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Trendcasting
 5 Ideas that Have the Potential to Influence the (Near) Future of Commerce

Confidential ©2012 RedPrairie Corporation. All rights reserved.   1
Near Field Communications
 Looking Past Payments




Confidential ©2012 RedPrairie Corporation. All rights reserved.   2
NFC, Explained

 • Short-range wireless technology
   > “Tap and Go”

 • Smartphones gain instant access to
   data from any other NFC-enabled
   handset or NFC tag


Confidential ©2012 RedPrairie Corporation. All rights reserved.   3
Bluetooth, RFID, QR Codes…
                                                                  Why NFC?
                                                                          • Versatile
                                                                          • Standards-based
                                                                          • Interoperable
                                                                          • Security-ready
                                                                          • No “pairing” required

Confidential ©2012 RedPrairie Corporation. All rights reserved.       4
Payments Have Early Momentum

 • Mobile payments getting
   the most attention
          > APAC and EMEA
          > Google is in early




Confidential ©2012 RedPrairie Corporation. All rights reserved.   5
NFC in the Supply Chain
 • NFC Data logger scans, reviews, and
   communicates all temperature data
 • Any NFC-enabled phone can
   scan tags/manage temperature
   data
          > Share with anyone in cold chain



Confidential ©2012 RedPrairie Corporation. All rights reserved.   6
Unilever: NFC and CPG
                                                                  • NFC chips embedded in posters
                                                                    > 300 posters around Reading, UK

                                                                  • Primarily younger target audiences
                                                                    > Lynx, Vaseline, Toni & Guy, Magnum

                                                                  • Tap posters with phone for content
                                                                    > Coupons, contests, video, product info



Confidential ©2012 RedPrairie Corporation. All rights reserved.       7
Singapore Commuters Tap to Buy
                                                                  • NFC-enabled spaces in 6 busy
                                                                    subway stations

                                                                  • Enabling 2M commuters to
                                                                    connect and transact
                                                                    > Taxis
                                                                    > Transit Guides and Tickets
                                                                    > Forever 21

Confidential ©2012 RedPrairie Corporation. All rights reserved.           8
Skylanders: NFC and FUN
 • Physical action figures
   interact with games
   via NFC “portal”
 • History and attributes
   stored with figures
 • Figures play on any
   console

Confidential ©2012 RedPrairie Corporation. All rights reserved.   9
•   Identification
                                                                                                            •   Time & Attendance
                                                                                                            •   Loyalty
                                                                                                            •   Transportation
                                                                                                            •   Inventory
                                                                                                            •   Physical Access
                                                                                                            •   Coupons & Offers


                        PAYMENT
                                                                    Unlimited                     TAG READING


                                                                    Potential


                        TICKETING

Confidential ©2012 RedPrairie Corporation. All rights reserved.
                                                                    700M
                                                                  NFC PHONES WILL SHIP IN 2016
                                                                                  10
                                                                                                 PEER TO PEER
Big Data
Unprecedented Number Crunching,
Unprecedented Insight




Confidential ©2012 RedPrairie Corporation. All rights reserved.   11
0110100010110111000110101010010101010101010101010101010101010101010101010
1010101000100101010001011110110100101001100110101010101010110100001111010
1110010100101001010010101010101011011010101010101010101010111101001010101
010101010101110101010000101010101000010100101010101010101010101010101010


