Abstract
Companies are increasingly looking for ways to understand and profitably leverage digital transformation with a vast amount of new communications and computing technologies. Despite the potential for digital transformation to generate substantial economic benefits, very few businesses have undergone successful digital transformations. However, evolving consumer attitudes and behaviors, technological advances, new competitive pressures, and laser thin margins, accelerated by the COVID-19 pandemic, are driving digital transformation in the grocery business. Brick and mortar, e-commerce companies, as well as new start-ups, are making major investments in all aspects of the digital grocery ecosystem—the online shopping experience, automated picking, delivery, and the digital supply chain. Retailers are connecting their investments to enhanced customer loyalty, revenue, and ultimately profit. This research—based on inductive methods—aims to discuss key drivers and technologies utilized in digital grocery business and contributes by introducing a model of digital grocery ecosystem to better understand digital transformation of the grocery business.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Nambisan, S., Lyytinen, K., Majchrzak, A., Song, M.: Digital innovation management: reinventing innovation management research in a digital world. MIS Q. 41 (2017). doi:https://doi.org/10.25300/MISQ/2017/41:1.03
Brownlow, J., Zaki, M., Neely, A., Urmetzer, F.: Data-driven business models: a blueprint for innovation (2015)
Gupta, S.: Driving Digital Strategy: A Guide to Reimagining Your Business. Harvard Business Review Press, La Vergne (2018)
Kane, G.C., Palmer, D., Nguyen-Phillips, A., Kiron, D., Buckley, N.: Achieving digital maturity: adapting your company to a changing world (2017)
Gudergan, G., Mugge, P., Kwiatkowski, A., Abbu, H., Michaelis, T.L., Krechting, D.: Patterns of digitization – what differentiates digitally mature organizations? In: Proceedings, 2019 IEEE International Conference on Engineering, Technology and Innovation (ICE/ITMC): Sophia Antipolis Innovation Park, France, 17–19 June 2019, Valbonne Sophia-Antipolis, France, pp. 1–8 (2019)
McAfee, A., Brynjolfsson, E.: Big data: the management revolution. Harvard business review 90 (2012)
Westerman, G., Tannou, M., Bonnet, D., Ferraris, P., McAfee, A.: The digital advantage: how digital leaders outperform their peers in every industry (2012)
Gerald, K.: Digital maturity, not digital transformation (2017). https://bit.ly/2Ga6evy
Mugge, P., Abbu, H., Michaelis, T., Kwiatkowski, A., Gudergan, G.: Patterns of digitization. Res. Technol. Manag. 63(2), 27–35 (2020)
Abbu, H., Mugge, P., Gudergan, G., Kwiatkowski, A.: DIGITAL LEADERSHIP - character and competency differentiates digitally mature organizations. In: 2020 IEEE International Conference on Engineering, Technology and Innovation (ICE/ITMC), Cardiff, United Kingdom, pp. 1–9 (2020)
Abbu, H., Gopalakrishna, P.: Synergistic effects of market orientation implementation and internalization on firm performance: direct marketing service provider industry. J. Bus. Res. (2019)
Kulipers, D., Simmons, V., van Wamelen, J.: Reviving grocery retail: six imperatives. McKinsey & Company (2018). https://www.mckinsey.com/industries/retail/our-insights/reviving-grocery-retail-six-imperatives#
Begley, S., Marohn, E., Mikha, S., Rettaliata, A.: Digital disruption at the grocery store (2020). https://www.mckinsey.com/industries/retail/our-insights/digital-disruption-at-the-grocery-store
Thakker, K.: Nearly one third of U.S. households shopped for groceries online in the past month, report says. Grocery Dive (2020). https://www.grocerydive.com/news/nearly-one-third-of-us-households-shopped-for-groceries-online-in-the-pas/575038/
Morely, C.: What’s happening in the U.S. grocery landscape? Forbes (2017). https://www.forbes.com/sites/chrismorley/2017/05/03/whats-happening-in-the-u-s-grocery-landscape/#56730e872dbb
Incisiv. Grocery digital maturity benchmark, 2020 (2020)
Redman, R.: FMI: online grocery sales jumped 300% early in pandemic. Supermarket News (2020). https://www.supermarketnews.com/issues-trends/fmi-online-grocery-sales-jumped-300-early-pandemic
