More Related Content Similar to Mobile presentation for retail connections slideshare (20) More from Lora Cecere (20) Mobile presentation for retail connections slideshare1. Retail Mobility
Convergence is NOW! It is REAL!
Are you READY?
Supply
Chain
Insights
2. BRICKS Book
Publishes
Matter
in August
2012
The Role of Supply Chains
in Building Market-Driven
Differentiation
LORA M. CECERE
CHARLES W. CHASE JR.
3. Agenda
Supply Chain Insights LLC Copyright © 2012, p. 3
4. Study Insights
1.6 Mobile Applications
35% A dedicated group to improving mobility
42% Struggle to get the right talent
1.3 Years working on a mobile strategy
! Convergence is the central theme
Supply Chain Insights LLC Copyright © 2012, p. 4
5. Struggle for Growth
2000-2004 2005-2009 2010-2012
eCommerce
15.7% 16.0% 26.6%
Retailer
Drug Retailer 14.8% 19.7% 9.5%
Grocery Retailer 12.2% 21.5% 19.6%
Mass Merchant 30.6% 9.6% 9.1%
Specialty Retailer 14.7% 12.2% 3.0%
Supply Chain Insights LLC Copyright © 2012, p. 5
6. Revenue Per Employee
Revenue per Employee
1200
Revenue per Employee (K$)
1000
800
600
400
200
0
1990- 1995- 2000-
2005 2006 2007 2008 2009 2010 2011 2012
1994 1999 2004
eCommerce 343 456 549 758 848 1016 998 1073
Grocery 198 182 425 479 475 520 612 611 572 518 504
Mass 112 144 253 348 379 617 487 474 533 464 348
Specialty 296 384 414 458 479 527 534 282 312
Source: Supply Chain Index Analysis from Annual Reports 1990-2012
Mean values utilized excluding outlier data
Supply Chain Insights LLC Copyright © 2012, p. 6
7. Bar codes were first used at Marsh Supermarket in 1968
Supply Chain Insights LLC Copyright © 2012, p. 7
8. For Suppliers
Weather Data Market-survey Data Contract Data
Retail Warehouse Withdrawal Data
Loyalty Data
Syndicated Data POS Data Panel Data
Enrichment Data
Social Data Distributor Data
T-Log Data
Ratings and Reviews
Coupon Redemption Web Click-through Data
Orders Shipments Returns
Supply Chain Insights LLC Copyright © 2012, p. 8
10. Revenue per Store - Specialty
12
10
Dick's Sporting Goods
9.2
Revenue per Store (million USD)
8
TJX
Gap
Toys R Us
6 Limited
Ross
Talbots
4 Abercrombie & Fitch
Footlocker
Dick's Sporting Goods
2
Footlocker
1.4
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Year
Source: Supply Chain Index Analysis from Annual Reports 2000-2010 Supply Chain Insights LLC Copyright © 2012, p. 10
11. Shifts
Power shifting to the shopper.
Amazon seizing “center store”.
Omnichannel expectations growing.
Supply chains moving from near real-time
to real-time data and from inside-out to
outside-in processes.
More and more costs are being pushed
backwards in the supply chain.
A time for disintermediation?
Supply Chain Insights LLC Copyright © 2012, p. 11
12. Starbucks: Did it RIGHT
The mobile card
program was tested in
2009, and found to be
the fastest way for
customers to pay. It’s
available at 9000
stores. Customers
purchase credit via
PayPal or credit card.
Supply Chain Insights LLC Copyright © 2012, p. 12
13. Lands End: Did it WRONG
Users must download all
catalog content, a
situation exacerbated
when relying on a carrier
network vs. wi-fi
Supply Chain Insights LLC Copyright © 2012, p. 13
14. Agenda
Supply Chain Insights LLC Copyright © 2012, p. 14
15. Digital Path to Purchase (#DP2P)
A look at transforming the four moments of truth to
improve the shopping experience through mobility:
• At Home: The list
• In the Store: The decision to buy
• Check-out: The transaction
• Usage: Post purchase
Supply Chain Insights LLC Copyright © 2012, p. 15
16. “Where’s My Bud” Viral Campaign
Campaign
Objectives:
Reduce Out of Stocks at
targeted retailers by 5%
Increase Shopper
satisfaction and brand
loyalty
Validation:
Identify a key leader or
market that wants to pilot.