   2,500,000,000,000,000,000
100101010110101010101010101010101010101010100101010101010101010101001101
0110100010110111000110101010010101010101010101010101010101010101010101010
1010101000100101010001011110110100101001100110101010101010110100001111010
1110010100101001010010101010101011011010101010101010101010111101001010101
                Bytes of Data are Created Every Day
010101010101110101010000101010101000010100101010101010101010101010101010
100101010110101010101010101010101010101010100101010101010101010101001101
0110100010110111000110101010010101010101010101010101010101010101010101010
1010101000100101010001011110110100101001100110101010101010110100001111010
                                  BIG DATA
1110010100101001010010101010101011011010101010101010101010111101001010101
          Large quantities of (typically) unstructured information that
010101010101110101010000101010101000010100101010101010101010101010101010
            can’t be processed or analyzed using traditional tools
100101010110101010101010101010101010101010100101010101010101010101001101
0110100010110111000110101010010101010101010101010101010101010101010101010
1010101000100101010001011110110100101001100110101010101010110100001111010
1110010100101001010010101010101011011010101010101010101010111101001010101
  Confidential ©2012 RedPrairie Corporation. All rights reserved.   12
010101010101110101010000101010101000010100101010101010101010101010101010
With Challenge…Opportunity
                                                                  Big data is an opportunity to
                                                                  mine for hidden patterns and
                     “Big data will
                  become a key basis
                    of competition,
                                                                  insights in new and emerging
                   underpinning new
                       waves of                                   types of data to answer
                  productivity growth,
                    innovation, and
                  consumer surplus.”
                                                                  questions that, in the
                    --McKinsey Quarterly
                                                                  past, were out of reach


Confidential ©2012 RedPrairie Corporation. All rights reserved.    13
Big Data: From the Front Lines

                                 “At the heart of the threat was our
                                 competitor’s ability to gather and analyze
                                 consumer sentiment and generate
                                 personalized recommendations across
                                 millions of customers.”
                                                                       Specialty Retail

Confidential ©2012 RedPrairie Corporation. All rights reserved.   14
Big Data: From the Front Lines

                                 “We tapped into the millions of relevant
                                 blog posts, social-media
                                 conversations, search term
                                 keywords, brand comparisons, and
                                 customer feedback postings to gain
                                 actionable insights.”
                                                                       Big Box Retail

Confidential ©2012 RedPrairie Corporation. All rights reserved.   15
Big Data: From the Front Lines

                                 “We combined sales data with medical-
                                 claims data and clinical data from a
                                 medical-record system and found ways to
                                 improve health outcomes and manage
                                 the total cost of care.”
                                                                       Pharma Manufacturer

Confidential ©2012 RedPrairie Corporation. All rights reserved.   16
Big Data’s Big Value Proposition
Agility
Making information transparent                                            Responsiveness
and usable at much higher frequency                                       Substantially improved timeliness
                                                                          of decision-driving data




       Targeting
       Ever-narrower segmentation of
       customers leads to much more
       precisely tailored products                                     Innovation
                                                                       Inform and improve the development
                                                                       of the next generation of products


Confidential ©2012 RedPrairie Corporation. All rights reserved.   17
Can GB Predict
                                                                       the Next Gaga?
                                                                       • Connecting social activity
                                                                         and music consumption

                                                                       • Aggregating and analyzing likes,
                                                                         plays, downloads, etc.
                                                                           > Primarily unstructured data

                                                                       • Learning how artists become
                                                                         stars by analyzing the ways
                                                                         people listen to music now

Confidential ©2012 RedPrairie Corporation. All rights reserved.   18
Augmented Reality
 Virtual Reality Gets Real




Confidential ©2012 RedPrairie Corporation. All rights reserved.   19
Augmented Reality Explained

                                                                  101 Main Street
                                                                  2 BR / 1 BA




                                         A live view of a physical environment augmented by computer-
                                          generated input such as sound, video, graphics or GPS data

Confidential ©2012 RedPrairie Corporation. All rights reserved.                     20
Augmented Reality Explained




Confidential ©2012 RedPrairie Corporation. All rights reserved.   21
“Recent” AR Inroads
 •     Prototyping
 •     Design
 •     Surgery
 •     Assembly
 •     Entertainment
 •     Gaming
 •     Navigation                                                      photo circa
 •     Sightseeing
                                                                       1937
Confidential ©2012 RedPrairie Corporation. All rights reserved.   22
Marketing Moves Beyond Novelty
                                                                       • Delivering useful
                                                                         information
                                                                       • Adding value
                                                                       • Influencing
                                                                         conversion rates


Confidential ©2012 RedPrairie Corporation. All rights reserved.   23
Breakthrough: Image Recognition
 • No marker required
 • Scan products for content
          > Games, nutrition, product
            details, etc.
 • “Infinite shelf space”


Confidential ©2012 RedPrairie Corporation. All rights reserved.   24
The Circular Economy
 A Critical Link to Sustainability?




