Making Omnichannel Commerce
Work with the Latest Technology
Innovations
Adam Silverman, Principal Analyst
July 1st, 2015
@AdamKSilverman
© 2015 Forrester Research, Inc. Reproduction Prohibited 3
“The pace of change is accelerating faster than anticipated a year ago.”
Blake Nordstrom,
President of Nordstrom
April 2014
© 2015 Forrester Research, Inc. Reproduction Prohibited 4
Mobile connects us wherever we go
Base: 38,146 US online adults (18+) who personally use a smartphone to go online
*Base: 23,511 US online adults (18+) who personally use a tablet to go online
Source: Forrester’s North American Consumer Technographics® Online Benchmark Survey (Part 1), 2014
© 2015 Forrester Research, Inc. Reproduction Prohibited 5
Agenda
› The Emergence Of The Connected Customer
› How Omnichannel Technology Creates Opportunities In Retail
› How Should Retailers Respond
© 2015 Forrester Research, Inc. Reproduction Prohibited 6
Where the transaction occurs is irrelevant
© 2015 Forrester Research, Inc. Reproduction Prohibited 7
of store sales are influenced online
52%
Sources: Forrester Research US Cross-Channel Retail Sales Forecast: 2014 To 2018, media.pathfinder.gr/cman_img_f/9549445219531437587.jpg
© 2015 Forrester Research, Inc. Reproduction Prohibited 8
of online sales now from mobile & tablet
28%
Source: The State of Retailing Online 2015. Base: 41 retailers.
© 2015 Forrester Research, Inc. Reproduction Prohibited
73% - expect to click and collect
86% - expect to return online orders in the store
89% - expect to view the in-store inventory of
products online
Customers have high expectations
when it comes to channel integration
A commissioned Forrester study with Purolator, May 2014
© 2015 Forrester Research, Inc. Reproduction Prohibited 10
won’t buy in-store
1/4
Source: North American Technographics Retail Survey 2013
© 2015 Forrester Research, Inc. Reproduction Prohibited 11
12%
15%
15%
17%
17%
18%
19%
20%
22%
24%
To check availability of a product
To read customer reviews of a product
To access my shopping list
To access the Internet via guest Wi-Fi
To locate a nearby store or to check store hours
To take picture of a product to share with friends
To look up product information
To find or redeem a coupon/coupon code
To research a product
To compare prices
In the PAST 3 MONTHS, have you used your cell phone for any of the following while shopping in a physical store
Source: North American Consumer Technographics Retail Survey, 2014. Base : N=4,814 US Online Adults 18+ (Weekly or more) who are cell phone users
Customers research product in-aisle
© 2014 Forrester Research, Inc. Reproduction Prohibited 12
Digitally enabled associates add value
Forrester’s North American Consumer Technographics Retail Survey, 2014
© 2015 Forrester Research, Inc. Reproduction Prohibited 13
Source: Forrester’s North American Consumer Technographics Retail Survey 2014. Base 5007 US online adults (ages 18+)
Digitally enabled associates add value
© 2015 Forrester Research, Inc. Reproduction Prohibited 14
In-store data capture has skyrocketed
Sources: RetailNext
© 2015 Forrester Research, Inc. Reproduction Prohibited 15
Beacon Trials Enter The Retail Space
Source: Forrester’s Q2 2014 Global Mobile Executive Online Survey. Base: 72 digital business professionals (multiple responses accepted)
© 2015 Forrester Research, Inc. Reproduction Prohibited 16
of enterprise data in used for analytics
12% Only
Sources: Forrester’s “The Forrester Wave: Big Data hadoop Solutions, Q1 2014” report
© 2015 Forrester Research, Inc. Reproduction Prohibited 17
45% of consumers have chosen,
recommended, or paid more for a brand that provides a personalized
service or experience
Sources: Forrester’s North American Consumer Technographics Brand Compass Survey, Q3 2014
© 2015 Forrester Research, Inc. Reproduction Prohibited 18
Source: Q1 2014 Global eBusiness And Channel Strategy Professional Online Survey. Base: 79 eBusiness & channel strategy professionals
Personalization at the top of the priority list
Unified customer account across channels 28% 19% 13%
Cross channel loyalty rewards 24% 19% 12%
In-store email capture 10% 10% 29%
Making in-store inventory information available online 9% 13% 20%
Buy online, ship to store 7% 13% 18%
Buy in-store, ship to customer 8% 11% 17%
Ship from Store 12% 13% 13%
In-store mobile/tablet POS devices for associates 13% 12% 13%
Buy online, pick-up in-store 10% 12% 13%
“When, if at all, are you planning to implement the following capabilities?”
