Ivano Ortis EMEA Research Director December 4, 2008 · 2008-12-05 · Discussion Objectives About...
Transcript of Ivano Ortis EMEA Research Director December 4, 2008 · 2008-12-05 · Discussion Objectives About...
Ivano Ortis
EMEA Research Director
December 4, 2008
© Global Retail Insights, an IDC company Page 2
Discussion Objectives
About us
EMEA Retail Industry Pulse
THE Strategic Priority in Retail
EMEA Retail IT Directions Overview– Retail Demand Intelligence– Store Technologies– Online/Cross-Channel Commerce– Consumer Intelligence
Future Retail Technologies: GRI Vision
Recommended Actions to Retailers
© Global Retail Insights, an IDC company Page 3
Global Strategic Retailing Research Advisory Services
GRI programs provide retailers and IT vendors relevant and timely market research on retail industry activity and technology usage from beginning to end – from the supply chain through the consumer shopping experience – across geographies.
Retail IT Infrastructure Strategies (Lead Analyst: Bob Parker)Supports the needs of retail IT executives and architects who focus on ensuring the stability, scalability, and flexibility of their retail enterprise technology model. Technologies covered include SOA, business intelligence, enterprise software, and managed networking.
Retail Store, Channel, and Consumer Strategies (Lead Analyst:Ivano Ortis)
Supports the needs of store operations and retail operations leaders and IT executives responsible for supporting all aspects of the customer selling process. Technologies covered include store and cross-channel technologies.
Retail Supply Chain, Demand Planning, and Merchandising Strategies (Lead Analyst: Leslie Hand)
Supports the needs of senior merchandising, supply chain, and retail IT executives responsible for ensuring successful delivery of products from source to shelf. Technologies covered include enterprise merchandising and planning solutions.
EMEA IT Opportunity: Retail & Wholesale (Lead Analyst: Ivano Ortis)
© Global Retail Insights, an IDC company Page 4
Engagement Models
GRI Custom Research Strategy
Market SizingGTM
ServicesSales & Marketing
Enablement
Business & ITAlignment
ITBenchmarking
Vend
or F
ocus
Reta
iler
Focu
s
StrategicBenchmarking
As part of our custom research offering, GRI works with clients to deliver a range of strategic advisory services.
StrategicPlanning
Strategic
Planning
© Global Retail Insights, an IDC company Page 5
Discussion Objectives
About us
EMEA Retail Industry Pulse
THE Strategic Priority in Retail
Retail IT Directions Overview– Retail Demand Intelligence– Store Technologies– Online/Cross-Channel Commerce– Consumer Intelligence
Future Retail Technologies: GRI Vision
Recommended Actions to Retailers
© Global Retail Insights, an IDC company Page 6
ConsumerExperience& Insights
"Can you make sure we talk about something other than the economy?"
UK online retailers GAME, play.com, gamestation not meeting consumer demand for GTA IV
Retail Sales in Italy declined to 2005 levels....but some retailers are expanding (e.g. Gruppo Coin)
the Sales & Marketing VP of a major Eastern EU retailer whispered in my ear, “We are scared about the rising inflation, we need advise on targeting customers better"
© Global Retail Insights, an IDC company Page 7
Consumer-Centricity THE Strategic Priority in Retail
Require understanding consumers’ mindsets across channels– as opposed to traditional customer segmentation based solely on
demographics
Require an evolution of shopping platforms– Multi-channel retailing platforms– Self-service technologies– Interactive Marketing & Promo– Mobile integration
ANY application that can enrich the shopping experience – improve retail workflows efficiencies– Respond to product quality, safety and retail ‘greening’.
Bottom-line: drives larger and more profitable transactions
© Global Retail Insights, an IDC company Page 8
About us
EMEA Retail Industry Pulse
THE Strategic Priority in Retail
Retail IT Directions Overview– Retail Demand Intelligence– Store Technologies– Online/Cross-Channel Commerce– Consumer Intelligence
Future Retail Technologies: 2020 Vision
Recommended Actions to Retailers
© Global Retail Insights, an IDC company Page 9
Retail IT: Why Now?
