SAP FORUM İSTANBULReimagine Business for the Digital EconomySAP OMNI CHANNEL PERAKENDE ÇÖZÜMLERİKonuşmacı Adı : Kutalmiş DamarFirma Adı : SAP
Omni Channel Retailing
Kutalmis DamarAbdelrahman Khattab
RESPONDING TO THE NEXT WAVE OF RETAIL
DISRUPTION
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Power has clearly shifted from the owners of capita, those who produced goods and services, to those who consume the goods and services. suppler, product , brand, advertising to attract customers to the buying event-typically consummated in a physical store. retailer, store format-big box, buying/pricing power, coupled by vertical integration into private label offerings. Cave past 10-15 yrs, The consumer is king/queen. This is having a profound impact on how retailers develop strategies, organize themselves, align/motivate people the perspective of the customer
WHAT’S HAPPENING IN
YOUR INDUSTRY?
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This is such a dynamic industry that it’s hard to cover in a short period of time what is really going on, So let’s take a look at just 3 trends that you might find interesting.
SUPERAGGREGATORS
17 B$
150 B$
74 B$
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Super aggregators like AMAZON 74 b$/ Alibaba 150 b$ / eBAY 17 b$ All emerged from ecommerce world- Unlimited isle, unlimited assortment, unlimited reach.new catagories, cust experience. Not staying there…physical-world cup, Moving to different media-tv, set top box, gaming…want to “own the living room” not just the “shopping cart” Look at new amazon kindle ads-all about connecting with customer. Who is your competition-ask if its walmart at 500B or Amazon at 50B- unanimously say its amazon. Less about who they are today, more about who they can become tomorrow. Agile, fast, constantly innovating. Riding wave, creating new wave of retailing.
NEW BUSINESS MODELS, VALUE
CHAIN
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Header-…are emerging Stich fix and Trunk club – personalized shopping with generous return policy. Bring the trunk to the customer. Net a Porter-Non-traditional value chain integration-magazine and retail-: -online fashion presented in context of a fashion magazine Mon.marche.com -Rungis – worlds biggest food market, small city, 12-7 AM. Public cannot access-reserved for restaurants, wholesalers. . Value chain innovation-PG /Walmart mobile truck /– fast retail, follow the demand/opportunity. Giant CP company teaming uw with giant retailer Walmart to bring experience via mobile trucks to the customer-complete with QR codes for traceability. Must think through what new business opportunities are being created for you
WORD OF MOUTHIS NOW
EVERYWHERE
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So what’s going on with consumers? They are mobile, they are connected, and they are talking to each other Recite stat’s Do you know what they are saying, to whom, and is it relevant. Are they influencers, do they have followers who value their opinion? They spend money-us 600B growing to 1.4T 83% consumers are millennial in Asia If the statement “every experience either reinforces or dilutes your brand” think about the implications of thousands/millions of consumers learning about the experience of 1! Customer are digitally connected (1.75 billion smartphone users) Socially networked 1.11B people in Facebook;�6k/second tweets in twitter, 1k/second photos uploaded to Instagram 1.3k/second posts on Tumblr,80k/second videos watched on YouTube
NOW ECONOMY
Access to real-time product availability
89%
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The ‘NOW’ economy….Digital natives-want things now, and if not there, not patient to wait. Can go anywhere, anytime. Availability of experience is a big part of loyalty program and branding -89% of consumers said access to real-time product availability would influence their shopping choices At SAP, we refer to this as real time. Near real time vs real time example
SOCIAL NETWORKS AS
A SHOPPING PLATFORM
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Read slide consumer side-mobile technology , availability of bandwidth, and the emerging networked social and business economy Cost of technology is decreasing, resulting in more rapid adoption across all customer segments Enterprise side-Rapid adoption of cloud technology greatly reducing the time, cost, and complexity of deploying critical business applications across the enterprise So technology is becoming more pervasive with the consumer…and more pervasive with retailers…why is this important?
360O VIEW OF CUSTOMERS
@
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Sunum Notları
Read slide consumer side-mobile technology , availability of bandwidth, and the emerging networked social and business economy Cost of technology is decreasing, resulting in more rapid adoption across all customer segments Enterprise side-Rapid adoption of cloud technology greatly reducing the time, cost, and complexity of deploying critical business applications across the enterprise So technology is becoming more pervasive with the consumer…and more pervasive with retailers…why is this important?
