SIG Leader: Bill Boezinger (Walt Disney) Solutions Management … · • Design/Shopping begins...

Copyright © 2016 Oracle and/or its affiliates. All rights reserved. |

SIG Leader: Bill Boezinger (Walt Disney) Solutions Management Team: DJ O’Neil, Justine Shiou, Brad Hill


• Introductions

• Oracle Retail Planning & Optimization Overview

• What’s Coming – v16 Overview

• Questions / Next Steps

Anticipate.Simplify.Inspire Planning & Optimization / Science v16 Update Agenda

Oracle Confidential – Internal/Restricted/Highly Restricted


Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.



Empowered Commerce speaks to both the Retailer and the

Consumer: it simultaneously enables consumers to shop how, when and where they want – and enables retailers to engage

consumers and drive them to desired resolution without sacrificing profits.


Copyright © 2016 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted

Oracle Retail’s Portfolio Breadth Enabling An Empowered Commerce Strategy

Insights & Science

Planning & Optimization

Logistics Product Catalog

Digital Commerce

Stores Plan & Execute By Customer

Fulfillment Channel


Market Trends A Customer Focused Marketplace

Intelligent localization can drive category sales by as

much as 5% *Source: The Category Management Association, The Theory and Practice of Optimizing Assortment and Space - 2014

84% of customers want a more individualized

experience *Source: Oracle ERA I Research – March 2016


82% of C-Level Execs believe the ability to offer a more individualized experience is critical to

staying relevant in today’s market place but just 21% are very well prepared

*Source: Oracle ERA I Research – March 2016


Anticipate.Simplify.Inspire Leverage Data and Science to Drive Sales & Margin

Consumer Inspired & Targeted Planning/Execution Multiple Data Points


Platform for Innovation

Performance Data

Customers Data Market Data

Channel Data

Attributes Transaction Data


Award Winning Science & Innovation Driving Innovation in Multiple Ways


Dedicated Team of Retail Scientists

Fit For Purpose Platforms Integrated Cloud


Apparel & Short Lifecycle Hardlines

Grocery & Long Lifecycle Hardlines

• Frequent range revisions

• Many revisions change a majority of the range

• PLM and product design linked to range planning

• Design/Shopping begins prior to Merch Plan

• Range is constrained by Open to Buy

• Infrequent range reviews

• Most changes swap items or change range size

• Range from a list of offered items

• Range plan often guided by financial or category plan

• Range is often constrained by space


Consumer Inspired Planning Providing Vertical Specific Capabilities


Advanced Clustering / Customer Segmentation

A Modular / Integrated End-to-End Process An Integrated Short-Lifecycle Planning & Optimization Footprint

Merchandise Financial Planning

Plan Financial Objectives

Forecasting

Clearance Optimization

Promotional Planning &

Optimization

Price & Promotion


Assortment Planning

Plan Assortments

Item Planning

Size & Pack Optimization

Macro Space Optimization

Allocation & Replenishment

Allocation

Inventory Planning

= Non SaaS Cloud Offerings

Legend

= SaaS Cloud Offerings

= SaaS Options Coming Soon


Advanced Clustering / Customer Segmentation

A Modular / Integrated End-to-End Process An Integrated Long-Lifecycle Planning & Optimization Footprint

Customer Decision Tree & Demand Transference

Assortment Planning & Optimization

Plan Assortments

Merchandise Financial Plans

Category Planning

Plan Financial & Category Objectives

Forecasting

Macro Space Optimization

Assortment & Space Optimization

Optimize Space

Clearance Optimization

Regular Price Optimization

Promotional Planning &

Optimization

Optimize Price

Item Planning

Inventory Planning / Replenishment Optimization

= Non SaaS Cloud Offerings

Legend

= SaaS Cloud Offerings

= SaaS Option – v16


Inspire to Innovate

Expanding The Ability to Drive Differentiated Value To Your Customers



• Establish & effectively manage sales, margin and inventory plans

• Leverage embedded science & automation to simplify processes while improving accuracy

• Top-down / bottom-up planning

• Plan Locations, Direct Channels and Wholesale & Franchise businesses

• Define pre-season receipt plans & effectively manage in-season Open-to-Buy processes

• Two Accounting Methods: Retail and Cost+

• Plan in multiple currencies and languages

Effective Management of Sales, Margin & Inventory Merchandise Financial Planning Cloud Service



Connecting Planning & Execution Retail Demand Forecasting Cloud Service

• Provides a single integrated forecast to drive the retail enterprise

• Adapt forecasts to correct for out-of-stocks, seasonality, recent trends, and other causal factors

• Simplified forecast management leveraging automation and exception-based process

• Maximizes forecast accuracy o Historical demand estimation o Optimized forecast method selection

• Promotional Forecasting enables the modeling & creation of accurate promotional lifts

• Dedicated methodology and approach to short lifecycle products

• Preset with best practice configurations gained from over 100 implementations



Advanced Science Engine

ASO Assortment &

Space Optimization

RMI Retail

Merchandising Insights

RCI Retail Customer

Insights

Science-Driven Actionable Insights

Assortment Planning & Optimization

Category Planning … Consumer

Engagement

CDT/DT Customer Decision

Trees/Demand Transference

Switching Not Likely

Switching

Highly Likely

Outdoor Enthusiasts

Insulated (8)

