the consumer revolution - afsug · basket and affinity analysis or high performance customer...

THE CONSUMER REVOLUTION The Changing Shape of the Trading World

Paul McKane : Trade Industries

© 2011 SAP AG. All rights reserved. 2

The last 40 years were all about the Product…

Product

Drove the interaction

Processes

Were Supply Driven

Technology

Was a limitation

Volume

Assortments

Buyers drove margin

Separated Sales Channels

Complex system landscapes

Batch


The next 10-15 years will be all about the Customer…

Customer

Drives the interaction

Processes

Inverse 180°

Technology

Makes it possible

Personal preferences

Social networking

Personal targeted offers

Across all channels

Personal devices

Real time


The world is turning upside down …

The next generation of consumers

are not playing to traditional rules

They are networked, verbal and open

They expect immediate gratification

They expect fast, simple interactions

You need to engage on their terms

NOW GENERATION CONSUMER


Real-time Customer Driven Interactions

ESPRIT Migros

Customers recommend

customers Customers give direct

feedback

Customers collaborate

Amazon


© SAP

2007 /

Page

6

Precision Retailing One Multi/Cross Channel Shopping Experience

Smart Customer Shopping

Smart Phone scan products to add to shopping list

Initialize shopping lists from previous purchases

In store scan products an add to

shopping list

Targeted 1.1 Special

offers

Based on inventory availability

Loyalty profile and status

Customer lifestyle choices

Optimized Shopping Lists

Suggestions based on product affinities

Private label suggestion

Best rated products

Best sellers

Cross Sell / Up Sell

Associated products

Associated services

Buy 2 get 25% reduction

Similar product but with better features

Customer Product Rating &

Review

Encourage feedback from customers

Refine product selection


Analysts Comments Precision Retailing and the Mobilized Consumer

“Geared toward increasing transaction size and driving

purchases toward items of interest to the shopper, the solution presents the shopper with real-time suggestions and special offers. Behind the scenes the

insights driving this come from data about store inventory and local promotions, the consumer's CRM

profile and status, and the consumer's expressed lifestyle choices, e.g., preference for fair-trade products.

…. a compelling and informative picture of where the

frontier of the food retailer's interaction with the shopper stands today and where it is going...and going there in a hurry”.

Across the Pond and Around the Corner

Greg Girard 24.01.2011 kl 22:54 | IDC Retail Insights Community


What does real-time really mean in Retail?

What is Real Time in Retail?

Have you tried <Private

label> cookies? They are 10 cents cheaper and have

4 out of 5 stars from

shoppers in this store…

Have you tried <Private

label> cookies? They are 10 cents cheaper and have

4 out of 5 stars from

shoppers in this store…

Biscuits Coffee

If it’s not instant, it’s not relevant


Question for today…

Retailers typically keep their systems for 10-15 years

Does anyone here think that consumers will accept

non-real time and non-personalized interactions for the

next 10-15 years?

If not, what are you doing to prepare?


Real-Time Enterprise

Time

12 months

Strategic

Importance

Time to First Go Live

First Mover

Fast Follower

Low Risk Taker

18 months 30 months


What makes real time customer interactions (im)possible?

Demand

Forecasting

Financials

Merchandising

Warehouse

Management

Merchandise

Planning

CRM/Loyalty

Common Data Foundation

Eliminate cross reference tables

Data is Current

Eliminate batch processing

Accelerated Data Retrieval

Reduce interfaces to a minimum

A typical retail systems landscape has

many applications that have been

optimised individually and interfaced

together


What does this mean in practice for a CIO?

Any data that can contribute to

Consumer value must be

up to date and available in Real-Time

Think backwards from « RT-Day »

Master Data convergence is key

« Chain Thinking » from the customer

interaction back to the data

Eliminate all weak links that

prevent delivery of a personalised

response during the buying impulse time

Real time interaction = Real Time Data Personalisation = Relevance

Notion of Customer as well as Product

all the way through the chain

Ability to engage in bi-directional

exchange with Customers – why guess

what they want if they will tell you?


SAP is changing Retail

“ … Now is the time to talk about what SAP is going to do to synchronize these technologies with

demonstrable business, and eventually consumer, value. …” Joshua Greenbaum on the 6 February 2012

POS Data

Management

Unified

Demand

Forecast

Multi

Channel

Enhancements

SAP HANA

One consumer demand platform

For the first time have a consolidated portfolio for

insight across all points of contact with same

forecasts, same algorithms, same data !

Consuming applications are built on

in-memory technology

Enabling near real time scenarios.

Cross industry alignment as standard

Retail, Wholesale, CP and High Tech use the same

Demand Data Foundation

Planning

for Retail Replenish-

ment

Promotions

….

Price

Optimization Customer

Apps

Mobile

Apps

SAP ERP

Markdow n

Optimization

SAP Business Warehouse & SAP HANA

CAR


Multi Channel Analytics

Out of the box analytics of multi

channel sales transactions enables

retailers to get real time insights into

sales performance across channels,

basket and affinity analysis or high

performance customer segmentation. .

Harmonized Forecasting

Harmonization of existing best in

class retail science - Khimetrics

and SAF – enable new predictive

capabilities.

SAP BW powered by SAP HANA

Faster processing and deeper insight

supporting high volume, granularity

and fast availability of data.

Multi Channel Enhancements

360° view of the customer can be

reached capturing all sales

transactions across all channels and

any other available information about

your customers – e.g. Social Media..

POS Data Management

POS Data are still the most valuable

source of information for retailers.

Capturing and storing the POS data

on TLOG level is first step.

Cross Industry Approach

High synergies between Retail

requirements and Demand Signal

Management.

CAR Building Blocks – putting together… Vision


Conclusions

If it’s not instant and personal,

it’s not relevant

Real Time solutions

Standardised Data

Simplified interfaces

Built for Personalisation

the consumer revolution - afsug · basket and affinity analysis or high performance customer...

Documents