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Ten Disruptive Digital Trends Retailers Need To Know

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The retail industry is evolving with smarter technology. See what disruptive digital trends retailers need to know.

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Ten Disruptive Digital Trends Retailers Need To Know

  1. 1. 1 | TENDISRUPTIVE DIGITAL TRENDS RETAILERS NEED TO KNOW Oliver Guy Retail Industry Director “The worlds of “e-commerce” and “brick and mortar” retail are merging with retailers aspiring to deliver a seamless omni-channel experience for their customers. Mobile, Cloud, Analytics and Social Media will move towards being fully integrated into a unified merchandising approach that vastly improves customer engagement…
  2. 2. 2 | TENDISRUPTIVE DIGITAL TRENDS RETAILERS NEED TO KNOW Oliver Guy Retail Industry Director The notion that “the store is dead” is not, in my opinion, the future – rather, stores will become highly technology-enabled to deliver a super-personalized customer experience and become the hub of omni-channel customer-centricity. These 10 new predictions highlight my view of the retail industry in the coming year…”
  3. 3. 3 | #1 FEWER STORES MORE STUFF
  4. 4. 4 | Brick and mortar stores will add fewer new outlets as they dramatically reinvent themselves to address OMNI-CHANNEL CHALLENGES, and offer more services… #1 FEWER STORES MORE STUFF
  5. 5. 5 | Brick and mortar stores will add fewer new outlets as they dramatically reinvent themselves to address OMNI-CHANNEL CHALLENGES, and offer more services… ① Endless aisle give customers access to ever increasing assortment #1 FEWER STORES MORE STUFF
  6. 6. 6 | Brick and mortar stores will add fewer new outlets as they dramatically reinvent themselves to address OMNI-CHANNEL CHALLENGES, and offer more services… ① Endless aisle give customers access to ever increasing assortment ② Marketplace initiatives increase assortment where retailers don’t carry inventory themselves #1 FEWER STORES MORE STUFF
  7. 7. 7 | Brick and mortar stores will add fewer new outlets as they dramatically reinvent themselves to address OMNI-CHANNEL CHALLENGES, and offer more services… ① Endless aisle give customers access to ever increasing assortment ② Marketplace initiatives increase assortment where retailers don’t carry inventory themselves ③ Hub & Spoke approach allows smaller stores to supply broader assortment #1 FEWER STORES MORE STUFF
  8. 8. 8 | Brick and mortar stores will add fewer new outlets as they dramatically reinvent themselves to address OMNI-CHANNEL CHALLENGES, and offer more services… ① Endless aisle give customers access to ever increasing assortment ② Marketplace initiatives increase assortment where retailers don’t carry inventory themselves ③ Hub & Spoke approach allows smaller stores to supply broader assortment ④ Home delivery and collection from stores #1 FEWER STORES MORE STUFF
  9. 9. 9 | #2 IT’S ALL ABOUT YOU
  10. 10. 10 | #2 IT’S ALL ABOUT YOU Real-time CUSTOMER CENTRICY comes of age
  11. 11. 11 | #2 IT’S ALL ABOUT YOU ① More data sources will improve targeting Real-time CUSTOMER CENTRICY comes of age
  12. 12. 12 | #2 IT’S ALL ABOUT YOU Real-time CUSTOMER CENTRICY comes of age ① More data sources will improve targeting ② Technology will aid improved context to provide offers at store ingress, rather than the exit
  13. 13. 13 | #3 THE PRICE IS RIGHT
  14. 14. 14 | #3 THE PRICE IS RIGHT DYNAMIC pricing will move from the web to “in-store”
  15. 15. 15 | #3 THE PRICE IS RIGHT DYNAMIC pricing will move from the web to “in-store” Consumer response models + real-time inventory + real-time in-store analysis + connectivity + electronic shelf edge labels = real time pricing capability
  16. 16. 16 | #4 MISSION CONTROL FOR OMNI-EVERYTHING
  17. 17. 17 | Retailers will need a centralized mission control #4 MISSION CONTROL FOR OMNI-EVERYTHING
  18. 18. 18 | Retailers will need a centralized mission control ① Consumer choice means the customer journey will move across channels even more ② Operations across channels needs high levels of automation along with central visibility and control #4 MISSION CONTROL FOR OMNI-EVERYTHING
  19. 19. 19 | #5 YOU WILL MEET A TALL DARK STRANGER…
  20. 20. 20 | #5 YOU WILL MEET A TALL DARK STRANGER… Predictive analytics will be used to improve operational performance
  21. 21. 21 | #5 YOU WILL MEET A TALL DARK STRANGER… Predictive analytics will be used to improve operational performance Predictive Analytics + Real-Time Analytics = Productivity Potential