Palmer, A., Repko, M.: How the coronavirus pandemic helped convince grocery chains to experiment with new tech. CNBC (2020). https://www.cnbc.com/2020/09/06/how-coronavirus-convinced-grocery-chains-to-experiment-with-new-tech-.html?__source=iosappshare%7Ccom.apple.UIKit.activity.Mail
Abbu, H.: Changing needs of online customers. Triangle Bus. J. (2017). https://www.researchgate.net/publication/334572863_Changing_Needs_of_Online_Customers
Evins, R.: 7 key areas for digital transformation in grocery. Grocery Dive (2017). https://www.grocerydive.com/news/grocery--7-key-areas-for-digital-transformation-in-grocery/534746/
High, D., McHale, B.: Omnichannel physical store integrated with digital IoT (2020). https://www.linkedin.com/pulse/omnichannel-physical-store-integrated-digital-iot-donald-high/?trackingId=Hm3S%2B2XIArJu%2FauX5VIG1Q%3D%3D
Ladd, B.: Retail stores should become large vending machines by installing micro-fulfillment centers (2020). https://brittainladd.com/retail-stores-are-about-to-become-large-vending-machines/
Grimaldi, M.: 3 Key trends retailers have embraced during the pandemic. Am. Mark. Assoc. (2020). https://www.ama.org/marketing-news/3-key-trends-retailers-have-embraced-during-the-pandemic/
IRI Insights. Changing the e-commerce experience. Retail Leader (IRI) (2020). https://retailleader.com/IRI-insights-changing-ecommerce-experience?utm_source=omeda&utm_medium=email&utm_campaign=NL_Retail+Leader+Essentials&utm_keyword=Advertising&oly_enc_id=1461D2006834I1V
Peterson, H.: Walmart is unleashing 2 key weapons against Amazon in 700 store. Business Insider (2018). https://www.businessinsider.com/walmart-online-pickup-tower-review-2017-8
Peterson, H.: Walmart unveils a grocery-picking robot to take on Amazon and Kroger. Business Insider (2020). https://www.businessinsider.com/walmart-unveils-alphabot-to-battle-amazon-and-kroger-2020-1
Repko, M.: Walmart signs trio of drone deals as it races to play catch-up with Amazon. CNBC (2020). https://www.cnbc.com/2020/10/05/walmart-signs-drone-deals-as-it-races-to-play-catch-up-with-amazon.html?__source=iosappshare%7Ccom.apple.UIKit.activity.Mail
Kleckler, A.: Walmart accelerates drone deliveries. Retail Leader (IRI) (2020). https://retailleader.com/walmart-accelerates-drone-deliveries?utm_source=omeda&utm_medium=email&utm_campaign=NL_Retail+Leader+Essentials&utm_keyword=&oly_enc_id=1461D2006834I1V
Ward, T.: Walmart and Zipline team up to bring first-of-Its kind drone delivery service to the United States (2020). https://corporate.walmart.com/newsroom/2020/09/14/walmart-and-zipline-team-up-to-bring-first-of-its-kind-drone-delivery-service-to-the-united-states
Redman, R.: Albertsons Cos. to test online grocery pickup lockers. Supermarket News (2020). https://www.supermarketnews.com/online-retail/albertsons-cos-test-online-grocery-pickup-lockers
Skorupa, J.: Kroger tech investments deliver impressive ROI (2020). https://risnews.com/kroger-tech-investments-deliver-impressive-roi
Redman, R.: Kroger plans three more Ocado automated warehouses. Supermarket News (2020). https://www.supermarketnews.com/online-retail/kroger-plans-three-more-ocado-automated-warehouses
Willig, C.: The next evolution of our seamless grocery experience has arrived (2020). https://www.krogerstories.com/nuro/
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Abbu, H.R., Fleischmann, D., Gopalakrishna, P. (2021). The Digital Transformation of the Grocery Business - Driven by Consumers, Powered by Technology, and Accelerated by the COVID-19 Pandemic. In: Rocha, Á., Adeli, H., Dzemyda, G., Moreira, F., Ramalho Correia, A.M. (eds) Trends and Applications in Information Systems and Technologies . WorldCIST 2021. Advances in Intelligent Systems and Computing, vol 1367. Springer, Cham. https://doi.org/10.1007/978-3-030-72660-7_32
Download citation
DOI: https://doi.org/10.1007/978-3-030-72660-7_32
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-72659-1
Online ISBN: 978-3-030-72660-7
eBook Packages: Intelligent Technologies and RoboticsIntelligent Technologies and Robotics (R0)