digital transformation in retail - sap retail forum 2015
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Lori Mitchell-KellerGlobal GM, Consumer Industries, SAP
Digital Transformation in RetailUnleash your data and create a customer driven culture
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Digital consumers
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Putting retail at the forefront of digital disruption
Source: Bain and Co.; Leading a Digital Transformation
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Disruptions create both risk and opportunity
Sources: Global center for digital business transformation, 2015 ; Cracking the digital Code, McKinsey Global Survey, Sep 2015
% of respondents
who say the risk of being put of
business increases due to digital disruption
Expected effects of digital, next 3 years
49%
17%
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This opportunity is like no other
1850
Industrial economy
2020
Digital economy
1990
Internet economy
IT economy
1970
$0.36T$12.10T
$27.50T
$90.0TGrossworld
product
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How are you participating?
Hiding from change isn’t an option
Following the crowd isn’t the answer
Become adaptable, agile, fast moving, hyper aware
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What is holding you back?
Organizational Challenges
Lack of leadership, talent, motivation, incentives, organizational structures
Technology Challenges
Lack of data, insights, speed, money for innovation, technology infrastructure, agility
Lack of internal leadership or talent for digital projects
Lack of data and understanding of impact of digital
Inability to keep pace with faster speed of business under digitalInability to adopt
experimentation mind-set
Lack of dedicated funding for digital initiativesMisaligned interests
between digital & traditional businesses
Lack of senior management desire to change status-quo
Lack of technology infrastructure
Organizational structure not designed for digital
Business processes too inflexible to take advantage of new opportunitiesSource: McKinsey, Sep 2015
Most significant challenges to meeting priority for digital programs
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Leading in digital economy requires a digital core
Digital Core
Digital Econom
yDigital
Enterprise
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Digital core interconnects all aspects of the value chain in real time
SAP HANA Platform
Digital Core
CustomerExperience
Omni-Channel
WorkforceEngagement
Assets& Internetof Things
SupplierCollaboration
Business Networks
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Allowing you to re-imagine your business in whole new ways
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Allowing you to re-imagine your business in whole new ways
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 12Internal
Allowing you to re-imagine your business in whole new ways
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3 leaders that are re-imagining business with digital at its core
SAP HANA Platform
Digital Core
CustomerExperience
Omni-Channel
WorkforceEngagement
Assets& Internetof Things
SupplierCollaboration
Business Networks
Loblaw
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 14Internal
3 leaders that are re-imagining business with digital at its core
SAP HANA Platform
Digital Core
CustomerExperience
Omni-Channel
WorkforceEngagement
Assets& Internetof Things
SupplierCollaboration
Business Networks
Loblaw
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 15Internal
3 leaders that are re-imagining business with digital at its core
SAP HANA Platform
Digital Core
CustomerExperience
Omni-Channel
WorkforceEngagement
Assets& Internetof Things
SupplierCollaboration
Business Networks
Kroger
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 16Internal
3 leaders that are re-imagining business with digital at its core
SAP HANA Platform
Digital Core
CustomerExperience
Omni-Channel
WorkforceEngagement
Assets& Internetof Things
SupplierCollaboration
Business Networks
Kroger
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 17Internal
3 leaders that are re-imagining business with digital at its core
SAP HANA Platform
Digital Core
CustomerExperience
Omni-Channel
WorkforceEngagement
Assets& Internetof Things
SupplierCollaboration
Business Networks
Under Armour
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 18Internal
3 leaders that are re-imagining business with digital at its core
SAP HANA Platform
Digital Core
CustomerExperience
Omni-Channel
WorkforceEngagement
Assets& Internetof Things
SupplierCollaboration
Business Networks
Under Armour
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 19Internal
Unleash your data for a digital future
Empower Connect Collaborate
© 2014 SAP AG or an SAP affiliate company. All rights reserved.
Thank youLori Mitchell-KellerGlobal General ManagerConsumer Industries, [email protected]