0 Copyright 2015 FUJITSU Human Centric Innovation in Action Fujitsu Forum 2015 18th – 19th November
1 Copyright 2015 FUJITSU
Omni-Channel Reality Check
Richard Clarke Vice President, Global Retail
Nick Mayes Principal Analyst, Pierre Audoin Consultants (PAC)
2 Copyright 2015 FUJITSU
Agenda
Key Messages
Fujitsu in Global Retail
Retail Disruptors and the Connected Store
Omni-Channel Research Findings – PAC
Q&A
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Key Messages
Markets developing at different rates and no textbook solution roadmap
Physical store is not going away but will be an investment focus
Not just a front office play, plenty of heavy lifting in the back office to deliver results
5 Copyright 2015 FUJITSU
Fujitsu in Retail – at a glance
Revenue
$1.7bn
Solutions
Retail R&D/Innovation
>$45m
Years
>35
Global Retail Team
8,000
Countries
52 Analytics
Omni-channel Self Service
ICT Services
Customers
>500
PoS
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Connected Retail – our Mission
Globally Delivered
Retail Innovation
Connected Enterprise
STRATEGY CAPABILITY OUTCOME
Retail products, software, and services
Fujitsu IP and Japanese technology
Omni-channel, self-service, mobile
30+ years innovating in retail
Infrastructure, applications, networks
Integrated store solutions
Connecting front and back office
Multi-vendor management
Global solutions, local features
Global expertise, local delivery
Global Solution and Delivery Centers DIFFERENTIATED CUSTOMER EXPERIENCE
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Who we work with globally
EMEA Japan & Asia Americas
Oceania
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Case Studies
Large Fashion Retailer
End to end retail IT services in 800 UK and some 300 global stores; Fujitsu provides store IT support and maintenance including PoS application; service desk, desktop and payments
Fujitsu developed Total Managed Store – seamless and repeatable catalogue-based solutions and services stack
RFID solution – shipping, packaging, inventory and PoS in 150 stores in Japan
Front office transformation – 1700 stores in France and 10 other countries; self checkout, hybrid self service, scan and pay
Omni-channel retailing – 1450 stores in US/Canada; pos, mobile and omni-channel enablement;
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Retail industry disruptors
1. Physical and on line stores will merge
2. Smartphone will be the “shop in your hand”
3. Retailers will sell services and ship products
4. Personalisation will be the new normal
5. Retail will be global
6. Cost models will change
7. IT will no longer own IT
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Connected Store…the next big thing
‘Connected Store’ will be the next big thing in retail – it is about
connecting up online and offline worlds to redefine the ‘store’,
transform the shopping experience and improve retail operations.
Online Mobile Store
Connected Store Tomorrow Retailing Today
Transactional, in and out, experience
Easy Ordering (click ‘n’ collect) growing but still limited
Limited connection between ‘online’ and ‘offline’ shopping
o Online = speed, availability and personalisation on line
o Offline = anonymous/functional transaction with limited availability
Retailer, not customer, in control – stock, space, payment, fulfilment
Fixed, not mobile, shopping processes and environment
In store experience variable (queuing, customer recognition, service levels)
Omni channel transformation
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Connected Store – what does it mean for retailers ?
Customer Recognition Everywhere
(history, loyalty, wish lists)
Personalisation (timely and relevant
recommendations, offers, priority services
Virtual Service Agents
‘One Touch’ Pay & Go
Integrated Selling Operation
(online/mobile/store processes, data, systems and reporting)
Customer-driven layout, merchandising
and service
Easy Order Everywhere
(order on line/ pick up in store)
Digitalised Physical Stores
(navigation product display, informed staff, smart fitting rooms new services e.g. 3D
printing
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Connected Store – what is it like for customers?
