It has been a few months since the last holiday season, can you recall the holiday rush? How did you shop last Christmas? Just like people around the world, you probably overspent and you just realize it now. If you're a mere consumer, you benefitted from enjoying yourself and buying something you deserve. But for the retail IT department, they enjoyed the increase in profits more.
The importance of IT in businesses today continue to increase and smart retailers know how to utilize their IT department to their advantage. Gartner's 2012 Retail Tech Trends showed that budget for IT projects increased from 3 to 5 percent since 2011. As a result of this increase in budget, retailers are seeing the returns on their profits.
What do these numbers imply? Simple, retailers are now pursuing their IT projects which they believed will increase their profits in the holiday season. With budgets increasing, retail IT investments will be more successful and they can get better returns. However, retailers should be careful with their retail IT projects too.
* Mobile shopping has boomed in the last years. With the explosion of Smartphones, consumers find it more convenient to shop from their mobile phones. Many retailers were not prepared for this which led to the pressure of upgrading their e-commerce platforms immediately. The upgrade is necessary but retailers should be careful about the upgrading prices.
Retailers have to upgrade databases and use multichannel selling software. These are large-scale buys which really needs a separate budget. However, retailers should make purchases in fair market pricing and terms. Their purchases today will have a huge effect on their budget in the coming years.
* With mobile shopping, retailers are forced to pay for wireless and data networking. But due to the pressure, retailers are overspending by 20 to 50 percent which is huge.
But, they do have a choice not to overspend by non-negotiation of incentives, payment of consumer rates, failure to pool minutes and to audit monthly usage. The other causes of overspending are vendor lock-in and lack of planning on purchases. Retailers should not be hasty in making data networking investments.
* Cloud computing and hosting is something retailers might rush into as well. Retailers that don't make comparisons of cloud hosting plans will end up overspending. What retailers should do is pick the best plan for their needs. This is to avoid costly annual fees and vendor-lock ins.
Making retail IT investments is a must but retailers should be smart about it. It cannot be reiterated more how important making budget decisions are today.
The importance of IT in businesses today continue to increase and smart retailers know how to utilize their IT department to their advantage. Gartner's 2012 Retail Tech Trends showed that budget for IT projects increased from 3 to 5 percent since 2011. As a result of this increase in budget, retailers are seeing the returns on their profits.
What do these numbers imply? Simple, retailers are now pursuing their IT projects which they believed will increase their profits in the holiday season. With budgets increasing, retail IT investments will be more successful and they can get better returns. However, retailers should be careful with their retail IT projects too.
* Mobile shopping has boomed in the last years. With the explosion of Smartphones, consumers find it more convenient to shop from their mobile phones. Many retailers were not prepared for this which led to the pressure of upgrading their e-commerce platforms immediately. The upgrade is necessary but retailers should be careful about the upgrading prices.
Retailers have to upgrade databases and use multichannel selling software. These are large-scale buys which really needs a separate budget. However, retailers should make purchases in fair market pricing and terms. Their purchases today will have a huge effect on their budget in the coming years.
* With mobile shopping, retailers are forced to pay for wireless and data networking. But due to the pressure, retailers are overspending by 20 to 50 percent which is huge.
But, they do have a choice not to overspend by non-negotiation of incentives, payment of consumer rates, failure to pool minutes and to audit monthly usage. The other causes of overspending are vendor lock-in and lack of planning on purchases. Retailers should not be hasty in making data networking investments.
* Cloud computing and hosting is something retailers might rush into as well. Retailers that don't make comparisons of cloud hosting plans will end up overspending. What retailers should do is pick the best plan for their needs. This is to avoid costly annual fees and vendor-lock ins.
Making retail IT investments is a must but retailers should be smart about it. It cannot be reiterated more how important making budget decisions are today.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI to learn more about it cost management solution consulting
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