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.
You read it right, the retail IT department got their hands on profits through higher holiday sales last holiday season. What made them capable to join the race? IT budgets grew 3 to 5 percent since 2011 and retailers had a 5 percent increase in their budgets. According to Gartner's 2012 Retail Tech Trends Study, this is a triple increase in the budget.
The increase in the budgets for retail IT projects is due to retail IT companies taking more control about earning revenues. Instead of just taking the back seat all the time, now, they want to enter the picture. Through this increase in budgets, retail IT departments can enjoy more success in earning profits and a better return on investments. But of course, retailers should take caution when investing in IT projects.
* 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.
Aside from the upgrading the platform, retailers have to invest in multichannel selling software too. Retailers should be prepared to increase their IT budget. However, retailers should always compare market prices and terms before buying. Any purchase made today will greatly affect your IT budget in the next years.
* Retailers tend to overspend on wireless and data networking by 20 to 50 percent. The reason behind this is the growing popularity of mobile shopping. Retailers had no choice but to increase their budget for this.
They can try to negotiate for incentives or change plans more suited for their needs. Vendor lock-in is another cost of overspending.
* Retailers also have to invest on cloud hosting and computing. Retailers feel the pressure to purchase this service ASAP too. So, they ended up not paying for the best model for their business needs which leads to unnecessary overspending.
Investing in IT projects will not only guarantee you returns during the holidays, but it will help you earn more profits throughout the year. However, don't make hasty decisions. Spending on IT is not cheap and any expenses incurred today will affect your budget in the following years.
You read it right, the retail IT department got their hands on profits through higher holiday sales last holiday season. What made them capable to join the race? IT budgets grew 3 to 5 percent since 2011 and retailers had a 5 percent increase in their budgets. According to Gartner's 2012 Retail Tech Trends Study, this is a triple increase in the budget.
The increase in the budgets for retail IT projects is due to retail IT companies taking more control about earning revenues. Instead of just taking the back seat all the time, now, they want to enter the picture. Through this increase in budgets, retail IT departments can enjoy more success in earning profits and a better return on investments. But of course, retailers should take caution when investing in IT projects.
* 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.
Aside from the upgrading the platform, retailers have to invest in multichannel selling software too. Retailers should be prepared to increase their IT budget. However, retailers should always compare market prices and terms before buying. Any purchase made today will greatly affect your IT budget in the next years.
* Retailers tend to overspend on wireless and data networking by 20 to 50 percent. The reason behind this is the growing popularity of mobile shopping. Retailers had no choice but to increase their budget for this.
They can try to negotiate for incentives or change plans more suited for their needs. Vendor lock-in is another cost of overspending.
* Retailers also have to invest on cloud hosting and computing. Retailers feel the pressure to purchase this service ASAP too. So, they ended up not paying for the best model for their business needs which leads to unnecessary overspending.
Investing in IT projects will not only guarantee you returns during the holidays, but it will help you earn more profits throughout the year. However, don't make hasty decisions. Spending on IT is not cheap and any expenses incurred today will affect your budget in the following years.
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 expense reduction consulting service
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