Retailing Without Walls -“shopping trip can start on your mobile and continue in the physical store”
Personalised - “stores can
identify customers, customers receive a more personal service”
Experience - “stores are informative, inspiring and fun”
Customer in Control - “stock, payment, service – the customer decides”
Mobile - “mobile devices make the experience convenient, fast
and personal”
Consistent - “it’s all joined up – online, mobile and stores”
© PAC
Survey of Retail CxOs in Europe
14 2015
200 survey
respondents in Western
Europe
70%
business
respondents
30% IT
respondents
FR
Survey conducted in
May 2015
All respondents had
over 500 employees
Fashion 19%
DE UK
> 20% 20% 20%
10%
Nordic E
S
J F M A M 10% 10% 10%
IT BE
N
Electronics 18% Furniture 15%
Food 14%
Household 8%
7%
Pharmacy 5%
Office
Other 14%
© PAC
The European Picture
2015 15
UK - Only 23% believe physical store will
remain as number one channel
- 70% see NPS as key measure of
omnichannel success
Nordics - 66% already sell through mobile
channels
- 75% have store-to-online integration in
place
Spain - 50% have omnichannel strategy driven
by sales organization
- 90% have click-and-collect in place at
physical stores
Italy - Less than 25% see mobile as
important channel
- 40% have omnichannel strategy
driven by CEO
France - 95% say customer satisfaction is main
driver for omnichannel
- Over 50% plan omnichannel IT
investment in next 2-5 years.
Benelux - 90% believe branch is of high strategic importance - 100% see increased customer retention as key measure of omnichannel success
Germany - 85% believe physical branch will
become more important
- 73% see long-term strategy planning
as major barrier to omnichannel
© PAC
How do European Retailers Sell Today?
16 2015
Physical
Branch Online/W
eb Shop Mobile Catalogue Social
Media
87% 82%
45% 38%
34%
Q. Which of the following channels does your business currently sell through?
© PAC
Physical
Branch
Future Channel Evolution
Online/W
eb Shop
Mobile
Catalogue
Social Media
Less
Important
Stays the
Same
More
Important
73% 20% 4%
69% 26% 4%
50%
13%
27%
33% 12%
52% 21%
46% 15%
17
Q. Which channels will become more or less strategically important in the next 5 years?
© PAC
Online and Store Integration on the Rise
MC template 18 2015
78% Yes
22%
No
67%
Yes
34%
No
Online
Store
Store
Online
Q. Has your company linked or does it plan to link the following sales channels in the next 2 years?
© PAC
The Store of the Future
19 2015
Q. Do you plan to use your physical stores for the following activities in the next 2 years?
As a pick-up point
for goods ordered
online
As a place for the
exchange/return of
goods ordered online
Act as showroom
for goods that are
available online
As a place to pay for
online purchases
For delivery of
goods ordered
online
Already doing so Planned
33
%
46
% 31
%
42
%
41
%
38
%
41
%
33
%
41
%
30
%
© PAC
Omnichannel Drivers
20 2015
Customers are
demanding it
85%
Improve
customer
satisfaction
89%
To drive savings
and operational
efficiency
70%
Our competitors
are doing it
49%
Q. What are the primary drivers behind your omnichannel investments?
© PAC
Measuring Omni-Channel Success
21 2015
86%
Increased
Customer
Retention
Q. How do you measure the success of your omni-channel strategy?
Increased
New
Customer
Acquisition
Increase in
Net Promoter
Score
Reduction in
Customer
Effort Increase in
Brand Reach
84%
66%
73% 67%
© PAC
The Key Challenges of Omnichannel
22 2015
Major Challenge
Clear Challenge
Developing a long-term channel integration strategy
Making changes to the organizational structure
Integration of payment procsses across channels
Understanding client activity across different
channels
Real-time access to POS information
Uniform cashless payment methods
A single customer retention system across channels
Ability to support mobile payments
Cross-channel inventory management
Re-alignment of existing ERP systems
Low/No Challenge
Flexibility of supply chain for returns management
Management of external and internal data
Uniform price system across all channels
Uniform customer services (loyalty, basket etc)
