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Retail Industry

                                  Enterprise Architecture Review

                                            Wipro Consulting Services
                                                 (Lakshmana Kattula)
                                                            July 2009




© 2009 Wipro Ltd - Confidential
Contents


    •   Retail Industry Business Overview
    •   Trends, Challenges and Changes in Retail
    •   Current State Architecture
    •   Future State Architecture




2                                  © 2009 Wipro Ltd - Confidential
Retail Industry Business Overview




3         © 2009 Wipro Ltd - Confidential
Retail Business Process Model

     Plan            Buy                  Move                         Sell         Corporate

                       Partner
     Merchandize                            Warehouse
                     Relationship                                       Marketing      Finance
      Planning                             Management
                     Management



      Financial     Purchase Order        Transportation
                                                                         Selling          HR
      Planning       Management            Management



                       Product
     Supply Chain                         Replenishment                   Order
                      Lifecycle                                                       Real Estate
       Planning                            & Allocations               Management
                     Management



       Business       Inventory                                          Store
                                             Transfers                                    IT
     Intelligence    Management                                        Operations




                                             Return to
                                                                         Returns
                                              Vendor




4                                    © 2009 Wipro Ltd - Confidential
Retail Business Architecture
               Supply Chain Management                                   Merchandize Management                     Stores Management


         Planning                    Execution                    Planning                        Operations                POS


                                                                                                                      Workforce Mgt
    Supplier Management            Warehouse                Price & Campaign Mgt                 Value Chain
                                   Management                                                   Collaboration
                                                                                                                      Advanced Store
         Sourcing                                               Promotions
                                                                                                                       Technologies
                                  Transportation                                                  Trade Mgt
        Distribution                                            Assortment
                                                                                                  Sales Audit           Gift Registry
                                 Reverse Logistics
      Replenishment                                              Allocations
                                                                                              Invoicing Matching   Back Office Integration
                                Visibility & Tracking
         Inventory                                             Category Mgt                 Merchandising System       Central Office
                                      Logistics
    Purchase Order Mgt
                                                                Item Planning                                          Labels & Tags
                                   Procurement                                              Channel Management
       Foreign Trade
                                 Stores Allocation           Space Optimization                 Physical Store          Mobile POS
    Advanced Planning &
                                                                                                 Online Store
        Scheduling                                Demand Management                                                 Store Inventory Mgt

           CPFR                                                                                Mail & Catalogue
                                                                                                                        Returns Mgt
                    Corporate Management                                     Customer Management
                                                                                                                      Loss Prevention
       Performance Mgt                  Finance                Sales Management                  Analytical CRM

       Real Estate Mgt                     HR                                                                                                  GDS
                                                             Marketing Management                  Call Centre
          Asset Mgt              Business Intelligence                                                                                       Standards
                                                              Customer Support                Customer Loyalty &
            MDM                                                Services & Chum                   Preferences
                                           IT                                                                                                  RFID
                                                                   Analysis
5                                                                     © 2009 Wipro Ltd - Confidential
Trends, Challenges and Changes in
                               Retail




6          © 2009 Wipro Ltd - Confidential
Business Trends, Challenges & Changes
                     •Change in demographics, lifestyles, fashions, purchasing power

     Consumer        •New online shopping channel; social networking
                     •Home meal replacement; Health and wellness
      Behavior       •Ageing population
                     •Time rushed consumers; ease and quickness




                    •New entrants; rise of own labels
    Competitive     •Supremacy of the discount store chains; global power brands

     Landscape      •Slow growth in mature markets
                    •Price deflation




                    •Global supply chains
                    •Growth in emerging markets
    Globalization   •Global customer base
                    •Corporate Social Responsibility, Environment Impact




7                                      © 2009 Wipro Ltd - Confidential
Key Trends
    Product Trends                   Consolidation                   New Competition                   Convergence                      Sustainability
    •Rise of own labels              •Retail consolidation           •Growth of value and premium      •Convergence with other          •Corporate responsibility
    •Product safety                  •Mergers and acquisitions and   retailing                         industries                       •Environment trends
    •Development of packaging        structural changes              •Growth of food services          •New entrants and retail         •Employee policies
    •International purchasing        •Purchasing collaboration       •Vertical integration and         expansion                        •Local community relations
    collaboration                                                    proprietary channels              •Online sales of services        •Corporate & Brand reputation
    •Continuous innovation




                 Subcontractors              Manufacturers                Retailer                        Store                    Consumer




            Internationalization             IT enabled trends                        Regulation & De-                   Consumer Trends
            •Growth of large emerging        •Loyalty programmes and event            regulation                         •Time rushed consumers
            markets                          based personalized dialogue              •Store hours                       •Easiness and quickness
            •Saturation in local markets     •Store operations automation             •Sales of alcoholic beverages      •Experience economy
            •Global Sourcing, shifting       and retail task management               •Over-the-counter medicines        •Ageing population
            strategies                       •Outsourcing and shared                  •Competition legislation           •Growth of purchasing power
                                             services
                                                                                                                         •Home meal replacement
                                             •New technologies (RFID,
                                             NFC, WLAN, etc)                                                             •Health and wellness
                                             •Multi-channel retailing



                                   Source: The Retail Value Chain, Cap Gemini
8                                                                    © 2009 Wipro Ltd - Confidential
IT Trends, Challenges & Changes
    • CIO/IT Challenges                                                        • Technology Trends
       – Strategic                                                                  Services (SOA, SaaS, PaaS, Cloud)
             IT Agility and responsiveness                                         Real-time information and intelligence
             Partnership with IT vendors and service providers                     Web 3.0
             Vendor mergers
       – Operational
             Controlling IT operating costs
             IT infrastructure management
             Training
       – Compliance
             Corporate Information Security
             Green Computing
       – Financial
             Budget Cuts
             Pressure for Higher ROI
       – Technological
               Interoperability between disparate applications
               Managing Legacy Systems
               Data Silos & lack of integration
               Lack of single customer view
               Lack of master/reference data (e.g. product/item master)                              `




9                                                © 2009 Wipro Ltd - Confidential
Business Intelligence
     BI is a must rather than a may for building and retaining the competitive advantage;
     high quality BI will continue to make significant impact on planning and customer
     relationships
       •   BI perceived an important strategic tool as knowing the customer is the most
           important aspect of retail business today than ever

       •   Integrated real-time BI both with intelligence providing systems like POS and
           intelligence consuming systems like assortment planning will be ideal

       •   Web 2.0, POS integration,Video surveillance are new avenues of collecting value
           data for BI

       •   Video surveillance is always providing solutions in Loss Prevention space




10                                          © 2009 Wipro Ltd - Confidential
Web 2.0
     Adopters of Web 2.0 will build a stronger relationship with the next generation
     customers and obtain valuable insight into their wants

      •   Interactive Web 2.0 technologies - blogs, rich media, podcasts, wikis, Web surveys
          and social networking forums including Facebook and MySpace
      •   Gaining consumer insight, building brand awareness and increasing customer loyalty
      •   Also obtain valuable information that can impact an unexpected area - the supply
          chain.
      •   What goods will customers want? And when will they want them?
      •   Each season retailers undergo a complex process of utilizing supply chain planning
          tools to evaluate past sales, margins and returns in order to create financial,
          merchandise, channel and key item plans for upcoming seasons.
      •   By engaging in ongoing conversations through Web 2.0 technologies, retailers have
          the unique opportunity to get a glimpse into the minds of their consumers
      •   For marketing and promotional campaigns, cutting-edge retailers are taking a step
          further and integrating the information into their inventory and assortment
          planning.