Confidential ©2012 RedPrairie Corporation. All rights reserved.   25
The Limits of Linear Consumption
                        TAKE                                      MAKE                    SELL              DISPOSE
                                     Survival Requires Large Quantities of Easily
                                         Accessible Resources and Energy
                                                    Source: Ellen Macarthur Foundation        Source: Ellen Macarthur Foundation
                                                     Commodities Prices                               Price Volatility




Confidential ©2012 RedPrairie Corporation. All rights reserved.                          26
No Relief in Sight
                                                                       • Globalized Markets
                                                                       • Population Growth
                                                                       • Rising GDP in Emerging Areas
                                                                          > Middle Class Growth
                                                                       • Political Turmoil
                                                                       • Climate



Confidential ©2012 RedPrairie Corporation. All rights reserved.   27
Efficiency is No Longer Enough
              Reduce                                                                                                      Reuse


 Optimizing                                                                                                                              Optimizing
Components                                                                                                                                Systems
  Minimizing the                                                                                                                       Generating cyclical
 cradle-to-grave                                                          OPPORTUNITY                        Refurbish                  cradle-to-cradle
flow of materials                                                                                                                        “metabolisms”




                                                                                                                        Redistribute
                                 Recycle                          Reuse

                                                                                   Source: Ellen Macarthur Foundation



Confidential ©2012 RedPrairie Corporation. All rights reserved.               28
Core Principles of a Circular Economy
   1. Design out waste
             > Design for disassembly and reuse
   2. Commit to renewable energy to fuel entire product lifecycle
   3. Shift from “Consumers” to “Users”
             > Purchase the use of the product
             > Durable products: leased/rented/shared
             > When sold, incentives ensure returns



Confidential ©2012 RedPrairie Corporation. All rights reserved.   29
The Circle in Motion: Refurbish
 • Created Cat Reman in 1972
 • Annual impact:
          >      140 million lbs of products remanned
          >      130 million lbs of iron
          >      200,000 lbs. cardboard
          >      3.4 million lbs. wood
 • Zero landfill goal by 2020
 • 8-10% growth/yr since 2001


Confidential ©2012 RedPrairie Corporation. All rights reserved.   30
The Circle in Motion:
                                                                  Redistribute
                                                                  “Collaborative Consumerism”
                                                                   reaches the mainstream




Confidential ©2012 RedPrairie Corporation. All rights reserved.      31
Crowdsourcing
 Innovation Without Walls, Borders or Orders




Confidential ©2012 RedPrairie Corporation. All rights reserved.   32
Crowdsourcing,
                                                                  Explained
                                                                  Creating goods and services
                                                                  in close cooperation with
                                                                  customers by giving them
                                                                  direct input into what gets
                                                                  produced

Confidential ©2012 RedPrairie Corporation. All rights reserved.      33
Open Innovation at Work
                                                                  • $7.7 billion1
                                                                  • 200 million phones2

                                                                  • Linus Torvalds has written
                                                                    only ~2% of the code3
                                                                    1– Research and Markers | 2 – Juniper Research | 3 – Business Week




Confidential ©2012 RedPrairie Corporation. All rights reserved.            34
Doritos Crash the Super Bowl Party
 • 5,600 entries, 6 winners
          > 2 of top 10 game-day ads

