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Retail IT Spend on the Rise: Aldata Solution's 2010 Global Retail CIO Survey

Strategic Insights

— 1 min read

Aldata Solution's second annual Global Retail CIO Survey, jointly sponsored with IBM, reveals a notable increase in IT budgets for retailers, with 26% of respondents expecting their IT budget to rise. This year's survey indicates a shift from traditional end-to-end projects to process optimization, with a focus on quick returns on investment. Retailers are investing in systems to attract and keep customers, with multi-channel CRM and loyalty systems emerging as key priorities.

Key Takeaways:

  • IT budgets are recovering, with an average of 1.3% of sales, up from 1% last year.
  • 26% of respondents expect their IT budget to increase, the same figure as last year.
  • The survey reveals a shift from traditional end-to-end projects to process optimization, with a focus on quick returns on investment.
  • Optimizing the product / place / promotion offer is becoming an increasingly critical element of retail IT spend, with more than 50% of retailers planning to upgrade or implement new systems in areas such as Automated Replenishment, Assortment Optimization, Promotions Optimization, and Promotions Management.
  • Master Data Management (MDM) has the highest planned implementation, with 35% across the enterprise and 28% for Supplier Management.
  • Multi-channel CRM is the most important application, with 42% of respondents yet to implement, but with plans to do so within the next three years.
  • Loyalty systems are also a priority, with 38% of CIOs planning to implement linked to buying patterns and behavior within the next three years.
  • Systems that support customer safety are considered the most important application by 47% of respondents.
  • Sustainability is not a priority, with an average score of 5.1 on a scale of 1 to 10.

Statistics:

  • Estimated total retail market in the Americas and Europe by sales: 8 percent.
  • Combined sales of survey participants: $528 billion from more than 62,000 stores.
  • Number of CIOs and IT directors interviewed: 109.
  • Number of countries represented in the survey: 28.
  • Annual revenue requirement for survey participants: $100 million.
  • Average IT budget as a percentage of sales: 1.3%.

Sources:

  • Aldata Solution
  • IBM
  • Martec International (retail industry research specialists)
  • The 2010 Global Retail CIO Survey, Aldata Solution
  • Aldata 100% Retail-Wholesale
  • About IBM
  • Martec International
  • VerticalNews.com

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