the new world of retail - intersystems...50% 40% 30% 20% 10% 0% retail (n = 121) typical performers...

Joe Lichtenberg

Product & Industry Marketing Director

[email protected]

The New World of Retail

1 | © InterSystems Corporation. All rights reserved. |

Retail – An Industry Disrupted


Retail – An Industry Disrupted

Online sales as a percentage of total sales continues to grow every quarter

Image source: U.S. Census Bureau News, February 17 2017


The role of IT and the CIO in retail is changing

IT must become strategic partners with the line of business and senior

management

IT must work with the business to identify, prioritize, and implement

innovative new services to meet business goals

IT is no longer viewed as just a “cost center”


Digital Transformation – The Recipe for Survival

Retailers must focus their

digital efforts on improving

the customer experience

• “Unified Retail Commerce”

• Personalized experiences

throughout the entire

customer journey

Distribution, sales and marketing

Corporate oversight and control

In what area will digital have the greatest

impact on your business

0% 20% 40% 60% 80%

Customer experience

Product and service offering

Fulfillment/delivery

Not sure

Other

Percentage of Respondents

Source: Gartner 2017


Unified Retail Commerce

Enabling consistent, accurate, real-time interactions between the enterprise

and the customer across all customer touchpoints

• Integration of internal and partners’ applications

• Seamless composite business process flows connecting disparate business systems

• Real-time role-based visibility into process flows and data by IT, partners, customers

• Integrated support for web, mobile, kiosks, etc.

• And more…


Personalized Customer Experiences

Comprehensive, accurate, and personalized representation of each visitor

and customer

Target individual customers at every stage of the customer journey

• Incorporation of data from sales channels, brand lines, internal systems, and external

sources (social media, data brokers)

• More types of analytics on more data

― Predictive analytics

― “Big data” analytics

― Semantic and sentiment analysis of text

― Real time analytics @ POS (store, web), use of “smart devices”

― Concurrent transactional - analytic processing


Technology Requirements in Retail

Percentage of

Respondents

Advanced

Analytics

Internet of

Things (loT)Digital

Security

Business

Algorithms

Machine

Learning

Virtual

Customer

Assistants

Augmented

Reality

Block-

chain

Autonomous

Vehicles

Smart

Robots

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Retail (n = 121)

Typical Performers (n = 2,007)

Overall Total (n= 2,331)

Top Performers (n = 164)

Trailing Performers (n = 160)

Source: Gartner 2017In your opinion, which three of these technologies have the most potential to change your organization over the next five years?



Percentage of

Respondents

Advanced

Analytics

Internet of

Things (loT)Digital

Security

Business

Algorithms

Machine

Learning

Virtual

Customer

Assistants

Augmented

Reality

Block-

chain

Autonomous

Vehicles

Smart

Robots

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Retail (n = 121)







IoT in Retail(by 2025)

Source: McKinsey Global Institute. Internet of Things, Mapping the value beyond the hype


Showing Top Nine Responses for

Overall Respondents

Retail

(n = 120)

Top Performers

(n = 162)

Typical Performers

(n = 1,976)

Trailing Performers

(n = 160)

Overall Total

(n = 2,299)

Skills/Resources 23% 27% 26% 22% 26%

Funding/Budgets 15% 19% 17% 16% 17%

Management Sponsorship

/Understanding/Relationships5% 10% 8% 16% 8%

Culture/Structure of Organization 8% 4% 8% 10% 8%

Technology Challenges (Legacy,

Security, etc.)7% 8% 5% 3% 5%

Lack of leadership /Planning/Strategy 10% 4% 5% 6% 5%

Capacity/Willingness to Change 7% 2% 5% 4% 4%

It/Business Alignment 6% 6% 5% 3% 4%

Business Value of IT 3% 2% 4% 7% 4%

Percentage of Respondents

What is your biggest barrier to achieving your objectives in your role?

Coded open-text responses.

Skills Gaps and Budgets are the Top Barriers to Success

Source: Gartner (Feb 2017)


Complexity of the Tech Stack

Business Intelligence iPaaS

Enterprise Service Bus

Changed Data

Capture

Extract-Transform-Load


Consolidation Enables Agility

A Data Platform is a computing system for building intelligent, data-rich

applications that:

• Collect, integrate, manage and analyze both structured and unstructured data;

• Support multiple use case scenarios and concurrent workloads (transaction

processing with analytics);

• With embedded, open analytics;

• And data and application interoperability.


DevOps Enables Agility


Multi national company with operations in 45 countries

• $5B+ revenue

• 15,000 employees

• 120 subsidiaries in 40 countries

• 165 years old

Immediate challenges:

• Accelerate digital transformation

• Shorten the time to onboard a new business partner

• Eliminate “blind spots” in their business processes

Retail - Customer Use Case


• Integrated business systems supporting all 120 subsidiaries across 40 countries

• Created seamless composite business process spanning all systems and partners

• Eliminated “blind spots” for the business, partners, and customers

• Integration of new systems is more than 60 times faster

• Maintenance requires one-half of one employee’s time



• Launched a new ecommerce channel

• Launched a new retail presence of 80 destination shopping centers supporting the sales of 30,000 products

• Created a financial application spanning 43 different countries and currencies

• Exchange rates, regulatory requirements, hedging, …

• Reduced daily manual effort by 24x

• Created natural language based Digital Help Desk

• Reduced manual effort from IT staff by more than 20x

• Next steps: Expose Digital Help Desk to customers for self service

IT is now viewed as a strategic partner with the line of business



InterSystems IRIS Data Platform® combines a transactional-analytic

processing engine optimized for all types of data – big, small, structured,

unstructured, centralized, decentralized, historical, and real-time

with native interoperability for connecting and creating business

processes among disparate applications and data sources

and an open analytics platform for applying real-time and batch

analytics including business intelligence, predictive models, machine

learning, and natural language processing.

InterSystems IRIS delivers:

Core functionality in one, unified data platform

Immediate insight and actions at the point of transaction

Simplified solutions development and creation

Open interoperability and scalability

Mission critical, enterprise-grade technology with world-class

customer support

Thank you

the new world of retail - intersystems...50% 40% 30% 20% 10% 0% retail (n = 121) typical performers...

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