 • Six commercials
 • Brand engagement
 • Expanded social networks

 • $1.4M in prizes



Confidential ©2012 RedPrairie Corporation. All rights reserved.   35
Crowd-Krafted Innovation

 • InnovateWithKraft.com
 • Open to suppliers
   and consumers
 • Numerous recent
   advancements
          > Esp. in packaging


Confidential ©2012 RedPrairie Corporation. All rights reserved.   36
Fiat Puts the “Me” in Mio
                                                                  • Fully crowdsourced Concept car
                                                                    > 17,662 registrants/10,000 ideas


                                                                  • Completely transparent process
                                                                    > All decisions/designs shared online

                                                                  • Dozens of ideas made production



Confidential ©2012 RedPrairie Corporation. All rights reserved.     37
Learn More at
                                                                       CommerceInMotion.com
                                                                       http://bit.ly/JEj1OG




Confidential ©2012 RedPrairie Corporation. All rights reserved.   38

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Trendcasting: Five Big Ideas that Have the Potential to Transform the Near Future of Commerce

  • 1. Trendcasting 5 Ideas that Have the Potential to Influence the (Near) Future of Commerce Confidential ©2012 RedPrairie Corporation. All rights reserved. 1
  • 2. Near Field Communications Looking Past Payments Confidential ©2012 RedPrairie Corporation. All rights reserved. 2
  • 3. NFC, Explained • Short-range wireless technology > “Tap and Go” • Smartphones gain instant access to data from any other NFC-enabled handset or NFC tag Confidential ©2012 RedPrairie Corporation. All rights reserved. 3
  • 4. Bluetooth, RFID, QR Codes… Why NFC? • Versatile • Standards-based • Interoperable • Security-ready • No “pairing” required Confidential ©2012 RedPrairie Corporation. All rights reserved. 4
  • 5. Payments Have Early Momentum • Mobile payments getting the most attention > APAC and EMEA > Google is in early Confidential ©2012 RedPrairie Corporation. All rights reserved. 5
  • 6. NFC in the Supply Chain • NFC Data logger scans, reviews, and communicates all temperature data • Any NFC-enabled phone can scan tags/manage temperature data > Share with anyone in cold chain Confidential ©2012 RedPrairie Corporation. All rights reserved. 6
  • 7. Unilever: NFC and CPG • NFC chips embedded in posters > 300 posters around Reading, UK • Primarily younger target audiences > Lynx, Vaseline, Toni & Guy, Magnum • Tap posters with phone for content > Coupons, contests, video, product info Confidential ©2012 RedPrairie Corporation. All rights reserved. 7
  • 8. Singapore Commuters Tap to Buy • NFC-enabled spaces in 6 busy subway stations • Enabling 2M commuters to connect and transact > Taxis > Transit Guides and Tickets > Forever 21 Confidential ©2012 RedPrairie Corporation. All rights reserved. 8
  • 9. Skylanders: NFC and FUN • Physical action figures interact with games via NFC “portal” • History and attributes stored with figures • Figures play on any console Confidential ©2012 RedPrairie Corporation. All rights reserved. 9
  • 10. Identification • Time & Attendance • Loyalty • Transportation • Inventory • Physical Access • Coupons & Offers PAYMENT Unlimited TAG READING Potential TICKETING Confidential ©2012 RedPrairie Corporation. All rights reserved. 700M NFC PHONES WILL SHIP IN 2016 10 PEER TO PEER
  • 11. Big Data Unprecedented Number Crunching, Unprecedented Insight Confidential ©2012 RedPrairie Corporation. All rights reserved. 11
