ivano ortis emea research director december 4, 2008 · 2008-12-05 · discussion objectives about...

Ivano Ortis

EMEA Research Director

December 4, 2008

© Global Retail Insights, an IDC company

Discussion Objectives

About us

EMEA Retail Industry Pulse

THE Strategic Priority in Retail

EMEA Retail IT Directions Overview– Retail Demand Intelligence– Store Technologies– Online/Cross-Channel Commerce– Consumer Intelligence

Future Retail Technologies: GRI Vision

Recommended Actions to Retailers


Global Strategic Retailing Research Advisory Services

GRI programs provide retailers and IT vendors relevant and timely market research on retail industry activity and technology usage from beginning to end – from the supply chain through the consumer shopping experience – across geographies.

Retail IT Infrastructure Strategies (Lead Analyst: Bob Parker)Supports the needs of retail IT executives and architects who focus on ensuring the stability, scalability, and flexibility of their retail enterprise technology model. Technologies covered include SOA, business intelligence, enterprise software, and managed networking.

Retail Store, Channel, and Consumer Strategies (Lead Analyst:Ivano Ortis)

Supports the needs of store operations and retail operations leaders and IT executives responsible for supporting all aspects of the customer selling process. Technologies covered include store and cross-channel technologies.

Retail Supply Chain, Demand Planning, and Merchandising Strategies (Lead Analyst: Leslie Hand)

Supports the needs of senior merchandising, supply chain, and retail IT executives responsible for ensuring successful delivery of products from source to shelf. Technologies covered include enterprise merchandising and planning solutions.

EMEA IT Opportunity: Retail & Wholesale (Lead Analyst: Ivano Ortis)


Engagement Models

GRI Custom Research Strategy

Market SizingGTM

ServicesSales & Marketing

Enablement

Business & ITAlignment

ITBenchmarking

Vend

or F

ocus

Reta

iler

Focu

s

StrategicBenchmarking

As part of our custom research offering, GRI works with clients to deliver a range of strategic advisory services.

StrategicPlanning

Strategic

Planning


Discussion Objectives

About us



Retail IT Directions Overview– Retail Demand Intelligence– Store Technologies– Online/Cross-Channel Commerce– Consumer Intelligence

Future Retail Technologies: GRI Vision



ConsumerExperience& Insights

"Can you make sure we talk about something other than the economy?"

UK online retailers GAME, play.com, gamestation not meeting consumer demand for GTA IV

Retail Sales in Italy declined to 2005 levels....but some retailers are expanding (e.g. Gruppo Coin)

the Sales & Marketing VP of a major Eastern EU retailer whispered in my ear, “We are scared about the rising inflation, we need advise on targeting customers better"


Consumer-Centricity THE Strategic Priority in Retail

Require understanding consumers’ mindsets across channels– as opposed to traditional customer segmentation based solely on

demographics

Require an evolution of shopping platforms– Multi-channel retailing platforms– Self-service technologies– Interactive Marketing & Promo– Mobile integration

ANY application that can enrich the shopping experience – improve retail workflows efficiencies– Respond to product quality, safety and retail ‘greening’.

Bottom-line: drives larger and more profitable transactions


About us



Retail IT Directions Overview– Retail Demand Intelligence– Store Technologies– Online/Cross-Channel Commerce– Consumer Intelligence

Future Retail Technologies: 2020 Vision



Retail IT: Why Now?

