Retail at Hyperspeed

Ray MajorRetail World Conference + Tradeshow

13th-14th May 2013

Melbourne, Australia

How the Internet of Everything is

permanently changing consumer behavior in

turning the retail world upside down.

Adapt or Die

Long wave Economic Cycles

Railway, Steel

1830-1880

Electrification

1880-1930

Automobiles

Petrol

1930-1970

Tech

Info. / Comm

1970-2010 Bio/nano

tech

2010- 20xx

Impact on Retail:

• Gen. -> Dept. Store

• Mass Distribution

• Catalogs

Impact on Retail:

• National Brands

• Chain Stores

• Lights

• Refrigeration

Impact on Retail:

• Supermarkets

• Shopping Centers

• Indoor Mall

Impact on Retail:

• Scanners

• Analytics

• Category Killers

• Internet redefines

retail

• 70% on-liners

make purchase

Confluence of Technology• 2005 – Big Data• 2010 – HTML 5• 2010 – iPad• 2015-- Internet of

Everything

Today’s Priorities

84% of mobile users keep their device within 10 feetat all times.

“Phones” moved from discrete solution to an engrained part of daily life.

Stops being a technology --

becomes “embedded”

“assumed”

and “integrated”

99% of the physical world is

not connected to the internet

The internet of

EVERYTHING

The Internet of Everything

connects the Physical World

to the Internet

Using Microsensors,

everyday objects become

connected and intelligent

Decisions happen in

real time and in the

background

0

10

20

30

40

50

2002 2007 2012 2017

The Internet of Things

50,000,000,000

things connected by

2020

More connected devices

than people on earth

Big Data

o By 2015

o 1 Zettabyte of data will flow over the internet

o By 2020

oData Production up 44 fold

o B2B and B2C internet transactions = 450 billion per day

Earth

Pluto

Stack of books 20 times

“Real-time” becomes

“Real-time”

o There are more mobile devices than people on earth

o By 2016 –

oMobile Speed increases 9 fold

oMobile Traffic increases 18 fold

oHome Network speeds increase 20 fold

o video calling increases 25 fold

o By 2020, anyone can broadcast anywhere, to anybody – on any device.

Smart World 2023

What differentiates Best in Class

Companies from the rest?

“the ability to exploit the data

and transform it into useable

business insight”

Aberdeen Group 2011, survey of 370 executives

What type of advantage do Best in

Class Companies Enjoy?

Aberdeen, Harte/Hanks, 2011

• Missed or unidentified sales opportunities

• Inefficient geographic selling

• Inflexible product lines

• Lost sales due to shifting competitive pressures and poor

timing

• Little holistic assessment of a customers wants and needs

Today’s Retailing Challenges

Today - 2013

IoE Analytic Framework

Identify Design Inform Distribute

The Key to success is bringing together all

the disparate data and making sense of it in

real time

Comprehensive or Holistic Business Intelligence Solution

Identify at Hyperspeed

Identify

Massive amounts of new data

Consumer

are Empowered in Real Time

The power shifts from retailers to consumers

Data from Consumers impacts brand

awareness and cache’

1. Scan

2. Track

3. Rate

4. Review

Retailing occurs in real time

Design at Hyperspeed

Identify Design

Most companies BICRM

POS

CRM

POS

Not Easy

Your Business

Intelligence Assets

Cluster Analysis

Simulation Modeling

Regression Analysis

Descriptive Statistics

Prescriptive(what actions

should be taken)

Prediction

(What might happen)

Forecasting

(What might happen)

Monitoring (what’s

happening now)

Analysis

(why did it happen)

Analytic Continuum

High

Low

Co

mp

lexi

ty

Business Value

Reporting

(what happened)

OLAP and Visualization

Behavioral Questions “Who are my best customers?Where do they live?What is their most likely next purchase?

Quantity Questions How much inventory do we need to carry?What stock levels will be left at the EOM?What will Sales finish at this year?

Optimal Outcome Questions (potential outcomes based on complex interactions)How can we achieve the best outcome?What is the impact of a cold winter on our business?

Inform at Hyperspeed

Identify Design Inform

Business Intelligence (BI) is the ability of an organization to collect, maintain, and organize data.

Human Intelligence (HI)

the property of mind that encompasses the

capacities to reason, plan, problem

solve, think, comprehend ideas, use

languages, and learn.

Data are Dumb,

Humans are Smart

Business Intelligence

Systems

Distribute at Hyperspeed

Identify Design Inform Distribute

New Retailing - Big Data and

Personalization

• Bridge between online

and Brick-and mortar

• SEAMLESS

SHOPPING

EXPERIENCE

• Personalization

• Recognize who you are

• Personalized promotional offer

• Knows your favorite fit and size

• Match transaction to buying patterns

• Issue incentive

Personal Shopper

Hyperspeed Cross-sell

• Missed or unidentified sales

opportunities

• Inefficient geographic selling

• Inflexible product lines

• Lost sales due to shifting

competitive pressures and poor

timing

• Little holistic assessment of a

customers wants and needs

• Increased sales from real-time

market assessments and reactions

• Increased selling from location-

based selling

• Products are designed and built in

real time driven by consumer

• Increased sales by directly tying

pricing to current selling situations

to customer ability to pay

• Increased sales from improved

coordination with other products

and services

Potential of the Internet of

Everything

Today - 2013 Tomorrow - 2023

Which Retailers will be successful in

the coming decade?

“the ability to exploit the data

and transform it into useable

business insight”

Aberdeen Group 2011, survey of 370 executives

Those with:

Retail at Hyperspeed

Ray MajorRetail World Conference + Tradeshow

13th-14th May 2013

Melbourne, Australia

Thank You