Insight: Legacy systems slowing down retailers in their search for growth

Insight: Legacy systems slowing down retailers in their search for growth

A significant minority of retailers say their legacy systems are slowing them down and causing them to miss their growth targets, new research suggests.

Managed IT service provider Redcentric, questioned representatives of 200 retailers and found that almost 40 per cent believe their growth plans have been set back by internal legacy systems since the technology will not flex to meet today’s demands. And 36 per cent say they cannot scale up as quickly as they’d like at peak times such as Christmas and Black Friday. As a result over half are considering cloud technology.

Simon Michie, CTO of Redcentric, said, “Retailers need to be agile enough to engage with their customers across multiple channels and ensure the service they deliver is fast, efficient and accurate at all times. To do that, it’s vital a robust but flexible IT systems architecture is in place. New investment in IT is the key to this but many are being held back by the lack of skills and training of their own in-house IT teams.”

Indeed, the survey revealed that 76 per cent of respondents plan to spend more on IT infrastructure and networks in 2016 than they did last year, highlighting that retailers understand the importance of improving their current systems to drive further growth.

Simon added, “For many businesses, the cloud is very appealing and offers a raft of potential benefits. The easy scaling up of additional capacity, the move to an opex spending model, the offloading of responsibility to a third party and enterprise grade disaster recovery are just a few of the key advantages organisations will feel once cloud has been adopted.

“These are challenging times for retailers. With the march online and the adoption of omnichannel strategies accelerating, competition is intense and retailers need to stand out from the pack to drive loyalty and win new business,” concluded Simon. “That’s why they need to invest in new technology and why the cloud can provide the agility they need to build competitive edge and deliver success both today and also in the future.”

Skills

Posted on

August 26, 2016

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