19/03/2010
By Scott Thompson
When it comes to technology, many retailers are unsatisfied about fee structures, costs and flexibility, according to a survey by retail software specialists CTS Retail.
Common complaints include the way they are effectively locked into contracts and often pay unnecessarily for generic software tools they either don't need or don't use. Another gripe was the time and investment required to continually update and upgrade to different versions.
There appears to be growing interest in cloud computing, on-demand, SaaS or managed services. Around 30 per cent of respondents said they were thinking of moving to retail software packages via the cloud in the next two to three years, making it possible to pay only for what they needed (based either on the number of users, or the level of sales). Over half thought that SaaS would be one of the biggest growth areas in retail IT during the next decade. However, a number admitted to not really understanding fully the notion of cloud computing.
CTS Retail spoke primarily to company executives, IT directors and finance directors at retailers ranging in size from small independents to large multiples. Company executives (CEOs) and finance directors (CIOs) seemed more concerned with costs and fee structures, while IT directors voiced more support for managed services and spending less time on lengthy implementations and upgrades. The rising cost of maintenance from IT vendors was another common complaint from CIOs.
Greater integration of technology across all channels was also ranked as very important, as customers increasingly shop online, or via mobile phones. Almost 80 per cent of respondents acknowledged that a lot more work was needed for a truly integrated multi-channel IT approach. Many felt that out-of-the-box retail software systems were still too orientated towards traditional bricks and mortar retailing. The sentiment was that while multi-channel software tools were out there, most software vendors were not quite there yet in answering the needs of tomorrow's consumer.
