IBM Aruba for Retail April 2012.ppt · IBM Global Technology Services Executive summary To survive...

April 2012p

IBM & Aruba Networks Solutions for Smarter Retail

© 2012 IBM Corporation

IBM Global Technology Services

Contents

Executive Summary

M bilit d S t R t il Mobility and Smarter Retail

The IBM/Aruba Value Proposition for Mobility in Smarter Retail– Increase Revenues by Improving the Sales Experience– Reduce Expenses by Streamlining Operations– Manage Risk by Protecting the Store and its Assets

The RoI for Mobility & Wireless in Retail through the IBM and Aruba OfferingThe RoI for Mobility & Wireless in Retail through the IBM and Aruba Offering

The IBM/Aruba Portfolio for Smarter Retail

Why IBM & Aruba?

© 2012 IBM Corporation2


Executive summary

To survive and prosper in today’s changing retail environment, smart retailers are working with a number of key imperitives, such as delivering a smarter shopping experience

The use of tablets, smartphones and supporting WiFi infrastructure which are being rolled out by smart retailers will dramatically affect how retailing will be conducted andout by smart retailers, will dramatically affect how retailing will be conducted and experienced by customers

The IBM / Aruba offering has multiple strong value propositions that can enable you to increase revenues by improving the sales experience, reduce expenses by automating inventory management and manage risk by protecting the store and its assets

There is a clear and strong RoI for retailers through implementing a mobility solution based on the IBM and Aruba offering for retail

IBM and Aruba both have extensive experience within the retail sector, combining our strengths to provide comprehensive end-to-end solutions for smarter retail



Contents

Executive Summary





Why IBM & Aruba?



To survive in today’s changing retail environment, smart retailers are working with three key retail imperatives

DEVELOP SMARTER MERCHANDISING AND SUPPLY CHAINSGather customer information

DELIVER A SMARTER SHOPPING EXPERIENCEEnable customers to shop

however, whenever and continuously and at every touch point. Manage and deliver assortments based on customer input and insights.

wherever they want. Match inventory and brand

experience on the Web, in stores and via mobile devices.

RETAIL

BUILD SMARTER OPERATIONSUpdate systems to better handle today’s customer demands. Improve management across labor, assets and b i


business processes.


These retail imperatives have three dimensions…

1 2 3Deliver a smarter shopping

Focus on Value:Customer security

and confidence

Exploit Opportunities: Increase loyalty Invest in growth plays

Act with Speed:Clearly communicateGet the information to act

1 2 3

Optimize Supply Chain Explore New Operating M d l

Get the information to act

pp gexperience.

Develop smarter h di i d

Improve efficiencyg p y

Protect and acquire talent Business performance management and analytics

Rationalize AssortmentsRenegotiate terms

ModelsConsider Global Expansion

Manage business performance

merchandising and supply chains.

Build smarter ti

Reduce SG&A costs Clearly communicate Focus on winnersoperations. Improve efficiency

Renegotiate terms Leverage experience Set the agendaManage risk

Invest in growth plays Explore new operating

models Look at acquisitions and

alliances


alliances


Tablets, smartphones and supporting WiFi infrastructure will have a f ffsignificant effect on how retailing is conducted and experienced

S t C tSmart Shopper

Customer Engagement

#1 i it f t ilHalf the US population

owns a smartphone

#1 priority for retailers is to improve customer service

(49%)

54%

2/3 of smartphone users research products/prices

54% of retailers deploying

handhelds/tablets for store associates

p pin-store 38%

of retailers adding customer WiFi access


Source: : The Nielsen Company, "US Smartphone Penetration to Be over 50 percent in 2011," March 2010Shop.org, comScore and Social Shopping Labs, 2011 RSR Research, June 2010, Aruba State of In-store Mobility Survey, Dec 2010


To improve customer service and execution, retailers are “tooling up”

Top Challenges Improving customer serviceConsistent store execution

Top PrioritiesBetter associate tools

Engaging mobile customers

store associates with mobile devices and engaging mobile customers

Top Mobile Application Plans

Top Store System Plans Tablet/Handheld purchases

Top Mobile Application PlansSocial media integration

Product information/reviews

© 2012 IBM Corporation8Source: “Store Systems Study 2011,” RIS News, Jan 2011


Smart retailers see the clear value on implementing WiFi in their stores to support store associates and better engage customers



