ibm.ppt
TRANSCRIPT
Pervasive eBusiness2
Discussion objective
Outline the importance of high value Contextual Experiences and how Wireless Technologies can enable the LAST MILE CONSUMER EXPERIENCE.
Define the Wireless technologies that are the vehicle to move from Mass Merchandising to Individual Consumer Experiences.
Pervasive eBusiness3
Agenda
Wireless Market Trends
New Market & Consumer Dynamics
Make a difference in the Store Experience
Technology the tool of Empowerment
Roadmap to Success
Pervasive eBusiness4
Wireless Market Trends
Pervasive eBusiness5
By 2004,130 million customers will be generating almost 14 billion transactions, yielding $200 billion in revenue, over 75% of which will come from Western Europe and the United States
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mill
ion
2000 2001 2002 2003 2004
Mobile Commerce Users
Rest of World
Asia Pacific
North America
W. Europe
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US
$b
illio
n
2000 2001 2002 2003 2004
Mobile Commerce Transaction Value
Rest of World
Asia Pacific
North America
W. Europe
Source: Strategy Analytics, 2000
Pervasive eBusiness6
In the U.S. the number of net-enabled phone owners will also represent about 50% of the population by 2004
Su
bsc
ribe
rs (
mill
ion
s)
0
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200520042003200220012000
Internet-enabled handsets
Mobile data users
Total mobile subscribers
176.9171.1
111.2
Source: Forrester, 2000, 1999
Pervasive eBusiness7
We are poised on the verge of a Wireless e-business explosion… every second of every day a new mobile internet user is born… mobile internet access will surpass PC internet access in 2002
1998 2000 2002 2004 2006 2008 20101
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10000
Ins
tall
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Ba
se
(M
illi
on
s)
Mobile phone totalMobile phone w/datacapability
PC installed base
Source:Research Portal.com, Reuters, EE Times, Ericsson, 2000
Pervasive eBusiness8
Agenda- continued
Wireless Market Trends
New Market & Consumer Dynamics
Make a difference in the Store Experience
Technology the tool of Empowerment
Roadmap to Success
Pervasive eBusiness9
Current Industry Dynamics
There is a tremendous growth of perimeter businesses in retailing because of changing lifestyle attitudes - quick, easy - “I am willing to pay for convenience”
Reduction in capital asset and labor resource spending is mandated by the boardroom
Point of sale has to be scan-capable and able to keep track of more complicated promotions and offers
In-store and channel transactions have to be instantaneous and responsive to the customer’s identity
Merchandising must be specific to smaller segments of the population, while being able to attract larger segments successfully
Product allocation, assortment, pricing, and promotion must be dead-on in where, when, and how it is placed in front of the customer. Every time!
Pervasive eBusiness10
Changing Market Dynamics
Growing concentration of leading brands and power retailers
Bankruptcies and liquidations closing down the non-competitive
Experimentation with complementary business partnerships
Identification of new points of access for consumers, including pervasive and mobile technologies
An increasing need to respond to consumer shifts including demographic lifestyle, and buying pattern trends
Pervasive eBusiness11
The Changing Consumer
More knowledgeable about comparable product costs and price.
More changeable in retail and brand preferences, showing little loyalty.
Self-sufficient, yet demanding more information
Hold high expectations of service
Expecting personalization
Driven by three new currencies: time, value, and information.
Pervasive eBusiness12
New Market Trends
Consolidation in the marketplace continues to change the landscape of retail/wholesale, manufacturing and service provider sectors
Industries are positioning by creating global alliances (Vertically Integrating)
It is becoming increasingly important for companies to manage their capital efficiently as well as controlling their processes
Consumer Retention is becoming more important due to increasing competition
Customized, flexible products will be the future and are expected at the Point of Sale
NEED TO MANAGE THE FIRST THOUGHT IN THE LAST MILE WITH WIRELESS TECHNOLOGY!
Pervasive eBusiness13
Retailing 2001+ is about the End CustomerThe key to multi-channel integration is the ability to utilize the
information collected from all consumer touch points and make the information actionable throughout the value chain.
New measurements need to be in place to measure performance. Multi-channel retailers must now measure the variables that affect satisfaction in a specific channel while establishing uniform standards across all channels. Regardless of the sales channel they are using, customers must feel like royalty.