  22. 22. 22 | #5 YOU WILL MEET A TALL DARK STRANGER… Predictive analytics will be used to improve operational performance Predictive Analytics + Real-Time Analytics = Productivity Potential ① Manage Queues
  23. 23. 23 | #5 YOU WILL MEET A TALL DARK STRANGER… Predictive analytics will be used to improve operational performance Predictive Analytics + Real-Time Analytics = Productivity Potential ① Manage Queues ② Reduce Inventory
  24. 24. 24 | #5 YOU WILL MEET A TALL DARK STRANGER… Predictive analytics will be used to improve operational performance Predictive Analytics + Real-Time Analytics = Productivity Potential ① Manage Queues ② Reduce Inventory ③ Serve Customer
  25. 25. 25 | #6 THE INTERNET OF TOTAL SATISFACTION
  26. 26. 26 | #6 THE INTERNET OF TOTAL SATISFACTION The store of the future will leverage the Internet of Things to power Customer Centricity
  27. 27. 27 | #6 THE INTERNET OF TOTAL SATISFACTION The store of the future will leverage the Internet of Things to power Customer Centricity Intelligent use of sensors will enable: ① Inventory reduction ② Improved on-shelf availability ③ Queue reduction ④ Streamlined order pick up ⑤ Real-time, personalized promotions
  28. 28. 28 | #7 IMMERSION THERAPY
  29. 29. 29 | #7 IMMERSION THERAPY Augmented In-Store Reality
  30. 30. 30 | #7 IMMERSION THERAPY Augmented In-Store Reality Technologies such as Microsoft’s Hololens and Oculus Rift will enable retailers to show their products in more detail and provide a much more immersive experience
  31. 31. 31 | #8 CLEAN UP ON AISLE THREE
  32. 32. 32 | #8 CLEAN UP ON AISLE THREE Retailers will use technology to monitor stores
  33. 33. 33 | #8 CLEAN UP ON AISLE THREE Retailers will use technology to monitor stores
  34. 34. 34 | #8 CLEAN UP ON AISLE THREE Retailers will use technology to monitor stores ①Improved associate productivity
  35. 35. 35 | #8 CLEAN UP ON AISLE THREE Retailers will use technology to monitor stores ①Improved associate productivity ②Improved inventory visibility
  36. 36. 36 | #8 CLEAN UP ON AISLE THREE Retailers will use technology to monitor stores ③ Focus on in-store productivity means greater use of technology ①Improved associate productivity ②Improved inventory visibility
  37. 37. 37 | #8 CLEAN UP ON AISLE THREE Retailers will use technology to monitor stores ③ Focus on in-store productivity means greater use of technology ①Improved associate productivity ②Improved inventory visibility ④ Multiple sensor feeds give real-time view of store operations to aid resource allocation
  38. 38. 38 | #9 BUY ME NOW!
  39. 39. 39 | #9 BUY ME NOW! Buy buttons will appear in MORE places
  40. 40. 40 | #9 BUY ME NOW! Buy buttons will appear in MORE places New shopping apps, on-line news articles, new games and a myriad new venues will create new challenges in understanding inventory and orchestrating orders for these new retail intermediaries as well as the retailers supporting them
  41. 41. 41 | #10 LAST ITEM IN STOCK Understanding REAL-TIME Inventory will become REAL
  42. 42. 42 | #10 LAST ITEM IN STOCK Understanding REAL-TIME Inventory will become REAL Consumers want to understand retailer inventory before buying to satisfy their desire for INSTANT GRATIFICATION
  43. 43. 43 | #10 LAST ITEM IN STOCK Understanding REAL-TIME Inventory will become REAL Consumers want to understand retailer inventory before buying to satisfy their desire for INSTANT GRATIFICATION
  44. 44. 44 | #10 LAST ITEM IN STOCK Understanding REAL-TIME Inventory will become REAL Consumers want to understand retailer inventory before buying to satisfy their desire for INSTANT GRATIFICATION Retailers will need to connect to multiple inventory sources to gain a common view and a complete stock picture so they can DELIGHT THEIR CUSTOMERS
  45. 45. 45 | © 2015 Software AG. All rights reserved. For internal use only About Oliver Guy Oliver is Retail Industry Director at Software AG. Oliver advises and supports retailers across the globe understanding retail technology solutions and how they can solve problems, drive growth, minimize risk and reduce cost as the industry transforms. Oliver has over 20 years experience working with technology; he has spent 15 of these years working with retailers around the world to improve their business through the use of innovative technology solutions. Learn more about Software AG’s retail solutions: www.SoftwareAG.comretail.
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