Inflexible Legacy Apps
Master Data Quality Cross-Channel Transparency
EmergingMarkets
Changing ConsumerInfluences
Retailer Quest For
Optimisation
Reactive Traditional Workflows
Regulatory& Social
Pressures
Limited Science/Intelligence
Data SecurityCustomer Privacy
Green Retailing
Mega Merchants &Hyper-Competition
© Global Retail Insights, an IDC company Page 10
Segment Priorities
Food&
Drug
GeneralMerchandise
&Hypermart
Big Box&
Small BoxSpecialty
DepartmentStore
Convenience&
Fuel
Strategic Issues
•Adv. Category Mgmt
•In-Stock Levels
•Perishables
•Promotions
•Labor Optimization
•POS Refresh / PCI
•Loyalty / CRM
•Self-Service
•Inventory Visibility
•RFID
•Replenishment
•Global Sourcing
•SKU Rationalization
•Labor & Task Mgmt
•Loyalty / CRM
•Inventory Optimization
•Store/SKU-level Planning
•Global Sourcing
•Multi-Channel
•Replenishment
•Private Label
•Apparel Planning
•Pricing
•CRM
•Mobile
•Merchandising
•Category Planning
•Payments
•Replenishment
•Supplier Sync
© Global Retail Insights, an IDC company Page 11
EMEA Retail IT: Roadblocks & Challenges
Access to Data/Poor Data Quality
Lack of System Integration/Too Much Legacy
Limited Decision Support or Analytics
Little Supply Chain Visibility
Lack of ROI/Metrics/IT Demand Coordination
Lack of Cross/Multi‐Channel Loyalty
Inefficient Checkout
Lack of Business Process Optimization
© Global Retail Insights, an IDC company Page 12
Master Data Management Lessons Learned from the Leaders
“Lack of centralization & automation in merchandising processes- decentralized and manual article master-data creation - resulted in poor product-information quality”
“Data fragmentation across disparate systems and un-structured, manual data-management processes had to be re-engineered and automated in the new system.”
“Low SKU-level accuracy, poor data-integrity and essentially non-existent auto-replenishments”
“Stock levels were not synchronized to demand patterns. Low data-quality, both at master-data and point-of-sale level, led to high invalid article-rates”
“From a system point of view, there was also duplication of articles and customer records. Merchandise-data management was labor intensive”
“Data Integrity. The essential requirement to increase confidence in merchandise planning and purchasing..was a major technical challange.”
“We required rich product attributes”
© Global Retail Insights, an IDC company Page 13
Business Drivers to ICT Investments in EU Retail
1. Improve demand forecasting and analysis capability
2. Expand customer marketing and loyalty programs
3. Create more effective promotions
4. Decrease store operating costs
5. Enhance data security
6. Expand international store locations
Source: Retail IT Spending Survey, GRI, May, 2008
Number of respondents = 451 EMEA Retailers
© Global Retail Insights, an IDC company Page 14
2008 Retail IT Spending: Key Findings (July 2008 Edition)
WW 2008 retail IT spending: $80.4BTotal WW 2011 Forecast: $96.7B2006 – 2011 Growth Rates– US: 5.1%– Asia / Pacific: 5.3%– Western Europe (WE): 5.8%– Rest of World: 14.4%
WE 2008 retail IT spending: $27.3B2007 – 2011 CAGR Differ by EMEA Country, Retail sub-segment & Technology Category (we cover 27)
© Global Retail Insights, an IDC company Page 15
ConsumerExperience& Insights
Real-time Analytics
Data & Payment SecurityRetail Integration/Data Standardization
Managed IP Networks/Optimized Infrastructure
Proliferation of in-store
devices
Centralized POS/Store Systems
Cross Channel
Evolution
Precision Promo,Price,
Loyalty
Wrapping-up 2009 EMEA Retail IT Directions
Responsive Supply
Networks
Retail Demand
Intelligence
Total Inventory Visibility
Advanced Retail
Planning
© Global Retail Insights, an IDC company Page 16
Retail Demand Intelligence (RDI)..
..what 3 out of 4 EMEA retailers want.
