Retail Technology Change&The Digital CORE

RETAIL TECHNOLOGY CHANGE

& THE DIGITAL CORE

Matt Horwood

CTO

Marks and Spencer

Numbers as - Apr 2015

H F O R C PLANNING A O

PREDICTING THE FUTURE – START WITH THE EASY ONES FIRST!

Customer centric & end user driven technology

Increasingly hostile environments

Ubiquitous connectivity

Continued commoditisation

NOW

CORE TRENDS CONTINUE

Cloud Computing

1 Yr

2 -3 Yr

3 - 5 Yr

Big Data & Analytics

Mobile Devices

Apps Economy

Multi-Social

Groups

Core Trends Continue

• Apps

• Multi-Social Groups

• Big Data & Analytics

• Cloud Computing

• Mobile Devices

TECHNOLOGY IMPACT VIEW-POINT

NOW

Cloud Computing

Personalisation

1 Yr

2 -3 Yr

3 - 5 Yr

1:1 Targeted Marketing

Personalised Offers


Mobile Devices

Apps Economy

Multi-Social

Groups

Personalised Offers &

Personalised Pricing


NOW

Cloud Computing

Personalisation

1 Yr

2 -3 Yr

3 - 5 Yr

Product & Service

Customisation

Product Personalisation


Personalised Offers



Mobile Devices

Apps Economy

Multi-Social

Groups

Product & Service Customisation &



NOW

Cloud Computing

Personalisation

Intelligent

Machines

1 Yr

2 -3 Yr

3 - 5 Yr

Product & Service

Customisation



Personalised Offers



Intelligent Machines /

Cognitive Learning

Mobile Devices

Apps Economy

Multi-Social

Groups


Cognitive Learning


NOW

Cloud Computing

Personalisation

Intelligent

Machines

1 Yr

2 -3 Yr

3 - 5 Yr

Product & Service

Customisation



Personalised Offers



Voice Recognition

Mobile Devices

Smart Assistants

Apps Economy

Voice recognition & smart

assistants Intelligent

Machines / Cognitive Learning

Multi-Social

Groups


NOW

Cloud Computing

Personalisation

Intelligent

Machines

1 Yr

2 -3 Yr

3 - 5 Yr

Product & Service

Customisation



Personalised Offers



Voice Recognition


Cognitive Learning

Mobile Devices

Apps Economy

Multi-Social

Groups

Smart Displays / Smart

Mirrors

Face / Body

recognition

Smart Displays /

Smart Mirrors

Smart Assistants


NOW

Cloud Computing

Connectivity

Internet of

Things

Personalisation

Intelligent

Machines

1 Yr

2 -3 Yr

3 - 5 Yr

RFID Exploitation Customer /

Service

Product & Service

Customisation



Personalised Offers



Voice Recognition


Cognitive Learning

Mobile Devices

RFID Exploitation

Inventory

Apps Economy

Multi-Social

Groups

RFID Face / Body

recognition

Smart Displays /

Smart Mirrors

Smart Assistants


Weara

ble

s

NOW

Cloud Computing

Connectivity

Internet of

Things

Personalisation

Intelligent

Machines

1 Yr

2 -3 Yr

3 - 5 Yr


Service

Product & Service

Customisation



Personalised Offers



Voice Recognition


Cognitive Learning

Mobile Devices

RFID Exploitation

Inventory

Apps Economy

Multi-Social

Groups

Devices, Mobility

Deskto

p

Lapto

p

TV

Mobile

Sm

art

Phone

Table

t

66%

87%

55% 44%

84%

65% 16%

Face / Body

recognition

Smart Displays /

Smart Mirrors

Smart Assistants


NOW

Cloud Computing

Connectivity

Internet of

Things

Personalisation

Intelligent

Machines

1 Yr

2 -3 Yr

3 - 5 Yr


Service

Product & Service

Customisation



Personalised Offers


Wearable Devices


Voice Recognition


Cognitive Learning

Mobile Devices

RFID Exploitation

Inventory

Apps Economy

Multi-Social

Groups

Wearables Face / Body

recognition

Smart Displays /

Smart Mirrors

Smart Assistants


NOW

Cloud Computing

Connectivity

Internet of

Things

Personalisation

Intelligent

Machines

1 Yr

2 -3 Yr