In-store WiFi upgrades are a top IT priority for retailers in 2012

© 2012 IBM CorporationSource: Dec’11-Jan’12 survey conducted by Aruba of more than 130 retail IT leaders

10


From a historical focus on expense reduction and on reducing risk, retailers are now looking to mobility as a key tool to increase revenues

Automate Protect the store Engage Improve the

Reduce Expense Reduce Risk Increase Revenue

inventory management

with Wi-Fi enabled

against wireless backdoors& breaches

g gcustomers

on their smartphones when in store

pexperience with self-shopping &

mobile PoS


enabled scanners

when in store


Inventory management is currently the largest use for WLAN, but f 2areas like client WiFi access are the focus during the next 24 months

Current use of WLAN in stores

Pl d dditi i t 24 thPlanned additions in next 24 months

Source: Retail TouchPoints, January 7th, 20011



Contents

Executive Summary





Why IBM & Aruba?



IBM & Aruba Solutions for Smarter Retail

Deliver a smarter shopping experience and streamline operations through WiFi-enabled solutions combining Aruba MOVE and the IBM portfolio

Increase revenue by improving the sales experience Enable staff with WiFi-enabled smart devices to better support customers

R h t b d i i ti th h f t WiFi

MOVE and the IBM portfolio

Reach more customers by driving promotions through free guest WiFi Improve engagement with your customers through smartphone apps Reduce queues and maintain the positive experience with Mobile PoS Better connect with your customers through WiFi-enabled Digital Signage

Reduce expenses by streamlining operations Facilitate improved inventory management through automated data capture Reduce costs with a consodlidated wireless network and a single device

Manage risk by protecting the store and its assets Reduce security breaches through implementing wireless PCI compliance Secure staff, inventory and assets through WiFi-enabled Video Surveillance



Contents

Executive Summary





Why IBM & Aruba?



Top Trend: Apple Store Like ExperienceChallenge: How can you emulate an ”Apple Store like experience” ?to improve the customer experience and drive more revenue?

European retailer upgraded Wi-Fi to support guest access & 15,000

Leading US luxury retailer upgraded Wi-Fi to support 6,000


iPad roll-out across 5,000 stores iPods/iPads and guest access


Value Proposition: IBM and Aruba can reduce the cost and f f

iPad Self Registration

iPad Self Registration

complexity of deploying smartphones and tablets with easy self-provisioning

Device Fingerprinting

Device Fingerprinting

gg

802 11 AP M bilit

Amigopod

De iceDe ice802.11n AP Mobility Controller

Device VisibilityDevice Visibility

Zero IT touch,context aware access

Auto-identification of user, device, application

Monitoring, reporting per user and per device

AirWave


pp p


Challenge: How can you leverage your WLAN network to extend ?your reach to more customers?

Adding in-store WiFi for customers is the top WiFi application focus for retailers in the next 24 months

UK grocery retailer piloting Wi-Fi access linked to

customer loyalty program

application focus for retailers in the next 24 months

customer loyalty program. Customer’s receive targeted

promotions at login

US based luxury retailer will be adding customer Wi-Fi

access to differentiate service


service

Source: Dec’11-Jan’12 survey conducted by Aruba of more than 130 retail IT leaders


Value Proposition: Provide free WLAN network access through which ffyou can offer promotions and understand customer behaviour

CustomersUser Self

Registration & Demographic Info Capture

P f l C t

Compliance, Auditing & Reporting

Customers

Per User Access Control

Powerful Advertising

Module

Custom Branding

Immediately knowing when clients are going

Using location services to proactively send sales reps. to

Delivering targeted promotions to online clients based on their


g gonline in the store

phelp clients based on their online queries

clients based on their demography


Challenge: How can you better engage your customers in the store ” ”?using smartphone ”apps”?

½ f th US l ti½ of the US population owns a smartphone and 2/3 of them research products/prices in store

Retailers plan to develop a number of Mobile Apps. within the next 24 months

Mobile Apps. have been identfied as one of the top technologies to improve customer engagementtechnologies to improve customer engagement




Value Proposition: IBM and Aruba enable in-store smartphone app ffeatures that leverage Wi-Fi location, voice and cloud content services

Location awareness for in-store navigation/promotion– Up to three meters with AirWave– AeroScout and Ekahau Integration

Wi-Fi voice to differentiate customer service– Ability to place Wi-Fi call to in-store associates– Voice session prioritization

CSSCSS

Voice session prioritization– Support for leading SIP and proprietary voice clients

Content security services to protect liability & abuseCSS

CloudCSS

Cloud– Filter inappropriate content– Gain business intelligence



Challenge: How can you ensure maintaining the positive customer ff ”experience you have created but which can suffer doing the ”check-

out” process?

