SAP Hybris Award Write Up

2016 GlobaleCommerce Enterprise Software

Company of the Year Award

2016

BEST PRACTICES RESEARCH

© Frost & Sullivan 2016 2 “We Accelerate Growth”

Contents

Industry Challenges .............................................................................................. 3

Business Impact ................................................................................................... 6

Conclusion........................................................................................................... 7

Understanding Company of the Year ............................................................................. 8

Key Benchmarking Criteria .................................................................................... 9

Best Practice Award Analysis for SAP Hybris .................................................................. 9

Decision Support Scorecard ................................................................................... 9

Visionary Innovation & Performance ..................................................................... 10

Customer Impact ............................................................................................... 10

Decision Support Matrix ...................................................................................... 11

Research Methodology ........................................................................................ 12

About Frost & Sullivan .............................................................................................. 14



Background and Company Performance Industry Challenges

For well over a decade, eCommerce has been on a streak of buoyant growth. In 1999,

eCommerce accounted for less than 1% of retail sales in the United States. By early 2015,

this figure had risen to about 7%.1 This surge is a reflection of ubiquitous connectivity as

much as of increasing trust of consumers in online retailers. While online obviously still only

accounts for a fraction of the sales of bricks-and-mortar retail, there is no doubt that the

importance of eCommerce will continue to claim an ever increasing share of retail sales.2

It might be tempting to think online retail will increase in prominence simply at the expense

of traditional, offline retail. While the overall tendency is hard to deny, the reality is less

black and white. Even though eCommerce still has enormous potential to grow by replacing

offline sales, eCommerce has already become an indispensable part of retail customer

engagement. Retail customers are no longer just going either online or into stores to shop.

The customer journey is no longer a linear or otherwise predictable path. Shoppers

invariably investigate products, services and retailers online by checking other customers’

experiences on social media before purchasing online, on their mobile, on their tablet, or in-

store. However, while the role of the retail stores is being transformed, they are remaining

just a vital part of the customer journey and a cornerstone of brand experience. Amazon's

recent announcement to open (additional) physical stores is no less a testament to the

latter.3

Shoppers today are used to roaming in and out of channels, browsing on one device and

ordering from another, or ordering online and picking up in-store. Ongoing technological

progress in augmented reality, for example, can blur the boundaries between online and

offline as the online shopping experience can increasingly get enhanced with virtualized

elements from the offline world. Conversely, the information and multi-media richness of

online shopping is finding its way into the store through mobile devices and digital signage.

While creating fully immersive sensorial experiences will continue to be only possible in

physical shop environments, both physical and digital are indispensable parts of a holistic

customer experience.

Retailers need to be able to provide a seamless customer journey across touch points and

mobile, tablet, desktop and physical channels. ECommerce platforms play an essential role

in enabling retailers to respond to, and embrace, these trends. Important characteristics

of eCommerce platforms include multi-/omni-channel capabilities that bridge otherwise

frequently disjointed channels, the ability to integrate with native developments,

1 http://www.bloomberg.com/news/articles/2015-05-15/e-commerce-sales-are-surging, accessed on 01 Sep. 2016 2 Compare: https://www.frost.com/q296690090, accessed on 14 Sep. 2016 3 See, for example, http://www.theverge.com/2016/5/18/11699544/amazon-new-retail-locations-prime-bezos,

accessed on 14 Sep. 2016

http://www.bloomberg.com/news/articles/2015-05-15/e-commerce-sales-are-surging

https://www.frost.com/q296690090

http://www.theverge.com/2016/5/18/11699544/amazon-new-retail-locations-prime-bezos



scalability, content and experience management, and flexible licensing/pricing options.4

Visionary Scenarios through Mega Trends

The emergence of eCommerce and omni-channel capabilities fall squarely into what Frost &

Sullivan tracks as the Connectivity and Convergence Mega Trend; this is a key facilitator of

the retail sector’s endeavors to merge the physical, digital and virtual into one integrated

model. Moreover, the increasing convergence of offline and online retail is what Frost &

Sullivan’s Bricks and Clicks Mega Trend monitors and sees as set to become the norm.

