IBM & Aruba Networks Solutions for Smarter Retail
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1 April 2012 IBM & Aruba Networks Solutions for Smarter Retail
2 Contents Executive Summary Mobility and Smarter Retail The IBM/Aruba Value Proposition for Mobility in Smarter Retail Increase Revenues by Improving the Sales Experience Reduce Expenses by Streamlining Operations Manage Risk by Protecting the Store and its Assets The RoI for Mobility & Wireless in Retail through the IBM and Aruba Offering The IBM/Aruba Portfolio for Smarter Retail Why IBM & Aruba? 2
3 Executive summary To survive and prosper in today s changing retail environment, smart retailers are working with a number of key imperitives, such as delivering a smarter shopping experience The use of tablets, smartphones and supporting WiFi infrastructure which are being rolled out by smart retailers, will dramatically affect how retailing will be conducted and experienced by customers The IBM / Aruba offering has multiple strong value propositions that can enable you to increase revenues by improving the sales experience, reduce expenses by automating inventory management and manage risk by protecting the store and its assets There is a clear and strong RoI for retailers through implementing a mobility solution based on the IBM and Aruba offering for retail IBM and Aruba both have extensive experience within the retail sector, combining our strengths to provide comprehensive end-to-end solutions for smarter retail 3
4 Contents Executive Summary Mobility and Smarter Retail The IBM/Aruba Value Proposition for Mobility in Smarter Retail Increase Revenues by Improving the Sales Experience Reduce Expenses by Streamlining Operations Manage Risk by Protecting the Store and its Assets The RoI for Mobility & Wireless in Retail through the IBM and Aruba Offering The IBM/Aruba Portfolio for Smarter Retail Why IBM & Aruba? 4
5 To survive in today s changing retail environment, smart retailers are working with three key retail imperatives DELIVER A SMARTER SHOPPING EXPERIENCE Enable customers to shop however, whenever and wherever they want. Match inventory and brand experience on the Web, in stores and via mobile devices. RETAIL DEVELOP SMARTER MERCHANDISING AND SUPPLY CHAINS Gather customer information continuously and at every touch point. Manage and deliver assortments based on customer input and insights. BUILD SMARTER OPERATIONS Update systems to better handle today s customer demands. Improve management across labor, assets and business processes. 5
6 These retail imperatives have three dimensions Deliver a smarter shopping experience. Focus on Value: Customer security and confidence Improve efficiency Exploit Opportunities: Increase loyalty Invest in growth plays Protect and acquire talent Act with Speed: Clearly communicate Get the information to act Business performance management and analytics Develop smarter merchandising i and supply chains. Optimize Supply Chain Rationalize Assortments Renegotiate terms Explore New Operating Models Consider Global Expansion Get the information to act Manage business performance Build smarter operations. Reduce SG&A costs Improve efficiency Renegotiate terms Focus on winners Invest in growth plays Explore new operating models Look at acquisitions and alliances Clearly communicate Leverage experience Set the agenda Manage risk 6
7 Tablets, smartphones and supporting WiFi infrastructure will have a significant effect on how retailing is conducted and experienced Smart Customer Shopper Engagement Half the US population owns a smartphone #1 priority it for retailers is to improve customer service (49%) 2/3 of smartphone users research products/prices p 54% of retailers deploying handhelds/tablets for store associates in-store 38% of retailers adding customer WiFi access Source: : The Nielsen Company, "US Smartphone Penetration to Be over 50 percent in 2011," March 2010 Shop.org, comscore and Social Shopping Labs, 2011 RSR Research, June 2010, Aruba State of In-store Mobility Survey, Dec
8 To improve customer service and execution, retailers are tooling up store associates with mobile devices and engaging mobile customers Top Challenges Improving customer service Consistent store execution Top Priorities Better associate tools Engaging mobile customers Top Mobile Application Plans Social media integration Product information/reviews Top Store System Plans Tablet/Handheld purchases 8 Source: Store Systems Study 2011, RIS News, Jan 2011
9 Smart retailers see the clear value on implementing WiFi in their stores to support store associates and better engage customers 9
10 In-store WiFi upgrades are a top IT priority for retailers in Source: Dec 11-Jan 12 survey conducted by Aruba of more than 130 retail IT leaders