© Global Retail Insights, an IDC company Page 17
Retail IT Model
EnterpriseRetail Planning
CustomerSelling Systems
Global Supply Network
Perishables
Demand Intelligence EngineCorporate Systems & Data Security
Integration Platform
Sourcing
TradeManagement
Logistics
Visibility
Procurement
PLM
RFID
CategoryManagement
AssortmentPlanning
AllocationPlanning
Price / Promo / Markdown Planning
InventoryManagement
Returns
SpaceManagement
Point-of-Sale
CRM & Loyalty
E-Commerce
Labor Management
Self-Service
Auto-Replenishment
DataSynchronization
ItemManagement
Payments
Guided Selling
Mobile
Pharmacy
Loss Prevention
Digital Media
Food &Drug
Hardlines
Softlines
RetailStore
Online
Phone
Retail Demand Intelligence (RDI) represent both the integrated “Engine” underpinning effective retail operations and the embedded functions & analytics unlocking advanced demand intelligence abilities
© Global Retail Insights, an IDC company Page 18
RDI: Interactive Performance Management
PredictivePredictiveActionAction
DemandIntelligence
Results
ReactiveReactiveActionAction
BusinessIntelligence
Retail Execution
Operational Data
EnterprisePerformanceManagement
EnterprisePerformanceManagement
AdjustmentsKPI Scorecard
© Global Retail Insights, an IDC company Page 19
RDI Benefits
Pricing
3‐5% gross profit
improvement along
with 2‐4% sales lift
Inventory
20‐35% OOS reduction, 2‐3x more turns,
10‐20% carrying costreduction
Markdowns
Store Labor
Customer Marketing
15‐35% increase in
transaction sizes5‐10% increase in
loyal customer profitability
Promotion
25‐30% compressionIn promo cycle time
Merchandise Planning
sales lift fromStore‐centric allocations
Product Sourcing
45+% faster sell‐
through
© Global Retail Insights, an IDC company Page 20
The new consumer shopping experience…
© Global Retail Insights, an IDC company Page 21
Strategic Store IT Investments Should…
Influence
Deliver
Intrusion
Avoid
Impulse
Broaden
CustomerSelling
Systems
Point-of-Sale
CRM & Loyalty
E-Commerce
Labor Management
Self-Service
Auto-Replenishment
Payments
Guided Selling
Mobile
Loss Prevention
Digital Media
© Global Retail Insights, an IDC company Page 22
Creating “At-Product Influence”
DigitalSignage
PriceOptimization
MobileScanning Devices
Guided Selling/Self‐Service
Store SensorNetwork
TargetedConsumer Marketing
© Global Retail Insights, an IDC company Page 23
The New Retail World Self + Online + Digital + Mobile
POS/Payment systems
Self checkout/servicesystems
Labor managementsoftwareeCommerce/multi-channel softwareLoss Prevention
Digital signage
Retail-specific mobiledevicesOther
Source: Retail IT Spending Survey, GRI, May, 2008N=451 EMEA Retailers
2008 Store Systems Budget Allocation
Systems = hardware + software 44%!!
© Global Retail Insights, an IDC company Page 24
Store DB
Retail Store Systems
Store Back- Office
KioskPOS Self- checkout
Mobile Personal Shopping Assistant
Digital Signage /
ESL
Network Video
DC Back- Office
Suppliers, Distributors
eCommerce
Call Center
DC
Enterprise Systems
Network
Head OfficeBranch OfficeStore Sync Paths
Other Data Sync
DBData
Warehouse Enterprise Systems
DC DB
Distributed POS Architecture
© Global Retail Insights, an IDC company Page 25
Retail Store Systems
Store Workbench
KioskPOS Self- checkout
Mobile Personal Shopping Assistant
Digital Signage /
ESL
Network Video
DC DB DC Back- Office
Suppliers, Distributors
eCommerce
Call Center
DC
Enterprise Systems
IP VPN
Branch Office Data Sync
Simplified Back- Office & Store Infrastructure
Data Warehouse Enterprise
Systems
Store Management
System
Head Office
Centralized POS Architecture
© Global Retail Insights, an IDC company Page 26
Reference Proof Points – Store Systems centralization
In-store thin client applications and centralized storage are the key motivations behind networking investments for two out of three European retailers (source: Retail WAN Manager survey, 2008).
