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TRANSCRIPT
SAP for Retail
Industry Briefing
Book
Comments and questions: [email protected]
Edition 2
January 2012
Legal disclaimer All information in this industry briefing book is provided under NDA
The information in this document is confidential and proprietary to SAP and may not be disclosed without the
permission of SAP. This document is not subject to your license agreement or any other service or subscription
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All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
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and SAP for Retail
Transformation Run Better
Proof Points Strategy
Solutions
Innovations
Drivers
Take away
Comments and questions: [email protected]
© 2011 SAP AG. All rights reserved. 4
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
What does “Run Better” mean for a retailer?
Average customer/
basket spend
Customer satisfaction
rating
EBIT/operating income
Margin contribution
Market share
Product availability
Sales per square
foot/meter
Same store/like-for-
like sales
Coop
Index Living Mall
Chico‟s
Run Better
KPIs
Examples
Value potential
© 2011 SAP AG. All rights reserved. 5
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Inventory
days of supply
Revenue per employee
($ 000s)
31 best
Large disparity between the best and the rest
$354 best
Source: SAP Value Engineering data 2011
Coop
Index Living Mall
Chico‟s
Run Better
KPIs
Examples
Value potential
© 2011 SAP AG. All rights reserved. 6
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Revenue per employee
($ 000s) - Food
Revenue per employee
($ 000s) - Softlines
$525.3 best
Large disparity between the best and the rest
$353.7 best
Source: SAP Value Engineering data 2011
Coop
Index Living Mall
Chico‟s
Run Better
KPIs
Examples
Value potential
© 2011 SAP AG. All rights reserved. 7
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
The best are leading the way
-70%
order to
delivery lead
time
75%
improved
inventory
performance
41%
increase
in average
purchase
value
Coop
Index Living Mall
Chico‟s
Run Better
KPIs
Examples
Value potential
© 2011 SAP AG. All rights reserved. 8
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Basel-based Coop Group
wanted a leading position in
the Swiss online food retail
market. It launched
coop@home – a full-range
supermarket accessible
through the Internet and
mobile devices, such as
iPhones.
41% increase in average purchase value
22% higher revenues on coop@home
Built extendible IT backbone for further online
shops
Integrated existing IT system
SAP CRM blended perfectly with existing
landscape
Orders managed without manual processing
and unnecessary steps
Coop
Index Living Mall
Chico‟s
Run Better
KPIs
Examples
Value potential
© 2011 SAP AG. All rights reserved. 9
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Index Living Mall is the
largest specialty mall in
Thailand, providing high-
quality home furnishings and
accessories. In order to gain
advantage in the fiercely
competitive retail market, it
needed to transform its vision
for superior customer service
into reality.
-19% reduction of days in inventory
-70% reduction in order to delivery lead time
Gained real-time visibility into complete
inventory cycle across the supply chain
Met customer demand with real-time
price updates for promotion campaigns
Enhanced order fulfillment through
real-time inventory availability check
Improved warehouse efficiency
Built extendible IT backbone for further online
shops
Coop
Index Living Mall
Chico‟s
Run Better
KPIs
Examples
Value potential
© 2011 SAP AG. All rights reserved. 10
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Chico‟s operates 1,225
boutiques and outlets through-
out the United States and has
direct-to-consumer channels
for each brand.
When the company‟s disparate
legacy systems didn‟t support
their integrated high-growth
strategy, Chico‟s looked to
SAP to standardize business
processes, increase efficiency,
and facilitate store growth.
Increased business transparency to
support operational decisions
Gained deeper business intelligence
insight to support sales and merchandising
decisions
Raised value of reports with a single
version of data
75% Improved inventory performance
-50% Reduced time needed for financial
close
Coop
Index Living Mall
Chico‟s
Run Better
KPIs
Examples
Value potential
© 2011 SAP AG. All rights reserved. 11
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Innovation drivers in the retail industry Increasing customer demands and intensified competition
Drivers
„Real„ real-time
Mobile imperative
Globalization and
consolidation
Price and margin
pressures
Customer
personalization
© 2011 SAP AG. All rights reserved. 12
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
„Real‟ real-time
Consumers always
connected
Real-time
transparency of all
transactions
One-to-one
marketing and
customer connection
Drivers
„Real„ real-time
Mobile imperative
Globalization and
consolidation
Price and margin
pressures
Customer
personalization
© 2011 SAP AG. All rights reserved. 13
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Mobile imperative
Improves decision
making and
increases
productivity across
the enterprise
Delivers on customer
expectations with
superior service at
every touch point
Expands customer /
employee interaction
and increases loyalty
Drivers
„Real„ real-time
Mobile imperative
Globalization and
consolidation
Price and margin
pressures
Customer
personalization
© 2011 SAP AG. All rights reserved. 14
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Globalization and consolidation
New integrated
business models
across geographies
and channels
Global expansion
with local
assortments
New sourcing and
distribution
strategies to respond
to fast-buying
behavior across all
retail segments
Drivers
„Real„ real-time
Mobile imperative
Globalization and
consolidation
Price and margin
pressures
Customer
personalization
© 2011 SAP AG. All rights reserved. 15
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Price and margin pressures
Competition and
siloed channel
operations have
shrunk profitability
levels
Culture of
promotional activity
exists at expense of
margins
Optimized local and
personalized pricing
strategies required
Drivers
„Real„ real-time
Mobile imperative
Globalization and
consolidation
Price and margin
pressures
Customer
personalization
© 2011 SAP AG. All rights reserved. 16
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Customer personalization
Targeted one-to-one
offers that develop
loyalty