A long wait in the checkout line can destroy a previously very positive customer experience that retail stores

What mobile apps. do you plan to add in the next 24 months?

have worked hard to create

Many retail stores are limited in space and cannot build out additional check-out desksout desks

Mobile PoS can make more efficient use of existing space by reducing the number of checkout counters

Mobile PoS is one of the top investment priorities for retailers in the next 2 years to address checkout pains

© 2012 IBM Corporation


22


Value Proposition: IBM and Aruba can provide a solution to reduce queues and maintain the positive customer experience without adding checkout counters or staff by implementing Mobile PoS

Aruba Infrastructure Mobile Readers PoS Application

Secure Wi-Fi access and device self-provisioning

(incl iOS devices)

Mag stripe and barcode readers

(incl iOS devices)

Mobile Point-of-Sale application

Reduces queuing Gains in employee Creates new “up-

(incl. iOS devices) (incl. iOS devices)


and improves customer experience

productivity sell” opportunities


Top Trend: Apple Store Like ExperienceChallenge: How do you better reach your customers with in-store ?promotions?

Digital Signage has been identified by Retailers as a top customer-facing enabler

By end of 2011, nearly 40% of US Retailers will have or will be implementing Digital Signage solutions

Digital Signange provides signficant benefits to Retailers



Value Proposition: IBM and Aruba provide a solution that supports digital signage to better reach your customers

Eliminate display cabling– Prices of Wi-Fi capable LCD displays have fallen sharply– Aruba Wi-Fi guarantees high quality multi-media

Enhance experience with high quality video steaming– Ability to place Wi-Fi call to in-store associates

Voice session prioritization– Voice session prioritization– Support for leading SIP and proprietary voice clients

Content delivery via Amigopody g p– Aruba Amigopod can push content and stream videos



Contents

Executive Summary





Why IBM & Aruba?



Challenge: How can you better streamline inventory managment in ?

Inventory management is currently the top WLAN li ti ithi t

your stores and warehouses?

WLAN application within stores

Challenges with manual paper-based inventory management: Lack of real-time inventory/stock visibility

across store front and backroom

Costly and labour-intensive manual inventory management and stock countsinventory management and stock counts

Lost sales due to stock-outs

Losing customers to


Losing customers to your competitors!

Results in:



Value Proposition: IBM and Aruba can provide an end-to-end inventory management solution that spans leading ruggedized devices to streamline your inventory processes

Certified Interoperability

Proven Solution

Unified Management Portal

500+customers use ArubaWi-Fi infrastructure

for inventory scanning

Aruba Air Wavefor inventory scanning

Improved business Enhanced Improved visibility


processes employee productivity

of inventory/


Challenge: Store associates using multiple devices operating on disparate networks are costly, reduce productivity, and importantly, affect the ability to effectively serve customers

Stores often have dedicated devices for specific tasks, which can be costly

– Ruggedized handhelds for inventory mgmt.– Phones for voice communication– Fixed terminals for stock information

Different devices often run on different networks (fixed, wireless, cellular) which adds ( )cost and complexity

Servicing clients may involve using more than one device, which can sub-optimize service

Multiple devices means more time and cost used to train store associates on each device



Value Proposition: IBM and Aruba can provide a consolidated wireless network solution combined with one smart device type that can reduce costs while improving customer service

Consolidated Wireless network Single Device Support for Indoor

and Outdoor

Ruggedized AP in

Reliable and secure coverage in dynamically changing environments

Single device for voice and data applications

like scanning and inventory look-up

Ruggedized AP in NEMA enclosure for

extending coverage into cold storage/freezer

and outdoor locationschanging environments inventory look up and outdoor locations

Reduced network Enhanced Improved


and device costs and complexity

employee productivity

customer service


Contents

Executive Summary





Why IBM & Aruba?



Challenge: Retailers are subject to 12 sections of PCI 2.0 requirements and depending on how they use WLAN, they will subject to the following requirements. How can you address this?

