After an insightful presentation on commerce agility at the 2015 Demandware XChange conference in Las Vegas in April, Scott Galloway, founder and CEO of the business intelligence firm L2, sat down with Elana Anderson, Demandware SVP of Global Marketing, for a Q&A session to dig deeper into the research. A self-described “trainspotter,” he also shared other insights that he’s seeing in the digital commerce landscape.
Galloway contends that the benefits of ecommerce agility go beyond the boundaries of online commerce. He notes that although in-store sales were the traditional primary source of revenue, in recent years, the landscape has shifted where ecommerce is the leading driver of growth and innovation for the entire company. To support this theory, he noted that the companies ranking higher on L2’s Digital IQ index® tend to have an organizational structure where the head of digital reports directly to the CEO, which indicates the strategic importance of digital to the entire company.
At the same time, choosing the right digital commerce platform has become an increasingly important decision and on this topic, Galloway uses a simple analogy of comparing a Porsche to a F1 supercar. Specifically, if you have the capital and a large team to support and maintain it, the F1 is the superior vehicle. However, many prefer the Porsche that provides the agility and performance you need with minimal upkeep. Custom platforms can be superior F1 supercars if you have the capital and labor to sustain it but more retailers, including larger enterprises, are increasingly choosing cloud platforms to drive sustainable growth.
“The types of companies that start with a clean slate and say ‘What technology would we pick if we could pick anything, without having been built into a legacy format or platform,’ they are typically choosing, in disproportionate amount, cloud-based solutions.”
As more retailers place a premium on agility and innovation, who will be the beneficiaries of this changing landscape? Galloway unequivocally points to you and me. In the end, he says, “the consumer always wins”.