Weight: .07

Outdoor Vests

Marmot (6) Weight: .19

The North Face (8)

Weight: .36

Soft Shell (9)

Weight: .23

Fleece (9) Weight:

.15

Patagonia (26)

Weight: .45

MBI Market Basket

Insights

CS Customer

Segmentation

AC Advanced Clustering

SC Store

Clustering

Advanced Science Cloud Services Customer Centric / Purpose-Built SaaS Based Services


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https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj69YnCrNzKAhVT22MKHQamD20QjRwIBw&url=https://www.sage-blog-movingyourbusinessforward.com/blogs/benoit-gruber/customer-centric-organisation-five-things&bvm=bv.113370389,d.cGc&psig=AFQjCNEaM2b1qdclgfcNt_QyUXTErO00UA&ust=1454614746916118

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http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCLfR34jShskCFUPjYwodvK4Adg&url=http://www.dynamic-concepts.nl/en/segmentation/&bvm=bv.106923889,d.cGc&psig=AFQjCNGX--x-WWDHKB7oe4PY2jdSEICLpQ&ust=1447271861459494

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiX2qvfrNzKAhUT8WMKHdYsB8EQjRwIBw&url=https://espin086.wordpress.com/2011/02/27/clustering-to-improve-merchandise-allocation-testing-and-forecasting-an-application-of-the-k-medians-algorithm/&psig=AFQjCNGJNkY7sN3vWh8Spji5bjFknZ1CyA&ust=1454614846161408


• Enable the localization of assortments, targeted pricing and promotions and personalized shopping experiences

Create An Un-biased View of Core Customers Customer Segmentation

• Leverage multiple segmentation approaches

• Identify the key attributes related to each customer segment

• Predict how customer shopping patterns evolve over time

• Key insights - prioritize workload and easily identify the most meaningful attributes for a segment

• Seamlessly integrate with planning & optimization, pricing/promotion and execution solutions



Demographic Segmentation • Age • Income • Gender • Marital Status, etc.

Understanding Your Target Customers

Category Purchase Driven Segmentation

• Average Amount Spent by Category • Purchase Rate by Category • Average Sales Price (i.e. AUR) per

Category

Group Customers Based on Category Purchase Behavior

Customer Purchase Behavior Segmentation

• Purchase Frequency • Average Amount Spent by Customer • Average Basket Size • Promo Spend

Target Customers Based on Trip Frequency & Spend

Enabling Multiple Segmentation Approaches Customer Segmentation



v16 – What’s Coming

Planning & Opt. / Supply Chain / Science



Our strategy is simple, Empower Retailers to deliver the user experience associates expect and consumers demand, with a focus on 5 Key Cornerstones. V16 delivers on the vision to allow retailers to better anticipate demand, simplify their operations, and inspire engagement.

Oracle Retail Strategy Cornerstones



Introducing Assortment Services Providing Assortment Planning & Item Planning Capabilities


• Creation of Localized, Customer Targeted Assortments

• Cluster Locations Based on Performance & Store Attributes

• Reconciliation w/ Upstream Merchandise Financial Plans

• Plan in Multiple Currencies & Languages

• Streamlined Processes Enabled Through Embedded Science & Automation

• Manage by Exception

Cloud First


APO GHL – CS: • Assortment Analysis w/ Market Item perspective • Create and manage customer centric and targeted

assortments at the national, cluster, vendor/brand, store level

• Leverage multiple inputs / assortment constraints in the assortment creation process o Performance, Attributes, Loyalty, Market Importance as well as

Basket information

• Incorporate Customer Decision Trees to improve customer satisfaction while improving overall performance

• Leverage Advanced Science Cloud Services

o ’Out of the Box’ Integration available for Advanced Clustering, Customer Decision Tree & Demand Transference Science as well as Assortment & Space Optimization

IP – CS: • Hindsight Analysis • Pre-Season / In-season Sales, Margin & Inventory Planning

with upstream reconciliation • Lifecycle Curves

o Absolute & relative curves with visibility to final shape prior to approval

• Promotion & Markdown Planning o Common promotion and markdown libraries

o Elasticity-based approach (optional)

o What-if simulation and approval

o Simple markdown optimization for decision support

• Exception Management o Prioritized and targeted exceptions

Assortment Services Solution Capabilities


Cloud First


In-Season Item Planning Real Time Alerts Exception Based Planning


Alert Type Examples Include:

• Immediate Need

• Lead Time Future Need

• WOS Overage

• On Order Reconciliation

• > Target Sell Through %


Tightly Integrated Assortment & Item Plans Enabling Consistent Decision Making


Shared Services Attribute Maintenance

New Item Placeholders Creation Planning Calendar Definitions

Multi-currency Rate Definitions Location Clustering

Assortment Planning & Optimization Performance, consumer & market data analysis

Strategic assortment planning @ Cluster Localized assortment planning @ Store

Integrated in-season assortment feedback Science & optimization enabled

Item Planning Pre-season, assortment-driven planning @ Cluster

In-season, exception-driven planning @ Cluster Localized planning @ Store

In-season assortment keep / add / drop Basic price and promotion planning

Shared Services Extended Across Planning Assets

Cloud First


Creation of An End-to-End Plan Driving Pre-season & In-Season Assortment Planning Capabilities