11                                        © 2009 Wipro Ltd - Confidential
Supply Chain – New Qualifiers (Green,Visible)
     Supply chain continues to get impacted by global developments, at the same time
     continues to provide opportunities to gain business value, tangible or intangible
      •   Green Supply Chain
           – SCM is more international, complex and dynamic
           – Corporations are now held accountable for reducing environmental impact while continuing to meet
              the needs of shareholders and customers
           – A green supply chain can be achieved in a manner that will save an organization time and money and
              improve product quality

      •   Visible Supply Chain
           – SCM no longer means just making sure that the right resources and the right materials move to the
                right place at the right time.
           – Merely pushing information about partners or products into a report that lands on a manager's desk
                every day will not achieve the goals. Nor will a dashboard, even if it delivers that same information in
                real time.
           – What today's supply chain managers need instead is a supply chain that is visible. Meaning that data is
                delivered in a way that enables managers to know whatever they need to know whenever they need
                to, at whatever level of detail they need, and that allows them to analyze the data and take action
                based on the results of their analysis. The essence is the ability to know the location and status of all
                physical components, from raw materials to finished goods, as they move from suppliers through the
                stages of production to delivery to customers.

12                                                   © 2009 Wipro Ltd - Confidential
Supply Chain – New Qualifiers (Sentient)
     •   Sentient Supply Chain
          – Three macro trends
                 • Worldwide demographic shifts are opening doors for retailers who react quickly, and are posing
                     major risks for those that stand by and do nothing
                 • Falling trade barriers are creating opportunities for retailers to source product in parts of the
                     world where production is significantly less expensive
                 • Geopolitical uncertainties have created unstable conditions in consumer and commodities
                     markets.
          – Supply Chain from being reactive and linear model to a model that is flexible, intelligent, aware of
               real-time changes and better able to predict product demand.
          – Four operating principles of the future Sentient Supply Chain - Flexibility, Intelligence, Awareness and
               Precognition
          – Building the Sentient Supply Chain
                 • Integrating disjointed and fragmented workflows and data sources, and converging siloed
                     business processes
                 • Embedding intelligence throughout united workflows in the form of advanced constraint-based
                     optimization and forecasting algorithms
                 • Accommodating multiple languages and user roles and becoming process-centric and flexible to
                     accommodate the unique and distinct business processes that promote competitive advantage
                 • Delivering measurable value at every step of the transformation process



13                                               © 2009 Wipro Ltd - Confidential
Supply Chain – New Technologies
     New technologies making incremental but differentiating impact on the supply chain


       •   Connectivity WLAN, mobile networks, Bluetooth
       •   Voice and GPS communication integrated into rugged computers
       •   Speech recognition
       •   Digital imaging
       •   Portable printing
       •   2D & other bar coding advance
       •   RFID
       •   RTLS
       •   Remote management




14                                      © 2009 Wipro Ltd - Confidential
Merchandizing

     • All the vendors offer similar solutions
     • Nothing much to look forward to. Seems to be quite mature area.
     • Tomax has introduced SaaS/HaaS based solutions but does not have any
       notable clients




15                                 © 2009 Wipro Ltd - Confidential
Point of Sale
     • Most of the vendors offer similar solutions
     • Integration of POS with all other retail systems is important

     • Oracle Retail In-Store Operations solutions enable true multi-channel
       retailing by delivering a consistent shopping experience across all retail
       channels — in your stores, on your Web site, and through your catalog or
       call centre

     • The SAP Point-of-Sale (SAP POS)application offers unprecedented
       flexibility that empowers retailers to quickly and easily configure the
       application, thanks to its powerful configuration tool and business-rules
       engine.




16                                  © 2009 Wipro Ltd - Confidential
Payments
     • Ongoing advancements in mobile payments technologies, such as RFID,
       Near Field Communications (NFC) and Short Message Service (SMS) have
       helped spark the growth of contactless payments. MasterCard's PayPass®
       is an example of one company exploring the use of NFC technology, while
       PayPal Mobile, a text-topay company, employs SMS.
     • Contactless Payments – Barclaycard
     • Online Payment Fraud

     • PCI (Payment Card Industry) Compliance
         – Set of security standards that were created by the major credit card
           companies (American Express, Discover Financial Services, JCB, MasterCard
           Worldwide, and Visa International) to protect their customers from increasing
           identity theft and security breaches. Any company that accepts, processes, or
           stores credit card information is required to comply with the PCI security
           standards.


17                                    © 2009 Wipro Ltd - Confidential
Digital Signage
     •   Enhancing the customer experience
     •   Kiosks, TVs, promotions, marketing, etc
     •   Not just specific to retail industry only
     •   SaaS model based solutions available




18                                    © 2009 Wipro Ltd - Confidential
Vendors – Solutions and Services
     Business and technology change is enabled and influenced by solutions and services
     offered by key vendors in the marketplace

       • Solution and services vendors are a key component in the retail business
         eco-system
       • Vendors are adopting new technologies and embedding them into their
         solution offerings
       • Vendors continue to update their solutions to enable enterprises
         effectively respond to the business trends as well




19                                     © 2009 Wipro Ltd - Confidential
Oracle Retail Solutions
Oracle a dominant retail solutions vendor has offerings covering most of the retail
functions. It has incorporated technology trends like SOA and SaaS into its offerings
and continues to invest in them.
                                                                                                      Oracle Retail In-Store Operations
     Oracle Retail Merchandise Planning              Oracle Retail Merchandise Operations
                                                     Management                                       Oracle Human Resources Management
     Oracle Retail Allocation                                                                         Oracle Retail Back Office
     Oracle Retail Category Management               Oracle Retail Invoice Matching                   Oracle Retail Central Office
     Oracle Retail Demand Forecasting                Oracle Retail Merchandising System               Oracle Retail Labels-and-Tags
     Oracle Retail Item Planning                     Oracle Retail Price Management                   Oracle Retail Mobile-Point-of-Service
     Oracle Retail Merchandise Financial Planning    Oracle Retail Sales Audit                        Oracle Retail Point-of-Service
     Oracle Retail Space Optimization                Oracle Retail Trade Management                   Oracle Retail Store Inventory Management
     Oracle Retail Value Chain Collaboration         Oracle Retail Value Chain Collaboration
                                                                                                       Oracle Retail Supply Chain Planning and
                                                                                                       Execution
     Oracle Retail Profit Optimization
                                                    Business Intelligence
                                                                                                       Oracle Retail Advanced Inventory Planning
     Oracle Retail Assortment Execution
                                                    Oracle Active Retail Intelligence                  Oracle Retail Replenishment Optimization
     Oracle Retail Price Optimization
                                                    Oracle Database                                    Oracle Retail Value Chain Collaboration
                                                    Oracle Retail Business Intelligence Accelerator    Oracle Retail Warehouse Management System
                                                    Oracle Retail Data Warehouse
     Corporate Administration
                                                    Oracle Retail Extract, Transform, & Load
                                                    Oracle Retail Integration Bus
     Oracle Asset Management
                                                    Oracle Retail Integrator                                 Product Acquisitions
     Oracle Corporate Performance Management
                                                    Oracle Retail Workspace
     Oracle Financials
     Oracle Human Resources Management                                                                       ProfitLogic (optimization)
     Oracle Real Estate Management                                                                           G-Log (supply chain)
                                                                                                             Temposoft (workforce management),
                                                                                                             Agile (PLM)
                                                                                                             360Commerce (store systems).