Inflexible Legacy Apps

Master Data Quality Cross-Channel Transparency

EmergingMarkets

Changing ConsumerInfluences

Retailer Quest For

Optimisation

Reactive Traditional Workflows

Regulatory& Social

Pressures

Limited Science/Intelligence

Data SecurityCustomer Privacy

Green Retailing

Mega Merchants &Hyper-Competition


Segment Priorities

Food&

Drug

GeneralMerchandise

&Hypermart

Big Box&

Small BoxSpecialty

DepartmentStore

Convenience&

Fuel

Strategic Issues

•Adv. Category Mgmt

•In-Stock Levels

•Perishables

•Promotions

•Labor Optimization

•POS Refresh / PCI

•Loyalty / CRM

•Self-Service

•Inventory Visibility

•RFID

•Replenishment

•Global Sourcing

•SKU Rationalization

•Labor & Task Mgmt

•Loyalty / CRM

•Inventory Optimization

•Store/SKU-level Planning

•Global Sourcing

•Multi-Channel

•Replenishment

•Private Label

•Apparel Planning

•Pricing

•CRM

•Mobile

•Merchandising

•Category Planning

•Payments

•Replenishment

•Supplier Sync


EMEA Retail IT: Roadblocks & Challenges

Access to Data/Poor Data Quality

Lack of System Integration/Too Much Legacy

Limited Decision Support or Analytics

Little Supply Chain Visibility

Lack of ROI/Metrics/IT Demand Coordination

Lack of Cross/Multi‐Channel Loyalty

Inefficient Checkout

Lack of Business Process Optimization


Master Data Management Lessons Learned from the Leaders

“Lack of centralization & automation in merchandising processes- decentralized and manual article master-data creation - resulted in poor product-information quality”

“Data fragmentation across disparate systems and un-structured, manual data-management processes had to be re-engineered and automated in the new system.”

“Low SKU-level accuracy, poor data-integrity and essentially non-existent auto-replenishments”

“Stock levels were not synchronized to demand patterns. Low data-quality, both at master-data and point-of-sale level, led to high invalid article-rates”

“From a system point of view, there was also duplication of articles and customer records. Merchandise-data management was labor intensive”

“Data Integrity. The essential requirement to increase confidence in merchandise planning and purchasing..was a major technical challange.”

“We required rich product attributes”


Business Drivers to ICT Investments in EU Retail

1. Improve demand forecasting and analysis capability

2. Expand customer marketing and loyalty programs

3. Create more effective promotions

4. Decrease store operating costs

5. Enhance data security

6. Expand international store locations

Source: Retail IT Spending Survey, GRI, May, 2008

Number of respondents = 451 EMEA Retailers


2008 Retail IT Spending: Key Findings (July 2008 Edition)

WW 2008 retail IT spending: $80.4BTotal WW 2011 Forecast: $96.7B2006 – 2011 Growth Rates– US: 5.1%– Asia / Pacific: 5.3%– Western Europe (WE): 5.8%– Rest of World: 14.4%

WE 2008 retail IT spending: $27.3B2007 – 2011 CAGR Differ by EMEA Country, Retail sub-segment & Technology Category (we cover 27)


ConsumerExperience& Insights

Real-time Analytics

Data & Payment SecurityRetail Integration/Data Standardization

Managed IP Networks/Optimized Infrastructure

Proliferation of in-store

devices

Centralized POS/Store Systems

Cross Channel

Evolution

Precision Promo,Price,

Loyalty

Wrapping-up 2009 EMEA Retail IT Directions

Responsive Supply

Networks

Retail Demand

Intelligence

Total Inventory Visibility

Advanced Retail

Planning


Retail Demand Intelligence (RDI)..

..what 3 out of 4 EMEA retailers want.


Retail IT Model

EnterpriseRetail Planning

CustomerSelling Systems

Global Supply Network

Perishables

Demand Intelligence EngineCorporate Systems & Data Security

Integration Platform

Sourcing

TradeManagement

Logistics

Visibility

Procurement

PLM

RFID

CategoryManagement

AssortmentPlanning

AllocationPlanning

Price / Promo / Markdown Planning

InventoryManagement

Returns

SpaceManagement

Point-of-Sale

CRM & Loyalty

E-Commerce

Labor Management

Self-Service

Auto-Replenishment

DataSynchronization

ItemManagement

Payments

Guided Selling

Mobile

Pharmacy

Loss Prevention

Digital Media

Food &Drug

Hardlines

Softlines

RetailStore

Online

Phone

Retail Demand Intelligence (RDI) represent both the integrated “Engine” underpinning effective retail operations and the embedded functions & analytics unlocking advanced demand intelligence abilities


RDI: Interactive Performance Management

PredictivePredictiveActionAction

DemandIntelligence

Results

ReactiveReactiveActionAction

BusinessIntelligence

Retail Execution

Operational Data

EnterprisePerformanceManagement

EnterprisePerformanceManagement

AdjustmentsKPI Scorecard


RDI Benefits

Pricing

3‐5% gross profit

improvement along

with 2‐4% sales lift

Inventory

20‐35% OOS reduction, 2‐3x more turns,

10‐20% carrying costreduction

Markdowns

Store Labor

Customer Marketing

15‐35% increase in

transaction sizes5‐10% increase in

loyal customer profitability

Promotion

25‐30% compressionIn promo cycle time

Merchandise Planning

sales lift fromStore‐centric allocations

Product Sourcing

45+% faster sell‐

through


The new consumer shopping experience…


Strategic Store IT Investments Should…

Influence

Deliver

Intrusion

Avoid

Impulse

Broaden

CustomerSelling

Systems

Point-of-Sale

CRM & Loyalty

E-Commerce

Labor Management

Self-Service

Auto-Replenishment

Payments

Guided Selling

Mobile

Loss Prevention

Digital Media


Creating “At-Product Influence”