Optimized shopping
lists with
suggestions based
on product affinities
to help customers
Engage with
customers to help
refine product
selection
Drivers
„Real„ real-time
Mobile imperative
Globalization and
consolidation
Price and margin
pressures
Customer
personalization
© 2011 SAP AG. All rights reserved. 17
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Without SAP Business Challenges
Transformation
Without SAP
SAP‟s Value
With SAP
• Merchandising is disjointed
with planning and
merchandising processes
unable to react effectively to
the needs of the customer
• Marketing has difficulty
bringing relevant and timely
promotions to customers
• Supply chain struggles to
balance inventory to match
customer demand
• Store and channel
operations cannot deliver
service required at sales
locations
• IT has visibility constraints
across disparate business
functions
Contract
Manufacturer
Stores Distribution
Center Customer
Merchandising and Marketing
Store and
Channels Supply Chain
IT HR Finance
Supplier
© 2011 SAP AG. All rights reserved. 18
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
With SAP Unified and simplified business processes
Contract
Manufacturer
Stores Distribution
Center Customer
Merchandising and Marketing
Store and
Channels Supply Chain
IT HR Finance
Supplier
• Merchandising seamlessly
delivers new and relevant
assortments from real-time
customer insight
• Marketing increases loyalty
and margins with real-time
experiences across all
customer touch points
• Supply chain optimizes
inventory levels with real-time
visibility and integrated
planning and execution
• Store and channel
operations increases margin
and customer satisfaction with
efficient service matching
customer needs
• IT standardizes data with
unified and simplified
processes that transform the
retail enterprise
Transformation
Without SAP
SAP‟s Value
With SAP
© 2011 SAP AG. All rights reserved. 19
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Customer Insight
360 degree customer
insight to plan and
execute targeted
merchandise
assortments, pricing and
promotion strategies
SAP unique capability SAP unique capability SAP unique capability
Customer Interaction Customer-Driven Supply
Network
Improve product
availability and
customer service with
real-time visibility to
planning and execution
Interact with customers
by their preferences to
build loyalty and
maximize new sales
opportunities
Retail Without Boundaries We help retailers transform their business with unified and
simplified processes across channels, business models and
customers Transformation
Without SAP
SAP‟s Value
With SAP
© 2011 SAP AG. All rights reserved. 20
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
SAP solutions for retail
Solutions
Supply Chain
Finance
Store and Channels
HR
Merchandising and
Marketing
IT
Operations
SAP delivers
comprehensive,
integrated solutions
for all business areas
in retail Supply Chain Finance
HR Operations IT
Merchandising
and Marketing
Store and
Channels
© 2011 SAP AG. All rights reserved. 21
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
SAP solutions for merchandising and
marketing Bring relevant and differentiating assortments to market
Shopper Insight and Analytics
Turn information into insight with real-time granular
level information
Product and Store Lifecycle Management
Enables fast entry and maintenance of all product
and store master data
Interactive Customer Lifecycle
Management
Improve holistic view of customers with both retailer
and customer updates of customer master data, to
maximize customer value
Merchandise and Assortment
Improve effectiveness of end-to-end business
planning with fast and seamless introduction of new
and relevant assortments
Merchandising
and Marketing
Supply Chain Finance
HR Operations IT
Store and
Channels
Solutions
Supply Chain
Finance
Store and Channels
HR
Merchandising and
Marketing
IT
Operations
1 | 2
© 2011 SAP AG. All rights reserved. 22
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
SAP solutions for merchandising and
marketing Bring relevant and differentiating assortments to market
Integrated Product Development
Maximize speed of products to market with an
accurate source of consistent data
Lifecycle Price Management
Create, maintain, analyze and optimize base pricing,
and maximize price optimization strategies
throughout the lifecycle of the product
Cross Channel Marketing and Promotions
Management
Leverage customer buying behavior and preferences
to exceed customer expectations with relevant
marketing campaigns
Real -Time Customer Personalization
Deliver real-time suggestions and offers based on
product availability tailored to the preferences of the
customer
Solutions
Supply Chain
Finance
Store and Channels
HR
Merchandising and
Marketing
IT
Operations
Merchandising
and Marketing
Supply Chain Finance
HR Operations IT
Store and
Channels
1 | 2
© 2011 SAP AG. All rights reserved. 23
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
SAP solutions for store and channels Deliver personalized customer service
E-Commerce and Catalog
Build customer loyalty and increase sales with mobile
personalized e-marketing and e-commerce that helps
customers find the best products/services
Multi Channel Order Management
Allow purchase and return from any channel,
providing one consistent and unified face to the
customer
Store and Point of Sales
Deliver in-store experience that delights customers
and meets brand promise with fast cash taking,
employee schedules to customer demand, manage
inventory and mobile assistance
Cross Channel Customer Service
Effectively manage all customer after sales contact
to continue the personalized experience and grow
loyalty
Solutions
Supply Chain
Finance
Store and Channels
HR
Merchandising and
Marketing
IT
Operations
Merchandising
and Marketing
Supply Chain Finance
HR Operations IT
Store and
Channels
© 2011 SAP AG. All rights reserved. 24
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
SAP solutions for supply chain Manage profitable and synchronized demand and supply
Integrated Demand & Replenishment
Planning
Balance inventory ownership with customer service
to achieve accurate and flexible replenishment and
allocation.
Procure to Pay
Efficiently manage the complete retail procurement
to payment cycle of items for non-resale items.
Integrated Sourcing and Buying
Reduce total cost of goods sold by sourcing as
efficiently as possible.
Supply Chain Execution
Drive logistics, based upon a single view of customer
demand, across all channels and maintain visibility to
all costs of operations to make necessary
adjustments.