  • 12. 0110100010110111000110101010010101010101010101010101010101010101010101010 1010101000100101010001011110110100101001100110101010101010110100001111010 1110010100101001010010101010101011011010101010101010101010111101001010101 010101010101110101010000101010101000010100101010101010101010101010101010 2,500,000,000,000,000,000 100101010110101010101010101010101010101010100101010101010101010101001101 0110100010110111000110101010010101010101010101010101010101010101010101010 1010101000100101010001011110110100101001100110101010101010110100001111010 1110010100101001010010101010101011011010101010101010101010111101001010101 Bytes of Data are Created Every Day 010101010101110101010000101010101000010100101010101010101010101010101010 100101010110101010101010101010101010101010100101010101010101010101001101 0110100010110111000110101010010101010101010101010101010101010101010101010 1010101000100101010001011110110100101001100110101010101010110100001111010 BIG DATA 1110010100101001010010101010101011011010101010101010101010111101001010101 Large quantities of (typically) unstructured information that 010101010101110101010000101010101000010100101010101010101010101010101010 can’t be processed or analyzed using traditional tools 100101010110101010101010101010101010101010100101010101010101010101001101 0110100010110111000110101010010101010101010101010101010101010101010101010 1010101000100101010001011110110100101001100110101010101010110100001111010 1110010100101001010010101010101011011010101010101010101010111101001010101 Confidential ©2012 RedPrairie Corporation. All rights reserved. 12 010101010101110101010000101010101000010100101010101010101010101010101010
  • 13. With Challenge…Opportunity Big data is an opportunity to mine for hidden patterns and “Big data will become a key basis of competition, insights in new and emerging underpinning new waves of types of data to answer productivity growth, innovation, and consumer surplus.” questions that, in the --McKinsey Quarterly past, were out of reach Confidential ©2012 RedPrairie Corporation. All rights reserved. 13
  • 14. Big Data: From the Front Lines “At the heart of the threat was our competitor’s ability to gather and analyze consumer sentiment and generate personalized recommendations across millions of customers.” Specialty Retail Confidential ©2012 RedPrairie Corporation. All rights reserved. 14
  • 15. Big Data: From the Front Lines “We tapped into the millions of relevant blog posts, social-media conversations, search term keywords, brand comparisons, and customer feedback postings to gain actionable insights.” Big Box Retail Confidential ©2012 RedPrairie Corporation. All rights reserved. 15
  • 16. Big Data: From the Front Lines “We combined sales data with medical- claims data and clinical data from a medical-record system and found ways to improve health outcomes and manage the total cost of care.” Pharma Manufacturer Confidential ©2012 RedPrairie Corporation. All rights reserved. 16
  • 17. Big Data’s Big Value Proposition Agility Making information transparent Responsiveness and usable at much higher frequency Substantially improved timeliness of decision-driving data Targeting Ever-narrower segmentation of customers leads to much more precisely tailored products Innovation Inform and improve the development of the next generation of products Confidential ©2012 RedPrairie Corporation. All rights reserved. 17
  • 18. Can GB Predict the Next Gaga? • Connecting social activity and music consumption • Aggregating and analyzing likes, plays, downloads, etc. > Primarily unstructured data • Learning how artists become stars by analyzing the ways people listen to music now Confidential ©2012 RedPrairie Corporation. All rights reserved. 18
  • 19. Augmented Reality Virtual Reality Gets Real Confidential ©2012 RedPrairie Corporation. All rights reserved. 19
  • 20. Augmented Reality Explained 101 Main Street 2 BR / 1 BA A live view of a physical environment augmented by computer- generated input such as sound, video, graphics or GPS data Confidential ©2012 RedPrairie Corporation. All rights reserved. 20
  • 21. Augmented Reality Explained Confidential ©2012 RedPrairie Corporation. All rights reserved. 21
