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Comprehensive Retail Consulting 1 ©2015 Boston Retail Partners. All rights reserved

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Comprehensive Retail Consulting

1 ©2015 Boston Retail Partners. All rights reserved

Comprehensive Retail Consulting

2 ©2015 Boston Retail Partners. All rights reserved

Straight Talk about the

Changing Face of Retail

Ken Morris, Principal

March 5, 2015

Comprehensive Retail Consulting

3 ©2015 Boston Retail Partners. All rights reserved

Agenda

About Boston Retail Partners

State of Retail Technology

Technology Enabling the Experience

Use Cases – Unified Commerce in Action

Conclusion

Comprehensive Retail Consulting

4 ©2015 Boston Retail Partners. All rights reserved

State of Retail Technology

Comprehensive Retail Consulting

5 ©2015 Boston Retail Partners. All rights reserved

Customers don’t think in channels…

Comprehensive Retail Consulting

6 ©2015 Boston Retail Partners. All rights reserved

Silos are the Achilles heel of retail

technology!

Store Catalog Online Mobile

Comprehensive Retail Consulting

7 ©2015 Boston Retail Partners. All rights reserved

Channel evolution

Single Channel Multi-Channel Omni-Channel Unified

Commerce

The Legacy The Aspiration The Reality The Nirvana

Comprehensive Retail Consulting

8 ©2015 Boston Retail Partners. All rights reserved

Unified Commerce is a High Priority

44% indicated unified commerce

was one of their top three priorities

for 2015

663% increase over next four years

in single commerce platform

implementations

8% have currently implemented a

single commerce platform but more

than half plan to within four years

Comprehensive Retail Consulting

9 ©2015 Boston Retail Partners. All rights reserved

Technology Enabling the Experience

Comprehensive Retail Consulting

10 ©2015 Boston Retail Partners. All rights reserved

Unified commerce platform

Unified Commerce Enterprise

BI CRM

FIN

INV

MFG

Mobile

Devices

Web Site

Traditional POS

Real-Time

Retail

(AKA the

Cloud)

Middleware

Customer &

Associate

Stations

Social Media Integration

Rules Engine

Associate

POS

Real-time Task Management

Comprehensive Retail Consulting

11 ©2015 Boston Retail Partners. All rights reserved

Benefits of centralized commerce platform

Leaner, more flexible store-level environment

Fewer devices and licenses

Centrally deployed application updates

Comprehensive Retail Consulting

12 ©2015 Boston Retail Partners. All rights reserved

Benefits of centralized commerce platform

Enables a glass pipeline (makes the invisible -

visible)

• Allows you to be proactive – not reactive

• Eyes on the problem by leveraging the network

• Use math (pattern recognition and rules engine)

• Solves problems in real-time!

Comprehensive Retail Consulting

13 ©2015 Boston Retail Partners. All rights reserved

Middleware – the enabler

Comprehensive Retail Consulting

14 ©2015 Boston Retail Partners. All rights reserved

MDM - single version of the truth

Comprehensive Retail Consulting

15 ©2015 Boston Retail Partners. All rights reserved

Real-time Analytics

Real-time Analytics

Unified Commerce Enterprise

Real-Time

Retail

(AKA the

Cloud)

Middleware

Rules Engine

Comprehensive Retail Consulting

16 ©2015 Boston Retail Partners. All rights reserved

BPM – delivering a unified, continuous

customer experience

Business Process Management

Automated Business

Process Discovery

Business Activity

Monitoring

Business Rule

Management

Complex-Event

Processing

Content

Management

Intelligent Business

Operations

IMAGE SOURCE: http://searchcio.techtarget.com/

Comprehensive Retail Consulting

17 ©2015 Boston Retail Partners. All rights reserved

Use Cases –

Unified Commerce in Action

Comprehensive Retail Consulting

18 ©2015 Boston Retail Partners. All rights reserved

Customer engagement – personalized

selling and promotions

Comprehensive Retail Consulting

19 ©2015 Boston Retail Partners. All rights reserved

Store operations – monitor and respond in

real-time

Comprehensive Retail Consulting

20 ©2015 Boston Retail Partners. All rights reserved

Supply chain – enterprise inventory

visibility…in real-time

Comprehensive Retail Consulting

21 ©2015 Boston Retail Partners. All rights reserved

Conclusion

Comprehensive Retail Consulting

22 ©2015 Boston Retail Partners. All rights reserved

Start the unified commerce journey now!