11 From a historical focus on expense reduction and on reducing risk, retailers are now looking to mobility as a key tool to increase revenues Reduce Expense Reduce Risk Increase Revenue Automate Protect the store Improve the Engage g inventory against wireless experience with customers management backdoors self-shopping & on their with Wi-Fi & breaches mobile PoS smartphones enabled when in store scanners 11
12 Inventory management is currently the largest use for WLAN, but areas like client WiFi access are the focus during the next 24 months Current use of WLAN in stores Planned additions in next 24 months Source: Retail TouchPoints, January 7th,
13 Contents Executive Summary Mobility and Smarter Retail The IBM/Aruba Value Proposition for Mobility in Smarter Retail Increase Revenues by Improving the Sales Experience Reduce Expenses by Streamlining Operations Manage Risk by Protecting the Store and its Assets The RoI for Mobility & Wireless in Retail through the IBM and Aruba Offering The IBM/Aruba Portfolio for Smarter Retail Why IBM & Aruba? 13
14 IBM & Aruba Solutions for Smarter Retail Deliver a smarter shopping experience and streamline operations through WiFi-enabled solutions combining Aruba MOVE and the IBM portfolio Increase revenue by improving the sales experience Enable staff with WiFi-enabled smart devices to better support customers Reach more customers by driving i promotions through h free guest WiFi Improve engagement with your customers through smartphone apps Reduce queues and maintain the positive experience with Mobile PoS Better connect with your customers through WiFi-enabled Digital Signage Reduce expenses by streamlining operations Facilitate improved inventory management through automated data capture Reduce costs with a consodlidated wireless network and a single device Manage risk by protecting the store and its assets Reduce security breaches through implementing wireless PCI compliance Secure staff, inventory and assets through WiFi-enabled Video Surveillance 14
15 Contents Executive Summary Mobility and Smarter Retail The IBM/Aruba Value Proposition for Mobility in Smarter Retail Increase Revenues by Improving the Sales Experience Reduce Expenses by Streamlining Operations Manage Risk by Protecting the Store and its Assets The RoI for Mobility & Wireless in Retail through the IBM and Aruba Offering The IBM/Aruba Portfolio for Smarter Retail Why IBM & Aruba? 15
16 Challenge: Top Trend: How Apple can you Store emulate Like Experience an Apple Store like experience to improve the customer experience and drive more revenue? European retailer upgraded Wi-Fi to support guest access & 15,000 ipad roll-out across 5,000 stores Leading US luxury retailer upgraded Wi-Fi to support 6,000 ipods/ipads and guest access 16
17 Value Proposition: IBM and Aruba can reduce the cost and complexity of deploying smartphones and tablets with easy selfprovisioning ipad Self Registration Device Fingerprinting Amigopod n AP Mobility Controller Device Visibility Zero IT touch, context aware access Auto-identification of user, device, application Monitoring, reporting per user and per device AirWave 17
18 Challenge: How can you leverage your WLAN network to extend your reach to more customers? Adding in-store WiFi for customers is the top WiFi application focus for retailers in the next 24 months UK grocery retailer piloting Wi-Fi access linked to customer loyalty program. Customer s receive targeted promotions at login US based luxury retailer will be adding customer Wi-Fi access to differentiate service 18 Source: Dec 11-Jan 12 survey conducted by Aruba of more than 130 retail IT leaders
19 Value Proposition: Provide free WLAN network access through which you can offer promotions and understand customer behaviour User Self Registration & Demographic Info Capture Customers Powerful Custom Advertising Branding Module Per User Access Control Compliance, Auditing & Reporting 19 Immediately knowing when clients are going g online in the store Delivering targeted promotions to online clients based on their demography Using location services to proactively send sales reps. to help clients based on their online queries
20 Challenge: How can you better engage your customers in the store using smartphone apps?? ½ of the US population owns a smartphone and 2/3 of them research products/prices in store Retailers plan to develop a number of Mobile Apps. within the next 24 months Mobile Apps. have been identfied as one of the top technologies to improve customer engagement Source: Retail TouchPoints, January 7th,
21 Value Proposition: IBM and Aruba enable in-store smartphone app features that leverage Wi-Fi location, voice and cloud content services Location awareness for in-store navigation/promotion Up to three meters with AirWave AeroScout and Ekahau Integration Wi-Fi voice to differentiate customer service Ability to place Wi-Fi call to in-store associates Voice session prioritization Support for leading SIP and proprietary voice clients Content security services to protect liability & abuse Filter inappropriate content Gain business intelligence CSS Cloud 21
