State of the Industry Research Series : Mobility in Retail · 7 State of the Industry Research...

37
State of the Industry Research Series : Mobility in Retail www.eknresearch.com EKN is part of the Edgell Family Supporting Sponsors 2014 ®

Transcript of State of the Industry Research Series : Mobility in Retail · 7 State of the Industry Research...

State of the Industry Research Series :

Mobility in Retail

www.eknresearch.com

EKN is part of the Edgell Family

Supporting Sponsors

2014

®

Table of Contents

Executive Summary 3

Mobility in Retail 5

Research Findings 8

Recommendations 21

Retail Honor Board 33

Executive Summary

EKN 4

Consumer, workforce and enterprise mobility are having a transformational impact on retailers’ customer engagement capabilities and business operations. Across the entire value chain of retail business functions

challenge for retailers lies not in justifying the value mobility holds for the enterprise, but in focusing their limited resources on areas of highest impact while at the same time managing massive technology change.

EKN surveyed 150+ retailers (of which 46% were above 1 Billion USD in revenue) to better understand their

• , especially towards enhancing

• Yet, current adoption lags this stated intent and future investments need to be more focused on improving customer engagement and experience.

• The intersection of data analytics and store associate mobility presents the greatest internal opportunity to leverage mobility towards improving customer centricity.

• An inclusive, heterogeneous device and operating system ecosystem presents a technology management challenge for retailers. Challenges range from cost and device management to data security and compliance.

• architecture. and a thin-client computing friendly Service Oriented Architecture. Retailers will walk a tightrope between accelerating such a move against the realities of cost and budget.

how retailers can increase the adoption of mobility across the retail enterprise.

• Retail mobility use cases across a variety of business functions

• Detailed recommendations focused on both tactical and strategic aspects of mobility

Executive Summary

Found from best brand websiteModify logo

http://www.sephora.com/

HOLLY HUNT

State of the Industry Research Series: Mobility in Retail5

Mobility in Retail

EKN 6Mobility in Retail

What is Enterprise Mobility?

Mobility in retail has come of age through the rapid advancement in mobile technologies in terms of comput-ing power, a powerful set of native functionalities (such as GPS, Wi-Fi & Blue Tooth device communications,

adoption. The consumer is so far ahead in her use of mobile technologies; retailers have to play catch-up.

As described above, the applications of mobility in retail are wide and varied. The impact on the enterprise

• -ery of data and insights

• Engage more directly with customers both digitally and physically

• Transform the store. Take commerce outside the store (e.g. Tesco’s shopping wall) and bring en-gagement into the store (e.g. Build-a-Bear’s interactive self-service “kiosks”)

Retailers who are embracing mobility across the organization will also face some key issues related to:

SECURITY & COMPLIANCE

TECHNOLOGY ARCHITECTURE

HETEROGENOUS DEVICE ECOSYSTEM

LIMITED TECHNOLOGY BUDGET

• Lack of standardization

• -verse array of smart devices (Apple iOS, Android, BlackBerry and Windows)

• Costs involved in developing mobile apps

• Cost of procuring and managing devices

• Telecom expenses

• Cost to expand infrastructure

• Less control over personal devices used for work

• Anytime, anywhere access to data on mobile devices (especially personal devices) exposes corporate infor-mation to web-based attacks or malware threats

• when it comes to protecting enterprise assets that run on consumer-grade devices

• Current technology architecture is designed to sup-port PC-era device computing. Mobile devices will re-quire a move to a Service Oriented Architecture that enables thin-client computing

• High rate of technology obsolescence due to shorter technology refresh cycles

• Software inoperability issues

State of the Industry Research Series: Mobility in Retail7

Mobility Technology InfrastructureWhat Mobility “is”

Stakeholders

OutcomesWhat Mobility “Does”

Devices

Consumers

USE CASE

Data

Corporate Executives

Workforce Productivity

USE CASE

Applications

Store Associates / Managers

Customer Engagement

USE CASE

Network

Vendors / Partners

Decision Making

USE CASE

Smart devices and wearables used by the retail workforce and consumers

Expect to use their devices in-store for a faster, smarter shopping experience

Real-time data visibility across business functions

collaboration

Enables contextual alerts and action

Enterprise mobile apps that provide inventory tracking from the time an order is placed to the time it gets shipped out or purchased can expedite

quickly, and increased visibility of sales results by product can help companies to make better decisions about what inventory items are best to keep on hand

