target audience: TECH BUYER Publication date: Jun 2023 - Document type: IDC Perspective - Doc Document number: # US50823322
Big Names in Hardware Reposition as Software and Solutions Providers, Meeting the Changing Needs of Retailers
Content
List of Figures
Get More
When you purchase this document, the purchase price can be applied to the cost of an annual subscription, giving you access to more research for your investment.
Related Links
Abstract
This IDC Perspective looks at the market conditions that are leading hardware providers to pivot to a software and services model, as well as how that pivot requires an organization to change how it does business. We examine three companies (Honeywell, Panasonic Connect, and Zebra) known for their retail hardware devices that are broadening their offerings to include software and services. We also offer advice on working with hardware providers moving forward. The software-as-a-service model has gained significant traction among retailers as the primary way to digitally transform their businesses, remain agile, and juggle compute loads at the edge or in the cloud. Software helps retailers personalize customer experience, engage the workforce, and digitize store operations. In this shifting model, hardware devices become data collection points, transactional interfaces, and problem-solving tools that enable the software, while the software drives the value for the retailer. As a result of this shift, traditional hardware vendors are repositioning themselves, adding software and services capabilities to their offerings to add strategic value to retail businesses.
"Put simply, the role of handheld devices in retail has changed. It used to be enough for hardware devices to solve single process problems, like receiving or ordering, and as a result, only a select group of employees had access. Now retailers need handheld devices to connect the frontline employee with information, tools, their peers, and next best actions to improve the overall customer experience. Software drives this connection, and hardware companies are moving to meet retailer needs through strategic acquisitions, software innovation, and culture change," says Leslie Hand, GVP, IDC Retail and Financial Insights.