Beyond the common topic of shoppers roaming in and out of traditional channels at will,

consumers are increasingly buying across national borders; they search and order from any

location, from any device and at any time. These forces of convergence bring a need for

congruence and consistency like never before to provide shoppers with a seamless journey

and convey a single, cohesive brand identity. The governing retail paradigm is evolving from

multichannel to omni-channel, with customers at the heart. Customers do not see channels;

they see brands. Retailers (and their solution providers) need to ensure they look at it the

same way.5 SAP Hybris has made great strides in ensuring the latest release of SAP Hybris

Commerce Suite enables its customers to capture and capitalize on these fundamental shifts

and its implications for the retail sector. This will be further demonstrated in subsequent

sections.

Addressing Unmet Needs

The importance of providing outstanding omni-channel customer experiences has become

one of the most prominent retail industry topics. Alexandre Aubry, CIO at SAP Hybris

customer Groupe Galeries Lafayette, once aptly captured the essence: “it’s not especially

visionary, we just listen to the customers and do what they want. And what the customer

wants today is to be able to buy from any channel, to interact with any channel, and to

still be able to be recognized as a Galeries Lafayette customer.”6

The journey of the retail sector towards becoming capable of offering genuinely seamless

omni-channel experiences will be long and laborious, though. Few retailers can pride

themselves to have advanced far.7 More than ever, the most recent SAP Hybris Commerce

Suite 6.0 makes the enablement of retailers’ multi-/omni-channel strategies front and

center. Important amendments in the most recent release include the integration of tools

for enterprise customer experience management and multi-/omni-channel promotions

capabilities. SAP Hybris aims to make it simple for retailers to create personalized

shopping experiences for each shopper as it provides the capability to integrate traditional

4 Compare: https://www.itcentralstation.com/categories/ecommerce-platforms#top_rated, accessed on 06 Sep.

2016 5 Compare: http://www.frost.com/q296797627, accessed on 14 Sep. 2016 6 http://hybris.com/medias/sys_master/root/he0/h47/8806819233822/Case-Study-Lafayette-EN.pdf, accessed

on 13 Sep. 2016 7 Compare: https://www.frost.com/q296690090, accessed on 14 Sep. 2016

https://www.itcentralstation.com/categories/ecommerce-platforms#top_rated

http://www.frost.com/q296797627

http://hybris.com/medias/sys_master/root/he0/h47/8806819233822/Case-Study-Lafayette-EN.pdf

https://www.frost.com/q296690090



physical touch points (such as POS and print) with digital touch points (such as desktops,

mobile devices, call centers and social media).

Design

Held in high esteem by retailers and industry observers, SAP Hybris Commerce

indisputably has its place amongst the best eCommerce platforms in the world. Key

functionalities of Hybris’ B2B and B2C commerce applications include multi-/omni-channel

capabilities, product content management8, order management, marketing conversion,

and merchandising.

SAP Hybris Commerce Suite provides a platform that has proven itself across multiple

verticals. It is particularly valued by companies that depend on scalability, flexibility and

require a high level of customization. Even though many customers still choose on-premise

implementations, the growth rate of customers adopting it as a private cloud deployment indicate that in the mid-term most prospects are adopting the cloud offerings of SAP Hybris.

Particularly notable in this context is SAP Hybris’ YaaS (‘Hybris-as-a-Service’) offering that

is being rolled out globally. This is a business process platform as a service offering which

the non-standard approach of delivering cloud-based enterprise software capabilities via a

flexible and modular microservices architectural approach. This allows partners and

customers the ability to extend the functionality of the commerce platform in the cloud.

Fast-changing consumer demand and a seamless service is expected by customers across all

communication channels – online or in-store. This puts pressure on businesses to adapt their e-

commerce platforms to this need. Developers can create new services and apps faster from scratch using

microservices available on the YaaS.io marketplace.

Implementation of Best Practices

SAP Hybris not only enables business-to-business (B2B) and business-to-consumer

companies (B2C) to up the ante in the way they engage with their customers. As a

comprehensive, unified data and transitional platform, it also allows companies to

substantially simplify their technology landscape.

