Marcy LarsenRetail Industry Market Development Managermarcyl@microsoft.com

Digital transformation in the Era of the New Consumer

My Retail Story

SHIFTING POPULATIONS.

GROWING LIFE EXPECTANCY.

GENDER & CULTURAL REBALANCING.

ECONOMIC CHALLENGE, UNEMPLOYMENT.

CLIMATE CHANGES & DESTRUCTION.

GENERATIONAL UPHEAVALS.

CONTINUALLY EMERGING INNOVATIONS.

EVOLVING SKILLSET REQUIREMENTS.

NEW EMPLOYMENT OPPS/OLD ONES ENDING.

ENTREPRENEURIAL BEHAVIORS.

STARTUP OPPS/UNCERTAINTIES/FAILURE/SUCCESS.

NEW COMMUNICATION BOUNDARIES.

Today: A NEW WORLD with NEW EXPERIENCES…

Digital Disruption – short fuse, big bang

Tapping into the $260 billion Retail Sector

Sector driving 18% of Economic output and 10.5% of jobs

Dividends more important than capex

Aussie retailers failure to invest online

The 5 Cycles Revolution in Australia

Australian Retail Consumer Spending

Waves of the Digital Revolution

E-Commerce Growth

Australia leads the world in online start-ups

Australian E-Commerce Growth

Spending up to $13.9b in the past year

The growth rate for online sales slowed in June, down to +14% yoy

13

Music

Video Game Outlets

Department Stores

News Agents & Booksellers

The Amazon Effect & Price Transparency

Financial Markets offer insights

Omni Channel Maturity Model

Challenges in the Retail Industry

Global and Green

Expansion

New Formats

Formats

Without Walls

Collaboration

Omnichannel

Channels

Aware

Customer

New Generation

Salesperson

Overloaded

Store

Manager

Disconnected

Corporate

Manager

Retail Industry Challenges Role-Specific Challenges

Business models are changing at an

unprecedented pace due to global and

technological opportunities and challenges.

The new global demand chain is driven by

information in the hands of people.

Showrooming

Webrooming

Scan n Scram

Click & Pick

Real Time Information

Omnichannel

Click & Collect

90% of Fortune 500 CEO’s consider Agility to respond to

changing market conditions as a top need

Customer Insight

Price Matching

Inventory Insights

It’s a brave new world...

1. Nielsen, “The Cross Platform Report”, Q3 2012—US 2. Informa Telecoms and Media, “The Future of TV: Strategies for becoming connected, social and in the cloud”, March 29, 2012

Consumers are spending 5+ hours each day accessing the internet

across a variety of devices— at home, at work or on-the-go.

Mobile

PC

Tablet

Console

59.4minutes per day

on average spent

on mobile

(data subscribers)

20minutes per day

on average

spent on tablets

321.6minutes per day

on average spent

on both laptops

and PC1

40.1Mpredicted Internet

enabled video

game console

sales in 20132

The Rise of the “Mopper”

A computer in the hands of every shopper

Top 5 mobile market

UK and US lagging

New Multi-Screen world

The new journey is nonlinear

The Best of both worlds?“For traditional retail to protect itself against the encroaching online competition, more companies need to embrace the clicks and mortar avenue.”

James Webber, CEO, Bookworld

“I’m not saying that bricks and mortar is dead or dying, but in this particular retail model, price can no longer be viewed as the competitive advantage. Instead, retailers should be investing in the in-store experience. It’s those retailers that are currently providing this proprietary in-store experience that still exhibit growth potential.”

Ruslan Kogan, Kogan

$11.5 B investment in Shopping Centres

Sourced Data

Data Driven Personalization

Integrated

Segment

Manage

Enrich

Analyze

Deep Insights

Apps

Social Advertising

Search

Enterprise Data

ERP, CRM, ProprietaryThird Party Source,

Consumer Data

Self Service KPI

Integrated Analytics Solutions

The promise of personalization

Personalize Across DevicesGIVE USERS THE EXPERIENCE THEY EXPECT ACROSS ALL THEIR WINDOWS 8 DEVICES

Unique Devices to Workers in Retail

Digital Sign

Transaction Kiosk

Handheld

Inventory & Logistics

Point of Sale

Information Kiosk

Self check-in KioskDigital Sign

… click to play

Emirates Airline

Soars With New

Windows 8

Business

Application and

HP Tablet

Experience

“To support our crew, we have created an

application on Windows 8 that delivers a unique,

personalized experience with the necessary

information for our cabin crew to better serve

the needs of customers.”

Kevin Griffiths, Senior Vice President Cabin Crew at

Emirates

No re-charge

needed even on

long haul flights

MobileEmirates enhances customer experience with Windows 8

Surveys with employees in Retail

Store portal on O365 transforms the way Tesco Works

This will allow our colleagues to engage

with each other and deliver an optimal

shopping experience on any channel, as

well as encouraging colleagues to share,

re-use, and reward ideas and expertise.”

Mike McNamara, CIO, Tesco

“O365 helps IT

stop doing

utility & do

more to

innovate with

the business”

Social

SURFACE TABLE/POSSTAND & ENCLOSURE

Compatible:Surface Pro/RT

Available Finishes:

note: custom skins and colors available

Product Features:- Sturdy powder coated steel stand and enclosure- Optional rotating base with 180° rotation- Custom branded paint and faceplate available- Open access to ports including USB and headphone jack for POS dongles

- Open windows button faceplate with front camera access

- WiFi, Bluetooth, and Mobile 3G/4G tested

profile

back7”

8”

11”

An Product

Opportunity in the new Consumer Era

Personalized and Connected Experiences

Driving growth through customer, industry and performance insights

The technology that can be accessed is more important then technology owned

Retail - CG FY14 Big Bets

Big Bets

Emp Portal Connected Store Business Insights Sales & Store Devices Dyn AX & CRM

Solutions O365 led Google

Compete Solution

Omni-Channel Making Big Data Work Driving improved staff

engagement with

customers

AX, CRM

Description Employee

empowerment and

knowledge worker

apps/tools

Consistent

connectivity and

engagement quality

across all Channels

Business insights,

dashboards, KPIs, Big

Data ROI. Mobility

and application of

insight in key

• In store sales tools

and collaboration

with a focus on

devices to improve

customer service

DERP, Store Ops, CRM

or SRM

Workloads(focus areas in RED)

• Bus Collaboration

Platform

• Comms Apps

• DB

• Email Servers

• RoM

• Devices

• Collaboration

• Communication

Apps

• Data Platform

• Productivity Apps

• AX & CRM

• Devices

• Collaboration

• Data Platform

• Productivity Apps

• System Mgmt/Virt

• Devices

• Collaboration

• Communication

Apps

• Data Platform

• Productivity Apps

• Devices

• Collaboration

• Communication

Apps

• CRM Apps

• Data Platform

• System Mgmt/Virt

• Devices

MS Deal Size $1.0m+ $500k $500k $500k $300k

Where do you align?

Empowering store

associates with O365

“Last Mile” solution

Intelligent systems to

provide augmented

reality, digital signage

and interactive multi-

touch experiences in

stores

Cloud solutions using

Microsoft Azure for

seamless campaign

brand experiences

Dynamics partner

extending to offer

integrated marketing

offerings &

envisioning and

designing windows 8

Apps

Data strategies that

supports customer

insights &

personalization goals