The Time Is Now for Retailers to Modernize Tech to Achieve AI-Fueled, Data-Driven Retail Success

SPOTLIGHT | Sponsored by: Toshiba

July 2025

Written by: Margot Juros, Research Director, Retail Platforms and Technologies; Ornella Urso, Research Director, Retail CX and Loyalty Strategies; and Filippo Battaini, Research Manager, Retail Experiential Operations

Introduction

This Spotlight explores the importance of leveraging data, AI, and advanced analytics to meet the new demands of retail and the strategic benefits of unified omni-channel commerce platforms to enable data-driven retailing to compete successfully in today's environment.

Retailers can no longer afford to delay digital modernization. The pace of change in customer behavior, operational demands, and competitive pressure has accelerated to a point where legacy systems are actively limiting growth - and in many cases, risking competitiveness.

Today's Retailers Face Complex Challenges

Shoppers now expect real-time inventory, personalized engagements, and frictionless transactions across all channels, and they are willing to walk away from retailers that don't meet their expectations. Retailers unable to deliver these experiences are falling behind those that can. According to IDC's June 2024 Consumer Sentiment Survey:

At the same time, internal and external pressures are intensifying. Labor shortages, rising shrink, and compressed margins are making manual, disconnected, and reactive operations unsustainable.

Yet many retailers are hampered in addressing the industry's new needs due to legacy IT challenges including siloed systems, monolithic/inflexible platforms, and the lack of data visibility and real-time data access (see Figure 1). These factors make it nearly impossible to fully leverage real-time, data-driven AI.

Retailers that delay modernization risk falling further behind as competitors turn to composable, AI-enabled platforms to adapt faster, serve better, and operate smarter. The urgency is accelerating as the gap between those organizations acting now and those holding back widens.

Figure 1: Top Internal Challenges to Staying Competitive

Figure 1: Top Internal Challenges to Staying Competitive. This bar chart illustrates the top internal challenges retailers face in staying competitive, based on a survey of 980 respondents. The challenges, listed with approximate percentages of respondents, are: Lack of operational and customer data visibility (approx. 32%), Poor data synchronization and integration across the technology portfolio (approx. 30%), Lack of companywide culture for innovation (approx. 28%), and Lack of data analytics or accessibility to data insights (approx. 27%).

Source: IDC's Global Retail Survey, June 2024

Why the "Super Platform" Framework Is Critical for Success in Retail

To stay competitive, retailers with legacy platforms and technologies must move up to a whole new mindset for success in today's retail environment.

A new foundation is needed to overcome hurdles and execute the seamless, AI-fueled, and data-driven retailing that is essential now and in the future. IDC calls this the super platform concept, a fully integrated, composable, and unified commerce platform built on essential layers of functionality, including cloud and edge, data integration, and AI/analytics capabilities (see Figure 2). This modern framework enables retailers to address pressing challenges and compete successfully by integrating various aspects of omni-channel retail operations, enabling the real-time data insights, automation, and supporting functions needed to seamlessly execute this approach. Retailers that leverage technology advancements and AI-fueled data insights gain the advantage of innovating and iterating quickly to gain a competitive edge.

The key components of the super platform framework include:

Retailers need this modern foundation to become agile, AI-fueled, and data-driven organizations; meet the new demands of today's shopping environment; and compete effectively. The super platform is essentially a model to get to the ideal state of executing seamless, intelligent, and unified omni-channel commerce. Retailers do not need to make this transition all at once, but those that begin to adopt the principles of the super platform concept are better positioned to adapt to change, improve performance, and support ongoing innovation. The shift to a cloud-based, composable, and omni-channel commerce platform is not just a technology upgrade, but it is also a strategic enabler for meeting the new demands of modern retail.

Figure 2: The Super Platform Framework

Figure 2: The Super Platform Framework. This diagram depicts the Super Platform Framework, illustrating its layered architecture. The top layer shows customer-facing touchpoints across physical stores and e-commerce, including Payments, Carts and orders, Inventory visibility, Picking, fulfillment, and returns, Customer 360/CX/engagement, Workforce empowerment, Loss prevention/cybersecurity, and Digital shelf. Below this is the Unified Commerce layer, described as composable, headless, API/microservices, and IoT enabled. Further down are AI Services and Analytics (hybrid cloud and edge enabled), Data Management and Integration, Enterprise Applications (listing examples like product, supply chain, order management, marketing, CRM, etc.), Control Plane (for device/application management, security, orchestration), and finally, Hybrid Infrastructure (cloud, edge, networks).