-plications that run on such devices

Opportunity to untether store operations from the back-room and to deepen custom-er engagement

-ered from back-room and real-time access to customer information enables sales as-sociates to be more custom-er-facing

Richer store experience for customers through location and context sensitive engagement, promotions and service

With mobile-enabled CRM apps store associates can maintain an up-to-date customer information database and access relevant customer

etc. on their mobile device. Resulting in more time spent

engagement and improved productivity

The network infrastructure that enables wireless connec-tivity and delivery of data and applications to these devices

Opportunity to improve data-sharing and automate contex-tual action through mobility in vendor partnerships

collection, analysis and dis-semination leads to faster decision making and improves productivity

Smartphone apps allow retail-ers to track customers location in store in real-time and analyze consumers’ shopping pattern and in-store activities more

merchandising can help retail-ers benchmark merchandising execution and compliance

The data storage architecture that allows such mobile de-vices to access data securely anytime, anywhere with lim-ited on-device storage

Need to perform work tasks in an increasingly mobile en-vironment

mobility

task allocation

More engaging training and compliance

Dashboard feature attached to an enterprise app allow em-

workers, retail store managers, or salespeople to quickly see the results of the prior day or even real-time results right on their phone and act on them without having to wait until they get to

Mobility in Retail

EKN 8

Research Findings

State of the Industry Research Series: Mobility in Retail9Research Findings

Survey respondent distribution by segment

(Figures are percentage of total respondents)

Survey respondent distribution by annual revenue

(Figures are percentage of total respondents)

Survey respondent distribution by designation

(Figures are percentage of total respondents)

Apparel & Accessories

General Merchandise and Grocery

Specialty Retail

Other

Online

34%

30%

26%

7%3%

CXO

SVP / EVP / VP

Director

Manager

11%

15%

37%

37%

Less than $100 million

$100 million to $499 million

$500 million to $999 million

$1 billion to $4.9 billion

$5 billion and more

13%

25%

12%26%

25%

Source: EKN Mobility in Retail 2014

Source: EKN Mobility in Retail 2014

Source: EKN Mobility in Retail 2014

EKN 10Research Findings

Mobile-enabling the enterprise is a priority for retailers, but current adoption is low.

Top area of improvement in retailers’ current enterprise systems and infrastructure

(Figures are percentage of total respondents)

Key reasons to invest in mobility

(Figures are percentage of total respondents)

Maturity of retailers’ mobility adoption

(Figures are percentage of total respondents)

59%of retailers rated mobile optimization of applications as the topmost area of improvement in their current enterprise

systems and infrastructure

76%

69%

57%

47%

24%

18%

6%

3%

Enhance customer experience

Improve employee productivity

Improve operational e!ciency

E!cient business communication & collaboration

More e!cient workforce management

Reduce cost of operations

Increase employee satisfaction

Any other *

12% 23% 28% 22%15%

0% 20% 40% 60% 80% 100%

Widely implemented Implemented in limited areas In pilot or initial implementation phase

Strategy under evaluation No plans

Source: EKN Consumerization of Retail IT 2013

Source: EKN Mobility in Retail 2014

Source: EKN Mobility in Retail 2014

State of the Industry Research Series: Mobility in Retail11Research Findings

• Enhancing customer experience (76%)retailers’ current adoption and future plans contradict the importance attached to it as the primary

• Improving workforce productivity (69%)enabling employees to be able to use business applications on the go; to use devices they prefer;

However, mobility adoption in retail is in its infancy with only 1 in 10 retailers reporting wide-ranging mobility -

gies. We see mobility adoption in retail as an area of tremendous growth, but the focus in 2014 will be on

subsequently optimized for using on such devices. This is a critical area of attention for retailers as the true

3 in 5 retailers rated mobile optimization of applications as the top area of improvement in their current enterprise system and infrastructure.

