Taking Mobile Technology Beyond Bar Code in Retail

November 2012

Taking Mobile Beyond Barcode in Retail

© 2012 SAP AG. All rights reserved. 2

Key trends shaping the retail industry

Increasing on-line

competition

Increasing show-rooming

Increasing consumer

expectations

Increasing globalization

Mega discounters /

wholesalers

Rise of non-traditional

retailers

Social &

Technological

Consumerization of IT

Machine-to-machine

communication

Social networking as

primary communication

Market

Conditions

Economic &

Political

Economic paralysis

Rising costs and thinning

margins

Increasing global

regulation

Value shopping

Aging populations in

developed countries

Growth in emerging

economies

Changing

Demographics


The resulting drivers

Partners

Encourage local partner

networks that contribute

to margin

Implement consistent

services with local

partners, contractors,

suppliers, etc.

Improve/automate service

and product procurement

Manage inventory and

shelves more effectively

Drive superior service

levels

Maximize resource

utilization and individual

productivity

Increase time with

customers

Improve service levels

Promote safety and

security

Improve product

knowledge and technical

service skills

Customers

Increase customer

touches and build

customer satisfaction

Develop customer

intimacy and build

customer loyalty

Offer multiple shopping

channels

Ensure attractive prices

Position and upsell

private label goods

Workforce Management

Timely, reliable and

relevant analytics

Visibility to workforce,

partners, store

performance and

consumer trends

Higher sales per sq.mt

and drive market share

Ensure competitive

prices

Reduce cost of sales,

service, Increase

revenue and cash flow,


Successful retailers…

Personalizes experience

Provides faster access to

more product options

Improves product knowledge

Improves service levels

Recognize their people are their assets, their assets are mobile, and

their customers are on-the-go

Access targeted,

personalized information

Analyze mission-critical

activity

Make better decisions

Respond quickly to emerging

opportunities

Workforce Customers Management

They empower stakeholders with mobile solutions

Tears down data and

communication silos

Automates critical activities and

core business processes

Improves productivity

Increases customer touches


Deliver mobile customer service

applications on store employee

devices and customers’ own

devices

Improve operational efficiencies

by eliminating manual

processes and improving

communications

Improve decision making by

providing more real-time

information and communication

Result Result Result

Improved customer service/loyalty

Fewer lost sales

New mktg./sales opportunities

Larger average basket size

Less margin shrinkage

Faster response to markets

Improved ordering / shipping

Fewer out of stocks

Ability to sell inventory in other

physical locations

Improved inventory turns

Less time spent in back of store

More employees on the floor

More accurate and readily

available information

Managers unleashed to work on

the floor

Customers Store Operations Supply Chain

Successful retailers Harness the power of mobile to…


Mobile apps for core business processes

Back Office

Warehouse management

Shipping and receiving

Inventory movement

Cycle counts

Returns processing

Labeling and pricing

Procurement

Staffing and scheduling

Retail Floor

Product look up

In store reservation and pickups

Returns processing

Rounds and security

Product look up and suggestion

Merchandising audits

Shelf management

Remote

Home delivery

Home service

Marketing

Customer service

On-line shopping

Account mgmt.

Payment (mobile wallet)

Returns

Keep retail stores open, product moving and customers satisfied

Manufacturer Consumer Retailer Distributor Home Service

Shipper


Mobile analytics apps

Partner

Customer satisfaction

Service performance

After-market sales performance

Driver performance

Service tech performance

Employee

Customer 360

o Preference and buying habits

o Purchase history

o Cross-store and on-line history

Self performance

Real-time commission analyses

Executive

Store performance

Manager performance

Product performance

Shopper performance

Partner/ supplier performance

Revenue and collections

Expense and payables

EBIT, operating income, cash flow

Inventory management

Competitive analysis

Consumer trends

Transform the way we make decisions


Mobile Apps for Key Roles

Customers

Product and shelf look up

In-store/remote precision mktg.

o Location based services/offers

o Personalized offers/coupons

o Personalized product catalog

o Personalized product

recommendations

In-store self point-of-sale

Complaints / recommendations

Partners

Mobile notifications

o Service orders

o Delivery / installation

o Shipment

Routing

Handling instructions

Returns processing

Assisted precision mktg.

