Omni-Channel Shopping - responding to the new customer journey

1 Copyright 2014 FUJITSU

Human Centric Innovation

Fujitsu Forum 2014

ICM Munich 19th – 20th November


Omni-Channel Shopping - responding to the new customer journey

Richard Clarke

Vice President, Global Retail

Senior Analyst, Pierre Audoin Consultants (PAC)

Dr Katrin Schleife


Agenda

Fujitsu in Retail – at a glance

Retailing Today

PAC – Omni-Channel Research Findings

Fujitsu’s Response

Key Messages


Fujitsu in Retail – at a glance

Revenue

$1.7bn

Solutions

Retail R&D/Innovation

>$45m

Years

>30

Global Retail

Team

8,000

Countries

52 Analytics

Omni-channel Self Service

ICT Services

Customers

>500

PoS


Who we work with globally

EMEA Japan & Asia Americas

Oceania

http://www.whitbread.co.uk/index.cfm

http://www.starbucks.com.tw/zh/home.asp

../../../../../../../../../

http://www.savers.com/Default.aspx

http://www.chicos.com/store/home.jsp

http://www.justgroup.com.au/asp/home.asp


Our Messages Today


1. “It’s shopping Jim but not as we know it!”

DemandGeneration

DemandGeneration

ChannelChoice

Plan & Navigate

Browse& Search

Service &Support

Shop &

Transact RemarketRemarket

Social Connection

On Line Shopping

Order/Fulfilment

Mobile Services

In Store Services Payment Choice

ClientelingLocation-based

Advertising


2. New PAC Omni-Channel Research Findings

“Having an omni-channel strategy is a priority but process and organisation are big constraints”

Retailer Survey June 2014


Finance

Merchandise

HR

CRM

Analytics

Loyalty

Order Management

Inventory

Payment Tax Product Info Delivery Social

Cloud Servicese-Commerce

platform

ON

LIN

EM

OB

ILE

STO

RES

Multi-channel Sales Enterprise Returns Orders Pickups Customer Details

Point of Service

Store Back Office Reports Data Maintenance Communications Returns Electronic Journal Pricing/Promo

Stores Management

Basket processing

Transaction Repository

Payments

Cross-Channel Services

Pricing

Promotions

FUJITSU Market Place

Customer Experience

BOMETRICS

DIGITAL MEDIA

WEARABLES

Mobile Solutions

Store PoS

Digital Solutions

SELs

BEACONS/WI-FI

PAYMENTS

KIOSKS

HO

ME

TV/IOT/M2M

TV Retailing

RETAILER

MANUFACTURER

User Data

Business Process Management

Business IntelligenceKey

Fujitsu Solutions Fujitsu Prototype Partner

Enterprise IT

Selling Platform

ICT

Serv

ices

Enterprise IT

3. Fujitsu’s New Omni-Channel Retail Ecosystem


Retailing Today


Retail is evolving fast …

Yesterday Today Tomorrow

Convenience Store

Superstore

Catalogue

Mail Order

Online

Mobile

Home Delivery

Click & Collect

Crowd Sourcing

1:1 Engagement My Services

Local Logistics Social Retailing


…and retailers are facing some key challenges

Channel Convergence

Competing with Amazon Mobile Personal Standard

Omni-

Channel


Omni-channel is the new paradigm…

Shopping across Channels

Order Management New Customer Services

…but it is not so clear how you deliver it!


Omni-Channel Research Findings

© PAC

PAC Omni-Channel Survey in Germany

● German retailers (50+ employees) – 99

decision-makers

● Food and non-food retailers

● Marketing, sales, e-commerce and general

management

● Only companies who already use at least

two sales channels (including at least one

digital channel) or for whom the significance

of the second sales channel will increase

● CATI (telephone) survey took place between

May and June 2014

2%13%

30%

15%

15%

24%

1

2 to 5

6 to 10

11 to 20

21 to 50

50 and more

Composition of sampleby number of outlets in Germany

© P

AC

20

14

Share

s in

perc

en

t o

f co

mp

an

ies,

n =

99

15 19.11.2014

© PAC

Focus Questions

● Sales channels – today and in the future?

● Business applications – used today, being built or investment planned?

● Channel convergence – how consistent are you?

● Omni-channel strategies – what are they and who is driving them forward?

● Strategic challenges and enablers – what is holding you back and pushing

you forward?

● What do you need your ICT providers to do?

16 19.11.2014

© PAC

Physical outlets are and will remain the

most important interface with the customer

● Physical outlet will

remain at the center

of the shopping

process

● Growing role as a

‘showroom’ or a place

for ‘shipping or

collecting’ goods

ordered online

17 19.11.2014

The physical store

will continue to be the

most important sales

channel for us in the

long run!

94% of outlet-based retailers surveyed

agree completely, mainly or partly.

