3. Follow
This
Webinar
On
Twi:er
#OmniPromise
Retail
TouchPoints:
#OmniPromise
@RTouchPoints
UXC
Eclipse:
@UXCEclipse
Greg
Buzek:
@gregbuzek
Debbie
Hauss:
@DHauss
4. About
Retail
TouchPoints
ü Launched in 2007
ü Over 28,000 subscribers
ü To provide executives with relevant,
insightful content across a variety of
digital medium
Free subscription to our weekly newsletter:
WWW.RETAILTOUCHPOINTS.COM/SIGNUP
#OmniPromise
5. Panelists
Greg Buzek
President
IHL Services
#OmniPromise
Will Dunlavy
Director Retail Solutions -
Dynamics AX
UXC Eclipse
Debbie Hauss
Editor-in-Chief
Retail TouchPoints
MODERATOR
7. " Helping retailers/restaurants make better IT
decisions
• Better Informed
• True Review of Vendors
• Complete Reference List
• Managed RFP Process
" Syndicated Research and Data Services
• Retail Benchmarking
• IT Spend / Retail Sizing
• Retailer/Vendor Technology Profiles (300 technologies)
• Top Things You Missed This Week in Retail
" Custom Research
www.ihlservices.com
9. Around the Globe
" Unrest prevalent
• Israel, Ukraine, Libya, Pakistan, Nigeria, Iraq, Syria,
Venezuela, Argentina, Brazil etc.
" Ebola epidemic
" ISIS/ISIL whatever you want to call them.
" Retail Sales worldwide have been struggling.
" Emerging Markets Slowing Rapidly
" Exception is some parts of Africa
" Impact of Ukraine conflict tremendously
effected Germany
www.ihlservices.com
10. A Quick Word on the US Economy
" Consumer and Economic Uncertainty
" Great increase since early June
" The Stock Market “Matrix”… wild swings, up lately.
" Mid-Term Elections/Mandate
" Taking Advantage of Better Terms
" Higher interest rates in 2015
" Auto sales bubble?
" “Haves” vs “Have Nots” Continues
" Gaps in Education / Income / Skills, little opportunity for change
www.ihlservices.com
12. Middle Class Share of Income Gains
5 years post-recession income gains
Time Period/
Administration
www.ihlservices.com
Bottom 90% Top 10% share
Post WWII 68% 32%
Reagan-Bush 20% 80%
Clinton 32% 68%
George Bush 2% 98%
Obama - 14% 116%
WSJ Report 10/1/14, Bard College Research
13. Inflation in check, Really?
" CPI + 1.7%
" Does not take into consideration
" Avg. Cell Phone Bill +75% since 2000
" Childcare + 37%
" College tuition + 86% (public in-state)
" Health Insurance + 76%
" Cable or Satellite +300%
" CPI only measures retail consumer product inflation, not
services
" Inflation adjusted Median income -9% since Great Recession
ended.
" Good News: Gas Prices dropping in time for holidays.
" Every 1c drop sustained for a year is $1.8Billion in economy.
" $22.5 Billion more in consumers wallets for holidays
www.ihlservices.com
14. Retail Trends
" Retail Sales up 2.3% YoY
" But slowing and cautious holidays
" Big portion is auto sales
" Heavy discounting continues
" Security heavy focus
" Consolidation
" Retailers: Family Dollar/Dollar Tree/Dollar General
HBC and Saks
Burger King/Tim Horton’s
" Vendors: Oracle/MICROS,MANH/GlobalBay, Epicor/Quantisense
" Credit Worthiness: FICO Changes
www. ihlservices.com
15. Omnichannel Overview
• Massive overhaul of systems.
• Estimated ‘15 WW spend ~ $9.5 Billion
• Order Management System becoming
core version of the truth
Increase >
10%
www.ihlservices.com
Increase <
than 10%
Stay the
same
Decrease <
10%
Decrease >
10%
27% 21% 48% 3% 1%
Sources: IHL WorldView IT Sizing, Custom Research
16. Key Challenges
• Key hindrances to Omnichannel Succes
are in these areas.