We already support this capability
Within the next 12 months
12 to 24 months
© 2015 Forrester Research, Inc. Reproduction Prohibited 19
Agenda
› The Emergence Of The Connected Customer
› How Omnichannel Technology Creates Opportunities In Retail
› How Should Retailers Respond
© 2015 Forrester Research, Inc. Reproduction Prohibited 21
Poor store connectivity prevents modern retail apps from being effective
#1
© 2015 Forrester Research, Inc. Reproduction Prohibited 22
Retail store systems aren’t integrated
#2
© 2015 Forrester Research, Inc. Reproduction Prohibited 23
Existing systems can’t provide real-time data insights across all channels
#3
© 2015 Forrester Research, Inc. Reproduction Prohibited 26
Agenda
› The Emergence Of The Connected Customer
› How Digital Creates Opportunities In Retail
› Recommendations
© 2015 Forrester Research, Inc. Reproduction Prohibited 27
Your Roadmap To Building Your Future
Retail Store:
1. Expose inventory visibility
2. Drive towards a single view of the customer – align teams too
3. Prepare for real time data driven business – online & stores
4. Optimize customer and staff mobile experiences
5. Build your digital store platform
29 © 2015 FUJITSU
Connect. Challenge. Inspire.
Fujitsu Interstage Retail Agility
Keith Swenson VP of R&D, Fujitsu America July 1st 2015
30 © 2015 FUJITSU
Fujitsu – global ICT provider
Fujitsu is a leading provider of
Information and communication
Technology (ICT) business solutions
for the global marketplace, offering a
full range of technology products,
solutions and services.
Headquarters: Tokyo, Japan
Established: 1935
Net sales: US$ 46.2 billion
No. 4 globally, No. 1 Japan
159,000 employees
Supporting customers in more than 100
countries
5% R&D spend (US$ 2.2 billion)
Research facilities: Japan, US, UK, Germany,
China, Singapore
32 © 2015 FUJITSU
Customers Don‘t Think in Channels...
Customers now have the freedom to achieve their goals throughout the shopping process…
…using whichever
channels and touch points they
prefer.
33 © 2015 FUJITSU
Omni-channel Experience by the Numbers
$1.1 trillion store sales were influenced by the web2
80% of store shoppers
check prices online1
$12 billion retail sales
made on smartphones3
$252 billion in sales for US
e-retailers in 20134
1-2. MIT “Beyond the Checkout Cart” 3. Forrester Research, Inc. 2015 4. Forrester, Inc.
35 © 2015 FUJITSU
Omni-channel Commerce Gap
71%
50%
41%
But only about a third of retailers offer in-store stock-level information today.
32% Nearly three-quarters of customers regard in-store stock level information as critical for their purchase decision.
Many expect orders to be ready for
pick up within 1 hour.
40% of retailers reported that they are having difficulty integrating back-office technology across all their channels
Only slightly more than half of retailers fulfill their expectations.
Half want to collect orders in store. But less than half of retailers offer in-store pick up. 36%
55%
Omni-channel Ideal vs. Retailer Realities
Forrester Research, Inc. 2014
38 © 2015 FUJITSU
Unified Commerce Platform
Unified Commerce Enterprise
BI CRM
FIN
INV
MFG
Customer
Devices
Web Site
Real-Time Retail
Middleware
Customer &
Associate
Stations Social Media
Integration
Rules Engine
Associate
POS
Real-time Task Management
Boston Retail Partners, 2015
39 © 2015 FUJITSU
Technology Enablers
Middleware/SOA/ESB
Middleware/SOA/ESB Robust middleware or service-oriented architecture (SOA) layer for integration or the
“glue” between retail systems Essential in effectively uniting various retail systems to deliver unified commerce
experience.
Master Data Management - MDM Maintains a single version of the truth for product, customer, vendor, location and
asset information. Ensures data is consistent, accurate and up-to-date.
