simplify your retail business processes with sap that helps drive business transformation with...

78
SAP for Retail Industry Briefing Book Comments and questions: [email protected] Edition 2 January 2012

Upload: sap-vcentric

Post on 16-Jul-2015

441 views

Category:

Retail


0 download

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

agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related

presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation

and SAP's strategy and possible future developments, products and or platforms directions and functionality are all

subject to change and may be changed by SAP at any time for any reason without notice. The information on this

document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This

document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied

warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational

purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this

document, except if such damages were caused by SAP intentionally or grossly negligent.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ

materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,

which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

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

© 2011 SAP AG. All rights reserved. 70

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. 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.