• Actionable analytics that measure
• People Issues
• Training merchants to think Omnichannel
• Accurate inventory for customers
• Integrating systems
• Motivation/Compensation for store employees
• Who gets the credit?
www.ihlservices.com
17. Overview of the Budgets
• Some Key S/W Components (WW spend)
• Merchandising Systems $3.9B
• BI/Analytics $2.3B
• Core POS $1.8B
• Mobile POS $340M
• eCommerce $900M
• New licenses and SaaS only. Does not not including maintenance,
customization
Source: IHL WorldView IT Sizing
www.ihlservices.com
18. Not Just Order Management
• Where the big growth is happening
www.ihlservices.com
Increase >
10%
Increase <
than 10%
Stay the
same
Decrease
< 10%
Decrease
> 10%
Core POS 29% 23% 41% 4% 3%
Mobile POS 26% 31% 40% 1% 2%
eCommerce/Mobile
43% 32% 25% 0% 1%
Commerce
Source: IHL Custom Research Survey 10/14
19. " BI remains huge investment area WW
" Cloud the greatest area of growth
" CMO driving considerable spend.
" 3 hot areas
" Predictive Analytics
" Data Visualization
" Social Media/Big Data Analytics
www.ihlservices.com
20. " Two basic types
" Finding a story
" Telling a story
" Allows for custom queries but results
beyond spreadsheets
" Turns data into insight
" Combining results
www.ihlservices.com
26. Consistency:
#OmniPromise
What
does
it
mean
to
retailers?
• Omni-‐channel
success
is
all
about
delivering
a
single
message
consistently
to
your
customer
• Retail
systems
and
technology
must
be
able
to
support:
– A
single
plaPorm
with
a
single
source
of
truth
– Integrated
Retail
Supply
Chain
– Business
Intelligence
and
Analysis
across
all
aspects
of
the
Retail
Supply
Chain
data
+
analyEcs
=
knowledge
of
the
customer
27. Consistency:
#OmniPromise
How
is
it
done?
• CreaRng
integrated
experiences
across
all
channels
and
consistency
of
informaRon
delivery
• Let’s
share
some
of
our
UXC
Eclipse
customer
insights
28. #OmniPromise
DAVIDs
TEA
DAVIDsTEA
is
a
North
American
omni-‐channel
retailer
focused
on
the
sale
of
tea
&
tea
related
products
in
over
150
physical
stores
and
online.
29. #OmniPromise
Case
Study
Customer
SoluEon
Results/Benefits
• Ability
to
rapidly
expand
into
new
markets
• Increase
customer
visibility
• Ability
to
forecast
and
budget
enterprise
needs
• Faster
growth
• Microso]
Dynamics
AX
for
Retail
• Integrated
Omni-‐Channel
E-‐Commerce
• Advanced
Demand
and
AllocaRon
Planning
• Advanced
Workforce
Management
Business
Challenge
• Rapid
growth
in
mulRple
countries
• No
single
source
of
the
truth
• Inability
to
forecast
demands,
product
and
people
30. #OmniPromise
Feedback
"We
needed
more
flexibility
at
POS,
since
we
have
three
types
of
sales
categories:
loose-‐leaf
teas;
accessories,
such
as
cups;
and
beverages
and
foods,
which
are
not
in
inventory.
Our
challenge
was
to
find
a
tool
that
could
handle
all
three,
which
tradiDonal
POS
systems
could
not.
We
have
many
followers
on
Facebook,
TwiHer
and
through
our
newsleHer.
We
want
to
integrate
all
of
this
informaDon
and
really
get
to
know
our
customers
—
whether
they
are
buying
online
or
in-‐store.
A
lot
of
our
store
managers
know
their
customers,
but
we
want
to
make
this
familiarity
more
company-‐wide."
Howard
Tafler
Chief
Financial
Officer
DAVIDsTEA
31. Jean
Coutu
Pharmacie
#OmniPromise
The
Jean
Coutu
Group
is
one
of
the
largest
names
in
Canadian
pharmacy
retailing
with
414
franchised
stores
located
in
the
provinces
of
Québec,
New
Brunswick
and
Ontario,
employing
close
to
20,000
people.
