This document discusses how the Internet of Things (IoT) is changing omnichannel retail. Omnichannel retail allows customers to shop seamlessly across devices and channels. The main challenges for retailers are keeping up with technology changes, providing consistency across channels, and managing big data from various sources. IoT generates even more customer data through connected devices that can be used to optimize inventory, improve product placement and targeting, and enhance the customer experience. While big data raises privacy and usability issues, retailers that establish the right infrastructure and develop a data-driven culture can reduce costs, make processes more efficient and gain insights into customer needs.

1. RETAIL RETOLD:
IS IoT IS CHANGING THE FACE OF OMNICHANNEL RETAIL?

2. [Technology Evaluation Centers and Microsoft present:
Retail Retold:
Is IoT is Changing the Face of Omnichannel Retail?
Speakers:
Raluca Druta
Research Analyst at
Technology Evaluation Centers
Duncan Taylor
Global Retail Industry Marketing
Director for Microsoft Dynamics
Predrag Jakovljevic
Principal Analyst at
Technology Evaluation Centers

3. Omnichannel Retailing:
The seamless environment that allows consumers to use
various devices and channels for both buying and other
transactions, such as returns, whether in a store or online.

4. [Main Challenges of Omnichannel Retailing
“Omnichannel retailing is about more than a slick
website with a shopping cart in the corner…”
• Keeping pace with the rate of technological change
• Ensuring consumers experience consistency across all channels
• Managing social media

5. [ Micro-level Challenges of Omnichannel Retailing
“A customer doesn’t think about what channel they
are using; they care about a consistent and seamless
experience with the brand…”
• Stock inventory and allocation management
• Handling of returns and exchanges
• Shipping
• Promotions and discounts
Having a unified commerce engine
can merge back office, front office
and channel processes

6. [ Opportunities Inherent to Omnichannel Retailing
“Research shows that cross-channel shoppers are more
profitable for retailers”
• Big CRM data -- customer base, buying behavior, promotional
effectiveness
• Opportunity to meet or even exceed customer expectations
• Employee empowerment/engagement
• Increased profitability

7. [ Opportunities Inherent to Omnichannel Retailing
“Gallup research shows that companies
who engage both their employees and their customers
gain a 240% boost
in performance-related business outcomes…”

8. [ The Internet of Things
“The IoT is a revolution already underway,
with a growing number of internet-enabled devices
sharing data on an ever-growing network…”

9. [
The Internet of Things
“One pragmatic way for retailers to start thinking about
the Internet of Things is as an Internet of Their Things”

10. [ IoT – Challenges
“Retailers using IoT for any particular purpose have to be
mindful in the age of social media..”
• Consumer privacy versus targeted marketing
• How to make Big Data manageable, meaningful and actionable

11. [ Internet of Things and Big Data
Now, data comes from everywhere and is
unlimited in scope and specificity...

12. [
Internet of Things and Big Data
How can retailers manage Big Data?
• Establish a supporting infrastructure that collects, consolidates, and
analyzes data
• Develop a “data culture” where information is accessible and useable
by everyone

13. [Four Key Ways Big Data can Help Retailers:
1. Reduce costs (optimize order fulfillment)
2. Make internal and external processes more efficient
3. Detect risks & fraud
4. Arm the right people with the right information to better
understand customers’ needs

14. [
Internet of Things – Opportunities
“We can now make strategic decisions about the entire
customer cycle”
A few examples:
• Track foot traffic to optimize store layout and product placement
• Easily analyze factors such as gender, age, and time of day in
shopping behavior
• Use geo-location to enable targeted promotions
With so much data at our fingertips, there are infinite
ways that Big Data could be used to enhance consumers’
buying experience…

15. [Internet of Things – Opportunities

16. [Omnichannel Retailing in the Age of IoT
• More choices...
• More flexibility...
• Exponentially more data...
But it’s still all about the customer experience

17. [Q & A

18. [Thank you
Thank you for attending this edition of ERP Conversation Live!
Your speakers today have been:
P.J. Jakovljevic, Principal Analyst at Technology Evaluation Centers
Raluca Druta, Research Analyst at Technology Evaluation Centers
Duncan Taylor, Global Retail Marketing Director for Microsoft Dynamics