IBM Mobile Blueprint

“Mobile Retailing Blueprint”g pComprehensive Guide for Mobile in Retail

IBM Retail Users Group

May 17, 2011

Complexity made Simple - ARTS

NRFThe world’s largest retail trade association


• Association for Retail Technology Standards (ARTS), founded in 1993– The Standards Division of NRF– Members (205) are Retailers and Vendors– International, 38% of members

• The mission of the Association for Retail Technology Standards• The mission of the Association for Retail Technology Standards (ARTS) is to develop best practices, technology standards and educational programs through collaboration and partnerships that will enable retailers, their vendors and suppliers to conductwill enable retailers, their vendors and suppliers to conduct business globally. ARTS standards, products and programs are dedicated to fostering innovation, improving shopper experience, and increasing retailer efficiency.


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WHY ARTS ?WHY ARTS ?•Competitive retail excellences demands:p

•IT excellence.

•Never ending business process innovation,

•Rapid adoption of new technologies which constantly change.

•International reach.International reach.

•ARTS provides:

A full range of business support from process analysis through application integration.


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ARTS - Enables IT Performance• Through:

– Standard/baseline ITT’s/RFP’s (7 released to date)– UnifiedPOS Standard for connecting 36 peripherals devices from

multiple manufactures to POS terminals, providing freedom of choice.

– Two Data Models – Operational and Warehouse– ARTS-XML integration schemas (18 released to date)– Innovation and Technology White Papers - SOA, Cloud gy p

Computing, XML, Mobile and coming soon - International POS requirements.

– Business Process Maps


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ARTS XML

Mobile Integration KitFuture

SOA Enabled BusinessProcessModel

Unified POS

OPOS /POS for Unified

SOA Blueprint for Retail

Mobile Retailing

Cloud Computing in RetailWIP

ItemMaintenance

POSlogComparison

ShoppingEngine

StoredValue

DigitalReceipt

Productectu

re

Integration Kit.Net/

JavaPOSPOS V1

WS-POSXMLPOS

RemoteUnifiedPOS V2

Models

Plan

Buy

Why Business Process Modeling

CustomerInventory

ManagementWorker

ManagementTime

Punches

ProductContent

Management

VideoAnalytics

Tax

ficat

ion

Even

t Arc

hite

ProCon(kitchen)

RetailTransaction

Interface

FIM(Traceability)

XML

Bes

t Pra

ctic

es

SOA

Bes

t Pra

ctic

es

RFPs/ITTs

Exception Reporting

Master Data Mgmt

Move

Sell

C C l

Not

if

PaymentPriceRemote

EquipmentMonitoring

POSlogFor

Food Service

Product Lifecycle

Management

EducationData Models

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POSSoftware

PriceOptimize

SigCap& Debit

WarehouseMgmt

Corp Control

HR

CRM

EducationData Models

OperationalData Model

WarehouseData Model Data Model

ARTS XML Standards

SOA &Cloud

PCIKnowledge

UserConference

WorkforceMgmt

BusinessIntelligence

Cloud Computing

Future

BPM Best Practices

ProcessEducation


The Mobile Revolution


Mobile will dramatically Change Retail

• Find a store or product• In store targeted discounts and couponsIn store targeted discounts and coupons• Product information• Negotiate priceNegotiate price• Self Checkout• Payment• Payment


M bil i C i Q i klMobile is Coming, QuicklyL t ' bil d t t ffi th ti th i f th• Last year's mobile data traffic was three times the size of the entire global Internet in 2000.

• The top 1 percent of mobile data subscribers generate over 20 percent of mobile data traffic, down from 30 percent 1 year ago.

• In 2010, 3 million tablets were connected to the mobile network, and each tablet generated 5 times more traffic than the average Smartphone.

• There will be 788 million mobile-only Internet users by 2015, growing from 14 million in 2010.


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Mobile Sales are GrowingThe number of online shoppers making a purchase from their phones increased more than five-fold this season (2010) to 11% according to ForeSee Results But significantly more11%, according to ForeSee Results. But significantly more than that, 33% of respondents said they had used their phone to access a retailer's site, many for the purpose of comparing prices or products.


NRF and ARTS Mobile Background

• May 2007 - Began researching possible standards• Sept. 2008 – First mobile presentationp p• August 2009 - Launched Mobile Blueprint

Recognized the Revolution

April 2010 - Organized the MRIComplexity made Simple - ARTS

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Initiative Goals• Serve as a resource of key trends

and research• Identify processes that can be

enhanced via mobile technology• Organize meetings and events for

all constituents in the Mobile eco-system Mobilesystem

• Develop working relationships with existing mobile associations

• Encourage adoption of global

Mobile

Marketing

MobileMobileEncourage adoption of global standards surrounding mobile

• Publish educational white papers

Mobile

Operations

Mobile

Commerce


Mobile Retailing BlueprintTABLE OF CONTENTS • 175 pages

Covers all mobile devices with

1. Executive Summary2. Introduction

• Covers all mobile devices with focus on mobile phones

• Includes consumer applications as well as employee applications2. Introduction

3. Mobile Marketing4. Mobile Commerce &

Payments

y• Discusses technologies like NFC, smartcards, augmented reality, geo-fencing, location-based servicesPayments