Notable improvements in SAP Hybris Commerce Suite’s most recent release 6.0 include

simplified and more flexible promotion generation capabilities for business users that don’t

require involvement of IT, customer experience management, real-time optimization of

merchandising (‘contextual merchandising’) and improved tools for business users to

improve their experience at the back end as well. SAP Hybris has also redesigned its

content management system that now provides marketers with a unified tool for the

management of content across all channels. It enables marketers to easily generate

personalized sites and experiences. Beyond this shopper-facing element, SAP Hybris

Commerce has worked on improved validation capabilities and widgets that simplify and

8 Also widely referred to as Master Data Management or Product Information Management



speed up development of new tools and applications at the backend. Compared to earlier

versions, SAP Hybris Commerce Suite 6.0 also puts a greater emphasis on simple and

rapid deployment, as well as integration of the various components of the portfolio.

In customer experience, context is king. Organizations must realize that good customer

experiences depend on timing and customer journey cycles. All elements of the customer

experience must be context-aware and totally relevant. In other words, understanding the

context of a customer is the foundation for an effective engagement.9 SAP Hybris is

proposing a way for companies to embrace this new reality and the requirements that

come with it.

Business Impact

Customer Purchase Experience

SAP Hybris Commerce customers include retailers Auchan and Darty, telecommunications

operators 3, EE and Vodafone, construction material and equipment supplier Hilti and tyre

manufacturer Pirelli. David Dentry, senior general manager of customer experience at

Nikon noted in 2014 that “[a]s an early adopter and consumer-centric brand, we want to

take more control of our customers’ e-commerce experience … Partnering with [H]ybris,

an industry leader with expertise in both B2B and B2C e-commerce, enables us to keep

pace with market trends and easily tailor our site to meet customer expectations, which

ultimately drives sales and loyalty.”10

The previously-noted emphasis on accelerated deployment is echoed when SAP Hybris

advertises its solutions under the tagline: “Kick-start your commerce project in just a few

months through the [H]ybris Commerce Accelerator. Omni-channel solutions are pre-

configured for B2C and B2B, and for specific regions and industries.”11 Indeed, Alexander

Schrödel, Head of E-Business/E-Services at SAP Hybris Commerce customer REHAU Gruppe,

acknowledged “I have never experienced such a smooth go-live.”12

Customer Ownership Experience

SAP Hybris has succeeded in architecting an eCommerce platform for B2C and B2B that

brings enhanced integration of commerce with other front office cornerstones of customer

engagement including marketing, sales and billing. With release 6.0, SAP Hybris

Commerce Suite offers its customers the opportunity to transition from systems of record

to systems of engagement. What SAP sees as differentiating the portfolio is the

cohesiveness of the data management layer that links together all of the solution domains

and provides a consistent view of products, customers and orders (although the

9 Compare: http://www.frost.com/q295170541, accessed on 14 Sep. 2016 10 http://hybris.com/en/news-events/press-releases/140304-nikon,, accessed on 13 Sep. 2016 11 https://www.hybris.com/en/commerce 12 Freely translated from: http://www.sybit.de/referenzen/projekte/sap-hybris-commerce-rehau/, accessed on

14 Sep. 2016

http://www.frost.com/q295170541

http://hybris.com/en/news-events/press-releases/140304-nikon

https://www.hybris.com/en/commerce



applications / solution domains can be deployed on a stand-alone basis).

Customer testimonials have long spoken for themselves. For example, Alexandre Aubry,

CIO at Hybris client Groupe Galeries Lafayette, noted of Hybris that “It was the right

choice for the company, it was the right choice at the time, and it’s still the right choice.

The challenges ahead are to update the experience so we can get more out of the product

and create a visionary omni-channel experience for our customers.”13

Conclusion

Retail is at a crossroads where eCommerce, rather than bricks-and-mortar stores, is

setting customers’ expectations and shaping the customer experience. In a world where

most retail customer journeys already have a digital component, retailers depend on their

vendors to provide them with the capabilities to deliver coherent and cohesive experiences

across channels, devices, and locations. Held in high esteem by retailers and industry

observers, SAP Hybris Commerce indisputably has already had a place amongst the best

eCommerce platforms in the world. The most recent improvements in SAP Hybris

Commerce Suite 6.0 make the solution increasingly a ‘must’ on vendor selection short-

lists especially for the largest-scale and most demanding eCommerce platform

requirements. With its strong overall performance, SAP Hybris has earned Frost &

Sullivan’s 2016 Company of the Year award.

