extended retail solutions - cisco.com · greater differentiation ... note: % of respondents saying...

Extended Retail SolutionsSelling PresentationJune 9, 2003

EXTENDED RETAIL SOLUTIONS

2CGE&Y Confidential – Do Not Distribute Without Permission

© 2003 Cap Gemini Ernst & Young - All Rights Reserved

Selling Process




WHAT ARE WE SELLING?Look to Technology to Enable a RetailTransformation.

•Our Offer: A free Insight Day for a retailer at a CGE&Y Accelerated Solutions Environment (ASE) that gives them theopportunity to leverage the combined product roadmaps of Intel, Cisco Systems and Microsoft put in a retail contextby CGE&Y to determine how they can best position themselves to take advantage of new and emerging technologies.•We recently conducted a highly successful Insight Day for a $35B US Supermarket Chain anchored by knowledgebursts such as:

–Item Velocity Monitor/Real Time Retail–RFID–Connected Customer/Store as Media–Wireless, Mobility and Voice over IP

•Concepts, case studies and research:–PC Volume Economic Model–Metro AG Store of the Future–ERS Consumer Shopping Satisfaction Research Study

•Deliverables:–Transformation Map–Proof of Concept–Event Journal (CD ROM with all event content distributed upon conclusion of event)

•Outcome: Five initiatives that the Supermarket Chain wants us (ERS Partners) to assist with were identified, the firstproposal was delivered within two weeks of the event.




Presentation You Can Use With Clients




The capability andperformance of people

needs to be enhanced todrive down operational

costs

Impacting market share andprofitability

Impacting operational cost

Current Retail Situation…

Research shows:Consumers have becomeincreasingly demandingand frustrated with their

in-store experience

SCM needs to be improvedto improve margins

Retailers want to have 100% visibility inthe SC; minimal stock, max. availability;

reduce supplier lead times, eliminatepossibility of human error….

Retailers want to get moreout of technology assetswhile driving down TCO

RetailToday




• Consumers have become increasingly demanding and frustrated with theirin-store shopping experience

• Consumers will reward retailers that help them save time and treat themwith respect, honesty and fairness

• Increased competition is driving the need for higher service levels andgreater differentiation

• Labor issues continue to plague the retail industry and impact service

• Recent research indicates that customers are willing to use technology-oriented features and services if available in a store*

* Source: CGE&Y, Cisco Systems, Intel and Microsoft consumer research, 11/02

The Consumer Climate




New Standards and Technology ProvideOpportunities and Challenges

Technology Horizon:•Store as Media: Exciting new rich-media self-service applications and devices withcinema-quality graphics providing game-like interaction and changing the in-storeexperience

•Wireless networks are available to connect and mobilize all in-store devices providingstore planners with near-total flexibility and allowing for the reinvention of processesand roles for store employees

•14-character product codes and global data standards need to be rapidly adoptedacross multiple entities within the organization

•RFID is comingChallenges for Retailers:• Processes, roles and business rules defined without mobility, real-time data and self-service in mind•Creating a new shopping experience that matches the consumer relevant brandattributes•Defining an adaptive architecture that enables ever-increasing performance,functionality and interoperability with decreasing total cost of ownership•Graceful migration away from aging proprietary legacy systems




The ERS Ecosystem

ExtendedRetailSolutions is aninitiativespearheaded byIntel, Cisco,Microsoft andCGE&Y createdto provide theglobal retailcommunity withan openstandards-basedalternative totoday’sproprietarytechnologylandscape.

Intel

CGE&Y

Cisco

Processors, Architecture, Innovation, G lobal Tech Support

Lab, Business Case, Technology Roadm ap, IntegrationIn-Store Netw ork, Enterprise Netw ork, Netw ork Adm in, Security, Content Storage

HP, Fujitsu, NCR, Sym bol,

Radiant, W incor

POS Devices, M obile Devices

HP, Dell In-Store Servers, Enterprise Servers

EMN8, HP, Radiant,

NCRCustom er Service Term inals (som e w ith POS capabilities)

Radiant, Triversity, NCR, JDA,Teradata

Softw are: POS, Inventory Mgm t & Replenishm ent, W orkforce Mgm t, eLearning, CRM, Analytics