Solutions
Supply Chain
Finance
Store and Channels
HR
Merchandising and
Marketing
IT
Operations
Merchandising
and Marketing
Supply Chain Finance
HR Operations IT
Store and
Channels
1 | 2
© 2011 SAP AG. All rights reserved. 25
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
SAP solutions for supply chain Manage profitable and synchronized demand and supply
Manufacturing Planning and Execution for
Private Label and Local Production
Design, define and then monitor all phases of
product manufacturing from component sourcing
through to production tracking and quality
management
Lean Manufacturing for Private Label and
Local Production
Design, define and then monitor all phases of
product manufacturing
Solutions
Supply Chain
Finance
Store and Channels
HR
Merchandising and
Marketing
IT
Operations
Merchandising
and Marketing
Supply Chain Finance
HR Operations IT
Store and
Channels
1 | 2
© 2011 SAP AG. All rights reserved. 26
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
SAP solutions for finance Maximize financial opportunity
Manage Financial Performance
Manage financial and operational performance to
help with accurate insight into costing, improved
financial planning and forecasting
Treasury and Financial Risk Management
Ensure enough liquidity to fund business operations
Manage Enterprise Risk and Compliance
Provide continuous monitoring of key risk indicators
to compliance to strategy
Payables Management
Streamline invoice-to-pay processes and improve
vendor relationships
Solutions
Supply Chain
Finance
Store and Channels
HR
Merchandising and
Marketing
IT
Operations
Merchandising
and Marketing
Supply Chain Finance
HR Operations IT
Store and
Channels
1 | 2
© 2011 SAP AG. All rights reserved. 27
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
SAP solutions for finance Maximize financial opportunity
Receivables Management
Improve accounts receivables management with
sophisticated credit analysis, streamlined debt
collection and seamless integration
Consume to Cash in High-Volume
Business
Run efficient end-to-end solutions for high volume
industries such as retail, with built-in industry best
practices
Accounting and Financial Close
Run accounting and financial close processes faster,
more accurate, more compliant and less costly
Solutions
Supply Chain
Finance
Store and Channels
HR
Merchandising and
Marketing
IT
Operations
Merchandising
and Marketing
Supply Chain Finance
HR Operations IT
Store and
Channels
1 | 2
© 2011 SAP AG. All rights reserved. 28
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
SAP solutions for human resources Focus on the effectiveness of your most valuable resource
Core HR and Payroll
Enable organizations to support and automate
processes across the entire employee lifecycle from
hire to retire for a global workforce
Workforce Planning and Analytics
Help organizations to better plan workforce related
needs and associated costs, enables ongoing
measurements of performance indicators and metrics
Talent Management
Enable organizations to attract, recruit, appraise,
develop and retain the best talent available
Time and Attendance Management
Enable organizations to optimize workforce utilization
through efficient work schedule/roster creation,
ensure capture and calculation of time-related data
Solutions
Supply Chain
Finance
Store and Channels
HR
Merchandising and
Marketing
IT
Operations
Merchandising
and Marketing
Supply Chain Finance
HR Operations IT
Store and
Channels
© 2011 SAP AG. All rights reserved. 29
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
SAP solutions for information technology Improve the efficiency and speed of decision making across
the company
IT Service Management
A full-blown service desk function with optional
integration into SAP Business Communication
Management with diverse reporting options
IT Portfolio and Project Management
Provide transparency to IT portfolio, projects and
resources. Help streamline portfolio processes and
standardize project management
Application Lifecycle Management
Efficiency and Value along the Application Lifecycle
from Design, Transition and Operation
Solutions
Supply Chain
Finance
Store and Channels
HR
Merchandising and
Marketing
IT
Operations
Merchandising
and Marketing
Supply Chain Finance
HR Operations IT
Store and
Channels
© 2011 SAP AG. All rights reserved. 30
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
SAP solutions for operations Efficient and sustainable operational execution
Sustainability Reporting and Analytics
Sustainability Reporting and Analytics delivers
strategy-aligned sustainability execution across the
entire business landscape via transparency,
optimization and stakeholder engagement
Real Estate Lifecycle Management
End-to-end real estate lifecycle management with full
integration to ERP Financials
Solutions
Supply Chain
Finance
Store and Channels
HR
Merchandising and
Marketing
IT
Operations
Merchandising
and Marketing
Supply Chain Finance
HR Operations IT
Store and
Channels
© 2011 SAP AG. All rights reserved. 31
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Customer centric and innovation driven SAP‟s strategy for retail companies
Solution Innovations
Technology Innovations
Delivery Innovations
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 32
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
SAP solution innovations for retail companies
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Innovations
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
1 | 2
© 2011 SAP AG. All rights reserved. 33
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Technology
• Mobility
• Business analytics
• In-memory computing
• On demand
Delivery
• Rapid-deployment
solutions
• Customer co-innovation
• Ecosystem
Future
Continued investment in retail solutions
SAP‟s vision is to provide real-time, unified and simplified processes across
channels, business models and customers
Slide shows selected Items only . See Industry Roadmap for complete view 2Partner
Recent
Sales/POS Analytics
Promotion Management
Loyalty Management
Mobile Infrastructure
Market Sentiment Analysis2
In-Store Merchandising and
Inventory Management
Loss Prevention
Planned
In-Memory Consumer Activity
Repository & Analytics
In-Memory Retail Planning
Forecasting & Replenishment
Promotion + Integration
Sourcing (OP and OD)
Warehouse Management
Web Channel
Mobile Marketing
Future
In-Memory Retail Predictive
Applications
Retail Analytics
Integration of Channels and
Harmonized User Experience
Mobile Retailing
Supply Chain Execution Hub
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Innovations
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
1 | 2
© 2011 SAP AG. All rights reserved. 34
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Supply chain
Accurate and flexible forecasting and
replenishment solutions that effectively
and profitably balance inventory
ownership, inventory strategy and
customer service
Plan all phases of product creation
from design and component sourcing
through production tracking and
quality management
Merchandising and marketing
Targeted loyalty programs that
address the needs of the customer
Integrated promotions management
for fast execution of targeted offers
Financial and assortment plans
driven across channels and
geographies from same top line goals
Corporate operations
Advanced labor scheduling to match
employee hours and skill to customer
demand
Next-generation employee self-
services to improve usability and user
acceptance
Store and channels
• Targeted customer pricing combined
with efficient and fast order creation
• Extensive catalog management to
deliver personalized information
through e-mail Web campaigns
• Connect all stores, franchise
operations, and customers over an
array of devices
Selected solution innovation Available today
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Innovations
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 35
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Selected solution innovation Loyalty management
Program Management
Reward Rules Management
Processing Engine
Membership Handling
Loyalty API Connectivity
Sales Order Integration
Interaction Center Integration
Web Channel Integration
Program Design & Setup Program Execution
CUSTOMER INTERACTION CHANNELS
LOYALTY MANAGEMENT SOLUTION
Plan and execute channel customer loyalty programs
Consistently treat customers well throughout the organization
Build customer loyalty by sharing interaction history across channels
Partner Management
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Innovations
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 36
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
SAP Promotion Management for Retail Offers complete support for planning promotions, forecasting their performance, and creating a
closed-loop promotions process by integrating with execution systems.
Business benefits:
Greater promotional effectiveness by creating
more profitable and timely promotions
Enhanced efficiency by providing tools to
generate targeted promotions for all sales
channels
Improved productivity by supporting better
collaboration among marketing merchandising
and advertising.
Business capabilities:
Insightful analytics drives a comprehensive
promotional strategy to improve financial
performance
Automated workflow facilitates collaboration
between key stakeholders
Consumer centric promotions targeted at
specific geographic markets
One database of product information and
offers
Selected solution innovation Promotions management
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 37
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
SAP Forecasting and Replenishment Provides automated capabilities for demand-driven synchronized inventories along the supply
chain to help improve in-stock positions and reduce cost. The next release will provide more
sophisticated functionality for DC replenishment and usability improvements.