13 http://hybris.com/medias/sys_master/root/he0/h47/8806819233822/Case-Study-Lafayette-EN.pdf, accessed

on 14 Sep. 2016



Significance of Company of the Year To win the Company of the Year award (i.e., to be recognized as a leader not only in your

industry, but among your non-industry peers as well) requires a company to demonstrate

excellence in growth, innovation, and leadership. This kind of excellence typically

translates into superior performance in three key areas: demand generation, brand

development, and competitive positioning. These areas serve as the foundation of a

company’s future success and prepare it to deliver on the two criteria that define the

Company of the Year Award (Visionary Innovation & Performance and Customer Impact).

Understanding Company of the Year

As discussed above, driving demand, brand strength, and competitive differentiation all

play a critical role in delivering unique value to customers. This three-fold focus, however,

must ideally be complemented by an equally rigorous focus on visionary innovation to

enhance customer value and impact.



Key Benchmarking Criteria

For the Company of the Year Award, Frost & Sullivan analysts independently evaluated

two key factors—Visionary Innovation & Performance and Customer Impact—according to

the criteria identified below.

Visionary Innovation & Performance

Criterion 1: Addressing Unmet Needs

Criterion 2: Visionary Scenarios Through Mega Trends

Criterion 3: Design

Criterion 4: Implementation Best Practices

Criterion 5: Financial Performance

Customer Impact

Criterion 1: Price/Performance Value

Criterion 2: Customer Purchase Experience

Criterion 3: Customer Ownership Experience

Criterion 4: Customer Service Experience

Criterion 5: Brand Equity

Best Practice Award Analysis for SAP Hybris

Decision Support Scorecard

To support its evaluation of best practices across multiple business performance

categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool

allows our research and consulting teams to objectively analyze performance, according to

the key benchmarking criteria listed in the previous section, and to assign ratings on that

basis. The tool follows a 10-point scale that allows for nuances in performance evaluation;

ratings guidelines are illustrated below.

RATINGS GUIDELINES

The Decision Support Scorecard is organized by Visionary Innovation & Performance and

Customer Impact (i.e., the overarching categories for all 10 benchmarking criteria; the

definitions for each criteria are provided beneath the scorecard). The research team

confirms the veracity of this weighted scorecard through sensitivity analysis, which

confirms that small changes to the ratings for a specific criterion do not lead to a

significant change in the overall relative rankings of the companies.



The results of this analysis are shown below. To remain unbiased and to protect the

interests of all organizations reviewed, we have chosen to refer to the other key players

as Competitor 2 and Competitor 3.

DECISION SUPPORT SCORECARD FOR COMPANY OF THE YEAR AWARD

Measurement of 1–10 (1 = poor; 10 = excellent)

Company of the Year

Visionary

Innovation &

Performance

Customer

Impact Average Rating

SAP Hybris 9 9 9.0

Competitor 1 7 7 7.0

Competitor 2 8 7 7.5


Criterion 1: Addressing Unmet Needs

Requirement: Implementing a robust process to continuously unearth customers’ unmet

or under-served needs, and creating the products or solutions to address them effectively

Criterion 2: Visionary Scenarios Through Mega Trends

Requirement: Incorporating long-range, macro-level scenarios into the innovation

strategy, thereby enabling “first to market” growth opportunities solutions

Criterion 3: Design

Requirement: The product features an innovative design, enhancing both visual appeal

and ease of use

Criterion 4: Implementation of Best Practices

Requirement: Best-in-class strategy implementation characterized by processes, tools, or

activities that generate a consistent and repeatable level of success.