3 - 5 Yr

Connected World


Service

Product & Service

Customisation



Personalised Offers


Wearable Devices


Voice Recognition


Cognitive Learning

Smart Displays /

Smart Mirrors

Mobile Devices

Smart Assistants

RFID Exploitation

Inventory

Mobile Payments

Apps Economy

Multi-Social

Groups

Internet of Things

Cars Payment

Beacons Fridges Home

Face / Body

recognition


NOW

Cloud Computing

Connectivity

Internet of

Things

Personalisation

Intelligent

Machines

1 Yr

2 -3 Yr

3 - 5 Yr

Connected World


Service

Product & Service

Customisation



Personalised Offers


Wearable Devices


Voice Recognition


Cognitive Learning

Mobile Devices

API Economy

RFID Exploitation

Inventory

Mobile Payments

Apps Economy

Multi-Social

Groups

The API Economy

Face / Body

recognition

Smart Displays /

Smart Mirrors

Smart Assistants


NOW

Cloud Computing

Connectivity

Internet of

Things

Personalisation

Intelligent

Machines

1 Yr

2 -3 Yr

3 - 5 Yr

Connected World


Service

Product & Service

Customisation



Personalised Offers


Wearable Devices


Voice Recognition


Cognitive Learning

Augmented Reality

Mobile Devices

API Economy

RFID Exploitation

Inventory

Mobile Payments

Virtual Reality

Apps Economy

Multi-Social

Groups

Augmented and Virtual

Reality

Face / Body

recognition

Smart Displays /

Smart Mirrors

Smart Assistants


NOW

Cloud Computing

Connectivity

Internet of

Things

Personalisation

Intelligent

Machines

1 Yr

2 -3 Yr

3 - 5 Yr

Connected World


Service

Product & Service

Customisation



Personalised Offers


Wearable Devices


Voice Recognition


Cognitive Learning

Augmented Reality

Mobile Devices

Home 3D

Printing

3D Scanning

API Economy

RFID Exploitation

Inventory

Mobile Payments

Virtual Reality

Apps Economy

Multi-Social

Groups

3D Printing and Scanning Face / Body

recognition

Smart Displays /

Smart Mirrors

Smart Assistants


NOW

Cloud Computing

Connectivity

Internet of

Things

Personalisation

Intelligent

Machines

1 Yr

2 -3 Yr

3 - 5 Yr

Self Driving

Vehicles

Connected World


Service

Product & Service

Customisation



Personalised Offers


Wearable Devices


Voice Recognition


Cognitive Learning

Augmented Reality

Mobile Devices

Home 3D

Printing

3D Scanning

API Economy

RFID Exploitation

Inventory

Mobile Payments

Virtual Reality

Apps Economy

Multi-Social

Groups

Self Driving Vehicles Face / Body

recognition

Smart Displays /

Smart Mirrors

Smart Assistants


NOW

Cloud Computing

Connectivity

Internet of

Things

Personalisation

Intelligent

Machines

1 Yr

2 -3 Yr

3 - 5 Yr

Self Driving

Vehicles

Connected World


Service

Product & Service

Customisation



Personalised Offers


Wearable Devices


Voice Recognition


Cognitive Learning

Augmented Reality

Mobile Devices

Home 3D

Printing

3D Scanning

API Economy

RFID Exploitation

Inventory

Mobile Payments

Virtual Reality

Apps Economy

Multi-Social

Groups That’s a lot of

technology

change.

So what?

Face / Body

recognition

Smart Displays /

Smart Mirrors

Smart Assistants


IOT

Intelligent

Machines

Smart

Mirrors

Augmented /

Virtual Reality

Wearables

Hostile

Environments

Customisation

Costs

Decommissioning

Agility

Simplification

Service

API economy

Personalisation

HYBRID IT?

Enterprise

HOW IS M&S PREPARING FOR THE PACE OF CHANGE?

• Establish common technology goals.

• Expand on what capability we have.

• Fill in the gaps on the capabilities we need.