THE TECHNOLOGY DECISIONS YOU MAKE TODAY WILL AFFECT THE WAY YOU DO
BUSINESS IN THE NEXT 5 YEARS.
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Key is to have the right foundation to enable your brand to compete, innovate and stay relevant to your customers in an global omni-commerce economy.
SAP HYBRIS CUSTOMER ENGAGEMENT AND COMMERCE
Digitize the end-to-end customer experience
digital goods emaildigital adsweb In
store/branch
contact center printmobile socialmarketplace Search
kw/adsagent tools
IoT sms/notificatns
@
DATA MANAGEMENT
EXPERIENCE MANAGEMENT
PLATFORM, INFRASTRUCTURE, INTEGRATION
BILLING MARKETING SALESCOMMERCE SERVICE
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A single platform that brings together: Marketing, Sales, Services, and Commerce (includes the #1 Omni channel solution, hybris) to ensure seamless digitization of the entire customer experience. SAP Customer Engagement and Commerce powered by The HANA Platform enables a 360-degree view of your customers and consumers, real-time interaction and sophisticated predictive analytics, fully integrated to the core transactional system.
SAP HYBRIS BILLING SOLUTION OVERVIEW
MARKETING SERVICE SALESCOMMERCE BILLING
SAP HYBRIS BILLING
Subscription Order
Management
Usage Metering & Transaction Pricing
Billing, Receivables, Collections
Partner Revenue Share
Business Model Design & Pricing
Simulation
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Key messages: End-to-end: provides complete coverage of the offer-to-cash process for subscriptions and usage-based service monetization, can be integrated with the rest of the CEC portfolio Modular: even though the solution is end-to-end, many customers just deploy smaller pieces of the solution, e.g., adding flexible metering and pricing to an existing legacy billing system, or adding best-in class revenue management on the back-end to underpin a legacy monetization system Pricing and Business Model flexibility: at the heart of SAP Hybris Billing is the ability to quickly build both simple and sophisticated pricing models in order to meet customer needs, and to evolve them rapidly in fast-moving markets
Digital Journey for Retail CompaniesA Cycle of Transformational Initiatives
FOCUS
prot
ect
grow
MO
TIVA
TIO
N
Wearable Tech
Digital Payments
Market Place
Digital Worldwide Reach
core periphery
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However business transformation is NOT a one time project, it’s really a journey within the Digital Economy. This means that companies will go through a transformation cycle which will be iterative. This journey will be unique to every single company, based on the strategic choices, at a certain time which will depend on the focus of their business, staying on the core versus expanding on the periphery, and the economic aim which can be either protecting or growing. Let’s give some examples of how it can translate for retail companies: As I was quoting the CEO of Under Armor previously, lets start with an example of disruption with the advent of wearable tech. These new types of connected wearables will allow the provider to track, measure and analyze their signals in real-time for enhancing the customer experience. We will see actually later a specific use case on this type. Another decision might be to grow beyond the core products by inviting different partners to contribute to a market place. We are all familiar with one of the pioneer here with Amazon, but companies such as Tesco Direct and Asos provide a simple interface for consumers to buy what they want, when they want from different vendors all in one interface Companies might prefer to stay on their core, and optimize the way they interact with the customer: for instance, Starbucks introduced a mobile feature called “Mobile order & Pay” which enables the customers to order and pay for their drinks directly, skipping the checkout line completely. Finally, a retailer might want to expand the business on periphery services wrapped around an existing product or yet expand geographically. Apple is one the best example of having gone through all these phases: A good techno wrapped in a great business model, making downloading digital music easy and convenient, with the new value prop of “1000 songs in your pocket” As mentioned it’s also a great example of multi-sided business model, with currently more that 1 M suppliers on their platform, for 1.4 b apps They offer all types of payments with credit card, paypal, click and bag, itunes store gift cards and also country specific payments Finally they were present in more than 120 countries in 2012
DELIVER THE VALUE
StreamlineCosts
CREATE THE VALUE
Find New Revenue Streams
Mapping Digital Transformation forCustomer Engagement and Commerce
CAPTURE THE VALUE
FOCUS
prot
ect
grow
MO
TIVA
TIO
N
core periphery
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So in this Digital Transformation, data creates value. The fundamental question is then: how to best capture this value? Either going for growth, and while creating a new value proposition, the company might review the way they want to monetize it and define new revenue models to find new revenue streams moving from product to service and capture the usage data or introducing IoT, and meter the connected events Or/and looking at how best to deliver this new value . This means investigating the changes needed on the operational and business processes, as well as the resources needed to deliver it. The company will be looking as well at the best GTM strategies: do we want to change the way we interact with our ecosystem of partners, both on the supplier and reseller sides, do we want to create a direct relationship with the customer? When innovating on the delivery processes, the company might think of streamlining production and business processes to optimize costs, and beyond this, customer satisfaction and time-to-market So when it comes to capturing the value, a company might mix these two approaches. And this is in fact what we have seen so far in terms of use cases in the Retail industry, when it comes to their monetization strategies.
