1. May 18, 2015 [OMNICHANNEL STRATEGIES 2015]
1 This research note is the sole copyright of Chandrakumar Natarajan|
Key Strategies for Delivering a Seamless
OmniChannel Experience
Published: 18 May 2015
Analyst(s): Chandrakumar Natarajan
Multinational Corporations(MNCs) in an increasingly Omnichannel
driven buying world need to take deliberate actions to embrace, adopt
and innovate Online and Offline Channels enabling Customer Buying
Behavior.
Key Findings
■ Understanding your customers through better Data Driven techniques is key to formulating the right
Omnichannel Strategies. In 2015, marketers have access to precision technologies in the form of Big
Data Lakes, Real time Analytics, Click Through Behavior modelling and Social Media Buying preferences.
■ Ongoing organizational Support to understanding and adopting evolving Online Channels is critical to
maintain competitive advantage. E.g. Pinterest has become a formidable Channel in targeting female
buying categories in fashion and lifestyle.
■ Newer Business models need to be piloted to support such Omnichannel initiatives than just a blind
adoption of technologies and metrics. MNC managers need to reorient channels towards Subscription
business models which are seeing a big uptake in categories like Food and Groceries.
■ Startup incubation or acceleration needs to be significantly adopted as an Innovation approach as it
reduces the time to develop, launch, continue or terminate newer Channels while minimizing upfront
investments and risks.
Recommendations for MNCs
■ Adopt a Portfolio Cluster approach while deciding on Channels to reach to current or potential
customers. This would improve complementarity across Channels leading to a significant impact.
■ Invest in Design thinking to relook at existing processes and systems than just blindly adopt new
channels
■ Reorient Managerial Decisions to Real time, Data Based, Scientific analyses than experience, gut
based by investing in Data Science technologies using Hadoop type platforms.

2. May 18, 2015 [OMNICHANNEL STRATEGIES 2015]
2 This research note is the sole copyright of Chandrakumar Natarajan|
Introduction
With Omnichannels becoming an all-pervasive force in business, MNCs need to implement Strategies
which position them for long term growth and provide flexibility to adopt newer channels for customers to
reach out while making buying decisions.
This research note provides insights into winning strategies, those which have been implemented or are
in the process of getting rolled-out with some initial success.
In particular, we focus on the business models they are using, the organizational and delivery models
they are adopting, and their go-to-market strategies. We analyze the chosen approaches along the
concept of Themes and provide recommendations for MNCs who have a clear mandate to go the
Omnichannel route.
For the purpose of this research, we have grouped the broad diversity of Omnichannels under these main
categories:
■ Social media — Twitter, Facebook, LinkedIn
■ Online – e-commerce and m-commerce modes
■ Multidevice – Apps ecosystem
■ Traditional — Physical Stores, Catalog, Mail Order, Vending machines
■ Legacy – Telephone, Chat
■ Disruptors – Video Buying, Inline Buying(Buy buttons in Search), 3D Printing
Themes - MNCs Adopt New approaches towards an Omnichannel future
Current thinking for Omnichannel revolves around pure adoption of channels as they arise along with key
consumption metrics. However, this is bound to create a Silo-ed approach with lesser meaningful impact
over the long term. ROI tends to become negative with too spread out investments across too many
technologies. The bigger problem is of Sprawl, whereby multiple approaches add to higher levels of
complexity and growing legacy of systems to maintain leading to spiraling costs. Building on the lessons
learnt, we suggest MNCs adopt a fresh thinking along the lines of Themes. Themes allow for better
Visibility and Transparency, management control on spend, flexibility as new channels emerge. MNC
decision makers can adopt one or more of Themes as appropriate to their market needs.
Complementarity
Given the proliferation of channels, MNCs would be well advised to select and adopt channels based on
complementarity of channels in aiding each other towards better business success. This strategy is
especially suitable when there are existing investments into channels and organizations need to leverage
them for better ROI.

