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Comprehensive Retail Consulting
2 ©2015 Boston Retail Partners. All rights reserved
Straight Talk about the
Changing Face of Retail
Ken Morris, Principal
March 5, 2015
Comprehensive Retail Consulting
3 ©2015 Boston Retail Partners. All rights reserved
Agenda
About Boston Retail Partners
State of Retail Technology
Technology Enabling the Experience
Use Cases – Unified Commerce in Action
Conclusion
Comprehensive Retail Consulting
4 ©2015 Boston Retail Partners. All rights reserved
State of Retail Technology
Comprehensive Retail Consulting
5 ©2015 Boston Retail Partners. All rights reserved
Customers don’t think in channels…
Comprehensive Retail Consulting
6 ©2015 Boston Retail Partners. All rights reserved
Silos are the Achilles heel of retail
technology!
Store Catalog Online Mobile
Comprehensive Retail Consulting
7 ©2015 Boston Retail Partners. All rights reserved
Channel evolution
Single Channel Multi-Channel Omni-Channel Unified
Commerce
The Legacy The Aspiration The Reality The Nirvana
Comprehensive Retail Consulting
8 ©2015 Boston Retail Partners. All rights reserved
Unified Commerce is a High Priority
44% indicated unified commerce
was one of their top three priorities
for 2015
663% increase over next four years
in single commerce platform
implementations
8% have currently implemented a
single commerce platform but more
than half plan to within four years
Comprehensive Retail Consulting
9 ©2015 Boston Retail Partners. All rights reserved
Technology Enabling the Experience
Comprehensive Retail Consulting
10 ©2015 Boston Retail Partners. All rights reserved
Unified commerce platform
Unified Commerce Enterprise
BI CRM
FIN
INV
MFG
Mobile
Devices
Web Site
Traditional POS
Real-Time
Retail
(AKA the
Cloud)
Middleware
Customer &
Associate
Stations
Social Media Integration
Rules Engine
Associate
POS
Real-time Task Management
Comprehensive Retail Consulting
11 ©2015 Boston Retail Partners. All rights reserved
Benefits of centralized commerce platform
Leaner, more flexible store-level environment
Fewer devices and licenses
Centrally deployed application updates
Comprehensive Retail Consulting
12 ©2015 Boston Retail Partners. All rights reserved
Benefits of centralized commerce platform
Enables a glass pipeline (makes the invisible -
visible)
• Allows you to be proactive – not reactive
• Eyes on the problem by leveraging the network
• Use math (pattern recognition and rules engine)
• Solves problems in real-time!
Comprehensive Retail Consulting
13 ©2015 Boston Retail Partners. All rights reserved
Middleware – the enabler
Comprehensive Retail Consulting
14 ©2015 Boston Retail Partners. All rights reserved
MDM - single version of the truth
Comprehensive Retail Consulting
15 ©2015 Boston Retail Partners. All rights reserved
Real-time Analytics
Real-time Analytics
Unified Commerce Enterprise
Real-Time
Retail
(AKA the
Cloud)
Middleware
Rules Engine
Comprehensive Retail Consulting
16 ©2015 Boston Retail Partners. All rights reserved
BPM – delivering a unified, continuous
customer experience
Business Process Management
Automated Business
Process Discovery
Business Activity
Monitoring
Business Rule
Management
Complex-Event
Processing
Content
Management
Intelligent Business
Operations
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Comprehensive Retail Consulting
17 ©2015 Boston Retail Partners. All rights reserved
Use Cases –
Unified Commerce in Action
Comprehensive Retail Consulting
18 ©2015 Boston Retail Partners. All rights reserved
Customer engagement – personalized
selling and promotions
Comprehensive Retail Consulting
19 ©2015 Boston Retail Partners. All rights reserved
Store operations – monitor and respond in
real-time
Comprehensive Retail Consulting
20 ©2015 Boston Retail Partners. All rights reserved
Supply chain – enterprise inventory
visibility…in real-time
Comprehensive Retail Consulting
22 ©2015 Boston Retail Partners. All rights reserved
Start the unified commerce journey now!
