milestones on the omni-channel journey

3 |

Milestones on the Omni-Channel Journey

4 |

Consumer Expectations

Retailer Reality

Consistency across channels

Buy what I want, when I want, where I want

Acquire and return when I want, where I want

Complex processes

Error free

Easy

Error prone

Human interventionMargin erosion

ProblemsStock balance

Site capacity

Delivering the promise

5 | © 2015 Software AG. All rights reserved.

THE JOURNEY TO OMNI-CHANNELPREVIOUS MILESTONES

Transactional Website

ImplementEcommerce Platform

Mcommerce

LaunchMobile App

Cross-channel

LaunchClick & Collect


THE JOURNEY TO OMNI-CHANNELTHE NEXT MILESTONES

Time

Incr

easi

ng V

alue

& R

OI

Plan for the Peak

Maximise Resource Return

Conduct you Orchestra

10 |

Plan for the Peak


PLAN FOR THE PEAK


WEBSITE SPEED IS AN ISSUEDURING NORMAL TRADING

http://www.salecycle.com/cart-abandonment-stats/

Recent surveysput cart abandonment at

http://baymard.com/lists/cart-abandonment-rate

and is increasingyear-on-year

75%

Baymard Institute

http://www.shopify.co.uk/blog/8484093-why-online-retailers-are-losing-67-45-of-sales-and-what-to-do-about-it

Website crashed.Process was taking too long

https://econsultancy.com/blog/11274-67-of-consumers-cite-slow-websites-as-the-main-cause-of-basket-abandonment/

67% of consumers citeslow websites

as the main cause ofbasket abandonmentEconsultancy / Brandperfect

If you are converting at 1.5%and you can reduce cartabandonment rate by

http://www.webstrategiesinc.com/articles/online-marketing-reducing-shopping-cart-abandonment-rates

Webstrategies

25%(from 50% to 37.5%)your conversion rate increases from 1.5%

to nearly 1.9%



http://baymard.com/lists/cart-abandonment-rate












PLAN FOR THE PEAKPOSSIBLE TACTICS

RISKHIGH

COSTHIGH

AND LIMITEDBENEFIT

QUESTIONABLE

LONG

TAKESTOO

Add

additionalhardware

Cross X

fingers

Upgradecommerceplatform

ImplementQueuingSystem


PLAN FOR THE PEAK

Proven, risk free

Ultra fast deployment

Speed, scale and stability

Support for web and mobile sites

Minimal complexity

Cost effectivity

A RECIPE FOR SUCCESS

16 |

PLAN FOR THE PEAKECOMMERCE ACCELERATION

Ecommerce Acceleration

Eliminate the largest cause of basket/cart abandonment and avoid site availability issues during peak trading periods in your online sales channels.

Deployed in days, Ecommerce Acceleration utilises tried and tested technology in order to move data closer to where it is used.

© 2015 Software AG. All rights reserved.


PLAN FOR THE PEAK

Proven, risk free

Ultra fast deployment

Speed, scale and stability

Support for web and mobile sites

Minimal complexity

Cost effectivity

A RECIPE FOR SUCCESS• De facto standard for enterprise Java• In use by 1000+ customers globally

• Deploy in less than 2 weeks

• Accelerate speed by 100x• Scales to the largest demand peaks

• Designed for use by Java applications• In use with leading commerce platforms

• Reduces number of webservers required to run site

• Enables hardware reduction• Proven low total cost of ownership

20 |



MAXIMISE RESOURCE RETURN

“If you cannot measure it,you cannot manage it.”Attributed to Peter Drucker and W. Edwards Deming

22 |

MAXIMISE RESOURCE RETURN


RETAILERS AND CONSUMERS AGREE: VISIBILITY IS CRUCIAL

http://www.information-age.com/it-management/strategy-and-innovation/123457982/retailers-struggle-meet-omnichannel-expectations

71% consumers expect to be able to do an online in-store inventory check

…only 32% retailers offer this

Information Age

10% Additionalrevenue


RIS News - Real-Time Inventory Visibility: Cross-Channel Integration Boosts Revenue

could be gained from tight cross-channel integration…

across a single view of items, orders, inventory and customers

of retailers

see a lot of value in inventory visibility

http://www.rsrresearch.com/2013/12/11/supply-chain-execution-2014-making-omni-channel-profitable/

…only 45% believe they have a

lot of visibility

93%RSR Research - Supply Chain Execution: Making Omni-Channel Profitable






MAXIMISE RESOURCE RETURNRETAILERS AND CONSUMERS AGREE: VISIBILITY IS CRUCIAL

One North American

retailer was forced to cancel online customer orders late in the holiday season due

to overwhelming demand.

