“Mobile Retailing Blueprint”g pComprehensive Guide for Mobile in Retail
IBM Retail Users Group
May 17, 2011
Complexity made Simple - ARTS
NRFThe world’s largest retail trade association
Complexity made Simple - ARTS
• Association for Retail Technology Standards (ARTS), founded in 1993– The Standards Division of NRF– Members (205) are Retailers and Vendors– International, 38% of members
• The mission of the Association for Retail Technology Standards• The mission of the Association for Retail Technology Standards (ARTS) is to develop best practices, technology standards and educational programs through collaboration and partnerships that will enable retailers, their vendors and suppliers to conductwill enable retailers, their vendors and suppliers to conduct business globally. ARTS standards, products and programs are dedicated to fostering innovation, improving shopper experience, and increasing retailer efficiency.
Complexity made Simple - ARTS
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WHY ARTS ?WHY ARTS ?•Competitive retail excellences demands:p
•IT excellence.
•Never ending business process innovation,
•Rapid adoption of new technologies which constantly change.
•International reach.International reach.
•ARTS provides:
A full range of business support from process analysis through application integration.
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ARTS - Enables IT Performance• Through:
– Standard/baseline ITT’s/RFP’s (7 released to date)– UnifiedPOS Standard for connecting 36 peripherals devices from
multiple manufactures to POS terminals, providing freedom of choice.
– Two Data Models – Operational and Warehouse– ARTS-XML integration schemas (18 released to date)– Innovation and Technology White Papers - SOA, Cloud gy p
Computing, XML, Mobile and coming soon - International POS requirements.
– Business Process Maps
Complexity made Simple - ARTS
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ARTS XML
Mobile Integration KitFuture
SOA Enabled BusinessProcessModel
Unified POS
OPOS /POS for Unified
SOA Blueprint for Retail
Mobile Retailing
Cloud Computing in RetailWIP
ItemMaintenance
POSlogComparison
ShoppingEngine
StoredValue
DigitalReceipt
Productectu
re
Integration Kit.Net/
JavaPOSPOS V1
WS-POSXMLPOS
RemoteUnifiedPOS V2
Models
Plan
Buy
Why Business Process Modeling
CustomerInventory
ManagementWorker
ManagementTime
Punches
ProductContent
Management
VideoAnalytics
Tax
ficat
ion
Even
t Arc
hite
ProCon(kitchen)
RetailTransaction
Interface
FIM(Traceability)
XML
Bes
t Pra
ctic
es
SOA
Bes
t Pra
ctic
es
RFPs/ITTs
Exception Reporting
Master Data Mgmt
Move
Sell
C C l
Not
if
PaymentPriceRemote
EquipmentMonitoring
POSlogFor
Food Service
Product Lifecycle
Management
EducationData Models
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POSSoftware
PriceOptimize
SigCap& Debit
WarehouseMgmt
Corp Control
HR
CRM
EducationData Models
OperationalData Model
WarehouseData Model Data Model
ARTS XML Standards
SOA &Cloud
PCIKnowledge
UserConference
WorkforceMgmt
BusinessIntelligence
Cloud Computing
Future
BPM Best Practices
ProcessEducation
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The Mobile Revolution
Complexity made Simple - ARTS
Mobile will dramatically Change Retail
• Find a store or product• In store targeted discounts and couponsIn store targeted discounts and coupons• Product information• Negotiate priceNegotiate price• Self Checkout• Payment• Payment
Complexity made Simple - ARTS
M bil i C i Q i klMobile is Coming, QuicklyL t ' bil d t t ffi th ti th i f th• Last year's mobile data traffic was three times the size of the entire global Internet in 2000.
• The top 1 percent of mobile data subscribers generate over 20 percent of mobile data traffic, down from 30 percent 1 year ago.
• In 2010, 3 million tablets were connected to the mobile network, and each tablet generated 5 times more traffic than the average Smartphone.
• There will be 788 million mobile-only Internet users by 2015, growing from 14 million in 2010.
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Mobile Sales are GrowingThe number of online shoppers making a purchase from their phones increased more than five-fold this season (2010) to 11% according to ForeSee Results But significantly more11%, according to ForeSee Results. But significantly more than that, 33% of respondents said they had used their phone to access a retailer's site, many for the purpose of comparing prices or products.
