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1 © 2014 SAP AG or an SAP affiliate company. All rights reserved.

SAP for Retail Road Map Unlocking the Value for Your Retail Organization

Lori Mitchell-Keller SVP and Head Global Retail IBU

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 2 Confidential

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without

the permission of SAP. This presentation is not subject to your license agreement or any other service or

subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this

document or any related presentation, or to develop or release any functionality mentioned therein. This

document, or any related presentation and SAP's strategy and possible future developments, products and

or platforms directions and functionality are all subject to change and may be changed by SAP at any time

for any reason without notice. The information in this document is not a commitment, promise or legal

obligation to deliver any material, code or functionality. This document is provided without a warranty of any

kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness

for a particular purpose, or non-infringement. This document is for informational purposes and may not be

incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except

if such damages were caused by SAP´s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results

to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-

looking statements, which speak only as of their dates, and they should not be relied upon in making

purchasing decisions.

Legal disclaimer Legal disclaimer


CONNECTED CONSUMERS SHOP DIFFERENTLY


86% of customers are willing to pay more for a better

customer experience American Express

70% of buying experiences are

based on how the customer feels he

or she is being treated McKinsey

Consumers Expect a Better Experience

American Express Global Consumer

Barometer

In the past year, two in five consumers or more in most markets indicate that they have not completed a transaction or made an intended purchase because of poor customer service.

67% of US organizations say that improving customer experience is one of their top three priorities

Forrester


Most Retailers are far behind Customer

Expectations

Cu

sto

mer

Inti

macy a

nd

En

gag

em

en

t Omni-Channel

“Inform Me”

“I can find

information on

products via multiple

channels”

Omni-Commerce

“Make Buying

Easy”

“I can choose where

and how I buy”

Omni-Customer

“Know Me, Advise

Me & Let Me

Choose”

“My retailer knows my

preferences, provides

valuable advise and let’s

me tailor my entire

shopping and delivery

experience.”

Customer Expectations Retail Reality

85% Are Omni-Channel

7% Are Omni-Customer

8% Are Omni-Commerce

Source: SAP Performance Benchmarking – Outside-In Analysis of Food and Drug Retailers in 2013 NRF Top 250 Global Retailers List


The Consequences aren’t Funny


Customer Experience is Not the only Battleground

Other critical forces at work

Blurring Business Models

•The high and low

•No middle ground

•Affordable Organics

•Rise of the specialty Grocer

•Sprouts, Fresh Market

•Ethnic Marketing

Consumer Power

•Customer is KING

•Pricing Practices Exposure

•Customers DEMAND food

quality, truthful labeling, food

safety, product origin

transparency and sustainability

Online Changing the Game

•Amazon: The Fear is real! The threat has arrived

•Walmart not far behind, Google in place in California as well

•10% sales online and growing

•Click and collect top of mind

https://www.google.pt/url?q=http://nfctimes.com/news/retail-chains-plan-major-rollout-nfc-enabled-shelf-labels&sa=U&ei=w-JPU_juBqbJ0QWdpYCwDg&ved=0CC8Q9QEwAQ&usg=AFQjCNE0x-5rYdGAgKgYzt_ENGf2t8s-iw


EVERY CUSTOMER SHOPPING JOURNEY IS COMPLEX, DIFFERENT, AND CUTS ACROSS CHANNELS

IT COMPLEXITY BUILT UP OVER DECADES LIMITS THE ABILITY TO DO CUSTOMER FACING INNOVATIONS

SILOED APPLICATIONS PREVENT SINGLE CONSISTENT VIEW OF CUSTOMER AND BUSINESS

What are the Challenges in

Delivering What

Customers Want?


Redefine Customer Engagement & Commerce

Provide leading Real-time Retail Platform

Integrated Best of breed Retail Applications on CAR/HANA

Simplify IT to Unlock Business Innovation

Vibrant Ecosystem Building on Platform

SAP RETAIL STRATEGY


Strategy to Portfolio Enabling a Real-time Retail Enterprise

Decision making based on customer and

financial insight

Enables core merchandising and

fashion processes in retail

Understand customer preferences,

get real-time global inventory visibility

Customer Engagement and Commerce

Merchandise Planning Marketing Planning

Core Merchandising

Real-Time Customer Insight

Seamless customer experience across

channels

Integrated business planning and efficient

execution and fulfillment Supply Chain Planning Supply Chain

Execution

Sourcing, Buying, Private Label Increase vendor profitability and

collaborate efficiently within the business

network

Mobile First Experience

Everything Powered by SAP HANA

Eve

ryth

ing

ava

ilab

le v

ia C

lou

d I

nte

gra

ted

Re

al-

tim

e P

roc

es

ses


Merchandise Management Key Recent & Upcoming Innovations


Marketing Planning Merchandise Planning

Core Merchandising & Finance


Supply Chain Planning Supply Chain Execution

Sourcing, Buying, Private Label

Fashion Management Solution on HANA (FMS)