“Class of service" to rapidly become a priority due to the convergence of retail store and consumer owned devices in the next two to three years (source: Retail WAN Manager survey, 2008).
The archetype of the networked store will enable the deployment of a centralized real-time database for the entire retail enterprise.
This will make a major contribution to achieving both business consistency and simplification;
Will allow store managers and LOB to react quickly to shopping trends with informed & timely retail decisions.
Mitigating steps for centralised POS systems are doable– The major concern surrounding the decision to implement a centralized PoS
architecture is that it introduces a single point of failure.
© Global Retail Insights, an IDC company Page 27
Other notable directions
Advanced payments / contact-less payments
Mobile Marketing– Offers driven by specific incentives– From location orientation to Fully Relevant, Context-Aware,
Personalized Mobile Services– Must be quietly influencing
Automated Stores
2D barcode
RFID for customer-facing apps
© Global Retail Insights, an IDC company Page 28
Online /Cross- Channel
Commerce
© Global Retail Insights, an IDC company Page 29
Consumers & Online ChannelsConcernant vos achats non alimentaires par rapport à
l’année dernière est ce que…
0% 20% 40% 60% 80% 100%
Vous comparez les prix entre ceux pratiquésdans les points de vente physique et ceux
pratiqués sur Internet
Vous tenez compte des engagements relatifs audéveloppement durable lorsque vous achetez
un produit
Vous êtes exigeant sur la qualité des produits
Vous comparez les prix entre les marques dansle magasin ou entre les enseignes
(% of respondents)Plus Autant Moins NSP
0% 10% 20% 30% 40% 50% 60% 70% 80%
NSP
Kiosque / cornerAutre (Préciser)
Ecrans
Courrierpersonnalisé
Site Webcommunautaire
Magazine oubrochure journalière/
Vendeur en magasin
Les informations enmagasins (
Prospectus dans laboite à lettre
Site de l'enseigne
Forum Internet
Comparateur de prixsur Internet
Site Internet de lamarque
(% of respondents)
Pour un achat de type non alimentaire pouvez vous m’indiquer parmi les propositions suivantes les sources d’information que vous utilisez pour vous renseigner sur un produit ou une marque ?
Source: Global Retail Insights France Consumer Survey,October 2008, 1000 respondents, Actual Results
© Global Retail Insights, an IDC company Page 30
Online Consumer Requirements
Potential cost and time saving opportunities
Increased shopping flexibility & around the clock availability
Transparent product informationOnline platforms having an immediate, ever-increased
impact on store sales
Digital shoppers & online advocates - rather than first time online buyers - will drive holiday online sales
Multi-channel retailing platforms represent a crucial element to attract new customers and retain loyal ones.
Example - France Consumer Survey:
– 70%+ of consumers surveyed said that the availability of different shopping choices (online, store, catalogue) is an important or very important criteria to be a loyal customer of a retail brand.
–And this is second only to prices!
© Global Retail Insights, an IDC company Page 31
Online Commerce IT Implications1. eCommerce platform investments to be evaluated against opportunity
costs, including potential uplift on conversion rates
2. The objective is to improve the shopping experience– evolution of digital customer services and intuitive interfaces– From additional sales channel, to informed shopping decisions place– 2009 & beyond: fully turn eCommerce into social shopping networks– Advanced search technologies, semantic Web, natural language and
advanced voice recognition– Is it time for 3D online shopping malls?
3. Consumer data privacy & payment security
4. Never underestimate the value of cross-channel transparency
5. OtherDynamic, On-Demand eCommerce CapacityIntegrate order fulfilment, logistics and payment services if you want to be a serious player in global shopping networksManaged services and SaaS options to hit the market in the second half of 2009
© Global Retail Insights, an IDC company Page 32
Advanced Consumer Intelligence
© Global Retail Insights, an IDC company Page 33
Next Gen CRM/Loyalty
Parallel Objectives:– Capturing changing consumer expectations/behaviors– Tracking competitive dynamics– Optimizing sales performance– Enhancing overall customer satisfaction– Increasing brand value recognition and corporate image
Require complete integration of the shopping life cycle
Result in a distinct differentiating factor for retailers
Metrics: measurable increase in customer retention, new customer acquisition, conversion rates, impulse buying push, promo profitability, ..
