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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 1 Internal Digitization - Retail InternetOfThings GTMv11 Oliver Grob IBU Solution Management 2016

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 1Internal

Digitization - RetailInternetOfThings GTMv11

Oliver GrobIBU Solution Management2016

Preserve the internal order...Volvox

Processing all signals...Brain

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Internal

The world has already changedReimagine the way we do business

201414 billion

connected things2020

4 billion

people connected

75 billion

connected things

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Internal

Connect – Transform – ReimagineSAP Internet of Things for Business

Connect with billions of internet-enabled things to gain new insights

..by combining business data with intelligent analysis of new signals from devices, networks & more

Connect

Transform the way you make decisions and

take action..by executing operational processes through predictive and automated

response all the way to the edge of the network

Transform

Reimagine your customer’s experience

..by empowering innovative new business models, value-added services and customer responsive products

Reimagine

SAP Strategy for IoT

Application Enablement

Platform

Device Management

Platform

Network Connectivity

Connected Assets

Industry Solutions

Telco 3rd party device cloud

Devices and Sensors

SAP HANA Cloud Platform IoT Services

SAP HANA Cloud Platform SAP HANA Cloud Integration

SAP S/4 HANA SAP IoT Apps

© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Suite

Applications

S/4HANA

Platform

HANA Platform

VORA

any DB Hadoop

Icon

Analytics

C4A

ExtensionsApplications

IoT

HANA Cloud Platform

(Micro-) Services

IoTPlatform

Identity Management

Business Network

CEC

HANA CloudIntegration

App ConnectHANA CloudIoT Services

HCP IoT Platform

Business Suite

SAP S/4HANA

On-Premise

HANA

Integrated | Easy | Secure

HANA Cloud Platform Identity Management

Devices

SQL Anywhere

Remote Data

Sync

Smart Data

Streaming

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Internal

Healthcare & Life Science Transportation

Industrial

Consumer& Home

Energy

Buildings IT & Networks

Security/Public Safety

Retail

Tracking Human, Animal, Postal, Food / Health, Packaging, Baggage

Jeeps, Cars,Ambulances

Breakdown,Lone Worker

Tanks, Fighter Jets

Battlefield Comms

Homeland Security,Fire

Environ, Monitor, etc.

POS Terminals

Tags

Cash Registers

Vending Machines

Signs, etc.

Servers

Storage

PCs, Routers

Switches

PBXs, etc.

Vehicles, Lights, Ships

Planes, Signage

Tolls, etc.

Assembly / Packaging, Vessels / Tanks, etc.

Motors, Drives, Converting Fabrication

Pumps, Valves, Vats, Conveyors, Pipelines

MRI, PDAs

Implants, Surgical Equipment

Pumps, Motors

Telemedicine, etc.

Digital Cameras

Power Systems, MD

Dishwashers eReaders

Desktop Computers

Washers / Dryers

Meters, Lights, TVs, MP3

Game Consoles, Lighting

Alarms, etc.

Turbines

Windmills

UPS

Batteries

Generators

Meters, Drills

Fuel Cells, etc.

AlternativeSolar, Wind, Co-Generation, Electrochemical

HVAC

Transport

Fire & Safety

Lighting

Security

Access, etc.

Beecham Research

The Internet of Thingsis relevant for all segments

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Internal

Retail IOT Core ScenariosUsage, Value, Technology, Complexity

Scenario Description Value Preposition Technology Complexity

Store

Heatmapping

Capture client movements in store with IOT technology. Cluster and

analyze behaviors, built correlations with promotions, merchandize

Employee Experience Optimization, Identify white

spaces, peak times and optimize layout and workforce

Use predictive methods for

workforce, store layout and

assortment planning

++ Sensors

++ Integration

+ Processes

Smart Fitting Room

Capture customer interactions in fitting room, analyze customer

needs and workforce requirements, interact with the customer while

in the cabin, offer cross and upsell, different sizes

Optimize employee training, available product

information. Integrate product recommendation and

assortment planning

RFID tagged products are

recognized and trigger

personalized customer interactions

+++ Sensors

++ Integration

++ Processes

Product

Serialization

Serialized RFID Tags are on each product, readers track and

automate any movement, picking, packing, goods issue, checkout

End 2 end Supply Chain automation and optimization,

Picking, Inventory automation, Store movements, POS,

POE

HCP with EPCIS tracks every

movement, HCI triggers backend

processes.

