RIS News 2014 Retail Technology Conference Workshop Presentation: Adapting the Enterprise to the...

Adapting the Enterprise to the Speed of Change

RIS News Retail Technology Conference Workshop

Presenters Naveen Sharma, Chief Innovation Officer, Retail & Consumer Products [email protected] Ph: 585.233.3237

Paul Wolf, Vice President, Retail & Consumer Products

[email protected] Ph: 972.679.7306

Dave Weinand, SVP & Group Publisher

Edgell Communications [email protected] Ph: 904.374.8590

Retailers are Creating a Consistent Customer Experience Across Multiple Channels

Store

Catalog

Mobility

Social

Supply Chain / Order Management

eCommerce

Seamless Channel Integration

Today a Customer Expects a Seamless Experience

Shopping experience can start at any channel and finish at another Harmonization of the digital and physical worlds

September 3, 2014 Xerox Confidential and Proprietary 4

Agenda / Approach to Today’s Workshop


Omni Channel

Execution Challenges

Omni Channel

Execution Issues

Value of Big Data &

Analytics

Team Discussion & Reporting on Related

Topics


Omnichannel Execution Challenges

Omni-channel Execution Challenges Seamless cross-channel commerce


Vendors Consumers

Complex channel orchestration of transactions by retailers and vendors. Yet flexible alignment between supply and demand.

Omni-channel challenges: Future Proofing


Enable agility, flexibility, and scalability for continuous evolution of technology and consumer experience.

2010-13 2013 2014 2015-16

Adapt for continuously changing consumer expectations


Omnichannel Execution Issues

Key Omnichannel Execution Issues


Omnichannel Readiness

Infrastructure Management


Channel Synchronization

Continuous Innovation

Infrastructure Management


Each plays a role in a retailer’s store level technological health

Comprised of at least …:

Global Support Center

End to End Vendor Management

IT Service Management

Data



Typical Cross Channel Activities (Use Cases) • Buy Online / Return in-store • Buy in-store / fulfill through online / direct • Buy online-direct, pickup in store • Buy via mobile device • Buy online/direct / fulfill through any store • Buy via social commerce site • Buy via TV

Channel Synchronization


Synchronize all paths of purchase for retail consumer • Learn their likes and shopping habits • Predict shopping behavior • Act with special offers to entice them

Retail Continuous Innovation


• Clusters of ideas converging together that represent opportunities

• Under utilized assets

• Assets available in industry

• New Ideas & capabilities from other industries

• Innovation Opportunities that will bring unique value

Ideas that fail are celebrated. Learning applied to other ideas that feedback into the overall process

Consumer Experience & Merchandise Strategy

Continuous Innovation Ideas

Retail Video Analytics Platform and Services Retail store video analytics platform for tracking customers, processes and vehicles throughout a retail store environment to optimize operations

Predictive Customer Model for Personalized Communications in Retail Help a retailer better understand their consumers, by developing predictive methods through analytics to enhance the customer purchase decision journey, increase retailers marketing efficiency, and convert higher sales.

Asset Health Management for Retail Develop analytical tools and processes for assessing, managing and predicting asset performance in retail; IT assets and their health as well as all facility equipment in a retail store.

NearMe: Contextual loyalty-enhancing engagement platform Mobile, geo-location-based solution for targeting offers to customers through loyalty platforms.

Customer experience integration with ongoing improvement utilizing innovation

Predictive Analytics


Define Sense Predict Act

Actionable Outcomes Predictive Analytics

• Predictive infrastructure management (act before it happens) • Enabling discovery of customer needs, exposing variability, and targeting • Segmenting populations to customize actions • Replacing or supporting human decision-making with automated algorithms

Source: www.datasciencecentral.com

Big Data Challenges

Data Transformation

Reporting, Dashboarding Schema Design:

-Relational

Traditional Data Analysis

Unstructured, multi-modal data with diverse schema

Data in Retail

The “New” in Analytics


Full Spectrum Approach


Calls

IVR

Social Media Customer Feedback

Email

Chat

Voice of the Customer

Marketing

Sales

Finance

Project Mgt. Executive

Legal

Suppliers

Operations Units

Actionable Intelligence

Rep Notes

Web

• Increased customer touch points • Make sense of voluminous data.

