the new world of retail - intersystems...50% 40% 30% 20% 10% 0% retail (n = 121) typical performers...
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1 | © InterSystems Corporation. All rights reserved. |
Retail – An Industry Disrupted
2 | © InterSystems Corporation. All rights reserved. |
Retail – An Industry Disrupted
Online sales as a percentage of total sales continues to grow every quarter
Image source: U.S. Census Bureau News, February 17 2017
3 | © InterSystems Corporation. All rights reserved. |
The role of IT and the CIO in retail is changing
IT must become strategic partners with the line of business and senior
management
IT must work with the business to identify, prioritize, and implement
innovative new services to meet business goals
IT is no longer viewed as just a “cost center”
4 | © InterSystems Corporation. All rights reserved. |
Digital Transformation – The Recipe for Survival
Retailers must focus their
digital efforts on improving
the customer experience
• “Unified Retail Commerce”
• Personalized experiences
throughout the entire
customer journey
Distribution, sales and marketing
Corporate oversight and control
In what area will digital have the greatest
impact on your business
0% 20% 40% 60% 80%
Customer experience
Product and service offering
Fulfillment/delivery
Not sure
Other
Percentage of Respondents
Source: Gartner 2017
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Unified Retail Commerce
Enabling consistent, accurate, real-time interactions between the enterprise
and the customer across all customer touchpoints
• Integration of internal and partners’ applications
• Seamless composite business process flows connecting disparate business systems
• Real-time role-based visibility into process flows and data by IT, partners, customers
• Integrated support for web, mobile, kiosks, etc.
• And more…
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Personalized Customer Experiences
Comprehensive, accurate, and personalized representation of each visitor
and customer
Target individual customers at every stage of the customer journey
• Incorporation of data from sales channels, brand lines, internal systems, and external
sources (social media, data brokers)
• More types of analytics on more data
― Predictive analytics
― “Big data” analytics
― Semantic and sentiment analysis of text
― Real time analytics @ POS (store, web), use of “smart devices”
― Concurrent transactional - analytic processing
7 | © InterSystems Corporation. All rights reserved. |
Technology Requirements in Retail
Percentage of
Respondents
Advanced
Analytics
Internet of
Things (loT)Digital
Security
Business
Algorithms
Machine
Learning
Virtual
Customer
Assistants
Augmented
Reality
Block-
chain
Autonomous
Vehicles
Smart
Robots
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Retail (n = 121)
Typical Performers (n = 2,007)
Overall Total (n= 2,331)
Top Performers (n = 164)
Trailing Performers (n = 160)
Source: Gartner 2017In your opinion, which three of these technologies have the most potential to change your organization over the next five years?
8 | © InterSystems Corporation. All rights reserved. |
Technology Requirements in Retail
Percentage of
Respondents
Advanced
Analytics
Internet of
Things (loT)Digital
Security
Business
Algorithms
Machine
Learning
Virtual
Customer
Assistants
Augmented
Reality
Block-
chain
Autonomous
Vehicles
Smart
Robots
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Retail (n = 121)
Typical Performers (n = 2,007)
Overall Total (n= 2,331)
Top Performers (n = 164)
Trailing Performers (n = 160)
Source: Gartner 2017In your opinion, which three of these technologies have the most potential to change your organization over the next five years?
9 | © InterSystems Corporation. All rights reserved. |
10 | © InterSystems Corporation. All rights reserved. |
Technology Requirements in Retail
Percentage of
Respondents
Advanced
Analytics
Internet of
Things (loT)Digital
Security
Business
Algorithms
Machine
Learning
Virtual
Customer
Assistants
Augmented
Reality
Block-
chain
Autonomous
Vehicles
Smart
Robots
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Retail (n = 121)
Typical Performers (n = 2,007)
Overall Total (n= 2,331)
Top Performers (n = 164)
Trailing Performers (n = 160)
Source: Gartner 2017In your opinion, which three of these technologies have the most potential to change your organization over the next five years?