DigitalSignage

PriceOptimization

MobileScanning Devices

Guided Selling/Self‐Service

Store SensorNetwork

TargetedConsumer Marketing


The New Retail World Self + Online + Digital + Mobile

POS/Payment systems

Self checkout/servicesystems

Labor managementsoftwareeCommerce/multi-channel softwareLoss Prevention

Digital signage

Retail-specific mobiledevicesOther

Source: Retail IT Spending Survey, GRI, May, 2008N=451 EMEA Retailers

2008 Store Systems Budget Allocation

Systems = hardware + software 44%!!


Store DB

Retail Store Systems

Store Back- Office

KioskPOS Self- checkout

Mobile Personal Shopping Assistant

Digital Signage /

ESL

Network Video

DC Back- Office

Suppliers, Distributors

eCommerce

Call Center

DC

Enterprise Systems

Network

Head OfficeBranch OfficeStore Sync Paths

Other Data Sync

DBData

Warehouse Enterprise Systems

DC DB

Distributed POS Architecture


Retail Store Systems

Store Workbench

KioskPOS Self- checkout

Mobile Personal Shopping Assistant

Digital Signage /

ESL

Network Video

DC DB DC Back- Office

Suppliers, Distributors

eCommerce

Call Center

DC

Enterprise Systems

IP VPN

Branch Office Data Sync

Simplified Back- Office & Store Infrastructure

Data Warehouse Enterprise

Systems

Store Management

System

Head Office

Centralized POS Architecture


Reference Proof Points – Store Systems centralization

In-store thin client applications and centralized storage are the key motivations behind networking investments for two out of three European retailers (source: Retail WAN Manager survey, 2008).

“Class of service" to rapidly become a priority due to the convergence of retail store and consumer owned devices in the next two to three years (source: Retail WAN Manager survey, 2008).

The archetype of the networked store will enable the deployment of a centralized real-time database for the entire retail enterprise.

This will make a major contribution to achieving both business consistency and simplification;

Will allow store managers and LOB to react quickly to shopping trends with informed & timely retail decisions.

Mitigating steps for centralised POS systems are doable– The major concern surrounding the decision to implement a centralized PoS

architecture is that it introduces a single point of failure.


Other notable directions

Advanced payments / contact-less payments

Mobile Marketing– Offers driven by specific incentives– From location orientation to Fully Relevant, Context-Aware,

Personalized Mobile Services– Must be quietly influencing

Automated Stores

2D barcode

RFID for customer-facing apps


Online /Cross- Channel

Commerce


Consumers & Online ChannelsConcernant vos achats non alimentaires par rapport à

l’année dernière est ce que…

0% 20% 40% 60% 80% 100%

Vous comparez les prix entre ceux pratiquésdans les points de vente physique et ceux

pratiqués sur Internet

Vous tenez compte des engagements relatifs audéveloppement durable lorsque vous achetez

un produit

Vous êtes exigeant sur la qualité des produits

Vous comparez les prix entre les marques dansle magasin ou entre les enseignes

(% of respondents)Plus Autant Moins NSP

0% 10% 20% 30% 40% 50% 60% 70% 80%

NSP

Kiosque / cornerAutre (Préciser)

Ecrans

Courrierpersonnalisé

Site Webcommunautaire

Magazine oubrochure journalière/

Vendeur en magasin

Les informations enmagasins (

Prospectus dans laboite à lettre

Site de l'enseigne

Forum Internet

Comparateur de prixsur Internet

Site Internet de lamarque

(% of respondents)

Pour un achat de type non alimentaire pouvez vous m’indiquer parmi les propositions suivantes les sources d’information que vous utilisez pour vous renseigner sur un produit ou une marque ?