  • 22. “Recent” AR Inroads • Prototyping • Design • Surgery • Assembly • Entertainment • Gaming • Navigation photo circa • Sightseeing 1937 Confidential ©2012 RedPrairie Corporation. All rights reserved. 22
  • 23. Marketing Moves Beyond Novelty • Delivering useful information • Adding value • Influencing conversion rates Confidential ©2012 RedPrairie Corporation. All rights reserved. 23
  • 24. Breakthrough: Image Recognition • No marker required • Scan products for content > Games, nutrition, product details, etc. • “Infinite shelf space” Confidential ©2012 RedPrairie Corporation. All rights reserved. 24
  • 25. The Circular Economy A Critical Link to Sustainability? Confidential ©2012 RedPrairie Corporation. All rights reserved. 25
  • 26. The Limits of Linear Consumption TAKE MAKE SELL DISPOSE Survival Requires Large Quantities of Easily Accessible Resources and Energy Source: Ellen Macarthur Foundation Source: Ellen Macarthur Foundation Commodities Prices Price Volatility Confidential ©2012 RedPrairie Corporation. All rights reserved. 26
  • 27. No Relief in Sight • Globalized Markets • Population Growth • Rising GDP in Emerging Areas > Middle Class Growth • Political Turmoil • Climate Confidential ©2012 RedPrairie Corporation. All rights reserved. 27
  • 28. Efficiency is No Longer Enough Reduce Reuse Optimizing Optimizing Components Systems Minimizing the Generating cyclical cradle-to-grave OPPORTUNITY Refurbish cradle-to-cradle flow of materials “metabolisms” Redistribute Recycle Reuse Source: Ellen Macarthur Foundation Confidential ©2012 RedPrairie Corporation. All rights reserved. 28
  • 29. Core Principles of a Circular Economy 1. Design out waste > Design for disassembly and reuse 2. Commit to renewable energy to fuel entire product lifecycle 3. Shift from “Consumers” to “Users” > Purchase the use of the product > Durable products: leased/rented/shared > When sold, incentives ensure returns Confidential ©2012 RedPrairie Corporation. All rights reserved. 29
  • 30. The Circle in Motion: Refurbish • Created Cat Reman in 1972 • Annual impact: > 140 million lbs of products remanned > 130 million lbs of iron > 200,000 lbs. cardboard > 3.4 million lbs. wood • Zero landfill goal by 2020 • 8-10% growth/yr since 2001 Confidential ©2012 RedPrairie Corporation. All rights reserved. 30
  • 31. The Circle in Motion: Redistribute “Collaborative Consumerism” reaches the mainstream Confidential ©2012 RedPrairie Corporation. All rights reserved. 31
  • 32. Crowdsourcing Innovation Without Walls, Borders or Orders Confidential ©2012 RedPrairie Corporation. All rights reserved. 32
  • 33. Crowdsourcing, Explained Creating goods and services in close cooperation with customers by giving them direct input into what gets produced Confidential ©2012 RedPrairie Corporation. All rights reserved. 33
  • 34. Open Innovation at Work • $7.7 billion1 • 200 million phones2 • Linus Torvalds has written only ~2% of the code3 1– Research and Markers | 2 – Juniper Research | 3 – Business Week Confidential ©2012 RedPrairie Corporation. All rights reserved. 34
  • 35. Doritos Crash the Super Bowl Party • 5,600 entries, 6 winners > 2 of top 10 game-day ads • Six commercials • Brand engagement • Expanded social networks • $1.4M in prizes Confidential ©2012 RedPrairie Corporation. All rights reserved. 35
  • 36. Crowd-Krafted Innovation • InnovateWithKraft.com • Open to suppliers and consumers • Numerous recent advancements > Esp. in packaging Confidential ©2012 RedPrairie Corporation. All rights reserved. 36
  • 37. Fiat Puts the “Me” in Mio • Fully crowdsourced Concept car > 17,662 registrants/10,000 ideas • Completely transparent process > All decisions/designs shared online • Dozens of ideas made production Confidential ©2012 RedPrairie Corporation. All rights reserved. 37
  • 38. Learn More at CommerceInMotion.com http://bit.ly/JEj1OG Confidential ©2012 RedPrairie Corporation. All rights reserved. 38