EKN 12Research Findings

Maturity of mobility adoption across store operations

(Figures are percentage of total respondents)

In-store mobility adoption dashboard

(Figures are percentage of total respondents)

Business functions that have the greatest positive

impact from enterprise mobility

(Figures are percentage of total respondents)

11% 21% 30% 22% 11% 5%Store Operations

Widely implemented Implemented in limited areas In pilot or initial implementation phase

Strategy under evaluation No plans Not aware

Hardware or tool enablement

Capabilities enablement

7 in 10to provide mobile or tablet

devices to their store associates by 2015

More than

1 in 2have no plans to deliver

competitive pricing information to their store associates

1 in 2have no plans to deliver

personalized recommenda-tions for the customer

8 in 10do not allow store

associates to track and manage order on a mobile

device in-store

62%will have a mobile POS

in place by 2015

45%will o!er endless aisle

in stores by 2015

of retailers rated store operations

mobility

77%

Source: EKN Mobility in Retail 2014

Source: EKN Mobility in Retail 2014

Source: EKN Future of Stores 2013

State of the Industry Research Series: Mobility in Retail13

• Only 1 in 10 reported to have widely implemented mobility across all their stores

• Low adoption of mobile devices (only 25% of retailers provide smart devices to store associates)

Moreover, in terms of the availability of mobile-enabled apps or data for store associates and managers, the

• 54% have no plans to deliver competitive pricing information to their store associates

• 1 in 2 have no plans to deliver personalized recommendations for the customer during an engagement with a store associate

• receiving shipments and tracking and managing orders

• 62% will have a mobile POS in place in the same timeframe

But, there is lack of clarity on where the funds for such aggressive adoption will come from. As retailers de-velop their store mobility strategies and begin implementation, they will need an infusion of capital invest-

1.

Research Findings

1 Future of Stores, 2013, EKN

EKN 14

Retailers are betting on mobile Business Intelligence in order to resolve their challenge of delivering insights in a timely and contextual manner.

Challenges that prevent retailers from leveraging analytics more strategically

(Figures are percentage of total respondents)

Growth in install base of mobile business Intelligence tools, current vs. future

(Figures are percentage of total respondents)

Which mobile business intelligence features do you currently have or plan to deploy?

(Figures are percentage of total respondents)

Research Findings

Delivery of insights to the right resource at the right time

#1Challenge

54%

23%

15%

13%

13%

29%

22%

20%

12%

22%

24%

27%

21%

25%

39%

40%

Basic HTML reports

Interactive (drilldown) reports/dashboards

Interactive data visualization

Custom analytics tools

Currently o!ers Next 12 months Next 12 - 24 months No plans

Current Next 24 months

Interactive business analytics

Current Next 24 months

BI reports or dashboards

20% 75% 40% 85%

Source: EKN Future of Retail Analytics 2013

Source: EKN Future of Retail Analytics 2013

Source: EKN Mobility in Retail 2014

State of the Industry Research Series: Mobility in Retail15

As we established in our Future of Retail Analytics industry benchmark, the biggest challenge preventing re-tailers from leveraging analytics strategically is the delivery of insights to the right resource, at the right time.

• Retailers are gearing up to address this issue over the next 24 months with aggressive investments

-ics.

• experience deteriorates on mobile devices. As a result, it becomes challenging to fully leverage retail

those tools are easy to use and provide a sticky user experience.

• -

and action orientation.

°

°-

frame

Research Findings

EKN 16Research Findings

Adoption of consumer-owned devices reach a tipping point within the enterprise, in-creases the importance of mobility management.

Preference for company provided computing device vs. personal computing device for work

(Figures are percentage of total respondents)

Timeframe for the adoption of ‘Bring-Your-Own-Device (BYOD)’ policy

(Figures are percentage of total respondents)

Adoption of mobile-enabled enterprise apps, current vs. future

(Figures are percentage of total respondents)

53%

47%

60%

40%

PersonalCompany Provided

Tablet Smartphone

Currently o!ers Next 12 months Next 12 - 24 months No plans

41% 13% 17% 30%BYOD Adoption

Currently o!ers

Next 12-24 months No plans

Email 95% 2% 3%

Calendar and contacts 94% 3% 3%

Instant messenger 60% 17% 23%

Document management 26% 35% 40%

CRM / Customer information 22% 49% 29%

Enterprise Resource Planning (ERP) 8% 40% 52%

Source: EKN Consumerization of Retail IT 2013

Source: EKN Mobility in Retail 2014

Source: EKN Mobility in Retail 2014

State of the Industry Research Series: Mobility in Retail17Research Findings

(Rank is based on the average importance calculated for each feature on a scale of 0-5, 5 being the most important)

With more than 40% of employees preferring to use their personal smartphone or tablets for work, retailers

the retailers will allow employees to use their personal devices to perform work-related tasks, up from 41% currently.

