eCommerce. How digital is transforming retail
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Transcript of eCommerce. How digital is transforming retail
eCommerceHow digital is transforming
retail
II Aula Digital Business
Alex Rayón Jerez@alrayon, [email protected]
October 16th, 2014
iConsumer Global Research Initiative
1) Big Bang
2) New skills
3) Omnichannel
7) mCommerce
4) Marketing analytics
6) sCommerce
5) Social Intelligence
Índice de contenidos
● eCommerce Big Bang● New skills● Omnichannel● Marketing analytics to drive growth● Social Intelligence● sCommerce● mCommerce
Índice de contenidos
● eCommerce Big Bang● New skills● Omnichannel● Marketing analytics to drive growth● Social Intelligence● sCommerce● mCommerce
eCommerce Big BangeConomy
Source: http://www.theatlantic.com/business/archive/2011/11/the-8-trillion-internet-mckinseys-bold-attempt-to-measure-the-e-conomy/247963/
eCommerce Big BangeConomy (II)
Source: http://www.theatlantic.com/business/archive/2011/11/the-8-trillion-internet-mckinseys-bold-attempt-to-measure-the-e-conomy/247963/
eCommerce Big BangeConomy (III)
Trade
Private consumption
Public expenditure
Private investment
Electronic equipment, ecommerce, broadband suscriptions, mobile Internet, hardware and software
Spending and buying by government in software, hardware and services
Telecommunications, extranet, intranet and web sites
Exports of Internet equipment + B2B services with overseas
companies
1,8%
0,5%
1,0%0,1%
eCommerce Big BangeConomy (IV)
Source: http://www.retailresearch.org/onlineretailing.php
Source: http://disruptors.mx/for-ecommerce-to-take-off-the-infrastructure-has-to-be-in-place-or-create-new-alternatives/
eCommerce Big BangDigital transformation of the economy
Transport
Utilities
Infrastructure
Finances
...
Apparel
Tourism
Electronics
Newspapers
Education
Health
Markets
* Scheduling and optimization
* Reduce consumption
* Saving time and cost for companies
* Efficient allocation of capital
eCommerce Big BangDigital transformation of the companies
Digital Digital
Digital
eCommerce Big BangDigital transformation of the companies (II)
Source: http://evigo.com/8570-mckinsey-digital-transformation-e-commerce-coming/
eCommerce Big BangeCommerce in Europe
Source: https://media.licdn.com/mpr/mpr/p/2/000/268/1b5/21f35eb.jpg
eCommerce Big BangeCommerce in Spain
Fuente: http://www.ipmark.com/pdf/CompradorOnline_ES.pdf
Fuente: http://www.hablandoencorto.com/2014/01/Perfil-internauta-Espana.html
eCommerce Big BangeCommerce in Spain (II)
Fuente: http://cnmcblog.es/2013/09/10/comercio-electronico-en-espana-it-2013-facturacion-record-para-empezar-el-ano/
eCommerce Big BangTipping point
● Traditional commerce and e-commerce are merging
● Pervasive technology → useful○ Already past the tipping point
Source: http://www.justintarte.com/2012/10/leadership-and-your-tipping-point.html
eCommerce Big BangTipping point (II)
Fuente: http://jeff.a16z.com/2014/01/15/the-tipping-point-e-commerce-version/
The Tipping Point (E-Commerce Version)
eCommerce Big BangTipping point (III)
● Implications? ○ Real-state○ Showroom○ Distribution centers○ Local economies○ Technology-enabled shopping
○ Different approach on how we engage with the customer
○ ...