11 | © InterSystems Corporation. All rights reserved. |
IoT in Retail(by 2025)
Source: McKinsey Global Institute. Internet of Things, Mapping the value beyond the hype
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IoT in Retail(by 2025)
Source: McKinsey Global Institute. Internet of Things, Mapping the value beyond the hype
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IoT in Retail(by 2025)
Source: McKinsey Global Institute. Internet of Things, Mapping the value beyond the hype
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15 | © InterSystems Corporation. All rights reserved. |
Showing Top Nine Responses for
Overall Respondents
Retail
(n = 120)
Top Performers
(n = 162)
Typical Performers
(n = 1,976)
Trailing Performers
(n = 160)
Overall Total
(n = 2,299)
Skills/Resources 23% 27% 26% 22% 26%
Funding/Budgets 15% 19% 17% 16% 17%
Management Sponsorship
/Understanding/Relationships5% 10% 8% 16% 8%
Culture/Structure of Organization 8% 4% 8% 10% 8%
Technology Challenges (Legacy,
Security, etc.)7% 8% 5% 3% 5%
Lack of leadership /Planning/Strategy 10% 4% 5% 6% 5%
Capacity/Willingness to Change 7% 2% 5% 4% 4%
It/Business Alignment 6% 6% 5% 3% 4%
Business Value of IT 3% 2% 4% 7% 4%
Percentage of Respondents
What is your biggest barrier to achieving your objectives in your role?
Coded open-text responses.
Skills Gaps and Budgets are the Top Barriers to Success
Source: Gartner (Feb 2017)
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Complexity of the Tech Stack
Business Intelligence iPaaS
Enterprise Service Bus
Changed Data
Capture
Extract-Transform-Load
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Consolidation Enables Agility
A Data Platform is a computing system for building intelligent, data-rich
applications that:
• Collect, integrate, manage and analyze both structured and unstructured data;
• Support multiple use case scenarios and concurrent workloads (transaction
processing with analytics);
• With embedded, open analytics;
• And data and application interoperability.
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DevOps Enables Agility
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Multi national company with operations in 45 countries
• $5B+ revenue
• 15,000 employees
• 120 subsidiaries in 40 countries
• 165 years old
Immediate challenges:
• Accelerate digital transformation
• Shorten the time to onboard a new business partner
• Eliminate “blind spots” in their business processes
Retail - Customer Use Case
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• Integrated business systems supporting all 120 subsidiaries across 40 countries
• Created seamless composite business process spanning all systems and partners
• Eliminated “blind spots” for the business, partners, and customers
• Integration of new systems is more than 60 times faster
• Maintenance requires one-half of one employee’s time
Retail - Customer Use Case
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• Launched a new ecommerce channel
• Launched a new retail presence of 80 destination shopping centers supporting the sales of 30,000 products
• Created a financial application spanning 43 different countries and currencies
• Exchange rates, regulatory requirements, hedging, …
• Reduced daily manual effort by 24x
• Created natural language based Digital Help Desk
• Reduced manual effort from IT staff by more than 20x
• Next steps: Expose Digital Help Desk to customers for self service
IT is now viewed as a strategic partner with the line of business
Retail - Customer Use Case
22 | © InterSystems Corporation. All rights reserved. |
InterSystems IRIS Data Platform® combines a transactional-analytic
processing engine optimized for all types of data – big, small, structured,
unstructured, centralized, decentralized, historical, and real-time
with native interoperability for connecting and creating business
processes among disparate applications and data sources
and an open analytics platform for applying real-time and batch
analytics including business intelligence, predictive models, machine
learning, and natural language processing.
InterSystems IRIS delivers:
Core functionality in one, unified data platform
Immediate insight and actions at the point of transaction
Simplified solutions development and creation
Open interoperability and scalability
Mission critical, enterprise-grade technology with world-class
customer support
Thank you