Source: Global Retail Insights France Consumer Survey,October 2008, 1000 respondents, Actual Results


Online Consumer Requirements

Potential cost and time saving opportunities

Increased shopping flexibility & around the clock availability

Transparent product informationOnline platforms having an immediate, ever-increased

impact on store sales

Digital shoppers & online advocates - rather than first time online buyers - will drive holiday online sales

Multi-channel retailing platforms represent a crucial element to attract new customers and retain loyal ones.

Example - France Consumer Survey:

– 70%+ of consumers surveyed said that the availability of different shopping choices (online, store, catalogue) is an important or very important criteria to be a loyal customer of a retail brand.

–And this is second only to prices!


Online Commerce IT Implications1. eCommerce platform investments to be evaluated against opportunity

costs, including potential uplift on conversion rates

2. The objective is to improve the shopping experience– evolution of digital customer services and intuitive interfaces– From additional sales channel, to informed shopping decisions place– 2009 & beyond: fully turn eCommerce into social shopping networks– Advanced search technologies, semantic Web, natural language and

advanced voice recognition– Is it time for 3D online shopping malls?

3. Consumer data privacy & payment security

4. Never underestimate the value of cross-channel transparency

5. OtherDynamic, On-Demand eCommerce CapacityIntegrate order fulfilment, logistics and payment services if you want to be a serious player in global shopping networksManaged services and SaaS options to hit the market in the second half of 2009


Advanced Consumer Intelligence

http://images.google.co.uk/imgres?imgurl=http://bp3.blogger.com/_gLbDBSlxNps/SFjXM5reZJI/AAAAAAAACi8/LJpdq2RKEf8/s400/analytics2.jpg&imgrefurl=http://hpbpoanalytics.blogspot.com/2008/06/analytics-to-see-rise-in-market.html&usg=__HtoeXMWPAavw2yhnIZ5B7IVby2Y=&h=376&w=310&sz=23&hl=it&start=11&um=1&tbnid=vWV4IqS8nAb8_M:&tbnh=122&tbnw=101&prev=/images%3Fq%3Danalytics%26um%3D1%26hl%3Dit%26sa%3DX


Next Gen CRM/Loyalty

Parallel Objectives:– Capturing changing consumer expectations/behaviors– Tracking competitive dynamics– Optimizing sales performance– Enhancing overall customer satisfaction– Increasing brand value recognition and corporate image

Require complete integration of the shopping life cycle

Result in a distinct differentiating factor for retailers

Metrics: measurable increase in customer retention, new customer acquisition, conversion rates, impulse buying push, promo profitability, ..

.. drive repeated, larger and more profitable customers' transactions


Loyalty Management

Objective of loyalty management enhancements: to increase customer retention at lower costs

Loyalty management is first and foremost a strategic business issue across the whole organisation

Fragmented legacy systems highly limiting – Business and operational agility– Cost of ownership – Data integrity – typically due to a lack of integration and real-time

synchronization– Customer responsiveness & personalization


Consumer Intelligence IT Implications

Enhance customer intelligence - Optimized customer-profiling analysis and customer segmentation based on profitability are key

Deliver instant marketing and sales intelligence capabilities -providing a single view of customers across multiple touch points – Always unlock advanced analytics to track online consumers

behaviours

Develop targeted promotional campaigns and personalized customer services.– Empowering the customer experience with self-service options – The need for real-time is real in retail

Interactive marketing capabilities require retail IT integration– Cross-channel promo management apps +– Consumer intelligence/analytics +– CRM/loyalty apps +– POS data +– Inventory +– Merchandising & sourcing systems


Eleven Years From Now….

In 2020


Our Retail IT Vision: 5-10 Years Out

Universal Item-level RFID w/ store sensor networks

NFC-enabled consumer mobile phone payment

Transparent analytics

Network Video / Advanced Video Analytics

Device-level centralized system & platform management

Intelligent Self-Service

Customer-specific pricing

3D visualization

Transparent mobile integration

Fully automated Self-service stores


ConclusionsRetail success in challenging times will not result solely from pricing & economies of scale…– Shopping Experience– Predictive Action– Sense and respond– Business & IT alignment

Retail IT leadership will be seen thru key actions and investments:– Advanced selling technologies– Demand & Consumer Intelligence– Merchant thinking– Micro Promo Planning

Ensure integration of store systems technology with customer marketing, inventory, and merchandising systems

Never Forget– Retail Data Quality & Security– Retail Integration Platforms / Retail SOA– Inventory Optimization– Cross-Channel Transparency– Retailer-centric usability, workflow-centric, role-based


