Innovative solutions to respond better to the smarter consumer


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Innovative solutions to respond better to the smarter consumer

  1. 1. Smarter shopping better Retail Innovative solutions to respond better to the smarter consumer IBM Global Business Services Rob Vos & Jerry Stam
  2. 2. Instrumented + Interconnected + Intelligent = Smarter + + 2
  3. 3. Smarter consumers are changing the retail industry + + Instrumented: Interconnected: Intelligent: They have They use multiple Using all options of instantaneous access to technologies to cross channel retail information about interact with other in every stage of retailers, products and consumers and with the buying process other consumers’ retailers experiences through technology 3
  4. 4. Smarter consumers are using all options of cross channel retailing in every stage of the buying process Awareness Browse & Service & Research Purchase Receive Support Giving customers the ability to shop Choice how they want Ensuring fulfillment of brand promise and Consistency customer expectations Context Providing the right interaction at the right time Community Facilitating a social and emotional connection Continuity Enabling seamless “flows” across touchpoints 4 Source: IBM Global Retail Industry
  5. 5. Overall sales growth will likely be modest , with an ongoing redistribution between the different channels eCommerce growth: Online turnover NL in Bn NL online consumer spending in 2009 has € 7.000 grown by 17% in 2009 to EUR 6.4 Bn € 6.000 Source: Thuiswinkel Markt Monitor 2009-2, Blauw Research € 5.000 Supermarket growth: € 4.000 The NL supermarkets and drugstores are € 3.000 the only retail segments in 2010 to experience sales growth recovery. € 2.000 With the huge price and promotion pressure, combined with the cautious € 1.000 consumer, 2010 sales growth will likely not €0 exceed 1 percent Source: Distrifood 10 maart 2010 5
  6. 6. Smarter consumers require a (mind)shift of retailers Attract and retain Use your data Improve customers pools efficiencies Smarter Smarter merchandising Smarter Shopping & supply chains Operations Experience How can I use What new tools are How to connect, business analytics available for retailers attract and retain to drive my to support store the smarter operations and help operations and consumer? me serve my reduce (labor) costs customer needs without impacting better customers Connectivity Intelligence Tools 6
  7. 7. Smart retailers work on three areas simultaneously Attract and retain customers Using available data Cross-channel retailing Improve responsiveness Social Networking Retailer dashboards Deliver a Create (a) data driven superior customer-centric shopping flexible merchandising experience and supply chain Drive operational excellence Improve efficiencies Harmonize, standardize and automate processes Best-of-Breed add-ons for specific areas 7
  8. 8. Attract and retain consumers: Moosejaw provides innovative community-based multi-channel shopping Interactive, social, community shopping experience Seamless shopping experience across the Web, stores and mobile devices Blogging, group discussion, BENEFITS: and social networking build community • Increased conversions and revenue Customer feedback and • Increased customer loyalty reviews improve products and customer experiences • Increased customer satisfaction 8
  9. 9. Social networking is a growing factor in Retail & CPG in order to get connected with consumers Coca- Coca-Cola: 5 million Facebook fans NL retailers on Twitter Intertoys Sacha shoes Coffee company Starbucks on multiple platforms HEMA Praxis Hunkemoller Potten & Selexyz Pannen 9
  10. 10. Example of “modern” Twitter discussions 10
  11. 11. Business Intelligence is a critical tool to unlock data Promotional Display Buy X get Z for only $1.49! Market basket insights Transactions If A then B from all If C then D customers If E and F then G If H, then H then I Special Offer – This Week Only 10% off on any of these combinations: A + B…G + H…. Offers Transactions from this % $ 1 Gillette razors customer Statement Cardholder since YYYYMM insert % $ 2 L’Oreal shampoo Average transaction value Monthly transaction value 3 13 % $ 3 House brand shampoo Categories purchased % $ 4 House brand hair color Brands purchased 6 12 % $ 5 Colgate toothpaste Descriptive Age % $ 6 Nivea skin care Gender % $ 7 Men’s fragrance Family situation Zip code Statement % $ 8 Woman’s fragrance insert % $ 9 House brand sun care Interactions Web registration ? 12 ? 15 % $ 10 Optician Web visits Customer service contacts % $ 11 Feminine hygiene ? 11 ? 3 Channel preference % $ 12 Online photo service @ % $ 13 Family planning Attitudes Satisfaction scores % $ 14 Pampers diapers Shopper type Eco score % $ 15 House brand diapers 11
  12. 12. Yves Rocher uses business rules to meet business needs with technology Rules-driven business processes Business environment changes trigger response Store merchandising and promotions respond Personalized loyalty and promotion BENEFITS: Business users use rules to optimize store shelves Greater customer loyalty and traffic higher revenue More creative and personalized promotions on rewritable loyalty card 12
  13. 13. Reducing costs & expenses remains critical Cost of Goods Sold as % of Revenue Operating Selling, General & Income Margin Administrative as % of (Profitability) Revenue Depreciation & Amortization as % of Revenue Source: 13
  14. 14. Retailers simplify their systems landscapes SUPPLY CHAIN Product Availability Price/ Assortment Promotions Human Resources MERCHANDISING Call Centers Quality BACK OFFICE KEY SHOPPING CHANNELS IT FUNCTIONS COMPETENCIES Customer Indirect Service Procurement CUSTOMER Finance and EXPERIENCE Accounting Convenience Multichannel Store Experience Information Flow Source: IBM, "Shopper advocacy: Building consumer trust in the new economy" Product Flow 14