eCommerce Big BangTechnology and its effects
The technology has transformed the retail industry
Coase TheoremOnline channels reduce transaction costs
eCommerce Big BangTechnology and its effects (II)
FromConsumer-oriented Internet
towards Company-oriented Internet
Source: http://antoniotoriz.blogspot.com.es/2013/08/internet-de-las-cosas.html#sthash.hAa2ha7K.dpbs
Source: http://pame95.wordpress.com/2012/11/03/mi-ensayo-planeta-web-2-0-la-intercreatividad-y-web-2-0/
eCommerce Big BangTechnology and its effects (III)
● Internet○ Tool for automation + market expansion
● Cloud computing○ Reduce the need for hefty investment in IT systems
● Online marketing○ Target specific consumer segments
● eCommerce○ Instant and direct access to consumers○ Support services such as payment and logistics
● Online price transparency○ Pressurce on margins
eCommerce Big BangShopping experience
● Shopping is no longer only an utility activity○ It is also an
entertainment and engagement
● Is a social experience● New shopping
experience○ Just-in-Time○ Service
Source: http://arstechnica.com/staff/2012/08/op-ed-apple-store-may-be-shifting-from-customer-experience-to-profit-machine/
eCommerce Big BangShopping experience (II)
Índice de contenidos
● eCommerce Big Bang● New skills● Omnichannel● Marketing analytics to drive growth● Social Intelligence● sCommerce● mCommerce
New skillsIntroduction
Where is our client?
New skillsDigital competencies
● Understand how to take advantage of the technology and how it works in order to be able to:○ Search for information○ Filter it○ Organize it○ Synthesize it○ Generate knowledge○ Communicate our knowledge○ Interact with our stakeholders
New skillsSocial networks
Source: http://sisobproject.wordpress.com/2011/07/27/social-networks-social-media-and-social-network-analysis/
New skillsQuantitative reasoning
Source: http://serc.carleton.edu/NICHE/examples_qr_programs
New skillsHow to optimize
Source: http://www.attilasystems.com/search-engine-optimization-seo/
New skillsHow to engage
The Attention Economy
Índice de contenidos
● eCommerce Big Bang● New skills● Omnichannel● Marketing analytics to drive growth● Social Intelligence● sCommerce● mCommerce
Omnichannel
Source: https://media.licdn.com/mpr/mpr/p/2/000/268/1b5/21f35eb.jpg
Omnichannel (II)
Source: http://www.i95dev.com/understanding-omni-channel-and-multichannel/
Experience Transaction
Omnichannel (III)
1. Refine Your Brand’s Digital Presence2. Search Strategies Should Come First3. Target Existing Customers Using Site
Retargeting4. Search Retargeting Will Help You Gain
New Customers5. Use Mobile To Connect The Dots
Índice de contenidos
● eCommerce Big Bang● New skills● Omnichannel● Marketing analytics● Social Intelligence● sCommerce● mCommerce
Marketing analyticsIntroduction
Source: https://media.licdn.com/mpr/mpr/p/2/000/268/1b5/21f35eb.jpg
Marketing analyticsIntroduction (II)
Source: http://www.accenture.com/us-en/Pages/insight-cmo-digital-transformation-summary.aspx
Marketing analyticsBig Data
Source: http://de.nr-apps.com/blog/2014/01/09/zukunft-des-handels-big-data-und-bitcoins/
Marketing analyticsMROI
● MROI: Marketing Return on Investment○ McKinsey review: an integrated analytics approach
could save up to 15-20% total budget■ That’s $ 200.000.000.000 worlwide
Source: http://www.thecmosite.com/author.asp?section_id=1137&doc_id=234474
Marketing analyticsMROI (II)
Source: http://www.marketingsherpa.com/charts/roi020409-1.gif
Marketing analyticsSmall data
“More data does not mean more knowledge” [Jenkins2013]
Searching for the evidence in a mass of data requires knowing what kind of evidence is
neededKnowledge of the domain and understanding
and interpretation of the patterns we see
Marketing analyticsAnchoring analytics to strategy
● How do we allocate marketing resources?○ Previous years’ budgets or products/lines that worked
well○ This situation produces “Beauty contests”
Source: http://www.thefinancialphilosopher.com/2008/05/weekend-wisdom.html
