CIO Summit Europe 2./3. December 2012, Lisbon

The CIO as Business Value

Creator – Examples from the

Retailer and Consumer World

Dr. Stefan Hesse

Supervisory Board GS1 UK

Retail Expert & Entrepreneur

The GS1 System

Global standards for electronic business messaging Rapid, efficient and accurate business data exchange

The environment for global data synchronisation Standardised, reliable data for effective business transactions

Global standards for automatic identification Rapid and accurate item, asset or location identification

Global standards for RFID-based identification More accurate, immediate and cost effective visibility of information

(Common, unique, global) Identification

Keys (e.g. product, location, assets) and Attribute data (e.g. best before date)

Dr. Stefan Hesse 2 CIO Summit EU – Lisbon 2./3. Dec. 2012

Over 25,000

members

From retail, food service, healthcare and

online industries

Sole traders, to SMEs to

multi-nationals

Our GS1 UK members

Dr. Stefan Hesse 3 CIO Summit EU – Lisbon 2./3. Dec. 2012

Cross Channel - Multiple Touch Points

Challenges and Opportunities! Dr. Stefan Hesse 4 CIO Summit EU – Lisbon 2./3. Dec. 2012

Retailer Websites are Leading Source of Puchase Information

Source: emarketer.com “Retailer Websites Are Leading Source of Purchase Information”, Aug, 29 th 2012

Dr. Stefan Hesse 5 CIO Summit EU – Lisbon 2./3. Dec. 2012

Digital Touch Points’ Growing Importance Shoppers' usage of digital retail tools has doubled or tripled in the previous 18-month period.

96% of the survey respondents said they have used at least one digital shopping tool, with the majority using multiple tools.

28% 28% 25%

12% 12% 10% 5% 5%

64% 61%

53%

36%

23% 28%

18% 16%

2010

2012 Use

Which of the following digital tools have you used when shopping or planning to shop this year?

Source: A Tectonic Shift in Shopping Behavior, Ryan Digital Retail Study 2012

Dr. Stefan Hesse 6 CIO Summit EU – Lisbon 2./3. Dec. 2012

What product could be

simpler than a loaf of bread?

But a loaf of bread is not

so simple: there are

over 40 data points

describing it here

Content Management is a huge Effort

Dr. Stefan Hesse 7 CIO Summit EU – Lisbon 2./3. Dec. 2012

Some GS1 Research about Product Data

• B2B: 80% average level of data

inconsistency –> inefficiencies in the

Supply Chain

• B2C: 375 products scanned with

third party mobile apps:

91% of products with incorrect

descriptions

75% products with no

information at all

Consumers do not buy if they do not get the

product information they expect.

Content is King!

Dr. Stefan Hesse 8 CIO Summit EU – Lisbon 2./3. Dec. 2012

Global Data Synchronisation Network (GDSN) and TrueSource – supporting our members’ cross-channel strategies

Value Creation – GS1 Data Standards

Dr. Stefan Hesse 9 CIO Summit EU – Lisbon 2./3. Dec. 2012

Growing interest in Digital Marketing, especially in Consumer Goods...

Share in %

Consumer Goods 15.8

Finance 15.8

Entertainment & Media 12.9

Retail 10.6

Travel & Transport 10.2

Technology 7.6

Motors 7.5

Business & Industrial 6.7

Telecoms 6.6

Government & Politics 3.5

Others 2.8

Source: mediaweek.co.uk “FMCG Firms help Push Digital Ad Spend to Record High of £2.6bn”

Dr. Stefan Hesse 10 CIO Summit EU – Lisbon 2./3. Dec. 2012

…Especially Web Content

Dr. Stefan Hesse 11 CIO Summit EU – Lisbon 2./3. Dec. 2012

Chief Marketing

Officers give

highest priority on

Web Content and

Activity within

Digital Marketing!

Value Creation – Monetization or “Copy the Amazon Model”

Retailer delivering Cross Channel Touch

Points

Brand delivering High Quality Digital

Content

= Improved Customer Experience

Retailer Brand Traffic Sales „Marketing Money“ o Profit

+

„Marketing Money“ goes directly to the Retailers

bottom line! Dr. Stefan Hesse 12 CIO Summit EU – Lisbon 2./3. Dec. 2012

Remaining challenge is fully automated Redemption

with Validity check, Condition check and Payment

trigger.

But first solutions are on the horizon!

Paper based Digital

Expensive and slow Print Digital

Expensive and slow Transport Digital

Weeks Speed of Issuance Real Time

Low Control of Redemption High

Slow Cash Circle Fast

Limited Traceabilty Full

Limited Targeting Time, Place, Person

Value Creation – Digital Coupons

Dr. Stefan Hesse 13 CIO Summit EU – Lisbon 2./3. Dec. 2012

Value Creation – …

…what are the opportunities for your company?

Dr. Stefan Hesse 14 CIO Summit EU – Lisbon 2./3. Dec. 2012