a. kalašinskas it akadeemia

NCR SelfServ ™ Checkout Partner

Managing your checkout zone:Evaluating different technologies in the market and maximizing

productivity

Andrius KalašinskasStore Business Consultant, New Vision Inco

November 16th 2011 Tallinn


• Introduction• Checkout zone management: today’s challenges• Evaluating of technological solutions • Store capacity modeling: what it is?• Summary

Agenda


Established in 1993Provides technologies, system integrations and services exclusive for retail industry24/7 basis service network with multilanguage helpdesk190+ employeesRevenue 9 mln EUR 2010 (11 mln EUR 2008)

New Vision

New Vision Inco as a joint venture founded in 2010 between:

Alessandro Santalucia

• 20 years experience in NCR Corporation at various top management positions, recently Europe Channel Sales AVP

• Driven many of most successful Self-checkout projects in Europe


Reference clients of New Vision

New Vision is #1 in Retail IT and #12 among Baltic IT&T companies

http://www.mcdonalds.com/home.html


• 100% dedicated for self-service in retail • Strategic partnership with NCR in Finland, Russia and Baltics • Local consulting and technical resources• Integration and development in Vilnius• Office locations

– Finland: Hyvinkää– Russia: St. Petersburg– Estonia: Tallinn– Latvia: Riga– Lithuania: Vilnius

• Part of New Vision group

Quick facts

New Vision Inco - overview


Product portfolio

New Vision Inco - overview

TechnologyTechnology

- NCR SelfServ checkout- Datalogic Self scanning

ConsultingConsulting

- Self service Strategy- Impact qualification- Impact realization

ServicesServices

- Technical design- Integration- Prototyping- Installation in stores- Customer services


3,000+ Locations110 Countries – NCR Direct 90 Countries – Distributors & Service Partners

13,000+ NCR Services People78,000+ Repair Parts SKU’s Managed712 Field Parts Stocking Locations

126 years of retail technology innovation40 years of global self-service leadership

NCR Corporation

Strategic partnership with NCR in Finland, Russia and Baltics

More than $400 billion in annual commerce and 23 billion consumer self-service transactions are processed globally using NCR products and services

NYSE: NCR

Number of Employees: 22,400

Revenue:$4.6 billion

At a Glance


• A business transformational project• Ensuring that project meets or exceeds business results expected

(utilization, customer satisfaction, ROI, …)• Methodologies and tools • Cross-Europe Industry best practice• Digital Pilot

Store observationsStore capacity modelingBusiness impact evaluation

• Implementation: make it work

Consulting part

Delivering focused practical experience

Getting maximum from the Investment

Margin

Revenue

Cost


Self-service project - a business transformational projectImplementation: make it workGetting maximum from the AssetNCR Methodologies and tools Cross-Europe Industry best practice

Consulting part

Delivering focused practical experience

Ensuring that project meets or exceeds business results expected (utilization, customer satisfaction, ROI, …)

Margin

Revenue

Cost


Checkout zone - Point of Costs in the store

• InfrastructurePOS hardware SoftwareScalesMountingCheckout deskOther infrastructure

~8000 EUR

• Running annual maintenance• Shrinkage• Valuable store space• Administration• Labour cost

~56000 EUR

7 tills supermarket


Troubles finding personnel to handle checkouts

Checkout labor challenge in Baltics

Focus on productivity and automation of simple tasks is a way to successfully meet the challenge and even increase customer service in the same time.

• Second wave of emigration– 2010 highest emigration during recent years– In 2010 almost 90 000 people in Lithuania alone – Part of people prefer minimal income from government– Working age population part is getting lower

In Vilnius alone biggest retail chains has shortage of around 300 store staff.

IQ Economist, November 5th 2011

• Cost of finding new cashier increases– People with no experience– High costs of trainings– Salaries expectations grows– Impacts on service levels in the stores– Some retailers increased salaries or wage structure

• Cashiers is the largest payroll position in the organization


Self Checkout

Good news that technology is here and mature

Market update

• NCR SelfServ Checkout continutes to growth

• 15%+ annual growth up to 2016 (Greg Buzek)• Approximately 35% of transactions are completed

using self-checkout in Europe

EMEA NCR SSCO Install Growth

02000400060008000

10000120001400016000180002000022000

2004

2005

2006

2007

2008

2009

2010

2011

YTD

StoresLanes


• In September TESCO announced massive NCR SelfServ checkout rollout in Eastern and Central Europe countries– More self checkouts in more stores

than any other supermarket in Poland

– First self-checkout arrival to Czech Republik, Slovakia and Hungary

Different approaches continues to be trialing and researched– Tunnel, transformational checkout,

Mobile phone self scanning, Internet and store shopping mix, …

Latest patterns

Adoption of self-service expands


Shall we do self-checkout?

Retailers Decision Dilemma

Lets Give it a TryMaybe better to buy

stores

Will customers use it? How many?

We don’t know the ROI

Which Stores?How Many?

Will it pay for itself?

What about shrinkage?There are different

technologies..

Retailers need objective and measurable way to evaluate alternatives, know business impacts to make a decision and maximize the results.


• Process that helps you determinate:– Optimum technology and number of units– Best Configuration(s)– Likely utilization– Likely labor impact– Best approach to trade-offs– Expected ROI(s)

• By Modeling stores using actual data :– Comparisons to extensive stores data base– Varying possible scenarios to avoid

ineffective solutions – Identify the scenarios most likely to

produce optimum results– Accurately Predicted Outcomes –

Benchmark for Managing

Digital Pilot

Owning business results of the IT investment from the beginning

Digital Pilot - Store observations- Store capacity modeling- Business impact evaluation


One way ot another?

Owning business results of the IT investment

See What

Happens

Pilot Store

Adjust the Pilot

Do A Few

More

?????? More

Iterations

The Other Way – the Hard Way

Digital Pilot

ValidationStore

FullRoll-Out

The “Digital pilot” Way – Faster, Easier, Better


• Tesco• Marks and Spencer• Sainsburies• Asda• Dansk Supermarkets• Spar Slovenia• IKI Lithuania

Some real life examples

It is all about the results.. for Business!

Learning from the experience in different retail self-service environments


What is value of Doing it Right from the First Time


• In contrast to a POS, Succesfull self-service project is a “business driven” project

• Mature proven technology is here to help meet market challenges

• Self checjout can positively impact productivity in a traditional lanes as welll

• Knowing what will be a success in a measurable figures and impact to operational and financial results eliminates costly erroros, enables effective management and maximizes benefits.

Summary

Thank you!

SelfServ ™ Checkout Partner

Contacts:

Andrius KalašinskasPhone +370 685 36 292Email [email protected]

www.nv-inco.com