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Fujitsu aims to transform the traditional store IT operating model. To do so, Fujitsu is offering end-to-end retail solutions, including store hardware, software, services and flexible infrastructure, priced on a pay-as-yougo subscription basis. The benefits for the retailer include reduced TCO, moving capital cost to operating cost, faster and lower cost technology updates and increased control over multiple vendors. Retail-as-a-Service is not confined to the store and will extend over time to include the wider enterprise including key business and back office systems.Using real customer deployments as examples, Richard Clarke, Vice President Global Retail Strategy, describes this new offering and how it will revolutionize the way retailers develop, deploy and pay for their core IT solutions.
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Driving Business P f i h Performance with Industry SolutionsIndustry Solutions
Room 4
Driving Business Performance with Industry Solutions – Room 4
Reshaping IT Retail as a Service – Transforming the Store IT Operating Model
Richard ClarkeRichard ClarkeVice President Global Retail Strategy Fujitsu
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Retail as a Service (RaaS)Retail as a Service (RaaS)Transforming the Store IT Operating Model
Richard Clarke, VP Global Retail Strategy
November 2011
Copyright 2011 FUJITSU
What areWhat are
YYouexpecting today?
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What are you expecting today?
Traditional sales pitchC l diComplex diagramsNo ‘real life’ examplespNot clear why it is relevant
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Why I think you should listen…
New relationship between retailer and IT providerNew method to buy and pay for your ITNew way to upgrade your IT with no capexy pg y pNew way to reduce Total Cost of OwnershipNew way to simplify your IT operationsNew way to simplify your IT operations
6 Copyright 2011 FUJITSU
Responding to a real customer need…
Renew the Point of Sale system International Specialty Retailer
Increase sales with new PoS functionality
Retailer3,200 stores in US and rest of the world
Reduce Total Cost of OwnershipFind the capex to pay for new IT
Large franchisee baseEstimated ~$3B in annual revenues
Flex your IT to match trading cyclesSimplify IT model across store base
annual revenuesFujitsu has been PoS partner since 2005Seeking a new PoSp y Seeking a new PoS solution model and multi-channel functionalityfunctionality
d t k ith IT t th t t
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…and to work with an IT partner they can trust
What is Retail-as-a-Service?
I said no complex diagrams
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…I said no complex diagrams
Retail-as-a-Service is…
‘Package-based’ store IT service from Fujitsu No capex required for IT upgradeAssets and risk move to IT providerPay per use/subscription commercial modelMultiple products and deployment models availableMultiple products and deployment models availableBusiness-based service level agreementsO id lti l t tOne provider vs. multiple contracts
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…in other words a completely new way to buy and run IT
What are the Key Components?
IT Products & Services Menu IT Support SLAs
• Provision of best of breed IT• Products, infrastructure, cloud• Deployment options• Deployment options
Pay per Use Model IT Products & ServicesPay per Use Model• Shift from capex to opex• IT aligns with revenue overt time
Outcome-Based Contracting = € x per store per month
IT BlueprintHosting
• Business-led SLAs• Assets and risk shift to IT
providerRetail as a Service
from
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provider
What is accelerating Change?
Retailers need to upgrade but reluctant to borrowRetailers need to flex IT to business need
Financing
Financing/leasing options IT providers seeking annuity deals
IT agility is key On demand supply and controland controlPay per use models
R t il t t f t iliRetailers want to focus on retailing not managing IT vendors Speed of business change incl. multi-channel retailing
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multi-channel retailingMultiple vendors
Is RaaS a real service today?
New service proposition marketed and primed by Fujitsu Live customers not a concept but a road tested solutionLive customers – not a concept but a road tested solutionPartners – adding new IT solution partners each dayRoadmap – building out a new ‘as a service’ model via our cloud assets and capabilities
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Case Study: Specialty Store
Introduce RaaS idea
Upgrade IT with minimal capexImprove business performanceMake life simple – service and cost
End 2010
Introduce RaaS ideaSelected PoS solutionStore IT managed serviceSubscription-basedCl d h b id l ti
Agree store roll outAgree business-led SLAsIT h/w financing Contracting term Cloud hybrid solution Contracting term
March 2011October 2011
Retailer/Fujitsu financial criteriaOpen and honest negotiations
Do-learn-do – refine the solution blueprintNeed for commitment both sides
May 2011June 2011
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Open and honest negotiationsNo stores/years to make it work both sides
Need for commitment both sidesProof of Concept – 4-7 stores
What have been Customer Benefits?
BUSINESS
-Improved sales
FINANCIAL
-No capex required
SERVICE
-Shift in service i k t IT t
CONTROL
-Control over -Improved channel management
-Improved store efficiency
-Reduced TCO-Predictable cost-IT cost matches revenue
risk to IT partner-Business-led outcomes
multiple vendors- Control of technology obsolescencee c e cy
-Speed to benefitrevenue
-Shared assets-New focus on operations
TRANSFORMED STORE IT OPERATING MODELTRANSFORMED STORE IT OPERATING MODEL•Capex to opex
•Flexibility leading to control•Revenue-generating solutions now
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…and a recognition that IT can be managed completely differently
g g
What are the Customer Concerns?
Costs of Change
Meeting My IT NeedsMeeting My IT Needs
Security and Control
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…which need to be addressed in the solution blueprint and contract terms
How to Get Started?
CommitmentTrust
Validation
CommitmentCommit to SLAsGovernance modelProof of concept
Explore the solution blueprintIT functional d fi iti d
UnderstandingBoth retailer and
definition and deployment optionsRun the commercial models
Both retailer and the IT partner need to be clear on objectives and outcomes Flexibility
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outcomes y
Why Fujitsu?SCALE - global IT products and services provider – ranked No.3 ($42B)
GLOBAL - Japanese parent, operating in over 70 countries
RETAIL IT – choice in end to end IT products and services for retail consulting/business case developmentPoS solutions (hardware, software and service)( , )store managed servicescore IT infrastructure (datacenters and services)retail applications (consulting & SI)
‘OWN THE STORE’ – we have unrivalled coverage of store IT solutions and services
SERVICE EXCELLENCE f i ti d b iSERVICE EXCELLENCE - focus on service aggregation and business-based outcomes
INNOVATION - leader in innovation ($2 8B R & D) and continuousINNOVATION leader in innovation ($2.8B R & D) and continuous improvement
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Fujitsu manages Tesco UK store IT
Fujitsu runs and supports store PoS h/w and s/w for
Coles supermarkets
Fujitsu supports Starbucks in US and Far East in store IT
Fujitsu supports and services the SCO solutions
for Kroger food stores
...supported by our lead in Cloud Services…
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…as we build out this service-led model for retailers
What I hope you learnt today…
New relationship between retailer and IT providerproviderNew method to buy and pay for your ITN t d IT ithNew way to upgrade your IT with no capexNew way to reduce Total Cost of OwnershipNew way to simplify your IT operations
19 Copyright 2011 FUJITSU
Thank you!
Richard Clarke, VP Global Retail StrategyRi h d 2 Cl k @ k f [email protected]
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