Analyze Impact of Digital Transformation on The Retailing Value Chain

Abdul Hakim Noori; Hekmatullah Noori

Abstract

The impact of digital transformation on the retailing value chain is a significant area of study, with implications for the entire sequence of activities involved in delivering a product or service to consumers. The value chain in retail encompasses every stage, from product creation to customer satisfaction, and can be optimized to gain a competitive edge. Digital transformation has been found to erode institutional retailing as the primary interface to the customer, leading to a redefinition of the supply chain into a value chain Key pillars of value chain success include agility, resiliency, collaboration, and sustainability, and technology such as artificial intelligence, machine learning, and automation are transforming supply chains into holistic, integrated networks focused on value creation Understanding the value chain and strategically applying IT solutions is essential in navigating the evolving landscape of the retail industry The value chain can be a great framework for digital transformation, helping to streamline data and automate value-adding activities. Digital disruption is reshaping the old idea of institutional retailing as the main customer contact, leading to a fundamental redesign of the supply chain into a more flexible and customer-centric value chain. This change emphasizes how crucial sustainability, adaptability, resilience, and teamwork are to the success of value chains. Retailers may leverage advanced technologies like automation, machine learning, and artificial intelligence to convert their supply chains into flexible, interconnected networks that prioritize customer value creation and delivery over operational efficiency. Using IT solutions strategically in the context of the value chain is crucial for navigating the retail industry's complicated and constantly changing environment. Retailers may simplify data by utilizing digital tools and insights.