Reminder: Join us at Upcoming Events

Global Retail Predictions 2009, Webcast, Jan 6

Jan 11-14 2009 - NRF 2009, NYC, US

Jan 20-22 2009 – GDS/GRI Retail CIO Summit, Bremen, Germany (http://www.ngrsummit.com/)

Jan 27 2009 - IDC NE Directions, Copenhagen, Denmark, Retail Workshop

Feb 18 2009 – GRI/IDC Mobilty & RFID 2009, Lisbon, Portugal

March 9, 2009 – GRI/IDC Global Retail Summit (Milan, Italy)

GRI/IDC Retail Roadshow CEE, 6 Events– February-September 2009: Bucharest (Romania), Sofia

(Bulgaria), Budapest (Hungary), Athens (Greece), Belgrade (Serbia), Warsaw (Poland)

http://www.ngrsummit.com/


About Us

Global Retail Insights, a worldwide advisory services and market research firm, assists retail industry executives, and vendors serving retailers, in achieving competitive differentiation and market success thru business-driven technology investments. Our fact-based research and merchant-centric strategies enable better offerings from vendors and more effective technology investments by retailers.


Global Retail Insights Analyst Leadership Team

Global Retail Insights analysts bring broad and deep industry knowledge, proven merchant experience, and strategic thought leadership to their goal of delivering fact- based guidance to retailer and industry vendor organizations wanting to optimize their IT investments and market performance.

Parker, Robert

Group Vice President, Industry Insights

Ortis, Ivano

EMEA Research Director, Global Retail Insights

Hand, Leslie

Research Director, Global Retail Insights

Ellis, Simon D.

Practice Director, Global Retail Insights

Gilliam, Ashley E.

Director of Consulting

Witty, Mike

Vice President, Consulting, Industry Insights

http://www.globalretail-insights.com/GRI/getdoc.jsp?containerId=PRF003293













Key Research Pillars

Fact-based Un-biased

ICT/Retail Industryexperience

Retailers-centric

http://www.globalretail-insights.com/HII/services/advisoryservices.jsp#payers

http://www.globalretail-insights.com/HII/services/advisoryservices.jsp#payers


Why is GRI different?

History, Credibility and Global Infrastructure of IDC. GRI represents the new retail-focused practice underpinned by the depth and breadth of IDC’s 40 years of market research experience. IDC today conducts deep, worldwide and enterprise-wide technology research that GRI’s own team of analysts can leverage and verticalize for retailers and retail vendors.

Merchant-centric thought leadership. If changing the game in retail operations were entirely a technology problem – it would have been solved long ago. Our goal is to orient our strategic advice on retail technology and how best it can become an empowerment platform for skeptical merchants. We’ll assess new planning systems, new forecasting systems, and new customer touch points from a line-of-business perspective and outline proven best practices that show how to properly blend technology and process change.

Structured consulting and custom research. While our worldwide market research will include details on industry spending patterns and retailer priorities, GRI will have the ability to specifically orient the quantitative data to meet vendor needs and to conduct best practice and strategic planning sessions oriented to specific retailers and specific segments.


Global Retail Insights Client Engagement Model

Key Engagement Milestones• Orientation Presentation• Follow on call/meeting:Discuss detailed review of client’s initiatives and business goalsQuarterly/Monthly Teleconferences:

With key contacts to ensure expectations are being met• Ongoing: Unlimited Inquiry• Year-end: Performance Scorecard

Ongoing Decision SupportProactive Interaction

Monthly Activity Update

Review client initiatives & objectives for services

Q2: QuarterlyReview

Q3: QuarterlyReview

Q4:QuarterlyReview

Kickoff Meeting/Orientation

Year-endperformance

scorecard

Renewal

Q2: QuarterlyCommunication

event

Q3: QuarterlyCommunication

event

Q2: Quarterlycommunication

event


GRI Research Focus

Expanded use of demand & consumer intelligence in retail

On the road to next generation shopping– How will consumers expectations evolve going forward? – Which technologies will positively transform the shopping experience?– What’s next for eCommerce and eMarketing strategies?

