The unique approach to seamless retailingtgcs04.toshibacommerce.com/cs/groups/internet/... · Buy...
Transcript of The unique approach to seamless retailingtgcs04.toshibacommerce.com/cs/groups/internet/... · Buy...
The unique approach to seamless retailing
• The Push and Pull for Omni-Channel
• The Path Forward
• Considerations for Success
The Push and Pull for Omni-Channel
Throughout the world, there is a paradigm shift taking place:
• from Retailer to Consumer
• from Control to Participation
• from Channel to Brand
• and from Transaction to the Order
The Paradigm Shift
Technology: 7 – 10+ years between changes in technology supporting customer interactions
Business: 2 – 4 years between changes in business model and core processes
Consumer: 1.5 – 2.5 years between changes in touch point or interaction platform of choice
4-5 cycles
2.5 cycles
1 cycle
Let’s start by understanding the rapidly evolving needs of your business and consumers
Rapid Pace of Change
Market
Why… does the
consumer shop your
brand in-store or online?
What… do you do
to meet this “why”
and drive value?
How… do you enable
that experience with
technology?
Consumer Business ModelBusiness
Process
User-Facing
Technology
Platform /
Infrastructure
“Why do my target
consumers shop as
they do with the
options,
challenges,
aspirations,
expectations they
have?”
“What do we do to
differentiate
ourselves thus
creating and
capturing value
knowing what we
know about our
market and
consumers?”
“What do we do to
put that model into
practice effectively,
consistently, and
efficiently –
particularly in our
stores?”
“How do we use in-
store touchpoints
aimed at both
consumers and
associates to
support critical
business
processes?”
“How do our
underlying systems
and infrastructure
enable both
existing and
emerging
touchpoints with
speed and
sustainability?”
Consumer Business Technology
Against that backdrop, let’s look at who is in control, what that means for retail, and for technology investments
Why, What and How
Consumer
The Push and Pull
• Let me participate
• Engage with me
• Know who I am
• Treat me the same
across all the ways I
interact
• Give me choice how
and when I engage
• Create a single
source of truth for key
data
• Let me innovate, not
integrate (both cost
money)
• Give me agility to
move more quickly
Technology
27%made their last purchase online. 50% increase over 2012
70%have a smart phone
9 of 10 reasons to shop a retailer involve omni-channel capabilities
69%post a review once per month. 54% post 2-3 reviews per month
64% say reviews are the most important criteria in deciding where to shop
81% expect the same brand experience across all channels
Source: 2013 Institute for Business Value; Global Study of 30,000 consumers
The Consumer Pull
10
Growth Trends through 2025
90%
Smartphone penetration. $100 mobile devices will have 1TB of DRAM.
1 billion
New members of urban consumer class living in cities by 2025.
8.1 billion
Estimated world population in 2025 according to the UN; 60% live in cities.
Crowded…
Consuming…
Connected…
These trends showing no signs of slowing downIn 2025 technology will enable more people
0
No apparent capability
1Poor
2
Minor gaps
3
Expected or superior
Omni-channel leaders
differentiated in:
• flexible fulfillment
• web experience
• call center experience
Retailers are delivering consistent
marketing messages, yet acting
on customer insights still proves
difficult
Largest area in need of
improvement: consistent store
experience and execution
Average = 1.43
The Store Execution Challenge
Source: Toshiba & IBM consumer research; IBM Institute of Business Value 2014
It Matters: 1.23X
Not all customers are created equal. Omni-channel engagement = more money.