22 Challenge: How can you ensure maintaining the positive customer experience you have created but which can suffer doing the checkout process? What mobile apps. do you plan to add in the next 24 months? A long wait in the checkout line can destroy a previously very positive customer experience that retail stores have worked hard to create Many retail stores are limited in space and cannot build out additional check- out desks Mobile PoS can make more efficient use of existing space by reducing the number of checkout counters Mobile PoS is one of the top investment priorities for retailers in the next 2 years to address checkout pains Source: Retail TouchPoints, January 7th,
23 Value Proposition: IBM and Aruba can provide a solution to reduce queues and maintain the positive customer experience without adding checkout counters or staff by implementing Mobile PoS Aruba Infrastructure Mobile Readers PoS Application Secure Wi-Fi access and device self-provisioning (incl. ios devices) Mag stripe and barcode readers (incl. ios devices) Mobile Point-of-Sale application Reduces queuing Gains in employee Creates new upand improves productivity sell opportunities customer experience 23
24 Challenge: Top Trend: How Apple do you Store better Like reach Experience your customers with in-store promotions? Digital Signage has been identified by Retailers as a top customer-facing enabler By end of 2011, nearly 40% of US Retailers will have or will be implementing Digital Signage solutions Digital Signange provides signficant benefits to Retailers 24
25 Value Proposition: IBM and Aruba provide a solution that supports digital signage to better reach your customers Eliminate display cabling Prices of Wi-Fi capable LCD displays have fallen sharply Aruba Wi-Fi guarantees high quality multi-media Enhance experience with high quality video steaming Ability to place Wi-Fi call to in-store associates Voice session prioritization Support for leading SIP and proprietary voice clients Content delivery via Amigopod Aruba Amigopod can push content and stream videos 25
26 Contents Executive Summary Mobility and Smarter Retail The IBM/Aruba Value Proposition for Mobility in Smarter Retail Increase Revenues by Improving the Sales Experience Reduce Expenses by Streamlining Operations Manage Risk by Protecting the Store and its Assets The RoI for Mobility & Wireless in Retail through the IBM and Aruba Offering The IBM/Aruba Portfolio for Smarter Retail Why IBM & Aruba? 26
27 Challenge: How can you better streamline inventory managment in your stores and warehouses? Inventory management is currently the top WLAN application within stores Challenges with manual paper-based inventory management: Lack of real-time inventory/stock visibility across store front and backroom Costly and labour-intensive manual inventory management and stock counts Lost sales due to stock-outs Results in: Losing customers to your competitors! Source: Retail TouchPoints, January 7th,
28 Value Proposition: IBM and Aruba can provide an end-to-end inventory management solution that spans leading ruggedized devices to streamline your inventory processes Certified Interoperability Proven Solution Unified Management Portal 500+ customers use Aruba Wi-Fi infrastructure for inventory scanning Aruba Air Wave Improved business Enhanced Improved visibility processes employee of inventory/ productivity 28
29 Challenge: Store associates using multiple devices operating on disparate networks are costly, reduce productivity, and importantly, affect the ability to effectively serve customers Stores often have dedicated devices for specific tasks, which can be costly Ruggedized handhelds for inventory mgmt. Phones for voice communication Fixed terminals for stock information Different devices often run on different networks (fixed, wireless, cellular) which adds cost and complexity Servicing clients may involve using more than one device, which can sub-optimize service Multiple devices means more time and cost used to train store associates on each device 29
30 Value Proposition: IBM and Aruba can provide a consolidated wireless network solution combined with one smart device type that can reduce costs while improving customer service Consolidated Wireless network Single Device Support for Indoor and Outdoor Ruggedized AP in Single device for voice NEMA enclosure for Reliable and secure and data applications extending coverage into coverage in dynamically like scanning and cold storage/freezer changing environments inventory look-up and outdoor locations Reduced network Enhanced Improved and device costs employee customer service and complexity productivity 30
31 Contents Executive Summary Mobility and Smarter Retail The IBM/Aruba Value Proposition for Mobility in Smarter Retail Increase Revenues by Improving the Sales Experience Reduce Expenses by Streamlining Operations Manage Risk by Protecting the Store and its Assets The RoI for Mobility & Wireless in Retail through the IBM and Aruba Offering The IBM/Aruba Portfolio for Smarter Retail Why IBM & Aruba? 31