.. drive repeated, larger and more profitable customers' transactions
© Global Retail Insights, an IDC company Page 34
Loyalty Management
Objective of loyalty management enhancements: to increase customer retention at lower costs
Loyalty management is first and foremost a strategic business issue across the whole organisation
Fragmented legacy systems highly limiting – Business and operational agility– Cost of ownership – Data integrity – typically due to a lack of integration and real-time
synchronization– Customer responsiveness & personalization
© Global Retail Insights, an IDC company Page 35
Consumer Intelligence IT Implications
Enhance customer intelligence - Optimized customer-profiling analysis and customer segmentation based on profitability are key
Deliver instant marketing and sales intelligence capabilities -providing a single view of customers across multiple touch points – Always unlock advanced analytics to track online consumers
behaviours
Develop targeted promotional campaigns and personalized customer services.– Empowering the customer experience with self-service options – The need for real-time is real in retail
Interactive marketing capabilities require retail IT integration– Cross-channel promo management apps +– Consumer intelligence/analytics +– CRM/loyalty apps +– POS data +– Inventory +– Merchandising & sourcing systems
© Global Retail Insights, an IDC company Page 36
Eleven Years From Now….
In 2020
© Global Retail Insights, an IDC company Page 37
Our Retail IT Vision: 5-10 Years Out
Universal Item-level RFID w/ store sensor networks
NFC-enabled consumer mobile phone payment
Transparent analytics
Network Video / Advanced Video Analytics
Device-level centralized system & platform management
Intelligent Self-Service
Customer-specific pricing
3D visualization
Transparent mobile integration
Fully automated Self-service stores
© Global Retail Insights, an IDC company Page 38
ConclusionsRetail success in challenging times will not result solely from pricing & economies of scale…– Shopping Experience– Predictive Action– Sense and respond– Business & IT alignment
Retail IT leadership will be seen thru key actions and investments:– Advanced selling technologies– Demand & Consumer Intelligence– Merchant thinking– Micro Promo Planning
Ensure integration of store systems technology with customer marketing, inventory, and merchandising systems
Never Forget– Retail Data Quality & Security– Retail Integration Platforms / Retail SOA– Inventory Optimization– Cross-Channel Transparency– Retailer-centric usability, workflow-centric, role-based
© Global Retail Insights, an IDC company Page 39
Reminder: Join us at Upcoming Events
Global Retail Predictions 2009, Webcast, Jan 6
Jan 11-14 2009 - NRF 2009, NYC, US
Jan 20-22 2009 – GDS/GRI Retail CIO Summit, Bremen, Germany (http://www.ngrsummit.com/)
Jan 27 2009 - IDC NE Directions, Copenhagen, Denmark, Retail Workshop
Feb 18 2009 – GRI/IDC Mobilty & RFID 2009, Lisbon, Portugal
March 9, 2009 – GRI/IDC Global Retail Summit (Milan, Italy)
GRI/IDC Retail Roadshow CEE, 6 Events– February-September 2009: Bucharest (Romania), Sofia
(Bulgaria), Budapest (Hungary), Athens (Greece), Belgrade (Serbia), Warsaw (Poland)
© Global Retail Insights, an IDC company Page 40
About Us
Global Retail Insights, a worldwide advisory services and market research firm, assists retail industry executives, and vendors serving retailers, in achieving competitive differentiation and market success thru business-driven technology investments. Our fact-based research and merchant-centric strategies enable better offerings from vendors and more effective technology investments by retailers.
© Global Retail Insights, an IDC company Page 41
Global Retail Insights Analyst Leadership Team
Global Retail Insights analysts bring broad and deep industry knowledge, proven merchant experience, and strategic thought leadership to their goal of delivering fact- based guidance to retailer and industry vendor organizations wanting to optimize their IT investments and market performance.
Parker, Robert
Group Vice President, Industry Insights
Ortis, Ivano
EMEA Research Director, Global Retail Insights
Hand, Leslie
Research Director, Global Retail Insights
Ellis, Simon D.
Practice Director, Global Retail Insights
Gilliam, Ashley E.
