Factors Impacting Technology Adoption In Retail

Abstract

Retailing business models worldwide are constantly being evolved as traditional retailing business models are facing major disruptions by new age retailer’s business models. Multi-channel physical retailing model is being fast replaced by Hybrid and fully online model, which enables manufacturers to connect with customers directly. Artificial intelligence (AI) is having a significant influence on the retailing industry in shaping this transformation and adoption of AI technology is influencing the value chain components of the retailer’s business to make a positive impact. The retailing industry worldwide is undergoing major transformation since the past decade. The swift transformation can be attributed to new and innovative technology landscape and fast changing consumer behavior. Retailers’ traditional business model is facing constant challenges from new-age retailing business strategies that are providing greater customer value and improved top line. The importance and motivation to do this research comes from the fact that Retailing Industry worldwide including India is going significant transformation with increased focus on e commerce and hybrid models in last decade. The key objective of the research is to identify the crucial factors that significantly influence the retailers’ adoption of artificial intelligence technology. We have presented a conceptual framework for the Artificial Intelligence technology adoption in the Indian retailing industry. The framework presented here should help organisations to build a sustained competitive advantage by adopting AI technology across all components of the organisation value chain and focusing on a smart and connected product portfolio and also achieve significant improvement in sales, market share and profit.