32 Challenge: Retailers are subject to 12 sections of PCI 2.0 requirements and depending on how they use WLAN, they will subject to the following requirements. How can you address this? 2.1.1: Don t Use Defaults 2.2: Standard Configuration 4.1.1: Better Than WEP 61: 6.1: Get latest patches 7.2: Role-based Access 10: Monitor Access : Inventory WLAN : Inventory WLAN 1.2.3: Firewall WLAN 1.2.3: Firewall WLAN 9.1.3: Physical Security 9.1.3: Physical Security 11.1: Wireless Scanning/NAC 11.1: Wireless Scanning/NAC 11.1: Wireless Scanning/NAC Category 2 Category 3 Category 1 Category 2 Category 3 No WLAN No No cardholder cardholder data data Cardholder data data over WLAN over WLAN over WLAN 32
33 Value Proposition: The IBM and Aruba offering effectively addresses and simplifies PCI compliance Access Points (APs) for scanning for rogue APs/devices All activity is logged by AirWave APs can provide both Access and scan for rogue APs/devices Built in Firewall All activity is logged by AirWave APs can provide both Access and scan for rogue APs/devices Re-enforcing security with dedicated APs for scanning (Air monitors) Role-based access control Built in Firewall All activity is logged by AirWave Category 3 Category 1 Category 2 Category 3 No WLAN No cardholder data Cardholder data data over WLAN over WLAN 33
34 Challenge: How can you better secure staff, assets, and inventory? Wireless Video Surveillance Like the information kiosks, cameras are typically hardwired, but loss prevention managers would like to be able to redeploy to target specific areas of the store rather than simply add cameras. Also, these cameras are being used to analyze traffic patterns to optimize store layouts, and the ability to move the cameras to conduct specific traffic pattern audits would be beneficial. These requirements will dictate that camera connectivity become increasingly wireless and will mean huge payload increases to the wireless network. IDC, 2011 Source: June 2011, IDC Retail Insights #GRI Source: IDC Retail Insights European Survey 2010 With the increased capacity of n, enterprises should use wireless by default for more flexibility in camera placement and lower cost of implementation. Wiring each camera should be the exception, except for when camera placement is next to the wired infrastructure that is existing or has been installed to support the wireless network. Gartner Group, 2010 Source: Key Considerations for Implementing Video Surveillance to Avoid a Blank Screen : Gartner Group, May 17th,
35 Value Propostion: The IBM and Aruba solution enable a flexible video surveillance solution to secure staff, inventory and assets PoE Wired + Wireless Mesh PoE Indoor Video Wireless Video Outdoor Video Camera Camera Camera Benefits with IBM and Aruba MOVE Solution Common infrastructure for mobility and video surveillance Wired like video performance over mesh and Wi-Fi Increased flexibility and reduced d cabling costs 35
36 Contents Executive Summary Mobility and Smarter Retail The IBM/Aruba Value Proposition for Mobility in Smarter Retail Increase Revenues by Improving the Sales Experience Reduce Expenses by Streamlining Operations Manage Risk by Protecting the Store and its Assets The RoI for Mobility & Wireless in Retail through the IBM and Aruba Offering The IBM/Aruba Portfolio for Smarter Retail Why IBM & Aruba? 36
37 IBM & Aruba solutions for retail can offer significant TCO Savings Note: These examples are Aruba public references and NOT IBM References Saved $5,000 per store over 3 years by switching from expensive MPLS to broadband connectivity and Aruba WLAN solution Saving $2,000 per store by using Aruba Instant t virtual-controller t ll solution Lowered TCO 50%+ by leveraging same network for inventory management, mobile CRM/POS and guest access 37
38 Contents Executive Summary Mobility and Smarter Retail The IBM/Aruba Value Proposition for Mobility in Smarter Retail Increase Revenues by Improving the Sales Experience Reduce Expenses by Streamlining Operations Manage Risk by Protecting the Store and its Assets The RoI for Mobility & Wireless in Retail through the IBM and Aruba Offering The IBM/Aruba Portfolio for Smarter Retail Why IBM & Aruba? 38
39 IBM s mobility and wireless services are structured around six key areas to help optimize mobile and wireless communications within a retail environment Wireless campus infrastructure and mobile connectivity IBM Enterprise Mobility Services can provide a full lifecycle of project deployment: strategy, assess, design, integrate, deploy and maintain Remote network management Wireless communication and collaboration Wireless network security Near real-time location services Event-driven, near real-time notification 39