(n = 96)

© PAC

Digital will grow but will need to connect

to the physical world

● Online AND offline

channels will both

grow in importance

● Retailers will have to

expand their digital

sales channels and

combine the strengths

of physical and digital

worlds

18 19.11.2014

The expansion of

digital sales channels has

top priority for our company

over the next two years!

85% of retailers surveyed agree fully,

largely or partly. (n = 99)

© PAC 19 19.11.2014

“Over the next two years the relevance of a consistent blending of the

different sales channels (omni-channel commerce) will…”

…increase

substantially

34% “... increase slightly”

44%

…increase

slightly

18%

…stay as high

…stay as low

3%

Omni-channel retailing is growing, fast

Shares in percent of companies surveyed (n = 99)

© PAC 20 19.11.2014

“In your company, who is the main driving force behind the

topic of omni-channel commerce?”

Boardroom and specifically marketing are

driving the omni-channel strategy

Top

management

50%

Marketing

30%

Sales

14%


IT

1%

Special

omni-channel

department

5%

© PAC 21 19.11.2014

Developing a long-term omni-channel strategy

is not easy

Process and

Organizational Change

(70%) Three key omni-channel

challenges

360° View of the

Customer

(74%)

Developing a long-term

omni-channel strategy

(76%)


© PAC 22 19.11.2014

75% of retailers will invest in omni-channel

IT in the next five years

“Is your company planning IT investments to meet the challenges

in the area of omni-channel?”

Yes, in the

next two

years

43%

Yes,

in two to five years

33% Shares in percent of companies surveyed (n = 99)

© PAC 23 19.11.2014

What are your investment plans?

● IT solutions supporting

the integration of sales

channels are the top

priority

● Over 20% of retailers

have (already) invested in

data analytics and CRM

solutions for them

these areas are currently

not on their investment

agenda

© PAC

Most retailers see big opportunities in Big Data

solutions

19.11.2014 24

“The use of big-data and in-memory technologies will

make cross-channel visibility of the customer much

easier for us”


62% 23% 15%

I agree I partly agree I don’t agree

© PAC

Summary of Research Findings

● Physical and digital channels are blending, fast

● Physical store will remain the ‘hub’ for retailers’ trading activities

● Omni-channel tops the investment agenda for German retailers

● CMO (more than IT) is driving channel integration

● Having an omni-channel strategy is critical – but it is not easy

● Process and organisation – the two key constraints

● Cloud and big data – the two key enablers for delivering an omni-channel

strategy

25 19.11.2014





Journey Mapping Central

Selling Engine

Insight Central

Process Integration

Store Experience

Retailing as a Service



• Fujitsu mapping • Customer and

colleague experience

• ‘Pain Points’ and ‘Opportunities’

