There is no comparing the craziness and wild shopping experience during the holidays. There is the holiday rush everywhere. Business are making money while consumers enjoy buying gifts for their loved ones. But las holiday season, retailers found another way to earn more money and that is through investing in their IT projects.
Did that come as a surprise to you? The retail IT department took advantage of the crazy holiday sales ad increased their profits before the year ends. And why not? IT budgets rose from 3 to 5 percent since 2011 while retailers had a 5 percent budget increase.
It's about time retailers utilize their IT department especially in a digitally driven world. With consumers split between mobile shopping and traditional shopping, retailers can earn more by tapping into both. Increasing the budget for IT projects will be beneficial in the long run. However, retailers should also be cautious with their budget.
* 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.
While it is imperative that retailers have their own wireless and data networking, retailers can lower down this percentage. Retailers should look into vendor-lock ins, incentives and monthly usage. There's no reason to overspend on something retailers will not be using.
* 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.
Did that come as a surprise to you? The retail IT department took advantage of the crazy holiday sales ad increased their profits before the year ends. And why not? IT budgets rose from 3 to 5 percent since 2011 while retailers had a 5 percent budget increase.
It's about time retailers utilize their IT department especially in a digitally driven world. With consumers split between mobile shopping and traditional shopping, retailers can earn more by tapping into both. Increasing the budget for IT projects will be beneficial in the long run. However, retailers should also be cautious with their budget.
* 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.
While it is imperative that retailers have their own wireless and data networking, retailers can lower down this percentage. Retailers should look into vendor-lock ins, incentives and monthly usage. There's no reason to overspend on something retailers will not be using.
* 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 solution
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