Real-time retail is the key
Your data needs to be clean and accessible
• Need the right middleware
• Master data management is critical
Embrace BPM now for a Strategic First Mover Advantage
Comprehensive Retail Consulting
23 ©2015 Boston Retail Partners. All rights reserved
Ken Morris
Principal
(617) 880-9355
www.bostonretailpartners.com
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Straight Talk about the Changing Face of Retail
Keith Swenson VP, Research and Development Fujitsu America, Inc. March 5th, 2015
25
Retail is Undergoing Transformation Re
tail
is c
han
gin
g
Tech
nol
ogy
mak
es
it p
ossi
ble
Retail is changing The aim of retailers is to achieve seamless, consistent, and continuous customer engagement that provides holistic customer experience.
Technology makes it possible Business Process Management (BPM) systems enables the consolidated and unified environment required by today’s retailers.
Inte
rsta
ge R
etai
l A
gili
ty
Interstage Retail Agility delivers rapid time-to-value & ROI The barrier to BPM is removed by introducing the “Interstage Retail Agility” framework. Continuous customer engagement can be created in a fraction of the traditional time.
Copyright 2015 Fujitsu America Inc.
26
The Time for Omni-Channel is Now
Macy’s
“We’re finding that customers don’t really care from where we pull the goods, as long as we fill the order accurately and the delivery is timely.”
– Karen Hoguet, Macy’s CFO
Home Depot
“one out of every three of Home Depot's online transactions is actually fulfilled in the store. …buy online, pick up in store" customers tend to buy more items once they're in the store.”
– Frank Blake, CEO and Chairman, Home Depot
Target
“We are firmly committed to implementing a multichannel strategy that enables our guests to engage with Target anywhere, anytime.”
– Kathryn Tesija, Executive Vice President and Chief Merchandising and Supply Chain Officer,
Target
Urban Outfitters
“From a customer perspective, there's no such thing now as a retail inventory or a direct inventory.“
– Calvin Hollinger, CIO, Urban Outfitters
Copyright 2015 Fujitsu America Inc.
27
Key Omni-Channel Commerce Barriers
Technology and integration challenges
Sharing customer data and analytics across customer touch points
Getting consolidated, accurate view of real-time inventory across stores and distribution centers
Exposing real-time store inventory online
Difficulty integrating back-office technology across channels
Connecting existing legacy POS, eCommerce, ERP, and retail mainframe systems
Lengthy implementation timelines for omni-commerce enabling technology
Organizational and ownership challenges
Siloed online and offline groups hold back omni-channel initiatives
Attribution of sales revenue irrespective of the channel
Operation and executional challenges
Workflow management needed to pick, pack, and ship in stores
Training of stores associates, now expected to be product evangelists, customer service advocates, and distribution experts
“Fulfill from the store is the hardest to execute for two reasons. First, enabling inventory visibility across the enterprise is difficult. Second, managing the store operations around pick, pack, and ship, creates challenges in both technology and operations”.
- VP eCommerce, Apparel retailer
Copyright 2015 Fujitsu America Inc.
29 Copyright 2015 Fujitsu America Inc.
Interstage Retail Agility At-a-glance
Key Value Proposition
Improve retailers business operations with world-class, process-centric solutions to help retailers change and innovate their customer experience with greater speed and flexibility
Core Benefits
Faster time-to-market for omni-channel retail solutions
Reduce cost of deployment and minimize risk of implementation with industry-proven solution
Connect Big Data, Predictive Analytics and Retail
Embrace the legacy retail systems from ERP to POS
Adhere to standards - implements the latest ARTS standards for business process
Powered by Interstage Platform - comprehensive business process management (BPM), middleware, and integration capabilities
On-premise or Cloud deployment
Complements and supports market-leading Fujitsu Retail offerings
30
Why Interstage Retail Agility B
usin
ess
Tech
nic
al
For Business Audiences
Deliver holistic customer experience with greater speed and agility Deliver consistent customer experience across all channels Build brand loyalty and trust Drive revenue growth while controlling costs Optimize operational efficiency
For Technical Audiences
Comprehensive set of add-on modules to Interstage platform Enable omni-channel commerce services Deliver single customer view Better decision management with retail KPI dashboards Expedite integration and process automation
Copyright 2015 Fujitsu America Inc.