Bring-your-own-device (BYOD) policies meet the need of both the organization and its employees to more

• For organizations, it provides an opportunity to reduce capital expenses by letting employees use their own personal devices.

• use the same technology which they are comfortable with and gives them a greater control over work/life balance.

On the one hand, retailers possess aggressive plans to allow employees to use their personal devices for

• Communication and collaboration applications have reached a degree of maturity, with more than

• However, core business applications such as ERP, CRM, document management, etc. are still play-

management.

Enterprise mobility has initially been used for basic collaboration applications that work well on consumer devices. However, as the focus shift towards enabling business applications on personal mobile devices,

is not surprising then that password protection, encryption and security policy administration are the top 3

4.8

4.7

4.5

4.4

4.1

3.8

3.7

3.5

Password protection

Encryption

Central security policy administration

Report wipe

Over the air updates

Self-management portal

Automated management tasks

Telecom expense management

1

2

3

4

5

6

7

8

Source: EKN Mobility in Retail 2014

EKN 18Research Findings

Apple emerges as the preferred platform for mobility in retail.

Apple iOS emerges as the leading choice for the enterprise standard for enterprise mobility, rapidly outpacing

major operating systems.

Security continues to be a major concern for mobile enterprise adoption, and it would appear Apple is

reader for authentication allow enterprise apps to impose a security layer above and beyond the four digit passcode; enterprise single-sign-on (SSO) leverages a standard integration to corporate identity repositories;

handling corporate data appropriately.

Which operating system (OS) do you plan to

make the enterprise standard for enterprise

mobility?

(Figures are percentage of total respondents)

What is the operating system (OS) of the

mobile devices that your store associates

use in store to perform store functions?

(Figures are percentage of total respondents)

42% 47%

17%

12%

6%

3%

15%

3%

2%

1%

Source: EKN Mobility in Retail 2014

State of the Industry Research Series: Mobility in Retail19

Limited technology budgets, security risks and the lack of a holistic mobility strategy impeding mobility adoption.

Key challenges preventing retailers from leveraging enterprise mobility

(Figures are percentage of total respondents)

Please rate your IT department’s spend on Web & Mobile business function

(Figures are percentage of total respondents)

• enterprise mobility

°up as do infrastructure costs. At the same time, retailer can explore areas where mobility can help save some dollars such as replacing full system POS units with mobile devices that store data in the cloud that is far cheaper.

°

2.

° -ties. Leaving too little for critical business applications such as mobile and web, where 50% of retailers state they are underinvesting.

2The New Cost Structure of Retail IT, 2013, EKN

Research Findings

Spend too much Spend just right Spend too little

6% 44% 50%Web & Mobile

54%

47%

44%

37%

27%

27%

24%

15%

13%

Insu!cient IT budget

Data integrity, security risks and compliance issues

Lack of proper enterprise mobility strategy

Inability to evaluate ROI

Insu!cient skills and resources

Fast mobile device release cycles and ever-changingtechnology platforms

Low awareness

Unavailability of software and tools required to manageenterprise mobility

Lack of a robust user acceptance policy

Source: EKN Mobility in Retail 2014

Source: EKN New Cost Structure of Retail IT 2013

EKN 20

° Penalties from customer data breaches and poor data protection can be hard ranging from -

ing increasingly used for work, for shopping, etc., retailers will need to polish their approach towards data security on the mobile. Customer data is not only being made available on mobile

customer data is also captured (such as location).

° Mobile operating systems are being increasingly targeted by advanced malware and viruses, which makes the threat landscape a dynamic and constantly evolving one. When dealing with a variety of devices in various locations, retailers will need the right security in place to protect sensitive corporate data and guard against threats.

