making omnichannel commerce · to access my shopping list to access the internet via guest wi-fi to...

Making Omnichannel Commerce

Work with the Latest Technology

Innovations

Adam Silverman, Principal Analyst

July 1st, 2015

@AdamKSilverman

© 2015 Forrester Research, Inc. Reproduction Prohibited 3

“The pace of change is accelerating faster than anticipated a year ago.”

Blake Nordstrom,

President of Nordstrom

April 2014


Mobile connects us wherever we go

Base: 38,146 US online adults (18+) who personally use a smartphone to go online

*Base: 23,511 US online adults (18+) who personally use a tablet to go online

Source: Forrester’s North American Consumer Technographics® Online Benchmark Survey (Part 1), 2014


Agenda

› The Emergence Of The Connected Customer

› How Omnichannel Technology Creates Opportunities In Retail

› How Should Retailers Respond


Where the transaction occurs is irrelevant


of store sales are influenced online

52%

Sources: Forrester Research US Cross-Channel Retail Sales Forecast: 2014 To 2018, media.pathfinder.gr/cman_img_f/9549445219531437587.jpg


of online sales now from mobile & tablet

28%

Source: The State of Retailing Online 2015. Base: 41 retailers.

© 2015 Forrester Research, Inc. Reproduction Prohibited

73% - expect to click and collect

86% - expect to return online orders in the store

89% - expect to view the in-store inventory of

products online

Customers have high expectations

when it comes to channel integration

A commissioned Forrester study with Purolator, May 2014


won’t buy in-store

1/4

Source: North American Technographics Retail Survey 2013


12%

15%

15%

17%

17%

18%

19%

20%

22%

24%

To check availability of a product

To read customer reviews of a product

To access my shopping list

To access the Internet via guest Wi-Fi

To locate a nearby store or to check store hours

To take picture of a product to share with friends

To look up product information

To find or redeem a coupon/coupon code

To research a product

To compare prices

In the PAST 3 MONTHS, have you used your cell phone for any of the following while shopping in a physical store

Source: North American Consumer Technographics Retail Survey, 2014. Base : N=4,814 US Online Adults 18+ (Weekly or more) who are cell phone users

Customers research product in-aisle


Digitally enabled associates add value

Forrester’s North American Consumer Technographics Retail Survey, 2014


Source: Forrester’s North American Consumer Technographics Retail Survey 2014. Base 5007 US online adults (ages 18+)

Digitally enabled associates add value


In-store data capture has skyrocketed

Sources: RetailNext


Beacon Trials Enter The Retail Space

Source: Forrester’s Q2 2014 Global Mobile Executive Online Survey. Base: 72 digital business professionals (multiple responses accepted)


of enterprise data in used for analytics

12% Only

Sources: Forrester’s “The Forrester Wave: Big Data hadoop Solutions, Q1 2014” report


45% of consumers have chosen,

recommended, or paid more for a brand that provides a personalized

service or experience

Sources: Forrester’s North American Consumer Technographics Brand Compass Survey, Q3 2014


Source: Q1 2014 Global eBusiness And Channel Strategy Professional Online Survey. Base: 79 eBusiness & channel strategy professionals

Personalization at the top of the priority list

Unified customer account across channels 28% 19% 13%

Cross channel loyalty rewards 24% 19% 12%

In-store email capture 10% 10% 29%

Making in-store inventory information available online 9% 13% 20%

Buy online, ship to store 7% 13% 18%

Buy in-store, ship to customer 8% 11% 17%

Ship from Store 12% 13% 13%

In-store mobile/tablet POS devices for associates 13% 12% 13%

Buy online, pick-up in-store 10% 12% 13%

“When, if at all, are you planning to implement the following capabilities?”