2.1.1: Don’t Use Defaults2.2: Standard Configuration4.1.1: Better Than WEP6 1: Get latest patches6.1: Get latest patches 7.2: Role-based Access10: Monitor Access

1 1 2 I t WLAN 1 1 2 I t WLAN1.1.2: Inventory WLAN1.2.3: Firewall WLAN9.1.3: Physical Security

1.1.2: Inventory WLAN1.2.3: Firewall WLAN9.1.3: Physical Security

11.1: Wireless Scanning/NAC11.1: Wireless Scanning/NAC 11.1: Wireless Scanning/NAC

Category 2N dh ld d t

Category 3C dh ld d t

Category 1 Category 2 Category 3


No cardholder data over WLAN

Cardholder data over WLAN

No WLAN No cardholder data over WLAN



Value Proposition: The IBM and Aruba offering effectively f Caddresses and simplifies PCI compliance

APs can provide both Access and scan for rogue APs/devices

R f i it ith

APs can provide both Access and scan for

Re-enforcing security with dedicated APs for scanning (Air monitors)

Role-based access Access Points (APs) for

scanning for rogue APs/devices

All activity is logged by

ccess a d sca orogue APs/devices

Built in Firewall


o e based accesscontrol

Built in Firewall


Category 3C dh ld d t

Category 1 Category 2 Category 3

All activity is logged by AirWave

y gg yAirWave

y gg yAirWave



No WLAN No cardholder data over WLAN



Challenge: How can you better secure staff, assets, and inventory?

Wireless Video Surveillance

Like the information kiosks, cameras are typically hardwired, but loss prevention managers would like to be

able to redeploy to target specific areas of the store rather than simply add cameras. Also, these cameras are being used to analyze traffic patterns to optimize store layouts, and the ability to move the cameras to

conduct specific traffic pattern audits would be beneficial. These requirements will dictate that camera connectivity become increasingly wireless and will mean huge payload increases to the wireless network.

”With the increased capacity of 802.11n, enterprises should use wireless by default for more flexibility in

Source: June 2011, IDC Retail Insights #GRI229077

IDC, 2011

should use wireless by default for more flexibility in camera placement and lower cost of implementation. Wiring each camera should be the exception, except for

when camera placement is next to the wired infrastructure that is existing or has been installed to

support the wireless network.”


Gartner Group, 2010Source: Key Considerations for Implementing Video Surveillance to Avoid a Blank Screen : Gartner Group, May 17th, 2010Source: IDC Retail Insights

European Survey 2010


Value Propostion: The IBM and Aruba solution enable a flexible ff

M hPoE

video surveillance solution to secure staff, inventory and assets

MeshPoE

802.11

Wired + Wireless

Indoor Video Camera

Wireless Video Camera

Outdoor Video Camera

PoE

Benefits with IBM and Aruba MOVE Solution

Camera Camera Camera

Common infrastructure for mobility and video surveillance Wired like video performance over mesh and Wi-Fi I d fl ibilit d d d bli t


Increased flexibility and reduced cabling costs


Contents

Executive Summary





Why IBM & Aruba?



IBM & Aruba solutions for retail can offer significant TCO Savings

Saved $5,000 per store over 3 years by

Note: These examples are Aruba public references and NOT IBM References

switching from expensive MPLS to broadband connectivity and Aruba WLAN solution

Saving $2,000 per store by using Aruba I t t i t l t ll l tiInstant virtual-controller solution

Lowered TCO 50%+ by leveraging same network for inventory management, mobile CRM/POS and guest access


mobile CRM/POS and guest access


Contents

Executive Summary





Why IBM & Aruba?



IBM’s mobility and wireless services are structured around six key areas to help optimize mobile and wireless communications within a retail environment

Wireless campus infrastructure and mobile connectivity

IBM Enterprise Mobility Services

can provide a full lifecycle of project

Wireless communication and collaboration

Remote network management

y p jdeployment: strategy,

assess, design, integrate, deploy and

maintain Near real-time location services

Wireless network security

Event-driven, near real-time notification



We can help you throughout the full lifecycle of secure mobility and fwireless services, from strategy through ongoing management

Management

Services lifecycle phases:

Strategy andt

Architectured d i

Integration and d l t g

Client environment

assessment

Data collection

Architecture

and design

Solution build

Pilot

deployment

Help desk

Self enablement Strategy

Assessment

Solution

Architecture and conceptual design

Specified design

Pilot

Deployment

Self enablement portal

Asset managementSolution

approach Physical design/implementation planning

Maintenance

Wireless remote network management


management


IBM has a comprehensive retail solution offering through the Retail fIndustry Framework, to support the imperatives of smarter retailers