20                                                                © 2009 Wipro Ltd - Confidential
SAP Retail Solutions
SAP another dominant vendor has a product strategy that embeds new technology
trends as SOA, SaaS and Cloud Services into its offerings.
     Vendor        Planning                Merchandising        Buying                    Distribution         Sales            Customer
                      Category /Seasonality Management/
                    Category/Merchandise Business Planning
                            Assortment Management
                     Retail Price and Revenue Management
                     Promotion Planning and Management
                                                    Supply Chain Planning
                                                   Supply Network Planning
                                                  Replenishment & Allocation
                                                   Transportation Planning
                                                                     Purchasing
                                                           Vendor Relationship Management
                                                             Purchase Order Management
                                                                    Foreign Trade
                                                                         Supply Chain Execution
                                                                          Inventory Management
                 Legend                                                 Warehouse Management
           Scenario fully covered w.                                    Transportation Execution
           ERP *                                                    Supply Chain Visibility and Tracking
         Elementary coverage w. ERP
                                                                                                     Multi Channel Retailing
         Scenario not covered w. ERP                                                                    Store Operations
         * Full coverage with Retail Engines                                                      Customer Loyalty Management
           (SAP MAP, SAP F&R, SAP POS DM)

                                                           Enterprise Management & Support
                                                               Master Data Management
                                                                       Analytics
                                                                      Financials
                                                              Human Capital Management
                                                                 Corporate Services
                                                                 Operations Support
21                                                              © 2009 Wipro Ltd - Confidential
Cap Gemini Retail Offering
Cap Gemini a player in retail consulting services has offerings covering the trends as
SOA, RFID, Green Supply Chain and Business Intelligence.
     •Gaining Advantage by Deploying Innovative Technology                     •Creating Efficiency through Business Process
     •Build a technology strategy and reliable technology                      Improvement
     solutions — with the emphasis on speed, predictability,                   •Understand the changing business environment,
     agility and reduced risk. Offerings include:                              define your business goals and achieve sustainable
     •IT Transformation                                                        results. Offerings include:
     •Retail Service-Oriented Architecture (SOA)                               •Supply Chain Management
     •ERP Integration                                                          •Store Operations Improvement
     •Store Technology                                                         •Integrated Planning & Execution
     •In-Store Radio Frequency Identification (RFID)                           •Retail Merchandising
     •Agent Technology                                                         •Consumer-Driven Replenishment
     •Global Data Synchronization                                              •Finance & Employee Transformation




22                                               © 2009 Wipro Ltd - Confidential
Accenture Retail Offering
Accenture places high importance on decision making capabilities enabled through
customer analytics and synergies through right partnerships.
     Identifying your most important customers and prospects—and integrating customer insights and powerful
          analytics into retail decision-making can drive high performance throughout your business. Accenture can
          help your organization thrive in today's competitive landscape.

     What does it take to achieve high performance in the retail industry? As a sector that faces risks of limited
        growth and value creation potential, there are several attributes that retailers should strive toward to
        guarantee success and outperform their peers. After defining your organization's strategic intent, it's all
        about excelling in the following areas:

     •   Obsessive customer focus: How do I best gain insight into my customers' needs and clearly articulate a
         differentiated value proposition?
     •   Operational excellence: How can I improve productivity and functional excellence through process
         innovation? How can I leverage IT to continue to streamline operations? How can I focus resources on the
         areas of highest skill and value?
     •   Innovation and execution to value: What can be done to create an agile organization that fosters
         investment through innovation and execution in the future?
     •   Alliance and collaboration capabilities: How can I develop expertise to capture internal synergies
         and manage strategic alliances where appropriate?
     •   Leadership and talent management: How is a performance-oriented culture established and
         nurtured through leadership and talent management?
23                                                 © 2009 Wipro Ltd - Confidential
IBM Retail Offering – Performance Manager
IBM has retail focussed solutions in enterprise performance management that
includes business intelligence.

     •   Find out how The Performance Manager for Retail Book will help you find the sweet spot of information in
         your department:
     •   Finance (298KB) Trusted advisor or compliance enforcer?
     •   Marketing (286KB) Investment advisor to the business
     •   Stores and Channels (267KB) Your business accelerator
     •   Customer Service (320KB) The risk/reward barometer of the retail value proposition
     •   Merchandising (218KB) Merchandising the right product, the right place, at the right time.
     •   Supply chain, sourcing & distribution Winning at the margins.
     •   Human Resources (267KB) Management or administration of human capital?
     •   Information Technology (357KB) A pathfinder to better performance
     •   Executive Management (345KB) Chief balancing officers




24                                              © 2009 Wipro Ltd - Confidential
Other Vendors
Other leading vendors continue to innovate and invest in emerging trends like SaaS
to deliver flexible and cost effective solutions to various small and medium size retail
enterprises




25                                   © 2009 Wipro Ltd - Confidential
Wipro Retail Footprint                                                                                             In-store Technology
                                                             In-Store Operations
In-store Operations Applications
                                                                                                                       POS          Sales Processing
      In-store customer mgmt      In-store WF mgmt          In-store                    Central Office –
                                                                                         Channel Ops                                Ret Processing
                                  •T&A                     Mdse/ Inv                                                  Kiosks
         In-store analytics       •Labor scheduling          mgmt                                                                   Mobile Devices
                                                                                  BackOffice – Store Ops            Payments
                                  •Event/ task mgmt
                                                                                                                                          Store
                                                                                                                                     Infrastructure

                                                             Merchandise Management                                Merchandise Planning
Core Merchandising
                                                                                                            Mdse Fin Plng           Price Optimzn.
      Inventory mgmt            Price mgmt               Allocation and Replenishment
                                                                    Allocation                           Assort Planning             Promo Optim
         PO mgmt               Promo mgmt
                                                                  Replenishment                             Space Planning         Markdown Optim
                              Markdown mgmt

                       Supply Chain Management                                                                   Sales and Marketing
                                                                                                Sales
           Planning                    Execution                 Sourcing
      Demand Plng                 Transport Mgmt             E-Procurement                      E Commerce Sell Side Partner Relation Mgmt
     Inventory Plng      VMI      Warehouse Mgmt             Strat Sourcing                     E Commerce site operations
       Distri Plng                     RFID                   Hubs/ Portals                     Marketing
                                                                                                  Analytics for CRM            Campaign Mgmt
     Human Resources     Corporate Administration                                                 Promotions Mgmt            Mktg Resource Mgmt
          T&A                                                  Financial Mgmt
                          Enterprise                 M
     Workforce Mgmt                       Man                Core Financials                   Customer service and Support
                            Asset                    D
     Ed and Training                      Ops               Performance Mgmt
                            Mgmt                     M                                          Contact center cust svc    Customer self
                                                                                               Contact center tech support  service and
                                                                                                                              support
                                                   Infrastructure                               Contact center WF optim

 Communication         Data Centers          Security        Printers/ copiers                 Servers            Laptops              EAI
26                                                           © 2009 Wipro Ltd - Confidential
Current State Architecture




27   © 2009 Wipro Ltd - Confidential
Current State Architecture Mapping
       Plan                      Buy                   Move                                 Sell                   Corporate

                                                            Warehouse
     Merchandize Planning      Partner Relationship                                            Marketing
                                                           Management                                                       Finance
                                   Management
       (Oracle, SAP, JDA,                                                                       (Oracle,
                                                      (Manhattan, Red Praire,                                            (Oracle, SAP)
            Tomax)                (SAP, Oracle)                                             Salesforce,com)
                                                           SAP, Oracle)




