DISRUPTIONS IN FUEL RETAILING -

STANDARDS FOR THE FUTURE

NOVEMBER, 2016

FUEL RETAILING

• Conceptually a forecourt providing a short stop for mobile

consumers to

• Refuel and/or

• Do vehicle maintenance (car wash, tires etc.)

• Park to make a quick stop for convenience and food

• A box (convenience store)

• The peculiarities of hydrocarbon fuels dispensed have

driven the need for tailored standards.

NEXT 5 YEARS

THE FORECOURT – RATES OF DISRUPTION

• Scenario 1: Hydrocarbon fuel consumption will be stable or increase.

The forecourt remains – what happens here?

• Scenario 2: Hydrocarbon fuel consumption will decrease slowly –

forecourt remains – slow transition to alternative uses of the forecourt

• Scenario 3: Rapid decline (disruptive) in fuel consumption – dramatic

change in the forecourt needed.

• Which one would you say is most likely?

4

CIRCLE K

We are a family of merchants.

WE WILL STILL BE IN BUSINESS DOING WHAT WE DO

BEST – SERVING OUR CUSTOMERS.

FAST AND FRIENDLY SERVICE.

GREAT PRODUCTS FOR PEOPLE ON THE GO.

EASY VISITS.

PROVIDING

SOME EXAMPLES OF NEW SERVICES?

• Pitstop for automated vehicles – maintenance

• Electric charging stop + extras for electric vehicles

• Refueling etc. For shared economy

• Fullfillment point:

• Drone landing base for pickups, delivery and storage.

• Cross-merchandising with other retailers

• Cycle parking and wash while refueling humans

• Hydrogen cell refueling

• Extending the box

THE ROLE OF TECHNOLOGY

AS A CIO I MUST PREPARE FOR ALL SCENARIOS

MENTIONED. BUT – THE REAL DISRUPTIONS FROM

MY PERSPECTIVE ARE COMPLETELY DIFFERENT.

WHAT’S UP FOLKS?

• «The Connected customer» and being connected to our customers

− Connected to the customer’s connections

− Connections to the customer’s social spaces

− Connections to the customer’s work spaces

− Connections to the customer’s facilities spaces (banking,

payments etc.)

THE CONNECTED CUSTOMER

• Rapid adaption to the customer’s changing needs

• Adjustment to market changes – proactive services to the customer

• Easy visits – simplicity

• Ditto for all partners, vendors, commercial ecosystem

• Ditto for public offices, compliance

• Ditto for all internal usage and operational efficiency

WHAT ABOUT THE OTHERS?

WHERE’S THE REAL DISRUPTION?

• Connectivity – globally connected people and now

connected things (IoT)

• Massive data availability and potential insights

• Supercomputing at datacenters and potentially in your hand

or car or bike (Public/private clouds etc.)

• Hardware and software development – leading to self

regulating systems and progressively more intelligent

systems (AI ultimately)

• Security etc. Including privacy

• Ethics and legislation – including ecology etc.

WHAT IF WE DON’T HAVE STANDARDS IN THE

DISRUPTIVE SCENARIO?

• Transferability becomes more difficult for multi-site operator

• Interoperability of devices/offers is limited

• Increased complexity

• Inter-communication becomes harder

• Limits pace of change and opportunities to introduce new

offers

• Limits opportunities to select best in breed

WHAT ARE THE OPPORTUNITIES FOR IFSF?

• Enable the Retailer to serve the customer better, faster and

with the products that they want:

• Activities already well advanced:

• Ability to deliver any fuel/energy source

• Mobile payment

• Other opportunities:

• Digital Marketing

• Connectivity with the vehicle

• Working with others to ensure their standards fit the

environment

SOME PRINCIPLES

• Remain connected to the needs of the sector as the make-up of the

participants and their needs change

• Keep looking ahead for new challenges and opportunities and ensure that

IFSF helps the industry to meet them

• Avoid reinventing the wheel – work with other standards bodies to ensure

compatibility, avoid duplication and, when necessary to coexist, define the

differences

Thank you!

Questions?