Customer InsightConsistent Customer Information Retail Data Warehouse

Social Retailing and AnalyticsCampaign Design, Execution, and Analysis

Store and Channels Planning and P f

Retail Data WarehousePCI Compliance and Security Management

PerformanceRetail Store Integration and Management

POS and Self ServiceLoss Prevention

On-line Customer Experience and SellingCross-channel Integration, Order

Management and FulfillmentPromotion Planning and Execution

Financial Performance Management and Analytics

Human Capital ManagementEnterprise Asset ManagementEnergy Performance Management

Promotion Planning and Execution

Supply Network PerformanceSupply Network and Inventory Optimization

Vendor On boarding and Maintenance

Integrated Merchandise Planning and AnalyticsVendor On-boarding and Maintenance

Trade Fund ManagementWarehouse and Transportation Management

Product Tracking

yMaster Product Information ManagementProduct Information Process ManagementMarket Basket Analysis

What is it? Portfolio of solutions to business problems

How does it help?E i d i k


Portfolio of solutions to business problems Based on IBM’s experience with clients Reusable implementation patterns of IBM software Retail accelerators and best practices

Experience reduces risk Accelerators speed deployment Industry standards help with integration Framework is a roadmap for change


Aruba offers a comprehensive portfolio to suit a retailer of any size

Mid-Sized StoreSmall Store Large Store

Instant APs Aruba Instant Vi l C ll /MESH

AP-134/135Hi h d i

Outdoor & MeshAP-175Dual Radio

Virtual Controller w/MESH Virtual Controller w/MESH High density

600 Series

NEMA Enclosure

Warehouse3000 Series32-128 APs3-4Gbps Firewall

8 Secure-PortsUSB-WAN, NAS/Print

AP-134/35High reliability

3000 Series32 128 APs

S-3500 Mobile Access SwitchGE/PoERole-based policy

RAPRemote AP

S-3500 Mobile Access SwitchGE/PoERole-based policy S-3500 Mobile Access Switch

GE/PoERole-based Policy

32-128 APs

Data Center/Cloud6000 Series Amigopod AirWave Content Security Service


Role-based Policy Customer Wi-Fi AccessMobile device access control

PCI ComplianceMulti-vendor mgmt.Mobile device mgmt.

URL FilteringAnti-virus/malwareData loss prevention


Contents

Executive Summary





Why IBM & Aruba?



Why IBM for Retail? Deep experience in design and deployment of mobility &

wireless and RFID networks and solutions within the Retail industry

Industry leading expertise in distributed Retail POS and Kiosk Industry leading expertise in distributed Retail POS and Kiosk solutions

Active participation in Retail industry associations gives IBM early exposure to technology standards and industry IT requirementsrequirements

IBM Research conducts cutting-edge retail research that provides transformational capabilities to our clients

Scalable solutions can grow from single store or midsized Scalable solutions can grow from single store or midsized operation to fully integrated corporate Retail and Distribution supply chains

Worldwide Centers of Excellence to support client pilot projects and technology innovationprojects and technology innovation

Delivers strategic and operational resilience and security with its services

Analyst-recognized marketplace leadership in network


Analyst recognized marketplace leadership in network consulting and systems integration

Unparalleled geographic reach—more than 170 countries


Why Aruba for Retail?

Smartphone & Tablet ready infrastructureready infrastructure

User de ice and appRole-based

User, device and app based access policy

Maximizes bandwidth & minimizes interference

NACContentSecurity

Eliminates multiple pieces of equipment



Why IBM and Aruba for Retail?

IBM together with Aruba Networks provides a comprehensive portfolio of WLAN network solutions for the retail industry to support voice, video, and data

IBM and Aruba are leaders in providing the most secure solutions addressing key areas in IBM and Aruba are leaders in providing the most secure solutions, addressing key areas in retail such as PCI compliance

IBM has vast experience in designing and deploying wireless and mobile solutions for public and private organizations and has implemented a number of WLAN solutions worldwideand private organizations and has implemented a number of WLAN solutions worldwide together with Aruba

Aruba solution portfolio is fully integrated into IBM’s Enterprise Mobility service offering enabling the ability to to offer end-to-end integration and development of WLAN g y g pinfrastructure for the retail industry

IBM together with Aruba have a global reach – IBM sales and support operations in 160+ countries – consultants and professionals worldwide


IBM Aruba for Retail April 2012.ppt · IBM Global Technology Services Executive summary To survive...

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