© 2014 IBM Corporation1
Global Retailers Wishlist 2014/2015
CAMS: Cloud – Analytics – Mobile - Security
© 2014 IBM Corporation2
© 2014 IBM Corporation3
IBM is positioned towards the next generation of markets and opportunities and is executing a bold agenda to reshape the company
Savings and Divestitures
$6B 2006-2010 savings: Globally integrating—shared
services and end-to-end process transformation
$8B 2010 – 2015 savings: Making things smarter—end-
to-end process transformation and integrated operations
$1.5B in IT savings since 2005 through consolidation
80% energy cost savings and 85% floor space
reduction
Agreement to sell much of Intel-based x86 server business
to Lenovo
Investments and Acquisitions
$7B on 15 cloud acquisitions, including $2B for
Softlayer
$1B for BlueMix
$1.2B expansion to 40 cloud data centers
$1B in Watson Group and 2,000 professionals
$17B of gross spend for Big Data and Analytics
acquisitions, including more than 30 companies
$24B invested to date to build IBM capabilities in
Big Data and Analytics; $7B of organic investment
$6B yearly research / development investments
Source: IBM 2013 annual reporti
© 2014 IBM Corporation4
© 2014 IBM Corporation5
Overview
1. What´s cooking and why?
2. The Disruptors
3. Global Retailers Wishlist 2014/15
4. CAMS - The New Winning Theme
(Cloud / Analytics / Mobile / Social)
© 2014 IBM Corporation6© Copyright IBM Corporation 2013
What´s cooking and why?
© 2014 IBM Corporation7
We are facing Web 3.0
© 2014 IBM Corporation8
The Internet of Things Landscape 2014 – Many New Players
© 2014 IBM Corporation9
Cognitive Systems: a new era of computing
Tabulating Systems Era
Programmable Systems Era
CognitiveSystems Era
1950s – 1960s
Sales Reporting
1970s – 1980s
Scanning point of sale
PO Management
Perpetual inventory
Financial control
2010s
Customer relationships
Gather massive data
Advanced analytics for
marketing, merchandising,
personalized shopping
Social
Mobile
© 2014 IBM Corporation10
Consumers posted
about a retailer in 201443%
Consumers would
end their relationship
with a retailer if not
given personalized
content
54%
Mobile will influence
store sales by 2016$650B
Sales missed
annually because
of out-of-stocks
$100B
53%Retailers have systems
that don’t adequately
support cross-channel
activity on the buying
side
36%
4xMore spend from
customers who shop
multiple channels
Digital content
created by 2015
8 Zetabytes Shoppers would share
their location with a
retailer
Challenges and trends in Retail
© 2014 IBM Corporation11
The Old Four P’s The New Four P’s
• Product-centered view of the world• Mass produced products • Established distribution channels• One-Size Fits All mass advertising• Push based communication
• Customer-centered view of the world• Products tailored to customer preferences• Trusted product information • Personalized, targeted offers• Listening in a two-way dialogue
Personalization
Presence
Persuasion
Permission
Product
Price
Place
Promotion
Merchandising Marketing
What´s the new thing?
© 2014 IBM Corporation12
Growing Online &
Omni-Channel
Capabilities
Engaging with the
Empowered
Consumer
Creating Digital
Real Estate
Re-engineering
Economics for
Omni-channel
Driving Continuous Change
Retailers Responses and Challenges
New Business
Models
Setting the Strategy Executing for Profit Three Cornerstones of Digital Transformation
Individual Centred
EconomyLittle BoxesDisrupters
Everywhere
Grocery to Go
goes Mainstream
The 5 Big Trends
Made in the Labs
driven by Big Data
Leadership & Culture Innovation & Agility
Transformation RoadmapOrganisation
Freedom in a Framework
Industry Trends and Key Retail Responses
© 2014 IBM Corporation13© Copyright IBM Corporation 2013
The Disruptors
© 2014 IBM Corporation14
The Disruptors cause the pressure…and consumers seems to “like”
The New Disruptors in Grocery
© 2014 IBM Corporation15
Locker shipping
option
Integration in
the eCommerce
shopping path
The Next Growth Area in e commerce?
