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IT in Retail Sector IT in Retail Sector Presentation Transcript

  • IT in Retail Sector SP JAIN CENTER OF MANAGEMENT, SINGAPORE
  • Global Retail Industry
  • Top global retailers
    • Source: Ernst & Young research
    • The U.S. retail industry generates $3.8 trillion in retail sales annually…
  • How big is IT retail Software will attract the largest share of the forecast spending by retail companies, growing from $4,581 million in 2001 to $9,330 million in 2006. IT spending in retail to increase with a CAGR of 6-7% from 2004-2010.
  • Top players in IT retail
  • Need for IT in retail
  • Types of retail applications Supply chain systems Enterprise retail systems Store operation systems Warehouse management DC replenishement Sourcing and PLM Transport management RFID Price management Retail planning E-Commerce Initial price optimization Inventory optimization POS Inventory management Workforce management Store-level demand Perishables mgt
  • Current trends
    • Retail Revenue Management
    • Off-shore Software Development
    • Open Source
    • Self Service
    • RFID (Radio Frequency Identification)
  • Point of Sales aka POS
    • Point-of-sale (henceforth referred to as POS) is the primary gateway between a retailer’s information systems and its customers and plays an important role in effective customer interaction and service.
    • POS is where customers today place the value in their shopping experience and its efficiency has been proved to have dramatic effect on sale volumes. So much as, POS has emerged today as a key centre of influence.
  • Segments
    • POS marketplace is dominated by several players and can be predominantly divided into two segments:
      • POS Hardware
      • POS Software
  • Major Players
    • While the POS hardware market continues to be dominated by a few major players like IBM, NCR, Fujitsu.
    • The POS software market remain slightly competitive with no one vendor dominating the market. The likes of IBM, Datavantage, CRS,Fujitsu, Triversity have active presence in this space.
  • Recent Trends
    • Recent addition to the list of POS innovation has been the advent and growing popularity of hand held lane-busting solutions and wireless personal shopping assistants.
    • Lately, market trends in POS software implementation have slightly inclined towards packages and away from proprietary software.
  • IT Solution
  • RFID
    • What is RFID ?
    • Active Tags
    • Can be read from a long-range distance of more than 100 feet.
    • Passive Tags
    • Can only be read from a short-range distance of approximately 5–10 feet.
  • RFID – Level of Application
    • Merchandise for sale (with tags being applied to individual items)
    • Store property (shopping carts, computers, etc.)
    • People (shoppers and employees identified by their RFID-tagged loyalty cards, badges, uniforms, etc)
  • RFID – Benefits
    • Warehouse and distribution productivity
    • Retail and Point-of-Sale productivity
    • Improving customer service
    • Shrinkage reduction
    • Promotional execution improvement
    • Capital Asset tracking and management
  • What is E-Retail ?
    • An e-tailer is a retailer that primarily uses the Internet as a medium for customers to shop for the goods or services provided.
    • Types of e-tailers:
      • Pure Plays e.g., Dell, Amazon.com
      • Bricks and Clicks e.g., Arkatents Outdoor Gear
      • Green Economics Movement.eg. Real Goods, Green Earth Market
    • Amazon continues as the Internet’s largest retailer with 2004 sales of $6.9 billion No. 2 Dell Inc. (2004 web sales of $3.2 billion); No. 3 Office Depot Inc. (2004 web sales of $3.1 billion)
  • E-Retail Growth Statistics
    • E-retail accounted for $172 billion in 2005 sales, or 7.7 percent of overall retail sales
    • e-retail grew $198 billion in 2006, with projections of $228 billion in 2007, $258 billion in 2008 and $288 billion in 2009.
    • By 2010 e-commerce will have accounted for $316 billion in sales, or 13 percent of overall retail sales.
    • Online sales were worth £30.2 billion in 2006 in UK alone.
    • Well over a billion people use the internet, some 17% of the world's population, of which almost a third live in Europe.
  • E-Retailing-State of the Industry
  • Features on E-Retail websites
    • End Use Product Customizations
    • Comparison Shopping
    • Contextual shopping help
    • VoIP
    • Data feeds
    • Podcasts
    • Aggregation mechanisms
  • Future of E-Retail
    • The future will be charecterised by:
    • M-Commerce
    • Inclusivity
    • Normalization
    • Diversification
    • Sophistication
    • Exclusivity
  • The SAP way
    • Solutions
      • SAP Service and Asset Management solution
        • For service sales and marketing, managing SLA’s, tracking warranties and claims, and provide customer self-service over the Web.
        • Franchises - Complete management of physical assets and infrastructure including procurement, installation and start-up.
      • Sales and Operations Planning (SAP xSOP) application
  • The SAP way
      • SAP Zone Optimization
        • Price Optimization Application – high low, everyday low price
        • Promotion Optimization App – To make more informed promotion decisions, forecasting, assess business value
        • Markdown optimization App – exact frequency, timing and depth of market clearance, pricing or markdowns
    • Services
      • SAP Custom Development
  • Oracle Retail – EAP not ERP
    • Retek
    • ProfitLogic – Revenue based optimization
    • 360 Commerce – POS system
    • G-Log – Transport and warehouse mgt
    • Temposoft – Workforce management
    • What Oracle has to offer:
    • Analytics based best-in-class applications
    • Provider of database, middleware and applications
    • BI, fusion reporting and data warehousing
    • Start from anywhere and not from the back office(fin, HR)
  • The Future is Here!
    • Trends signaling the Future
    • Fujitsu inventions for Retail
      • Self-checkout systems, new multimedia displays, electronic shelf-labelling and fraud detection systems
      • U-Scan - the world's most widely used self-checkout system
      • Loss Prevention software
      • Corema - helping retailers to create, deliver and track loyalty programs and targeted offers and promotions
  • The Future is Here!
      • GlobalSTORE - a full-featured software solution for grocery, liquor, fuel and general merchandise channels
      • Retail Directions software - end-to-end POS and retail merchandising management platform for specialty retailers
      • TeamPoS 2000 - an application suite providing the most reliable and cost-effective point of sale solution available today
    • Zebra Technologies - palm-size mobile receipt printer
    • An unattended delivery service
  • Thank You