• Lack of a proper enterprise mobility strategy is ranked as the third biggest challenge by almost 44% of retailers. Mobility pilots have occurred in isolation, targeted at solving immediate problems or

-ment to approach it with a comprehensive strategy.

Research Findings

State of the Industry Research Series: Mobility in Retail21Research Findings

Merchandising analytics is a key focus for retailers to upgrade technology and capabili-ties.

Analytics maturity and upgrade plans of retailers

(Figures are percentage of total respondents)

Sources of customer data that are integrated into the merchandise planning process

(Figures are percentage of total respondents)

RecommendationsThe mobile revolution in retail is primarily spoken of in terms of its impact on customer engagement both outside and inside the store. While consumer-facing use cases of

management, inventory management and enterprise dashboards.

Enterprise mobility brings with it both typical and unique sets of challenges, ranging

security, privacy, compliance risks. Not all retailers are prepared or willing to develop a comprehensive organization-wide mobility strategy and are looking at a selection of mobility initiatives they consider important at this point in time (BYOD implementation and store mobility).

Our recommendations below are structured based on retailers’ mobility objectives

What is your organization’s focus as relates to enterprise mobility

We want to focus only on BYOD

We are looking at things a bit more holistically and want to build a holistic mobility strategy

Look at only BYOD recommendation

Look at recommendation on building a mobility strategy

Recommendations to look at:

EKN 22Recommendations

Build a BYOD strategy.

• What type of devices and OS versions will they support?

• What solutions will be required to manage these devices?

• How will BYOD impact application architecture and infrastructure?

BYOD Challenges Actions

Device Managementand access the network.

the activation, access, control, security and monitoring of employee devices.

Device OnboardingDeploy a self-service onboarding model that allows automatic validation of user credentials when the

user attempts to register the device on the network.

Device Security

Establish the minimum security baseline that any device must meet to be used on the corporate net-

work, including Wi-Fi security, VPN access and add-on software to protect against malware.

Protect data and prevent loss via data encryption and containerization of corporate data and / or a

storing the data on the device.

Enable visibility of all the devices used by an employee on the corporate network and beyond.

Application Management

Build your Mobile Application Management (MAM) capabilities such as application usage and moni-

toring, enterprise-grade app store functionality, self-service portals for mobile applications on devices,

Limit application complexity and also enable device independent development.

Work on creating usability and design standards for how business applications will be extended to the

mobile form factor.

Use a hybrid approach for application management that includes using native mode (local data on

mode (no local data on device, connectivity required, maximum security) for a subset of applications

-

work elements to fully support the desired mobile feature set.

Design and operate WLAN that has high availability, performance monitoring and mitigation, as well

as seamless roaming.

Limit the number of allowed devices per user.

Cost Managementtime, monthly, yearly) and eligibility (based on role).

State of the Industry Research Series: Mobility in Retail23Recommendations

Establish if, why and where you need mobility in the enterprise.

Objectives Actions

Prioritize which business

through mobility

• Store operations

• Sales & Marketing

• Supply chain

• Merchandising

• Procurement / Sourcing

• Human resources

• Corporate

-

cations you want develop and

deliver on mobile devices

• Business collaboration apps

• Enterprise apps

Budget • Do you have a dedicated budget to support enterprise-wide mobility strategy or are mo-

Ownership • Determine who is responsible for driving your organization’s mobility strategy

Sr. Executives Store Associates Merchandiser

User

Mobility requirements Low High Low

Demand for BYOD High Medium Low

Need to collaborate easily High High High

Devices Number of devices currently used High Medium Low

Applications

High Low Low

Use of business applications Low High High

Use of collaboration applications Medium-Low Medium Medium

High Low Medium

Need to have good connectivity High High Medium

Need for large amount of personal storage Medium Low Medium

Deployment Scale required to deploy technology Low High Low

Security Risk of security breach High Low Medium

Cost Cost of implementing BYOD Low High Low

High Medium High

EKN 24Recommendations

an impact.

for mobility in the next 12-24 months. Maturity of implementation implies level of adoption of mobility for a