Criterion 5: Financial Performance

Requirement: Strong overall business performance in terms of revenues, revenue growth,

operating margin and other key financial metrics

Customer Impact

Criterion 1: Price/Performance Value

Requirement: Products or services offer the best value for the price, compared to similar

offerings in the market

Criterion 2: Customer Purchase Experience

Requirement: Customers feel like they are buying the most optimal solution that

addresses both their unique needs and their unique constraints



Criterion 3: Customer Ownership Experience

Requirement: Customers are proud to own the company’s product or service, and have a

positive experience throughout the life of the product or service

Criterion 4: Customer Service Experience

Requirement: Customer service is accessible, fast, stress-free, and of high quality

Criterion 5: Brand Equity

Requirement: Customers have a positive view of the brand and exhibit high brand loyalty

Decision Support Matrix

Once all companies have been evaluated according to the Decision Support Scorecard,

analysts can then position the candidates on the matrix shown below, enabling them to

visualize which companies are truly breakthrough and which ones are not yet operating at

best-in-class levels.

DECISION SUPPORT MATRIX FOR PRODUCT LEADERSHIP AWARD

High

Low

Low High

Cu

sto

mer I

mp

act


SAP

Competitor 1

Competitor 2



The Intersection between 360-Degree Research and Best

Practices Awards

Research Methodology

Frost & Sullivan’s 360-degree research

methodology represents the analytical rigor of

our research process. It offers a 360-degree-

view of industry challenges, trends, and issues

by integrating all 7 of Frost & Sullivan's

research methodologies. Too often, companies

make important growth decisions based on a

narrow understanding of their environment,

leading to errors of both omission and

commission. Successful growth strategies are

founded on a thorough understanding of

market, technical, economic, financial,

customer, best practices, and demographic

analyses. The integration of these research

disciplines into the 360-degree research

methodology provides an evaluation platform

for benchmarking industry players and for

identifying those performing at best-in-class

levels.

360-DEGREE RESEARCH: SEEING ORDER IN

THE CHAOS



Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices

Frost & Sullivan Awards follow a 10-step process to evaluate award candidates and assess

their fit with select best practice criteria. The reputation and integrity of the Awards are

based on close adherence to this process.

STEP OBJECTIVE KEY ACTIVITIES OUTPUT

1 Monitor, target, and screen

Identify award recipient candidates from around the globe

Conduct in-depth industry research

Identify emerging sectors Scan multiple geographies

Pipeline of candidates who potentially meet all best-practice criteria

2 Perform 360-degree research

Perform comprehensive, 360-degree research on all candidates in the pipeline

Interview thought leaders and industry practitioners

Assess candidates’ fit with best-practice criteria

Rank all candidates

Matrix positioning all candidates’ performance relative to one another

3

Invite thought leadership in best practices

Perform in-depth examination of all candidates

Confirm best-practice criteria Examine eligibility of all

candidates Identify any information gaps

Detailed profiles of all ranked candidates

4

Initiate research director review

Conduct an unbiased evaluation of all candidate profiles

Brainstorm ranking options Invite multiple perspectives

on candidates’ performance Update candidate profiles

Final prioritization of all eligible candidates and companion best-practice positioning paper

5

Assemble panel of industry experts

Present findings to an expert panel of industry thought leaders

Share findings Strengthen cases for

candidate eligibility Prioritize candidates

Refined list of prioritized award candidates

6

Conduct global industry review

Build consensus on award candidates’ eligibility

Hold global team meeting to review all candidates

Pressure-test fit with criteria Confirm inclusion of all

eligible candidates

Final list of eligible award candidates, representing success stories worldwide

7 Perform quality check

Develop official award consideration materials

Perform final performance benchmarking activities

Write nominations Perform quality review

High-quality, accurate, and creative presentation of nominees’ successes

8

Reconnect with panel of industry experts

Finalize the selection of the best-practice award recipient

Review analysis with panel Build consensus Select winner

Decision on which company performs best against all best-practice criteria

9 Communicate recognition

Inform award recipient of award recognition

Present award to the CEO Inspire the organization for

continued success Celebrate the recipient’s

performance

Announcement of award and plan for how recipient can use the award to enhance the brand

10 Take strategic action

Upon licensing, company may share award news with stakeholders and customers

Coordinate media outreach Design a marketing plan Assess award’s role in future

strategic planning

Widespread awareness of recipient’s award status among investors, media personnel, and employees



About Frost & Sullivan

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and achieve best in class positions in growth, innovation and leadership. The company's

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