                                 Purchase Order           Transportation                         Selling
       Financial Planning                                                                                                     HR
                                  Management               Management
                                                                                                (Oracle,
         (Oracle, SAP)                                                                                               (Oracle, SAP, Kronos)
                                  (Sterling, SAP)        (SAP, RedPrairie)                  Salesforce.com)




     Supply Chain Planning      Product Lifecycle        Replenishment &
                                                                                          Order Management                Real Estate
                                  Management               Allocations
       (Manugistics, SAP,
                                                                                         (Sterling, SAP, Oracle)            (Oracle)
       Oracle, i2, Epicor)        (Oracle, SAP)          (Oracle, JDA, i2)




                              Inventory Management                                         Store Operations                    IT
     Business Intelligence
                                  (Oracle, SAP,             Transfers                      (Oracle, SAP, IBM,       (Microsoft, IBM, Oracle,
     (Oracle, SAP, Raymark)
                                   RedPrairie)                                              Epicor, Tomax)                  Cisco)



                                                                                                                                                In house

                                                         Return to Vendor                       Returns                                        Outsourcing
                                                                                                                                                 Partial
                                                                                                                                               Outsourcing

Delivery Model of these solutions can be both On-Premise or On-Demand (Cloud Computing/SaaS)

28                                                     © 2009 Wipro Ltd - Confidential
Key Functions to Products Mapping
     Functional area                    Product vendors
     Online Retailing                   ATG, Escalate Retail, IBM, Comergent
     Content Management                 Fatwire, Tridion, Interwoven
     Warehouse Management               Manhattan Associates, Red Prairie
     Order Management                   Sterling Commerce (Yantra), SAP
     Online marketing                   Unica
     Corporate and Store Business
     Intelligence                       Storebench
     Store Replenishments               Demantra
     In-Store Devices/Kiosks/Wireless   NCR, IBM, Fujitsu
     Store task execution               Store Perform, Tomax
     Retail Enterprise                  Oracle Retail, SAP IS Retail
     Pricing & Promotions               Oracle Retail (ProfitLogic), SAP (Khimetrics)

     Merchandising                      Oracle Retail, JDA, DemandTec, SAP IS Retail

     CRM                                Siebel, Oracle CRM, Salesforce.com

     POS                                Oracle Retail (360Commerce), NCR, Fujitsu, Retailix

     Demand planning                    Manugistics, SAP, I2

     Labor Management                   Kronos, Workbrain

     Planograming, Space Planning       Galleria
                                                                               Source: Wipro Retail
29                                           © 2009 Wipro Ltd - Confidential
State of Critical Retail Technologies




                                                         Source: Wipro Retail
30                     © 2009 Wipro Ltd - Confidential
Retail Architecture Framework
     Retail Device Interfaces
                Web               Kiosk              Mobile             POS                 Pocket PC             E-Mail               Fax

     Retail Channels
      Online                                             Stores                                                         Catalog / Phone
      Online          Catalog        Content             In-Store        Signage         Store       Personalized       Promotional     Catalog          Content        Attract
      Promotions      Management     Management          Promotions      (Digital)       Catalog     Promotions         Catalogs        Management       Management
        Product        WishList      Personalizati                       POS             Kiosk       Catalog
                                                                                                                                                                        Transact
        Advisor                                               ESL                                                       Call Center
                       Mgmt          on                                  Systems         Services    Management                              Order                      Fulfill
                                                                                                                        Applications                         Pricing
        Order                        Checkout                            Shopping       Barcode                                              Capture
                        Pricing                          Item Locator                                   Pricing                                                         Service
        Capture                      Management                          Buddy          Scanners
                                                                                                                       StoreLocator          Shipping    Inventory
      StoreLocator     Shipping      Inventory          Inventory  Cross       Layaway                Load             Services              Services    Management     Infrastructure
      Services         Services      Management         Management Channel Svc Management             Balancing
      Order Status    Order           Reviews &         Labor      Store                Other Store Returns            Order Status     Order             Reviews &
      &Notification   Management      Feedback          Management Dashboard            Systems     Management         &Notification    Management        Feedback
                                                                                                                                                                       Special
                                                                        Technical Infrastructure
                                                                                                                                                                       orders
     Central Retail Functions                                                                                                                                          Service
       Merchandising                      Logistics & Distribution         Payment Authorization              Inventory                         Warranty & Services
                                          Management                                                          Management                                               delivery
                                                                              Subscription Systems            Pricing                           Delivery Systems
       Marketing                          Procurement Systems
                                                                                                                                                                       3rd party
       Invoice management                 Order Management                    Returns                             Loyalty Programs              Promotions
                                                                                                                                                                       partners

                                                                        Technical Infrastructure


     Central Office Functions
       HR Systems            Finance Systems            E-learning Systems           Labor                   Distribution Systems            Information Systems
                                                                                     Management



                                                                                                                                                 Source: Wipro Retail
31                                                                                © 2009 Wipro Ltd - Confidential
Future State Architecture




32   © 2009 Wipro Ltd - Confidential
Impact of Changes on Architecture (1-3 years)

                     Plan             Buy                 Move                               Sell               Corporate
                                       Globalization                                              Customer &
                                                                                                  Competition
                                       Partner
                     Merchandize                           Warehouse
                                     Relationship                                            Marketing             Finance
                      Planning                            Management
                                     Management
                                                        Green
                                                       Business

                      Financial     Purchase Order       Transportation
                                                                                              Selling                 HR
                      Planning       Management           Management

     Globalization
                                       Product
                     Supply Chain                        Replenishment                      Order
                                      Lifecycle                                                                   Real Estate
                       Planning                           & Allocations                  Management
                                     Management



                       Business       Inventory                                                Store
                                                            Transfers                                                 IT
                     Intelligence    Management                                              Operations
      Customer &
      Competition

                                                            Return to
                                                                                              Returns
                                                             Vendor

                                                                                                                                Impact Level
                                                                                                                                   High

                                                                                                                                  Medium

                                                                                                                                    Low

33                                                         © 2009 Wipro Ltd - Confidential
Future State Architecture Themes
     •   Customer centric
     •   Real time and agile
     •   Green Business
     •   Service Oriented Business
     •   Global partners
     •   Outsourcing
     •   Innovation
     •   Diversification




34                                   © 2009 Wipro Ltd - Confidential
Future State Architecture - View1

                                        Changing Customers
     Segmentation     Tech Savvy        Global                  Real time   Demanding




                      Unified Brand Image via Responsive Services

                                        Customer




                                Core Competency Services


                               Adaptive and Innovative Retailer
            Outsourced                                                       Outsourced
             Services                                                         Services
                              Extended Retailer Partnerships
             Global                         Adaptive                           Green




35                                       © 2009 Wipro Ltd - Confidential
Future State Architecture – View 2

                               Customers (Global, Time strained)

                                  Changing Characteristics

       Demographics                   Needs & Wants                            Choice




                            Retailer (Agile, Service Oriented)

                                   Core Competency Services
         Customer                Brand                                          Partner
                                                                Innovation
        Management            Management                                      Management



                      Retailer Partners (Responsive, Global, Trusted)

                                     Outsourced Services
         Product                         Corporate
                                                                             Supply Chain
       Management                         Services




36                                     © 2009 Wipro Ltd - Confidential
Future State Architecture – View 3
                             Customers (Global, Time strained)

                                Changing Characteristics

     Demographics                     Needs & Wants                           Choice




                          Retailer (Agile, Service Oriented)

                                   Core Competency Services
                                                                                           Private
       Customer                Brand                                           Partner     Cloud
                                                             Innovation
      Management            Management                                       Management
                                                                                           Candidates


