Making Omnichannel Commerce Work with the Latest Technology Innovations

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2 Making Omnichannel Commerce Work with the Latest Technology Innovations Adam Silverman, Principal July 1 st, 2015

3 The pace of change is accelerating faster than anticipated a year ago. Blake Nordstrom, President of Nordstrom April Forrester Research, Inc. Reproduction Prohibited 3

4 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), Forrester Research, Inc. Reproduction Prohibited 4

5 Agenda The Emergence Of The Connected Customer How Omnichannel Technology Creates Opportunities In Retail How Should Retailers Respond 2015 Forrester Research, Inc. Reproduction Prohibited 5

6 Where the transaction occurs is irrelevant 2015 Forrester Research, Inc. Reproduction Prohibited 6

7 52% of store sales are influenced online Sources: Forrester Research US Cross-Channel Retail Sales Forecast: 2014 To 2018, media.pathfinder.gr/cman_img_f/ jpg 2015 Forrester Research, Inc. Reproduction Prohibited 7

8 28% of online sales now from mobile & tablet Source: The State of Retailing Online Base: 41 retailers Forrester Research, Inc. Reproduction Prohibited 8

9 Customers have high expectations when it comes to channel integration 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 A commissioned Forrester study with Purolator, May Forrester Research, Inc. Reproduction Prohibited

10 1/4 won t buy in-store Source: North American Technographics Retail Survey Forrester Research, Inc. Reproduction Prohibited 10

11 Customers research product in-aisle In the PAST 3 MONTHS, have you used your cell phone for any of the following while shopping in a physical store To compare prices To research a product To find or redeem a coupon/coupon code To look up product information To take picture of a product to share with friends To locate a nearby store or to check store hours To access the Internet via guest Wi-Fi To access my shopping list To read customer reviews of a product To check availability of a product 24% 22% 20% 19% 18% 17% 17% 15% 15% 12% Source: North American Consumer Technographics Retail Survey, Base : N=4,814 US Online Adults 18+ (Weekly or more) who are cell phone users 2015 Forrester Research, Inc. Reproduction Prohibited 11

12 Digitally enabled associates add value Forrester s North American Consumer Technographics Retail Survey, Forrester Research, Inc. Reproduction Prohibited 12

13 Digitally enabled associates add value Source: Forrester s North American Consumer Technographics Retail Survey Base 5007 US online adults (ages 18+) 2015 Forrester Research, Inc. Reproduction Prohibited 13

14 In-store data capture has skyrocketed Sources: RetailNext 2015 Forrester Research, Inc. Reproduction Prohibited 14

15 Beacon Trials Enter The Retail Space Source: Forrester s Q Global Mobile Executive Online Survey. Base: 72 digital business professionals (multiple responses accepted) 2015 Forrester Research, Inc. Reproduction Prohibited 15

16 12% Only of enterprise data in used for analytics Sources: Forrester s The Forrester Wave: Big Data hadoop Solutions, Q report 2015 Forrester Research, Inc. Reproduction Prohibited 16

17 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, Q Forrester Research, Inc. Reproduction Prohibited 17

18 Personalization at the top of the priority list Unified customer account across channels 13% 19% Cross channel loyalty rewards 12% 19% 24% 28% In-store capture 29% 10% 10% Making in-store inventory 20% 13% 9% information available online Buy online, ship to store 18% 13% 7% Buy in-store, ship to customer 17% 11% 8% Ship from Store 13% 13% 12% In-store mobile/tablet POS devices for associates 13% 12% 13% Buy online, pick-up in-store 13% 12% 10% 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 Source: Q Global ebusiness And Channel Strategy Professional Online Survey. Base: 79 ebusiness & channel strategy professionals 2015 Forrester Research, Inc. Reproduction Prohibited 18

19 Agenda The Emergence Of The Connected Customer How Omnichannel Technology Creates Opportunities In Retail How Should Retailers Respond 2015 Forrester Research, Inc. Reproduction Prohibited 19

20 Four Key Barriers Hold Back Innovation 2015 Forrester Research, Inc. Reproduction Prohibited 20

21 #1 Poor store connectivity prevents modern retail apps from being effective 2015 Forrester Research, Inc. Reproduction Prohibited 21

22 #2 Retail store systems aren t integrated 2015 Forrester Research, Inc. Reproduction Prohibited 22

23 #3 Existing systems can t provide realtime data insights across all channels 2015 Forrester Research, Inc. Reproduction Prohibited 23

24 #4 Retail teams are still siloed 2015 Forrester Research, Inc. Reproduction Prohibited 24

25 The Digital Store Platform Emerges

26 Agenda The Emergence Of The Connected Customer How Digital Creates Opportunities In Retail Recommendations 2015 Forrester Research, Inc. Reproduction Prohibited 26

27 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 2015 Forrester Research, Inc. Reproduction Prohibited 27

28 Thank you Adam Silverman forrester.com

29 Fujitsu Interstage Retail Agility Keith Swenson VP of R&D, Fujitsu America July 1 st 2015 Connect. Challenge. Inspire FUJITSU

30 Fujitsu global ICT provider 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 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 FUJITSU

31 Omni-channel Integration Opportunity FUJITSU

32 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 FUJITSU

33 Omni-channel Experience by the Numbers 80% of store shoppers check prices online 1 $1.1 trillion store sales were influenced by the web 2 $252 $12 made on smartphones 3 e-retailers in billion retail sales billion in sales for US 1-2. MIT Beyond the Checkout Cart 3. Forrester Research, Inc Forrester, Inc FUJITSU

34 Silos Are the Achilles Heel of Retail Technology Store Catalog Online Mobile FUJITSU

35 Omni-channel Commerce Gap Omni-channel Ideal vs. Retailer Realities Nearly three-quarters of customers regard in-store stock level information as critical for their purchase decision. 71% 32% But only about a third of retailers offer instore stock-level information today. Half want to collect orders in store. 50% 36% But less than half of retailers offer in-store pick up. Many expect orders to be ready for pick up within 1 hour. 41% 55% Only slightly more than half of retailers fulfill their expectations. 40% of retailers reported that they are having difficulty integrating backoffice technology across all their channels Forrester Research, Inc FUJITSU

36 Omni-channel Experience is High Priority Forrester Research, Inc FUJITSU

37 Technology Enabling the Experience FUJITSU

38 Unified Commerce Platform Real-time Task Management Customer Devices Social Media Integration FIN INV MFG Customer & Associate Stations Real-Time Retail Associate POS Web Site CRM Middleware BI Rules Engine Unified Commerce Enterprise Boston Retail Partners, FUJITSU

39 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 FUJITSU

40 Introduction to Interstage Retail Agility FUJITSU

41 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 FUJITSU

42 Powering Unified Commerce: Interstage Platform Real-time Task Management Customer Devices Social Media Integration FIN INV Fujitsu Interstage Retail Agility MFG Customer & Associate Stations Retail Framework Web Site Business Process Management Composite Application Framework Business Rules Master Data Management Analytics Associate POS SOA Integration CRM BI FUJITSU

43 Key Differentiators Retail-aware business processes, analytics, rules, integration, and customizable GUIs Automatic Process Discovery to automatically discover and visualize business process flows, and provide monitoring, alerting and analytics 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 humanto-human workflows, system-to-system integration-type interactions and hybrid processes Designed to support multi-tenancy and cloud deployment Modern and open platform, built on a secure, highly available and scalable architecture FUJITSU

44 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 FUJITSU

45 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 FUJITSU

46 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 FUJITSU

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