Control Experiences: Transforming to the Era of Conversational Commerce

Control Experiences – Transforming to
the Era of Conversational Commerce
Why and how should retailers and brand
manufacturers collectively redefine
democratized conversational commerce?
Nathan Pearce,
SAP Hybris Engagement Director
Kees Jacobs,
Digital Proposition Lead,
Consumer Products & Retail SAP Hybris Live: Global Summit
Oct 17-19, 2017 | Fira Barcelona Gran Via | Barcelona

Control experiences – Transforming to the Era of Conversational Commerce | Nathan Pearce, Kees Jacobs | October 17-19 | 2017
C opyright © C apgemini 2017. A ll Rights Reserved.
2
Retailer
Range Access Price

3
Brand

The Challenge: Is your Brand
being disintermediated?
4
Source: Rethinking the Value Chain, Capgemini & CGF
If we do not
understand and start to
adopt this fundamentally
different approach, we
will struggle to create
value and secure long
term growth.
Muhtar Kent
Chairman
The Coca-Cola Company
Motoya Okada
President & Group CEO,
AEON Co., Ltd.

5
Remember the
Roman
Empire

Feel shopping is
a chore
40%
60%
60%
In stores:
§ Can´t find
§ No guidance
§ Long queues
25%
Net Promoter
Score (NPS)
Would buy from on-line major players
6

7
Consumers’
shopping
expectations
are on the
rise
of consumers want to
check availability of
product in stores
before visiting
75%
of consumers want
same-day delivery
options from the store
73%
of consumers want
retail stores to evolve
to social spaces or
provide learning or
inspiration
57%
Consumers expect
a similar user
experience from
physical stores as
they find online

Future Consumer
Happiness
Specificity
Convenience
Simplicity
Best Value
Fast
Real-Time
Quality of
Living
8

Industry
trends towards
this promise
Streaming supply
Autonomous retailing
Serviced experiences
Conversational commerce
Frictionless
Stores
Connected
Products
Seamless
Transactions
Last Mile
Collaboration
Personalized
Engagement
Automated
Operations
9
Conversational
Dialogue

10
Conversational
Commerce is the
intersection of
modern; in-life
communication; and
shopping - changing
how companies
interact and transact
with consumers.

11

12
Amazon Echo Product Line
$230
$50
$100
$130
$20
Free with
Amazon
Premium
$200
$130

13
Google Home Product Line
$129
$49

In this context, what is the impact of conversational
commerce?
14
The death of retail
as we know it…
or
… retail’s saviour?
The ultimate
disintermediation
of brands…
or
… a brand’s
greatest
opportunity?

Mark Taylor,
Chief Experience
Officer, Capgemini
Conversational
commerce puts
humanity back into
shopping – it should be
part of your brand’s
curated experience
15

Conversational
Commerce
= speech-
activated
commerce
Where context,
relevance,
humanity and
simplicity come
together
Addressing the
4 A’s of
tomorrow’s
consumption:
anyone, anytime,
anything,
anywhere
16

17
Conversational
Commerce
organizes
‘holistically’
around the needs
of the individual
in their daily
lives

18
Send flowers to
my aunt.
OK. She likes
yellow tulips,
should I send
those?
Yes – thank
you.
You're welcome.
They will be
delivered this
afternoon.
Since 1910
Amazon and BMW Bring Alexa to the Road
BMW Group will integrate Alexa into their vehicles in the U.S, U.K and Germany starting 2018.
Sept. 27, 2017 03.03 PM Eastern Daylight Time

19
Yet, current
practices still
have a lot of
limitations…
But,
we ain’t
seen
nothing yet !
§ One assistant, one device
§ Call and response
§ Mostly static, i.e. sessions aren’t carried over
• No refinement in interaction
§ Tiny, novel applications/skills
§ Lot of variants, skills are separate

We will witness a steep increase in conversational
experiences that will transform consumer behavior
20
Robotic
Dialogue
§ Basic, simple Q&A-based architecture.
§ Limited information sources.
§ Limited integration into enterprise systems.
§ Broad product selection and ordering capabilities from deep integration into enterprise
systems.
§ Self-learning algorithms.
§ Past purchase history. Payment preferences.
§ Fully personalized consumer experience at all touch points—anticipating
what a consumer will want, based on cognitive learning that senses,
thinks, anticipates and remembers on the shopper’s behalf.
§ commerce that is advantageous for the consumers as well as for retailers
and brand manufacturers.
§ a streaming supply chain that anticipates consumer demand and reduces
total cost to get products to the consumer.
§ More complex algorithm, extended data sources.
§ Some enterprise (supply chain) integration.
§ Limited representation of brand tone.
Maturity Level of
Personalised, Human Dialog
Level of
Change/Disruption
in Consumer
behavior
Basic
Personal
Dialogue
Playful
Human
Experience
Genuine
Personal
Assistant

Ambition:
Establish a new
dominant design for
retail and consumer
goods
Solution:
by MIT, Intel,
Capgemini, and major
industry players
Invent the future
collectively
Democratized
Consumer
Commerce
21