Business benefits:
Reduction of purchasing and logistical costs
Increased forecast accuracy leads to better
results
Improved traceability of automated processes
Reduced total cost of ownership through
better integration with SAP ERP for Retail
Improved accuracy of promotional forecasts
Better usability for increased efficiency
.
Selected solution innovation Forecasting and replenishment
Business capabilities: Sophisticated capabilities for truck load
optimization
Forecast improvements (statistical
enhancements and improved visibility)
More detailed information regarding
automated calculation steps
Enhanced connectivity of SAP F&R with SAP
ERP for Retail, e.g. source list integration and
transit stock consideration
Additional time-dependent data for
promotions
Improved user interfaces
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 38
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Merchandising and marketing
In-memory planning to increase the
effectiveness, speed and accuracy of
planning assortments
In-memory customer segmentation for
analysis of high volume customer data
Consumer activity repository to
effectively capture and analyze
consumer behavior in real-time
Corporate operations
E-invoicing with digital signatures
Mobile applications for employees,
managers, and HR business partners
Collaborative disclosure management
Store and channels
State-of-the art business-to-consumer
Web channel that integrates marketing,
services, and stores
Personalized mobile shopping
experiences with mobile marketing
Enhancements in point of sale
Supply chain
Improved data enrichment, simulation
and analytics in Spend performance
management
Transportation management for freight
forwarders and shippers
Rapid deployment solution for global
available-to-promise check
Selected solution innovation Road map
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 39
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Selected retail innovation Example of redefining retail processes
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Mobile
Cloud
On Premise
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 40
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Technology innovation
On Demand Analytics
Mobility In-Memory Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 41
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Merchandising
and Marketing Supply Chain
Store and
Channels
Corporate
Operations
Detailed visibility and risk identification across supply chain
Real -time response by allowing simultaneous consideration of constraints and restrictions along the entire supply network
Real-time sales information to assess current risk of out-of-stock or out-of-shelf situations.
Leverage sales data from all channels to understand customer buying patterns and drive profitable promotions
Increased insight into consumer behavior, mobile and web channel decision activity.
• Run profitability analysis at single product or customer level
• Improved internal accounting and decision making
• Control cost in real-time, faster cost allocation
• Enable timely and accurate reporting of financial and operational performance
• In a flash general ledger reporting
• Balance risk and opportunity
Advanced velocity of merchandise insights available across all channels
Time-phased assortment planning available by product, store and customer integrated to ordering and replenishment processes
Real-time what-if cluster and product optimization integrated to assortment planning
Market basket insights that provide merchandise and assortment guidance
Details Details Details Details
SAP in-memory computing for retail Opportunities for the business
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
Customer co-innovation:
© 2011 SAP AG. All rights reserved. 42
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Opportunity for the business In-memory enabled innovations /
HANA use cases
Capability enabled by
HANA version
Gain detailed consumer insights to provide a differentiating and personalized shopping experience
Consumer Activity Repository
Enable retailers to effectively capture and
analyze consumer behavior in real-time
and make informed decisions.
HANA 1.0 SP3
Obtain detailed visibility and alerting of sales performance across all channels
Sales Analysis for Retail
Provide advanced visibility and alerting
capabilities to Merchants and Store
Operations teams regarding sales
velocity, promotional impact, product
performance etc across all channels
HANA 1.0 SP3
• Enable flexible, high-performance retail planning
In-Memory Planning for Retail
One high performance data source
supporting strategic, merchandise, store
and assortment level planning.
HANA 1.0 SP3
• Predict consumer buying patterns and behavior
Affinity Insights (PIO service)
Advanced basket analysis providing
detailed understanding of individual
shopper transactions and correlations to
seasonal, weekly, daily patterns
Consumer Demand Forecasting
HANA 1.0 SP3
Future
Legend Current Solution SAP HANA Planned Solution SAP HANA Future Back
SAP in-memory computing for retail Merchandise and marketing use cases
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 43
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Opportunity for the business In-memory enabled innovations /
HANA use cases
Capability enabled by
HANA version
Establish a responsive supply network to reduce costs and manage risk across the network more efficiently
Flexible Shipping/Purchasing and
Spend Analysis
HANA 1.0 SP3
real-time transparency of potential out-of-stock and service level issues creates the opportunity to react rapidly and solve issues.
On Shelf Availability Analysis
Analysis of real-time sales information to
assess current risk of out of stock or out
of shelf situations.
HANA 1.0 SP3
• Simultaneous consideration of constraints and restrictions along the entire supply network provide the opportunity to re-plan the flow of merchandize and react on customer demand
Integrated Demand Planning
Warehouse Analytics
Transportation Analytics
Future
SAP in-memory computing for retail Supply chain use cases
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future Legend Current Solution SAP HANA Planned Solution SAP HANA Future Back
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 44
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Opportunity for the business In-memory enabled innovations /
HANA use cases
Capability enabled
by HANA version
Define customer target groups for more efficient promotions and marketing events.
High volume customer segmentation
Drives a substantial lift in targeted
marketing campaign effectiveness.
Support further segmentation via the
alignment of customer attributes and
detailed SKU level sales data.
HANA 1.0 SP3
Increase sales and provide personalized shopping experience.