                    Retailer Partners (Responsive, Global, Trusted)

                                    Outsourced Services
                                                                                           Public
        Product                         Corporate                                          Cloud
                                                                            Supply Chain
      Management                         Services
                                                                                           Candidates


                              SOA               Cloud             BPM
                              BI                RFID              Web 3.0
37                                       © 2009 Wipro Ltd - Confidential
Future State Architecture – View 4
     Retail Device Interfaces
                Web               Kiosk              Mobile             POS                 Pocket PC             E-Mail               Fax

     Retail Channels
      Online                                             Stores                                                         Catalog / Phone
      Online          Catalog        Content             In-Store        Signage         Store       Personalized       Promotional     Catalog          Content
      Promotions      Management     Management          Promotions      (Digital)       Catalog     Promotions         Catalogs        Management       Management
        Product        WishList      Personalizati
                                                              ESL
                                                                         POS             Kiosk       Catalog                                                           Attract
        Advisor        Mgmt          on                                  Systems         Services    Management         Call Center          Order
                                                                                                                        Applications                         Pricing   Transact
        Order                        Checkout                            Shopping       Barcode                                              Capture
                        Pricing                          Item Locator                                   Pricing
        Capture                      Management                          Buddy          Scanners                                                                       Fulfill
                                                                                                                       StoreLocator          Shipping    Inventory
      StoreLocator     Shipping      Inventory          Inventory  Cross       Layaway                Load             Services              Services    Management
      Services         Services      Management         Management Channel Svc Management             Balancing                                                        Service
      Order Status    Order           Reviews &         Labor      Store                Other Store Returns            Order Status     Order             Reviews &    Infrastructure
      &Notification   Management      Feedback          Management Dashboard            Systems     Management         &Notification    Management        Feedback

                                                                        Technical Infrastructure


     Central Retail Functions
       Merchandising                      Logistics & Distribution         Payment Authorization              Inventory                         Warranty & Services
                                          Management                                                          Management
                                                                                                                                                                         SOA
       Marketing                          Procurement Systems                 Subscription Systems            Pricing                           Delivery Systems         BI

                                                                                                                                                                         BPM
       Invoice management                 Order Management                    Returns                             Loyalty Programs              Promotions
                                                                                                                                                                         Cloud
                                                                        Technical Infrastructure                                                                         RFID

     Central Office Functions                                                                                                                                            Web 3.0
       HR Systems            Finance Systems            E-learning Systems           Labor                   Distribution Systems            Information Systems
                                                                                     Management



                                                                                                                                                 Source: Wipro Retail
38                                                                                © 2009 Wipro Ltd - Confidential
Architecture Strategies (1-3 years)

                                                            •    Analytics (BI, Real-time Analytics)
     Customer focused
      growth                                                •    Web 3.0 including Social Networking
                                                            •    Customer Data Security



                                                            •    APR
     Efficiency driven cost                                 •    Cloud
                                                            •    SaaS/SOA
       reduction                                            •    BPM, Legacy Remediation, Next-gen Portals
                                                                 (Web 3.0)


                                                            •    Capture and standardize internal processes and
     Globalize scale of                                          frameworks (core EA)
      operations                                            •    Offshore IT services and global delivery model
                                                            •    Internationalization in the COTS products
                                                            •    Green Initiatives




     The emerging technology themes like Cloud, SaaS, Web 3.0 are more inclined to be adopted
     and introduced by the technology/packages solution vendors

39                                       © 2009 Wipro Ltd - Confidential
Thank You

                                      Lakshmana Kattula

                                  lakshmana.kumar@wipro.com
                                              +44-7766691197




© 2009 Wipro Ltd - Confidential

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Retail Industry Enterprise Architecture Review