Store operations

Maturity of Implementation High

High

Low

Impa

ct o

f Mob

ility

Sales and Marketing

Corporate

Supply chain

MerchandisingHuman

resourcesProcurement/

Sourcing

Business Intelligence Apps

O!ce Productivity

Apps

Core Business Apps

Business functions Business applications

State of the Industry Research Series: Mobility in Retail25Recommendations

Priority Business Functions Use Cases Tool Set Impact

Store Operations

Mobile devices

Wi-Fi connectivity

pricing and product

information apps

Bar code scanner

Mobile POS

Game-based mobile

learning tools

New technologies

sensors, ambient

noise)

Mobile workforce

management

Better customer engagement

Scan a shelf tag on an empty shelf to determine if in-ventory is available and where it is located

Better Product availability

Rapid replenishment of shelves

-curacy

Scan items in the shopping basket and complete check-out anywhere in the store

Line busting

Mobile-enabled planogram delivered on store associ-ates’ mobile devices

Better shelf-space utilization

Mobile-enabled labor scheduling, time and attendance management apps to assign priority tasks, send alert on pending task that just became priority and track completion remotely

Collect data about a customer and update it to a cen-tralized location (the cloud or to a connected back-

apps

Up-to-date customer information database

Personalized shopping assistance

-ucts, business processes, policies, etc.

Reduce cost of training

Consistency of content shared across organization

Mobile Business

Track business results daily or in real-time via dash-board feature attached to an enterprise app

Mobile-enabled dash-

boards and reports

-

tion tools

Access to databases

Ability to act on insights

actionFaster decision making

Touch-optimized grids, graphs, data visualizations, data exploration allow sorting and drilling down into many underlying levels of data

Data-driven decision making

EKN 26Recommendations

Mobility has changed consumer behavior and it is changing the retail store. The layout, checkout process, store infrastructure, product displays, associate interaction and associate technology are experiencing a revolution as stores become more mobile-enabled. Retailers’ investment plans reveal a strong focus on

-

°digital content such as recipe videos and store navigation based on layout.

°

°

°wishlist, web and mobile shopping cart.

°boxes, electronic and mobile receipts.

Priority Business Functions Use Cases Tool Set Impact

Sales & Marketing

Ability to view the customer’s patterns, history and habits instantly to identify personal preferences, make

-sistance

Mobile applications

(e.g., CRM/SFA/clien-

teling) deployed and

managed via enter-

prise app store

Mobile website

Mobile marketing

apps

Deeper customer engagement

More cross-sell and up-sell opportunities

Ability to smoothly manage all cross-channel marketing campaigns from a single platform

management

the marketing database

Ability to monitor campaigns by analyzing real-time Better execution of promotions

Ability to track day-to-day sales activities across stores

products

and communication goalsEnhance customer loyalty

State of the Industry Research Series: Mobility in Retail27

°prices, in-store discount coupons, etc. in retailer’s native mobile app and mobile website.

° Operational tasks such as receiving products, printing bar codes, looking up prices, product availability, online order lookup.

° Meaningful engagement with the customer by providing sales associates with customer pro-

• -

display.

(devices, tools, applications) as well as emerging focus areas

Recommendations

Tools/Functionalities Current StateFuture State (to be deployed by 2015)

Mobille Tools deployed in-store

Smart devices for sales associates

Free Wi-Fi for customers

Mobile Point-of-Sale (POS)

Self-checkout units

Endless aisle

Mobile charging stations

Associate-

facing mobile

applications

Use of QR codes

Get details of competitive prices

Price matching with online retailers

Lockup cross-channel pricing

Track and manage inventory across channels

Digital receipts

Exclusive store-only mobile coupons

Track and manage orders

Get personalized recommendations for customers

Maximum Adoption Limited AdoptionMedium Adoption

Source: EKN Future of Stores 2013

EKN 28

Retailers who are changing the way stores operate through technology

Recommendations

Hointer allows a customer to scan QR

codes placed on each item of cloth-

ing to build a virtual cart in Hointer’s

mobile app. When a shopper is ready

-

dicate the same within the app and

is directed to one of Hointer’s private

stalls where the items from the virtual

cart have already been delivered via

an automated picking system. The

customer can purchase the item,

-

ing a credit/debit card on the tablet

kiosk’s attached card reader. The re-

tailer also tracks real-time shoppers’

activity in the store and permits cus-

tomers to rate the apparel on their

smartphone.