Business Process Management - BPM Enables the definition, execution, monitoring, and optimization of business
processes across the retail enterprise. Deliver unified customer experience across all customer touch points, efficiency and
consistently.
Real-time Analytics Enables retailers to analyze customer, transaction and inventory data Better understand your customers and your business.
41 © 2015 FUJITSU
What is Interstage Retail Agility?
Software platform - enable retailers meet business operations challenges with process-centric solutions
Task management and process automation
Automatic discovery, monitoring, and alerting
Rules management
Agile GUI customization
Integration - Master Data Management, Data Transformation, Connectors (SAP, Oracle, DBs, etc.)
On-premise or cloud deployment options
Framework for delivering and customizing operational retail applications
Improve Store operations with analytics-driven “smart” processes
Task/workflow management enabling omni-channel initiatives
Provide complete, accurate view of the customer and inventory
Integrating back-office technology across multiple channels
Connecting legacy POS, eCommerce, ERP, and mainframe systems
Fujitsu Solution - assets and capabilities to deliver global retail solutions
42 © 2015 FUJITSU
Fujitsu Interstage Retail Agility
SOA Integration
Business Process Management
Composite Application Framework
Retail Framework
Business Rules
Master Data Management
Analytics
Powering Unified Commerce: Interstage Platform
BI CRM
FIN
INV MFG
Customer
Devices
Web Site
Customer &
Associate
Stations Social Media
Integration
Associate
POS
Real-time Task Management
43 © 2015 FUJITSU
Modern and open platform, built on a secure, highly available and scalable architecture
Key Differentiators
Retail-aware business processes, analytics, rules, integration, and customizable GUIs
A single platform, combining the worlds of Integration, Business Process Management, Rapid Application Development and Analytics
Support task management for any type of workflow including human-to-human workflows, system-to-system integration-type interactions and hybrid processes
Designed to support multi-tenancy and cloud deployment
Automatic Process Discovery to automatically discover and visualize business process flows, and provide monitoring, alerting and analytics
44 © 2015 FUJITSU
Retail Agility Target Use Cases: Store Operations
Monitor and respond in real-time Effectively monitor in-store task management and adherence to SOPs and KPIs with
BPM Gain visibility into all stores and react proactively before problems occur –
management by exception Use BPM to set rules to handle anomalies
Use Case Scenario Retailer running market specific promotional event on a fast moving, high-margin
item in all stores Track store level execution of related tasks in all stores through real-time merchandise
action plan conformance and KPI monitoring Results can be monitored through task management, labor scheduling, and
ultimately sales data in real time Detect, report and send alerts to Sales, Operations and Merchandising teams & notify
the Store Manager before event ends and sales goal is missed Gain insight through the reported tasks and data from across the stores to quickly
identify problems and proactively intervene before it’s too late
45 © 2015 FUJITSU
Retail Agility Target Use Cases: Supply Chain
Enterprise inventory visibility…in real-time Real-time inventory visibility throughout supply chain with Middleware/SOA
integration BPM & business rules help improve inventory fulfillment routing and margin
optimization
Use Case Scenario Provide customer with real-time visibility into store inventory to confirm a store has
the product with the exact features, color or style Retailer may not have the exact item the customer is looking for in stock and in the
store at that moment Perform a real-time, enterprise-wide store inventory lookup to fulfill the order
from another store or distribution center Integrate commerce systems, order management, merchandising and
warehouse management system (WMS) to assemble a comprehensive view of their complete inventory in real-time
Locate the product and notify the customer or sales associate that it can be delivered quickly or picked-up.
46 © 2015 FUJITSU
Retail Agility Target Use Cases: Customer Engagement
Personalized selling and promotions Provides 360-degree view of customer: past purchases, preferences, likes,
online & off-line BPM/business rules prompt sales associate with pre-defined processes for
guided selling
Use Case Scenario Alert store associates when customers enter the store and identify the
customer using WiFi and Beaconing technologies Enable associate to leverage personalized information about the customer’s
shopping history and preferences Customer shopping profile can be accessed in real-time and presented to a
sales associate – providing a powerful 360-degree view of the customer including past purchases, preferences and online and in-store browsing history
Prompt the sales associate with pre-defined processes for guided selling customer mentions she is looking for a new scarf and the sales associate
can instantly provide recommendations based on items that can be paired with the customer’s likes