Capgemini*s Extreme Applications for Retail powered by SAP HANA

Transcript Capgemini*s Extreme Applications for Retail powered by SAP HANA

Make Impactful Real-Time Decisions with Capgemini’s Retail Apps

May 15, 2013 – Orlando, FL

NTRODUCTIONS

Mike Price Capgemini, North America Practice Leader, SAP Business Analytics and Technology e. [email protected]

+1 (770) 601 6471

Erik de Veer Capgemini, Global Sector Consumer Products & Retail Global Leader, SAP Retail and Fashion Solutions e. [email protected]

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

Retail Business Challenges

The challenge of combining customer demand, product availability, and margin…to remain competitive

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

New customer behaviors require real-time insight

Customers are ‘competitor savvy’ and other offers are just a click away Retail is always on, 24/7 Social and mobile commerce are the new norm Omni-channel requirements and capabilities (i.e. click/collect) Data growth and the combination of structured/unstructured data Marketing paves the way for IT New heartbeat in category management and merchandising Personalized offers require dynamic promotions Maintaining margin and profitability BYOD Digital

What are Extreme Applications for Retail?

General product overview

Market Basket Analysis Next Best Action Markdown Management Extreme Applications for Retail Powered by SAP HANA Real Time Sales Analysis / Extreme POS Analysis

How it all comes together: Extreme Applications module interactions

Articles in current basket/ loyalty ID of customer Mr. X Articles Margin Time POS Buying patterns MARKET BASKET ANALYSIS Article affinity analysis Next best promotion for customer Mr X Promotion rules Articles Prices Inventory Tim/Season POS Current and past sales trends MARKDOWN MGMT Forecasted stock end of season Next Best Article for customer Mr X 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

High-level solution architecture

Users

PC, Mobile, Tablet

Usage SAP BI4

BI, Reporting

HANA

Database

HTML5

Integration to websites R on HANA Statistics

BI Database & Analytics Retail Xtreme Apps SLT

SAP Replication

SAP systems Data Services

Non-SAP data load

non-SAP systems Social Media Loading Sources Addresses both SAP and non SAP data sources

No constraints with SAP legacy systems: technical neutrality Make Impactful Real-Time Decisions with Capgemini’s Retail Apps – Erik de Veer | 15 th May, 2013 Copyright © Capgemini 2013 – Internal use only. All Rights Reserved 11

Extreme Retail Applications - Examples

Market Basket Analysis

Do you want to grow basket size and overall profitability by identifying products that drive drag-along sales?

How to … … turn Terabytes of POS data … … into actionable results

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 up-selling

by placing products with high affinity together

Optimized promotion management

and 

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

Example of Market Basket Analysis

2013 01 01 05 USA West 437 Belts

Markdown Management

Do you want to ensure your markdown strategies are meeting your financial goals?

How to … … turn Terabytes of POS data … … into actionable results

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

Markdown Management Example

Belts USA West USD USD SS13 USD USD

Next Best Action, Customer-targeted promotion

How to make sure you increase your customers’ loyalty so that they continue to buy in your stores rather than at your competitors’?

How to… … turn Terabytes of POS data … … into actionable results 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

Make Impactful Real Time Decisions…

To Better Engage with Technology-Enabled Consumers

- The Consumer in the Driver’s Seat

To Help Optimize a Shared Supply Chain

- Collaborate Differently, Compete Differently

Q&A

HANK YOU

Mike Price Capgemini, North America Practice Leader, SAP Business Analytics and Technology e. [email protected]

+1 (770) 601 6471

Erik de Veer Capgemini, Global Sector Consumer Products & Retail Global Leader, SAP Retail and Fashion Solutions e. [email protected]

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 Collaborative Business its own way of working, the Experience™, and draws on Rightshore

, its worldwide delivery model.

Learn more about us at

www.capgemini.com

The information contained in this presentation is proprietary.

Rightshore ® is a trademark belonging to Capgemini.