Make Impactful Real-Time Decisions with Capgemini’s Retail Apps May 15, 2013 – Orlando, FL.

Make Impactful Real-Time Decisions with Capgemini’s Retail Apps

May 15, 2013 – Orlando, FL

2Copyright © Capgemini 2013 – Internal use only. All Rights Reserved

Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013

INTRODUCTIONS

Mike PriceCapgemini, North America

Practice Leader, SAP Business Analytics and Technology

e. [email protected]. +1 (770) 601 6471

Erik de VeerCapgemini, Global Sector Consumer Products & Retail

Global Leader, SAP Retail and Fashion Solutions

e. [email protected]. +31 6 1502 7845 @erikdeveer

mailto:[email protected]




AGENDA

Background and Introductions

Retail Business Challenges

What are Extreme Applications for Retail?

Examples:• Market Basket Analysis• Mark Down Management• Next Best Action, Targeted Promotions

Q&A

Retail Business Challenges



The challenge of combining customer demand, product availability, and margin…to remain competitive



Mega Trends driving Transformation in the Retail Industry…

Increased Urbanization

Aging PopulationIncreasing

Spread of Wealth

Increased Impact of Consumer Technology

Adoption

Increase in Consumer Service Demands

Increased Importance of Health

and Wellbeing

Growing Consumer Concern about Sustainability

Shifting of Economic

Power

Scarcity of Natural

Resources

Increase in Regulatory Pressure

Rapid Adoption of Supply Chain

Technology Capabilities

Impact of Next-Generation Information

Technologies



Marketing paves the way for IT

New customer behaviors require real-time insight

Retail is always on, 24/7

Social and mobile commerce are the new norm

Customers are ‘competitor savvy’ and other offers are just a

click away

Omni-channel requirementsand capabilities (i.e. click/collect)

Data growth and the combination of structured/unstructured data

New heartbeat in category management and merchandising

Personalized offers require dynamic promotions

Maintaining margin and profitability

Digital

BYOD

What are Extreme Applications for Retail?



General product overview

Real Time Sales Analysis / Extreme POS Analysis

Market Basket Analysis

Next Best ActionMarkdown

Management

Extreme Applications for Retail Powered by SAP HANA



How it all comes together: Extreme Applications module interactions

ArticlesMarginTimePOS

ArticlesPrices

InventoryTim/Season

POS

Articles in current basket/ loyalty ID of customer Mr. X

MARKET BASKET

ANALYSIS

MARKDOWNMGMT

NE

XT

BE

ST

AC

TIO

N

Next best promotion for customer Mr X

Next Best Article for

customer Mr X

EX

TR

EM

E P

OS

Buying patterns

Current and past sales trends

Article affinity

analysis

Forecasted stock end of

season

Promotion rules

Optimize combined sales and promotions to increase profitability

Improve markdown strategy to optimize stock and profitability

Improve sales, profitability, and customer loyalty

IN REAL TIME



High-level solution architecture

RetailXtreme

Apps

non-SAP systems

Social Media

Data ServicesNon-SAP data load

UsersPC, Mobile, Tablet

SAP systems

SLTSAP Replication

HANADatabase

SAP BI4BI, Reporting

HTML5Integration to websites

R on HANAStatistics

Sources

Loading

Database & Analytics

BI

Usage

Addresses both SAP and non SAP data sourcesNo constraints with SAP legacy systems: technical neutrality



Extreme Retail Applications - Examples



As a merchandiser, I want to gain insight into

which products are often purchased

together and with which combined margin to help stores with up-selling and cross-

selling

Cross-selling and up-selling by placing products with high affinity together

Optimized promotion management

Affinity analysis based on POS data provides insight in which products are often sold together Margin and sales analysis support optimized promotion planning for associated products

… into actionable results

How to … … turn Terabytes of POS data …

Do you want to grow basket size and overall profitability by identifying products that drive drag-along sales?

Market Basket Analysis



Example of Market Basket Analysis

Belts

437USA

West

01

05

2013

01



As a merchandiser I want to gain insight in which articles will have surplus stock at the end of the season given rates of sale at different prices

Markdowns are planned more efficiently and more profitable

Store inventory data and forecasting algorithms predict surplus quantities at season’s end

Historical sales data provides insight into previous markdown effects

Price elasticity information and margin analysis supports markdown planning

… into actionable resultsHow to …

… turn Terabytes of POS data …

Do you want to ensure your markdown strategies are meeting your financial goals?

Markdown Management



Markdown Management Example

USD

USD

USD

USD

USA West Belts SS13



Customer loyalty number is entered in one of the customer contact channels, e.g. smartphone app, webchannel, store clerk

The customer gets a promotion that fits his or her needs

Based on buying patterns promotion rules are created.

Based on customer loyalty information, a buying pattern is checked against promotion rules to see if there are suitable promotions available

… into actionable results

How to… … turn Terabytes of POS data …

How to make sure you increase your customers’ loyalty so that they continue to buy in your stores rather than at your competitors’?

Next Best Action,Customer-targeted promotion



Make Impactful Real-Time Decisions…

To Help Optimize a Shared Supply Chain- Collaborate Differently, Compete Differently

To Better Engage with Technology-Enabled Consumers- The Consumer in the Driver’s Seat


Presentation Title | Date

THANK YOU!

Mike PriceCapgemini, North America

Practice Leader, SAP Business Analytics and Technology

e. [email protected]. +1 (770) 601 6471

Erik de VeerCapgemini, Global Sector Consumer Products & Retail

Global Leader, SAP Retail and Fashion Solutions

e. [email protected]. +31 6 1502 7845 @erikdeveer



The information contained in this presentation is proprietary.© 2013 Capgemini – Internal use only. All rights reserved.

Rightshore® is a trademark belonging to Capgemini.

www.capgemini.com

About Capgemini

With more than 125,000 people in 44 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2012 global revenues of EUR 10.3 billion.

Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model.

Learn more about us at www.capgemini.com.

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Make Impactful Real-Time Decisions with Capgemini’s Retail Apps May 15, 2013 – Orlando, FL.

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Transcript of Make Impactful Real-Time Decisions with Capgemini’s Retail Apps May 15, 2013 – Orlando, FL.