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The unique approach to seamless retailing

• The Push and Pull for Omni-Channel

• The Path Forward

• Considerations for Success

The Push and Pull for Omni-Channel

Throughout the world, there is a paradigm shift taking place:

• from Retailer to Consumer

• from Control to Participation

• from Channel to Brand

• and from Transaction to the Order

The Paradigm Shift

Technology: 7 – 10+ years between changes in technology supporting customer interactions

Business: 2 – 4 years between changes in business model and core processes

Consumer: 1.5 – 2.5 years between changes in touch point or interaction platform of choice

4-5 cycles

2.5 cycles

1 cycle

Let’s start by understanding the rapidly evolving needs of your business and consumers

Rapid Pace of Change

Market

Why… does the

consumer shop your

brand in-store or online?

What… do you do

to meet this “why”

and drive value?

How… do you enable

that experience with

technology?

Consumer Business ModelBusiness

Process

User-Facing

Technology

Platform /

Infrastructure

“Why do my target

consumers shop as

they do with the

options,

challenges,

aspirations,

expectations they

have?”

“What do we do to

differentiate

ourselves thus

creating and

capturing value

knowing what we

know about our

market and

consumers?”

“What do we do to

put that model into

practice effectively,

consistently, and

efficiently –

particularly in our

stores?”

“How do we use in-

store touchpoints

aimed at both

consumers and

associates to

support critical

business

processes?”

“How do our

underlying systems

and infrastructure

enable both

existing and

emerging

touchpoints with

speed and

sustainability?”

Consumer Business Technology

Against that backdrop, let’s look at who is in control, what that means for retail, and for technology investments

Why, What and How

Consumer

The Push and Pull

• Let me participate

• Engage with me

• Know who I am

• Treat me the same

across all the ways I

interact

• Give me choice how

and when I engage

• Create a single

source of truth for key

data

• Let me innovate, not

integrate (both cost

money)

• Give me agility to

move more quickly

Technology

27%made their last purchase online. 50% increase over 2012

70%have a smart phone

9 of 10 reasons to shop a retailer involve omni-channel capabilities

69%post a review once per month. 54% post 2-3 reviews per month

64% say reviews are the most important criteria in deciding where to shop

81% expect the same brand experience across all channels

Source: 2013 Institute for Business Value; Global Study of 30,000 consumers

The Consumer Pull

10

Growth Trends through 2025

90%

Smartphone penetration. $100 mobile devices will have 1TB of DRAM.

1 billion

New members of urban consumer class living in cities by 2025.

8.1 billion

Estimated world population in 2025 according to the UN; 60% live in cities.

Crowded…

Consuming…

Connected…

These trends showing no signs of slowing downIn 2025 technology will enable more people

0

No apparent capability

1Poor

2

Minor gaps

3

Expected or superior

Omni-channel leaders

differentiated in:

• flexible fulfillment

• web experience

• call center experience

Retailers are delivering consistent

marketing messages, yet acting

on customer insights still proves

difficult

Largest area in need of

improvement: consistent store

experience and execution

Average = 1.43

The Store Execution Challenge

Source: Toshiba & IBM consumer research; IBM Institute of Business Value 2014

It Matters: 1.23X

Not all customers are created equal. Omni-channel engagement = more money.

Single Channel

Customer

Omni- Channel

Customer

Profitability

=X

Profitability

=1.23X

76% of retailers do not know who their omni-channel customers are

Source: RIS-EKN Customer Engagement Survey, 2014

The Path Forward

Evolutionary vs. Revolutionary

Evolutionary• Shift gradually to start

addressing some high-priority consumer needs

• Focus on critical businessprocesses that are broken or greatest need for reform

• Invest in technology to protect and extend most existing systems

Revolutionary • Move rapidly to create a

consumer-driven business with greater agility to meet consumer expectations

• Re-evaluate businessprocesses, creating best practices and differentiation

• Invest in technology to support new business processes, both today and tomorrow

Evolutionary Approach

Single Channel Multi Channel Cross Channel

● Customer experience a

single type of touch point

● Retailers have a single

type of touch point

● Technology was

developed assuming one

touch point

● Customer sees multiple

touch points acting

independently

● Retailers channel

knowledge and operations

exists in technical and

functional silos


touch points as part of the

same brand

● Retailers can provide cross

channel capabilities but

operates in technical and

functional silos integrated

with each other

Evolutionary Approach

Single Channel Multi Channel Cross Channel Omni Channel

● Customer experience a

single type of touch point

● Retailers have a single

type of touch point

● Technology was

developed assuming one

touch point


touch points acting

independently

● Retailers channel

knowledge and operations

exists in technical and

functional silos


touch points as part of the

same brand

● Retailers can provide cross

channel capabilities but

operates in technical and

functional silos integrated

with each other

● Customer experiences a

brand, not a touch point

within a brand

● Retailers leverage their

single view of the customer in

strategic and coordinated

ways

Omni Channel

Revolutionary Approach

● Customer experiences a

brand, not a touch point

within a brand

● Retailers leverage their

single view of the customer in

strategic and coordinated

ways

Omni Channel

Omni-Channel ScenariosView and act on inventory with visibility across the enterprise

Buy online or in a non-store channel – Return/exchange at the

store

Buy online or in a non-store channel – Modify order at the store

Buy online or in a non-store channel – Pick up at the store

Expanded Store ScenariosView and act on inventory with visibility across other stores

Buy at the store – Pick up at alternate store

Buy at the store – Ship to home

Buy at the store – Ship to multiple addresses

Buy at the store – Mix online purchases with cash & carry

Revolutionary approach,

which sets a foundation

for growth not constrained

by existing design

paradigms – as your

consumer journeys and

Omni-channel strategy

continue to evolve.

