make impactful real-time decisions with capgemini’s retail apps may 15, 2013 – orlando, fl
TRANSCRIPT
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps
May 15, 2013 – Orlando, FL
2Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
INTRODUCTIONS
Mike PriceCapgemini, North America
Practice Leader, SAP Business Analytics and Technology
e. [email protected]. +1 (770) 601 6471
Erik de VeerCapgemini, Global Sector Consumer Products & Retail
Global Leader, SAP Retail and Fashion Solutions
e. [email protected]. +31 6 1502 7845 @erikdeveer
3Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
AGENDA
Background and Introductions
Retail Business Challenges
What are Extreme Applications for Retail?
Examples:• Market Basket Analysis• Mark Down Management• Next Best Action, Targeted Promotions
Q&A
Retail Business Challenges
5Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
The challenge of combining customer demand, product availability, and margin…to remain competitive
6Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Mega Trends driving Transformation in the Retail Industry…
Increased Urbanization
Aging PopulationIncreasing
Spread of Wealth
Increased Impact of Consumer Technology
Adoption
Increase in Consumer Service Demands
Increased Importance of Health
and Wellbeing
Growing Consumer Concern about Sustainability
Shifting of Economic
Power
Scarcity of Natural
Resources
Increase in Regulatory Pressure
Rapid Adoption of Supply Chain
Technology Capabilities
Impact of Next-Generation Information
Technologies
7Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Marketing paves the way for IT
New customer behaviors require real-time insight
Retail is always on, 24/7
Social and mobile commerce are the new norm
Customers are ‘competitor savvy’ and other offers are just a
click away
Omni-channel requirementsand capabilities (i.e. click/collect)
Data growth and the combination of structured/unstructured data
New heartbeat in category management and merchandising
Personalized offers require dynamic promotions
Maintaining margin and profitability
Digital
BYOD
What are Extreme Applications for Retail?
9Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
General product overview
Real Time Sales Analysis / Extreme POS Analysis
Market Basket Analysis
Next Best ActionMarkdown
Management
Extreme Applications for Retail Powered by SAP HANA
10Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
How it all comes together: Extreme Applications module interactions
ArticlesMarginTimePOS
ArticlesPrices
InventoryTim/Season
POS
Articles in current basket/ loyalty ID of customer Mr. X
MARKET BASKET
ANALYSIS
MARKDOWNMGMT
NE
XT
BE
ST
AC
TIO
N
Next best promotion for customer Mr X
Next Best Article for
customer Mr X
EX
TR
EM
E P
OS
Buying patterns
Current and past sales trends
Article affinity
analysis
Forecasted stock end of
season
Promotion rules
Optimize combined sales and promotions to increase profitability
Improve markdown strategy to optimize stock and profitability
Improve sales, profitability, and customer loyalty
IN REAL TIME
11Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
High-level solution architecture
RetailXtreme
Apps
non-SAP systems
Social Media
Data ServicesNon-SAP data load
UsersPC, Mobile, Tablet
SAP systems
SLTSAP Replication
HANADatabase
SAP BI4BI, Reporting
HTML5Integration to websites
R on HANAStatistics
Sources
Loading
Database & Analytics
BI
Usage
Addresses both SAP and non SAP data sourcesNo constraints with SAP legacy systems: technical neutrality
12Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Extreme Retail Applications - Examples
13Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
As a merchandiser, I want to gain insight into
which products are often purchased
together and with which combined margin to help stores with up-selling and cross-
selling
Cross-selling and up-selling by placing products with high affinity together
Optimized promotion management
Affinity analysis based on POS data provides insight in which products are often sold together Margin and sales analysis support optimized promotion planning for associated products
… into actionable results
How to … … turn Terabytes of POS data …
Do you want to grow basket size and overall profitability by identifying products that drive drag-along sales?
Market Basket Analysis
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Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Example of Market Basket Analysis
Belts
437USA
West
01
05
2013
01
15Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
As a merchandiser I want to gain insight in which articles will have surplus stock at the end of the season given rates of sale at different prices
Markdowns are planned more efficiently and more profitable
Store inventory data and forecasting algorithms predict surplus quantities at season’s end
Historical sales data provides insight into previous markdown effects
Price elasticity information and margin analysis supports markdown planning
… into actionable resultsHow to …
… turn Terabytes of POS data …
Do you want to ensure your markdown strategies are meeting your financial goals?
Markdown Management
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Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Markdown Management Example
USD
USD
USD
USD
USA West Belts SS13
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Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Customer loyalty number is entered in one of the customer contact channels, e.g. smartphone app, webchannel, store clerk
The customer gets a promotion that fits his or her needs
Based on buying patterns promotion rules are created.
Based on customer loyalty information, a buying pattern is checked against promotion rules to see if there are suitable promotions available
… into actionable results
How to… … turn Terabytes of POS data …
How to make sure you increase your customers’ loyalty so that they continue to buy in your stores rather than at your competitors’?
Next Best Action,Customer-targeted promotion
18Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15th May, 2013
Make Impactful Real-Time Decisions…
To Help Optimize a Shared Supply Chain- Collaborate Differently, Compete Differently
To Better Engage with Technology-Enabled Consumers- The Consumer in the Driver’s Seat
Q&A
20Copyright © Capgemini 2013 – Internal use only. All Rights Reserved
Presentation Title | Date
THANK YOU!
Mike PriceCapgemini, North America
Practice Leader, SAP Business Analytics and Technology
e. [email protected]. +1 (770) 601 6471
Erik de VeerCapgemini, Global Sector Consumer Products & Retail
Global Leader, SAP Retail and Fashion Solutions
e. [email protected]. +31 6 1502 7845 @erikdeveer
The information contained in this presentation is proprietary.© 2013 Capgemini – Internal use only. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.
www.capgemini.com
About Capgemini
With more than 125,000 people in 44 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2012 global revenues of EUR 10.3 billion.
Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model.
Learn more about us at www.capgemini.com.