Recently deployed its location and

proximity detection technology

(iBeacons) in its 254 US retail stores.

such as deals and discounts, news

on what’s happening in the store that

day, info about your iPhone’s upg-

radability, etc. to an iDevice’s Apple

Store app.

-

ionLike across its stores in Brazil.

Whenever someone likes an item on

C&A Brazil’s online store, a thumbs-

up is tallied on a screen embedded in

clothes hangers on the store’s physi-

-

are unsure of one item, they can see

how many people online think the

product is a good buy.

State of the Industry Research Series: Mobility in Retail29

Assess and optimize your enterprise technology architecture to support and drive mobility.

Drivers Technology and Architecture Impact

Consumer expectations of a seam-

less retail experience

Need for tighter cross-channel integration means a deeper integration of business applica-

tions, close to real-time synchronization and a faster response time for applications.

security and privacyStronger security standards and credential based access.

Wide variety of and rapid changes

to technology platforms (e.g. mobile

operating systems)

-

vice Oriented Architecture (SOA).

Move towards data democratization

feudalistic access to data to allowing

access to data and analytics to

the broader enterprise and stake-

holders

increased data collaboration and augmentation by employees, business partners, vendors,

and even customers.

Extensibility and scalabilityAllow applications to be extended across the enterprise and also beyond private enterprise

networks.

Dependence on network availability

Re-imagine the enterprise network as being a high availability, high bandwidth and primar-

Thin client computing devices

Smartphones, tablets and netbooks have limited processing power compared to PC devices.

More enterprise applications need to be enabled on technologies that deliver an optimized

interaction with thin clients by relying on server/cloud side computing and virtualization.

Data, application and services port-

ability

With smartphones and tablets enabling employees to achieve more while working remote-

ly, more enterprise data, applications and services need to be made available in a secure

and reliable manner. Enterprise cloud storage, Software-as-a-Service deployment of enter-

Self-correcting systems - Constant

measurement and tracking to reduce

impact of system failure and security

breaches

Use of advanced analytics to generate exception based reports that cover system health,

security breaches and business user policy violations.

Recommendations

EKN 30

Augment mobility skills through resourcing and training.

changes that are often challenging. The lack of in-house mobile development talent and skills can become a major bottleneck to implementing mobility initiatives.

Retailers must take the following steps to ensure they are better prepared in terms of taking maximum ad-

Recommendations

Identify skill gaps in areas including:

Introduce structural changes to support mobility strategy

Mobile optimization of business apps

Bridge the skill gap through training

issues

State of the Industry Research Series: Mobility in Retail31

Build a comprehensive security and compliance policy for enterprise mobility.

Data integrity, security risks and compliance issues are the biggest mobility related challenges retailers face. -

cated access).

Security Areas Policies and Controls

Devices

• Centralized device monitoring

• User and device authentication

• Ability to remotely disable and re-provision software

• Published security policies which incorporate full lifecycle of all compliant mobile devices

• Ability to remote wipe and lock

Data and Privacy

• Tailored access to data based on the level of risk of the access request and the sensitivity of infor-

mation being accessed

• Published standards for capture, storage and use of data

• -

dors, customers)

• End-to-end encryption of data

• Use of tokenization and other best practices in storing and accessing data

• Data loss prevention

Applications

• Ability to restrict access to applications, modules, screens and functions based on user creden-

tials (internal users, partners, customers)

• Published guidelines for how to extend internal applications to customers and across devices

• Ability to log activity on applications

• Use of Whitelist/Blacklists for applications

• Containerization solutions for accessing enterprise applications

Network

• Policies for private, personal networks

• Automated system alerts based on security breaches and user policy violations

• Develop security breach and threat scenarios and codify responses to those

• Security drills

• Push security updates to users before a breach occurs

Recommendations

EKN 32

performance across all functions.