Real-time retail is the key

Your data needs to be clean and accessible

• Need the right middleware

• Master data management is critical

Embrace BPM now for a Strategic First Mover Advantage

Comprehensive Retail Consulting

23 ©2015 Boston Retail Partners. All rights reserved

Ken Morris

Principal

(617) 880-9355

[email protected]

www.bostonretailpartners.com

24

Straight Talk about the Changing Face of Retail

Keith Swenson VP, Research and Development Fujitsu America, Inc. March 5th, 2015

25

Retail is Undergoing Transformation Re

tail

is c

han

gin

g

Tech

nol

ogy

mak

es

it p

ossi

ble

Retail is changing The aim of retailers is to achieve seamless, consistent, and continuous customer engagement that provides holistic customer experience.

Technology makes it possible Business Process Management (BPM) systems enables the consolidated and unified environment required by today’s retailers.

Inte

rsta

ge R

etai

l A

gili

ty

Interstage Retail Agility delivers rapid time-to-value & ROI The barrier to BPM is removed by introducing the “Interstage Retail Agility” framework. Continuous customer engagement can be created in a fraction of the traditional time.

Copyright 2015 Fujitsu America Inc.

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The Time for Omni-Channel is Now

Macy’s

“We’re finding that customers don’t really care from where we pull the goods, as long as we fill the order accurately and the delivery is timely.”

– Karen Hoguet, Macy’s CFO

Home Depot

“one out of every three of Home Depot's online transactions is actually fulfilled in the store. …buy online, pick up in store" customers tend to buy more items once they're in the store.”

– Frank Blake, CEO and Chairman, Home Depot

Target

“We are firmly committed to implementing a multichannel strategy that enables our guests to engage with Target anywhere, anytime.”

– Kathryn Tesija, Executive Vice President and Chief Merchandising and Supply Chain Officer,

Target

Urban Outfitters

“From a customer perspective, there's no such thing now as a retail inventory or a direct inventory.“

– Calvin Hollinger, CIO, Urban Outfitters

Copyright 2015 Fujitsu America Inc.

27

Key Omni-Channel Commerce Barriers

Technology and integration challenges

Sharing customer data and analytics across customer touch points

Getting consolidated, accurate view of real-time inventory across stores and distribution centers

Exposing real-time store inventory online

Difficulty integrating back-office technology across channels

Connecting existing legacy POS, eCommerce, ERP, and retail mainframe systems

Lengthy implementation timelines for omni-commerce enabling technology

Organizational and ownership challenges

Siloed online and offline groups hold back omni-channel initiatives

Attribution of sales revenue irrespective of the channel

Operation and executional challenges

Workflow management needed to pick, pack, and ship in stores

Training of stores associates, now expected to be product evangelists, customer service advocates, and distribution experts

“Fulfill from the store is the hardest to execute for two reasons. First, enabling inventory visibility across the enterprise is difficult. Second, managing the store operations around pick, pack, and ship, creates challenges in both technology and operations”.

- VP eCommerce, Apparel retailer

Copyright 2015 Fujitsu America Inc.

28

Introduction to Interstage Retail Agility

29 Copyright 2015 Fujitsu America Inc.

Interstage Retail Agility At-a-glance

Key Value Proposition

Improve retailers business operations with world-class, process-centric solutions to help retailers change and innovate their customer experience with greater speed and flexibility

Core Benefits

Faster time-to-market for omni-channel retail solutions

Reduce cost of deployment and minimize risk of implementation with industry-proven solution

Connect Big Data, Predictive Analytics and Retail

Embrace the legacy retail systems from ERP to POS

Adhere to standards - implements the latest ARTS standards for business process

Powered by Interstage Platform - comprehensive business process management (BPM), middleware, and integration capabilities

On-premise or Cloud deployment

Complements and supports market-leading Fujitsu Retail offerings

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Why Interstage Retail Agility B

usin

ess

Tech

nic

al

For Business Audiences

Deliver holistic customer experience with greater speed and agility Deliver consistent customer experience across all channels Build brand loyalty and trust Drive revenue growth while controlling costs Optimize operational efficiency

For Technical Audiences

Comprehensive set of add-on modules to Interstage platform Enable omni-channel commerce services Deliver single customer view Better decision management with retail KPI dashboards Expedite integration and process automation

Copyright 2015 Fujitsu America Inc.