Director of Consulting
Witty, Mike
Vice President, Consulting, Industry Insights
© Global Retail Insights, an IDC company Page 42
Key Research Pillars
Fact-based Un-biased
ICT/Retail Industryexperience
Retailers-centric
© Global Retail Insights, an IDC company Page 43
Why is GRI different?
History, Credibility and Global Infrastructure of IDC. GRI represents the new retail-focused practice underpinned by the depth and breadth of IDC’s 40 years of market research experience. IDC today conducts deep, worldwide and enterprise-wide technology research that GRI’s own team of analysts can leverage and verticalize for retailers and retail vendors.
Merchant-centric thought leadership. If changing the game in retail operations were entirely a technology problem – it would have been solved long ago. Our goal is to orient our strategic advice on retail technology and how best it can become an empowerment platform for skeptical merchants. We’ll assess new planning systems, new forecasting systems, and new customer touch points from a line-of-business perspective and outline proven best practices that show how to properly blend technology and process change.
Structured consulting and custom research. While our worldwide market research will include details on industry spending patterns and retailer priorities, GRI will have the ability to specifically orient the quantitative data to meet vendor needs and to conduct best practice and strategic planning sessions oriented to specific retailers and specific segments.
© Global Retail Insights, an IDC company Page 44
Global Retail Insights Client Engagement Model
Key Engagement Milestones• Orientation Presentation• Follow on call/meeting:Discuss detailed review of client’s initiatives and business goalsQuarterly/Monthly Teleconferences:
With key contacts to ensure expectations are being met• Ongoing: Unlimited Inquiry• Year-end: Performance Scorecard
Ongoing Decision SupportProactive Interaction
Monthly Activity Update
Review client initiatives & objectives for services
Q2: QuarterlyReview
Q3: QuarterlyReview
Q4:QuarterlyReview
Kickoff Meeting/Orientation
Year-endperformance
scorecard
Renewal
Q2: QuarterlyCommunication
event
Q3: QuarterlyCommunication
event
Q2: Quarterlycommunication
event
© Global Retail Insights, an IDC company Page 45
GRI Research Focus
Expanded use of demand & consumer intelligence in retail
On the road to next generation shopping– How will consumers expectations evolve going forward? – Which technologies will positively transform the shopping experience?– What’s next for eCommerce and eMarketing strategies?
Changing interaction between traditional merchants and advanced software applications
Orchestrating global supply chain visibility
Cross-channel retail transparency
Critical role of enterprise integration technologies like Service-Oriented Architecture in implementing new retail application workflows
Rapidly changing retail market landscape in emerging countries, including China and India as well as emerging regions like Latin America and Central and Eastern Europe
The call for real-time retailing – the expanding role of network service providers, network equipment manufactures, mobile solutions providers
© Global Retail Insights, an IDC company Page 46
GRI Custom Research Approach
The GRI custom research approach combines primary research with industry and business process insight.
Retail Industry & Business Process Insight
Prim
ary Re
search
Strategic Benchmarking for Lines of
Business
IT Benchmarking for IT
Management
Market Assessments for Sales and
Marketing
Strategy Development for Lines of
Business
© Global Retail Insights, an IDC company Page 47
Engagement Models
GRI Custom Research Strategy
Market SizingGTM
ServicesSales & Marketing
Enablement
Business & ITAlignment
ITBenchmarking
Vend
or F
ocus
Reta
iler
Focu
s
StrategicBenchmarking
As part of our custom research offering, GRI works with clients to deliver a range of strategic advisory services.
StrategicPlanning
Strategic
Planning
© Global Retail Insights, an IDC company Page 48
Retail Store, Channel and Consumer Strategies
To support business and technology decisions that directly impact retail consumers, the Global Retail Insights’ Retail Store, Channel, and Consumer Strategies service tracks and analyzes important trends in store systems, e-commerce capabilities, and consumer adoption of these technologies.
In the scope of this service are critical technologies such as POS hardware and software, labor management, self-service systems, guided selling, mobile store technologies, advanced consumer payment modes, and e-commerce platforms.
The service provides specific insight into shopper’s reaction and adoption to the new spectrum of consumer selling technologies being deployed in retail.
