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Make Impactful Real-Time Decisions with Capgemini’s Retail Apps May 15, 2013 – Orlando, FL.

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Presentation on theme: "Make Impactful Real-Time Decisions with Capgemini’s Retail Apps May 15, 2013 – Orlando, FL."— Presentation transcript:

1 Make Impactful Real-Time Decisions with Capgemini’s Retail Apps May 15, 2013 – Orlando, FL

2 2 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15 th May, 2013 I NTRODUCTIONS Mike Price Capgemini, North America Practice Leader, SAP Business Analytics and Technology e. m. +1 (770) Erik de Veer Capgemini, Global Sector Consumer Products & Retail Global Leader, SAP Retail and Fashion Solutions e. m

3 3 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15 th May, 2013 A GENDA  Background and Introductions  Retail Business Challenges  What are Extreme Applications for Retail?  Examples: Market Basket Analysis Mark Down Management Next Best Action, Targeted Promotions  Q&A

4 Retail Business Challenges

5 5 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15 th May, 2013 The challenge of combining customer demand, product availability, and margin…to remain competitive

6 6 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15 th May, 2013 Mega Trends driving Transformation in the Retail Industry… Increased Urbanization Aging Population Increasing Spread of Wealth Increased Impact of Consumer Technology Adoption Increase in Consumer Service Demands Increased Importance of Health and Wellbeing Growing Consumer Concern about Sustainability Shifting of Economic Power Scarcity of Natural Resources Increase in Regulatory Pressure Rapid Adoption of Supply Chain Technology Capabilities Impact of Next- Generation Information Technologies

7 7 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15 th May, 2013 Marketing paves the way for IT Marketing paves the way for IT New customer behaviors require real-time insight Retail is always on, 24/7 Social and mobile commerce are the new norm Customers are ‘competitor savvy’ and other offers are just a click away Omni-channel requirements and capabilities (i.e. click/collect) Omni-channel requirements and capabilities (i.e. click/collect) Data growth and the combination of structured/unstructured data New heartbeat in category management and merchandising Personalized offers require dynamic promotions Maintaining margin and profitability Digital BYOD

8 What are Extreme Applications for Retail?

9 9 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15 th May, 2013 General product overview Real Time Sales Analysis / Extreme POS Analysis Extreme Applications for Retail Powered by SAP HANA Extreme Applications for Retail Powered by SAP HANA

10 10 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15 th May, 2013 How it all comes together: Extreme Applications module interactions Articles Margin Time POS Articles Margin Time POS Articles Prices Inventory Tim/Season POS Articles Prices Inventory Tim/Season POS Articles in current basket/ loyalty ID of customer Mr. X MARKET BASKET ANALYSIS MARKET BASKET ANALYSIS MARKDOWN MGMT MARKDOWN MGMT NEXT BEST ACTION Next best promotion for customer Mr X Next Best Article for customer Mr X EXTREME POS Buying patterns Current and past sales trends Article affinity analysis Forecasted stock end of season Promotion rules Optimize combined sales and promotions to increase profitability Improve markdown strategy to optimize stock and profitability Improve sales, profitability, and customer loyalty IN REAL TIME

11 11 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15 th May, 2013 High-level solution architecture Retail Xtreme Apps non-SAP systems Social Media Data Services Non-SAP data load Users PC, Mobile, Tablet SAP systems SLT SAP Replication HANA Database SAP BI4 BI, Reporting HTML5 Integration to websites R on HANA Statistics Sources Loading Database & Analytics BI Usage Addresses both SAP and non SAP data sources No constraints with SAP legacy systems: technical neutrality Addresses both SAP and non SAP data sources No constraints with SAP legacy systems: technical neutrality

12 12 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15 th May, 2013 Extreme Retail Applications - Examples

13 13 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15 th May, 2013 As a merchandiser, I want to gain insight into which products are often purchased together and with which combined margin to help stores with up- selling and cross- selling Cross-selling and up-selling by placing products with high affinity together Optimized promotion management Affinity analysis based on POS data provides insight in which products are often sold together Margin and sales analysis support optimized promotion planning for associated products … into actionable results How to … … turn Terabytes of POS data … Do you want to grow basket size and overall profitability by identifying products that drive drag-along sales? Market Basket Analysis

14 14 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15 th May, 2013 Example of Market Basket Analysis Belts 437 USA West

15 15 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15 th May, 2013 As a merchandiser I want to gain insight in which articles will have surplus stock at the end of the season given rates of sale at different prices Markdowns are planned more efficiently and more profitable Store inventory data and forecasting algorithms predict surplus quantities at season’s end Historical sales data provides insight into previous markdown effects Price elasticity information and margin analysis supports markdown planning … into actionable results How to … … turn Terabytes of POS data … Do you want to ensure your markdown strategies are meeting your financial goals? Markdown Management

16 16 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15 th May, 2013 Markdown Management Example USD USA West Belts SS13

17 17 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15 th May, 2013 Customer loyalty number is entered in one of the customer contact channels, e.g. smartphone app, webchannel, store clerk The customer gets a promotion that fits his or her needs Based on buying patterns promotion rules are created. Based on customer loyalty information, a buying pattern is checked against promotion rules to see if there are suitable promotions available … into actionable results How to… … turn Terabytes of POS data … How to make sure you increase your customers’ loyalty so that they continue to buy in your stores rather than at your competitors’? Next Best Action, Customer-targeted promotion

18 18 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15 th May, 2013 Make Impactful Real-Time Decisions… To Help Optimize a Shared Supply Chain - Collaborate Differently, Compete Differently To Better Engage with Technology-Enabled Consumers - The Consumer in the Driver’s Seat

19 Q&A

20 20 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved Presentation Title | Date T HANK YOU ! Mike Price Capgemini, North America Practice Leader, SAP Business Analytics and Technology e. m. +1 (770) Erik de Veer Capgemini, Global Sector Consumer Products & Retail Global Leader, SAP Retail and Fashion Solutions e. m

21 The information contained in this presentation is proprietary. © 2013 Capgemini – Internal use only. All rights reserved. Rightshore ® is a trademark belonging to Capgemini. About Capgemini With more than 125,000 people in 44 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2012 global revenues of EUR 10.3 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore ®, its worldwide delivery model. Learn more about us at


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