Omni-Channel Analytics
Deliver deep insights on consumer
spend and buying behavior by shopping
channel
Future
SAP in-memory computing for retail Store and channels use cases
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future Legend Current Solution SAP HANA Planned Solution SAP HANA Future Back
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 45
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Opportunity for the business In-memory enabled innovations /
HANA use cases
Capability enabled
by HANA version
Control cost in real-time, faster cost allocation
Enable timely and accurate reporting of financial and operational performance
In a flash General Ledger reporting
Flexible vendor open items reporting
(Creditor): List of open and cleared items
by vendor / creditor
Flexible open item reporting (New
General ledger)
New General Ledger line item reporting
HANA 1.0 SP3
Run profitability analysis fast and on single product or customer level
Improved internal accounting and decision making
Profitablity Analysis (CO-PA) HANA 1.0 SP3
Balance Risk and Opportunity
Advanced Profitability Planning and
Analysis
HANA 1.0 SP3
Legend Current Solution SAP HANA Planned Solution SAP HANA Future Back
SAP in-memory computing for retail Corporate operations
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 46
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Merchandising
and Marketing
Offer personalized promotions and services that will result in increased customer loyalty
Increase store visits by using location-based features
Create superior experience with mobile couponing (m-couponing), fully integrated with point of purchase
Store
Operations
Augment staff productivity through enhanced store processes and task mgt
Educate staff on new products, promotions and services
Provide store managers all information and processes needed to increase efficiency
Customer
Interaction
Increase customer reach with mobile catalog browsing, ordering, and store pickup
Improve customer experience with mobile checkout
Mobile store price and availability information
Reduce costs with mobile (POS)
Corporate
Operations
Give executives instant insight to information necessary for effective decision making
Provide instant information at the speed of business with mobile KPI reporting and business analytics
Streamline internal approvals
IT
Manage and control corporate information though a secure infrastructure on every device
Build your own mobile application
Details Details Details Details Details
Mobility for retail Opportunities for the business
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 47
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Mobility for retail Merchandising and marketing use cases
Opportunity for the business Mobility-enabled innovations Capability enabled by
Create superior experience with mobile couponing, fully integrated with point of purchase.
Mobile couponing (Service)
Mobile couponing redemption at POS
(Service)
Sybase 365 mobile
CRM offering
Future build potential :
“CRM-related loyalty
management”
Increase sales and customer loyalty by providing a personalized shopping experience.
Mobile marketing
Provides real-time interaction and
location-based services with the
consumer throughout the buying
lifecycle. This process creates a
personalized approach which influences
consumer behavior, drives traffic and
increase average spend.
Planned solution
(prototype available)
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future Legend Current Solution Planned Solution Future Back
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 48
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Mobility for retail Store operations use cases
Opportunity for the business Mobility-enabled innovations Capability enabled by
Augment staff productivity through enhanced store processes and task management
Mobile in-store inventory management
Real-time inventory information
Complete visibility of any type of
goods movement
Different work lists
Immediate updates to inventory and
financials for goods receipts,
movements, and issues
Mobile task management
Task assignments and control of all
activities through mobile devices
Future build potential
on Sybase Unwired
Platform
Future build potential
on Sybase Unwired
Platform and Mobile
Workflow
Educate staff on new products, promotions and services
Training module access
New merchandise attributes readily rolled
out corporate-wide
Future build potential
Provide store managers all information and processes needed to increase efficiency
On shelf availability
Mobile workforce scheduling
Interview assistant
Mobile in-store merchandise
management
Provides store managers with insight and
store associates user friendly enquiry tool
Future build potential
on Sybase Unwired
Platform
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future Legend Current Solution Planned Solution Future Back
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 49
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Mobility for retail Customer interaction use cases
Opportunity for the business Mobility-enabled innovations Capability enabled by
Increase customer reach with mobile catalog browsing, ordering, and store pickup
Mobile commerce
Full access to common data and
common processes across all channels
Future build potential
Improve customer in-store experience with mobile checkout
Mobile self-scanning
Customer able to use own device to scan
items and initiate a checkout
Mobile payment (Service)
Customer able to use own device to pay
Future build potential
Sybase 365 mobile
Payments
On-device charging
(planned)
Increase customer satisfaction with mobile access to store price and availability information
Price and inventory check
Checking merchandise prices and
information via scans or minimal key
entries, any time, any place, any channel
Future build potential
Reduce costs by bringing mobile POS to every staff device
Mobile POS
SAP Point-of-Sale application delivered
on a retailer-owned mobile device.
Future build potential
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future Legend Current Solution Planned Solution Future Back
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 50
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Mobility for retail Corporate operations use cases
Opportunity for the business Mobility-enabled innovations Capability enabled by
Control all reports with role-based access on the go
Mobile analytics
At-a-glance summary reporting of key
corporate key performance indicators
(KPIs) for every line of business and
executive
SAP BusinessObjects
Explorer software
(available now for
iPhone and iPad)
Streamline approval and workflow processes and make faster decisions
Mobile workflow
Streamlined internal approvals (for
example, purchasing, employee leave,
shift changes)
Mobile workflow
Deliver high-quality human resource services with a lower total cost of ownership for every employee
Mobile Human capital management
(HCM) services
Employee lookup, travel receipt
capture, time capture, leave request,
approval workflow
Advanced HCM services
Interview assistant, manager view, team
performance assistant
Planned solution
Future build potential
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future Legend Current Solution Planned Solution Future Back
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 51
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Mobility for retail Information technology use cases
Opportunity for the business Mobility-enabled innovations Capability enabled by
Manage compliance and support heterogeneous devices via one consolidated platform
Information and device control
Ability to manage and control corporate
information on every device
Able to let your associates use their own
smart phones on the job, If you require
Afaria mobile device
management solution
Custom build applications on a single, integrated platform
Platform for custom-built applications
Ability to build your own applications to
give you a competitive edge on a single
platform
Sybase Unwired
Platform
Legend Current Solution Planned Solution Future Back
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 52
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Business analytics retail Opportunities for the business
Merchandising
and Marketing Finance Supply Chain
Store
Operations
Streamline planning and budgeting cycles to reduce cycle time
Reduce time taken for period, monthly and quarterly close
Enhanced decision-making with better information and standardization of key business processes
Set KPI‟s to measure the effectiveness of supply chain operations
Allocate impact of fuel and fleet costs across retail units to determine item profitability
Analyze cost and profitability information on retail enterprise activities
Analyze store/department level sales and labor hours planning to efficiently manage your store operations
Improve financial and sustainability performance; set goals to motivate improvement
• Quickly respond to changes in customer demand
• Identify successful promotions in real-time to optimize the shopper experience
• Analyze and respond to market sentiment to maintain loyalty and build a positive brand
Details Details Details Details
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 53
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Opportunity for the business Analytics-enabled
innovations/analytics
use cases
Capability enabled by
analytics version