Lead Analyst: Ivano Ortis
© Global Retail Insights, an IDC company Page 49
GRI Research Services (cont..)
Retail Supply Chain, Demand Planning, and Merchandising Strategy (Lead Analyst: Leslie Hand)– critical IT and process components of the retail supply chain,
including global sourcing, product lifecycle management for private label merchandise, logistics systems (warehouse and transportation) as well as RFID, replenishment and allocation planning. Also reviewed are merchandising capabilities such as assortment planning, category management, pricing and promotion, markdown planning, and perishables management. Specific coverage is given to demand intelligence technology and its role in providing analytics and predictive insight that will drive all elements of retail planning.
Retail IT Infrastructure Strategy (Lead Analyst: Bob Parker)– provides market analysis and intelligence on retailer actions
toward architectural and platform-oriented technology and process investments.
© Global Retail Insights, an IDC company Page 50
European IT Opportunity: Retail and Wholesale
Global Retail Insights' European IT Opportunity: Retail and Wholesale advisory service provides insights into the European distribution sector, with a specific focus on retail and wholesale markets and ICT strategies applied to improve retail supply chain and demand planning efficiencies, store operations management, cross-channel sales, and business performance management at a corporate level.
Our analysis includes estimates on ICT spending in the sector based on primary end-user research, competitive assessments of ICT vendorstargeting retail and wholesale, and continuous monitoring of the marketaimed at identifying key industry business trends and ICT investment directions.
Lead Analyst: Ivano Ortis
© Global Retail Insights, an IDC company Page 51
Project Spotlight: Retail and Online Commerce Strategy Planning
© Global Retail Insights, an IDC company Page 52
Sample Output: Consumers & Online Channels
Concernant vos achats non alimentaires par rapport à l’année dernière est ce que…
0% 20% 40% 60% 80% 100%
Vous comparez les prix entre ceux pratiquésdans les points de vente physique et ceux
pratiqués sur Internet
Vous tenez compte des engagements relatifs audéveloppement durable lorsque vous achetez
un produit
Vous êtes exigeant sur la qualité des produits
Vous comparez les prix entre les marques dansle magasin ou entre les enseignes
(% of respondents)Plus Autant Moins NSP
0% 10% 20% 30% 40% 50% 60% 70% 80%
NSP
Kiosque / cornerAutre (Préciser)
Ecrans
Courrierpersonnalisé
Site Webcommunautaire
Magazine oubrochure journalière/
Vendeur en magasin
Les informations enmagasins (
Prospectus dans laboite à lettre
Site de l'enseigne
Forum Internet
Comparateur de prixsur Internet
Site Internet de lamarque
(% of respondents)
Pour un achat de type non alimentaire pouvez vous m’indiquer parmi les propositions suivantes les sources d’information que vous utilisez pour vous renseigner sur un produit ou une marque ?
Source: Global Retail Insights France Consumer Survey,October 2008, 1000 respondents, Actual Results
© Global Retail Insights, an IDC company Page 53
Targets
Sample Output: Decision Map: Online Service
Online ServiceStrategy?
No
Yes
StrategicOption #4
StrategyScope?
Products Segments Countries
MarketApproach?
Organizational Plan
Political Plan
GTM Execution Plan
Option #1 – Status Quo
Option #2 – Targeted, Organic Investment
Option #3 – Aggressive Growth by Acquisition and/or Proactive Market Penetration
Option #4 – Divest &Partner
StrategicOption #1
StrategicOption #2
StrategicOption #3
© Global Retail Insights, an IDC company Page 54
Sample Output: Potential Online Service Economics
Different Retailer Business Models Create Varying eCommerce Infrastructure TCO Impacts
© Global Retail Insights, an IDC company Page 55
Project Spotlight: IT Benchmark
This IT benchmark study profiled 7 global firms, and quantified IT spend in 4 investment areas (new development, infrastructure, etc.) across 5 functional areas.