-

Enterprise Mobility Dashboard*

Recommendations

COMPLIANCE

Avg. time spent on shop floor per day(in hrs)

FY 2013

5 6.5

120 270

25% 44%

5% 20%

FY 2014

No. of transactions done over mobilePOS (yearly)

Conversion rate of personalized o!ers

% of sales done on mobile POS

EFFECTIVENESS ADOPTION

COST

Mobility spend as a % of IT budget

FY 2013

9% 14%

40,000 33,000

35 28

5,000 3,000

FY 2014

Average cost to develop a new app ($)

Avg. time to develop a new app (in days)

Total cost per device ($)

Complete compliance to internalpolicies

FY 2013

No No

45% 48%

FY 2014

% of encrypted data sharedacross sources

Avg. no. of mobile devices per employee

FY 2013

1.01 2

25% 40%

2 2

3.5 5

FY 2014

% of mobile workforce

Avg. no. of mobile OS supported

Avg. no. of business applicationsdownloaded by employees (yearly)

50% 75%% of mobile business apps availablethrough enterprise app store

*Numbers presented in the dashboard are illustrative

State of the Industry Research Series: Mobility in Retail33

Retail Honor Board

EKN 34Retail Honor Board

Category Category Action

Rolled-out mobile devices for its store associates to enable them to manage inventory, assist customers, lookup product information and improve check-out speed. These devices operate as mobile POS devices along with inventory lookup, phone and walkie-talkie functionalities. The retailer has also deployed a web-based task management system that distributes store planograms to its 1,500 stores. These initiatives have helped the retailer adjust employee workloads to match changing demand, quickly turnaround inventory and

of employee’s time to 53%).

devices have in-built custom apps that allow managers to handle administra--

check the accuracy of price changes, view sales reports, see product/employee schedules, arrange product transfers between stores, and access corporate

items against billions of transaction records to manage stock levels at its stores.

Training/ Employee

Engagement

-forcement of monthly safety and loss prevention training through a quiz-type game with a chance to win cash rewards. Engagement with the platform took no more than 30-90 seconds each day. Voluntary participation in the program is at 95%, safety incidents and claim counts reduced by 45% and shrinkage reduced by 55%.

BYOD Policy

Found from best brand websiteModify logo

http://www.sephora.com/

Recently (2013) launched a cloud-based platform that allows employees to ac-cess enterprise emails and documents irrespective of where they are working or which devices they are using. Employee are using a mix of work and per-sonal devices in conjunction with each other to edit documents, create presen-tations and perform basic data analysis.

HOLLY HUNT

Rolled-out the BYOD strategy to allow employees securely and reliably access

has also deployed an Enterprise Mobility Management (EMM) solution to se-

apps. The EMM solution helped the company reduce total telecom costs by 5%.

Applications

allow store managers to keep a track of their store’s most important opera-tional and sales metrics. The apps help store managers evaluate store perfor-mance down to individual departments for several time periods, including the previous day, week-to-date and month-to-date. Store managers can also com-pare their store performance against other stores throughout the company.

Allows GUESS employees to receive business-critical information via mobile devices and access dynamic dashboards to track customer buying patterns, sales performance and product information. The users have access to 13 dash-boards that enable executives to view graphs and charts as well as weekly, monthly, and yearly sales at the company or store level. Merchants can see

view inventory or sales on a map; and look at detailed information by style, down to the size level with over four months of history.

Gaurav Pant SVP Research and Principal Analyst [email protected]

Sahir Anand VP Research & Principal Analyst [email protected]

Asheesh Kumar Sr. Analyst [email protected]

Neha Aggarwal Sr. Analyst [email protected]

EKN Research Team

Supporting Sponsors

About KronosKronos® for Retail is the most widely adopted and deployed workforce management solution available. And with over

while providing impeccable customer service to gain market share and increase your brand loyalty. Learn more about www.kronos.com/retail. Kronos: Workforce Innovation That

Works™.

About HPHP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and

infrastructure, HP delivers solutions for customers’ most complex challenges in every region of the world. More http://www.hp.com

About EKNOur research agenda is developed using inputs from the end user community and the end user community exten-sively reviews the research before it is published. This ensures that we inject a healthy dose of pragmatism into the research and recommendations. This includes input of what research topics to pursue, incorporating heavy practi-

For more information, visit www.eknresearch.com

Email us at [email protected]

Copyright © 2014 EKN

EKN is part of the Edgell Family

-ness for a particular purpose. The information and opinions in research reports constitute judgments as at the date

-ment advice and should not be relied upon as such. The information is not a substitute for independent professional advice before making any investment decisions.

®