building omni-channel retail from the back-end up
DESCRIPTION
Retail TouchPoints & UXC Eclipse present: Building Omni-Channel Retail From The Back-End Up #OmniPromiseTRANSCRIPT
Building Omni-‐Channel Retail From The Back-‐End Up
#OmniPromise WEBINAR SPONSORED BY
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Welcome Webinar A:endees
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Follow This Webinar On Twi:er
#OmniPromise Retail TouchPoints: @RTouchPoints
UXC Eclipse: @UXCEclipse
Greg Buzek: @gregbuzek
Debbie Hauss: @DHauss
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About Retail TouchPoints
ü Launched in 2007
ü Over 28,000 subscribers
ü To provide executives with relevant,
insightful content across a variety of
digital medium
Free subscription to our weekly newsletter: WWW.RETAILTOUCHPOINTS.COM/SIGNUP
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Panelists
Greg Buzek President
IHL Services
Will Dunlavy Director Retail Solutions -
Dynamics AX UXC Eclipse
Debbie Hauss Editor-in-Chief Retail TouchPoints
MODERATOR
GREG BUZEK PRESIDENT
" Helping retailers/restaurants make better IT decisions • Better Informed • True Review of Vendors • Complete Reference List • Managed RFP Process
" Syndicated Research and Data Services • Retail Benchmarking • IT Spend / Retail Sizing • Retailer/Vendor Technology Profiles (300 technologies) • Top Things You Missed This Week in Retail
" Custom Research
www.ihlservices.com
www.ihlservices.com
Around the Globe
" Unrest prevalent • Israel, Ukraine, Libya, Pakistan, Nigeria, Iraq, Syria,
Venezuela, Argentina, Brazil etc. " Ebola epidemic " ISIS/ISIL whatever you want to call them. " Retail Sales worldwide have been struggling. " Emerging Markets Slowing Rapidly
" Exception is some parts of Africa " Impact of Ukraine conflict tremendously
effected Germany
www.ihlservices.com
A Quick Word on the US Economy
" Consumer and Economic Uncertainty " Great increase since early June
" The Stock Market “Matrix”… wild swings, up lately. " Mid-Term Elections/Mandate " Taking Advantage of Better Terms
" Higher interest rates in 2015 " Auto sales bubble?
" “Haves” vs “Have Nots” Continues " Gaps in Education / Income / Skills, little opportunity for change
www.ihlservices.com
Income Disparity
www.ihlservices.com
Middle Class Share of Income Gains
5 years post-recession income gains
www.ihlservices.com
Time Period/ Administration
Bottom 90% Top 10% share
Post WWII 68% 32%
Reagan-Bush 20% 80%
Clinton 32% 68%
George Bush 2% 98%
Obama - 14% 116%
WSJ Report 10/1/14, Bard College Research
Inflation in check, Really?
" CPI + 1.7% " Does not take into consideration
" Avg. Cell Phone Bill +75% since 2000 " Childcare + 37% " College tuition + 86% (public in-state) " Health Insurance + 76% " Cable or Satellite +300%
" CPI only measures retail consumer product inflation, not services " Inflation adjusted Median income -9% since Great Recession
ended. " Good News: Gas Prices dropping in time for holidays.
" Every 1c drop sustained for a year is $1.8Billion in economy. " $22.5 Billion more in consumers wallets for holidays
www.ihlservices.com
Retail Trends
" Retail Sales up 2.3% YoY " But slowing and cautious holidays " Big portion is auto sales
" Heavy discounting continues " Security heavy focus " Consolidation
" Retailers: Family Dollar/Dollar Tree/Dollar General HBC and Saks Burger King/Tim Horton’s
" Vendors: Oracle/MICROS,MANH/GlobalBay, Epicor/Quantisense
" Credit Worthiness: FICO Changes www.ihlservices.com
Omnichannel Overview
• Massive overhaul of systems. • Estimated ‘15 WW spend ~ $9.5 Billion • Order Management System becoming
core version of the truth
www.ihlservices.com
Increase > 10%
Increase < than 10%
Stay the same
Decrease < 10%
Decrease > 10%
27% 21% 48% 3% 1%
Sources: IHL WorldView IT Sizing, Custom Research
Key Challenges
• Key hindrances to Omnichannel Succes are in these areas. • Actionable analytics that measure • People Issues
• Training merchants to think Omnichannel • Accurate inventory for customers • Integrating systems • Motivation/Compensation for store employees • Who gets the credit?
www.ihlservices.com
Overview of the Budgets
• Some Key S/W Components (WW spend) • Merchandising Systems $3.9B • BI/Analytics $2.3B • Core POS $1.8B • Mobile POS $340M • eCommerce $900M
• New licenses and SaaS only. Does not not including maintenance, customization
www.ihlservices.com
Source: IHL WorldView IT Sizing
Not Just Order Management
www.ihlservices.com
Increase > 10%
Increase < than 10%
Stay the same
Decrease < 10%
Decrease > 10%
Core POS 29% 23% 41% 4% 3%
Mobile POS 26% 31% 40% 1% 2%
eCommerce/Mobile Commerce
43% 32% 25% 0% 1%
• Where the big growth is happening
Source: IHL Custom Research Survey 10/14
" BI remains huge investment area WW " Cloud the greatest area of growth " CMO driving considerable spend. " 3 hot areas
" Predictive Analytics " Data Visualization " Social Media/Big Data Analytics
www.ihlservices.com
" Two basic types " Finding a story " Telling a story
" Allows for custom queries but results beyond spreadsheets
" Turns data into insight " Combining results
www.ihlservices.com
" Customization/Maintenance " RFID " Beacons " Experience
www.ihlservices.com
www.ihlservices.com
Join us for SuperSaturday January 10, 2015
Greg Buzek IHL Group
[email protected] www.twitter.com/gregbuzek
+1 615-591-2955
www.ihlservices.com
#OmniPromise
UXC Eclipse
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Our retail customers include
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Consistency: What does it mean to retailers?