1.0%
1.2%
1.4%
1.6%
1.8%
2.0%
2.2%
2.4%
2.6%
2.8%
3.0%
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
(esti
mate)
Company A
Company B
Company D
Company E
Company F
Company G
Company H
Worldwide IT Spending 1997-2007: Total IT Spend as a % of Revenue
NOTE: All numbers have been modified to be illustrative
© Global Retail Insights, an IDC company Page 56
Project Spotlight: IT Benchmark
The IT investment areas defined for this study were New Application Development and Deployment (NADD), Infrastructure, Operations, and Sustenance.
2007 IT Spending by Investment Area
* New Application Development and Deployment
Co. A Co. B Co. C Co. D Co. E Co. F Co. G
12744
639
385
234
768
528
1,585
355
784
1,189
466
228
727
518371
305
703
411
808
546
1038
143
476
193
465422
113
$0
$500
$1,000
$1,500
($M
illio
ns)
NADD
Infrastructure
Operations
Sustain
*
NOTE: All numbers have been modified to be illustrative
© Global Retail Insights, an IDC company Page 57
22% 21% 21% 24% 23% 22% 21%
21%17% 15%
18% 20% 19% 21%
21%23% 25%
20% 20% 26% 19%
22%19% 22%
26% 24% 15% 26%
14%20% 17% 12% 13%
18%13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Co. A Co. B Co. C Co. D Co. E Co. F Co. G
% o
f Tot
al N
AD
D S
pend
Supply Chain Multichannel Merchandising Store Operations Back Office
Project Spotlight: IT Benchmark
New Application Development and Deployment was then broken down by functional area for each retailer.
2007 NADD* Spending by Functional Area
* New Application Development and Deployment
NOTE: All numbers have been modified to be illustrative
© Global Retail Insights, an IDC company Page 58
Project Spotlight: Harrods SAP ROI Analysis
1. An IDC-Global Retail Insights ROI Calculator’Spreadsheet (in MS Excel format) including:
– Principal benchmark values, value results, value reports, and other ROI key figures;
2. An IDC-Global Retail Insights Retail IT ROI Best Practice Report (8-16 pages in MS Word format) including:
- Executive summary,
- Challenges
- Implementation
- Business Benefits
- Lessons learned
- Future plans;
- Summary of financial results
Note: All data and descriptions on these slides have been modified to protect client confidentiality. For illustrative purposes only.
© Global Retail Insights, an IDC company Page 59
Project Spotlight: Quote-to-Cash Process Benchmark
CLIENTHigh-Tech PeersBusiness PartnersOther Mnfr
Best- in- Class
Very Easy
Very Difficult
Worst- in-Class
2 3 4
Little Effort
Significant Effort
2 3 4
2 3 4Overall Customer Experience
Usability
Effort Required
Estimate Lead Times Rating SummaryBest-in-Class Gap Negative
GapPositive Gap
-10 -5 0Rank 1 of 7
Lead Time Definition Match
Confidence Level in Lead Time
Method Used to Estimate Lead Times
Yes 69%No 31%
Not Reliable
Extremely Reliable
2 3 4Reliability of Lead Times
Confident 47%
Do not pay attention 6%
Uncertain 47%
Online 69%Email/ Phone 31%
59
Note: All data and descriptions on these slides have been modified to protect client confidentiality. For illustrative purposes only.
The client’s relative performance for the Estimate Lead Times step in the Quote-to-Cash process is summarized below.
© Global Retail Insights, an IDC company Page 60
Sample Output: Best-in-Class ComparisonEstimate Lead Times is the number one area for improvement with a Cumulative Best-in-Class Gap* Value of -10.25 while Configure Product is the area where the client excels compared to peers.
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Cumulative Best-in-Class Gap by Interaction
3.80
(0.00)
(2.20)
(2.80)
(4.32)
(7.40)
(10.25)
(12.00) (10.00) (8.00) (6.00) (4.00) (2.00) 0.00 2.00 4.00 6.00
Configure Product
Check Order Status
Check Pricing
Place Order
Track Shipment
Change/ Cancel Order
Estimate Lead Times
Inte
ract
ion
Cumulative Best-in-Class Gap Value
Note: All data and descriptions on these slides have been modified to protect client confidentiality. For illustrative purposes only.
© Global Retail Insights, an IDC company Page 61
Questions?
Ivano OrtisEMEA Research [email protected]+39 02 28457344