Advanced Clustering Cloud Service

SaaS Offering

CDT / DT Science Cloud Service

SaaS Offering

Assortment & Space Opt. Cloud Service

SaaS Offering

Merchandise Financial Planning Cloud Service

SaaS Offering

Assortment Planning & Opt GHL Cloud Service

SaaS Offering

Item Planning Cloud Service SaaS Offering

Retail Demand Forecasting Cloud Service

SaaS Offering

Plan Financial Objectives

Create Assortment

Generate Integrated Forecast

Science-Based Optimization

Legend = v16 Release

= Available Now

Hardware / Software

Better Together


Configurable Cloud Based Offerings Merchandise Financial Planning & Assortment Planning Focused

Tailored solution delivered by Oracle Retail solution integrators on the Oracle Cloud using the available toolkits tailored towards financial planning and/or assortment planning processes

Confidential – Oracle Internal/Restricted/Highly Restricted

Industry Leading Platform Oracle Partners

Cloud First


Template Focused Offerings – SaaS

Configuration Focused Offerings - SaaS • Industry Leading Platform

• Open Configuration – Create Distinct / Bespoke Processes

• ‘Lift and Shift’ – Migration to the Cloud

• Oracle Drives Platform Upgrades – Customer Has Latest Platform Capabilities

• Customer / SI Owns Configuration

• Best Practice Templates w/ Industry Leading Platform

• Configuration Allowances

• Oracle Drives Platform Upgrades – Customer Always Has Latest Platform Capabilities

• Oracle Drives Template Focused Updates – Customer Evolves w/ Process


So What’s The Difference? Offering Choice

Cloud First


Certification of the Android Mobile OS Mobile Everywhere


Mobile Everywhere

Mobile Everywhere


‘On-the-Fly’ Dynamic Hierarchy Updates Leverage Tech/Scale


Leverage Tech/Scale Leverage

Tech/Scale

Improving User Experience Through the Real-Time Update of Dynamic Hierarchies


Other Areas of Focus v16 Enhancements

Copy/Paste Improvements (Ctrl+C / Ctrl+V)

Group Level Default Access Rights

Continued Enrichment in Near Real-Time Integration


Leverage Tech/Scale Leverage

Tech/Scale


Customer Segmentation Integration Science Driven Results Enriching Your Downstream Actions


‘Out of the Box’ Integration of Customer Segmentation Specific Output From Advanced Clustering Cloud Service


Advanced Science Cloud Services Cumulative Enhancements Since v15.0

• Forecast Based Clustering o Performance based clustering not only on history

but also using forecasts

• Integration with Customer Engagement o Segment and segment attributes are sent

downstream to customer engagement

• Configuration UI

• Tech Stack Upgrades

Anticipate

Simplify

• Customer Segmentation Improvements

• Image Support - Assortment & Space Opt.

• Usability and Performance Improvements

Inspire • Store Clustering ODM Support

o Improved algorithm for numeric and discrete attributes

• Assortment and Space Optimization Product Family Groupings o Enhances existing blocking and sorting rules

• Attribute Mining Functionality



Exception-Based ’Smart Starting Points’


Web Based UI w/ Machine Learning Driven Performance In Middle Tier

Offering Choice On Premise / Hosted / SaaS Options

Anticipate.Simplify.Inspire Planning & Optimization, Supply Chain & Science

Award Winning Science & Innovation Enabling Machine Learning, Pattern Matching,

Symantec Analysis, Network/Cluster Analysis, etc.

An ‘Empowered Commerce ’ Driven Portfolio

Plan & Execute By Customer Fulfillment Channel

Role Based, Modular E2E Process w/ Real Time Integration


2016 Gartner RAMA Magic Quadrant

*Source: Gartner’s ‘Magic Quadrant for Merchandise Assortment Management Applications’ Report – September 2016

Link: 2016 Magic Quadrant for Merchandise Assortment Management Applications

“Oracle continues its presence in the Leaders quadrant, which indicates that it is still viewed as a

leader…”

Strengths:

• “Offering (Product) Strategy: Oracle is one of the six vendors in this research that provides all functional capabilities, repeating its strong performance from 2015. This leadership is an important consideration for Tier 1 retailers that desire best practices and flexibility of approach.”

• “Market Understanding: Oracle ranked second highest among all vendors, indicating extensive use of user groups, industry participation and use of patents in support of the RAMA market, and it is seen as a leader.”

• “Product or Service: …Oracle achieved the top status among all evaluated retailers for its wide-ranging capabilities, including the number of platforms, architectures and public cloud providers. This reflects its efforts to create a more cohesive cloud strategy.”


http://www.gartner.com/reprints/?id=1-3HKKXAR&ct=160913&st=sb


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SIG Leader: Bill Boezinger (Walt Disney) Solutions Management … · • Design/Shopping begins...

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