Coolest proposalsLoudest shouts
Marketing analyticsAnchoring analytics to strategy (II)
● But is should be focused on○ Most need to grow○ Defend current position
● How to measure it?○ Strategic return○ Economic value○ Payback window
Marketing analyticsAnchoring analytics to strategy (III)
1) Marketing-Mix Modeling (MMM)● Big Data to determine the effectiveness of spending by
channel
● Include external variables such as seasonality, and competitor and promotional activities to uncover
○ Longitudinal effects: changes individuals and segments over time
○ Interaction effects: differences among offline, online and Social Media activities
Marketing investments
Marketing investments
Statistical links
Marketing analyticsAnchoring analytics to strategy (IV)
2) Heuristich RCQ (Reach; Cost; Quality)● Disaggregate touchpoints into its component paths
○ target consumer Reached○ Cost per unique touch○ Quality of engagement
● More limited; but the best one when limited data is available
Marketing analyticsAnchoring analytics to strategy (V)
3) Attribution modeling
● Set of rules or algorithms that govern how credit for converting traffic to sales is assigned to online touchpoints○ Email campaign○ Online ad○ Social-networking feed○ Website
● Statistical modeling regression techniques
Marketing analyticsAnchoring analytics to strategy (VI)
● Integrate capabilities to generate insights○ DSS tool to integrate the results from MMM, RCQ and
AM
Source: http://water.usgs.gov/watercensus/delaware-dss.html
Marketing analyticsAnchoring analytics to strategy (VII)
● Analytical approach at the heart of the organization○ Data scientists○ Marketing researchers○ Digital analysts
● Question assumptions, formulate hypotheses, and fine-tune the math
Marketing analyticsData as competitive advantage
● Data is both an art and a science○ Science
■ A lot of research■ ¡But never make Data Mining alone!
○ Art■ Critical reasoning■ Business judgement■ Domain knowledge
Marketing analyticsData as competitive advantage (II)
Source: Data Mining with WEKA MOOC (http://www.cs.waikato.ac.nz/ml/weka/mooc/dataminingwithweka/)
Marketing analyticsData as competitive advantage (III)
Marketing analyticsData as competitive advantage (IV)
Marketing analyticsKnowledge discovery methods
1. Prediction methods
2. Structure discovery
3. Relationship mining
Marketing analytics1) Prediction methods
Source: Data Mining with WEKA MOOC (http://www.cs.waikato.ac.nz/ml/weka/mooc/dataminingwithweka/)
Marketing analytics1) Prediction methods (II)
Source: Data Mining with WEKA MOOC (http://www.cs.waikato.ac.nz/ml/weka/mooc/dataminingwithweka/)
Marketing analytics1) Prediction methods (III)
Marketing analytics1) Prediction methods (IV)
Source: Data Mining with WEKA MOOC (http://www.cs.waikato.ac.nz/ml/weka/mooc/dataminingwithweka/)
Marketing analytics1) Prediction methods (V)
Source: http://lawprofessors.typepad.com/legalwhiteboard/important-research/
Marketing analytics1) Prediction methods (VI)
Source: Data Mining with WEKA MOOC (http://www.cs.waikato.ac.nz/ml/weka/mooc/dataminingwithweka/)
Marketing analytics2) Structure discovery
Clustering
Source: http://inside-bigdata.com/2013/12/18/tech-tip-power-pitfalls-clustering/
Source: http://www.cs.bilkent.edu.tr/~saksoy/research.html
Marketing analytics2) Structure discovery (II)
Factor Analysis
Source: http://www.mathworks.es/machine-learning/examples.html?file=/products/demos/machine-learning/cluster_genes/cluster_genes.html
Marketing analytics2) Structure discovery (III)
Social Network Analysis
Source: http://rs.resalliance.org/2010/11/03/reading-list-using-social-network-analysis-sna-in-social-ecological-studies/
Marketing analytics3) Relationship mining
Association rule mining
Source: http://aimotion.blogspot.com.es/2013/01/machine-learning-and-data-mining.html
Marketing analytics3) Relationship mining (II)
Correlation mining
Source: http://www.bain.com/publications/articles/Growing-brands-by-understanding-what-Chinese-shoppers-really-do.aspx