Changing interaction between traditional merchants and advanced software applications

Orchestrating global supply chain visibility

Cross-channel retail transparency

Critical role of enterprise integration technologies like Service-Oriented Architecture in implementing new retail application workflows

Rapidly changing retail market landscape in emerging countries, including China and India as well as emerging regions like Latin America and Central and Eastern Europe

The call for real-time retailing – the expanding role of network service providers, network equipment manufactures, mobile solutions providers


GRI Custom Research Approach

The GRI custom research approach combines primary research with industry and business process insight.

Retail Industry & Business Process Insight

Prim

ary Re

search

Strategic Benchmarking for Lines of

Business

IT Benchmarking for IT

Management

Market Assessments for Sales and

Marketing

Strategy Development for Lines of

Business


Engagement Models

GRI Custom Research Strategy

Market SizingGTM

ServicesSales & Marketing

Enablement

Business & ITAlignment

ITBenchmarking

Vend

or F

ocus

Reta

iler

Focu

s

StrategicBenchmarking

As part of our custom research offering, GRI works with clients to deliver a range of strategic advisory services.

StrategicPlanning

Strategic

Planning


Retail Store, Channel and Consumer Strategies

To support business and technology decisions that directly impact retail consumers, the Global Retail Insights’ Retail Store, Channel, and Consumer Strategies service tracks and analyzes important trends in store systems, e-commerce capabilities, and consumer adoption of these technologies.

In the scope of this service are critical technologies such as POS hardware and software, labor management, self-service systems, guided selling, mobile store technologies, advanced consumer payment modes, and e-commerce platforms.

The service provides specific insight into shopper’s reaction and adoption to the new spectrum of consumer selling technologies being deployed in retail.

Lead Analyst: Ivano Ortis


GRI Research Services (cont..)

Retail Supply Chain, Demand Planning, and Merchandising Strategy (Lead Analyst: Leslie Hand)– critical IT and process components of the retail supply chain,

including global sourcing, product lifecycle management for private label merchandise, logistics systems (warehouse and transportation) as well as RFID, replenishment and allocation planning. Also reviewed are merchandising capabilities such as assortment planning, category management, pricing and promotion, markdown planning, and perishables management. Specific coverage is given to demand intelligence technology and its role in providing analytics and predictive insight that will drive all elements of retail planning.

Retail IT Infrastructure Strategy (Lead Analyst: Bob Parker)– provides market analysis and intelligence on retailer actions

toward architectural and platform-oriented technology and process investments.


European IT Opportunity: Retail and Wholesale

Global Retail Insights' European IT Opportunity: Retail and Wholesale advisory service provides insights into the European distribution sector, with a specific focus on retail and wholesale markets and ICT strategies applied to improve retail supply chain and demand planning efficiencies, store operations management, cross-channel sales, and business performance management at a corporate level.

Our analysis includes estimates on ICT spending in the sector based on primary end-user research, competitive assessments of ICT vendorstargeting retail and wholesale, and continuous monitoring of the marketaimed at identifying key industry business trends and ICT investment directions.

Lead Analyst: Ivano Ortis


Project Spotlight: Retail and Online Commerce Strategy Planning


Sample Output: Consumers & Online Channels

Concernant vos achats non alimentaires par rapport à l’année dernière est ce que…

0% 20% 40% 60% 80% 100%

Vous comparez les prix entre ceux pratiquésdans les points de vente physique et ceux

pratiqués sur Internet

Vous tenez compte des engagements relatifs audéveloppement durable lorsque vous achetez

un produit

Vous êtes exigeant sur la qualité des produits

Vous comparez les prix entre les marques dansle magasin ou entre les enseignes

(% of respondents)Plus Autant Moins NSP

0% 10% 20% 30% 40% 50% 60% 70% 80%

NSP

Kiosque / cornerAutre (Préciser)

Ecrans

Courrierpersonnalisé

Site Webcommunautaire

Magazine oubrochure journalière/

Vendeur en magasin

Les informations enmagasins (

Prospectus dans laboite à lettre

Site de l'enseigne

Forum Internet

Comparateur de prixsur Internet

Site Internet de lamarque

(% of respondents)

Pour un achat de type non alimentaire pouvez vous m’indiquer parmi les propositions suivantes les sources d’information que vous utilisez pour vous renseigner sur un produit ou une marque ?

Source: Global Retail Insights France Consumer Survey,October 2008, 1000 respondents, Actual Results


Targets

Sample Output: Decision Map: Online Service

Online ServiceStrategy?

No

Yes

StrategicOption #4

StrategyScope?

Products Segments Countries

MarketApproach?