IS-Retail on HANA

Powered by SAP HANA

Mobile In-Store MIM

Core retail processes enhanced with speed,

operational reporting and real-time visibility - Continuous deliveries in 2015

Not just for fashion - Retail and wholesale

functionality together on one common platform - Feature Pack and FMS 2.0 in 2015

New mobile apps to manage merchandise and

inventory in stores - Recent: Look up Products; Adjust Stock & Count Ad

hoc; Store Order; Transfer Products

- Planned: Receiving, Cycle Counting, Request Label

Printing, Purchase Order, Goods Issue


Real Time Customer Insight Key Recent & Upcoming Innovations







Powered by SAP HANA

CAR enables global real-time inventory and

omnichannel sales visibility down to store/channel

and transaction level - Planned: Forecast for short lifecycle products, FMS

enablement, Cloud deployment, Support for multiple

ECC’s, Extended integration with hybris & CEI, storage

optimization, more analytics

Audience Discovery & Targeting (ADT) - Real-time

segmentation on large datasets; predictive

analytics to assess buying propensity and create

optimal target groups

Social Contact Intelligence - Consolidate and

score customer data, social interactions, and

clickstream behavior to determine high value

customers

Customer Activity Repository (CAR)

Customer Engagement Intelligence (CEI)


Innovation in Detail Customer Activity Repository

Customer Activity Repository

in-memory computing

Unified Demand

Forecast

POS Data

Transfer &

Audit

Virtual Data Model (SAP Live) - Analytics

Multichannel

Sales

Transactions

Real-Time

Inventory

Visibility

On Shelf

Availability

Algorithm

Customer

Centric

Marketing and

Merchandising

Increase revenue

and optimize

assortment,

marketing spend,

pricing, and

promotions based

on real-time

predictive customer

insight.

Sourcing, Buying, and Private

Label

Increase vendor profitability based on real-

time predictive customer insight.

Omni Commerce

Customer

Experience

Deliver

personalized

customer

experience and turn

occasional

shoppers into loyal

customers based

on real-time

predictive customer

insight.

Supply Chain

Optimize inventory based on real-time

predictive customer insight.

Price and

Offer

Repository

Price and Offer

Calculation

Competitor

Pricing

Available

Planned


Innovation Preview CAR 2.0 - Omnichannel Sales & Inventory Dashboard

Category and District Managers can analyze multiple retail KPI’s in real time by channel, location, region, category and article


Innovation Preview CAR Cloud Trial

SAP Customer Activity

Repository 1.0 is

available in the HANA

Enterprise Cloud

Based on prebuilt

‘Rapid Deployment

Solution’ (RDS) in

order to simplify

installation,

implementation,and

time-to-value

Planned: Free 3-day

trial on Hana

Marketplace

ADT customer

segmentation

scenarios &

Multichannel Sales

Analysis


Merchandise and Marketing Planning Key Recent & Upcoming Innovations







Powered by SAP HANA

Create comprehensive channel financial and

merchandise plans - Planned: P4R on SAP Customer Activity Repository

Define localized assortments based on customer

buying behavior and predictive insight; Consuming

app on CAR - Available: Oct 21

Optimized allocations to ensure that the right

amount of inventory is in the right location when

the customer is ready to purchase - Planned Customer Co-Innovation

Collaborate across departments to plan innovative

and profitable promotions based on demand

insight and financial visibility; first of many

applications leveraging CAR

Assortment Planning

Planning for Retail (P4R)

Promotion Planning (PMR)

Allocation Planning


Create Replenishment Plan

Plan Introductory

Promotion Identify Customer Segments

Merchandising &

Marketing

Team

Evaluate Category

Performance

Optimize

Assortments

Research Product Trends

1. 2.

3. 6.

5. 4.

Innovation in Action A Day in the Life of a Category Manager

Kellog’s Gluten Free General Mills Post General Mills Quaker

Kellog’s Gluten Free General Mills Post General Mills Quaker

12 K

20 K

16 K

78.2K 80.2K 5.4K

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 34 Public

Create Replenishment Plan

Plan Introductory

Promotion Identify Customer Segments

Merchandising &

Marketing

Team

Evaluate Category

Performance

SAP Customer Activity Repository

Optimize

Assortments

Research Product Trends

1. 2.

3. 6.

5. 4.


Sourcing, Buying, Private Label Key Recent & Upcoming Innovations







Powered by SAP HANA

Plan, negotiate, manage and control vendor

agreements efficiently - Planned: Supplier Margin Calculation and Demand

Optimization by gicom

Manage all kinds of commercial agreements within

a retail company towards business partners,

consumers, and employees

Connect the participants of the CP/Retail Business

Network to improve supply chain collaboration on

indirect AND direct merchandise

Incentives Administration, Paybacks and

Chargebacks by Vistex

Vendor Profitability and Agreements

Management by gicom

Business Network Collaboration (Ariba)