50/50 shared risk in effort
and resources to pursue.
Keep costs to a minimum for
Concept: pilot, under $75K
Execute a viral campaign
focused on leveraging
shoppers to identify out of
stocks and potentially
pricing compliance issues
Leverage a combination of
consumer, internet, and in-
store technical capabilities
Supply Chain Insights LLC Copyright © 2012, p. 16
17. Retailer Experience
New text message to
612-961-7802:
A customer at Denny
and Doug’s Liquor
Emporium has just
snapped a tag. You’re
out of stock on Bud
Light.
Please contact your
wholesaler.
Supply Chain Insights LLC Copyright © 2012, p. 17
18. Here are some locations near you where you can
find Bud Light. Be sure to use this promotion code
to get your discount:
ABBL12456
Supply Chain Insights LLC Copyright © 2012, p. 18
19. Social Commerce: The use of
social technologies to improve
the path to purchase.
Supply Chain Insights LLC Copyright © 2012, p. 19
21. Losers in Social Commerce
• Extension of eCommerce
• When it is about YOU! Yelling and
Controlling the Message.
• Does Not Improve the Brand
Experience.
Supply Chain Insights LLC Copyright © 2012, p. 21
22. Techniques Vary by Product
Virtual
Currency
Reviews:
Building an Runway
Army of
Reviews:
Advocates
Experts
Degree of Gaming
Difficulty Storytelling
Open
Sourcing
Ask and
Answer Action
Buttons
Grocery Cosmetics Apparel Electronics
Supply Chain Insights LLC Copyright © 2012, p. 22
23. Hallmark Card Contests
Inside Copy:
Time to give your thumbs a break
and go eat some cake!
Supply Chain Insights LLC Copyright © 2012, p. 23
25. Winners: Giantnerd.com
You earn 10% back for every dollar you spend on regular priced items and 5% back for
every dollar you spend on discounted items. Use your points for free gear and clothing at
Giantnerd®.
How to become a Giant Nerd?
Using the ShareThis
Reviewing products Uploading photos
functionality
Writing and/or editing a
Asking and answering questions Joining groups
Wikinerdia post
Adding Topics Starting or Commenting on Discussions
Making Lists Sending Content to Friends and Family
Supply Chain Insights LLC Copyright © 2012, p. 25
26. Hallmark
Supply Chain Insights LLC Copyright © 2012, p. 26
28. Newell Rubbermaid
#Future15SB @bwdumars
Supply Chain Insights LLC Copyright © 2012, p. 28
29. Agenda
Supply Chain Insights LLC Copyright © 2012, p. 29
30. Study Overview
WHY WHAT
• OBJECTIVE: To understand the current state • Survey topics included:
of mobile in the retail extended supply chain. • Mobile strategy – presence and elements of
• HYPOTHESIS: The use of mobile in retail is strategy, barriers, use of IT systems
just beginning. • Mobile influence – personal & corporate
• New technology trends – importance to
company, current performance
• Company operations related to mobile & retail
WHEN & HOW WHO
• Online interviews were conducted between • 40 completed surveys
May 16 – June 18, 2012 • Work in the Retail industry
• Conducted in partnership (Specialty, Grocery, Mass, Convenience, Other)
with Retail Connections .
