is even greater
considering the other platforms that
enable commerce – such as inventory
management, order management and
merchandising – typically are disparate
solutions as well.
“The inherent weaknesses of this
model have become very apparent, as
retailers chasing omni-channel capabili-
ties have to overcome the almost impos-
sible hurdle of integrating disparate
legacy systems,” says the research and
consultancy firm.
Not that retailers always had much
of a choice. Decades ago, most retailers
decided on decentralized POS, largely
due to the immaturity of networking
technology, Morris explains. Networks
of the past, he reminds us, were slower,
typically not redundant and costly. But
with the emergence of nearly ubiqui-
tous fat pipes, cloud computing and
software-as-as-service (SaaS) delivery
systems, solutions such as virtual
private networks, back-up and disaster
recovery, redundancy, on-demand com-
puting, content delivery and advanced
business and analytic applications are
available and affordable for even spe-
cialty and smaller businesses.
In turn, retail IT executives are
looking to leverage such capabili-
ties to implement single, centralized
commerce platforms that support
instantaneous transactions, real-time
and contextual marketing efforts,
Phases of Journey Toward Unified Commerce Platform
Source: Boston Retail Partners, NRF
The State of Omni-Channel Services
Source: Boston Retail Partners
0
20
40
60
80
100
Buy in-store, ship from DC, other
store, or vendor
Returns accepted across channels
Buy online, pick up in-store
Buy online, ship from store
Special order from any channel
Inventory visibility across channels
Order visibility across channels
Buy anywhere, ship anywhere
Reserve online, pick up in store
Reserve inventory in another store
Exploration
Consideration
Strategy
Execution
Realization
30%
29%
24%
24%
23%
22%
17%
17%
12%
12% 15%
44%
15%
46%
15%
47%
20%
52%
27%
41%
18%
28%
12%
47%
17%
37%
13%
23%
36%
13%
9%
37%
25%
23%
30%
Implemented and working well
Implemented but needs improvement
Implement within 3 years
Monitoring Single
Platform Trend
and Gathering
Information for
Education
Actively
Discussing
Viability of a
Single Platform
Aproach, but no
Formal Plan or
Budget in Place
Creating a
Formal Plan,
Developing
Business Case,
and Seeking
Budget
Implementing
a Strategy -
Business and
Technical - to
Manage Change
Operating a
Single Platform
and Measuring
Benefits to
Gauge Future
Investments
Key Initiatives Addressed by a Unified Commerce Platform
Source: Boston Retail Group, NRF
0%
5%
10%
15%
20%
25%
30%
25%
24%
19%
15%
14%
4%
Quickly
Respond to
Consumer
Demands
% of respondents
Increase
Associate
Productivity
Support
Omni-channel
Strategy
Rationalize
Portfolio and
Reduce
Complexity
Transform
Store to be
Digital
Efficiently Open
New Store
Formats
(e.g. Pop-up
Stores)
Inside
Outdoor
|
Spring
2015
34