CTOs Take the Lead in Driving Growth Amid Economic Challenges

Why the CTO is finally in the driver's seat of growth

Business intelligence (BI) has become indispensable for retailers aiming to stay competitive, says Shopify managing director, APAC and Japan, Shaun Broughton. "Business intelligence is invaluable to today's retailers, enabling teams to quickly pinpoint inefficiencies, spot new opportunities, and drive business growth," says Broughton. The ability to harness data effectively allows retailers to make informed decisions that propel growth. "Our focus is on building a streamlined and unified commerce experience for merchants and developers, one that allows customer and inventory data to be easily consolidated in one place so it can be analysed and used to inform decision-making," he says. Shopify's recent upgrade to its analytics dashboard exemplifies this commitment, offering retailers up-to-the-minute data to stay ahead of the curve. With data now available in real-time, the new dashboard creates rich visualisations and new ways to curate data and customise reports, making it faster and easier to discover critical insights so retailers can make better business decisions, faster. CTOs play a pivotal role in guiding their organisations through the complexities of technological investments. "CTOs are often in the driver's seat of a business's technology and innovation journey, responsible for ensuring that investments in technology foster innovation and provide a competitive advantage," says Broughton. Shopify supports this by providing scalable solutions that reduce the need for extensive development work. "We ensure our solutions are purpose-built to meet the unique needs of retailers and can scale with them as they grow," he says. AI and automation are at the core of modern retail strategies, offering significant ROI by streamlining operations and enhancing customer experiences. "Businesses are looking to do more with less, and we're seeing a focus from retailers on exploring innovations like AI chatbots and robotic process automation," says Broughton. Retailers can experiment with AI at scale using platforms like Shopify, which come with "easily implemented features and apps that make use of the latest AI, analytics, and automation advancements". Identifying the right innovation partners is essential for retailers looking to stay ahead. "It's important to identify companies that can absorb innovation costs by providing frequent upgrades and out-of-the-box solutions rather than requiring custom builds," says Broughton. Shopify's significant investment in research and development - over $1 billion last year alone - ensures it remains a leader in driving innovation. This can be seen in the hundreds of new products and product updates Shopify releases each year. Moreover, with an expansive network of partners and over 13,000 apps in the Shopify App Store, retailers have access to a wide range of tools designed to work seamlessly with Shopify. Successful technology adoption requires more than just implementation; it needs to be embraced by the entire organisation. "Regular, hands-on training sessions play a vital role, along with continual upskilling to ensure that even non-technical employees can navigate the latest features and applications confidently," says Broughton. Shopify's code-free customisation capabilities further simplify the adoption process, empowering teams without requiring extensive technical expertise. AI and automation will continue to play significant roles in retail. Broughton highlights several advancements, including AI image generation and editing capabilities, which have already seen widespread adoption among Shopify merchants. "In January, we released AI image generation via Media Editor and saw merchants save over 1 million AI-generated images to their storefronts in just six months," he says.

Economic challenges charge up technology investments

"Innovation is invaluable: 99 per cent of retailers plan to invest in innovation in the coming 12 months, with business intelligence the No. 1 area in which they plan to increase their technology spend," the report says. "This focus on data and analytics can drive other technologies that support innovation aimed at efficiency, such as automation and AI, while supporting broader growth tactics." Meanwhile, Broughton says, there is surging demand for value among local consumers, and "a strong preference for omnichannel shopping experiences, and a renewed focus on efficiency among retailers as they tackle rising costs". Currently, 79 per cent of Australians are cutting down on expenses, and over half are looking for the best value when they shop, the report found. "Retailers face a dual challenge,''⁣ Broughton says. While 34 per cent face challenges related to rising customer expectations, 25 per cent are facing falling consumer spending. However, retailers are well-positioned to tackle these challenges and capitalise on opportunities. "Shopify just launched 150-plus new updates and we invest $US1 billion each year on research and development to create and deliver the most effective industry-leading commerce technology to help retailers grow," Broughton says. Tech investments are seen as central to enhancing efficiency and meeting the demands of consumers, Broughton says. "Business intelligence is the No. 1 area [where] Australian retailers planned to increase investment in the coming year, with 65 per cent of retailers citing it, even more than AI and automation.''⁣ These technologies drive efficiency, with business intelligence underpinning AI and automation, both of which need good data. In addition to business intelligence, 58 per cent of retailers are planning to increase investment in commerce systems over the next 12 months, and 56 per cent are also planning to invest more in inventory management systems. "Efficiency issues, including lack of operational efficiency, inefficient supply chain practices, and manual processes, are a major contributor to retailers' internal challenges in 2024, impacting some 61 per cent of retailers," Broughton says. Data analytics plays a crucial role in guiding investment decisions for retailers and is ''⁣a key area in which retailers can differentiate themselves and improve their business outcomes", Broughton says. However, for data analytics to work effectively, retailers need to consolidate their data and ensure it is not siloed in discrete business systems. Technologies like business intelligence, AI, automation, inventory management systems and commerce systems are all aimed at ultimately improving the customer experience. For example, an investment in tools to keep track of key business data and metrics and help mitigate issues with low or no stock issues. ''⁣Investment in an inventory management system can give a retailer greater oversight of their inventory so they can provide customers with real-time visibility of stock," Broughton says. A unified commerce strategy is essential for retailers to meet evolving consumer preferences. "Interestingly, 43 per cent of Australian consumers prefer shopping in store, 5 per cent more than last year, and proportionately more than those who like shopping online, at 31 per cent," Broughton says. But 26 per cent of consumers enjoy shopping online and in store equally. This shift highlights the need for a robust omnichannel strategy. Global market forces are also shaping investment decisions. Disruptive international marketplace operators like Shein and Temu have captured over $2 billion in Australian spending. "Forward-thinking retailers know they need to invest to remain competitive, with artificial intelligence and sustainability being two priority areas," says Australian Retailers Association chief executive Paul Zahra. "Even smaller retailers have prioritised the investment in artificial intelligence in the coming year ahead - knowing it can not only help them reach a larger portion of customers, but also help reduce costs in many areas." In response to these pressures, retailers are focusing on investments that drive value through enhanced customer experiences. "This could include expanding a customer's choice by adding a new product range, offering a virtual shopping assistant, or improving convenience through an online market offering," Zahra says.