32. #OmniPromise
Case
Study
Company/SoluEon
Stats:
• 12,000
users
• $4.7b
Revenue
• 5
individual
stores
>
$20m
revenue
• 414
stores
• Largest
store
does
>2000
scripts
a
day
plus
value
added
retailing
• Flexible
ERP
that
adjusts
rapidly
to
consumer
trends
• Enhanced
customer
service:
e.g.
mobile
POS
allows
salespeople
to
interact
directly
with
shoppers
(checking
inventory,
placing
orders
etc.)
• Seamless
customer
experience
across
all
channels
will
become
a
compeRRve
differenRator:
shopping
across
different
channels
in
a
consistent
manner
• MS
AX
2012:
All-‐in-‐one
omni-‐channel
retail
soluRon
across
brick
and
mortar,
catalogue
and
internet
retailing
• Back
office
-‐
supply,
distribuRon
and
warehousing
• Mobile
POS
Customer
SoluEon
Results/Benefits
33. #OmniPromise
Feedback
“We
wanted
to
make
a
radical
shiL
to
get
into
the
21st
century.
We
see
MicrosoL
Dynamics
for
Retail
as
a
driver
for
that
change.
As
a
franchiser,
we’re
responsive
to
the
demands
of
our
customers
as
well
as
our
stores.
MicrosoL
Dynamics
for
Retail
offers
the
flexibility
and
the
technology
to
meet
those
demands.”
Alain
Boudreault,
Vice-‐President
and
Chief
InformaRon
Officer
The
Jean
Coutu
Group
(PJC),
Inc.
34. Get
the
Data,
Use
the
Data
#OmniPromise
360˚
view
of
each
customer
in
real-‐Rme
across
the
enterprise.
Each
customer
is
unique,
treat
them
that
way!
AnEcipate
customer
behavior
with
full
knowledge
of
stock
levels,
buying
pa:erns
and
then
respond
to
demand
with
Rmely,
appropriate
and
targeted
promoRons.
35. Immediacy:
#OmniPromise
What
does
it
mean
to
retailers?
Impulse
buying
as
sales
at
online
businesses
worldwide
totalled
$1.25
trillion
last
year,
up
from
$1.06
trillion
in
2012
Emarketer
research
from
Bloomberg
h:p://www.bloomberg.com/news/2014-‐06-‐03/retailers-‐use-‐big-‐data-‐to-‐turn-‐you-‐into-‐a-‐big-‐spender.html
data
+
analyEcs
=
knowledge
of
the
customer
knowledge
of
the
customer
=
↑
revenue
36. Immediacy:
#OmniPromise
How
is
it
done?
CollecRng
data
in
real
Rme
and
leveraging
it
to
personalize
offers
and
interacRons.
Let’s
share
our
UXC
Eclipse
customer
insight.
37. #OmniPromise
Case
Study
Company/SoluEon
Stats:
• 50
POS
lanes
in
one
LocaRon
• Replacement
of
aging
POS
hardware
and
so]ware
• Aggressive
Rmeline
of
8
weeks
for
POS
to
be
ready
for
busy
Summer
tourist
season.
• Independent
network
infrastructure
• Achieve
PCI
credit
card
compliance
Customer
SoluEon
Results/Benefits
• Category
Management
and
real
Rme
data
has
significantly
increased
profitability
across
the
supply
chain
and
allowed
managers
to
make
more
immediate
decisions
on
products,
shelf
space,
replenishment,
etc.
• Dynamics
AX
2012
for
Retail
38. Key
Takeaways
• Know
each
Customer!
• Knowledge
comes
from
data
and
data
comes
from
systems
#OmniPromise
• Your
system
needs
to
span
across
the
enterprise
to
deliver
real-‐Rme
access
to
data
with
deep
analysis
to
support
customer-‐centric
retailing
=
It’s
a
journey
–
partner,
tools,
experience