Organizational Plan

Political Plan

GTM Execution Plan

Option #1 – Status Quo

Option #2 – Targeted, Organic Investment

Option #3 – Aggressive Growth by Acquisition and/or Proactive Market Penetration

Option #4 – Divest &Partner

StrategicOption #1

StrategicOption #2

StrategicOption #3


Sample Output: Potential Online Service Economics

Different Retailer Business Models Create Varying eCommerce Infrastructure TCO Impacts


Project Spotlight: IT Benchmark

This IT benchmark study profiled 7 global firms, and quantified IT spend in 4 investment areas (new development, infrastructure, etc.) across 5 functional areas.

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

2.2%

2.4%

2.6%

2.8%

3.0%

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

(esti

mate)

Company A

Company B

Company D

Company E

Company F

Company G

Company H

Worldwide IT Spending 1997-2007: Total IT Spend as a % of Revenue

NOTE: All numbers have been modified to be illustrative



The IT investment areas defined for this study were New Application Development and Deployment (NADD), Infrastructure, Operations, and Sustenance.

2007 IT Spending by Investment Area

* New Application Development and Deployment

Co. A Co. B Co. C Co. D Co. E Co. F Co. G

12744

639

385

234

768

528

1,585

355

784

1,189

466

228

727

518371

305

703

411

808

546

1038

143

476

193

465422

113

$0

$500

$1,000

$1,500

($M

illio

ns)

NADD

Infrastructure

Operations

Sustain

*



22% 21% 21% 24% 23% 22% 21%

21%17% 15%

18% 20% 19% 21%

21%23% 25%

20% 20% 26% 19%

22%19% 22%

26% 24% 15% 26%

14%20% 17% 12% 13%

18%13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Co. A Co. B Co. C Co. D Co. E Co. F Co. G

% o

f Tot

al N

AD

D S

pend

Supply Chain Multichannel Merchandising Store Operations Back Office


New Application Development and Deployment was then broken down by functional area for each retailer.

2007 NADD* Spending by Functional Area

* New Application Development and Deployment



Project Spotlight: Harrods SAP ROI Analysis

1. An IDC-Global Retail Insights ROI Calculator’Spreadsheet (in MS Excel format) including:

– Principal benchmark values, value results, value reports, and other ROI key figures;

2. An IDC-Global Retail Insights Retail IT ROI Best Practice Report (8-16 pages in MS Word format) including:

- Executive summary,

- Challenges

- Implementation

- Business Benefits

- Lessons learned

- Future plans;

- Summary of financial results

Note: All data and descriptions on these slides have been modified to protect client confidentiality. For illustrative purposes only.


Project Spotlight: Quote-to-Cash Process Benchmark

CLIENTHigh-Tech PeersBusiness PartnersOther Mnfr

Best- in- Class

Very Easy

Very Difficult

Worst- in-Class

2 3 4

Little Effort

Significant Effort

2 3 4

2 3 4Overall Customer Experience

Usability

Effort Required

Estimate Lead Times Rating SummaryBest-in-Class Gap Negative

GapPositive Gap

-10 -5 0Rank 1 of 7

Lead Time Definition Match

Confidence Level in Lead Time

Method Used to Estimate Lead Times

Yes 69%No 31%

Not Reliable

Extremely Reliable

2 3 4Reliability of Lead Times

Confident 47%

Do not pay attention 6%

Uncertain 47%

Online 69%Email/ Phone 31%

59


The client’s relative performance for the Estimate Lead Times step in the Quote-to-Cash process is summarized below.


Sample Output: Best-in-Class ComparisonEstimate Lead Times is the number one area for improvement with a Cumulative Best-in-Class Gap* Value of -10.25 while Configure Product is the area where the client excels compared to peers.

60

Cumulative Best-in-Class Gap by Interaction

3.80

(0.00)

(2.20)

(2.80)

(4.32)

(7.40)

(10.25)

(12.00) (10.00) (8.00) (6.00) (4.00) (2.00) 0.00 2.00 4.00 6.00

Configure Product

Check Order Status

Check Pricing

Place Order

Track Shipment

Change/ Cancel Order

Estimate Lead Times

Inte

ract

ion

Cumulative Best-in-Class Gap Value



Questions?

Ivano OrtisEMEA Research [email protected]+39 02 28457344

ivano ortis emea research director december 4, 2008 · 2008-12-05 · discussion objectives about...

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