Pervasive eBusiness14
Agenda- continued
Wireless Market Trends
New Market & Consumer Dynamics
Make a difference in the Store Experience
Technology the tool of Empowerment
Roadmap to Success
Pervasive eBusiness15
Contextual experiences (conditions) directly impact a customer’s perception of vendor value.
Value experiences include and transcend monetary value and product-based experiences.
Positive Contextual Experiences equal Consumer Loyalty
Laying the foundations for the store of the future is the key to enabling technologies that will support the total customer experience of feeling understood, connected,
and delighted.
Laying the foundations for the store of the future is the key to enabling technologies that will support the total customer experience of feeling understood, connected,
and delighted.
Pervasive eBusiness16
alternativePOS
cash alternatives
self-serve individualized
flow-throughmanagement
eCRM
SCMattentive environment
retailer
Making a Difference in Retailing from the Back-End Systems through to the Consumer - the Components of Experience
TACTICALthe way you sell
STRATEGICthe way
customers experience
your business
OPERATIONALthe way you manageyour store
Pervasive eBusiness17
retailer
Changing the Retailing Environment
How willsuccess bemeasured?
How will the customerexperience thebenefits of thenew vision?
How will the value ofnew technology berealized and amortizedacross a centralized business model through local channels of customer experience?
What are the core valuesto the business
driving forward?
What is the end vision
to support the
near term initiatives?
BUSINESS VISIONSUCCESS
TECHNOLOGY
18
Pervasive eBusiness19
(hidden)
Store managers can receive remote real-time product
movement updates throughout the day.
POS data can be remotely
retrieved and can be analyzed
immediately to allow for
replenishment / replacement
where appropriate in order to
immediate customer demand.
(hidden)
Store managers can receive remote real-time product
movement updates throughout the day.
POS data can be remotely
retrieved and can be analyzed
immediately to allow for
replenishment / replacement
where appropriate in order to
immediate customer demand.
Back-Office (hidden)
Lost sales can be reduced as
customers no longer face long
POS queues, minimizing
customer abandonment.
Responsive environments effect
efficient store / queue
management.
(hidden)
Lost sales can be reduced as
customers no longer face long
POS queues, minimizing
customer abandonment.
Responsive environments effect
efficient store / queue
management.
Sales Floor
Mass retailing is founded on the premises of speed, ease of use, and convenience. Managing the experience means excelling at being a convenience provider.
Mass retailing is founded on the premises of speed, ease of use, and convenience. Managing the experience means excelling at being a convenience provider.
The Way You Manage Your Store Experience-Now very important
Pervasive eBusiness20
Tickles and Whispers in Mass Retailing drives a valued experience
(hidden)
Responsive environments notify resources how best to manage them
• alert me to open up another cash register line because of long queues
• tell me to adjust the temperature
(hidden)
Responsive environments notify resources how best to manage them
• alert me to open up another cash register line because of long queues
• tell me to adjust the temperature
Tickle Technology (hidden)
A more efficient labor force is better educated, more assisted in real time, and suffers from last turnover
• remind me about cross-sells and up-sells
• remind me about this customer’s preferences
• help me to be more knowledgeable in front of my customer
• help me to be more knowledgeable in front of my employees
(hidden)
A more efficient labor force is better educated, more assisted in real time, and suffers from last turnover
• remind me about cross-sells and up-sells
• remind me about this customer’s preferences
• help me to be more knowledgeable in front of my customer
• help me to be more knowledgeable in front of my employees
Whisper Technology
Technology becomes ubiquitous as we progress from fingertip, to voice, to bio-metric, to human-centric experiences that are human aware and dialogic, natural, and easy.
Technology becomes ubiquitous as we progress from fingertip, to voice, to bio-metric, to human-centric experiences that are human aware and dialogic, natural, and easy.
Pervasive eBusiness21
Moving from Mass Service to Individualized Experiences
• (hidden)
• The responsive environment responds to such conditions as:
•who are the people in a given space?
•where are they (geographic and proximal)?
•what are they doing?
• The enabled environment delivers on the promise of mass retailing based on individuals within a space
• (hidden)
• The responsive environment responds to such conditions as:
•who are the people in a given space?
•where are they (geographic and proximal)?
•what are they doing?
