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Digitally-Led Mid-Tier Merchants on Track to Win Global Innovation Race, Research by ACI Worldwide and Ovum RevealsDigitally-driven mid-tier merchants that are able to bring new and innovative products and services quickly to market as well as deliver a consistent focus on customer experience are winning the global innovation race, new research by ACI Worldwide and Ovum (News - Alert) reveals. According to the Culture of Innovation Index, 37 percent of mid-tier merchants with annual revenues between $5bn and $10bn are either 'Advanced' or 'Trailblazers' when it comes to innovation, whereas 23 percent in this group are classified as 'Laggards.' The index identifies five types of organizations, as defined by their approach to innovation and business transformation: Laggards, Emerging, Tech-led, Advanced and Trailblazers. When it comes to the world's largest merchants, the situation reverses: 37 percent of merchants with annual revenues of at least $10bn are 'Innovation Laggards;' 22 percent are classified as 'Advanced' and only 8 percent are 'Trailblazers.' "Digital-led mid-tier merchants may well be on the way to becoming the super-merchants of tomorrow," commented Andrew Quartermaine, vice president, Merchant Retail, ACI Worldwide (News - Alert). "Today, growing numbers of consumers globally expect a digital-led shopping experience. Businesses that have a strong digital presence and strategy, whether they are big or small, will therefore have the edge in today's competitive environment." While there is no single formula for driving innovation within an organization, the Merchant ebook - How to become a Payments Trailblazer outlines seven key characteristics of 'Trailblazing' Merchants - the most innovative enterprises - that stand out from the rest of the market. Among those key features are: a strong central function tasked with driving innovation, an agile culture that is responsive to customer needs, taking advantage of emerging technologies and focusing on customer experience by bringing innovative products and services quickly to market. "There is no single recipe for success in today's new retail environment, but our research provides a blueprint for what the most innovative and successful merchants do right," continued Quartermaine. "Catering to a growing customer preference for digital-led or digital-influenced purchasing is key. This includes new payment options; a focus on mobile, especially in-store, and a stronger, more seamless cross-channel payment experience." Other key findings: Overall merchant performance
Customer experience is key
*Methodology:
Interviews covered a range of topics relating to two broad themes: Inputs to the innovation process (cultural and organizational drivers of innovation, particularly the way that the organization is structured with respect to identifying changing customer needs, competitive challenges and new market opportunities) and Outputs from the innovation process (outcomes from the process, in terms of factors such as the adoption and investment in emerging technologies as well as specific product innovation relating to the business area in question). Across the study, the responses to more than 100 individual questions were scored and weighted to produce combined scores for each of the Input and Output categories.
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