The company had the needed inventory but couldn’t get to it due to lack of visibility.

Accenture - Seamless Inventory Management: Seizing the Opportunities with Cross-Channel Inventory Management http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Seamless-Inventory-Management.pdf

Complete inventory visibility

helps retailers

optimize product distributionto allow ordering, pick-up and delivery from any channel

Retail Touchpoints - 6 Retailers Tap Inventory Solutions To Deliver Omni-Channel Successhttp://www.retailtouchpoints.com/cross-channel-strategies/3345-6-retailers-tap-inventory-solutions-to-deliver-omnichannel-success

Shopperswant to check inventory on their mobiles


Accenture

http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Seamless-Inventory-Management.pdf



http://www.retailtouchpoints.com/cross-channel-strategies/3345-6-retailers-tap-inventory-solutions-to-deliver-omnichannel-success





25 |

MAXIMISE YOU RESOURCE RETURN REAL-TIME INVENTORY VISIBILITY

Real-time Inventory Visibility

Enable clear understanding of inventory position forEvery Product, Every Location, Right now.

Essential insight for online sales, head office, channel & store managers to inform & enable opportunity driven re-deployment.


27 |

Conduct Your Orchestra


MILESTONES ON THE OMNI-CHANNEL JOURNEYCONDUCT YOUR ORCHESTRA

http://www.scdigest.com/ONTARGET/14-10-07-1.php?cid=8562

94% of retail decision makers

said their companies face significant barriers to operating a joined up ‘omni-channel’ business

http://www.information-age.com/it-management/strategy-and-innovation/123457982/retailers-struggle-meet-omnichannel-expectations (2014)

http://www.ey.com/GL/en/Newsroom/News-releases/news-ey-growth-in-omni-channel-risks-diluting-consumer-products-and-retail-sector-profit (2015)

81% of respondentsbelieve their Supply chainis not fit for purpose

Omni-channel growth will dilute margins unless the supply chain changes



http://www.ey.com/GL/en/Newsroom/News-releases/news-ey-growth-in-omni-channel-risks-diluting-consumer-products-and-retail-sector-profit




MILESTONES ON THE OMNI-CHANNEL JOURNEYCONDUCT YOUR ORCHESTRA

Almost a third of Britishonline shoppers experience problems with their orders over peak periods.

http://www.computerweekly.com/news/2240237757/Retailers-need-to-plan-for-online-peaks-and-troughs

‘Siloed legacy IT is a significant barrier to meeting the challenge of omni-channel’

http://www.information-age.com/it-management/strategy-and-innovation/123457982/retailers-struggle-meet-omnichannel-expectations Information Age

‘Our click and collect is designed for 250 orders per store per day. We are struggling - in many stores we are getting 600 orders a day’Major omni-channel retailer

To succeed in omni-channel retailing, brands must have really good front-end technology……but it is useless unless the back-end fulfilment technology

is re-engineered to cope with peaks

in consumer demand.http://www.computerweekly.com/news/2240237932/Retail-technology-useless-without-back-end-support-says-John-Lewis Paul Coby – CIO John Lewis

http://www.computerweekly.com/news/2240237932/Retail-technology-useless-without-back-end-support-says-John-Lewis

http://www.computerweekly.com/news/2240237932/Retail-technology-useless-without-back-end-support-says-John-Lewis


CONDUCT YOUR ORCHESTRA

Clear adaptable process design

Multi-party connectivity

Super fast response times

Scalable process orchestration

Automated monitoring and correction

A SHOPPING LIST FOR SUCCESS• Allow evolutionary improvement

over time as needs change

• Connect my systems as well as my suppliers and service providers

• To react to consumer requests

• Deal with normal as well as peak demand

• Detect and fix any problems

33 |

CONDUCT YOUR ORCHSETRAOMNI-CHANNEL ORCHESTRATION

Omni-Channel Orchestration

Growth in omni-channel risks diluting margins due to the process complexity & volumes.

Omni-channel orchestration is designed specifically to orchestrate the process of delivering against a customer order irrespective of where the order is taken and how it is to be fulfilled.


24


CONDUCT YOUR ORCHESTRA

Clear adaptable process design

Multi-party connectivity

Super fast response times

Scalable process orchestration

Automated monitoring and correction

A SHOPPING LIST FOR SUCCESS


THE JOURNEY TO OMNI-CHANNELTHE NEXT MILESTONES

Time

Incr

easi

ng V

alue

& R

OI

Plan for the Peak


Conduct you Orchestra

39 |

http://www.softwareag.com/omnichannel