Source: IDC, 2025

Retailers that continue to rely on fragmented or legacy systems may face increasing challenges when integrating AI and automation into their store operations. Without unified architecture, it becomes difficult to convert insights into coordinated action -- resulting in delayed responses, limited scalability, and inconsistent execution. Over time, these constraints can drive up operational costs, inhibit innovation, and hinder the delivery of timely, context-aware customer experiences.

Benefits: Unlocking Retail Success

The adoption of an AI-powered, cloud- and edge-enabled unified platform that is composable and leverages operational and customer data offers numerous benefits for retailers seeking to thrive in a dynamic and competitive market landscape. These benefits include:

By integrating data, AI, and both cloud and edge computing in the super platform model, retailers can unlock a comprehensive range of benefits that drive success and growth. Improved data visibility and synchronization, enhanced customer experience and loyalty, increased operational efficiency, exploration of new revenue streams, and competitive advantage are all achievable through the adoption of a unified platform. What truly sets the super platform apart is its capacity to enable real-time contextual intelligence. This means processing massive volumes of unstructured, real-time data to make immediate decisions, such as recognizing a 4:00 p.m. rush of dinner shoppers, understanding who they are and their loyalty status, what they're buying, and then responding accordingly. This might mean adjusting staff and inventory on the fly or personalizing the shopping experience in real time. Such real-time contextual responsiveness is essential for retailers to remain competitive in today's dynamic marketplace.

Trends

The retail industry is experiencing significant transformations driven by technological advancements and changing consumer behaviors. Key trends occurring in retail underscore the need for a modernized, composable, and unified platform such as the super platform concept to enable success. In detail:

Considering Toshiba Global Commerce Solutions

A unified commerce platform that reflects the core principles of the super platform -- composability, cloud and edge enablement, centralized data, and AI integration -- can enable retailers to manage operations with greater agility and precision. The platform allows retailers to compose and orchestrate diverse functions across the store, improving consistency, responsiveness, and long-term scalability.

Toshiba provides hardware, software, and services designed to support retailers worldwide that are operating in complex, omni-channel environments. Central to its software and solutions portfolio is the ELERA Commerce Platform, a unified platform designed to modernize retail operations and support the development and deployment of intelligent, data-driven solutions across store formats and geographies. The ELERA platform offers a tangible example of how super platform concepts can be embedded into retail operations.

Toshiba's ELERA platform demonstrates how these super platform concepts can be applied in practice. Designed to support modular deployment, interoperability with existing systems, and edge-based execution, the platform provides a flexible framework for unifying operations, automating decision-making, and acting on real-time signals at scale across the store and omni-channel environment. By leveraging a modern, unified commerce platform that embodies the core principles of the super platform, retailers can seamlessly compose various aspects of their operations for a cohesive, efficient, and flexible approach to managing their business.

The ELERA Commerce Platform

ELERA is a platform built on a modular, composable, and API-first architecture. It is designed to support real-time processing at the edge, seamless integration with in-store devices, and localized real-time intelligence. The platform's foundational intelligence layers include dedicated IoT and edge device enablement and management, as well as centralized data and AI capabilities, enabling functions such as computer vision, machine learning, and support for emerging technologies including generative AI and agentic AI. ELERA enables retailers to digitize processes, modernize commerce operations, and coordinate customer engagement, store operations, and fulfillment workflows. It allows for configuration and management of core retail functions, such as loss prevention, loyalty, point of sale, and returns without requiring full system replacement.

Key capabilities include:

Toshiba offers a portfolio of solutions built on ELERA, including its:

The platform's direction aligns with the broader market shift toward adaptive, AI-native retail infrastructure. ELERA aims to help retailers continuously innovate without disruptions by supporting them with:

Through its composable design and embedded AI capabilities, ELERA can support a more flexible and responsive approach to retail modernization, helping retailers develop, deploy, and refine use cases in alignment with evolving operational and strategic priorities.

Challenges

When adopting a platform like Toshiba's ELERA, retailers face a strategic decision about their transformation approach. The primary consideration is determining the scope, scale, and pace of transformation that aligns with their business objectives, organizational readiness, and competitive landscape.