Omni-channel ’out of

the box’

Able to orchestrate a

transaction from

management through

fulfillment.

Finally, it is

possible to buy

anywhere, get

anywhere and

return anywhere

Pillars of Revolutionary Approach

OTHER ENTERPRISE SYSTEMS •Single view of customer and data (i.e. inventory); results in greater data consistency and accuracy

• Improved analytics to generate meaningful actions

•Complex order orchestration and fulfillment

•Simplify Enterprise Systems Architecture

•Ultra-scalable deployment

•Optimizing IT Investment - ‘one thing to change, one thing to manage’

•Elevating the Consumer Experience across selling channels

•Redefining a more Agile Retail Store


ORDER MANAGEMENT

STORESWEB CATALOG MOBILE CALL CENTER

Inventory Accuracy – the largest negative impact

for not being omni-channel ready

6.5% Lost Sales

BUSINESS TRANSFORMATION

WEB STORES CATALOG MOBILE CALL CENTER

• Better visibility to your consumers; optimizing IT investment through common data and common services as the foundation

• Enables new and evolving retail store formats and omni-channel capabilities

• Empowers new associate and customer interaction allowing her to shop her way; greater agility as consumers evolve

• Facilitates Omni-channel analytics, enabling cross-sell and upsell, as well as tailoring consumer experiences and targeted marketing

• Minimize enterprise integrations to be managed

• Flexibility in choice of devices (fixed, mobile, hybrid) client options (thin clients, thick clients), and deployment models (store, enterprise/cloud, hybrid)

• Open, secure, scalable

• Intuitive and flexible graphical user interface

VISION ALIGNMENT – CONSUMER

ARCHITECTURE ALIGNMENT – TECHNOLOGY


Considerations for Success

There are 4 key areas that will evolve in the new age of retail.

• Store Design & Branding

• Personalization

• Omni-channel Hub & Operations

• Intelligent Store

Supporting this evolution requires a review of a few basic

capabilities that may need strengthening.

• Customer Insights

• Technological Capabilities

• Organizational Re-design

Business Transformation

• Business Strategy

• Business Processes

• Clear Objectives with Governance

• Customer Relationship

• Business intelligence

Omni-channel is a powerful strategy for retailers to improve their customer

experience, sales, loyalty and business performance

Starting point considerations….

Business Transformation

Deploying an Omni-channel strategy

• Work as ONE team

• Think from a CUSTOMER's perspective

• Leverage TECHNOLOGY for the company's benefit

• No company is too BIG or too SMALL

• There is no time like NOW

MOBILE

SOLUTIONS

PROMOTIONS

AND LOYALTY

SYSTEMS

MANAGEMENT POINT OF SALE

APPLICATIONS

PAYMENTS &

SECURITY

OMNI-

CHANNELBUSINESS

ANALYTICS

PRINTERS

POINT-OF-SALE SELF-

SERVICE

SOLUTIONS

MOBILE

TOUCH

DISPLAY

POS / KIOSK

MANAGED SERVICESCONSULTING SERVICES CLIENT SERVICESPROFESSIONAL

SERVICES

Services & Solutions

Retail Hardware Systems Retail Commerce Software

To provide a flexible commerce platform designed to allow Toshiba’s clients and business

partners to add and extend the value of Toshiba Retail technology. One that is comprised

of a set of tools, capabilities and services that allow for the delivery of more efficient and

agile commerce solutions in today’s dynamic, fast paced retail environment.

DO MORE GO FASTER

Grow at your own pace Extend beyond your boundaries Lead with your consumers

The Retail Store Reimaged – Evolutionary

LINK

A more flexible client for a more flexible business

• Flexible to run on various devices and screen sizes

• Modern and configurable graphical user interface to change layout, “look and

feel”, button sizes, placement

• Easily extensible to meet retailers’ unique needs

• Default user interface and usability based on Toshiba design lab research and

insights

• Developed with latest web technologies

• Inherently device, operating system, and browser agnostic

iFrame technology enables on-the-glass

interaction with other web applications, such

as retailers’ eCommerce sites

Device broker supporting retail peripherals

The Retail Store Reimaged – Revolutionary

TCxGravity

Key Take-Aways

• The Push and Pull for Omni-Channel– Omni-channel is about maximizing share of wallet and optimizing your investments

– A lack of omni-channel strategy and capability has a negative impact on profitability

• The Path Forward– A clear understanding of your strategy, risk tolerance, budget is required

– Evolution and revolutionary paths: both have benefits and risks

• Considerations for Success– There is considerable investment by vendors and retailers in this space

– Successful execution requires discipline; constantly assess, learn, adapt

• Next Steps – Start the conversation with Toshiba

“Those who lead the [retail] field strike the right balance between

physical and digital, experience and affordability, and

convenience and quality.”

Source: Fast Company, “The World’s Top 10 Most Innovative Companies in Retail”, February 2014

The World’s Top 10 Most Innovative Companies in Retail

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