40 We can help you throughout the full lifecycle of secure mobility and wireless services, from strategy through ongoing management Services lifecycle phases: Strategy and assessment Architecture and ddesign Integration and deployment Management Client environment Strategy Assessment Solution approach Data collection Architecture and conceptual design Specified design Physical design/ implementation planning Solution build Pilot Deployment Help desk Self enablement portal Asset management Maintenance Wireless remote network management 40
41 IBM has a comprehensive retail solution offering through the Retail Industry Framework, to support the imperatives of smarter retailers Customer Insight Consistent Customer Information Social Retailing and Analytics Campaign Design, Execution, and Analysis Retail Data Warehouse PCI Compliance and Security Management Store and Channels Planning and Performance Retail Store Integration and Management POS and Self Service Loss Prevention On-line Customer Experience and Selling Cross-channel Integration, Order Management and Fulfillment Promotion Planning and Execution Financial Performance Management and Analytics Human Capital Management Enterprise Asset Management Energy Performance Management Supply Network Performance Supply Network and Inventory Optimization Vendor On-boarding and Maintenance Trade Fund Management Warehouse and Transportation Management Product Tracking Integrated Merchandise Planning and Analytics Master Product Information Management Product Information Process Management Market Basket Analysis 41 What is it? Portfolio of solutions to business problems Based on IBM s experience with clients Reusable implementation patterns of IBM software Retail accelerators and best practices How does it help? Experience reduces risk Accelerators speed deployment Industry standards help with integration Framework is a roadmap for change
42 Aruba offers a comprehensive portfolio to suit a retailer of any size Small Store Mid-Sized Store Large Store Outdoor & Mesh Instant APs Aruba Instant AP-134/135 Virtual Controller w/mesh Virtual Controller w/mesh High density AP-175 Dual Radio NEMA Enclosure 600 Series 8 Secure-Ports USB-WAN, NAS/Print 3000 Series APs 3-4Gbps Firewall Warehouse AP-134/35 High reliability RAP Remote AP S-3500 Mobile Access Switch GE/PoE Role-based policy S-3500 Mobile Access Switch GE/PoE Role-based policy 3000 Series APs S-3500 Mobile Access Switch GE/PoE Role-based Policy Data Center/Cloud 6000 Series Amigopod AirWave Content Security Service Role-based Policy Customer Wi-Fi Access PCI Compliance URL Filtering Mobile device access Multi-vendor mgmt. Anti-virus/malware control Mobile device mgmt. Data loss prevention 42
43 Contents Executive Summary Mobility and Smarter Retail The IBM/Aruba Value Proposition for Mobility in Smarter Retail Increase Revenues by Improving the Sales Experience Reduce Expenses by Streamlining Operations Manage Risk by Protecting the Store and its Assets The RoI for Mobility & Wireless in Retail through the IBM and Aruba Offering The IBM/Aruba Portfolio for Smarter Retail Why IBM & Aruba? 43
44 Why IBM for Retail? Deep experience in design and deployment of mobility & wireless and RFID networks and solutions within the Retail industry Industry leading expertise in distributed Retail POS and Kiosk solutions Active participation in Retail industry associations gives IBM early exposure to technology standards and industry IT requirements IBM Research conducts cutting-edge retail research that provides transformational capabilities to our clients Scalable solutions can grow from single store or midsized operation to fully integrated corporate Retail and Distribution supply chains Worldwide Centers of Excellence to support client pilot projects and technology innovation Delivers strategic and operational resilience and security with its services Analyst-recognized marketplace leadership in network consulting and systems integration Unparalleled geographic reach more than 170 countries 44
45 Why Aruba for Retail? Smartphone & Tablet ready infrastructure Role-based User, device and app based access policy Maximizes bandwidth & minimizes interference Content Security NAC Eliminates multiple pieces of equipment 45
46 Why IBM and Aruba for Retail? IBM together with Aruba Networks provides a comprehensive portfolio of WLAN network solutions for the retail industry to support voice, video, and data IBM and Aruba are leaders in providing the most secure solutions, addressing key areas in retail such as PCI compliance IBM has vast experience in designing and deploying wireless and mobile solutions for public and private organizations and has implemented a number of WLAN solutions worldwide together with Aruba Aruba solution portfolio is fully integrated into IBM s Enterprise Mobility service offering enabling the ability to to offer end-to-end integration and development of WLAN infrastructure for the retail industry IBM together with Aruba have a global reach IBM sales and support operations in 160+ countries consultants and professionals worldwide 46
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