We already support this capability

Within the next 12 months

12 to 24 months


Agenda


› How Omnichannel Technology Creates Opportunities In Retail

› How Should Retailers Respond


Four Key Barriers Hold Back

Innovation


Poor store connectivity prevents modern retail apps from being effective

#1


Retail store systems aren’t integrated

#2


Existing systems can’t provide real-time data insights across all channels

#3


Retail teams are still siloed

#4

The Digital Store Platform Emerges


Agenda


› How Digital Creates Opportunities In Retail

› Recommendations


Your Roadmap To Building Your Future

Retail Store:

1. Expose inventory visibility

2. Drive towards a single view of the customer – align teams too

3. Prepare for real time data driven business – online & stores

4. Optimize customer and staff mobile experiences

5. Build your digital store platform

forrester.com

Thank you

Adam Silverman

415.294.8177

[email protected]

@AdamKSilverman

29 © 2015 FUJITSU

Connect. Challenge. Inspire.

Fujitsu Interstage Retail Agility

Keith Swenson VP of R&D, Fujitsu America July 1st 2015

30 © 2015 FUJITSU

Fujitsu – global ICT provider

Fujitsu is a leading provider of

Information and communication

Technology (ICT) business solutions

for the global marketplace, offering a

full range of technology products,

solutions and services.

Headquarters: Tokyo, Japan

Established: 1935

Net sales: US$ 46.2 billion

No. 4 globally, No. 1 Japan

159,000 employees

Supporting customers in more than 100

countries

5% R&D spend (US$ 2.2 billion)

Research facilities: Japan, US, UK, Germany,

China, Singapore

31 © 2015 FUJITSU

Omni-channel Integration Opportunity

32 © 2015 FUJITSU

Customers Don‘t Think in Channels...

Customers now have the freedom to achieve their goals throughout the shopping process…

…using whichever

channels and touch points they

prefer.

33 © 2015 FUJITSU

Omni-channel Experience by the Numbers

$1.1 trillion store sales were influenced by the web2

80% of store shoppers

check prices online1

$12 billion retail sales

made on smartphones3

$252 billion in sales for US

e-retailers in 20134

1-2. MIT “Beyond the Checkout Cart” 3. Forrester Research, Inc. 2015 4. Forrester, Inc.

35 © 2015 FUJITSU

Omni-channel Commerce Gap

71%

50%

41%

But only about a third of retailers offer in-store stock-level information today.

32% Nearly three-quarters of customers regard in-store stock level information as critical for their purchase decision.

Many expect orders to be ready for

pick up within 1 hour.

40% of retailers reported that they are having difficulty integrating back-office technology across all their channels

Only slightly more than half of retailers fulfill their expectations.

Half want to collect orders in store. But less than half of retailers offer in-store pick up. 36%

55%

Omni-channel Ideal vs. Retailer Realities

Forrester Research, Inc. 2014

38 © 2015 FUJITSU

Unified Commerce Platform

Unified Commerce Enterprise

BI CRM

FIN

INV

MFG

Customer

Devices

Web Site

Real-Time Retail

Middleware

Customer &

Associate

Stations Social Media

Integration

Rules Engine

Associate

POS

Real-time Task Management

Boston Retail Partners, 2015

39 © 2015 FUJITSU

Technology Enablers

Middleware/SOA/ESB

Middleware/SOA/ESB Robust middleware or service-oriented architecture (SOA) layer for integration or the

“glue” between retail systems Essential in effectively uniting various retail systems to deliver unified commerce

experience.

Master Data Management - MDM Maintains a single version of the truth for product, customer, vendor, location and

asset information. Ensures data is consistent, accurate and up-to-date.

Business Process Management - BPM Enables the definition, execution, monitoring, and optimization of business

processes across the retail enterprise. Deliver unified customer experience across all customer touch points, efficiency and

consistently.

Real-time Analytics Enables retailers to analyze customer, transaction and inventory data Better understand your customers and your business.

41 © 2015 FUJITSU

What is Interstage Retail Agility?

Software platform - enable retailers meet business operations challenges with process-centric solutions

Task management and process automation

Automatic discovery, monitoring, and alerting

Rules management

Agile GUI customization

Integration - Master Data Management, Data Transformation, Connectors (SAP, Oracle, DBs, etc.)