31 Copyright 2015 Fujitsu America Inc.

What is Interstage Retail Agility?

Retail Framework expands Interstage platform by providing Retail-aware business processes, analytics, rules, integration, and customizable GUIs – adhering to ARTS standards

Enable retailers meet business operations challenges with process-centric solutions

Process Automation

Pre-built predictive analytics, dashboards & templates

Rules Management

Agile GUI Customization

Integration

• Master Data Management, Data Transformation, Connectors for back-end systems (DB, SAP, Oracle, MS Office, etc.)

Offers a framework for delivering and customizing operational retail applications

Omni-channel Marketing

Single View of Customer

Central Customer Management

Central Inventory Management

On-premise or cloud deployment options

32 Copyright 2015 Fujitsu America Inc.

Interstage Retail Agility

Retail Framework

Powering Retail Agility: Interstage Platform

Interstage Platform

Smart Services Grid

Service Oriented Architecture (SOA) & Data

Enterprise Service Bus

Master Data Management

Business Process Management Suite (BPMS) Business Process

Management

Case Management

Rules Management

Composite Application Framework (CAF)

Composite Application

User Interfaces

Task Management

Visualization

Processes Management

Business Rules

Data Model

Omni-channel

Marketing

Single Customer

View

Central

Inventory

Colla

bo

rative W

orksp

ace

Analytics

Columnar Datastore

Data Blending

Process Mining

Inventory

Optimization

Customer

Behavior Analysis

In-Store Traffic

Analysis

Sensors

Social Media

BI/Dashboards Integration

33 Copyright 2015 Fujitsu America Inc.

Key Features Enabling Omni-channel Commerce

Service-Oriented Architecture (SOA) - based system integration to unlock business data and logic from existing retail systems with scalability, performance and efficiency.

Complete Business Process Management (BPM) capabilities to automate, manage and improve retail processes that span multiple systems, channels, and touch points.

Predictive Analytics – actionable business insights derived by connecting Big Data, Predictive Analytics, and Retail

Business Rules - manage complex business rules to ensure a unified and cohesive customer experience.

Master Data Management to maintain a single version of truth for data across multiple sources of information to provide a holistic view of data across any organization Data Management

Composite Application Framework (CAF) for easy-to-use development environment to create rich, interactive retail applications that combine a wide range of information sources and services

On-Premise and the Cloud deployment

34 Copyright 2015 Fujitsu America Inc.

Key Features: Enterprise Scale SOA Integration

The SOA Grid is particularly suitable for:

Legacy modernization

System to system orchestration

Extending ERP systems

What is it?

A full integration capability built around an Enterprise Service Bus delivering Service Orientated Architecture

The Interstage platform has a SOA grid at is foundation to deliver connectivity, advanced integration and business services to support organization wide, mission critical BPM

What does it give you?

A single URL for anything (a process, rule, UI, case, MDM etc)

A way of ensuring enterprise wide business processes work seamlessly with the existing IT estate

A robust, highly available, highly scalable framework allows non-stop execution of business processes

Enables enterprises to adapt rapidly to changing business needs and substantially lowering the total cost of ownership

35 Copyright 2015 Fujitsu America Inc.

Key Features: Business Process Management

BPM is particularly suitable for:

Dynamically allocating the right work to the right person

Enforcing SLAs for task completion

Managing workloads across teams and locations

What is it?

The capability to intelligently and effectively allocate tasks that are part of a process to the subject matter experts inside an organization regardless of location

The intelligence comes from being able to give the right task, form, information and single view of data combined with only allocating the right kind of work to the right person

What does it give you?