  15. 15. Collabaration, standardisation and seamless integration between all parties in the supply chain is key for efficient and effective data management Maximizing customer satisfaction & revenue Customer Customer Service/ Care opportunities Self Service Optimizing the business with right- time information Billing Marketing/Sales Interactions Tools Enrich End to End Master Data Security Hierarchies Authoring Management Operational Financial Planning Search Stewardship Ensuring all systems Back office have consistent & Systems complete information Fraud Avoidance in real time Understanding the choices & planning New Product with accurate Introduction Regulatory information Compliance 15
  16. 16. Add Best-of-Breed modules to your ERP backbone Optimization solutions Sustainability solutions Dynamic eCommerce merchandising Multichannel 16
  17. 17. Smart workforce planning tools deliver hard (proven) benefits A Billion dollar retailer could drive a positive impact of millions of Euro by: Automating labor scheduling and time and attendance processes could save EUR 6.5 million in lost employee productivity Improving planogram compliance by 20 percent could generate EUR10 million in additional sales Ensuring consistent in-store execution of marketing strategy could generate in- EUR 50 million in incremental sales Reducing employee turnover through better labor scheduling could save up to EUR 3 million Improving efficiency of managers in the field − it could save up to EUR 1 million ... I always shop between 5 and 6 on Fridays … Why don´t they have the checkout open … Why isn´t there someone to answer my question 17
  18. 18. Green retailing is just (good) business Reporting Governance Transform Govern, Report & Data management Visibility Actionable Data Transform Automated Monitor/alert system Deliverable Platform Process Executive Dashboards & Analytics Workbench Aggregate, Carbon Emissions Energy Use Asset maintenance Analyze Inventory Smart Grid Interface Paperless Process & Manage Automation programs Demand Management Improve Energy Usage Actionable Data Monetization Alternative source Reduce Emissions Locate High Producing Reduce Emissions Green Procurement Data •Service •Supply •Employee •Facilities & •Data center •Suppliers Sources Providers Chain travel Buildings & IT systems •Transportation •Manufacturing & Logistics operations 18
  19. 19. Tesco & Sainsbury´s store examples Tesco has opened its first eco-store in Tramore, Ireland. The store was built with environmentally friendly construction materials, and technological features to create self-sufficiency for heating and hot water, including solar panels to generate electricity, air retrieval, and recycling materials At the newly opened 'greenest supermarket' of Sainsbury's in Gloucester, the energy for the POS is generated by customers as they drive on kinetic plates on the road at the entrance of the parking garage. 19
  20. 20. Conclusions Use the smarter consumer to develop a busines and ICT roadmap to the future Define the branding and the core competence of your own organisation – How to use you core competence to attract and retain the smarter consumer – How to use the consumer data to built a consumer driven organisation – How to standardise and make effective use of tooling in order to be as efficient as possible 20
  21. 21. Thank you! Rob Vos 06-51227082 Jerry Stam 06-51285639 21
  22. 22. IBM´s offering portfolio brings together IBM cross brand capabilities to deliver retail business solutions • Smarter Planet for Retail – Sets the vision and direction for future capabilities • Business Analytics & Optimization – Infuse intelligence and optimizing our retail capabilities • Next Generation Data Center – New ways to deliver retail capabilities • Growth Markets – Deliver retail solutions tailored to market demand and capabilities Deliver smarter shopping Create smarter merchandising & Build smarter operations experience supply chains IT Infrastructure Next Generation e-Commerce Integrated Merchandise Planning Application Maintenance Retail Offerings Single View of Customer Product Information & Attribute Indirect Procurement Management Store Managed Services Multi-Channel Order Management Core Merchandising CRM/Call Center Kiosk Business Solutions w/SAP/Aldata/Oracle Customer Workbench & Analytics Finance & Administration Integrated Supply Chain Store / Multi Channel Workbench & Workforce Productivity Business Process Management Analytics Energy Performance Management Merchandising Workbench & Analytics Advertising, Marketing & Promotions IT Consolidation & Optimization Supply Chain Workbench & Analytics Customer Call Center IT Productivity Price - Revenue Optimization Store Checkout Enterprise Asset Management Global Sourcing & Product Development Financial Performance Management Retail Foundational SOA STG, SWG & IBM Retail Industry Framework GTS Information Agenda Offerings Merchandising & Product Products& Channels Store & Service Management Management & Security IT Systems & Operations Service Lines Application Management & Deployment Marketing & Customer Business & Finance Supply Chain Management Access and Collaboration Operations New Enterprise Data Center 22
  23. 23. IBM contact details Rob Vos Partner Global Business Services Benelux Retail 06-51227082 / 020-5134254 (secretariaat) Jerry Stam Sr Managing consultant Retail solutions 06-51285639 Jeroen Grootnibbelink Sr Managing consultant Retail eCommerce 06-20855607 Website: 23