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Peak at NRF 2020: Retail's Big Show

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Peak at NRF 2020: Retail's Big Show

  1. 1. AI/ML: Breaking through the hype to deliver strong business outcomes Tom Litchford, WW Retail Leader, AWS Richard Potter, CEO, Peak Tom Summerfield, Head of Commerce, Footasylum
  2. 2. © 2020 Amazon Web Services, Inc. or its affiliates. All rights reserved 40% of digital transformation initiatives supported by AI in 2019 —IDC 2018 InnovationDecision making Customer experience C E N T E R P I E C E F O R D I G I T A L T R A N S F O R M A T I O N Business operations Competitive advantage
  3. 3. © 2020 Amazon Web Services, Inc. or its affiliates. All rights reserved The AWS ML Stack Broadest and most complete set of Machine Learning capabilities VISION SPEECH TEXT SEARCH CHATBOTS PERSONALIZATION FORECASTING FRAUD DEVELOPMENT CONTACT CENTERS Ground Truth Augmented AI ML Marketplace Neo Built-in algorithms Notebooks Experiments Model training & tuning Debugger Autopilot Model hosting Model Monitor Deep Learning AMIs & Containers GPUs & CPUs Elastic Inference Inferentia FPGA Amazon Rekognition Amazon Polly Amazon Transcribe +Medical Amazon Comprehend +Medical Amazon Translate Amazon Lex Amazon Personalize Amazon Forecast Amazon Fraud Detector Amazon CodeGuru AI SERVICES ML SERVICES ML FRAMEWORKS & INFRASTRUCTURE Amazon Textract Amazon Kendra Contact Lens For Amazon Connect SageMaker Studio IDE NEW NEW! NEW! NEW! NEW! NEW! NEW! NEW! NEW! NEW! NEW! Amazon SageMaker
  4. 4. © 2020 Amazon Web Services, Inc. or its affiliates. All rights reserved M A C H I N E L E A R N I N G I S H A P P E N I N G I N C O M P A N I E S O F E V E R Y S I Z E A N D I N D U S T R Y Tens of thousands customers have chosen AWS for their ML workloads | More than twice as many customers using ML than any other cloud provider
  5. 5. +4% YoY growth +3% YoY growth US retail sales UK retail sales *Source: Securities and Exchange Commission (SEC)*Source: ONS It’s not all doom and gloom
  6. 6. We are Footasylum Creativity connects our bricks, clicks and kicks. • Through our stores, website and own brands, we’re story tellers, intent on pushing boundaries. • We became a part of our consumers’ community: urban style leaders who drive trends and do things our own way. • Endorsed by this community of tribes we’re young and agile – never straight laced.
  7. 7. …more about us • Digital commerce accounts for around 35% of overall revenue currently • Strategy of store openings has been changed with a stronger focus on digital side of business moving forward 70Stores
  8. 8. What we were looking to achieve 1. Halting bifurcation of physical and digital retail 2. Create a single consumer view 3. Positively affecting EBITDA contribution with an omnichannel approach 4. Personalisation, over everything 5. To be better connected… +
  9. 9. Retailers need to be better connected Context ControlConvenience 1 2 with customers
  10. 10. Retailers need to be better connected Context ControlConvenience 1 2 …and internally too. Marketing Supply chainMerchandising
  11. 11. Connected retail isn’t easy Understand your consumer Ensure efficient delivery Understand product interactions 1m+ consumers 60+ stores 25k products 3x commerce channels Omnichannel fulfillment
  12. 12. AI?
  13. 13. Think big, start small, act fast Ideas TestWorkshop We came with a clear vision & explored all opportunities We mapped out data flows and systems and aligned to our business processes Agreed KPIs with defined ROIs alongside our wider business trading strategies Review & Refine Continually review and refine using machine learning and data science resource 1 32 4
  14. 14. Hyper-personalisation Social Advertising: Driven by predictors in Single Customer View Customers receive target content using Message Personalisation Increase purchase frequency Continual AI feedback loop... Personalisation Target audience list and content deployed on social channels using Customer Acquisition Increase social engagement and acquisition for less spend. AI System With Customer AI
  15. 15. Rapid time to value increase in digital revenues reduction in customer acquisition costs increase in click-through rate on ads return on ad spend (ROAS) 72% 84% 10X28% Hyper- personalisation Data-driven social campaign Facebook ad optimisation Customer acquisition BAU use via revenue driving channels has increased Acquiring new customers through unified social media user preferences Evolved into a multi- faceted product recommendation engine Advanced segmentation of existing customer database via campaigns More to come... Month 1 Month 12
  16. 16. What’s next? …
  17. 17. The AI stack for retail
  18. 18. AI supports connected retail Makes sense of data Supports the three Cs and puts consumer first Connects data, workflows and functions Optimizes supply and demand
  19. 19. From hype to reality Context Convenience Hyper-personalized marketing comms Recommendations and targeted promos AI powers buying decisions Warehouse & labor optimization Customer expectations Control AI System
  20. 20. Built to deliver outcomes
  21. 21. The Peak AI System The full-stack AI System, built to deliver AI-driven outcomes across an enterprise. An intelligence layer across the enterprise
  22. 22. Customer stories Taking AI from hype to reality
  23. 23. Customer AI Get more from your marketing CONTEXT Message personalization Recommendation engine AI driven social media targeting HYPER-PERSONALIZATION = SALES Higher return on ad spend Increased conversion and higher AOV Reduced churn, increased campaign revenues PREDICTION Customer data Predictive Customer View +
  24. 24. 28%Increase in digital revenues 10xReturn on add spend (ROAS) ACCELERATING GROWTH CONTEXT
  25. 25. Demand AI CONVENIENCE AI-driven demand planning and optimization Increased return on capital Improved efficiency and CX Higher margins, faster sell through Customer data Predictive Demand View Markdowns and promotions Inventory allocation Buying optimization Assortment OPTIMIZATION = IMPROVE PROFITABILITYPREDICTION +
  26. 26. 4xIncrease in return on capital employed (ROCE) 18%Reduction in stock levels MAJOR ASSET SAVINGS & REVENUE GROWTH CONVENIENCE
  27. 27. Supply AI Fulfil demand at reduced costs CONTROL Logistics optimization Workforce planning Warehouse optimization Reduced stock movement costs Minimized labor costs Increased fulfilment efficiency Customer data Predictive Supply View OPTIMIZATION = IMPROVE PROFITABILITYPREDICTION +
  28. 28. 5%Improvement in efficiency Fast fashion retailer CONTROL
  29. 29. GET IN TOUCH richard.potter@peak.ai TO RECEIVE: Your personalized report Highlighting two areas where we can help Quantifying the value of your AI opportunity AI: Powering the future of retail AI: Powering the future of retail How big is your AI opportunity? Peak.ai
  30. 30. Thank You! Tom Litchford, WW Retail Leader, AWS Richard Potter, CEO, Peak Tom Summerfield, Head of Commerce, Footasylum

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