• Remove barriers to innovation.

• Establish the technology skills we need.

• Enable ‘Responsive’ and ‘Considered’

delivery approaches across IT.

The Digital Core

• Big Data & Analytics

• Digital Ready ERP / Expert Systems

• Agile & Software Engineering

• ‘Utility’ Computing

• Mobile First+

• Integration, API’s & Services

+

• Digital Ready Security

• Digital Ready Connectivity

DIGITAL CORE

From

No approach for Big

Data

Visualisation by Excel

No Data Strategy

Big data retention by

luck

Pockets of data

analysis via 3rd parties

No machine learning

To

Big Data platform

embedded in IT

Understandable popular

visualisation tools

Data Strategy Delivered

Data retention by design

and mandated

M&S Owned Data

scientists

Machine Learning

Systems in-place

DATA & ANALYTICS – DELIVERING THE STRATEGY

From

4 Month Release

Cycles

Critical data ‘Locked in’

The ERP data models

Upgrade disruption

Fragile data processing

Functional overlaps

unplanned

High costs to run

To

Releases each Month /

Week via DevOps

API and service adapter

layer to expose data

Critical functionality 24*7

Resilient, self healing

interfaces

Clear roadmap for each

product in M&S

Environment strategy to

support roadmap plans

1010111101

1010000101010101011

10010101010101010101101

DIGITAL READY ERP / EXPERT SYSTEMS – UNLOCKING VALUE

From

95% of engineering in

.Com / Digital stores

‘Product’ roadmap

unique to .Com

DevOps not exploited

across IT

Engineering career

paths unclear

Agile as an option

Engineers v architects

not clear

To

50%+ engineering in

Enterprise IT

‘Product’ roadmap across

IT systems landscape

DevOps tooling, skills

and org for Enterprise IT

Career paths across IT

integrating engineering

Agile as a preference

Engineers & architects as

joint technologists

AGILE & SOFTWARE ENGINEERING – EXPANDING ACROSS IT

From

Infrastructure selected

and created in silos.

Cloud Tolerant

Managed service

mindset

Cost v agility unclear

Costs unmanaged

High cost of platform

change

To

Service Catalogue Private

and Public IAAS & PAAS

Cloud Friendly – Ops,

DevOps Tooling

Self Service & Managed

Service mind-set

Transparent cost model

and lower TCO across IT

Elasticity and

Transportability built in

‘UTILITY’ COMPUTING – TURNING ON THE TAP

To

Package selection

requires mobile / web

BYOD embraced and

encouraged

Mobile and device testing

solutions integrated in IT

Solutions multi-device

aware

Solutions contextually

and device capability

aware

From

Package selection

assumes desktop

BYOD tolerated and

feared

Mobile and device

testing limited

Assumptions of one

device

Mobility = form factor

MOBILE FIRST ‘+’ – BEYOND SCREEN RESIZING

To

Enterprise and Micro

Services & API’s

Always on 24/7

architecture

‘Real-time’ business.

Services over ETL/Batch

Service adapters increase

agility and simplification

Integration factory and

accelerator frameworks

for services and API

From

Some API’s & Services

for .COM

Patching and upgrades

break operation

‘Batch time’ business

Applications integrated

to complex interfaces

Integration, API and

services costs too high

INTEGRATION API’S & SERVICES – OPEN FOR BUSINESS

To

Secure solutions are

everyone's responsibility

Protect the data

Accountability for what is

not to be shared

Risk Management and

Response plan

Connectivity as a

necessity

Digital Collaboration

From

Protecting the

Perimeter

Manage the core

Awareness of what is

being shared

Perfect protection

Connectivity as a cost

Collaboration via

Document

SECURITY AND COMMUNICATION - ENABLING

• Our IT roadmaps and plans for each

business areas are critical.

• But pace of consumer technology will

challenge these before we complete

them.

• Hybrid IT is nothing new, we have to

operate the Now as well the future.

• Establishing ‘Digital Core’ capabilities,

equips M&S with the skills to do both

without fragmentation.

M&S TAKEOUTS

Retail Technology Change&The Digital CORE

Technology

Transcript of Retail Technology Change&The Digital CORE