1. Retail at Hyperspeed
Ray Major
Retail World Conference + Tradeshow
13th-14th May 2013
Melbourne, Australia
How the Internet of Everything is
permanently changing consumer behavior in
turning the retail world upside down.
Adapt or Die
2.
3. Long wave Economic Cycles
Railway, Steel
1830-1880
Electrification
1880-1930
Automobiles
Petrol
1930-1970
Tech
Info. / Comm
1970-2010 Bio/nano
tech
2010- 20xx
Impact on Retail:
• Gen. -> Dept. Store
• Mass Distribution
• Catalogs
Impact on Retail:
• National Brands
• Chain Stores
• Lights
• Refrigeration
Impact on Retail:
• Supermarkets
• Shopping Centers
• Indoor Mall
Impact on Retail:
• Scanners
• Analytics
• Category Killers
• Internet redefines
retail
• 70% on-liners
make purchase
4. Confluence of Technology • 2005 – Big Data
• 2006 – Mass text
• 2010 – HTML 5
• 2010 – iPad
• 2012 --Internet of
Things
• 2015-- Internet of
Everything
5. The Road Ahead –
Technology Convergence and the impact
on Retail
Memory and Space
Wi-Fi and Network
Mobile Access
Database Technology
Internet
6. Today’s Priorities
84% of mobile users keep
their device within 10 feet
at all times.
“Phones” move from discrete solution to an assumed
part of daily life.
Stops being a technology --
becomes “embedded”
“assumed”
and “integrated”
7. 99% of the physical world is
not connected to the internet
The internet of
EVERYTHING
The Internet of Everything
connects the Physical World
to the Internet
Using Microsensors,
everyday objects become
connected and intelligent
Decisions happen in
real time and in the
background
8. 0
10
20
30
40
50
2002 2007 2012 2017
The Internet of Things
50,000,000,000
things connected by
2020
More connected
devices
than people on
earth
9. Big Data
o By 2015
o 1 Zettabyte of data will
flow over the internet
o By 2020
o Data Production up 44
fold
o B2B and B2C internet
transactions = 450
billion per day
Earth
Pluto
Stack of books
20 times
10. “Real-time” becomes
“Real-time”
o There are more mobile devices than
people on earth
o By 2016 –
o Mobile Speed increases 9 fold
o Mobile Traffic increases 18 fold
o Home Network speeds increase 20 fold
o video calling increases 25 fold
o By 2020, anyone can broadcast
anywhere, to anybody – on any device.
11. The real value lies in the connection of
People, Processes, data and things.
A&M market
needs fresh-
fish
I need
another pair
of shoes
They’ll be
home any
minute with
fish, light the
Barbie
The service
technician is
on his way
Lower the
prices on
carrots, we
have too many
13. • Missed or unidentified sales opportunities
• Inefficient geographic selling
• Inflexible product lines
• Lost sales due to shifting competitive pressures and poor
timing
• Little holistic assessment of a customers wants and needs
Today’s Retailing Challenges
Today - 2013
24. Cluster Analysis
Simulation Modeling
Regression Analysis
Descriptive Statistics
Prescriptive
(what actions
should be
taken)
Prediction
(What might
happen)
Forecasting
(What might
happen)
Monitoring
(what’s
happening
now)
Analysis
(why did it
happen)
Analytic Continuum
High
Low
Complexity
Business Value
Reporting
(what
happened)
Behavioral Questions
“Who are my best customers?
Where do they live?
What is their most likely next purchase?
Quantity Questions
How much inventory do we need to carry?
What stock levels will be left at the EOM?
What will Sales finish at this year?
Optimal Outcome Questions
(potential outcomes based on complex interactions)
How can we achieve the best outcome?
What is the impact of a cold winter on our business?
30. New Retailing - Big Data and
Personalization
• Bridge between online
and Brick-and mortar
• SEAMLESS
SHOPPING
EXPERIENCE
• Personalization
• Recognize who you are
• Personalized promotional offer
• Knows your favorite fit and size
• Match transaction to buying patterns
• Issue incentive
34. • Missed or unidentified sales
opportunities
• Inefficient geographic selling
• Inflexible product lines
• Lost sales due to shifting
competitive pressures and poor
timing
• Little holistic assessment of a
customers wants and needs
• Increased sales from real-time
market assessments and reactions
• Increased selling from location-
based selling
• Increased sales from better use of
internet driven segments
• Increased sales by directly tying
pricing to current selling situations
to customer ability to pay
• Increased sales from improved
coordination with other products
and services
Potential of the Internet of
Everything
Today - 2013 Tomorrow - 2023
35. Retail at Hyperspeed
Ray Major
Retail World Conference + Tradeshow
13th-14th May 2013
Melbourne, Australia
Thank You !
Notas del editor
*Build slide – 5 clicksNew silos and sources come inArrows come inPeople and arrows come inCommunication comes inCommunication Breakdown – drive me insane.
*Build slide – 5 clicksNew silos and sources come inArrows come inPeople and arrows come inCommunication comes inCommunication Breakdown – drive me insane.