Advanced analytics and alerting functionality to coordinate with merchandising and store operations to leverage point-of-sale data for informed decisions
SAP BusinessObjects
Sales Analysis for Retail
SAP Analytical Application
Identify which promotions are successful and best fit for merchandise mix to correlate with optimal markdown and pricing parameters for all channels
SAP BusinessObjects
Promotional and
Merchandise Insight
SAP Analytical Application
Mantis Pulse Analytics™ enables a rich environment for marketing, HR, product design, and customer service organizations to listen, measure, analyze, and respond to market sentiment
Mantis Pulse Analytics™
for Retail
Partner Analytical Application
Business analytics for retail Merchandising and marketing use cases
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future Legend Current Solution Planned Solution Future Back
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 54
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Opportunity for the business Analytics-enabled
innovations/analytics
use cases
Capability enabled by
analytics version
Improve financial planning and
analysis for a more
comprehensive perspective on
business performance across the
enterprise
SAP BusinessObjects
Planning and Consolidation
SAP Analytical Application
Integrate, aggregate and analyze
operational and credit risks for a
consolidated view of retailers
exposure
SAP BusinessObjects Risk
Management for Retail
Custom Application
Enhanced retail cross –functional
and cross- geographic
collaboration for visibility on sales
and marketing plan execution
SAP BusinessObjects
Strategy Management for
Retail
Custom Application
Business analytics for retail Finance use cases
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future Legend Current Solution Planned Solution Future Back
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 55
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Opportunity for the business Analytics-enabled
innovations/analytics
use cases
Capability enabled by
analytics version
A best practice based, pre-built
model for integrated store /
department level sales and labor
hours planning
SAP BusinessObjects
Store Sales and Labor
Planning
SAP Analytical Application
Enable companies to maximize
overall net margin and reduce
direct and indirect costs
SAP BusinessObjects Net
Margin Analysis
SAP Analytical Application
Align sustainability KPIs to
corporate objectives and risks; to
improve financial and
sustainability performance; and
set goals to motivate
improvement
SAP BusinessObjects
Sustainability Performance
Management for Retail
SAP Analytical Application
Business analytics for retail Store operations use cases
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future Legend Current Solution Planned Solution Future Back
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 56
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Opportunity for the business Analytics-enabled
innovations/analytics
use cases
Capability enabled by
analytics version
Supply chain performance
management enables retailers to
measure the effectiveness of
supply chain operations
SAP BusinessObjects Supply
Chain Performance
Management
SAP Analytical Application
Allocate the impact of fuel and
fleet costs more accurately
across retail operating units to
determine item profitability
Fleet and Fuel Management
Cost Containment
Custom Application
In-depth analysis and alerting of
cost and profitability information
on retail enterprise activities
SAP BusinessObjects
Profitability and Cost
Management for Retail
Custom Application
Legend Current Solution Planned Solution Future Back
Business analytics for retail Supply chain use cases
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 57
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
On demand solution for retail Overview
Details Details
Details
Strategic sourcing, contract life- cycle
management, and supplier management
components
Collaborative decision making
Analytics Contact centre
Details
Sourcing
Bring together people, information, and
business methods to drive fast, meaningful
results
Explore, report, and share data with the
SAP® BusinessObjects™ BI OnDemand
solution
Rapidly reach performance, quality and cost
targets across distributed contact centre
operations
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 58
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
On demand solutions for retail Opportunities for the business
Opportunity for the business Solution
To survive in an increasingly challenging global economy,
procurement organizations need to drive sustainable cost
savings, manage contracts efficiently, optimize supplier
management, and deliver rapid time-to-value. The SAP
Sourcing OnDemand solution can help.
Ensure sustainable cost savings
Deliver comprehensive contract management
Gain 360-degree supplier insight
The SAP Sourcing OnDemand solution
comprises strategic sourcing, contract life-
cycle management, and supplier
management components. This subscription-
based solution offers a combination of
software, services, and support that can
empower you to manage the entire strategic
sourcing-to-contract process.
Opportunity for the business Solution
Companies need teams that work together, sharing and
brainstorming in a structured fashion to drive fast decision
and maintain a record of communication that can be used
to constantly refine and improve decision made. SAP
Streamworks solution an help
Unite people, information, and business
Work with the applications you use today including e-mail,
WebEx, and EVERNOTE
The SAP® StreamWork™ application
supports collaborative decision making by
bringing together the people, information,
and business methods to drive fast,
meaningful results.
SAP Sourcing OnDemand
SAP StreamWork OnDemand
Back
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 59
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
On demand solutions for retail Opportunities for the business
Opportunity for the business Solution
Business Challenges Limited information that hampers informed decision making
Lack of accessible easy-to-use BI tools for business users
Lack of reports that provide a complete view of the
business
Time-intensive manual processes to consolidate or share
data and create reports, charts, graphs, dashboards, and
visualizations
Explore, report, and share data with the
SAP® BusinessObjects™ BI OnDemand
solution. It‟s a comprehensive business
intelligence solution in a software-as-a-
service model
Opportunity for the business Solution
Contact center solutions are often rigid, and responding
effectively to customer needs taxes your entire organization.
SAP Business Communications Management helps achieve:
Higher customer satisfaction with improved service levels
and higher rates of first-call resolution
Reduced cost with smarter workforce utilization and lower
maintenance costs
Fast time to benefit through an implementation
of fixed scope and price performed within weeks
SAP® Business Communication
Management software is a contact center
solution that helps organizations to rapidly
reach performance, quality and cost targets,
especially in distributed operations.
SAP BusinessObjects BI OnDemand
SAP Business Communication Management OnDemand
Back
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 60
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Delivery innovations
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 61
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Rapid-deployment solutions Overview
Details Details
Details
Extended warehouse management Portfolio monitoring
Forecasting and replenishment
CRM marketing
Details
Predefined services for retail Overview
Point of sale data
Details
ERP connectivity
Details
Opportunity to adopt next generation
warehousing automation techniques Easy monitoring and decision making support
for operative projects
Decision making support and monitoring
including customer and financial integration
as well as standard analytics
Predefined solutions for sophisticated
Forecasting and Replenishment application
Services and accelerators for master data, mapping
to standard customer/industry message formats
This service is delivered into the customer‟s
system landscape to take and post POS data
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
Starter Pack Fashion & Grocery Retailing
Details
Complete solution package which integrates
specific industry processes
Details
Planning for Retail Helps retailers define budgets, manage assortments
per channel utilizing real-time what-if demand driven
forecasts
© 2011 SAP AG. All rights reserved. 62
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Extended Warehouse Management
Opportunity for the business Solution
Opportunity to adopt next generation warehousing
automation techniques & achieve continuous
improvement in supply chain execution
Designed for existing SAP ECC customers who
are looking to expand their footprint with SCM
EWM 7.0 with High ROI & Low TCO
A jump start on the EWM journey with quick
wins and continuous business improvement
Best practice principle with fixed scope
A service targeted to small and midsize
enterprises as well as dedicated business
units of large enterprises
Opportunity for the business Solution
This SAP Rapid Deployment Solution provides an easy
monitoring and decision making support for operative
projects running in SAP Project System (PS). Monitoring
capabilities include e.g. financial integration as well as
standard analytics via SAP Business Objects Explorer
and Business Context Viewer.