Innovation Preview Vendor Profitability Analysis by gicom

Supplier Margin Calculation and Demand Optimization


Supply Chain Key Recent & Upcoming Innovations







Powered by SAP HANA

Enable integrated business planning where

financial and merchandise plans align with

demand and supply plans - Roadmap: Continuous F&R Enhancements, New

demand planning solution in the cloud

Align integrated Supply Chain Execution on one

common execution platform

Track and trace your supply chain and stay

compliant with legal regulations

Supply Chain Execution Hub (EWM,TM, EM)

F&R, Demand Planning

Global Batch Traceability (GBT)


Customer Engagement & Commerce Key Recent & Upcoming Innovations







Powered by SAP HANA

Consistent shopping experience and customer

service across channels integrated with the SAP

business suite - Planned: Ongoing hybris/SAP integrations; Customer

co-innovation for Omnichannel Retail in the Cloud

POS Transaction Management, store device

control, scale management, and label poster

printing in all retail outlets

Increase customer engagement by delivering

relevant, personalized offers to the consumers

mobile device

Mobile enable store associates for assisted and

guided selling and in-store customer service; New

functionality in SAP Cloud for Customer

Personalized and relevant product

recommendations based on customer insight and

predictive analysis

POS by GK

Omni Commerce and Experience Platform

(hybris)

Product Recommendation Intelligence (PRI)

In-Store Clienteling

Consumer Mobile App / Shopper Experience


SAP Backend

SAP POS by GK

hybris Web Shop

SAP POINT OF SALE by GK

Real time Omni Channel

The only completely integrated, end-to-end solution for retailers that

• organizes thousands of stores

• manages tens of thousands of devices

• copes with hundreds of thousands of articles

• and handles millions of consumers

SAP, GK and hybris offer retailers a standard solution that helps them to

• meet the challenges of omni-channel retailing and

• give consumers a unified shopping experience


Innovation Preview SAP Cloud for Customer

New Features

Create, assign and track execution of

In-Store Activities

Calendar view of In-Store activities –

with reassignment

Flexible back-end integration into IS

Retail, or other SAP and non SAP

systems

Enables retail companies to provide a great customer experience to end-users with in-store associate solutions driving new business and increase in brand equity and customer loyalty


Retail Roadmap Shipment Overview

Q1 2014 Q2 2014 Q3 2014 Q4 2014

IS-Retail,

FMS

SoH IS-Retail

Fiori for In-Store

Merchandise and

Inventory Management

SoH IS-Retail

Fiori for In-Store

Merchandise and


Fashion Management

Solution 1.0

SoH IS-Retail

Fiori for In-Store

Merchandise and


SoH IS-Retail

Fiori for In-Store

Merchandise and


CAR and

Applications

Customer Activity

Repository (CAR)

including Unified

Forecast 1.0/FP1

Customer Activity

Repository (CAR)

including Unified

Forecast 2.0

Retail Assortment

Planning 1.0

Omni

Commerce

Hybris Integration Hybris Integration Hybris Integration


Q1 2015 Q2 2015 Q3 3015 Q4 2015

IS Retail,

FMS

SoH IS-Retail

Fiori for In-Store

Merchandise and

Inventory

Management

Fashion Management

Solution 1.0/FP1

SoH IS-Retail

Fiori for In-Store

Merchandise and

Inventory

Management

Legal Requirements

and Enhancements

SoH IS-Retail

Fiori for In-Store

Merchandise and

Inventory

Management

Fashion Management

Solution 2.0

SoH IS-Retail

Fiori for In-Store

Merchandise and


New Fiori Uis for

Merchandising

CAR and

Applications

Customer Activity

Repository (CAR)

2.0/FP1

Retail Assortment

Planning 1.0/FP1

Planning for Retail on

CAR

Customer Activity

Repository (CAR)

2.0/FP2

Retail Assortment

Planning 1.0/FP2

Retail Promotion

Planning 8.1/FP1

Retail Allocation

Planning 1.0

Omni

Commerce

Industry Cloud –

Omnicommerce

Industry Cloud –

Omnicommerce

Industry Cloud –

Omnicommerce

Industry Cloud –

Omnicommerce

Supply

Chain

Integrated Business

Planning - Demand for

Retail 1.0

Retail Roadmap Shipment Overview


• REAL-TIME CUSTOMER INSIGHT

• END-TO-END BUSINESS PROCESS EXECUTION

• HARMONIZED, DIGITAL AND PHYSICAL EXPERIENCES

Commerce Marketing Service

Customer Engagement & Commerce Foundation

Core Operations

WEB MOBILE IN STORE/ BRANCH

CONTACT CENTER

DIGITAL GOODS

MARKETPLACE INTERNET OF THINGS

SOCIAL SMS/ NOTIFICATNS

SEARCH KW/ADS

DIGITAL ADS EMAIL PRINT AGENT TOOLS

Summing it Up

Engage Customers like Never Before

Back Office & Retail Applications

• The right insight at the

right time

• Across every touch-point,

every channel

• Integrated to your

enterprise

• With an experience that

drives results


THANK YOU!

Lori Mitchell-Keller

SVP and Head

Global Retail Industry Business Unit

[email protected]

mailto:[email protected]




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