Although the Internet of Things (IoT) has not yet arrived in the mainstream, it is emerging as a critical path to digitizing the customer experience. And for some retailers, according to IDC, the future of is already here.

The goal? Frictionless shopping.

Over the years, alignment between offline and online experiences has been challenging for retailers. Consumers desire on-demand digital shopping anytime and anywhere, but they also enjoy visiting a brick-and-mortar store to check out their product options in person. Perfecting frictionless shopping experiences is not just a competitive advantage; the life of the brand depends on how well retailers make their offerings visible in both the digital and physical worlds.

Technologies such as WiFi, beacons, augmented and virtual reality, and mobile devices will continue to play important roles in achieving this feat. But, they will also widen the scope of classical ERP. Without connecting these technologies to the proper context of the shopping context, the impact of IoT-enabling technologies will be limited. Therefore, retailers need to make their ecosystem more responsive and transform customer data into personalized shopping experiences.

Find out which IoT opportunities your retail business should pursue. Watch this interview with Leslie Hand, research manager for the retail industry at IDC.

Find out how the IoT is transforming industries such as retail, consumer products, discrete manufacturing, and healthcare. Read the IDC study: “IoT and Digital Transformation: A Tale of Four Industries.”

Kai Goerlich is the Idea Director of Thought Leadership at SAP.