Portfolio Planning
Identify Proposals
Analyze Rick & Rank Proposals
Create and Approve Budgets
Portfolio Monitoring
Monitor Portfolio
Project Monitoring
Initiate Project
Project Execution
Implementation Project
Rapid-deployment solutions
Portfolio Monitoring
Back
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 63
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
CRM Rapid Deployment Marketing
Opportunity for the business Solution
This solution provides easy monitoring and decision
making support, monitoring capabilities include
customer and financial integration as well as standard
analytics via SAP Business Objects Explorer and
Business Context Viewer.
Simplify Campaign Management
Hierarchical Campaign Planning
Marketing Project Management
Integrated Execution Channels
Better Support the Sales Force
Integrated Lead Management
Automated Lead Distribution
Rapid-deployment solutions
Back
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 64
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Planning for Retail
Opportunity for the business Solution
The SAP Planning for Retail Suite helps retailers with
their core planning challenges and fine tunes channel
specific assortments. Key benefits:
• Closed-loop retail business processes, based on
industry best practices, improve efficiency and
accuracy in merchandise decision making
• Clear visibility across all performance metrics to
support retail performance analysis, re-plans, and
sales performance no matter the number of
channel/stores/sku combinations
• Gain the market insight needed to anticipate new
trends and with one single merchandise planning and
analysis solution convert these insights into actionable
plans that create and fulfill customer demands.
SAP Planning Suite for Retail
Channel Financial Planning
Merchandise Planning
Key Item Planning
SAP Planning Suite for Retail
Enhanced rules based calculation engine
Enhanced cell locking capabilities
Rapid-deployment solutions
Back
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 65
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Predefined services for retail
Enterprise Data Warehouse Service for Point of Sale
Opportunity for the business Solution
Reduced implementation cost End-to-end preconfiguration Focus on core processes – solution to address
customers‟ needs
Speed to value Reduced implementation cycles gap/fit analysis instead of lengthy design phase Rich experience and successful track record with,
and smooth automation of customer-related retail processes and retail-specific processes
Business-process-oriented approach helps customers quickly get to a standard configuration and prototyping.
Meets customers„ needs for predefined solutions yet still uses the sophistication of the SAP Forecasting and Replenishment application to meet special needs
SAP Forecasting and Replenishment
Opportunity for the business Solution
Helps retailers drive responsive replenishment also known as advanced vendor-managed inventory (VMI) for customer replenishment
Allows companies to drive better decisions with access to key KPIs such as inventory turns, order fill rate
Rapid delivery in typically under 12 weeks
Traditional license and subscription models
Process steps include B2B data load and correction, forecasting, and promotion planning, replenishment, sales order proposal and generation, delivery
Service scope includes services and accelerators for master data, mapping to standard customer/industry message formats, reporting content
Back
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 66
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
ERP Connectivity for Point of Sale Data Management
Opportunity for the business Solution
Taking point of sale information from any device and any
location is vital for retailers to get up to date sales and
stock information across their enterprise. This service is
delivered into the customer‟s system landscape to take
and post that POS data to the customers systems.
Delivery of the coding and objects
Extensive documentation provided
Initial 1,5 day workshop session with two
consultants on site for know-how transfer
Further walk through sessions after
implementation of service on customers system
to complete configuration and set up and make
a run through.
Predefined services for retail
Back
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
Opportunity for the business Solution
Complete solution pack for fashion retailers which integrates fashion specific processes
Complete solution pack for grocery retailers which integrates grocery specific processes
Builds a solid foundation and base layer for the system implementation
Prototype with pre-configured fashion and grocery specific scenarios
Major additional developments to enhance standard functionality
Comprehensive documentation material as well as project proposal
Internal customer workshop
Example SBO dashboards on request
Starter Pack for Fashion and Grocery Retailing
© 2011 SAP AG. All rights reserved. 67
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Customer co-innovation
SAP Research Living Labs The Future Retail Center, located in Regensdorf, Switzerland, and managed by SAP Research Zurich, is a
joint effort between SAP Research and customers, as well as industry and academic partner organizations
to foster research and development in retail and logistics.
SAP Community Network This online hub supports customers, partners, consultants, experts, and SAP employees. Companies can
find answers to questions and benefit from the expertise of other community members as they develop their
own products.
SAP Regional User Groups (America‟s SAP Users‟ Group – ASUG) Each global region has an SAP user group and the industry business units meet quarterly with these groups
to discuss current releases, future plans, and workshops to solve customer problems. These user groups
have been in existence for over 25 years.
SAP BusinessObjects innovation center This interactive online forum lets customers sample SAP technology that is in development. Companies can
download prototype software and offer feedback.
SAP Premier Customer Network Successful companies that SAP has selected to collaborate and share ideas. Network members participate
in programs designed to cultivate, diversify, and transform ideas into tangible business improvements.