Store Associates

Point-of-sale

Assisted precision mktg.

o Clientelling

o Upselling / cross-selling

o Campaign execution

New employee on-boarding

Training and development

Time entry

Scheduling / leave requests

Customer support

Store Managers

Approvals

o Time and leave

o Merchandise orders

o Returns and discounts

Store walks

Complaint management

Opening and closing

Transform the way retailers market, sell and service

Social media based outreach Community-based workspaces Channel to the Channels


Mobile solutions virtualize business…

connect with customers

manage stores and employees

collaborate with supply chain

Mobile enables you to anytime, anywhere

Analytics

Customer Service

Supply & Service Chain

Store Operations

Customer

Know the customer

Look up products

Suggest purchases

Solve customer service issues

Mobilize POS

Locate stores/products

Find deals/specials/coupons

Get product details/suggestions

Access loyalty/payment info.

Unify cross-channel experience

Manage personnel

Manage products/inventory

Manage/secure facilities

Complete tasks/timesheets

Facilitate training

Improve decision making

Take action on stock situations

Roll out new merchandise

Ensure product placement

Improve home delivery/service


… accelerate change …

Customers

Store Ops Logistics

Connected

Disconnected

Real-Time

Respond faster and

proactively to customers

Improve order fulfillment efficiency

Enable multi-sourcing to multi-channel selling

Streamline returns processing

Respond instantly to changing market, demand, supply conditions

Product info anytime/ anywhere

Personalize real-time,

location-based offers

More time working w/ customers

No need to track loyalty cards,

credit cards, gift cards, receipts

Access real-time performance indicators Improve decision making

Marketing

Merchandising

Deliver complete multi-channel

shopping experience

Get real-time continuous

visibility to customers

Management

Manage product placement better

Keep employees on the selling floor

Unite on-line and brick &

mortar shopping experience

Faster and better home service/delivery


…and transform the traditional business

SAP for

CPG

Manufacturer

Bank

Distributor

Retailer

Manual

processes

No direct visibility

to end customer

Silos of

information

Traditional

communications

Call Center

Internet

Customer


… into a Better Run Business

Personal safety

& productivity

Intelligent

decisions

Improved

margins

Operational

visibility

Entire value chain powered by mobile enterprise processes

Mobile Processes

SAP for

CPG

Bank

Manufacturer

Distributor

Retailer Customer

Call Center

Internet


… into a Better Run Business

Mobile Interactions

Entire value chain connected in real-time

Mobile Processes

Streamlined

supply chain

Immediate

decisions

Improved

fulfillment

Value chain

visibility

Manufacturer

Bank

Distributor

Retailer Customer

Call Center


…into a fully integrated value chain

Entire ecosystem connected in real-time and powered by mobile processes

Silos of information

torn down Proactive &

predictive decisions

Customer

intimacy

360o view of

ecosystem

Mobile Interactions

Mobile Processes

Bank

Distributor Retailer Customer

Manufacturer Call Center

Internet


…and transform your entire ecosystem

New products and services

Funds freed up for investment

Community Consumers

Workforce Shareholders

Partners

Reduced prices

Improved quality of life

Less time on the phone asking

or waiting for service

Less service time on the road


Industry’s most complete portfolio of apps

• SAP Retail Store Ops Associate (planned)

• SAP Retail Store Ops Manager

• SAP On-Shelf Availability

• SAP In-store Inventory Management

• SAP Order Status

• SAP Learning Assistant

• SAP Interview Assistant

• SAP In-store Retail Suite (planned)

Clientelling – Cycle counts – In-store MIM

• SAP mCommerce for Retail (planned)

• SAP mLoyalty (planned)

• SAP Precision retailing

• SAP EH&S Safety

• SAP Service Manager by Syclo

• SAP Rounds Manager by Syclo

• SAP Precision Retailing

• SAP mCommerce for Retail (planned)

• SAP mLoyalty (planned)

And rapidly growing

SAP Finance mobile apps SAP Human Resources mobile apps SAP Procurement mobile apps

• SAP BusinessObjects Explorer Mobile

• SAP Business Objects Mobile BI

• SAP RealSpend

• SAP Sanctioned Party List

• SAP GRC Access Approver

• SAP Payment Approvals

• SAP Strategy Management

• SAP Service Manager by Syclo

Customers

Store Ops Logistics

Connected

Disconnected

Real-Time Marketing

Merchandising Management


Building solutions around most important personas

Mobile experience for store associate

Planned road map for 2012

SAP On-Shelf Availability mobile app, option for associate

SAP Retail Store Ops Associate mobile app

SAP Point-of-Sale, mobile version

Mobile experience for store manager

Planned road map for 2012:

