Omni-channel: Towards a Seamless

Customer Experience Across Physical & Digital Channels

Steve Bratt

CTO and President Standards Development and EPCglobal

GS1

Outline

• GS1: The Global Language of Business

• The business world is changing

• Growth of Web commerce

• What is Omni-channel?

• Extending the “Global Language of

Business” to enable omni-channel

• What’s next?

2

Outline

• GS1: The Global Language of Business

• The business world is changing

• Growth of Web commerce

• What is Omni-channel?

• Extending the “Global Language of

Business” to enable omni-channel

• What’s next?

3

Our Purpose & Beliefs

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• Our vision is a world where things and related

information move efficiently and securely for the

benefit of businesses and improvement of people's

lives, everyday, everywhere.

• Our mission is to be the neutral leader enabling

communities to develop and implement global

standards providing the tools, trust and confidence

needed to achieve our vision.

• Sectors: retail, healthcare, transportation & logistics …

GS1 standards: Used every day, everywhere

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by big multi-

national chains

by small corner

shops

by world-famous

brands

by doctors

by individual

craftsmen

in over 1 million

organisations

in multiple

sectors

in close to 150

countries

~ 5 billion

barcode scans / day

GS1 standards drive supply chain efficiency

6 Source: IBM/Consumer Goods Forum Global Scorecard

Some of the world’s best-known

companies sit on our Board

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... and

more

Outline

• GS1: The Global Language of Business

• The business world is changing

• Growth of Web commerce

• What is Omni-channel?

• Extending the “Global Language of

Business” to enable omni-channel

• What’s next?

8

Outline

• GS1: The Global Language of Business

• The business world is changing

• Growth of Web commerce

• What is Omni-channel?

• Extending the “Global Language of

Business” to enable omni-channel

• What’s next?

10

Diverse patterns of growth

in Web sales around the world

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Consumer-to-consumer

sales = 70% of total in China

12

Online commerce only

represents 10% of all

commerce…

Outline

• GS1: The Global Language of Business

• The business world is changing

• Growth of Web commerce

• What is Omni-channel?

• Extending the “Global Language of

Business” to enable omni-channel

• What’s next?

13

A “Demand-Chain Story” …

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UPC: 052000241204

Etsy

Custom Barcode tshirt

$18.00

USD billions

Global retail sales – online vs. offline

SOURCE: Forrester Research (2011)

CAGR Percent

17.1

3.7

16.2

6.0

Globally, online will outpace offline sales growth by 3-5 X Much of offline sales will be influenced by online research

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2017

18,001

16,897

1,104

2012

13,161

12,640

521

2007

10,777

10,541

236

2007-12 2012-17

Online sales

In-store sales In US, nearly 50% of in-store sales will be influenced by online research

Google Retail Advertising Blog: October 2012

Shopping more intelligently and across channels

Om●ni – chan●nel

…is rethinking all aspects of a

company’s business processes with

a constant focus on providing a

seamless consumer experience

across physical and digital channels

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18 Digital’s Disruption Consumer Goods and Retail, Nov 2012, Boston Consulting Group

What do analysts think? Example: Buying a dress in the omni-channel world

What do business leaders think?

“The world’s largest store in

every pocket” - McKinsey

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“I can’t overstate how mobile is changing

how we interact with our consumers, we

have to embrace these changes” – Joel Anderson, CEO of Walmart

“We will continue to see a convergence of the

digital and physical world. Those who conquer

that trend will be market leaders.” - John Phillips, SVP Customer Supply Chain and Logistics, Pepsico, Inc.

“Starting with the Internet and moving into today’s connected mobile devices, people have more information and purchasing choices than ever

before. Customers use technology in every facet of their lives, including in how they shop. This is

increasingly disruptive to retailers.” - Mike McNamara, CIO, Tesco

“Omni-channel presence is delivering a much more seamless experience all

across the board in one clear message”

- Karen Katz, CEO of Neiman Marcus Group, 2011

“Digital has been a catalyst

for everything in the

company” - Angela Ahrendts, CEO of Burberry, now

with Apple

20 RSR Research: June 2013

Primary role of digital selling channels (e-commerce, mobile, social)

Survey of major companies

Outline

• GS1: The Global Language of Business

• The business world is changing

• Growth of Web commerce

• What is Omni-channel?

• Extending the “Global Language of

Business” to enable omni-channel

• What’s next?

21

New: GS1 Digital Initiative Omni-channel is our initial focus… Why?