+++ Sensors

+++ Integration

+++ Processes

Store Sensorization

Capture environmental data (temperature, humidity, light) and

energy consumption on different levels and devices.

Track fridge temperatures to avoid loss, reduce and

optimize energy consumption in every area, sustainability

HCP for data collection and

analytics and alerts, use predictive

algorithms

+ Sensors

+ Integration

+ Processes

Smart ShelvesCapture shelf interactions and changes with sensors detecting the

products, watching over facing, wrong placements and empty

spaces. Cameras can watch customer shelf interaction.

Learn about customer behaviors, optimize layouts and

trigger restock operations

HCP, video, touchsensors, RFID, +++ Sensors

++ Integration

++ Processes

GamificationCombine customer in store experience with digital elements, offer

benefits in points for specific interactions like treasure hunt, store visits

Enhance and optimize shopping experience and

clientteling

HCP, iBeacon, WIFI, geo location + Sensors

+ Integration

+ Processes

Smart Store

Combine the digitization of the store, shelves, workforce and

products. Knowing where which product is, which customer with

what preference is there and available employees.

Enable max automated and optimized processes

around the store

HCP, iBeacons, WIFI, RFID,

consumption, movement, state

sensors

+++ Sensors

+++ Integration

+++ Processes

Smart ProductsUse sensor technology to analyze and optimize product usage.

Enhance customer experience as well as optimization of the product

development and customer relationship

Enhance features of products, enable products for rent,

enhance usability and benefits of products, ease return

and recycle processes.

GPS, rotation, location + complex

sensors, bluetooth / WIFI

connectivity

+++ Sensors

++ Integration

+ Processes

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Internal

Store HeatmapEmployee Experience Optimization

Employee Experience

RFID

3D Cam

iBeacon

WIFI

Sensor technology

used

RFID

Track product and basket movements (clothing,

shopping carts) record at POS and POE theft control

Supported scenarios

by sensors

3D Cam

Use face detection to generate customer movement

profiles, track shelf layout

iBeacon

Track equipped baskets moving in store, enable

proximity based customer interaction.

WIFI

Track customers in store based on wifi tracking of

smartphones, additional in door location services with

personalized mobile app

Customer counting and path

analytics trigger workforce

activities

Predictive analytics for real

time POS workforce

WorkforceInsightUse predictive and analytics to

improve customer interaction

and product placement

Gain insight on customer shopping

behavior and product interaction

Space Layout

Detect usage of space,

reference customer moving

path to baskets

Optimize space layout

according to baskets, customer

behaviors and white spaces

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Internal

Digital SpacesHCP Solution

Employee Experience

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Internal

Digital SpacesHCP Solution

Employee Experience

Retail Store Operation

Personas

• Wants to analyze customers behavior in the store to optimize the product (or signage) placements

• Wants to find out customer conversions

• Wants to optimize staffing to provide better customer services

Solutions

• Combine data across different types of sensors to understand favorite paths, store heat maps, dwell times, shopper counts etc. to get real time insights into in-store customer activities

• Provide revenue/cart analysis by foot traffic and time

• Identify areas in which client tellers have the most impact

Supported scenarios

Retail Store Marketing Campaign Effectiveness

Personas

• Wants to measure success of marketing campaigns

Solutions

• Provide analytics on foot traffic trends on sales events

• Provides analytics on revenue versus sales events

Optimize retail stores performance in the region

Personas

• Want to monitor & optimize promotion activities across all stores

• Want to analyze trends across stores of a region

Solutions

• Provides analytics on foot traffic trends on sales events for all stores in a region

• Provides analytics on revenue versus sales events and trend across all the stores in a region.

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Internal

Digital SpacesHCP Solution

Employee Experience

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Internal

Customer ExperienceSmart Fitting RoomCustomer Experience Optimization

RFID

3D Cam

Light

Movement

Sensor technology

used

RFID

Product recognition to trigger customer interaction

Supported scenarios

by sensors

3D Cam

Customer recognition, smart Mirror support and fitting

advisory

Light

Create convenient environment based on product

category and customer segment

Movement

Track customer behavior in cabin and provide

convenient support, call for assistance

Offer different size and

alternative product bring service

into cabin.