A rich, browser based inbox for tasks, cases and allocated work. This allows you to delegate, claim, escalate, re-allocate and tag work

Work allocation based on many factors such as current workload, rules, business SLAs and business calendars

The ability to map work based on the organizational model

Dynamically adjust work allocation based on Business Activity Monitoring and business metrics such as KPIs

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Key Features: Predictive Analytics

Comprehensive pre-built predictive analytics, dashboards & templates for retail

Solid, scalable architecture –

Hadoop integration

Underlying technology 500x faster than traditional databases

Latest sensing technology:

WiFi proximity detection

Beacon

Unique Fujitsu IP

True SOA Omni-Channel PoS

Broad ERP integration options

Comprehensive monitoring and visualization

Secure cloud or on-premises hosting

One solution provider, global reach

Hardware, software, analytics and services

Predictive Analytics is particularly suitable for:

In-store customer engagement

Predictive analytics for inventory optimization

Identifying key trends in one channel and applying to other

Engaging customers with Wi-Fi analytics

Copyright 2015 Fujitsu America Inc.

37 Copyright 2015 Fujitsu America Inc.

Key Features: Business Rules

Business rules are particularly suitable for:

Decision centric operations

Business apps that frequently change behaviour

Processes that need a high degree of business control

What is it?

Rules that define how a company acts are driven by business rules removed from the underlying process, systems and people

An easy to use capability or “decision table” to change they key decisions points of a business process

What does it give you?

The business can have the ability to change these rules to reactively and proactively change the behaviour of the organization

Speed and decisiveness in making a business change

Reduced complexity for the business but with governance and control

Reusable processes and cases but with easily customizable business logic in the hands of the subject matter experts

38 Copyright 2015 Fujitsu America Inc.

Key Features: Master Data Management

Master Data Management is particularly suitable for:

A single view of risk

A single view of customer or employee

A single view of product

What is it?

A real-time, single, uniform view of data regardless of source from across an organization giving a consistent context for the use of data everywhere within the organization

Data stays where it is – this is not “rip and replace” but “leave and layer”. Integration to data is read & write, data is loosely coupled

What does it give you?

A standards based, reusable single view of data available as a service

Better, more complete information for your business processes for customer service, compliance, up-sell/cross-sell etc

More intelligent decision making for key stakeholders

Reduced complexity of data access, transformation, aggregation and integration behind a standard data service layer

39 Copyright 2015 Fujitsu America Inc.

Key Features: Composite Applications

Composite applications are particularly suitable for:

Subject matter experts and knowledge workers

Anyone participating in a process

Delivering a rich, effective customer experience

What is it?

A way of building user interfaces to present processes, cases, applications, dashboards etc to users

The capability for business users to self assemble or compose business mash-ups made up of internal and external information

What does it give you?

High levels of productivity and speed for subject matter experts to create, share and publish relevant business applications

Technology in the workplace that is as productive as the consumer IT people use outside work

Disposable application that solves a problem but can be thrown away

Mix and match structured data from internal systems (e.g. ERP) with external data (e.g. Google Maps)

A rich way of participating in processes and giving the right information in one place to the right person (customer, employee, business manager)

40 Copyright 2015 Fujitsu America Inc.

Key Features: On-Premise and the Cloud

BPM in the cloud is particularly suitable for:

Outsourcing, BPO and systems integrators

Combining the best of SaaS with existing legacy

Flexible charging models – e.g. subscriptions

What is it?

Enterprise wide BPM in the cloud, on-premise or a hybrid mix of both

The Interstage platform can run in the public cloud, the private cloud, on-premise or hosted by a delivery partner. It is exactly the same platform.

What does it give you?

Business processes spanning the people, applications and services regardless of where they are. A business process could orchestrate SAP, Siebel, Salesforce, Google, Azure etc

Choice of using the cloud, not using the cloud, moving to the cloud when it makes business sense

The best of both worlds – make use of innovative SaaS applications together with traditional applications and existing legacy

The option of being able to run your business processes as a service (BPaaS) but retain control of your differentiation and innovation

41

Fujitsu Background

42 Copyright 2015 Fujitsu America Inc.

Fujitsu at a glance

Headquarters: Tokyo, Japan

Established: June 1935

Net Sales: US $53 billion

R&D Expenditure: US $2.4 billion

Employees: 162,000 worldwide

3rd largest IT company worldwide

6th largest Application Infrastructure and Middleware software provider

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For More Information

Visit us at:

http://www.fujitsu.com/interstage

or email:

[email protected]

Copyright 2015 Fujitsu America Inc.

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