Q. What do you see as the biggest challenges for your omnichannel strategy?
© PAC
Omnichannel Investment Priorities (1)
23 2015
In Next 2
Years In Next 2-5 Years
Yes Cross-Channel
Integration
Solutions
Q. In which areas do you plan to invest as part of your omnichannel strategy?
Webshop
Solutions
Mobile Shopping
Apps for
Smartphones/
Tablets
Customer
Relationship
Management
Data Analytics
& Big Data
In-Memory
Solutions for
Big Data
Online Payment
Solutions
In Next 2
Years In Next 2-5 Years
Yes
In Next 2
Years In Next 2-5 Years
Yes
In Next 2
Years In Next 2-5 Years
Yes
In Next 2
Years In Next 2-5 Years
Yes
In Next 2
Years In Next 2-5 Years
Yes
In Next 2
Years In Next 2-5 Years
Yes
22%
38%
19%
67%
11%
10%
43%
18%
13%
54%
19%
14%
27%
26%
29%
29%
25%
29%
62%
12%
7%
Mobile Payment
Systems In Next 2
Years In Next 2-5 Years
Yes 35%
24%
13%
© PAC
Omnichannel Investment Priorities (2)
24 2015
In Next 2
Years In Next 2-5 Years
Yes Tablet-Based
Payment
Terminals
Q. In which areas do you plan to invest as part of your omnichannel strategy?
Management/M
arketing Tools
Self-Service
Branch
Technology
Branch
Infrastructure
Solutions
Clienteling
Solutions In Next 2
Years In Next 2-5 Years
Yes
In Next 2
Years In Next 2-5 Years
Yes
In Next 2
Years In Next 2-5 Years
Yes
In Next 2
Years In Next 2-5 Years
Yes
32%
23%
17%
33%
17%
20%
20%
19%
9%
28%
18%
15%
12%
18%
17%
© PAC
Are Retailers Flying Solo with Omnichannel?
25 2015
Q. Do you need assistance from external providers to implement your omnichannel strategy?
No! Yes!
38% 26%
Q. Do you need assistance from external providers to implement & integrate omnichannel solutions?
57% 17%
No! Yes!
© PAC
Contact
Founded in 1976, Pierre Audoin Consultants (PAC) is part of CXP Group, the leading independent European
research and consulting firm for the software, IT services and digital transformation industry.
CXP Group offers its customers comprehensive support services for the evaluation, selection and optimization of
their software solutions and for the evaluation and selection of IT services providers, and accompanies them in
optimizing their sourcing and investment strategies. As such, CXP Group supports ICT decision makers in their
digital transformation journey.
Further, CXP Group assists software and IT services providers in optimizing their strategies and go-to-market
approaches with quantitative and qualitative analyses as well as consulting services. Public organizations and
institutions equally base the development of their IT policies on our reports.
Capitalizing on 40 years of experience, based in 8 countries (with 17 offices worldwide) and with 140 employees,
CXP Group provides its expertise every year to more than 1,500 ICT decision makers and the operational divisions
of large enterprises as well as mid-market companies and their providers. CXP Group consists of three branches:
Le CXP, BARC (Business Application Research Center) and Pierre Audoin Consultants (PAC).
For more information please visit: www.pac-online.com
PAC’s latest news: www.pac-online.com/blog
Follow us on Twitter: @PAC_Consultants
Nick Mayes
Principal Analyst
+44 (0)20 7553 3968
2015 Omnichannel Retail in Europe - Strategies, Challenges & Measuring Success
28 Copyright 2015 FUJITSU
Key Messages
Markets developing at different rates and no textbook solution roadmap
Physical store is not going away but will be an investment focus
Not just a front office play, plenty of heavy lifting in the back office to deliver results
29 Copyright 2015 FUJITSU
Omni-Channel Reality Check
Richard Clarke Vice President, Global Retail
Nick Mayes Principal Analyst, Pierre Audoin Consultants (PAC)