SAP On-Shelf Availability mobile app, option for manager

SAP Retail Store Ops Manager mobile app

Mobile experience for consumers

SAP Precision Retailing solution

SAP Retail Mobile Commerce Platform


In-Store merchandising deployment options

SAP Merchandising for Retail Business Logic for In-

Store Merchandising

on

lin

e

Store

Head

Office

Retail Store Ops

Associate (November

2012)

SAP Mobile Platform

on

lin

e

off

lin

e

on

lin

e

Mobile In-Store

Inventory Management

(EHP2)

In-Store MIM

(EHP4&5)

POS DM on HANA

Retail Store Ops

Manager (Available)

On-Shelf Availability

(Early Adoption in Q3)

on

lin

e

on

lin

e


Empowering customers SAP Precision Retailing

Uses Cases

Generate store traffic with 1:1 personalization

at the point-of-decision

Understand consumer shopping context – Who,

Where what and when

Interpret consumer behavior by combining

profile and buying preferences with their current

shopping context

Send targeted offers, product info and

personalized recommendations

Business Value

Enhance consumer value, shopping experience,

satisfaction and loyalty - save money/time, get the

right product

Increase store traffic / basket size / conversion /

wallet share

Keep the store manager out on the sales floor

SAP’s industry leading mobile app for Precision marketing

SAP insights and references

This will help to convey our messaging to our

customers.

US based retailer

Deployed in the cloud, and powered by SAP’s industry

leading mobile app for crunching big data, using SAP Hana


Empowering store associates SAP Retail Store Ops Associate

Uses Cases

In-Store product lookup to answer any

customer question

Perform in-store markdowns

Make on-shelf inventory corrections and

transfer products

Perform ad-hoc inventory counts

Business Value

Increase productivity and customer satisfaction

Reduce lost sales

Optimize inventory accuracy and replenishment

Increase store sales and improve customer service by fingertip access to information

SAP’s industry leading mobile app for looking up products

and help customers with product information

SAP is mowing in the right direction.

US based Retailer


Empowering store associates and Store Managers SAP On-Shelf Availability

Uses Cases

Provide historic and real-time analyses based

on POS data

Analyze on-shelf availability (slow v. fast

movers, consumption peaks, etc.)

Check in real-time for on-shelf availability of

promotional and non-promotional products

View real-time perpetual store inventory levels

Business Value

Detect on-shelf availability situations and take

action

Optimize on-shelf availability and resource

deployment

Keep shelves stocked and baskets full

SAP’s industry leading mobile app for analyzing on-shelf

availability and preventing shortages

Powered by SAP’s industry leading mobile app for

crunching big data using SAP POS DM on HANA

This is an innovative solution and takes the classical approach to the next level.

US based Retailer


Empowering store managers SAP Retail Store Ops Manager

Uses Cases

• Real-time access to the most relevant store

performance KPIs - gross/net/weekly sales,

sales v. plan, etc.

• Monitor store performance while walking on the

sales floors

Business Value

Enables managers to spend more time on the

floor with customers and associates to improve

customer satisfaction and workforce productivity

Help managers to monitor store performance and

meet planned revenue

Keep the store manager out on the sales floor

SAP’s leading mobile app for monitoring the store

performance from the sales floor

Powered by SAP’s industry leading mobile app for crunching

big data using SAP POS DM on HANA

This is will definite help our store managers.

US based Retailer


Empowering store associates SAP Mobile In-Store Inventory Management

Uses Cases

Provide customer service with real time and

accurate inventory lookup

Perform cycle counts

Receive, transfer, and adjust inventories

Business Value

Keep your inventory moving

Ensure product is available when needed

Adjust inventory for theft and shrinkage

reasons

Keeps your shelves stocked and inventory moving

SAP’s industry leading mobile app for managing inventory

in retail stores


C….


Empowering customers SAP Retail Mobile Store Operations suite (planned)

Uses Cases

In-Store merchandising

Clientelling

Business Value

Increase productivity by providing

comprehensive mobile functions and empower

store associate with knowledge to support

customer and to drive sales and customer

satisfaction

Improve individual employee and store

operations efficiency

Effective inventory management.

