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Omnichannel Retailer Capabilities Model


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The Omnichannel Retailer Capabilities Model is a structured decomposition of the essence of what a multi-channel retailer (eCommerce, social commerce, physical stores, et al.) does, expressed as a set of business capabilities. Retail companies are in the throes of massive disruptions, thanks partly to globalization, competition from digital natives, rising consumer expectations, and changing buying behaviors. A keen understanding of what business capabilities drive a retail company is a foundational setup for the essential transformation. The Omnichannel Retailer Capabilities Model comprises about 450 capabilities and is a structurally sound and stable model to help retailers survive and thrive.

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The Omnichannel Retail Transformation Imperative:

The transformation into an omnichannel retailer has become a strategic imperative for most retailers due to the rapidly evolving retail landscape, changing consumer behaviors, and increasing competition. Retailers must adapt to these changes to stay relevant, meet customer expectations, and gain a competitive advantage.

  • First, consumer behaviors and expectations have shifted significantly in recent years. With the rise of digital technology, customers can access more information and options than ever before. They expect seamless, personalized experiences across all channels, including online, mobile, social media, and in-store. By adopting an omnichannel approach, retailers can provide a consistent and integrated shopping experience, increasing customer satisfaction and loyalty.

Second, competition in the retail industry has intensified, with new players entering the market and existing ones expanding their offerings. Traditional brick-and-mortar retailers now compete with e-commerce giants, direct-to-consumer brands, and niche online retailers. To survive and thrive, retailers must leverage the strengths of each channel, combining the convenience of online shopping with the tactile and immersive experiences of physical stores. This integrated approach helps retailers differentiate themselves from competitors and reach a broader customer base.

Finally, adopting omnichannel retailing enables retailers to collect and analyze data from multiple sources, resulting in valuable insights into customer preferences and behavior patterns. By understanding their customers better, retailers can make data-driven decisions, optimize marketing efforts, and tailor their offerings to meet customer needs more effectively.

Business Capabilities are a Cornerstone for Transformation

For a Retailer to transform successfully into an Omnichannel leader, it is essential to establish a structurally strong foundation to support change and innovation over time. This is where business architecture and business capabilities come into play. Business architecture is creating a structured model, including an abstraction of its operations, functions, systems, and resources. This model can help enterprises understand how their business operates, identify inefficiencies, and develop a plan to optimize and streamline operations. In addition, by creating a clear picture of their business architecture, companies can better understand how different business units and functions interact and how changes in one business area can impact other areas.

Business capabilities encapsulate and abstract the functions, skills, and resources a company needs to execute its business strategy successfully. By defining and organizing their business capabilities, companies can identify gaps and redundancies and develop a roadmap to address them. This helps ensure the firm has the necessary resources to execute its strategy and drive innovation over time.

Business architecture and capabilities provide firms with a framework to assess and optimize their operations, reduce costs, and drive innovation. By taking a structured approach to transformation, enterprises can build a foundation capable of supporting ongoing change and adaptation and position themselves for success in a rapidly evolving industry.

(NOTE: The current product provides a comprehensive business capability model. It does not include other business architecture artifacts.)

What does the Omnichannel Retailer Capabilities Model include?

The Omnichannel Retailer Capabilities Model comprises 450 capabilities, and the deliverable includes the following artifacts

Omnichannel Business Capabilities Matrix:

  • An Excel spreadsheet with the capabilities using the grouping feature.
  • A PowerPoint format with the top two levels presented in a nested visualization.
  • A Word document with capabilities in a multilevel list format
  • Capability definitions (level 3)
  • Capability KPIs
  • PLUS, Bonus Files.

Uses and Benefits of the Omnichannel Retailer Business Capabilities Map:

As most top technology and business leaders know, business capabilities are a foundational component of business architecture.

The retail industries have witnessed dramatic shifts in recent years and have undergone a foundational transformation with the advent of eCommerce, social commerce, and mobility. The advent of digital channels has contributed to the need for a way to achieve real-time insights into consumer behavior and facilitate a smooth omnichannel journey and an optimal buying experience.

The Omnichannel Retailer Capabilities Model intends to capture a detailed and nuanced view of what a retailer does. It includes the essential features and emerging and value-add functions/capabilities.

Capability maps are invaluable as they help:

  • Bridge the gap between business and IT with a common language.
  • Understand the essence of what a business does in structurally stable terms.
  • Align development efforts to strategic priorities.
  • Conduct a gap analysis between current and desired states at a capability level and chart out a transformation roadmap.
  • Use capabilities to conduct a pre-merger target analysis and post-merger integration.

The Omnichannel Retailer Capabilities Model is decomposed into three levels depending on the modularity and granularity necessary.

Created by experts, the retail capabilities list is structurally sound, internally coherent, and mostly adheres to the construct of MECE (mutually exclusive and collectively exhaustive).

Fine Print:

  • We sell digital products, so there are no returns, refunds, or replacements. Therefore, please read the product description carefully before making a purchasing decision.
  • A generic set of deliverables and templates may or may not fit your needs, or the content relevance will vary substantially.
  • Sold on an as-is basis and without any implied or explicit warranties
  • Consultants and firms wanting to use it for their clients have a different pricing model.
  • The sale is for digital products only and does not include customization or implementation help.
  • Please review our standard terms of service.


Omnichannel Retailer Capabilities Model


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Consultancy License: A consulting or professional services or IT services company that intends to use the deliverables for their client work need to pay the consultancy license fee. You pay only once for using the deliverable forever. You are entitled any new updates within 12 months.

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