• Focus on seamless order management

Journey Mapping

• FUJITSU Market Place

• Plug ‘n’ play integrated platform

• Omni-channel services

• Flexible/lower cost IT deployment

Central Selling Engine

• Predictive analytics platform

• Templated, real time, actionable reporting

• Focus on store performance

• Structured and unstructured

Insight Central

• Process tooling to join data, device, people to outcomes

• Focus on new services for omni-channel retailing

• Focus on omni-channel analytics and performance management

Process Integration

• Integrated customer experience in and outside the store

• PoS/SCO Devices

• Mobile for Retail • Store automation • Payments/Biometrics • In store digital

solutions

Store Experience

Retailing as a Service


1. Journey Mapping

Typical Journey

Customer Need

Current Experience

Solutions

New Experience

Plan Arrive & Navigate

Process

Impersonal

Helpful and Efficient

Browse & Select

Information

Rushed

Simple and Personalized

Purchase

Process

Inefficient

Fast, Secure Service

After Sales

Experience

Functional

Personal and supportive

Information

Manual

Simple, fast informed

1. Online (Click 'n' Collect)

2. Mobile Marketing

3. Social Media

1. Mobile App

2. Geo-location

3. Customer ID

4. Digital Media

1. Personaliza-tion (promos/ menu)

2. Social Clienteling

3. Smart Stock

4. Price Compa-rison

1. Self Service

2. Mobile PoS

3. BYOD

4. NFC-enabled payment

1. Customer analytics

2. Intelligent service management

3. Mobile marketing


2. Central Selling Engine – FUJITSU Market Place

Fujitsu's retail heritage, global reach and

enterprise integration services make us the ideal partner

for delivering this new selling platform

FUJITSU Market Place is a revolutionary new

Point of Service application that increases retailer

revenues by improving both customer service and

enterprise efficiency in an omni-channel world

Built on an innovative modular service-oriented

application architecture, it future-proofs retail IT

investment and reduces the complexity and cost

of technology deployment


FUJITSU Market Place – Click & Collect

Try fit in store and

decide to return one

online pair

Purchase shoe sizer

online

Measure and order

two pairs online for

store pickup

Find great pair of

ladies sandals on sale

in store

Order retrieved via

FJMP, logged as

picked up

Online purchase

recorded and

accessible to FJMP

Items ordered and

reserved / delivered

in store

Sale txn retrieved,

return logged,

new item added

& txn updated


FUJITSU Market Place – Save the Sale

Pickup shoes,

whilst waiting spot

great dress on offer

Go to local

department store

to find shoes for

party tonight

Out of stock in your

size, order for nearby

store pickup

Purchase both items in

the same transaction

Order retrieved via

FJMP, logged as

picked up

Items ordered and

reserved in nearby

store

New item added

& txn closed


3. Insight Central

‘Centralising’ data from multiple channels and structured/unstructured sources

MerchandiseSystem

Employee HR system

Interest Group feeds

Marketing analysis

Demographic systems

Social Media/Facebook/Twitter

Customer Profile Social Listeners

New Stores

New Brands

New Shoppers

Households

Logistics Traffic

WeatherStock Market

Transaction History

GPSBehavior sensors

Predictive analysis

Terabytes – Petabytes of Data

Variety

Volume

Velocity

Structured and Unstructured Data

Machine generated / Sensor Data


Customer Behaviour Analytics

Fujitsu’s ‘Line of Sight’ Analytics Solution

• Visualisation of shopper categories

• Camera-based sensors • Digitised data for

business analytics


4. Process Integration

Transaction Handling

Stock Handling

Customer Service

Performance Management

Fixed/Self Service/Scan & Pay/Mobile/Kiosk

Basket/Click ‘n’ Collect/Save the Sale/Kiosk Order

Payment – cash/card/NFC/tokenisation

Click ‘n’ Collect/Order Management/Pack ‘n’ Despatch

Stock Allocation/Shelf Replenishment

Returns Management

Transaction/Order Management

Customer Profile Usage/Management

In Store Digital Services – mobile marketing, DMN

Stock management – real-time, shelf, omni-channel

Customer management – clienteling, queuing, conversion

Trading management – weather, season, local pricing

Devices Data People


5. Store Experience

Today Tomorrow

Integrated customer experience


6. Retailing as a Service

Fujitsu Assets and Capabilities

• 5 Service Desks (29 languages) • 7 Global Delivery Centres • On Site Services ‘Hub’ (GPMO) • Field Engineering Services • System Integration Services

IT ApplicationServices

Store Managed Services

Managed Mobile

Store Solutions (products, applications)

Cloud Solutions

ERP RetailCompetence Centers

IT Products & Services Menu

• Provision of best of breed IT

• Products, infrastructure, cloud

• Deployment options

Pay per Use Model

• Shift from capex to opex

• IT aligns with revenue overt time

Outcome-Based Contracting

• Business-led SLAs

• Assets and risk shift to IT provider

= € x per store per month

IT Support SLAs

IT BlueprintHosting

IT Products & Services

Retail as a Service

from

Copyright 2009 Fujitsu America, Inc.4 Copyright 2009 Fujitsu America, Inc.4


Finance

Merchandise

HR

CRM

Analytics

Loyalty

Order Management

Inventory

Payment Tax Product Info Delivery Social

Cloud Servicese-Commerce

platform

ON

LIN

EM

OB

ILE

STO

RES

Multi-channel Sales Enterprise Returns Orders Pickups Customer Details

Point of Service

Store Back Office Reports Data Maintenance Communications Returns Electronic Journal Pricing/Promo

Stores Management

Basket processing

Transaction Repository

Payments

Cross-Channel Services

Pricing

Promotions

FUJITSU Market Place

Customer Experience

BOMETRICS

DIGITAL MEDIA

WEARABLES

Mobile Solutions

Store PoS

Digital Solutions

SELs

BEACONS/WI-FI

PAYMENTS

KIOSKS

HO

ME

TV/IOT/M2M

TV Retailing

RETAILER

MANUFACTURER

User Data

Business Process Management

Business IntelligenceKey

Fujitsu Solutions Fujitsu Prototype Partner

Enterprise IT

Selling Platform

ICT

Serv

ices

Enterprise IT

Fujitsu’s New Omni-Channel Retail Ecosystem


Key Messages

Omni-Channel - “It’s shopping Jim but not as we know it!”

“Omni-channel is a priority but process and organisation are key challenges” – PAC Retailer Research June 2014

Fujitsu’s New Omni-Channel Retail Ecosystem


Dr. Katrin Schleife

Senior Analyst – Retail & Cloud Computing

+49 (0)30 28 52 96 20

[email protected]

Richard Clarke

Vice President, Global Retail

+44 (0)7867829814

[email protected]

Thank you!


Omni-Channel Shopping - responding to the new customer journey

Technology

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