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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
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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 SAPs 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
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3 2014 SAP AG or an SAP affiliate company. All rights reserved.
CONNECTED CONSUMERS SHOP DIFFERENTLY
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2014 SAP AG or an SAP affiliate company. All rights reserved. 4 Confidential
70% of buying experiences are
based on how the customer feels he
or she is being treated
86% of customers are willing to pay more for a better
customer experience American Express
McKinsey
American Express Global Consumer
Barometer
Consumers Expect a BETTER EXPERIENCE
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
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2014 SAP AG or an SAP affiliate company. All rights reserved. 5 Confidential
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 lets
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
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2014 SAP AG or an SAP affiliate company. All rights reserved. 6 Confidential
The Consequences arent Funny
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2014 SAP AG or an SAP affiliate company. All rights reserved. 7 Confidential
Customer Experience is Not the only Battleground
Other critical forces at work
Vertically Integrated Channels
Retailers move to Wholesale and
Manufacturing to control brand
image, quality, and margins
Rise of Private Label
Consumer Power
Price Transparency
Value conscious consumers -
frequenting discount stores
Fast changing consumer trends
requiring faster product cycles
Globalization
Open up new markets to benefit from customer growth in new/emerging markets
Sustainable operations and manufacturing
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2014 SAP AG or an SAP affiliate company. All rights reserved. 8 Confidential
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?
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2014 SAP AG or an SAP affiliate company. All rights reserved. 9 Confidential
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
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2014 SAP AG or an SAP affiliate company. All rights reserved. 10 Confidential
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
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2014 SAP AG or an SAP affiliate company. All rights reserved. 11 Confidential
Merchandise Management Key Recent & Upcoming Innovations
Customer Engagement and Commerce
Marketing Planning Merchandise Planning
Core Merchandising & Finance
Real-Time Customer Insight
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
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2014 SAP AG or an SAP affiliate company. All rights reserved. 12 Confidential
Fashion Wholesale
Master Data
Segmentation
Order 2 Cash (incl Arun, ATP)
Fiori App for Allocation Manager
Procure 2 Pay
Inventory and Segmentation
Retail Integration
Retail Harmonization 1
Business Suite Integration -1-
Ramp Up Start Date: May 16th 2014
Ramp Up End Date*: Nov. 2014
May 2014 (Ramp
up) Jan 2015 * Q3 2015**
Enhanced Wholesale
Functionality
MRP N:M, Segmentation enabled
MRP
MD04 for Fashion
Fiori Buy Planner Application
WM enablement
ATP N:M
Parallel ARUN and ARUN preview
Support for CITES
Usability improvements for master
data
Wholesale Functionality
Distribution Profile
Vendor Consignment
BW Extractors
Master Grid, Sales & Purchasing Grid
Multi Store Orders
Material Ledger
Manufacturing
Manufacturing planning
Make-to-Measure
Subcontracting
Retail Harmonization 2
Business Suite Integration -2-
SAP Fashion Management Roadmap
SAP FM 1.0 SAP FM 1.0
Feature Pack (FP) 1.5 SAP FM 2.0
* Subject to meeting Ramp Up exit criteria
** Depending on Core Business Suite Timelines
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2014 SAP AG or an SAP affiliate company. All rights reserved. 13 Confidential
Real Time Customer Insight Key Recent & Upcoming Innovations
Customer Engagement and Commerce
Marketing Planning Merchandise Planning
Core Merchandising & Finance
Real-Time Customer Insight
Supply Chain Planning Supply Chain Execution
Sourcing, Buying, Private Label
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
ECCs, 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)
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2014 SAP AG or an SAP affiliate company. All rights reserved. 14 Confidential
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
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2014 SAP AG or an SAP affiliate company. All rights reserved. 15 Confidential
Innovation Preview CAR 2.0 - Omnichannel Sales & Inventory Dashboard
Category and District Managers can analyze multiple retail KPIs in real time by channel, location, region, category and article
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2014 SAP AG or an SAP affiliate company. All rights reserved. 16 Confidential
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
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2014 SAP AG or an SAP affiliate company. All rights reserved. 17 Confidential
Merchandise and Marketing Planning Key Recent & Upcoming Innovations
Customer Engagement and Commerce
Marketing Planning Merchandise Planning
Core Merchandising & Finance
Real-Time Customer Insight
Supply Chain Planning Supply Chain Execution
Sourcing, Buying, Private Label
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
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2014 SAP AG or an SAP affiliate company. All rights reserved. 18 Confidential
Innovation in Action Retail Assortment Planning Demo
Merchandise Planning
OTB
Plan Clusters
Build Assortment
Refine Assortment
Plan Products & Size
Plan Options
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3 1 4 2
Merchandise Planning
OTB
Plan Clusters
Build Assortment
Refine Assortment
Plan Products & Size
Plan Options
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Merchandise Planning
OTB
Plan Clusters
Build Assortment
Refine Assortment
Plan Products & Size
Plan Options
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3
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Merchandise Planning
OTB
Plan Clusters
Build Assortment
Refine Assortment
Plan Products & Size
Plan Options
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2014 SAP AG or an SAP affiliate company. All rights reserved. 41 Confidential
Innovation in Action Retail Assortment Planning Demo
Merchandise Planning
OTB
Plan Clusters
Build Assortment
Refine Assortment
Plan Products & Size
Plan Options
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2014 SAP AG or an SAP affiliate company. All rights reserved. 42 Confidential
Sourcing, Buying, Private Label Key Recent & Upcoming Innovations
Customer Engagement and Commerce
Marketing Planning Merchandise Planning
Core Merchandising & Finance
Real-Time Customer Insight
Supply Chain Planning Supply Chain Execution
Sourcing, Buying, Private Label
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)
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2014 SAP AG or an SAP affiliate company. All rights reserved. 43 Confidential
Innovation Preview Vendor Profitability Analysis by gicom
Supplier Margin Calculation and Demand Optimization
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2014 SAP AG or an SAP affiliate company. All rights reserved. 44 Confidential
Supply Chain Key Recent & Upcoming Innovations
Customer Engagement and Commerce
Marketing Planning Merchandise Planning
Core Merchandising & Finance
Real-Time Customer Insight
Supply Chain Planning Supply Chain Execution
Sourcing, Buying, Private Label
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)
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2014 SAP AG or an SAP affiliate company. All rights reserved. 45 Confidential
Customer Engagement & Commerce Key Recent & Upcoming Innovations
Customer Engagement and Commerce
Marketing Planning Merchandise Planning
Core Merchandising & Finance
Real-Time Customer Insight
Supply Chain Planning Supply Chain Execution
Sourcing, Buying, Private Label
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
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46 2014 SAP AG or an SAP affiliate company. All rights reserved.
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
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2014 SAP AG or an SAP affiliate company. All rights reserved. 48 Confidential
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
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2014 SAP AG or an SAP affiliate company. All rights reserved. 49 Confidential
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
Inventory Management
Fashion Management
Solution 1.0
SoH IS-Retail
Fiori for In-Store
Merchandise and
Inventory Management
SoH IS-Retail
Fiori for In-Store
Merchandise and
Inventory Management
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
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2014 SAP AG or an SAP affiliate company. All rights reserved. 50 Confidential
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
Inventory Management
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
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2014 SAP AG or an SAP affiliate company. All rights reserved. 51 Confidential
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
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52 2014 SAP AG or an SAP affiliate company. All rights reserved.
THANK YOU!
Lori Mitchell-Keller
SVP and Head
Global Retail Industry Business Unit
mailto:[email protected]:[email protected]:[email protected]:[email protected]