3. May 18, 2015 [OMNICHANNEL STRATEGIES 2015]
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Research shows that Queueing in Stores results in more shopper dropouts and decreasing customer
perception on quality. With Metrics of less than 5 minutes for stores in UK, Queues tend to be a stubborn
problem in the physical world. Marrying the experience of the physical store and millisecond Response
times in the online world, successful organizations have developed Apps which allow for Shoppers to
arrive at the right times at the right counters, thus minimizing wait times.
Fail Fast
Organizations would do well to adopt the Fail Fast culture of Silicon Valley given the continued rise and
fall (think MySpace) of Channels. MNCs would be well advised to relook at channels across categories
listed above and not necessarily only online channels. Disruption tends to happen across the board –
Chat would well be replaced by Instant Messenger systems like WhatsApp. This is now extending to
Telephony as well with Free Voice calls. Pop-up Stores have become more Ubiquitous as opposed to a
decline in physical store openings.
Personalization – Market of One
Long the holy grail of marketers, Omnichannel initiatives enable organizations to deliver a highly
customized buying experience for their customers. Going a step further, such initiatives can also allow
customers to design and build their own products in the future. 3D Printing and Internet of Things are
technologies which can enable and provide mass customization at global level. Leading manufacturers
like GE are planning for such a future with a 2020 vision of such 3D Manufacturing and plan to bring
down costs as much by 20%.
Connect the Dots
Data based decision making is on the verge of a bigger comeback with Big data technologies. MNCs
would like Data Science capabilities hereto only available to Tech pioneers like Google and Uber. The
first step is to collect data emanating from an organization’s internal systems as well as unstructured data
from sources like Social Media. Thus an organizations presence in such channels becomes too important
to ignore in the job of listening to customers. Add to this upcoming technologies like Machine2Machine
which enable organizations to collect otherwise ignored data. A leading Airplane engine manufacturer
plans to collect data streaming from sensors in its engines to create new sophisticated warranty
programs.
Ecosystems, not partnerships
MNCs need to embrace ecosystems of vendors, partners, even customers and competitors to provide a
seamless experience. They can well learn from Startups who participate in the API economy and
interconnect their core products and systems greatly benefitting their customers. As MNCs invest in a
Software Defined Infrastructure, this greatly enhance their capabilities to connect directly into the Global
Supply and Demand chains, allowing new customers to discover their products and existing customers to
avoid manual processes. Payments is becoming a classic case of organizations allowing for automated,
fast processes and adopting disruptive technologies like Bitcoin.

4. May 18, 2015 [OMNICHANNEL STRATEGIES 2015]
4 This research note is the sole copyright of Chandrakumar Natarajan|
Table 1 presents a non-exhaustive list of the types of participants in Ecosystems globally.
Table 1. Global Players in Evolving Omnichannel Ecosystems
Summary of Other Key Findings
Digital services require different metrics and KPIs As would be evident by now, traditional
financial tools don’t fit well into the Omnichannel Themes listed in this research report. Furthermore, the
goals and KPIs for employees working in such an organization have to be different. For example, the
employees of Telefonica Digital are measured on KPIs such as customer acquisition, customer
engagement with a particular service, customer sentiment on social media relating to a particular service
and so on.
Omnichannel initiatives need support at the highest level of the organization, Bold
measures need time to grow and mature as also the financial wherewithal during times of failure. Senior
management needs to protect such initiatives from time tested processes and circumspect systems. They
also need to educate themselves on evolving business models like Subscription Services before turning
the heat on the rest of the organization.
New Omnichannel services enable MNCs to expand their horizons. MNCs can successfully
export concepts from key markets to their other markets including core markets. Amazon is exporting
concepts like Cash on Delivery which are successful in its India Market to its core US Market. MNCs also
seem to be choosing select markets as Test beds or Pilots over other markets for specific Channels.
Talent Acquistion and Management is vital in Omnichannel Universe Talent makes a big
comeback as a focus area for MNC Boards as Omnichannel Strategies require Talent across a wide
swath of Technologies, Logistics, Finance to implement. Traditional channels of in-house promotions and
Job Boards are a sure fire way to frustrate Gen Y talent and move them to your competition. HR
measures need to radically change to fit into employee aspirations and their ever widening knowledge on

5. May 18, 2015 [OMNICHANNEL STRATEGIES 2015]
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societal impact. Gender Stereotyping, Preference to Ivy League backgrounds, insensitivity to work life
balance aspirations are some HR practices which need to be curbed if an MNC aspires to Global Talent
capable of aligning to its own growth. Hackathons provide a pointer to how recruitment practices are fast
changing.
Evidence
The Analyst relied on primary research via discussions with key stakeholders and secondary research
available through Secondary Research Services.
All rights reserved. This publication may not be reproduced or distributed in any form without Chandrakumar’s prior written
permission. Pls contact him on nckumar@hotmail.com. The information contained in this publication has been obtained from
industry reliable sources. The Author disclaims all warranties as to the accuracy,completeness or adequacy of such information and
shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the Author’s opinions
and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. This
research should not be construed or used as legal advice or service.