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Multi Channel Retailing

Multi Channel Retailing. Sandana Kichenane Microsoft EMEA EMEA RETAIL INDUSTRY MANAGER sandanak@microsoft.com. Agenda. Multi-channel Retail business challenges Where is the market going? Microsoft MCR proposal Proof by References OTTO Call to actions.

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Multi Channel Retailing

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  1. Multi Channel Retailing Sandana Kichenane Microsoft EMEA EMEA RETAIL INDUSTRY MANAGER sandanak@microsoft.com

  2. Agenda • Multi-channel Retail business challenges • Where is the market going? • Microsoft MCR proposal • Proof by References • OTTO • Call to actions

  3. Some things in retail never change … • Right merchandise • in the right place • at the right time • at the right price

  4. While others seem to continually change … Technology Changes Customer Demands Competitive Pressures Regulation Efficient collaboration with Suppliers Results

  5. Multi-channel retailing enables a retailer to provide a coordinated, customized and integrated shopping experience across multiple customer access points including the store, web site, catalogue, TV, new smart devices, and call center What is Multi-Channel Retailing? In order to successfully deliver a multi-channel strategy, retailers must: • Target most valuable customers • Invest in integration • Align organizational structure • Streamline partner communication

  6. Increased Technology Engagement • Customer Self-Service • Market Insight & Product Info • Channel Resource Optimization • Increased Integration Investment • All Customer Interactions Valued Multi-Channel Industry Trends

  7. Customer have access to these devices

  8. Product Research Community Referral • Headphone • MP3 Player • Monitor • CD • Battery Smart Device Wish List In Store Pick-Up One Single Customer Transaction! What Customers Expect Look for Referrals List Flexible Coordinated Store Favorite Items Customized Transparent Pick Up Immediately

  9. “Multi-channel retailers’Internet sales are growing faster than that of Internet-only retail sales. This suggest that synergies among channels have a stimulating effect on sales.” - VP Industry Analysis, comScore Networks (2005) Multi-channel shopping has truly arrived –65% of consumers have researched a product online and purchased that product offline. Of those people, 51% have cross-channel shopped in the past three months, influencing in-store sales of more than $100 billion.” - Analyst, Forrester (2004) “Retailers that cater to multi-channel shoppers report major benefits.  These retailers posted an aggregate year-over-year sales growth rate of about twice that of other retailers in the2004 holiday period.” – Analyst, AMR (2005) “To execute any multi-channel strategy, retailersmust have a baseline of integration between core systems. This means that it’s unrealistic to plan for multi-channel features like sites that display real-time, in-store inventory or order status information if your inventory and order management tools are siloed across channels.” - Analyst, Forrester (2004) Leveraging the Internet in a broader fashion than simple e-commerce. Web sites of the future should be extensions of a retailer's other channel efforts, creating an environment for customers that allows them to research, shop, buy, track orders and return whatever they want, wherever they want – Analyst, Gartner (2005) The Industry Perspective Confirmations… “…The exponential growth in customer touch points means that an understanding of customer interactions is as critical to cross-channel strategy as are transactions for the following two reasons: 1) there is important behavioral information impounded in a customer interaction even if (or perhaps especially if) it does not result in a transaction; and 2) organizations that do not tightly enforce consistency across every channel…risk compromising their brand equity .” - MetaGroup (2004) Retailers are being challenged to integrate the data they collect on customers as they shop across channels. This requires a level of organizational and technological integration that recent research indicates many retailers have yet to achieve. - Analyst, eMarketer Outlook

  10. Multi-channel IPSS building blocks, Scope

  11. Multi-Channels for Customers Multi-Channels for Retailers Multi-Channel Across the Enterprise External Internal Employees Analytics Systems Partners Analytics Partners Smart Devices Store Employees Business Activity Monitoring CustomerOrderData Suppliers eCommerce Catalog Customers Store Call Center Business Intelligence Customerprofiles Financial Institutions Store Smart Devices Catalog IT Support DataWarehousingTools ClickStreamData Customers Call Center Employees Systems Call Center WebMaster Supply ChainData Logistics eCommerce

  12. Commerce Server 2006 Architecture

  13. RFID “ConnectedCustomers” “ConnectedPartners” “ConnectedEnterprise” Multi-channel Retail solutions MS Multi-Channel Retail Solutions Catalog Call Center Store Smart Devices eCommerce Vendor ManagedFulfillment EAI Business Process Automation Partner SupportedSelection B2B AutomatedMessaging Management & Monitoring InventoryManagement B2B VirtualCatalog

  14. “SQL Server has scaled with our growth and is consistently reliable. It has become an enterprise wide mission critical tool that we couldn’t do without.” Jon Higgins, Head of IT, Tesco.com Reliable and Scalable Technology Becomes Mission-Critical Tool for World Leading Online Grocery Retailer • Started e-commerce in 1997 • Wanted to start small and growth • Integrated with the store business • Wanted a flexible, innovative E-commerce platform • Microsoft ecommerce platform, • Microsoft .Net environement • Microsoft SQLserver 2000 • 3000 orders/Hour • 150 000 orders/week • 1,4 B$ in 2004 from 286 M$ in 2000 • Customers are satisfied • Adding RFID and other innovations

  15. FNACMusic.com • Innovation in business • Close to consumer tastes • Develop new channel • Contribute to the growth • Support of artists • 1 M titles in 2005 • On Microsoft .NET platform • Using CS2002 • Developed with VS.NET • MS Music download technologies (MS WMA) • Capacity to fight piracy (MS DRM) • CSC as partner

  16. …. Using Microsoft Media Center PC we’re bringing the power of TV and computers together for our customers and enable them with greater shopping experience • Develop online business • Make it simple and easy • Bring more value for customers • Bring innovative ideas and services • Microsoft Media Center PC technology • Microsoft ecommerce platform • Microsoft .Net environement • Microsoft SQLserver 2000 • New consumer channel • Up-selling and customer satisfaction • Growth of the on-line business

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