Marketing analytics3) Relationship mining (III)
Sequential pattern mining
Source: http://www.mdpi.com/1424-8220/10/8/7496
Marketing analytics3) Relationship mining (IV)
Causal data mining
Source: http://www.ciberconta.unizar.es/leccion/INTRODUC/485.HTM
Índice de contenidos
● eCommerce Big Bang● New skills● Omnichannel● Marketing analytics to drive growth● Social Intelligence● sCommerce● mCommerce
Social intelligenceIntroduction
● Social Media○ Insights and how consumers think and behave
● Social Intelligence literacy● How social technologies can augment the
intelligence-gathering approaches○ How information is sourced, collected, analyzed and
distributed
Social intelligenceSocial Media approach
Source: http://www.mckinsey.com/insights/high_tech_telecoms_internet/how_social_intelligence_can_guide_decisions
Social intelligenceSocial Media approach (II)
1) From identifying data to mapping people and conversations
● Social Media → new information map○ Primary and secondary information sources
Source: http://tedescostwocents.com/social-media-models/
Social intelligenceSocial Media approach (III)
2) From data gathering to engaging and tracking
● Tools to pinpoint where information and expertise reside and track data in real time○ i.e. General Electric,
@ecoimagination + # key topics
Social intelligenceSocial Media approach (IV)
3) From analysis and synthesis to structuring and mining
SWOT
Porter 5 forces
Analytic methods to structure and
derive insight from complex
information
Social intelligenceSocial Media approach (V)
3) From analysis and synthesis to structuring and mining (cont.)
Social intelligenceSocial Media approach (VI)
4) From reporting to curating and embedding
● Automatically curate highly pertinent information○ Flipboard
● Visual mapping
Índice de contenidos
● eCommerce Big Bang● New skills● Omnichannel● Marketing analytics to drive growth● Social Intelligence● sCommerce● mCommerce
sCommerceIntroduction
Source: https://media.licdn.com/mpr/mpr/p/2/000/268/1b5/21f35eb.jpg
sCommerceSocial Networks
Social networks play the simultaneous role of portal
and link with retailers, providing a source of
information prior to purchase
sCommerceCategories
1. Options to share on the website2. Social infused onto site3. A View Into Individual Activity4. Site as it’s Own Social Network5. Six Degrees of Separation6. Social-Sourced Shopping
sCommerceCategories: 1) Options to share on the website
Source: http://www.fluid.com/e-commerce/social-commerce
sCommerceCategories: 2) Social infused onto site
sCommerceCategories: 3) A View Into Individual Activity
Source: http://www.fluid.com/e-commerce/social-commerce
sCommerceCategories: 5) Six Degrees of Separation
sCommerceCategories: 6) Social-Sourced Shopping
sCommerceTools
Source: http://comunidad.iebschool.com/iebs/redes-sociales/social-commerce-redes-sociales-ventas-comercio-electronico/
Índice de contenidos
● eCommerce Business Models● Current situation of retailing● New skills● Marketing analytics to drive growth● Social Intelligence● sCommerce● mCommerce
mCommerce
Source: https://media.licdn.com/mpr/mpr/p/2/000/268/1b5/21f35eb.jpg
mCommerce (II)
● Reaching the tipping-point○ Technology-enabled screens○ Connected screens of all sizes
Source: http://www.slideshare.net/TNSGlobal/mobile-commerce-reaches-the-tipping-point
mCommerce (III)
The number of searches on mobile phones is booming and there is a direct impact on
purchasing behaviour
65% say that they postpone their purchase or change suppliers according to this research
Copyright (c) 2014 University of DeustoThis work (but the quoted images, whose rights are reserved to their owners*) is licensed under the Creative Commons “Attribution-ShareAlike” License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/
Alex Rayón JerezOctober 2014
eCommerceHow digital is transforming
retail
II Aula Digital Business
Alex Rayón Jerez@alrayon, [email protected]
October 16th, 2014