© 2014 IBM Corporation16
InPost Locker Infrastructure in the
UK ready for market testing
512 lockers placed in cities most
usable for key clients
Courier contracts established and
ready for work
A staff of 28 UK based InPost
employees ready to support the
market tests
There are over 500 lockers deployed and ready for use in the UK as of Nov. 2013
© 2014 IBM Corporation17© Copyright IBM Corporation 2013
Global Retailers Wishlist 2014/15
© 2014 IBM Corporation18
Supply
Chain
47%
Data
Analytics
56%
Regulatory
compliance
54%
Human
Resources
52%
Omni Channel /
Digital Strategy
54%
Data
security
and
privacy
47%
Growth and
International
expansion
46%CSR
40%
Global Wishlist according to KPMG Report “Top of mind” Survey
Percentage of companies rating as ”very” or ”critically” important this year
www.kpmg.com/global/en/...top-of-mind-survey-2014
Health &
wellness
46%
© 2014 IBM Corporation19
1
2
3
6
4
5
7
8
9
Retail
Source: Question E8–What are the most important external forces that will impact the enterprise over the next 3 to 5 years?; Global n=4,009; Retail n=340
1
2
3
6
4
5
7
8
9
Global
Market factors
Technology factors
Macro-economic factors
Regulatory concerns
People skills
Socio-economic factors
Globalization
Environmental issues
Geopolitical factors
Market factors
Technology factors
Socio-economic factors
Macro-economic factors
People skills
Regulatory concerns
Geopolitical factors
Globalization
Environmental issues
External forces impacting the enterprise (3–5 Years)
CxOs in Retail agree that Market and Technology Factors affect their business the most.
© 2014 IBM Corporation20© Copyright IBM Corporation 2013
CAMS Cloud – Analytics - Mobile - Security
© 2014 IBM Corporation21
Retail simplified
© 2014 IBM Corporation22
Combinations of Social, Mobile, Analytics and Cloud capabilities drive solutions that are relevant in a Retail industry Context.
So
cia
lM
ob
ile
Clo
ud
An
aly
tic
s
© 2014 IBM Corporation23
The Merchant MindsetCreating the WOW in store feel
Develop Relationships with Your CustomersThe era of personalization versus paper ads for all
The New Health and WellnessIntegrating Doctors, Insurance Companies and the Grocery Store
Product is the HeroCreating differentiation with product
The New Winning Formula for Retailing?
23
Play where She wants to PlayBuild world class omnichannel
From Gut Based to Fact Based decision making
© 2014 IBM Corporation24
The new situation causes need for new roots
Cross-Platform
Development
and Testing
GPS &
Geo-fencingDirect Update
Push
Notifications
Rapid
backend
integration
Offline support
& Data sync
Security
Apps
30%
70%
Remote
Disable
App
distribution
Authentication
Single Signon
App
version
management
Logging &
Problem
determination
Analytics
© 2014 IBM Corporation25
Excel is not
the answer
Humans
struggle to
handle all the
data
“Rear View
Mirror” versus
“Looking
Forward”
Pricing &
Promotion
Optimisation
Supply Chain
OptimisationWorking
Capital
Optimisation
From “Gut” Based to “Fact” Based Decision Making
© 2014 IBM Corporation26
Summary
1. Retail excellence = IT excellence
2. Old and new ” 4 P ” – you still need booth
3. CAMS - The New Winning Theme (Cloud / Analytics / Mobile / Social)
4. Decide where you want to compete in the market
5. Go from ”Gut” based to ”Fact” based decision making
© 2014 IBM Corporation27
IBM Business Connect Sthlm / Oct 7
E-tail Conference Cphg / Oct 14-15
Analytics Summit Las Vegas / Oct 26-30
NRF Big Show NY/Jan 11-14 (2015)
D Congress Gbg / Mar 12 (2015)
More Inspiration….
© 2014 IBM Corporation28
Stay in touch
Skype: eliassonbengt
Twitter: bengt eliasson@modernhandel
© 2014 IBM Corporation2929
Importance. The retail Industry is a $4.5B business for IBM and was IBM’s second-fastest
growing industry in 2013. IBM has invested over $3B in acquiring market-leading software
solutions for omni-channel retail sales, marketing, and supply chain, which we call ‘Smarter
Commerce.’ We have also increased our focus on retail in the growth markets by establishing a
Retail Center of Competency (consulting) in Asia and continuing our investments in IBM
research as well as IBM’s Institute for Business Value.