On-premise or cloud deployment options

Framework for delivering and customizing operational retail applications

Improve Store operations with analytics-driven “smart” processes

Task/workflow management enabling omni-channel initiatives

Provide complete, accurate view of the customer and inventory

Integrating back-office technology across multiple channels

Connecting legacy POS, eCommerce, ERP, and mainframe systems

Fujitsu Solution - assets and capabilities to deliver global retail solutions

42 © 2015 FUJITSU

Fujitsu Interstage Retail Agility

SOA Integration

Business Process Management

Composite Application Framework

Retail Framework

Business Rules

Master Data Management

Analytics

Powering Unified Commerce: Interstage Platform

BI CRM

FIN

INV MFG

Customer

Devices

Web Site

Customer &

Associate

Stations Social Media

Integration

Associate

POS

Real-time Task Management

43 © 2015 FUJITSU

Modern and open platform, built on a secure, highly available and scalable architecture

Key Differentiators

Retail-aware business processes, analytics, rules, integration, and customizable GUIs

A single platform, combining the worlds of Integration, Business Process Management, Rapid Application Development and Analytics

Support task management for any type of workflow including human-to-human workflows, system-to-system integration-type interactions and hybrid processes

Designed to support multi-tenancy and cloud deployment

Automatic Process Discovery to automatically discover and visualize business process flows, and provide monitoring, alerting and analytics

44 © 2015 FUJITSU

Retail Agility Target Use Cases: Store Operations

Monitor and respond in real-time Effectively monitor in-store task management and adherence to SOPs and KPIs with

BPM Gain visibility into all stores and react proactively before problems occur –

management by exception Use BPM to set rules to handle anomalies

Use Case Scenario Retailer running market specific promotional event on a fast moving, high-margin

item in all stores Track store level execution of related tasks in all stores through real-time merchandise

action plan conformance and KPI monitoring Results can be monitored through task management, labor scheduling, and

ultimately sales data in real time Detect, report and send alerts to Sales, Operations and Merchandising teams & notify

the Store Manager before event ends and sales goal is missed Gain insight through the reported tasks and data from across the stores to quickly

identify problems and proactively intervene before it’s too late

45 © 2015 FUJITSU

Retail Agility Target Use Cases: Supply Chain

Enterprise inventory visibility…in real-time Real-time inventory visibility throughout supply chain with Middleware/SOA

integration BPM & business rules help improve inventory fulfillment routing and margin

optimization

Use Case Scenario Provide customer with real-time visibility into store inventory to confirm a store has

the product with the exact features, color or style Retailer may not have the exact item the customer is looking for in stock and in the

store at that moment Perform a real-time, enterprise-wide store inventory lookup to fulfill the order

from another store or distribution center Integrate commerce systems, order management, merchandising and

warehouse management system (WMS) to assemble a comprehensive view of their complete inventory in real-time

Locate the product and notify the customer or sales associate that it can be delivered quickly or picked-up.

46 © 2015 FUJITSU

Retail Agility Target Use Cases: Customer Engagement

Personalized selling and promotions Provides 360-degree view of customer: past purchases, preferences, likes,

online & off-line BPM/business rules prompt sales associate with pre-defined processes for

guided selling

Use Case Scenario Alert store associates when customers enter the store and identify the

customer using WiFi and Beaconing technologies Enable associate to leverage personalized information about the customer’s

shopping history and preferences Customer shopping profile can be accessed in real-time and presented to a

sales associate – providing a powerful 360-degree view of the customer including past purchases, preferences and online and in-store browsing history

Prompt the sales associate with pre-defined processes for guided selling customer mentions she is looking for a new scarf and the sales associate

can instantly provide recommendations based on items that can be paired with the customer’s likes

making omnichannel commerce · to access my shopping list to access the internet via guest wi-fi to...

Documents