Single Channel
Customer
Omni- Channel
Customer
Profitability
=X
Profitability
=1.23X
76% of retailers do not know who their omni-channel customers are
Source: RIS-EKN Customer Engagement Survey, 2014
The Path Forward
Evolutionary vs. Revolutionary
Evolutionary• Shift gradually to start
addressing some high-priority consumer needs
• Focus on critical businessprocesses that are broken or greatest need for reform
• Invest in technology to protect and extend most existing systems
Revolutionary • Move rapidly to create a
consumer-driven business with greater agility to meet consumer expectations
• Re-evaluate businessprocesses, creating best practices and differentiation
• Invest in technology to support new business processes, both today and tomorrow
Evolutionary• Shift gradually to start
addressing some high-priority consumer needs
• Focus on critical businessprocesses that are broken or greatest need for reform
• Invest in technology to protect and extend most existing systems
Evolutionary vs. Revolutionary
Revolutionary • Move rapidly to create a
consumer-driven business with greater agility to meet consumer expectations
• Re-evaluate businessprocesses, creating best practices and differentiation
• Invest in technology to support new business processes, both today and tomorrow
Evolutionary Approach
Single Channel Multi Channel Cross Channel
● Customer experience a
single type of touch point
● Retailers have a single
type of touch point
● Technology was
developed assuming one
touch point
● Customer sees multiple
touch points acting
independently
● Retailers channel
knowledge and operations
exists in technical and
functional silos
● Customer sees multiple
touch points as part of the
same brand
● Retailers can provide cross
channel capabilities but
operates in technical and
functional silos integrated
with each other
Evolutionary Approach
Single Channel Multi Channel Cross Channel Omni Channel
● Customer experience a
single type of touch point
● Retailers have a single
type of touch point
● Technology was
developed assuming one
touch point
● Customer sees multiple
touch points acting
independently
● Retailers channel
knowledge and operations
exists in technical and
functional silos
● Customer sees multiple
touch points as part of the
same brand
● Retailers can provide cross
channel capabilities but
operates in technical and
functional silos integrated
with each other
● Customer experiences a
brand, not a touch point
within a brand
● Retailers leverage their
single view of the customer in
strategic and coordinated
ways
Omni Channel
Evolutionary vs. Revolutionary
Evolutionary• Shift gradually to start
addressing some high-priority consumer needs
• Focus on critical businessprocesses that are broken or greatest need for reform
• Invest in technology to protect and extend most existing systems
Revolutionary • Move rapidly to create a
consumer-driven business with greater agility to meet consumer expectations
• Re-evaluate businessprocesses, creating best practices and differentiation
• Invest in technology to support new business processes, both today and tomorrow
Evolutionary vs. Revolutionary
Evolutionary• Shift gradually to start
addressing some high-priority consumer needs
• Focus on critical businessprocesses that are broken or greatest need for reform
• Invest in technology to protect and extend most existing systems
Revolutionary • Move rapidly to create a
consumer-driven business with greater agility to meet consumer expectations
• Re-evaluate businessprocesses, creating best practices and differentiation
• Invest in technology to support new business processes, both today and tomorrow
Revolutionary Approach
● Customer experiences a
brand, not a touch point
within a brand
● Retailers leverage their
single view of the customer in
strategic and coordinated
ways
Omni Channel
Omni-Channel ScenariosView and act on inventory with visibility across the enterprise
Buy online or in a non-store channel – Return/exchange at the
store
Buy online or in a non-store channel – Modify order at the store
Buy online or in a non-store channel – Pick up at the store
Expanded Store ScenariosView and act on inventory with visibility across other stores
Buy at the store – Pick up at alternate store
Buy at the store – Ship to home
Buy at the store – Ship to multiple addresses
Buy at the store – Mix online purchases with cash & carry
Revolutionary approach,
which sets a foundation
for growth not constrained
by existing design
paradigms – as your
consumer journeys and
Omni-channel strategy
continue to evolve.
Omni-channel ’out of
the box’
Able to orchestrate a
transaction from
management through
fulfillment.