  • 1. Retail Industry Enterprise Architecture Review Wipro Consulting Services (Lakshmana Kattula) July 2009 © 2009 Wipro Ltd - Confidential
  • 2. Contents • Retail Industry Business Overview • Trends, Challenges and Changes in Retail • Current State Architecture • Future State Architecture 2 © 2009 Wipro Ltd - Confidential
  • 3. Retail Industry Business Overview 3 © 2009 Wipro Ltd - Confidential
  • 4. Retail Business Process Model Plan Buy Move Sell Corporate Partner Merchandize Warehouse Relationship Marketing Finance Planning Management Management Financial Purchase Order Transportation Selling HR Planning Management Management Product Supply Chain Replenishment Order Lifecycle Real Estate Planning & Allocations Management Management Business Inventory Store Transfers IT Intelligence Management Operations Return to Returns Vendor 4 © 2009 Wipro Ltd - Confidential
  • 5. Retail Business Architecture Supply Chain Management Merchandize Management Stores Management Planning Execution Planning Operations POS Workforce Mgt Supplier Management Warehouse Price & Campaign Mgt Value Chain Management Collaboration Advanced Store Sourcing Promotions Technologies Transportation Trade Mgt Distribution Assortment Sales Audit Gift Registry Reverse Logistics Replenishment Allocations Invoicing Matching Back Office Integration Visibility & Tracking Inventory Category Mgt Merchandising System Central Office Logistics Purchase Order Mgt Item Planning Labels & Tags Procurement Channel Management Foreign Trade Stores Allocation Space Optimization Physical Store Mobile POS Advanced Planning & Online Store Scheduling Demand Management Store Inventory Mgt CPFR Mail & Catalogue Returns Mgt Corporate Management Customer Management Loss Prevention Performance Mgt Finance Sales Management Analytical CRM Real Estate Mgt HR GDS Marketing Management Call Centre Asset Mgt Business Intelligence Standards Customer Support Customer Loyalty & MDM Services & Chum Preferences IT RFID Analysis 5 © 2009 Wipro Ltd - Confidential
  • 6. Trends, Challenges and Changes in Retail 6 © 2009 Wipro Ltd - Confidential
  • 7. Business Trends, Challenges & Changes •Change in demographics, lifestyles, fashions, purchasing power Consumer •New online shopping channel; social networking •Home meal replacement; Health and wellness Behavior •Ageing population •Time rushed consumers; ease and quickness •New entrants; rise of own labels Competitive •Supremacy of the discount store chains; global power brands Landscape •Slow growth in mature markets •Price deflation •Global supply chains •Growth in emerging markets Globalization •Global customer base •Corporate Social Responsibility, Environment Impact 7 © 2009 Wipro Ltd - Confidential
  • 8. Key Trends Product Trends Consolidation New Competition Convergence Sustainability •Rise of own labels •Retail consolidation •Growth of value and premium •Convergence with other •Corporate responsibility •Product safety •Mergers and acquisitions and retailing industries •Environment trends •Development of packaging structural changes •Growth of food services •New entrants and retail •Employee policies •International purchasing •Purchasing collaboration •Vertical integration and expansion •Local community relations collaboration proprietary channels •Online sales of services •Corporate & Brand reputation •Continuous innovation Subcontractors Manufacturers Retailer Store Consumer Internationalization IT enabled trends Regulation & De- Consumer Trends •Growth of large emerging •Loyalty programmes and event regulation •Time rushed consumers markets based personalized dialogue •Store hours •Easiness and quickness •Saturation in local markets •Store operations automation •Sales of alcoholic beverages •Experience economy •Global Sourcing, shifting and retail task management •Over-the-counter medicines •Ageing population strategies •Outsourcing and shared •Competition legislation •Growth of purchasing power services •Home meal replacement •New technologies (RFID, NFC, WLAN, etc) •Health and wellness •Multi-channel retailing Source: The Retail Value Chain, Cap Gemini 8 © 2009 Wipro Ltd - Confidential
  • 9. IT Trends, Challenges & Changes • CIO/IT Challenges • Technology Trends – Strategic  Services (SOA, SaaS, PaaS, Cloud)  IT Agility and responsiveness  Real-time information and intelligence  Partnership with IT vendors and service providers  Web 3.0  Vendor mergers – Operational  Controlling IT operating costs  IT infrastructure management  Training – Compliance  Corporate Information Security  Green Computing – Financial  Budget Cuts  Pressure for Higher ROI – Technological  Interoperability between disparate applications  Managing Legacy Systems  Data Silos & lack of integration  Lack of single customer view  Lack of master/reference data (e.g. product/item master) ` 9 © 2009 Wipro Ltd - Confidential
  • 10. Business Intelligence BI is a must rather than a may for building and retaining the competitive advantage; high quality BI will continue to make significant impact on planning and customer relationships • BI perceived an important strategic tool as knowing the customer is the most important aspect of retail business today than ever • Integrated real-time BI both with intelligence providing systems like POS and intelligence consuming systems like assortment planning will be ideal • Web 2.0, POS integration,Video surveillance are new avenues of collecting value data for BI • Video surveillance is always providing solutions in Loss Prevention space 10 © 2009 Wipro Ltd - Confidential
  • 11. Web 2.0 Adopters of Web 2.0 will build a stronger relationship with the next generation customers and obtain valuable insight into their wants • Interactive Web 2.0 technologies - blogs, rich media, podcasts, wikis, Web surveys and social networking forums including Facebook and MySpace • Gaining consumer insight, building brand awareness and increasing customer loyalty • Also obtain valuable information that can impact an unexpected area - the supply chain. • What goods will customers want? And when will they want them? • Each season retailers undergo a complex process of utilizing supply chain planning tools to evaluate past sales, margins and returns in order to create financial, merchandise, channel and key item plans for upcoming seasons. • By engaging in ongoing conversations through Web 2.0 technologies, retailers have the unique opportunity to get a glimpse into the minds of their consumers • For marketing and promotional campaigns, cutting-edge retailers are taking a step further and integrating the information into their inventory and assortment planning. 11 © 2009 Wipro Ltd - Confidential
  • 12. Supply Chain – New Qualifiers (Green,Visible) Supply chain continues to get impacted by global developments, at the same time continues to provide opportunities to gain business value, tangible or intangible • Green Supply Chain – SCM is more international, complex and dynamic – Corporations are now held accountable for reducing environmental impact while continuing to meet the needs of shareholders and customers – A green supply chain can be achieved in a manner that will save an organization time and money and improve product quality • Visible Supply Chain – SCM no longer means just making sure that the right resources and the right materials move to the right place at the right time. – Merely pushing information about partners or products into a report that lands on a manager's desk every day will not achieve the goals. Nor will a dashboard, even if it delivers that same information in real time. – What today's supply chain managers need instead is a supply chain that is visible. Meaning that data is delivered in a way that enables managers to know whatever they need to know whenever they need to, at whatever level of detail they need, and that allows them to analyze the data and take action based on the results of their analysis. The essence is the ability to know the location and status of all physical components, from raw materials to finished goods, as they move from suppliers through the stages of production to delivery to customers. 12 © 2009 Wipro Ltd - Confidential
  • 13. Supply Chain – New Qualifiers (Sentient) • Sentient Supply Chain – Three macro trends • Worldwide demographic shifts are opening doors for retailers who react quickly, and are posing major risks for those that stand by and do nothing • Falling trade barriers are creating opportunities for retailers to source product in parts of the world where production is significantly less expensive • Geopolitical uncertainties have created unstable conditions in consumer and commodities markets. – Supply Chain from being reactive and linear model to a model that is flexible, intelligent, aware of real-time changes and better able to predict product demand. – Four operating principles of the future Sentient Supply Chain - Flexibility, Intelligence, Awareness and Precognition – Building the Sentient Supply Chain • Integrating disjointed and fragmented workflows and data sources, and converging siloed business processes • Embedding intelligence throughout united workflows in the form of advanced constraint-based optimization and forecasting algorithms • Accommodating multiple languages and user roles and becoming process-centric and flexible to accommodate the unique and distinct business processes that promote competitive advantage • Delivering measurable value at every step of the transformation process 13 © 2009 Wipro Ltd - Confidential