Transform the way we do business with customers

SAP’s industry leading mobile app for transforming the

customer experience and improving service delivery

Integrate with SAP ERP, CRM, POS, SPR or leverage the

platform to integrate with non-SAP back ends


Empowering executives and store managers SAP BusinessObjects Explorer / Mobile BI

Uses Cases

Predictive analyses versus outdate reactive reports

Generate and view intelligent analytics on the go

Access and view “big” data in real time

View partner and supplier analyses

View store and workforce performance analyses

View customer analyses

Business Value

Utilize trend and threshold analyses to reduce

stock-outs, obsolescence, lots sales

View supplier analyses to negotiate and reduce

cost of goods and improve on-shelf availability

Leverage sales analyses to identify promotional

opportunities to increase store traffic

Transform the way we make decisions

SAP’s industry leading mobile analytics platform for

executives, field workers and customers alike

Generate real-time data-intensive mobile analytics powered

by SAP HANA and SAP enterprise mobility


Empowering customers SAP Retail Mobile Commerce Suite (planned)

Uses Cases

Easy-to-use mobile transaction channel

Uniform multi-channel experience

Account management, loyalty & rewards

Personalized product recommendations, coupons,

offers and promotions

Product catalog, shopping cart and buying experience

mWallet and mPayment (including pay at POS)

Post-sales service

Business Value

Acquire and engage customers

Expand relationships

Create loyalty

Reduce cost of servicing customers

Transform the way we do business with customers

SAP’s industry leading mobile app for transforming the

customer experience and improving service delivery

Integrate with SAP ERP, CRM, POS, SPR or leverage the

platform to integrate with non-SAP back ends


C…

What customers and analysts say


LoB/Industry Apps Customer/Partner Apps Analytics Apps

SAP Store - Mobile Apps

SAP Mobile Platform

Support for All

Popular Devices

Instant

Mobilization

Full-Service

Platform

Backend agnostic

End-to-end solution from SAP

Employees Customers Partners

Presentation Frameworks

Application Services

Foundation Services

Afaria Managed Mobility

RDS

Consulting

3rd Party Solutions SAP DBs Sybase 365


Analysts on SAP mobile solutions

Mobility Report

“Mobile Device Management is Dead.

Long Live Enterprise Mobile Management”

Winners Losers

SAP IBM

Antenna Oracle

Boxtone RIM

MDM is Dead – Long Live EMM!

Author: Chris Marsh | Co-Authors: Eugene Signorini

Yankee Group, June 2012

Magic Quadrant for Mobile

Application Development Platforms

Authors: Bill Clark, Ian Finley, Song Chuang

Gartner, 26 April 2012 ID:G00230529

http://maps.yankeegroup.com/ygapp/analyst/showAnalystBio/cmarsh

http://maps.yankeegroup.com/ygapp/analyst/showAnalystBio/esignorini

http://maps.yankeegroup.com/ygapp/analyst/showAnalystBio/esignorini


SAP has delivered value to retail

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SAP mobile value proposition for retailers Virtualize, accelerate and transform

Backed by scale

of SAP and partner

Ecosystem

Scale to a highly

distributed

infrastructure and

customer base

An SAP strategic

pillar

Largest development

effort in the industry

Broadest range of

supported devices –

With Syclo, SAP is

proven leader in

mobilizing core

business processes

Solid roadmap of

enhancements

Most complete

mobile solution in

the industry

Easily configurable

packaged apps for

miners

BYOD and app

store support for

non-mine workers

Transformative

solutions for

leadership

Accelerate your

decisions

and responses

Respond instantly

to changing market

conditions

Access real-time

performance

indicators

Get product and

customer info

anytime, anywhere

Streamline order

fulfillment and

returns processing

Deliver in-home

service faster and

better

Virtualize

your workforce,

customers, partners

The workforce is

no longer tethered

or confined

Customer and

partner touches

are continual and

interactive

Employees spend

more time on the

floor working with

customers

Transform the way

you do business, and

thus your ecosystem

Reduce the cost of

doing business

Tear down silos of

information

Develop a 360o

view of ecosystem

Make proactive

and predictive

decisions

Develop customer

intimacy

Personalize real-

time location

based offers

Mobile Innovation:

Thinking Beyond

the App

Click here to download…

1 2 3 4 5


How can SAP work with you?

Like to learn more about a specific solution?

. . . we can schedule a focused deep dive

Have an idea for a potential mobility solution?

. . . we can help refine the use cases and potentially

explore creation of a prototype

Need a robust business impact analysis for your

mobility investments?

. . . we can work with you to leverage our benchmarking

and value engineering capabilities

In the process of formulating your mobility strategy?

. . . we can assist you in the creation of a prioritized

mobility roadmap and strategy

Thank You!

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