• Primary positions include CIO, IT, COO
Supply Chain Insights LLC Copyright © 2012, p. 30
35. IT Systems for Mobile Efforts:
Importance vs. Performance
Supply Chain Insights LLC Copyright © 2012, p. 35
36. Mobile & Social Presence
Supply Chain Insights LLC Copyright © 2012, p. 36
38. Agenda
Supply Chain Insights LLC Copyright © 2012, p. 38
39. Big Data will be the NEW
Foundation of the Future
Supply Chain
Supply Chain Insights LLC Copyright © 2012, p. 39
40. Big Data Plans & Expectations
Supply Chain Insights LLC Copyright © 2012, p. 40
41. Definition
Structured • Transactional
Challenges:
Data • Time phased data
• Social Volume
Unstructured • Channel
Data • Customer Service
• Warranty
• Temperature Velocity
Sensor • RFID
Data • QR codes
• GPS
Variability
New • Mapping and GPS
• Video
Data • Voice
Types • Digital Images
Supply Chain Insights LLC Copyright © 2012, p. 41
42. Big Data: What is it all About?
Downstream Data EDI Sentiment Text
Cold Chain Call
Analysis Analytics
Center Logs
eCommerce Social What-if Models Hadoop
Learning Systems
Geolocation Data Visualization
Ratings &
Reviews
RFID Facebook Scorecards Rules-Based
Photographs Map Reduce Ontology
Video
T-Log Data Twitter
R Forecasting
Weblogs Warranty Returns Digital Path To Constraint-
Information
Sensors Mobile Applications Purchase based Planning
Data Mining
Supply Chain Insights LLC Copyright © 2012, p. 42
43. Agenda
Supply Chain Insights LLC Copyright © 2012, p. 43
44. Wrap-up
• Mobile is not mobile for the sake of
mobile. It is about the delivery of an
improved shopping experience.
• Convergence is the stated goal, but we
are just at the starting line.
• Big data is needed to make convergence
work.
Supply Chain Insights LLC Copyright © 2012, p. 44
45. Bricks Matter
Supply Chain Insights LLC Copyright © 2012, p. 45
46. Who is Lora?
• Founder of Supply Chain Insights
• Partner at Altimeter Group (leader in open
research)
• 7 years of Management Experience leading
Analyst Teams at Gartner and AMR Research
• 8 years Experience in Marketing and Selling
Supply Chain Software at Descartes Systems
Group and Manugistics (now JDA)
• 15 Years Leading teams in Manufacturing and
Distribution operations for Clorox, Kraft/General
Foods, Nestle/Dreyers Grand Ice Cream and
Procter & Gamble.
Supply Chain Insights LLC Copyright © 2012, p. 46
47. Where do you find Lora?
Contact Information: loracecere@gmail.com
Blog: www.supplychainshaman.com
(3500 pageviews/month)
Twitter: lcecere 3100 followers. Rated as the
top rated supply chain social network user.
Linkedin: linkedin.com/pub/lora-
cecere/0/196/573 (2300 in the network)
Supply Chain Insights LLC Copyright © 2012, p. 47
Editor's Notes http://mashable.com/2011/03/23/starbucks-card-mobile-payments/http://mashable.com/2011/01/18/starbucks-mobile-payments/Starbucks Card Mobile [iTunes link] lets users add their Starbucks Cards, track rewards and reload cards as needed via PayPal or credit card. To pay with their phone, app users simply select “touch to pay” and hold up the barcode on their mobile device screen to the 2-D scanner at the register.Starbucks is using its own custom-built technology to enable the 2-D mobile barcode scans. The coffee retailer opted for barcode scanning over near field communication technology — which Google is exploring — because of its limited availability. The coffee retailer was reluctant to wait for a NFC ecosystem to develop when its customers have expressed interest in mobile payments now, according to Chuck Davidson, the category manager of innovation on the Starbucks Card team. “Once there are more users, we will adapt,” he says.In testing, Starbucks assessed the mobile payment option by measuring application speed, transaction speed and total customer wait time, says Brady Brewer, vice president of Starbucks Card and brand loyalty. In all instances, Starbucks Card Mobile was the fastest way for customers to pay.Starbucks is investing in mobile payments, an investment Davidson describes as modest in relation to expectations, because customers have requested the option and have shown a propensity to not only pay with Starbucks Cards — one in five transactions are made using a Starbucks Card — but frequently use their smartphones while waiting in line. Image source: Lands End Collections iOS application.Other examples, H&M iPad application.