Retailers must assess which deployment model (on premises, SaaS, or hybrid) best supports their transformation goals. While on-premises deployments may align with existing infrastructure investments or specific compliance requirements, they may limit access to some advanced AI capabilities that benefit from cloud-scale data processing. SaaS and hybrid models offer greater agility and access to real-time services but require retailers to consider how these environments will coexist with legacy systems.

The implementation challenge lies in determining the right starting point and expansion path. ELERA's composable architecture allows retailers to begin with specific priorities, such as modernizing core transaction systems, enhancing customer loyalty programs, or implementing AI-based advanced loss prevention. From there they can scale toward broader deployments to support unified operations across their infrastructure. This phased approach allows retailers to manage the scope of transformation based on their priorities and capacity for change.

For retailers with strong in-house technical resources, ELERA's self-enablement tools can facilitate faster implementation cycles, allowing them to configure, extend, and deploy components independently. For organizations with limited resources or those pursuing more comprehensive transformation, Toshiba offers implementation support ranging from technical guidance to full solution development. Ultimately, the core challenge of transformation for retailers is not about technical integration complexity. It is about making strategic decisions about how to plan and structure the journey and then developing a change management plan to support it. Success depends on aligning the platform implementation with well-defined business outcomes and ensuring the organization is prepared for the operational changes that follow. A strong starting point is identifying and implementing high-value use cases that deliver quick returns while building toward retailers' long-term vision for unified commerce.

Conclusion

The global retail environment is rapidly evolving, bringing a host of new demands and challenges. Retailers that have not modernized their technology foundations risk falling behind competitors. Data and AI are crucial in modern retail operations to drive agility, meet new and changing customer expectations, and boost operational efficiency. Adopting a super platform approach can help enable seamless omni-channel retailing and real-time, data-driven insights that can drive competitive success in today's environment.

Retailers that have not modernized their technology foundations risk falling behind competitors.

About the Analysts

Margot Juros, Research Director, Retail Platforms and Technologies

Margot Juros is a research director for IDC Retail Insights responsible for the Retail Technology Strategies research program. Ms. Juros' core research focuses on best practices, trends, market conditions, business concerns, and vendor offerings to provide authoritative advice on investment, life-cycle management, and the use of technologies for modern IT infrastructure.

Ornella Urso, Research Director, Retail CX and Loyalty Strategies

Ornella Urso is head of IDC's Retail Insights Europe and leads the Worldwide Retail Customer Experience research group. Urso conducts market research, industry analysis, and proactively contributes to the definition of thought leadership at the intersection of businesses priorities and technology innovation in B2C and D2C strategy companies.

Filippo Battaini, Research Manager, Retail Experiential Operations

Filippo Battaini is a research manager at IDC Retail Insights, responsible for the IDC Retail Insights: Worldwide Retail Experiential Operations Strategies program. Filippo's research centers on the impact of technology as an enabler of omni-channel retail, including the digitalization of physical stores, online-offline integration, and omni-channel commerce architectures.

MESSAGE FROM THE SPONSOR

Toshiba Global Commerce Solutions empowers retail to thrive and prosper through a dynamic ecosystem of smarter, more agile solutions and services that enable retailers to resiliently evolve with generations of consumers and adapt to market conditions. As an early innovator and leader, Toshiba continues to deliver on the promise of the super platform framework through integrated, data-driven solutions that unify applications, data, and edge intelligence across the store. Supported by a global organization of devoted employees and partners, retailers gain more visibility and control over operations while enjoying the flexibility to build, scale, and transform retail experiences that anticipate and fulfill consumers' ever-changing needs.

Visit commerce.toshiba.com.

Publication Information

The content in this paper was adapted from existing IDC research published on www.idc.com.

IDC Custom Solutions produced this publication. The opinion, analysis, and research results presented herein are drawn from more detailed research and analysis that IDC independently conducted and published, unless specific vendor sponsorship is noted. IDC Custom Solutions makes IDC content available in a wide range of formats for distribution by various companies. This IDC material is licensed for external use, and in no way does the use or publication of IDC research indicate IDC's endorsement of the sponsor's or licensee's products or strategies.

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives.

©2025 IDC. Reproduction is forbidden unless authorized. All rights reserved. CCPA

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