• Omni-‐channel success is all about delivering a single message consistently to your customer
• Retail systems and technology must be able to support: – A single plaPorm with a single source of truth – Integrated Retail Supply Chain – Business Intelligence and Analysis across all aspects of the Retail
Supply Chain
data + analyEcs = knowledge of the customer
#OmniPromise
Consistency: How is it done?
• CreaRng integrated experiences across all channels and consistency of informaRon delivery
• Let’s share some of our UXC Eclipse customer insights
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DAVIDs TEA
DAVIDsTEA is a North American omni-‐channel retailer focused on the sale of tea & tea related products in over 150 physical stores and online.
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Case Study
Customer Results/Benefits SoluEon
• Ability to rapidly expand into new markets
• Increase customer visibility
• Ability to forecast and budget enterprise needs
• Faster growth
• Microso] Dynamics AX for Retail
• Integrated Omni-‐Channel E-‐Commerce
• Advanced Demand and AllocaRon Planning
• Advanced Workforce Management
Business Challenge
• Rapid growth in mulRple countries
• No single source of the truth
• Inability to forecast demands, product and people
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Feedback
"We needed more flexibility at POS, since we have three types of sales categories: loose-‐leaf teas; accessories, such as cups; and beverages and foods, which are not in inventory. Our challenge was to find a tool that could handle all three, which tradiDonal POS systems could not. We have many followers on Facebook, TwiHer and through our newsleHer. We want to integrate all of this informaDon and really get to know our customers — whether they are buying online or in-‐store. A lot of our store managers know their customers, but we want to make this familiarity more company-‐wide."
Howard Tafler Chief Financial Officer
DAVIDsTEA
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Jean Coutu Pharmacie
The Jean Coutu Group is one of the largest names in Canadian pharmacy retailing with 414 franchised stores located in the provinces of Québec, New Brunswick and Ontario, employing close to 20,000 people.
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Case Study
Company/SoluEon Stats:
• 12,000 users • $4.7b Revenue • 5 individual stores > $20m revenue • 414 stores • Largest store does >2000 scripts a day
plus value added retailing
• Flexible ERP that adjusts rapidly to consumer trends
• Enhanced customer service: e.g. mobile POS allows salespeople to interact directly with shoppers (checking inventory, placing orders etc.)
• Seamless customer experience across all channels will become a compeRRve differenRator: shopping across different channels in a consistent manner
• MS AX 2012: All-‐in-‐one omni-‐channel retail soluRon across brick and mortar, catalogue and internet retailing
• Back office -‐ supply, distribuRon and warehousing
• Mobile POS
Customer Results/Benefits SoluEon
#OmniPromise
Feedback
“We wanted to make a radical shiL to get into the 21st century. We see MicrosoL Dynamics for Retail as a driver for that change. As a franchiser, we’re responsive to the demands of our customers as well as our stores. MicrosoL Dynamics for Retail offers the flexibility and the technology to meet those demands.”
Alain Boudreault, Vice-‐President and Chief InformaRon Officer
The Jean Coutu Group (PJC), Inc.
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Get the Data, Use the Data
360˚ view of each customer in real-‐Rme across the enterprise. Each customer is unique, treat them that way! AnEcipate customer behavior with full knowledge of stock levels, buying pa:erns and then respond to demand with Rmely, appropriate and targeted promoRons.
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Immediacy: What does it mean to retailers?
Impulse buying as sales at online businesses worldwide totalled $1.25 trillion last year, up from $1.06 trillion in 2012
Emarketer research from Bloomberg h:p://www.bloomberg.com/news/2014-‐06-‐03/retailers-‐use-‐big-‐data-‐to-‐turn-‐you-‐into-‐a-‐big-‐spender.html
data + analyEcs = knowledge of the customer knowledge of the customer = ↑ revenue
#OmniPromise
Immediacy: How is it done?
CollecRng data in real Rme and leveraging it to personalize offers and interacRons. Let’s share our UXC Eclipse customer insight.
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Case Study
Company/SoluEon Stats: • 50 POS lanes in one LocaRon • Replacement of aging POS hardware
and so]ware • Aggressive Rmeline of 8 weeks for POS
to be ready for busy Summer tourist season.
• Independent network infrastructure • Achieve PCI credit card compliance
• Category Management and real Rme data has significantly increased profitability across the supply chain and allowed managers to make more immediate decisions on products, shelf space, replenishment, etc.
• Dynamics AX 2012 for Retail
Customer Results/Benefits SoluEon
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Key Takeaways
• Know each Customer! • Knowledge comes from data and data comes from systems • Your system needs to span across the enterprise to deliver
real-‐Rme access to data with deep analysis to support customer-‐centric retailing
= It’s a journey – partner, tools, experience
#OmniPromise
It’s your retail journey…
#OmniPromise
Panelists Debbie Hauss Editor-in-Chief Retail TouchPoints
Greg Buzek President
IHL Services
MODERATOR
Will Dunlavy Director Retail Solutions -
Dynamics AX UXC Eclipse
#OmniPromise
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h:p://rtou.ch/omniexperience