  • 14. Supply Chain – New Technologies New technologies making incremental but differentiating impact on the supply chain • Connectivity WLAN, mobile networks, Bluetooth • Voice and GPS communication integrated into rugged computers • Speech recognition • Digital imaging • Portable printing • 2D & other bar coding advance • RFID • RTLS • Remote management 14 © 2009 Wipro Ltd - Confidential
  • 15. Merchandizing • All the vendors offer similar solutions • Nothing much to look forward to. Seems to be quite mature area. • Tomax has introduced SaaS/HaaS based solutions but does not have any notable clients 15 © 2009 Wipro Ltd - Confidential
  • 16. Point of Sale • Most of the vendors offer similar solutions • Integration of POS with all other retail systems is important • Oracle Retail In-Store Operations solutions enable true multi-channel retailing by delivering a consistent shopping experience across all retail channels — in your stores, on your Web site, and through your catalog or call centre • The SAP Point-of-Sale (SAP POS)application offers unprecedented flexibility that empowers retailers to quickly and easily configure the application, thanks to its powerful configuration tool and business-rules engine. 16 © 2009 Wipro Ltd - Confidential
  • 17. Payments • Ongoing advancements in mobile payments technologies, such as RFID, Near Field Communications (NFC) and Short Message Service (SMS) have helped spark the growth of contactless payments. MasterCard's PayPass® is an example of one company exploring the use of NFC technology, while PayPal Mobile, a text-topay company, employs SMS. • Contactless Payments – Barclaycard • Online Payment Fraud • PCI (Payment Card Industry) Compliance – Set of security standards that were created by the major credit card companies (American Express, Discover Financial Services, JCB, MasterCard Worldwide, and Visa International) to protect their customers from increasing identity theft and security breaches. Any company that accepts, processes, or stores credit card information is required to comply with the PCI security standards. 17 © 2009 Wipro Ltd - Confidential
  • 18. Digital Signage • Enhancing the customer experience • Kiosks, TVs, promotions, marketing, etc • Not just specific to retail industry only • SaaS model based solutions available 18 © 2009 Wipro Ltd - Confidential
  • 19. Vendors – Solutions and Services Business and technology change is enabled and influenced by solutions and services offered by key vendors in the marketplace • Solution and services vendors are a key component in the retail business eco-system • Vendors are adopting new technologies and embedding them into their solution offerings • Vendors continue to update their solutions to enable enterprises effectively respond to the business trends as well 19 © 2009 Wipro Ltd - Confidential
  • 20. Oracle Retail Solutions Oracle a dominant retail solutions vendor has offerings covering most of the retail functions. It has incorporated technology trends like SOA and SaaS into its offerings and continues to invest in them. Oracle Retail In-Store Operations Oracle Retail Merchandise Planning Oracle Retail Merchandise Operations Management Oracle Human Resources Management Oracle Retail Allocation Oracle Retail Back Office Oracle Retail Category Management Oracle Retail Invoice Matching Oracle Retail Central Office Oracle Retail Demand Forecasting Oracle Retail Merchandising System Oracle Retail Labels-and-Tags Oracle Retail Item Planning Oracle Retail Price Management Oracle Retail Mobile-Point-of-Service Oracle Retail Merchandise Financial Planning Oracle Retail Sales Audit Oracle Retail Point-of-Service Oracle Retail Space Optimization Oracle Retail Trade Management Oracle Retail Store Inventory Management Oracle Retail Value Chain Collaboration Oracle Retail Value Chain Collaboration Oracle Retail Supply Chain Planning and Execution Oracle Retail Profit Optimization Business Intelligence Oracle Retail Advanced Inventory Planning Oracle Retail Assortment Execution Oracle Active Retail Intelligence Oracle Retail Replenishment Optimization Oracle Retail Price Optimization Oracle Database Oracle Retail Value Chain Collaboration Oracle Retail Business Intelligence Accelerator Oracle Retail Warehouse Management System Oracle Retail Data Warehouse Corporate Administration Oracle Retail Extract, Transform, & Load Oracle Retail Integration Bus Oracle Asset Management Oracle Retail Integrator Product Acquisitions Oracle Corporate Performance Management Oracle Retail Workspace Oracle Financials Oracle Human Resources Management ProfitLogic (optimization) Oracle Real Estate Management G-Log (supply chain) Temposoft (workforce management), Agile (PLM) 360Commerce (store systems). 20 © 2009 Wipro Ltd - Confidential
  • 21. SAP Retail Solutions SAP another dominant vendor has a product strategy that embeds new technology trends as SOA, SaaS and Cloud Services into its offerings. Vendor Planning Merchandising Buying Distribution Sales Customer Category /Seasonality Management/ Category/Merchandise Business Planning Assortment Management Retail Price and Revenue Management Promotion Planning and Management Supply Chain Planning Supply Network Planning Replenishment & Allocation Transportation Planning Purchasing Vendor Relationship Management Purchase Order Management Foreign Trade Supply Chain Execution Inventory Management Legend Warehouse Management Scenario fully covered w. Transportation Execution ERP * Supply Chain Visibility and Tracking Elementary coverage w. ERP Multi Channel Retailing Scenario not covered w. ERP Store Operations * Full coverage with Retail Engines Customer Loyalty Management (SAP MAP, SAP F&R, SAP POS DM) Enterprise Management & Support Master Data Management Analytics Financials Human Capital Management Corporate Services Operations Support 21 © 2009 Wipro Ltd - Confidential
  • 22. Cap Gemini Retail Offering Cap Gemini a player in retail consulting services has offerings covering the trends as SOA, RFID, Green Supply Chain and Business Intelligence. •Gaining Advantage by Deploying Innovative Technology •Creating Efficiency through Business Process •Build a technology strategy and reliable technology Improvement solutions — with the emphasis on speed, predictability, •Understand the changing business environment, agility and reduced risk. Offerings include: define your business goals and achieve sustainable •IT Transformation results. Offerings include: •Retail Service-Oriented Architecture (SOA) •Supply Chain Management •ERP Integration •Store Operations Improvement •Store Technology •Integrated Planning & Execution •In-Store Radio Frequency Identification (RFID) •Retail Merchandising •Agent Technology •Consumer-Driven Replenishment •Global Data Synchronization •Finance & Employee Transformation 22 © 2009 Wipro Ltd - Confidential
  • 23. Accenture Retail Offering Accenture places high importance on decision making capabilities enabled through customer analytics and synergies through right partnerships. Identifying your most important customers and prospects—and integrating customer insights and powerful analytics into retail decision-making can drive high performance throughout your business. Accenture can help your organization thrive in today's competitive landscape. What does it take to achieve high performance in the retail industry? As a sector that faces risks of limited growth and value creation potential, there are several attributes that retailers should strive toward to guarantee success and outperform their peers. After defining your organization's strategic intent, it's all about excelling in the following areas: • Obsessive customer focus: How do I best gain insight into my customers' needs and clearly articulate a differentiated value proposition? • Operational excellence: How can I improve productivity and functional excellence through process innovation? How can I leverage IT to continue to streamline operations? How can I focus resources on the areas of highest skill and value? • Innovation and execution to value: What can be done to create an agile organization that fosters investment through innovation and execution in the future? • Alliance and collaboration capabilities: How can I develop expertise to capture internal synergies and manage strategic alliances where appropriate? • Leadership and talent management: How is a performance-oriented culture established and nurtured through leadership and talent management? 23 © 2009 Wipro Ltd - Confidential
  • 24. IBM Retail Offering – Performance Manager IBM has retail focussed solutions in enterprise performance management that includes business intelligence. • Find out how The Performance Manager for Retail Book will help you find the sweet spot of information in your department: • Finance (298KB) Trusted advisor or compliance enforcer? • Marketing (286KB) Investment advisor to the business • Stores and Channels (267KB) Your business accelerator • Customer Service (320KB) The risk/reward barometer of the retail value proposition • Merchandising (218KB) Merchandising the right product, the right place, at the right time. • Supply chain, sourcing & distribution Winning at the margins. • Human Resources (267KB) Management or administration of human capital? • Information Technology (357KB) A pathfinder to better performance • Executive Management (345KB) Chief balancing officers 24 © 2009 Wipro Ltd - Confidential
  • 25. Other Vendors Other leading vendors continue to innovate and invest in emerging trends like SaaS to deliver flexible and cost effective solutions to various small and medium size retail enterprises 25 © 2009 Wipro Ltd - Confidential