Experience and Assets. IBM has: over 5,000 retail industry practitioners in more than 165
countries worldwide (including over 1000 Retail Industry consultants with an average of more
than 10 years in retail). IBM has Retail Innovation Centers in US, UK, France, China, Japan,
India and Brazil as well as solution assets and accelerators (e.g., IBM’s Retail Industry
FrameworkTM , ROI for SmarterRetail, etc.). IBM continues it's long history of retail industry
innovation (which included innovations that have transformed the industry, such as invention the
bar code, magnetic stripe and electronic POS).
Smarter Retail. IBM delivers transformation, scale, quantifiable business outcomes (e.g., Elie
Tahari: 30% reduction in supply chain and logistics costs), improved KPIs (e.g., Orvis:
Increased Revenue from product recommendations by 70%) and critical infrastructure
operations challenges (e.g., Macys: Achieved SLAs with 10/10 cust sat rating for past 8 years).
Learnings and experience from working with marquee retailers, such as: Walmart, JC Penney,
Saks, Tesco, Macy’s, Best Buy, Marks & Spencer, Carrefour, Loblaws, Staples, Kroger, Lowe’s,
Boots, Safeway, Walgreens, HSN, Shop Direct/Littlewoods, El Corte Ingles , among others.
IBM COMMITMENT TO RETAIL AND E-TAIL
© 2014 IBM Corporation30
The 39 Omnichannel Capabilities
Pricing is consistent between online and in-store
Assortment is consistent between online and in-store
The retailer tailors online pricing independently of in-store pricing
Loyalty program benefits are available online and in-store
Online coupons are redeemable in store and In-store coupons are redeemable online
I am able to track my customer service issues across channels (whether in-store or online)
I am able to access my purchase history (whether items were bought in-store or online)
I can track order/shipment/delivery status for my online purchases
Has store associates with mobile devices able to access my purchase history
Has store associates with mobile devices able to access inventory and find elsewhere an item that is out-of-stock in the store
I am able with my own mobile device to access inventory and find elsewhere an item that is out-of-stock in the store
Has store associates with mobile devices able to access my online browsing history
Able to use a retailer-owned mobile device while shopping to scan items for purchase
Able to use my own mobile device while shopping to scan items for purchase
Offers me personalized promotions via mobile/text while in the store
Offers me personalized promotions via mobile/text while near but not in the store
Provides me with regularly scheduled personalized promotions via text
Provides me with regularly scheduled personalized promotions via email
Offers on-demand personalized coupons/promotions in store (for example, I log into a kiosk and get personalized coupons)
Offers on-demand personalized coupons/promotions online (for example, I log into the retailer’s site and get personalized coupons for use in-store or online)
Offers on-demand personalized new product recommendations in store (for example, I log into a kiosk and get recommendations)
Offers on-demand personalized new product recommendations online or mobile (for example, I log into the retailer’s site and get personalized new product
recommendations)
Has store associates who can offer personalized coupons/promotions based on your purchase history/personal preferences
Has store associates who can offer personalized new product recommendations based on your purchase history/personal preferences
Provides alternate “Pick up” locations (not inside the retailer’s traditional store) to allow you to pick up online purchased items
When faced with an out-of-stock item, offers the ability to locate the item at an in-stock location and have it shipped to my home free the next day
Offers in-store pickup of online/mobile purchases
Offers in-store return of online/mobile purchases
Offers the ability to pay via my mobile device in store to pay for items
Offers the ability to shop for items via social network sites
Offers free Wi-Fi in store
Offers apparel items I have previously browsed online to be ready for me in a dressing room at the store (only apparel)
Offers innovative “smart shelves” that interact with you (via your mobile device or loyalty card) to provide additional product information
Offers innovative “smart shelves” that interact with you (via your mobile device or loyalty card) to provide personalized offers and communications
Offers innovative “smart dressing rooms” that interact with you via display screens to provide additional product information (only apparel)
Offers innovative “smart dressing rooms” that interact with you via display screens to provide personalized offers and commun ications (only apparel)
Invites some shoppers to a premium tier of service with additional benefits (faster shipping, free services normally paid for, privileges not available to others) based on
high customer value or spending purchase history
Offers a subscription (fee) based, premium membership with exclusive offers such as faster shipping, free services normally paid for, privileges not available to others