31 Copyright 2015 Fujitsu America Inc.
What is Interstage Retail Agility?
Retail Framework expands Interstage platform by providing Retail-aware business processes, analytics, rules, integration, and customizable GUIs – adhering to ARTS standards
Enable retailers meet business operations challenges with process-centric solutions
Process Automation
Pre-built predictive analytics, dashboards & templates
Rules Management
Agile GUI Customization
Integration
• Master Data Management, Data Transformation, Connectors for back-end systems (DB, SAP, Oracle, MS Office, etc.)
Offers a framework for delivering and customizing operational retail applications
Omni-channel Marketing
Single View of Customer
Central Customer Management
Central Inventory Management
On-premise or cloud deployment options
32 Copyright 2015 Fujitsu America Inc.
Interstage Retail Agility
Retail Framework
Powering Retail Agility: Interstage Platform
Interstage Platform
Smart Services Grid
Service Oriented Architecture (SOA) & Data
Enterprise Service Bus
Master Data Management
Business Process Management Suite (BPMS) Business Process
Management
Case Management
Rules Management
Composite Application Framework (CAF)
Composite Application
User Interfaces
Task Management
Visualization
Processes Management
Business Rules
Data Model
Omni-channel
Marketing
Single Customer
View
Central
Inventory
Colla
bo
rative W
orksp
ace
Analytics
Columnar Datastore
Data Blending
Process Mining
Inventory
Optimization
Customer
Behavior Analysis
In-Store Traffic
Analysis
Sensors
Social Media
BI/Dashboards Integration
33 Copyright 2015 Fujitsu America Inc.
Key Features Enabling Omni-channel Commerce
Service-Oriented Architecture (SOA) - based system integration to unlock business data and logic from existing retail systems with scalability, performance and efficiency.
Complete Business Process Management (BPM) capabilities to automate, manage and improve retail processes that span multiple systems, channels, and touch points.
Predictive Analytics – actionable business insights derived by connecting Big Data, Predictive Analytics, and Retail
Business Rules - manage complex business rules to ensure a unified and cohesive customer experience.
Master Data Management to maintain a single version of truth for data across multiple sources of information to provide a holistic view of data across any organization Data Management
Composite Application Framework (CAF) for easy-to-use development environment to create rich, interactive retail applications that combine a wide range of information sources and services
On-Premise and the Cloud deployment
34 Copyright 2015 Fujitsu America Inc.
Key Features: Enterprise Scale SOA Integration
The SOA Grid is particularly suitable for:
Legacy modernization
System to system orchestration
Extending ERP systems
What is it?
A full integration capability built around an Enterprise Service Bus delivering Service Orientated Architecture
The Interstage platform has a SOA grid at is foundation to deliver connectivity, advanced integration and business services to support organization wide, mission critical BPM
What does it give you?
A single URL for anything (a process, rule, UI, case, MDM etc)
A way of ensuring enterprise wide business processes work seamlessly with the existing IT estate
A robust, highly available, highly scalable framework allows non-stop execution of business processes
Enables enterprises to adapt rapidly to changing business needs and substantially lowering the total cost of ownership
35 Copyright 2015 Fujitsu America Inc.
Key Features: Business Process Management
BPM is particularly suitable for:
Dynamically allocating the right work to the right person
Enforcing SLAs for task completion
Managing workloads across teams and locations
What is it?
The capability to intelligently and effectively allocate tasks that are part of a process to the subject matter experts inside an organization regardless of location
The intelligence comes from being able to give the right task, form, information and single view of data combined with only allocating the right kind of work to the right person
What does it give you?