Provide max. convenience

when trying products, offer

purchase in cabin and deliver

home option

ConvenienceClientelingProduct and offer

recommendations, call for

different size

Use product and customer

recognition to provide automated

personalized proposals

Product Info

Show all details of the product,

environmental photos, usage

proposals

Best possible information about

the product for max customer

confidence

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16Internal

Serialized ProductsEnd to End Product Tracking

RFID

GPS*

Sensor technology

used

RFID

Process automation along the whole supply chain

through DC and stores including POS and POE, theft

control

Supported scenarios

by sensors

RFID

Packing and unpacking automation, picking and

inventory control, counting

RFID

Permanent inventory in store, back/front store

movement automation, product identification

RFID

Customer interaction in clienteling scenarios as smart

fitting room and public events tracking, proximity

marketing, plagiates

Product recognition enables automated

and personalized customer interaction with

smart fitting room.

EPC identification supports post sale

scenarios as product appearance

tracking in the wild and return / repair

ClientelingAutomationReal time localization of any

product, reliable and precise stock

information, POS, POE

Use serialized product information

(EPC) and RFID to automate process

steps along the supply chain

Inventory

Track In-store inventory

movements, back-front store, shelf

misplacements

Permanent Inventory technology

eliminates any counting

operation

Efficiency

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 17Internal

Store SensorizationEnergy Consumption Optimization

Temperature

Sensor technology

used

Temperature

Surveillance for best energy usage and comfort for

employees and customers

Humidity/ Air

Quality

Amps

Movement

Supported scenarios

by sensors

Humidity / Air Quality

Comfort for employees, customers and products.

Amps

Track energy consumption on asset level to recognize

energy spoilage.

Movement

Track movements for security reasons and intelligent

light switches

Track energy consumption to

observe leaks

Proof optimized usage of

resources

SustainabilityConvenienceTrack temperature, humidity and

air quality and reference to sales

anctivities

Ensure optimized environment for

employees and customers

SecurityUse sensor technology to surveil

the entire store

Reduce risk and insurance fees

Energy Management

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 18Internal

EfficiencySmart ShelvesEfficiency Optimization

3D Cam

Sensor technology

used with shelves

3D Cam

Track facing and layout change, discover

misplacements, trigger refill, replenishment, track

customer interaction

Weight

Sensor

RFID

Ultra

Sound

iBeacon

Supported scenarios

by sensors

Weight Sensor

Track product movement, discover misplacements,

inventory, trigger refill, replenishment

RFID

Track product movement, discover misplacements,

real time inventory, trigger refill, replenishment.

Ultra Sound

Track product movement, discover misplacements,

real time inventory, trigger refill, replenishment.

Optimize sequences and

process, find triggers, filter task

lists by iBeacons in shelf or store

area

Predict efforts and tasks,

automatic schedule of workers

WorkforceInteractionTrack real time interaction and

trigger additional customer

interactions.

Record activities in the shelf,

optimize shelf layout and assortment

Forecast

Integrate shelf interactions into

forecast for fast moving

products

Optimize product presentation

and customer convenience

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 19Internal

Smart ProductsWith sensorized products

Pressure /

Weight

Sensor technology

used with shelves

Conductive

RFID /

iBeacon

GPS

Pressure / Weight

Ensure limits for product usage, track failures, enhance

usage scenarios

Supported scenarios

by sensors

Conductive

Access biometric parameters to support convenience

and well beeing

RFID / iBeacon

Track product movement, record where product is

used, support rental and plagiates

GPS

Track product movement, support additional usage in

sports etc.

Use wearable products to

access HBR, skin conduction,

diabetes data.

Include additional services and

features based on biometric

data

WearableUsage DataSupport additional features,

enable better product support

and rental business scenarios

Record activities, optimize usage

Convenience

Enhance product features

around usage scenarios

Provide better convenience for

customers, ease of use.

Customer Experience

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Internal

Thank You

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© 2016 SAP SE or an SAP affiliate company. All rights reserved.

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