The Impact of Modern Identity Management Systems on Retail Industry

1. Retail Industry Impact of Identity Management Presented by Dr. Ali M. Al-Khouri Middle East Retail Forum: Reinventing retail growth in the Middle East 28 – 29 October 2013 | JW Marriot Marquis Hotel | Dubai | UAE. Partners in Building UAE’s Security & Economy www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved Our Vision: Provide an integrated and advanced personal identity management system that contribute to the transformation of the government and the economy and promotes security and global competitiveness of the UAE.

2. Agenda • Introduction • Changing Face of Retailing • Identity Theft • Modern Identity Management Infrastructure • Concluding Remarks www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

4. Introduction • World is metamorphosing! • New economies.. All industries impacted.. • Retail industry is in the throes of out growing the conventional merchandising .. • Paradigm shift in consumer behavior from an analogue to digital has not only affected the mode of sale, but also the marketing modes, and all dimensions around it.. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

5. The Retail and Marketing Transformation • Immense impact of digitalisation Marketing • Human paradox: more time with own selves. • Internet and Mobility: reclusive while being omnipresent on social networks. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

10. Who are my Customers ? Potentially the entire 7.1 Billion population on the earth constitute the customer base. Studies: more retailers are going global to capture a larger share of the $1.4 trillion e-commerce market. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

13. DNA of Your Customer Experience? Attracting and Retaining Customers Colin Shaw customers are driven by a set of emotional values.. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

14. Hierarchy of Emotional Values Pyramid of 4 clusters.. Relationship building Source: Colin Shaw: The DNA of Customer Experience: How Emotions Drive Value www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

15. Hierarchy of Emotional Values Pyramid of 4 clusters.. Relationship building Retailers need to know the customer more closely and more personally Source: Colin Shaw: The DNA of Customer Experience: How Emotions Drive Value www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

16. Do you know your Customer ? Boston Retail Partners Survey 2012 32% North American retailers remain unable to identify their customers www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

18. Risks of Identity Theft Identity fraud rises for 2nd consecutive year - Overall identity fraud incidence rate and total fraud amount by year not knowing customers enough is fraught with risks and prone to frauds www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

19. Data Breach Multifaceted Threat to Retailers .. Increase in Fraud rate among data breach victims outpaces increase in overall fraud rate with 1 in 4 data breach victims suffering identity fraud in 2012. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

20. Tablet ad Smart Devices Security Most susceptible to fraud Tablet Owners more than 80% more likely than all other consumers to become fraud victims - Fraud incidence by ownership of Tech Products www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

21. Chip-N-Pin and Remote Payment Fraud a crime on the rise in 2013 % of fraudulent transactions attributable to channels among merchants accepting specific channels authentication at the POS will help merchants avoid the chargebacks and fees to financial institutions www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

22. Merchants Community General acceptability of fraud, and little done to mitigate it! Attitudes toward fraud by large e-Commerce, and Merchants Inevitablity acceptance: input to defining risk appetite Loss of opportunity: largest sector to loose heavily: small and medium establishments www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

23. Challenges in containing POS and Remote Fraud? Need of fast Checkout at Retail .. Top challenges in controlling international fraud in 2012 & 2013 www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

26. UAE Identity Management Infrastructure Advanced Authentication Capabilities On-Site and Remote secure and trusted transactions. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

27. UAE Identity Management Infrastructure Advanced Authentication Capabilities match-on-card and match-off-card features & it facilitates Validation, Verification and Authentication of an Identity. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

30. What does this translate into? National Validation Gateway ensures that not only are Identification processes made seamless, enhancing service delivery, but also vastly improve business processes leading to strong bottom lines. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

40. Read our recent research from: http://www.emiratesid.gov.ae/ar/media-center/publications.aspx Thank you Dr. Ali M. Al-Khouri Director General | Emirates Identity Authority | UAE www.emiratesid.ae | ali.alkhouri@emiratesid.ae | @DrAliAlKhouri www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved

The Impact of Modern Identity Management Systems on Retail Industry

Professor Dr. Ali M. Al-Khouri

The Impact of Modern Identity Management Systems on Retail Industry