Finally, it is
possible to buy
anywhere, get
anywhere and
return anywhere
Pillars of Revolutionary Approach
OTHER ENTERPRISE SYSTEMS •Single view of customer and data (i.e. inventory); results in greater data consistency and accuracy
• Improved analytics to generate meaningful actions
•Complex order orchestration and fulfillment
•Simplify Enterprise Systems Architecture
•Ultra-scalable deployment
•Optimizing IT Investment - ‘one thing to change, one thing to manage’
•Elevating the Consumer Experience across selling channels
•Redefining a more Agile Retail Store
Pillars of Revolutionary Approach
ORDER MANAGEMENT
STORESWEB CATALOG MOBILE CALL CENTER
Inventory Accuracy – the largest negative impact
for not being omni-channel ready
6.5% Lost Sales
BUSINESS TRANSFORMATION
WEB STORES CATALOG MOBILE CALL CENTER
• Better visibility to your consumers; optimizing IT investment through common data and common services as the foundation
• Enables new and evolving retail store formats and omni-channel capabilities
• Empowers new associate and customer interaction allowing her to shop her way; greater agility as consumers evolve
• Facilitates Omni-channel analytics, enabling cross-sell and upsell, as well as tailoring consumer experiences and targeted marketing
• Minimize enterprise integrations to be managed
• Flexibility in choice of devices (fixed, mobile, hybrid) client options (thin clients, thick clients), and deployment models (store, enterprise/cloud, hybrid)
• Open, secure, scalable
• Intuitive and flexible graphical user interface
VISION ALIGNMENT – CONSUMER
ARCHITECTURE ALIGNMENT – TECHNOLOGY
Pillars of Revolutionary Approach
Evolutionary vs. Revolutionary
Evolutionary• Shift gradually to start
addressing some high-priority consumer needs
• Focus on critical businessprocesses that are broken or greatest need for reform
• Invest in technology to protect and extend most existing systems
Revolutionary • Move rapidly to create a
consumer-driven business with greater agility to meet consumer expectations
• Re-evaluate businessprocesses, creating best practices and differentiation
• Invest in technology to support new business processes, both today and tomorrow
Considerations for Success
There are 4 key areas that will evolve in the new age of retail.
• Store Design & Branding
• Personalization
• Omni-channel Hub & Operations
• Intelligent Store
Supporting this evolution requires a review of a few basic
capabilities that may need strengthening.
• Customer Insights
• Technological Capabilities
• Organizational Re-design
Business Transformation
• Business Strategy
• Business Processes
• Clear Objectives with Governance
• Customer Relationship
• Business intelligence
Omni-channel is a powerful strategy for retailers to improve their customer
experience, sales, loyalty and business performance
Starting point considerations….
Business Transformation
Deploying an Omni-channel strategy
• Work as ONE team
• Think from a CUSTOMER's perspective
• Leverage TECHNOLOGY for the company's benefit
• No company is too BIG or too SMALL
• There is no time like NOW
MOBILE
SOLUTIONS
PROMOTIONS
AND LOYALTY
SYSTEMS
MANAGEMENT POINT OF SALE
APPLICATIONS
PAYMENTS &
SECURITY
OMNI-
CHANNELBUSINESS
ANALYTICS
PRINTERS
POINT-OF-SALE SELF-
SERVICE
SOLUTIONS
MOBILE
TOUCH
DISPLAY
POS / KIOSK
MANAGED SERVICESCONSULTING SERVICES CLIENT SERVICESPROFESSIONAL
SERVICES
Services & Solutions
Retail Hardware Systems Retail Commerce Software
To provide a flexible commerce platform designed to allow Toshiba’s clients and business
partners to add and extend the value of Toshiba Retail technology. One that is comprised
of a set of tools, capabilities and services that allow for the delivery of more efficient and
agile commerce solutions in today’s dynamic, fast paced retail environment.
DO MORE GO FASTER
Grow at your own pace Extend beyond your boundaries Lead with your consumers
The Retail Store Reimaged – Evolutionary
LINK
A more flexible client for a more flexible business
• Flexible to run on various devices and screen sizes
• Modern and configurable graphical user interface to change layout, “look and
feel”, button sizes, placement
• Easily extensible to meet retailers’ unique needs
• Default user interface and usability based on Toshiba design lab research and
insights
• Developed with latest web technologies
• Inherently device, operating system, and browser agnostic
iFrame technology enables on-the-glass
interaction with other web applications, such
as retailers’ eCommerce sites
Device broker supporting retail peripherals
The Retail Store Reimaged – Revolutionary
TCxGravity
Key Take-Aways
• The Push and Pull for Omni-Channel– Omni-channel is about maximizing share of wallet and optimizing your investments
– A lack of omni-channel strategy and capability has a negative impact on profitability
• The Path Forward– A clear understanding of your strategy, risk tolerance, budget is required
– Evolution and revolutionary paths: both have benefits and risks
• Considerations for Success– There is considerable investment by vendors and retailers in this space
– Successful execution requires discipline; constantly assess, learn, adapt
• Next Steps – Start the conversation with Toshiba
“Those who lead the [retail] field strike the right balance between
physical and digital, experience and affordability, and
convenience and quality.”
Source: Fast Company, “The World’s Top 10 Most Innovative Companies in Retail”, February 2014
The World’s Top 10 Most Innovative Companies in Retail