• The enabled environment delivers on the promise of mass retailing based on individuals within a space
Responsive Environment (hidden)
Consumers have more choice than ever and so mass retailers need to grab and retain relationships by extending their value, presence, and opportunity.
By using aggregates of Wireless technology to create dynamic individualized experience retailers can lead the market and capture the attention of their customers. “Customer Retention”
(hidden)
Consumers have more choice than ever and so mass retailers need to grab and retain relationships by extending their value, presence, and opportunity.
By using aggregates of Wireless technology to create dynamic individualized experience retailers can lead the market and capture the attention of their customers. “Customer Retention”
Individualized Service
Mass retailers can now use wireless technologies to get beyond the “last mile” and become the “first thought”.
Mass retailers can now use wireless technologies to get beyond the “last mile” and become the “first thought”.
Pervasive eBusiness22
Metrics of Success
Metric
Operational Efficiency
• Reduce operating assets
• Reduce turnover
• Reduce working staff
• Reduce cost of quality
Improve Existing Customer Revenue
• Increase customer retention
• Improve market share
• Up-sell/cross-sell
New Revenue Streams
• New products / services in same business
• New products / services in new business
Catalyst/Result
• More skilled employees
• More efficient and contextual or “in the moment” training
• Require less resources to support the same production and client base
• Improve customer satisfaction
• Provide competitive services
• Increase brand strength
• Increase revenues from intellectual capital
• New service pricing
Example Strategy
• Remote monitoring of employee performance
• Remote store monitoring
• Dynamic environmental awareness
• Ubiquitous employee training / support systems
• Add wireless channel for ease / efficiency uses
• Integrate with online offering
• Offer unique / personalized services
• Charge for automated service
• Use connectivity of product to drive traffic to service offering “portals”
Pervasive eBusiness23
Agenda- continued
Wireless Market Trends
New Market & Consumer Dynamics
Make a Difference in the Store Experience
Technology the tool of Empowerment
Roadmap to Success
Pervasive eBusiness24
eBillBoard
The Topography of OpportunityStore-Box
Parking Lot
BackRoomFrontRoom
PO
S
Aisle
Aisle
Aisle
Aisle
Inventory Management•RFID•Mobile Field Service Agent•Mobile Sales Agent•Barcode Tracking
Unattended Sales•Remote Shopping•Replenishment List•Customer Self-Serve•eCash Payment Options•Smart Gold Crown Card
Assisted Sales•Wireless POS•Individualized Retailing•Remote Access to POS
WLAN
Aware Environment•Tickle Environment Support•Intelligent Environment•eShelf Labels•Cartless Shopping•Smart SKU’s
Self-Serve Sales•Intelligent Kiosks / Vending•Multi-Channel•New Vends•Extended Business Opportunities
Face to Face Sales•Whisper Sales Support•Mobile POS•Customer Awareness•Remote Store Management
Interactive Sales•Virtual Activity Centers•Media Download Centers
ePOS
Pervasive eBusiness25
Multi-Channel Retailing
POS
Printer(s)
Network Computers
Kiosk
ESTs PDAs
RouterRouter
Internet / IntranetInternet / Intranet
E-mail Staffing and
SchedulingInventory
Backroom
Wireless
ConsumersConsumers
Cellular
Pervasive eBusiness26
Store Management
The store will be the place where several emerging technologies will be used:
Cellular
802.11b
Bluetooth
RFID
Smart Card
Kiosk/Vending
The in-store experience will combine customer satisfiers such as line busting and location based services and enhanced shopping with cross/up sales potential.
Pervasive eBusiness27
802.11b is a high speed, reliable solution for in-store wireless solutions
Bluetooth is the 10 meter RF solution intended for device to device interaction
Cellular voice networks will incorporate data services at higher transfer rates using GPRS
Existing data services only networks will be used for devices like Palm VII and RIM
Infrastructure for Enablement - Wireless
Pervasive eBusiness28
Infrastructure for Enablement - RFID
RFID cost will drop to an acceptable price point when multiple uses are incorporated:
Distribution
Inventory management
Point of Sale
Smart Home applications
An example of cost justification is the use of RFID for baggage handling at San Francisco Airport
The ultimate goal of RFID is reliability over life of item and pervasive penetration of scanners that take advantage of ID. For example, RFID embedded in my shirt so that if I drop it into washer at home or take it to laundry, it will be handled correctly.
