The Impact of Modern Identity Management Systems on Retail Industry

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Retail Industry Impact of Identity Management Middle East Retail Forum: Reinventing retail growth in the Middle East 28 – 29 October 2013 | JW Marriot Marquis Hotel | Dubai | UAE.

Presented by Dr. Ali M. Al-Khouri


• Introduction

• Changing Face of Retailing

• Identity Theft

• Modern Identity Management Infrastructure

• Concluding Remarks

Agenda


Agenda • Introduction


• Identity Theft




Introduction

• World is metamorphosing!

• New economies.. All industries impacted..

• Retail industry is in the throes of out growing the conventional merchandising ..

• Paradigm shift in consumer behavior from an analogue to digital has not only affected the mode of sale, but also the marketing modes, and all dimensions around it..


• Immense impact of digitalisation

• Human paradox: more time with own selves.

• Internet and Mobility: reclusive while being omni-present on social networks.

The Retail and Marketing Transformation

Marketing


Where are my Customers? The Market Place is Crowded

The customer is every where.. It is now how to find him? Value perception ? Is changing.. No longer in a store, or a mall! National Economy Gratification: Needs fulfillment and managing customer journey experience, navigation, help, website browsing.. Etc.. It is not like wearing a shoe, and looking for size!


The Retail and Marketing Transformation The nature of technological developments is disruptive

Retailing




• Identity Theft




Who are my Customers ?

Behavioural patterns

Big data..

Electronic trail that is available ..

Potentially the entire 7.1 Billion population on the earth constitute the customer base.

Studies: more retailers are going global to capture a larger share of the $1.4 trillion e-commerce market.


Who are my Customers ?

Behavioural patterns

Big data..

Electronic trail that is available ..


Identify my Customer ? Big Data technologies:

The next frontier for innovation, competition, and productivity, but?


DNA of Your Customer Experience?

Identity management Need to Knowing

customers

Attracting and Retaining Customers

customers are driven by a set of emotional values..

Colin Shaw


Hierarchy of Emotional Values Pyramid of 4 clusters.. Relationship building


customers

Source: Colin Shaw: The DNA of Customer Experience: How Emotions Drive Value


Hierarchy of Emotional Values Pyramid of 4 clusters.. Relationship building


customers

Source: Colin Shaw: The DNA of Customer Experience: How Emotions Drive Value

Retailers need to know the customer

more closely

and more personally


Do you know your Customer ? Boston Retail Partners Survey 2012

32% North

American retailers remain

unable to identify

their customers




• Identity Theft




Risks of Identity Theft

Identity fraud in US retail industry

POS: credit cards,

goods returned, etc Online: number 2..

not knowing customers enough is fraught with risks and prone to frauds

Online-channel frauds cost merchants $3.10 for each dollar of fraud losses

Identity fraud rises for 2nd consecutive year - Overall identity fraud incidence rate and total fraud amount by year


Data Breach Multifaceted Threat to Retailers ..

Shocking number.. Pushing things under the carpet.

Poor security

Data is being breached Using some data to conduct

transactions

with 1 in 4 data breach victims suffering identity

fraud in 2012.

Increase in Fraud rate among data breach victims outpaces increase in overall fraud rate


Tablet ad Smart Devices Security Most susceptible to fraud

Tablet Owners more than 80% more likely than all other consumers to become fraud victims - Fraud incidence by ownership of Tech Products


Chip-N-Pin and Remote Payment Fraud a crime on the rise in 2013

Agreement if I contained the fraud..

We may have an increase the sale ..

Channels of where

the fraud has accrued.

authentication at the POS will help merchants avoid the charge-backs and fees to financial institutions

help to curtail the not-inconsequential 18% of fraud losses resulting from this fraud

type.

% of fraudulent transactions attributable to channels among merchants accepting specific channels


Merchants Community General acceptability of fraud, and little done to mitigate it!

General acceptability of fraud.. Little been done to mitigate it

Loosing opportunity

Inevitablity acceptance: input to defining risk appetite Loss of opportunity:

largest sector to loose heavily: small and medium establishments

Attitudes toward fraud by large e-Commerce, and Merchants


Challenges in containing POS and Remote Fraud? Need of fast Checkout at Retail ..

Top challenges in controlling international fraud in 2012 & 2013




• Identity Theft




UAE National ID for Verification of Customer ID

The need for a mechanism to ascertain the

identity


UAE Identity Management Infrastructure Advanced Authentication Capabilities

On-Site and Remote secure and trusted transactions.


UAE Identity Management Infrastructure Advanced Authentication Capabilities

accorded all Identity Based Services

match-on-card and match-off-card features & it facilitates Validation, Verification and

Authentication of an Identity.


UAE eTrust Centre: Validation Services


Online Validation


What does this translate into?

Out of band: what every we use outside the

transaction, it is considered out of bank..

Transaction channel and

authentication channel are totally different.. OTP is out of band..

National Validation Gateway ensures that not only are Identification processes made seamless, enhancing service delivery, but also

vastly improve business processes leading to strong bottom lines.

unique identification capabilities, enables retailers


Identity Management Infrastructure Potential Benefits to UAE Economy


Supporting Mobility Smart Devices Usage The upcoming features of the UAE ID Card




• Identity Theft




Need to Change the Mental Map of how

Business should be Performed!


Dimensions of eBusiness Performance


Digital Economy: Critical Considerations

To capitalise on the growing digital economy, we need to consider:


Conclusion Identity Management is main vehicle for building sustainable economies


UAE Validation Gateway: Your opportunity to explore http://vg.emiratesid.ae


Thank you Dr. Ali M. Al-Khouri

Director General | Emirates Identity Authority | UAE www.emiratesid.ae | [email protected] |

Read our recent research from: http://www.emiratesid.gov.ae/ar/media-center/publications.aspx

@DrAliAlKhouri

The Impact of Modern Identity Management Systems on Retail Industry

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