RENOVATING MONETIZATION BUSINESS PROCESSES
Five Use Cases for Online Retail Monetization Challenges
As explained in the previous slide, and also based on our years of experience working with more than 400 customers now across industries,, we have been able to categorize two main approaches for our customers to cope with their monetization challenges. On one side, the companies trying to optimize their core business, and for this purpose they are looking for more agility and automation on their existing business processes On the other side, the companies looking for expansion beyond their core business, looking after new market opportunities up to the disruption of their current business model. Even though retail is a newer space for hybris Billing than the other industries, we have seen that this model applies as well to the retail space: On the renovation side , this will correspond to companies in a phase of expansion of their business, whether it’s because they are going to new geographies, or their online commerce is just growing fast, or yet there are in an acquisition phase where they need to merge different systems, or simply because they want to introduce new options on their existing revenue model. The second monetization challenge comes from companies in a phase of business model disruption, or exploration of brand new markets. Here we have seen through our experiences four main cases: Moving to subscriptions and usage based, and we will see some examples of that Going for the IoT world with connected devices in wearables for instance Developing a digital commerce model, on top of the traditional retail business, going for hybrid models Introducing a multi-sided business model, between partners of all types and customers Let’s go through some precise examples now together.
prot
ect
grow
core periphery
Payment Facility For Your Online Commerce
DigitalCommerce
Revenue Management Renovation
Cross Payments for single purchase
One Payment type per purchase is not enough
Opportunities for Instalment Plans or Allowances create additional
business
Order 10; Try 10 at Home; Return 6; Pay for 4!
-20% DSO
-80% Unmatched payments
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Sunum Notları
So let’s look at a company already in the Digital Commerce but who would like to introduce payment flexibility. This is the case here of H&M Moving from physical store sales to online eCommerce and mobile commerce, H&M primary motivation was to introduce payment flexibility, to reassure basically the customers for their online purchases. This meant for H&M putting in place: Flexible payment options such as Credit card, cheque, paypal, bank transfer, direct debit, cash on delivery…. Flexible customer payment terms with installment plans, revolving credit, cross/split payments for multiple purchases Flexible configuration for an agent looking at unmatched payments, partial clearings … Flexible handling of payment returns: order 10, try 10 at home, return 6 and pay for 4 Flexible collection strategies with automated dunning processes Flexible calculation of due date and interests for deferred payments Obviously this needs to be done while being able to scale with the success of the online shop, and hence handling massive volumes of transactions both B2B and B2C. And do it also while carefully managing the credit exposure risk The two main benefits out of this for H&M were: Increase Business Process efficiency Cost reduction through minimizing DSO
Example SAP Hybris Billing Customers
CARGO SHIPPING, LOGISTICS PROFESSIONAL SVCS
Strictly Confidential
HIGH-TECH, MEDIA, DIGITAL COMMERCE
TELECOMMUNICATIONS
RETAILPASSENGER TRANSPORT, ROAD TOLLING
POSTAL
FINANCIAL SERVICES
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This slide is for SAP Internal Use Only. This list includes customers who have chosen the SAP Hybris Billing solution, customers who are live and customers who are live and public references for the solution. Not all customers on this slide have therefore given their consent to the use of their logo in connection to SAP or SAP Hybris Billing. This slide should not be provided to customers or prospects but only used internally.