Complexity made Simple - ARTS
NRF and ARTS Mobile Background
• May 2007 - Began researching possible standards• Sept. 2008 – First mobile presentationp p• August 2009 - Launched Mobile Blueprint
Recognized the Revolution
April 2010 - Organized the MRIComplexity made Simple - ARTS
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Initiative Goals• Serve as a resource of key trends
and research• Identify processes that can be
enhanced via mobile technology• Organize meetings and events for
all constituents in the Mobile eco-system Mobilesystem
• Develop working relationships with existing mobile associations
• Encourage adoption of global
Mobile
Marketing
MobileMobileEncourage adoption of global standards surrounding mobile
• Publish educational white papers
Mobile
Operations
Mobile
Commerce
Complexity made Simple - ARTS
Mobile Retailing BlueprintTABLE OF CONTENTS • 175 pages
Covers all mobile devices with
1. Executive Summary2. Introduction
• Covers all mobile devices with focus on mobile phones
• Includes consumer applications as well as employee applications2. Introduction
3. Mobile Marketing4. Mobile Commerce &
Payments
y• Discusses technologies like NFC, smartcards, augmented reality, geo-fencing, location-based servicesPayments
5. Mobile Operations6. Implementation
services• Highlights many applications• Defines processes and terms• Addresses remote and contactless
Strategies7. Terms & Acronyms
payments/tenders• Highlights where ARTS standards apply
Complexity made Simple - ARTS
Free on: www.NRF-ARTS.ORG
Complexity made Simple - ARTS
Complexity made Simple - ARTS
Complexity made Simple - ARTS
30+ Mobile Application Examples
Complexity made Simple - ARTS
HOT Applications• http://www.nearbuysystems.com/
– In store promotions• http://www.groupon.com/
– Regional offers• http://shopkick.com/
– Register for specials
Special In store Networkwww.retailigent.eu
• http://aislebuyer.com/– Mobile POS
Complexity made Simple - ARTS
Success StoriesHow Facebook boosted Macy's online salesHow Facebook boosted Macy s online salesOnline sales at macys.com and bloomingdales.com rose more than 50% in April and 38.3% in the first quarter of 2011, compared to the same periods last year.
Bar codes are helping home gardens growHome Depot and Lowe's have taken bar codes to the garden department, giving smartphone using gardeners the ability to scan tags for detailedgiving smartphone-using gardeners the ability to scan tags for detailed information on the items
Crate and Barrel taps surging Shopkick location appCrate and Barrel has joined Shopkick for a program that rewards users who check in at the housewares and furniture retailer's stores. Shopkick
t it b h l d bl d tl t 1 4 illi
Complexity made Simple - ARTS
reports its user base has nearly doubled recently to 1.4 million
Key tips in the Blueprint
• Create a total enterprise mobile plan.• Understand what your customers want. Needs of y
teenagers are different than seniors.• Start small and grow with success. .• Create a policy for privacy and security.• M-commerce is different than E-commerce,
understanding the differencesunderstanding the differences.• Integrations of mobile applications to existing data is
critical success factor• Mobile must be global, built on standards
Complexity made Simple - ARTS
Key Inhibitors of the Revolution
• NFC chips in phones or alternative• Secure chips in phones or the cloudSecure chips in phones or the cloud• Proven reliability and security• One application works on all platforms (HTML5)One application works on all platforms (HTML5)• Opening networks to customer devices.• Standards to secure customer access to retailer• Standards to secure customer access to retailer
back office data
Complexity made Simple - ARTS
ARTS and Mobile
Mobile IntegrationMobile IntegrationDigital Receipt
Social CommerceSocial CommercePayment and security update
Complexity made Simple - ARTS
MobileMobile
The Transformation of Payment Ecosystemy
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L k t Alt ti P t S l tiLook at Alternative Payments Solutions• Mobile Proximity Payments (NFC) – providers of software and hardware to
facilitate mobile proximity payments which utilize Near Field Communicationsfacilitate mobile proximity payments which utilize Near-Field Communications technology, including wallet applications, approaches for NFC-enabling the mobile phone, and reader technology.– Examples: ViVOtech, Firethorn Holdings, Blaze Mobile, Bling Nation,
• Online Alternative Payments – alternatives to credit and debit cards for making remote payments for electronic commerce, mobile commerce, or electronic bill payment. E-commerce now moving to stores.
E l P P l BillM L t A P t S V lt– Examples: PayPal, BillMeLater, Amazon Payments, Secure Vault Payments, Google Checkout
• Carrier Billing – remote mobile payments approaches that leverage the wireless carrier’s billing infrastructure Carrier billing has traditionally be used as a paymentcarrier s billing infrastructure. Carrier billing has traditionally be used as a payment method for purchase of digital goods in mobile commerce but is also being adapted for purchase of physical goods via mobile commerce.– Examples: Boku, Danal BilltoMobile, Mobillians, Zong
Complexity made Simple - ARTS
If you do not know where you are going… It does not matter what road you take.
• Merchants want 3 things to occur…
1. Fix the payment ecosystem.2. Roadmap for EMV Chip + PIN w/ mobile.2. Roadmap for EMV Chip PIN w/ mobile.3. Elimination of PCI DSS. We continue to throw
money down a PCI drain that is not designed to solve the problem of fraud in the system
Complexity made Simple - ARTS
PCI Executive Council agreed that “…they are not interested in solving the fraudare not interested in solving the fraud
problem, they exist to maintain and promote the PCI standard ”the PCI standard.
Complexity made Simple - ARTS
Complexity made Simple - ARTS
Stop Thinking ”small”
• Retailers, Banks, Cell Phone Carriers, Handset mfgs., Card Brands, & Technology Providers need g gyto work together.
• Stop taking incremental steps and push for an “open & global” EMV standard.
• 7 year plan to move decisively Mobile NFC under EMV.
• If we don’t…beware of governmental intervention.
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The Mobile Wallet
• NFC/EMV Mobile wallet is the end game.C ill d d it• Consumers will demand it.
• It offers convenience:– Debit, Credit, and other alternative payments.
Complexity made Simple - ARTS
Winning with Mobile• Read the Blueprint www.nrf-arts.org.• Mobile must be global, built on standards.Mobile must be global, built on standards.• Adopt ARTS data standards
Complexity made Simple - ARTS
Thank You for Listening
Q & A
www nrf-arts orgwww.nrf arts.org
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