© 2014 SAP AG. All rights reserved. 1Confidential

Reimagine your Retail Business with SAP

SAP Retail Strategy

© 2014 SAP AG. All rights reserved. 2Confidential

Retailers are not keeping up with customer expectationsC

usto

mer

Intim

acy

and

Enga

gem

ent

“Inform Me”

“I can find information on products via multiple

channels”

“Make Buying Easy”

“I can choose where and how I buy”

“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 ExpectationsRetail 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

© 2014 SAP AG. All rights reserved. 3Confidential

Delivering on customer expectations requires aligning organization and technology

Customer at the center of decision-making Aligned Merchandising, Marketing, Supply

Chain One view of Customer & Demand Integrated Systems Real-time Inventory Visibility & Optimization Consistent brand experience across touch

points

Product Centric Organizational Silos Scattered and Inconsistent Data Point Solutions Inventory Segregated by

Channel Siloed Channel Operations

MerchandisingMerchandising

Supply Chain Supply ChainSupply Chain

Stores

Customer Touch Points

Marketing Marketing

eCom

Mobile

© 2014 SAP AG. All rights reserved. 4Confidential

SAP Retail Strategy

Integrated Market Leading Retail Functionality on

Platform

Deliver Leading Real-time Retail

Platform

Drive Efficiencies & New Revenue Models via Business Networks

Simplify IT Landscape & Business Processes to Unlock Business Innovation

ApplicationsNetworkPlatform

Innovate new business models on common data &

forecast foundation

Redefine Customer Engagement & Commerce Contextual and personal experience across all touch-points throughout the customer journey

Reinvent commerce with business partners,

connected consumers & connected devices

Transform business processes with complete & real-time understanding of

shoppers, inventory, and sales

© 2014 SAP AG. All rights reserved. 5Confidential

Business Partner Network

Strategy Building Blocks

Real-time Data and Application Platform; Mobile Platform

Retail Merchandise Management

Procurement

Distribution & Logistics

FinanceHR

Real Estate

Manufacturing

Social Network

Network of “Things”

Employee Network

Product & Marketing Content

…

Marketing

Commerce

Service

Business & Predictive Analytics

Corporate Functions Commodity processes; very slow to

change Not visible or appreciated by the

shopper Retailer Focus: Lowest TCO

Core Retail Processes Critical to delivering retail value

proposition, but not readily visible to the shopper

Retailer Focus: Best functional fit balanced with TCO

Customer touch point, has to be differentiating

Functionality is constantly evolving, and innovation is rapid

Retailer Focus: Brand differentiation & shopper experience

Common Forecast

Customer & Commerce Platform

Supply Driven Planning

Merchandise Planning, Pricing, Promotions

On Premise

Cloudhybrid

PlatformApplications Network

© 2014 SAP AG. All rights reserved. 6Confidential

Ariba, Concur

Key SAP Solutions and Innovation Focus

HANA, HANA Enterprise Cloud, HANA Cloud Platform; SAP Mobile Platform; Fiori

SAP Merchandising for Retail

Transportation Management

Fashion Management Solution

FieldglassSuccessFactors

Extended Warehouse Management

Social Contact Intelligence

HANA Cloud Platform IoT Edition, Smart Vending Machine, Connected Logistics, Connected Car

hybris Marketing

CRM

hybris

Cloud for Customer

SAP BI Portfolio including SAP Infinite Insight (KXEN), HANA Predictive Insight, Lumira

Customer Activity Repository (CAR), yMarketing data*

Allocation Management*, Demand Planning*

Planning for Retail, Assortment Planning, Promotion mgmt

POS by GK

Mobile In-store MIM

Partner Solutions

Cloud Leadership Simplified Business Processes –

e.g. Fashion Management; s-Innovations

HANA as the great unifier and simplifier

Fiori front-end for ease of consumption

CAR & UDF as Real-time Retail Foundation

Retail applications on CAR & HANA e.g. PMR, Assortment Planning

CAR and CDM as foundation for omni-commerce interactions as well as Partner & customer co-innovation

hybris as leading omni-commerce platform

Integrations including hybris-CAR Store solutions including POS by GK

and mobile apps for in-store merchandising

Marketing intelligence and execution – Segmentation, Product Recommendation, Personalized Offers

ConcurAriba

Innovation Focus

* Roadmap Item

SAP JAM

PlatformApplications Network

…F&R

Article Data Management Omni-channel Pricing

Order Orchestration Store Management Personalization

© 2014 SAP AG. All rights reserved. 7

SAP For RETAIL

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