Microsoft Operating System s, EAI, Database

EMN8 Softw are: Custom er Interaction, Experience Managem ent

HP Support Services




Look to Technology to Enable a RetailTransformation

•Our Offer to you: A free Insight Day at a Cap Gemini Ernst & Young AcceleratedSolutions Environment (ASE) that gives you the opportunity to leverage the combinedproduct roadmaps of Intel, Cisco Systems and Microsoft put in a retail context byCGE&Y to determine how you can best position your company to take advantage of newand emerging technologies.•We recently conducted a highly successful Insight Day for a $35B US SupermarketChain anchored by knowledge bursts such as:

– Item Velocity Monitor/Real Time Retail– RFID– Connected Customer/Store as Media– Wireless, Mobility and Voice over IP

•Concepts, case studies and research:– PC Volume Economic Model– Metro AG Store of the Future– ERS Consumer Shopping Satisfaction Research Study

•Deliverables:– Transformation Map– Proof of Concept– Event Journal (CD ROM with all Event content distributed upon conclusion of Event)




Appendix: Consumer Research Results




We asked 1,000 US consumers about theirshopping experience…

•What’s important to them?

•What frustrates them most?

• How do these frustrations impact their shopping habits?

• How willing are they to use technology-based features andservices to address these in-store issues?

• And how would the presence of such features and servicesimpact their shopping habits?

Source: CGE&Y, Intel, Cisco and Microsoft




10. Having employees who are knowledgeable aboutproducts and/or the store – 54%

• Being able to locate items in the store – 56%

• Being able to get through the checkout quickly and/orwithout hassles – 57%

• Being able to find employees to answer questions orassist in purchase – 60%

6. Being able to communicate with employees – 66%NOTE: % of respondents saying “very important.” Source: CGE&Y, Intel, Cisco and Microsoft

The shopping experience IMPORTANTtop 10…




The shopping experience IMPORTANTtop 10…

• Being able to return products to the store withoutdifficulty – 67%

• Having the products you want to purchase be in stock –68%

• Having prices visible on products or shelves – 70%

• Getting respectful treatment from employees – 75%

1. Having products priced the same at checkout as on theitem or shelf – 79%

NOTE: % of respondents saying “very important.” Source: CGE&Y, Intel, Cisco and Microsoft




Consumers are most FRUSTRATED by…

• Difficulty getting through checkout quickly and/or withouthassles – 61%

• Lack of visible prices on products or shelves – 56%

• Difficulty finding employees to answer questions or assist inpurchase – 55%

• Lack of employee knowledge about products and/or store –52%

• The product you intended to buy was out of stock – 48%

• Difficulty locating items in the store – 45%NOTE: % of respondents saying “occasionally,” “often” or “always.” Source: CGE&Y, Intel, Cisco and Microsoft




The impact…

61%said the problems caused them to

stop shopping or shop less frequentlyat that store





Consumers are willing to use technology-based features and services if available

9. Self-service computer screens throughout the storeproviding information about how to use products – 61%

8. In-store computer screens to order a product(s) not availablein the store – 63%

7. Self-checkout at the main bank of registers – 63%

6. Self-checkout at different department locations throughoutthe store – 65%

5. Self-service computer screens throughout the storeproviding information about products – 68%

NOTE: % of respondents saying “yes” when asked if they’d use the features/services if they were available in a store.Source: CGE&Y, Intel, Cisco and Microsoft




Consumers are willing to use technology-based features and services if available

4. Computer screens providing special promotions anddiscounts – 69%

3. Self-service computer screens to help you determinewhether you had all the products necessary to complete aparticular project – 70%

2. Self-service computer screens providing location ofproducts in the store – 73%

1. Clerk-assisted checkout available in different pointsthroughout the store – 89%

NOTE: % of respondents saying “yes” when asked if they’d use the features/services if they were available in a store.Source: CGE&Y, Intel, Cisco and Microsoft




With positive purchasing results…

78% might buy a higher-quality item if they learned of it

59% would be more likely to spend more time in the storeduring each visit

48% would tend to spend more money

44% would be more likely to shop in that store





Do demographics matter?


Men more likely to …

Stop shopping as aresult of frustrations

in the store

Trade up to ahigher-quality product

Younger Middle Older

Willingness to use technology:

AgeGender

Men

TechnologyNeophyte

Even those who DON’Town a PC or haven’t

made an online purchase still indicated

willingness to usein-store technology

Technical Familiarity

extended retail solutions - cisco.com · greater differentiation ... note: % of respondents saying...

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