Milestones on the Omni-Channel Journey
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Transcript of Milestones on the Omni-Channel Journey
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Milestones on the Omni-Channel Journey
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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
6 | © 2015 Software AG. All rights reserved.
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
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Plan for the Peak
11 | © 2015 Software AG. All rights reserved.
PLAN FOR THE PEAK
12 | © 2015 Software AG. All rights reserved.
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%
13 | © 2015 Software AG. All rights reserved.
PLAN FOR THE PEAKPOSSIBLE TACTICS
RISKHIGH
COSTHIGH
AND LIMITEDBENEFIT
QUESTIONABLE
LONG
TAKESTOO
Add
additionalhardware
Cross X
fingers
Upgradecommerceplatform
ImplementQueuingSystem
14 | © 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
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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.
17 | © 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
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Maximise Resource Return
21 | © 2015 Software AG. All rights reserved.
MAXIMISE RESOURCE RETURN
“If you cannot measure it,you cannot manage it.”Attributed to Peter Drucker and W. Edwards Deming
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MAXIMISE RESOURCE RETURN
© 2015 Software AG. All rights reserved.
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
http://www.webstrategiesinc.com/articles/online-marketing-reducing-shopping-cart-abandonment-rates
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
23 | © 2015 Software AG. All rights reserved.
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
http://www.webstrategiesinc.com/articles/online-marketing-reducing-shopping-cart-abandonment-rates
Accenture
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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.
© 2015 Software AG. All rights reserved.
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Conduct Your Orchestra
29 | © 2015 Software AG. All rights reserved.
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
30 | © 2015 Software AG. All rights reserved.
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
31 | © 2015 Software AG. All rights reserved.
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
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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.
© 2015 Software AG. All rights reserved.
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34 | © 2015 Software AG. All rights reserved.
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
37 | © 2015 Software AG. All rights reserved.
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
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http://www.softwareag.com/omnichannel