A rich, browser based inbox for tasks, cases and allocated work. This allows you to delegate, claim, escalate, re-allocate and tag work
Work allocation based on many factors such as current workload, rules, business SLAs and business calendars
The ability to map work based on the organizational model
Dynamically adjust work allocation based on Business Activity Monitoring and business metrics such as KPIs
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Key Features: Predictive Analytics
Comprehensive pre-built predictive analytics, dashboards & templates for retail
Solid, scalable architecture –
Hadoop integration
Underlying technology 500x faster than traditional databases
Latest sensing technology:
WiFi proximity detection
Beacon
Unique Fujitsu IP
True SOA Omni-Channel PoS
Broad ERP integration options
Comprehensive monitoring and visualization
Secure cloud or on-premises hosting
One solution provider, global reach
Hardware, software, analytics and services
Predictive Analytics is particularly suitable for:
In-store customer engagement
Predictive analytics for inventory optimization
Identifying key trends in one channel and applying to other
Engaging customers with Wi-Fi analytics
Copyright 2015 Fujitsu America Inc.
37 Copyright 2015 Fujitsu America Inc.
Key Features: Business Rules
Business rules are particularly suitable for:
Decision centric operations
Business apps that frequently change behaviour
Processes that need a high degree of business control
What is it?
Rules that define how a company acts are driven by business rules removed from the underlying process, systems and people
An easy to use capability or “decision table” to change they key decisions points of a business process
What does it give you?
The business can have the ability to change these rules to reactively and proactively change the behaviour of the organization
Speed and decisiveness in making a business change
Reduced complexity for the business but with governance and control
Reusable processes and cases but with easily customizable business logic in the hands of the subject matter experts
38 Copyright 2015 Fujitsu America Inc.
Key Features: Master Data Management
Master Data Management is particularly suitable for:
A single view of risk
A single view of customer or employee
A single view of product
What is it?
A real-time, single, uniform view of data regardless of source from across an organization giving a consistent context for the use of data everywhere within the organization
Data stays where it is – this is not “rip and replace” but “leave and layer”. Integration to data is read & write, data is loosely coupled
What does it give you?
A standards based, reusable single view of data available as a service
Better, more complete information for your business processes for customer service, compliance, up-sell/cross-sell etc
More intelligent decision making for key stakeholders
Reduced complexity of data access, transformation, aggregation and integration behind a standard data service layer
39 Copyright 2015 Fujitsu America Inc.
Key Features: Composite Applications
Composite applications are particularly suitable for:
Subject matter experts and knowledge workers
Anyone participating in a process
Delivering a rich, effective customer experience
What is it?
A way of building user interfaces to present processes, cases, applications, dashboards etc to users
The capability for business users to self assemble or compose business mash-ups made up of internal and external information
What does it give you?
High levels of productivity and speed for subject matter experts to create, share and publish relevant business applications
Technology in the workplace that is as productive as the consumer IT people use outside work
Disposable application that solves a problem but can be thrown away
Mix and match structured data from internal systems (e.g. ERP) with external data (e.g. Google Maps)
A rich way of participating in processes and giving the right information in one place to the right person (customer, employee, business manager)
40 Copyright 2015 Fujitsu America Inc.
Key Features: On-Premise and the Cloud
BPM in the cloud is particularly suitable for:
Outsourcing, BPO and systems integrators
Combining the best of SaaS with existing legacy
Flexible charging models – e.g. subscriptions
What is it?
Enterprise wide BPM in the cloud, on-premise or a hybrid mix of both
The Interstage platform can run in the public cloud, the private cloud, on-premise or hosted by a delivery partner. It is exactly the same platform.
What does it give you?
Business processes spanning the people, applications and services regardless of where they are. A business process could orchestrate SAP, Siebel, Salesforce, Google, Azure etc
Choice of using the cloud, not using the cloud, moving to the cloud when it makes business sense
The best of both worlds – make use of innovative SaaS applications together with traditional applications and existing legacy
The option of being able to run your business processes as a service (BPaaS) but retain control of your differentiation and innovation
42 Copyright 2015 Fujitsu America Inc.
Fujitsu at a glance
Headquarters: Tokyo, Japan
Established: June 1935
Net Sales: US $53 billion
R&D Expenditure: US $2.4 billion
Employees: 162,000 worldwide
3rd largest IT company worldwide
6th largest Application Infrastructure and Middleware software provider
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For More Information
Visit us at:
http://www.fujitsu.com/interstage
or email:
Copyright 2015 Fujitsu America Inc.