5. Mobile Operations6. Implementation

services• Highlights many applications• Defines processes and terms• Addresses remote and contactless

Strategies7. Terms & Acronyms

payments/tenders• Highlights where ARTS standards apply


Free on: www.NRF-ARTS.ORG

30+ Mobile Application Examples


HOT Applications• http://www.nearbuysystems.com/

– In store promotions• http://www.groupon.com/

– Regional offers• http://shopkick.com/

– Register for specials

Special In store Networkwww.retailigent.eu

• http://aislebuyer.com/– Mobile POS


Success StoriesHow Facebook boosted Macy's online salesHow Facebook boosted Macy s online salesOnline sales at macys.com and bloomingdales.com rose more than 50% in April and 38.3% in the first quarter of 2011, compared to the same periods last year.

Bar codes are helping home gardens growHome Depot and Lowe's have taken bar codes to the garden department, giving smartphone using gardeners the ability to scan tags for detailedgiving smartphone-using gardeners the ability to scan tags for detailed information on the items

Crate and Barrel taps surging Shopkick location appCrate and Barrel has joined Shopkick for a program that rewards users who check in at the housewares and furniture retailer's stores. Shopkick

t it b h l d bl d tl t 1 4 illi


reports its user base has nearly doubled recently to 1.4 million

Key tips in the Blueprint

• Create a total enterprise mobile plan.• Understand what your customers want. Needs of y

teenagers are different than seniors.• Start small and grow with success. .• Create a policy for privacy and security.• M-commerce is different than E-commerce,

understanding the differencesunderstanding the differences.• Integrations of mobile applications to existing data is

critical success factor• Mobile must be global, built on standards


Key Inhibitors of the Revolution

• NFC chips in phones or alternative• Secure chips in phones or the cloudSecure chips in phones or the cloud• Proven reliability and security• One application works on all platforms (HTML5)One application works on all platforms (HTML5)• Opening networks to customer devices.• Standards to secure customer access to retailer• Standards to secure customer access to retailer

back office data


ARTS and Mobile

Mobile IntegrationMobile IntegrationDigital Receipt

Social CommerceSocial CommercePayment and security update


MobileMobile

The Transformation of Payment Ecosystemy


L k t Alt ti P t S l tiLook at Alternative Payments Solutions• Mobile Proximity Payments (NFC) – providers of software and hardware to

facilitate mobile proximity payments which utilize Near Field Communicationsfacilitate mobile proximity payments which utilize Near-Field Communications technology, including wallet applications, approaches for NFC-enabling the mobile phone, and reader technology.– Examples: ViVOtech, Firethorn Holdings, Blaze Mobile, Bling Nation,

• Online Alternative Payments – alternatives to credit and debit cards for making remote payments for electronic commerce, mobile commerce, or electronic bill payment. E-commerce now moving to stores.

E l P P l BillM L t A P t S V lt– Examples: PayPal, BillMeLater, Amazon Payments, Secure Vault Payments, Google Checkout

• Carrier Billing – remote mobile payments approaches that leverage the wireless carrier’s billing infrastructure Carrier billing has traditionally be used as a paymentcarrier s billing infrastructure. Carrier billing has traditionally be used as a payment method for purchase of digital goods in mobile commerce but is also being adapted for purchase of physical goods via mobile commerce.– Examples: Boku, Danal BilltoMobile, Mobillians, Zong


If you do not know where you are going… It does not matter what road you take.

• Merchants want 3 things to occur…

1. Fix the payment ecosystem.2. Roadmap for EMV Chip + PIN w/ mobile.2. Roadmap for EMV Chip PIN w/ mobile.3. Elimination of PCI DSS. We continue to throw

money down a PCI drain that is not designed to solve the problem of fraud in the system


PCI Executive Council agreed that “…they are not interested in solving the fraudare not interested in solving the fraud

problem, they exist to maintain and promote the PCI standard ”the PCI standard.


Stop Thinking ”small”

• Retailers, Banks, Cell Phone Carriers, Handset mfgs., Card Brands, & Technology Providers need g gyto work together.

• Stop taking incremental steps and push for an “open & global” EMV standard.

• 7 year plan to move decisively Mobile NFC under EMV.

• If we don’t…beware of governmental intervention.


The Mobile Wallet

• NFC/EMV Mobile wallet is the end game.C ill d d it• Consumers will demand it.

• It offers convenience:– Debit, Credit, and other alternative payments.


Winning with Mobile• Read the Blueprint www.nrf-arts.org.• Mobile must be global, built on standards.Mobile must be global, built on standards.• Adopt ARTS data standards


Thank You for Listening

Q & A

www nrf-arts orgwww.nrf arts.org


IBM Mobile Blueprint

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