  • 26. Wipro Retail Footprint In-store Technology In-Store Operations In-store Operations Applications POS Sales Processing In-store customer mgmt In-store WF mgmt In-store Central Office – Channel Ops Ret Processing •T&A Mdse/ Inv Kiosks In-store analytics •Labor scheduling mgmt Mobile Devices BackOffice – Store Ops Payments •Event/ task mgmt Store Infrastructure Merchandise Management Merchandise Planning Core Merchandising Mdse Fin Plng Price Optimzn. Inventory mgmt Price mgmt Allocation and Replenishment Allocation Assort Planning Promo Optim PO mgmt Promo mgmt Replenishment Space Planning Markdown Optim Markdown mgmt Supply Chain Management Sales and Marketing Sales Planning Execution Sourcing Demand Plng Transport Mgmt E-Procurement E Commerce Sell Side Partner Relation Mgmt Inventory Plng VMI Warehouse Mgmt Strat Sourcing E Commerce site operations Distri Plng RFID Hubs/ Portals Marketing Analytics for CRM Campaign Mgmt Human Resources Corporate Administration Promotions Mgmt Mktg Resource Mgmt T&A Financial Mgmt Enterprise M Workforce Mgmt Man Core Financials Customer service and Support Asset D Ed and Training Ops Performance Mgmt Mgmt M Contact center cust svc Customer self Contact center tech support service and support Infrastructure Contact center WF optim Communication Data Centers Security Printers/ copiers Servers Laptops EAI 26 © 2009 Wipro Ltd - Confidential
  • 27. Current State Architecture 27 © 2009 Wipro Ltd - Confidential
  • 28. Current State Architecture Mapping Plan Buy Move Sell Corporate Warehouse Merchandize Planning Partner Relationship Marketing Management Finance Management (Oracle, SAP, JDA, (Oracle, (Manhattan, Red Praire, (Oracle, SAP) Tomax) (SAP, Oracle) Salesforce,com) SAP, Oracle) Purchase Order Transportation Selling Financial Planning HR Management Management (Oracle, (Oracle, SAP) (Oracle, SAP, Kronos) (Sterling, SAP) (SAP, RedPrairie) Salesforce.com) Supply Chain Planning Product Lifecycle Replenishment & Order Management Real Estate Management Allocations (Manugistics, SAP, (Sterling, SAP, Oracle) (Oracle) Oracle, i2, Epicor) (Oracle, SAP) (Oracle, JDA, i2) Inventory Management Store Operations IT Business Intelligence (Oracle, SAP, Transfers (Oracle, SAP, IBM, (Microsoft, IBM, Oracle, (Oracle, SAP, Raymark) RedPrairie) Epicor, Tomax) Cisco) In house Return to Vendor Returns Outsourcing Partial Outsourcing Delivery Model of these solutions can be both On-Premise or On-Demand (Cloud Computing/SaaS) 28 © 2009 Wipro Ltd - Confidential
  • 29. Key Functions to Products Mapping Functional area Product vendors Online Retailing ATG, Escalate Retail, IBM, Comergent Content Management Fatwire, Tridion, Interwoven Warehouse Management Manhattan Associates, Red Prairie Order Management Sterling Commerce (Yantra), SAP Online marketing Unica Corporate and Store Business Intelligence Storebench Store Replenishments Demantra In-Store Devices/Kiosks/Wireless NCR, IBM, Fujitsu Store task execution Store Perform, Tomax Retail Enterprise Oracle Retail, SAP IS Retail Pricing & Promotions Oracle Retail (ProfitLogic), SAP (Khimetrics) Merchandising Oracle Retail, JDA, DemandTec, SAP IS Retail CRM Siebel, Oracle CRM, Salesforce.com POS Oracle Retail (360Commerce), NCR, Fujitsu, Retailix Demand planning Manugistics, SAP, I2 Labor Management Kronos, Workbrain Planograming, Space Planning Galleria Source: Wipro Retail 29 © 2009 Wipro Ltd - Confidential
  • 30. State of Critical Retail Technologies Source: Wipro Retail 30 © 2009 Wipro Ltd - Confidential
  • 31. Retail Architecture Framework Retail Device Interfaces Web Kiosk Mobile POS Pocket PC E-Mail Fax Retail Channels Online Stores Catalog / Phone Online Catalog Content In-Store Signage Store Personalized Promotional Catalog Content Attract Promotions Management Management Promotions (Digital) Catalog Promotions Catalogs Management Management Product WishList Personalizati POS Kiosk Catalog Transact Advisor ESL Call Center Mgmt on Systems Services Management Order Fulfill Applications Pricing Order Checkout Shopping Barcode Capture Pricing Item Locator Pricing Service Capture Management Buddy Scanners StoreLocator Shipping Inventory StoreLocator Shipping Inventory Inventory Cross Layaway Load Services Services Management Infrastructure Services Services Management Management Channel Svc Management Balancing Order Status Order Reviews & Labor Store Other Store Returns Order Status Order Reviews & &Notification Management Feedback Management Dashboard Systems Management &Notification Management Feedback Special Technical Infrastructure orders Central Retail Functions Service Merchandising Logistics & Distribution Payment Authorization Inventory Warranty & Services Management Management delivery Subscription Systems Pricing Delivery Systems Marketing Procurement Systems 3rd party Invoice management Order Management Returns Loyalty Programs Promotions partners Technical Infrastructure Central Office Functions HR Systems Finance Systems E-learning Systems Labor Distribution Systems Information Systems Management Source: Wipro Retail 31 © 2009 Wipro Ltd - Confidential
  • 32. Future State Architecture 32 © 2009 Wipro Ltd - Confidential
  • 33. Impact of Changes on Architecture (1-3 years) Plan Buy Move Sell Corporate Globalization Customer & Competition Partner Merchandize Warehouse Relationship Marketing Finance Planning Management Management Green Business Financial Purchase Order Transportation Selling HR Planning Management Management Globalization Product Supply Chain Replenishment Order Lifecycle Real Estate Planning & Allocations Management Management Business Inventory Store Transfers IT Intelligence Management Operations Customer & Competition Return to Returns Vendor Impact Level High Medium Low 33 © 2009 Wipro Ltd - Confidential
  • 34. Future State Architecture Themes • Customer centric • Real time and agile • Green Business • Service Oriented Business • Global partners • Outsourcing • Innovation • Diversification 34 © 2009 Wipro Ltd - Confidential
  • 35. Future State Architecture - View1 Changing Customers Segmentation Tech Savvy Global Real time Demanding Unified Brand Image via Responsive Services Customer Core Competency Services Adaptive and Innovative Retailer Outsourced Outsourced Services Services Extended Retailer Partnerships Global Adaptive Green 35 © 2009 Wipro Ltd - Confidential
  • 36. Future State Architecture – View 2 Customers (Global, Time strained) Changing Characteristics Demographics Needs & Wants Choice Retailer (Agile, Service Oriented) Core Competency Services Customer Brand Partner Innovation Management Management Management Retailer Partners (Responsive, Global, Trusted) Outsourced Services Product Corporate Supply Chain Management Services 36 © 2009 Wipro Ltd - Confidential
  • 37. Future State Architecture – View 3 Customers (Global, Time strained) Changing Characteristics Demographics Needs & Wants Choice Retailer (Agile, Service Oriented) Core Competency Services Private Customer Brand Partner Cloud Innovation Management Management Management Candidates Retailer Partners (Responsive, Global, Trusted) Outsourced Services Public Product Corporate Cloud Supply Chain Management Services Candidates SOA Cloud BPM BI RFID Web 3.0 37 © 2009 Wipro Ltd - Confidential
  • 38. Future State Architecture – View 4 Retail Device Interfaces Web Kiosk Mobile POS Pocket PC E-Mail Fax Retail Channels Online Stores Catalog / Phone Online Catalog Content In-Store Signage Store Personalized Promotional Catalog Content Promotions Management Management Promotions (Digital) Catalog Promotions Catalogs Management Management Product WishList Personalizati ESL POS Kiosk Catalog Attract Advisor Mgmt on Systems Services Management Call Center Order Applications Pricing Transact Order Checkout Shopping Barcode Capture Pricing Item Locator Pricing Capture Management Buddy Scanners Fulfill StoreLocator Shipping Inventory StoreLocator Shipping Inventory Inventory Cross Layaway Load Services Services Management Services Services Management Management Channel Svc Management Balancing Service Order Status Order Reviews & Labor Store Other Store Returns Order Status Order Reviews & Infrastructure &Notification Management Feedback Management Dashboard Systems Management &Notification Management Feedback Technical Infrastructure Central Retail Functions Merchandising Logistics & Distribution Payment Authorization Inventory Warranty & Services Management Management SOA Marketing Procurement Systems Subscription Systems Pricing Delivery Systems BI BPM Invoice management Order Management Returns Loyalty Programs Promotions Cloud Technical Infrastructure RFID Central Office Functions Web 3.0 HR Systems Finance Systems E-learning Systems Labor Distribution Systems Information Systems Management Source: Wipro Retail 38 © 2009 Wipro Ltd - Confidential
  • 39. Architecture Strategies (1-3 years) • Analytics (BI, Real-time Analytics) Customer focused growth • Web 3.0 including Social Networking • Customer Data Security • APR Efficiency driven cost • Cloud • SaaS/SOA reduction • BPM, Legacy Remediation, Next-gen Portals (Web 3.0) • Capture and standardize internal processes and Globalize scale of frameworks (core EA) operations • Offshore IT services and global delivery model • Internationalization in the COTS products • Green Initiatives The emerging technology themes like Cloud, SaaS, Web 3.0 are more inclined to be adopted and introduced by the technology/packages solution vendors 39 © 2009 Wipro Ltd - Confidential
  • 40. Thank You Lakshmana Kattula lakshmana.kumar@wipro.com +44-7766691197 © 2009 Wipro Ltd - Confidential