Better understanding of customer needs and behaviors drive;

• Focus on customer feedback • Targeted cross-selling • Tailored customer-based service

September 3, 2014 Xerox Internal Use Only 21

Summary

Omni Channel

Execution Challenges

Omni Channel

Execution Issues

Value of Big Data &

Analytics

Team Discussion & Reporting on Related

Topics

Discussion Topic #1:

How would you prioritize these technology trends in terms of enabling the omnichannel vision:

• Centralized order management platform

• Mobile POS

• Web-Based POS

• Data Analytics/BI

• Omnichannel Merchandising Platform

• Cross channel pricing intelligence

• Personalization and Cross Channel Loyalty System

• Flexible Fulfillment Platform

• Unified Transaction/Payment Platform

Group Findings: Topic #1

Question: How would you prioritize these technology trends in terms of enabling the omnichannel vision:

Retailers answered…. 1. Core infrastructure / platforms topped the list as #1 priority for

retailers

2. Flexible fulfillment, centralized order management

3. Mobile and web based POS – near the top of the list

4. Cross channel pricing, merchandising platforms

5. Analytics – middle priority

6. Loyalty, personalization, and other options were at the bottom of retailer priorities


What are the 2-3 most pronounced changes you’ve seen in your customer’s shopping expectations? What steps have you taken to address these changes?


Question: What are the 2-3 most pronounced changes you’ve seen in your customer’s shopping expectations? What steps have you taken to address these changes?

Answers included…. – Most pronounced changes in customer’s shopping

expectations:

• Smartphones, social media, associated tools and platforms

– Comments from retailers regarding how to address these changes:

• Training: (product, service, tech skills) – it’s a paradigm shift, requiring us to take ownership in these areas and have transparency across all parties (consumers and employees)

• Utilize digital media as a central thread


In an effort to provide the customer with a consistent experience across channels, what are the biggest challenges you are facing in integrating legacy and next generation systems?


Question: In an effort to provide the customer with a consistent experience across channels, what are the biggest challenges you are facing in integrating legacy and next generation systems?

Retailer answers included…

• Begin with the end in mind - a consistent customer experience. Define the path to get there based on where you want to go

• Workforce/corporate culture and knowledge

• Replacing legacy systems to better facilitate omnichannel execution

• Leveraging data from many sources to glean actionable insights

• Allowing systems to be seamless in eyes of shopper, such as pricing

• Budget concerns


What types of data are you collecting and aggregating? What 3-5 ways are you using this data in your organizations to meet customer expectations?

Group Findings: Topic #4 Question: What types of data are you collecting and aggregating? What ways are you using this data in your organizations to meet customer expectations?

Answers included… – Types of data being collected

• Email

• Basket analysis for promotions and targeted marketing, bill payment history

• Unstructured data

– Comments/concerns on data is being used/should be to meet customer expectations

• If you get ahead of the change, you can define innovation. Have the pulse to see ahead and plug in at the right time.

• Tech companies with no legacy experience are disrupting the industry, and lack insights into traditional retail point of view

• Lack of relevant KPIs makes things difficult

• Change is a constant positive – innovation lowers operational costs


How is innovation being fostered in your organization? What are the top 3 areas you believe innovation is most critical?

Group Findings: Topic #5 Question: How is innovation being fostered in your organization? What are the top 3 areas you believe innovation is most critical?

Retailer comments / answers included… – How is innovation being fostered in your organization?

• “Innovation is being fostered similarly, but structured differently across different organizations. Some of us have teams, some have specific roles. The commonality is that success comes when there is buy-in at top levels of the organization. “

• “Regarding ecosystem – the areas that deserve the most innovative thought are platforms. However, POS, mobile, in-store or consumer devices aren’t far behind. Those are the things innovators are focusing time on to create a cohesive back end.”

– Top 3 areas innovation is most critical

• One company captures ideas and have technologists review

• Patent rewards – pay employees to develop patents

• VIP program where non-management runs and gets ideas across organization to submit up the chain of command. This drive the “speed of change” – getting new products to market quickly, improving infrastructure to increase communication at the front-line in-store employee level

RIS News 2014 Retail Technology Conference Workshop Presentation: Adapting the Enterprise to the...

Retail

Transcript of RIS News 2014 Retail Technology Conference Workshop Presentation: Adapting the Enterprise to the...