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 68
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Customer co-innovation
Precision retailing and the mobilized consumer
Real-time marketing
Influence the composition and size of the shopping cart real-time in the store
Real-time offer suggestions of special offers and products that match customer needs
Benefits
Increased customer loyalty and satisfaction
Generate additions sales with up-selling opportunities
How
Real-time marketing with in-memory technology and mobile applications
Back
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 69
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Customer co-innovation
Unimarc, Grocery Retailing, Chile
Accelerating business growth by accelerating reporting
Enhancing the value of business intelligence
Benefits
Used preconfigured content to minimize implementation effort
Finished in one week, on schedule
How
SAP NetWeaver Business Warehouse Accelerator
600%
Users with access
to management
information
30%
Increase
customer
satisfaction
500%
Increased
delivery of
sales reports
Back
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
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Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Ecosystem
Consulting and integration
SAP BusinessObjects
Sales Analysis for Retail
to prevent out of stocks
Trilogy Project –
benchmarking across
core processes
Balance labor cost with
excellent service
Link strategy, budgeting,
performance, and
compliance processes
Value-add resellers/development
For more details, see the SAP Communities site on SAP.com: SAP Communities
SAP Paybacks and
Chargebacks by Vistex
SAP Incentive Administration
Social media and market
sentiment analysis
Supply chain modeling
and analytics software
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
© 2011 SAP AG. All rights reserved. 71
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Retail without boundaries Key trends driving future innovations
Innovations
Technology
Mobility
Business analytics
In-memory computing
On demand
Delivery
Rapid-deployment
solutions
Customer co-innovation
Ecosystem
Future
Solutions
Road map
Recent innovations
Redefining retail
processes
Loyalty management
Promotions
management
Forecasting and
Replenishment
Redefined
customer
interaction
Today 2015
Customer Store
Web
Mobile
Social
Media
Store
B2COrders
Goods Issue
Customer
New level of
real-time
customer data
Global,
verticalized
supply chain
Merc
handis
ing
Mark
eting
Supply
Chain
...
Customer Data
Merchandising
Marketing
Supply Chain
© 2011 SAP AG. All rights reserved. 72
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
References and results
Proof Points
La Vie en Rose
Wolverine
Welspun
© 2011 SAP AG. All rights reserved. 73
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
La Vie en Rose, a leading
Canadian retailer of lingerie
and swimwear, installed
SAP software to support a
centralized data warehouse.
The firm now has the
analytics and reporting
functions it needs to
standardize performance
calculations, enhance
merchandising and
replenishment strategies, and
optimize potential
growth. The new platform has
also increased operational
efficiency and freed up IT staff
to focus on tasks with higher
business value.
Created a centralized source for timely,
accurate data
Replaced manual sales performance
reporting with automated weekly reports
Standardized calculations of performance for
greater accuracy and reliability
Improved accuracy in measuring
effectiveness of marketing and promotional
campaigns
10% Raised conversion rate by 1%,
thereby increasing sales by 10%
95% Reduced manual effort by 95% and
eliminated 20 hours per week of
merchandising
Proof Points
La Vie en Rose
Wolverine
Welspun
© 2011 SAP AG. All rights reserved. 74
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Wolverine World Wide Inc.,
a leading global marketer of
branded footwear and
apparel, wanted to leverage
its wholesale business to
grow its retail operation.
This demanded a solution that
integrates fully with its
wholesale software, the SAP
Apparel and Footwear
application. By implementing
SAP for Retail solutions,
Wolverine has gained the real-
time visibility needed to
increase revenue in all of its
stores.
Higher store revenue and sell-through rate
Multiple currencies and languages supported
Manual tasks by retail staff reduced
Retail store stock outs reduced
Inventory replenished for in-demand styles
Integration with SAP Apparel and Footwear
25% Increase outlet store sell-through
rate
35% Concept store sell-through rate
increased on core products
Proof Points
La Vie en Rose
Wolverine
Welspun
© 2011 SAP AG. All rights reserved. 75
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Welspun Group, one of the
fastest-growing Indian
conglomerates, represents
an amalgamation of
expertise and engineering
excellence in premier pipe
and home textiles. Welspun
India Ltd., the flagship
company of the group and
manufacturer of home textiles
for U.S. retailers, required a
standard way of
communication. To support
fast-paced internal growth,
integrate smoothly with
acquired companies,
and achieve a standard
communication platform,
Welspun India chose
SAP software.
Built an integrated platform to interact with
business partners
Automated and standardized operational
processes
Improved business compliance with legal and
regulatory requirements for different
customers
Increased customer confidence with high
quality of deliverables and business continuity
Allocated resources and minimized IT
administrative and maintenance costs more
effectively, allowing personnel to work on
high-end tasks
60% Increase in order delivery efficiency
20%
to 30%
Concept store sell-through rate
increased on core product
Proof Points
La Vie en Rose
Wolverine
Welspun
© 2011 SAP AG. All rights reserved. 76
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
SAP solutions help retail companies
run better
Strategy
SAP innovations
enable business
transformation
IT value Orchestration across on premise, on demand and on device
providing flexibility, security and scalability on a single IT
platform.
• Easily consumable through implementable steps
• Quick ROI through rapid deployment solutions (RDS)
• Secure reliable operations tuned for your business
On-Demand Mobility Business
Analytics
In-Memory
Computing
Business value “End to end” processes for multi industry value chains
combining horizontal and industry specific solutions
Plan and Market better: 360 degree customer insight to plan
and execute targeted merchandise assortments, pricing and
promotion strategies
Target better: Enhance real-time customer experiences
across all touch points
Sell better: Interact with customers by their preferences to
build loyalty and maximize new sales
Supply better: Improve product availability and customer
service with real-time visibility to planning and execution.
Operate better: Simplify business processes and empower
employees with the right information when they need it
© 2011 SAP AG. All rights reserved. 77
Drivers Innovations Take Away Strategy Run Better Transformation Solutions Proof Points
Take Away
Continued investment in retail solutions that leverage new
technologies to surpass the speed and mobility demands
of customers and employees
Our customers are reaping the benefits and running
better with SAP
SAP helps drive business transformation with real-time unified
and simplified business processes 1
2
3
Take Away
© 2011 SAP AG. All rights reserved.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP
BusinessObjects Explorer, StreamWork, and other SAP products and
services mentioned herein as well as their respective logos are trademarks
or registered trademarks of SAP AG in Germany and other countries.
Business Objects and the Business Objects logo, BusinessObjects, Crystal
Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business
Objects products and services mentioned herein as well as their respective
logos are trademarks or registered trademarks of Business Objects
Software Ltd. Business Objects is an SAP company.
Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and
other Sybase products and services mentioned herein as well as their
respective logos are trademarks or registered trademarks of Sybase, Inc.
Sybase is an SAP company.
All other product and service names mentioned are the trademarks of
their respective companies. Data contained in this document serves
informational purposes only. National product specifications may vary.
These materials are subject to change without notice. These materials
are provided by SAP AG and its affiliated companies (“SAP Group”)
for informational purposes only, without representation or warranty of
any kind, and SAP Group shall not be liable for errors or omissions with
respect to the materials. The only warranties for SAP Group products and
services are those that are set forth in the express warranty statements
accompanying such products and services, if any. Nothing herein should be
construed as constituting an additional warranty.