• Disruptive evolution in GS1’s core sector of retail

• Business needs are being identified by industry

• A natural extension of GS1 standards will empower

supply-side and demand-side business processes

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GS1’s traditional focus

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Physical world

Linking the supply-chain

Stops at the “beep”

Supply Chain Ecosystem

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“We should engage the customer in however he or she chooses to shop with us. I want to break those silos down internally in my

own organization and make sure that we are doing one thing and that is putting the customer at the center of all of our decisions.” - Terry Lundgren, Chairman, President, and CEO of Macy’s, December, 2013

3PL’s

The omni-channel ecosystem

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Brick/Mortar

Webpages

Online

Pureplays

Non-linear

Linking physical & digital worlds, inside & outside of business

Consumer-centric

Market

places

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GS1 System - Extended to Digital

R E T U R N S

U S E

Extending GS1

identification &

description

standards to

reduce friction in

information flow

between…

• physical & digital

• business &

consumers

• former silos

This will empower

omni-channel

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GS1 Identification and Data for the Web Embedding the GS1 standards into web pages

Benefits for business • Increase search visibility

• Connect data across silos, connect to consumers

• Sell more stuff

Benefits for consumers • More efficiently search for, compare and share

information about products

• Buy more stuff; share experiences

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EPC/RFID – electronic tagging Omni-channel requires accurate inventory

Benefits for business and consumer

• Use of EPC-RFID at item-level boosts inventory accuracy up to over 98%

• Right product - right place - right time

• Less out-of-stock more product availability more sales

• Adoption is growing rapidly, especially in apparel

• Huge potential for other high-value items (jewellery, electronics, defence…)

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GS1 Source Mobile scanning to get

accurate, trusted

product data

Benefits for business • Brand-verified data in a secure environment

• Meet needs of retailers, regulations, consumers

Benefits for consumers • Find product data that can be trusted

• Match against preferences, diet, etc.

Selected other, potential projects* being

considered for the GS1 Digital Initiative

• Web Data Authentication

• Category Hierarchy

• Linking Products across

Social Media

• Digital Products (music,

games, etc)

• Consumer Privacy

• Guidelines for on-line

retailers 30

• ePayments

• eCoupons

• eReceipt

• Store-based e-Fulfillment

• Returns/Reverse Logistics

• Integration across Supply Chain

• 3D Printing

* Compiled from McKinsey and GS1 Community

Outline

• GS1: The Global Language of Business

• The business world is changing

• Growth of Web commerce

• What is Omni-channel?

• Extending the “Global Language of

Business” to enable omni-channel

• What’s next?

31

Everything on the Internet not necessarily a separate Internet of Things

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Cisco

• People

• Products

• Sensors

• Actuators

• Services

• Knowledge

• Privacy/Security

• ….

Resources on omni-channel retail • Tough Choices for Consumer Goods Companies

• McKinsey, December 2013 • http://www.mckinsey.com/insights/consumer_and_retail/tough_choices_for_consumer_goods_companies

• Omnichannel Alchemy • Boston Consulting Group, October 2013 • https://www.bcgperspectives.com/content/articles/retail_digital_economy_omnichannel_alchemy_turning_online_grocery_sales_gold/

• Integrated MultiChannel Retail • CapGemini, 2008 • http://www.capgemini-consulting.com/resource-file-access/resource/pdf/Integrated_Multi-Channel_Retailing.pdf

• Digital Disruption and retailer opportunities • Bain and Company, Nov 2012 • http://www.bain.com/Images/BAIN_BRIEF_Retail_holiday_newsletter_%232_2012-2013NEW.pdf

• Digital Shopper Relevancy Report • CapGemini, July 2012 • http://www.capgemini.com/thought-leadership/digital-shopper-relevancy

• E-Commerce nad Consumer Goods • Booz and Company, November 2012 • http://www.booz.com/media/file/BoozCo_E-Commerce-and-Consumer-Goods.pdf

• The Reciprocity Principle • Boston Consulting Group, 2014 • https://www.bcgperspectives.com/content/articles/marketing_center_consumer_customer_insight_how_millennials_changing_marketing_forever/

• The New Omni-Channel Approach to Serving Customers • Accenture, 2013 • http://www.accenture.com/SiteCollectionDocuments/communications/accenture-new-omni-channel-approach-serving-customers.pdf

• Digital’s Disruption of Consumer Goods and Retail • Boston Consulting Group, November 2012 • http://www.bcg.com/expertise_impact/industries/retail/publicationdetails.aspx?id=tcm:12-121740&mid=tcm:12-121734

• Omni-channel Customer Experience • Webcredible, Nov 2012 • http://www.webcredible.co.uk/user-friendly-resources/white-papers/omni-channel-report-2012.pdf

• Your Customer’s All-channel Experience • CapGemini, May 2013 • http://www.capgemini.com/resources/its-all-about-them-your-customers-all-channel-experience

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