22
1. cognitive learning that senses, thinks, anticipates
and remembers on the shopper’s behalf;
2. an open, democratized process, based on
game/auction theory, that enables commerce that
is advantageous for retailer, the brand
manufacturer and the shopper;
3. multi-modality form factor (hardware/devices)
with fluid and secure interfaces;
4. a streaming supply chain that anticipates
consumer demand and reduces total cost to get
products to the consumer;
5. a solution that maximizes the consumer
experience at all touchpoints—anticipating what a
consumer will want beyond iterations of their
current experience; and
6. definition of business math and metrics that will
enable retailers/CPG companies to deliver balanced
business performance.
Solving the big
issues:
six
workstreams

Conversational Commerce requires a new set of capabilities…
23
Other
Interfaces
Conversational
Interface
Digital
Assistant
Service
Cognitive
Analytics
Management
Consumer
Engagement
Management
Commerce
Management
Operations
Management
Consumer Experience People & Process Technology Data

… and requires a flexible learning platform architecture.
24
A flexible architecture providing innovative customer interaction layers seamlessly linked to the fulfilment
capability. This is underpinned by AI to streamline the ordering process and therefore enabling an incredible
user experience.
AI enablementFulfilmentInteraction

Creating opportunities to engage with customers to delight
and to automate
25
Health
advice bot
Food
order bot
Finance
bot
Concierge
bot
Text &
Voice
Commerce
Cards
Converse
Redirect to
Websites
Natural
Language
Multilingual
Face
Recognition
Recommendations

I am travelling to London next week.
What should I wear?
London’s weather forecast is scattered
showers. You should view our brightly
colored jackets here.
Hi Bob. How can I help you?Hi Tom. I am here to help you.
Who is this perfume for?
It is for my wife.
I suggest you to check out our
special occasions range for women.
It is our anniversary.
And what is the occasion?
Can you suggest me a nice perfume?
It is essential that the conversation is seamless. This is enabled by NLP
and AI delivering a next best action approach to engagement.
26

It is essential that the conversation is seamless. This is enabled by NLP
and AI delivering a next best action approach to engagement.
27
Click here to Play

Leveraging data from a variety of sources to provide a personalized
experience to ensure repeat business and advocacy.
28
Hi wosup Google
Hi. Do you remember your wife’s birthday is 5
days from now. I can help you buy her a gift.
Would you like to buy anything?
Thanks for reminding Google. I want to buy a
Gucci Guilty perfume
Gucci Guilty A lovely champagne colored
container with the golden G logo. Gucci introduced
this fragrance in 2010. It is manufactured in
France, and recommended for romantic attire.
Is this what you are looking for?
That’s right! What’s its price?
The price is $55.15. Do you need any more
information about this product or would you like to
place an order?
I am still thinking. How much time will it take
to deliver the order?
Do you want at the current address?
yes
It will take 2 to 3 working days. Do you have
enough information now or do you want any more
details?
That’d be all.
Can I place the order now?
yes
How would you like to pay?
You can use for Google Pay or Cash on Delivery or
your saved card
I want to use my saved card
Your payment is authorized.
Your order has been placed and
the order ID is 123456
Intelligently reminds user of
key dates using profile data
Recommends Product based on the
occasion and shares product information
Based on address stored in the profile and
integration with weather and geo location
services, suggests the tentative delivery time
Places the order after
confirmation from user
Uses the preferred payment method of
the user to make the payment (card
data as part of profile.
Customer is advised of the order ID and the
payment status

Capgemini provides a suite of capabilities to complete the customer
experience (Seamless Commerce and Fast Digital 4)…
29
SAP ERP Central
Component and
SAP S/4HANA
Seamless flow
and exchange
Rapid
deployment
of SAP
Hybris
Commerce
integration

There is an established approach to help you on your journey
to deliver the best customer experience…
30
Innovation
Technology
Strategy
Development
Solution
Design
Minimal Viable Product
Testing & Pilot
Scaling
Up

… leveraging our proven methodology - this is delivered
at pace.
31
Step 2 Step 4 Step 6
Step 7Step 5Step 3Step 1
Step 0
Identifying the
opportunity
Digital Day &
Digital Tour
Use cases
detailed assessment
Proofs of
Concept
Digital
enterprise roadmap
Platform
design & pilots
Platform scale &
business impact
(wave 1)
Platform scale &
business impact
(wave 2)
Explore & Design Experiment & Learn Scale

Getting this right will provide delighted
customers with a personalized experience -
leading to loyalty and advocacy.
32
You’ve got to start with
the customer
experience and work
back toward the
technology – not the
other way around
(Steve Jobs)

33
Conversational Commerce
At your Service !

Control Experiences
Transforming to the era of
Conversational Commerce
Why and How Should Retailers and Brand
Manufacturers collectively redefine
Democratized Conversational Commerce?
§ Kees Jacobs, Capgemini
§ Nathan Pearce, Capgemini Thank you !!

Contact information
35
NATHAN Pearce
SAP Hybris Engagement Director
Kees Jacobs
Digital Proposition Lead,
Consumer Products & Retail

With more than 190,000 people, Capgemini is present in over 40 countries and
celebrates its 50th
Anniversary year in 2017. A global leader in consulting, technology
and outsourcing services, the Group reported 2016 global revenues of EUR 12.5 billion.
Together with its clients, Capgemini creates and delivers business, technology and
digital solutions that fit their needs, enabling them to achieve innovation and
competitiveness. A deeply multicultural organization, Capgemini has developed its own
way of working, the Collaborative Business Experience™, and draws on Rightshore®
, its
worldwide delivery model.
About Capgemini
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