Pervasive eBusiness29
Reasons to use WLANs
To extend a wired LANNetwork Mobility
To network difficult-to-wire locations Network Flexibility
To extend a ready-to-use LAN across locations LAN-in-a-box
To provide LAN access to mobile users
To better understand and know your customers
To provide location based services…”Where I am” Product Location = Where do I go…
Enterprises have many different reasons for implementing Wireless LAN solutions -- but network flexibility and mobility are the most common.
Pervasive eBusiness30
McDonald’s restaurants will test FAST LANE transponder technology in the some of their restaurant drive-thrus. "Transponders will allow our customers to pay for their favorite McDonald’s food – like the Big Mac and our French fries – without leaving their car or using cash," said Lambrechts. "We expect this new technology will add to the fun and excitement of McDonald’s by improving the speed and efficiency in our drive-thru service for on-the-go New England travelers."
Redefining the Internet - Redefining Lifestyles with Cash Alternatives
Many People consider a smart card to be a PC in the pocket. A smart card is a credit card style card that has an embedded memory chip that stores data and applications relative to the user - that can be coupled with an identification feature, such as: PIN, biometrics, or other types of security checks. Smart cards are portable, secure, interoperable, and convenient.
The iButton is ideal for any application where information needs to travel with a person or object. iButton can grant access to a building, a piece of equipment, can be used to store cash for small transactions, such as transit systems, parking lots, and vending machines.
VALID FROM
VALID FROM
GOOD THRU
GOOD THRU
01/2000
01/2000
01/2003
01/2003
John J. Doe
John J. Doe
4321 076543 78999
4321 076543 78999
Pervasive eBusiness31
IBM Wireless Offerings for Retail(hidden)
Digital Display Boards
(hidden)
Digital Display Boards
Dynamic Environments
(hidden)
Intelligent Vending• ecash enabled POS
• self-serve POS
eCash Transactions• integrated POS
Customer Self-CheckOut Solutions• PSI check-out solutions
• integrated intelligent kiosk solutions
Cart-less Shopping: • consumer barcode devices,
• mobile kiosks
(hidden)
Intelligent Vending• ecash enabled POS
• self-serve POS
eCash Transactions• integrated POS
Customer Self-CheckOut Solutions• PSI check-out solutions
• integrated intelligent kiosk solutions
Cart-less Shopping: • consumer barcode devices,
• mobile kiosks
Unattended Retailing
(hidden)
Environment Tickles
Employee Whispers
(hidden)
Environment Tickles
Employee Whispers
Responsive Environments
(hidden)
Site Survey / WLAN / WWAN
Individualized Retailing• profiling database
• smart card loyalty programs
RFID Supply Management
RFID SKU Management• in supply
• on the selling floor
• in the dressing room
• at the POS
Remote Management - mobile MOD
(hidden)
Site Survey / WLAN / WWAN
Individualized Retailing• profiling database
• smart card loyalty programs
RFID Supply Management
RFID SKU Management• in supply
• on the selling floor
• in the dressing room
• at the POS
Remote Management - mobile MOD
Efficient Retailing
Pervasive eBusiness32
Agenda- continued
Wireless Market Trends
New Market & Consumer Dynamics
Make a difference in the Store Experience
Technology the tool of Empowerment
Roadmap to Success
Pervasive eBusiness33
IBM Engagement Focus
Our objective is to optimize the value of networked and responsive end-user interactivity via the value proposition of the business objective.
The strategic consulting engagement focuses on business models, initiative identification and user value proposition bound to the overall business objective.
Pervasive eBusiness34
Statement of the Methodology
Our approach is a systematic method for analyzing and delivering mBusiness strategic solutions based on core business objectives.
We are confident that our methodology, people and tools can provide the client with a value-add solution designed to meet their long-term and short-term business objectives.
Pervasive eBusiness35
Conclusion
LET’S IDENTIFY WAYS WE CAN INCREASE THE VALUE OF THE CONTEXTUAL EXPERIENCE.
DETERMINE THE WIRELESS TECHOLOGIES to SUPPORT THIS BUSINESS VISION & STRATEGY.
THEN DRIVE THE FIRST THOUGHT IN THE LAST MILE TO REAP HIGH VALUE SERVICE AND CONSUMER LOYALTY.
THANK YOU!!