IBM IT Lead Innovation

537 views

Published on

Patrick Medley, Consumer Products and Retail
Industries Leader - Growth Markets Unit,
IBM Global Business Services

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
537
On SlideShare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

IBM IT Lead Innovation

  1. 1. Retail Leadership Summit 2013 - MumbaiIT Lead Innovation © 2013 IBM Corporation
  2. 2. The biggest challenge in Retail today is what’s happening on theother side of the counter. Consumers are becoming Smarter! Instrumented Interconnected Intelligent • Equipped with multiple • To other consumers • Knows products technologies • To trusted information • Has high expectations • Always connected • Knows (and shapes) • To openly-shared • Instantly informed opinions the retailer’s reputation2 © 2013 IBM Corporation
  3. 3. Consumers are increasingly saying that the Future is about ME Know me Serve me Listen to meme Empower3 © 2013 IBM Corporation
  4. 4. Consumers are redefining the shopping experience to fit their unique needs and timeframes 1 Shopping becomes engrained in all aspects of our lives due to Shopping Becomes persistent connectivity and ubiquitous access Omnipresent Consumer touch points continue to proliferate increasing availability 2 Shopping Becomes Deconstructed Consumers can start/stop and switch channels seamlessly New competitors arise; disintermediating consumers from retailers 3 Shopping Becomes Collaborative Retailers engage consumers in retail decisions (e.g. assortment, etc.) Consumer-to-community interactions become commonplace 4 Consumers demand relevancy and personalized service Shopping Becomes Contextual Availability of consumer information combined with real-time analytics enables superior experience 5 Shopping Becomes Real-time Aware Device and communication technology converge Consumer interactions become timely and proactive 6 Physical and digital worlds converge to provide an enhance experience Shopping Becomes Experiential Shopping becomes all about the experience; availability and fulfillment times are greatly reduced4 Source: IBM Global Retail Industry © 2013 IBM Corporation
  5. 5. Connecting with the transitioning consumer requires payingattention to today’s emerging trends The vast majority of shoppers last chose the store, but their next purchase is uncertain – Only half plan on returning to a store – 9% are planning to shop online, 35% are undecided – Resulting in fewer store-owned benefits, e.g. assortment Showrooming is just beginning – Online-only retailers are capturing one-third of showroomers’s purchases – The trend is apparent across gender, age and income brackets – Showrooming is not necessarily intentional Shoppers are willing to put time into building a relationship with retailers, but retailers need to do the heavy lifting – Nearly 9 out of 10 shoppers will spend on average 20 minutes setting up preferences – 55% expect personalized promotions and offers – Retailers bear the responsibility to make the most of the shoppers inputFrom Transactions to Relationships: Connecting With a Transitioning Shopper Global View5 © 2013 IBM Corporation
  6. 6. Although showrooming is a global phenomenon, there is a veryhigh incidence of showrooming in India Canada= 1% UK= 5% Germany= 4% China = 26% France=5% Spain= 5% Italy= 3% US= 7% Japan= 11% Mexico= 2% Brazil= 11% India = 13% Chile= 4% Australia= 2%Source: IBV Retail 2013 From Transactions to Relationships: Connecting with a Transitioning Shopper Study n= 23466 Non-Grocery shoppersFrom Transactions to Relationships: Connecting With a Transitioning Shopper Global View6 © 2013 IBM Corporation
  7. 7. Retailers must rethink and retool their offerings to connectwith the empowered consumer How to use How to How do you your store to embrace provide a tailored its best showrooming? and personalized potential? experience? Infuse digital Make the store experiences into Follow digital footprints aesthetically your store to create richer pleasing and customer portraits inviting Enable processes and technology to Market to shoppers Empower store save the sale as individuals associates to be customer driven Embrace Design for the consumer owned experience, not for the Localize assortment technology within device and optimize stock the shopping experienceFrom Transactions to Relationships: Connecting With a Transitioning Shopper Global View7 © 2013 IBM Corporation
  8. 8. To win today’s demanding consumer, retailers need to ensure information flows seamlessly across the entire business…… with the ability to derive insight to keep ahead of competition and customer’s expectations. SUPPLY CHAIN Product Availability Price/ Assortment Promotions Human Resources MERCHANDISING Call Centers Quality BACK OFFICE KEY IT COMPETENCIES SHOPPING FUNCTIONS CHANNELS Customer Service Indirect Procurement CUSTOMER Finance and EXPERIENCE Accounting Convenience Multichannel Store Experience Information Flow Product Flow Source: IBM, "Shopper advocacy: Building consumer trust in the new economy"8 © 2013 IBM Corporation
  9. 9. Focus on establishing a customer-driven operating model that is agile and highly responsive… Marketing and Merchandising Customer and Product Management Management Shopper interactions Ability to predict the are personalized, Store and needs and wants of Supply enables a shopper to Channels Networks targeted customers in engage on their own order to consistently terms and creates IT Systems Business and develop and deliver excitement and and Operations Finance desired products and Administration motivation for that services while shopper optimizing sales, profits, inventory and asset utilization Retailers build smarter operations through cost efficient management of people, processes and technology, while tightly managing performance and maintaining the ability to rapidly modify processes and infrastructure to capture opportunities9 © 2013 IBM Corporation

×